more iima notes..

1. Skills of an Effective Executive
Robert L Katz

2. 3 skills to kill for an exec.. characteristics
Development
Technical
Interaction Skills
Inter groups
• Implication Understanding
Motivation
– Judge on Action not trait Communication
Attitude to self
Creativity
Whole view
experiences
Coaching
– Select on skills not traits or Recognize feelings
Multi skilling
Enlargement
Human Conceptual
Involvement in tasks
behavior
Skills Skills
• Leads to 3 roles
– Remedial Conceptual
Intensity
• Conceptual + technical
– Maintenance Human
• Human
Technical
– Innovate
• Concept + Intergroup
Low Level Hi

3. Managing ones boss
• Know the boss • Some errors
– As a person – Info at face value
– Goals & principles – Assumptions & extrapolations
– SWOT – No clarification
– Work style • To build a relationship
• Know yourself – compatible work styles
– Style • Accommodate diffs
– Dependence – Mutual expectations
• Counter dependence • Maintain realism
• Over Dependence • Subordinates problems?
– Flow of information
– Honesty / transparency
– Outcomes
• Good use of time / resources
Peter Drucker on leadership >> good readers and listeners.

4. Effects of Fear – Carl R Rogers
• Experiences are…[defense mechanisms]
– Symbolized [in relation to self]
– Ignored – no relation to self
– Denied / distorted – inconsistency
Gestalt theory >> helps in understanding oneself better ?!

5. Giving Feedback – Philip G hanson
• Builds impression of • Issues in feedback
– Trust care & acceptance – Indirect VS Direct
• Purpose of feedback – Interpretation VS description
– Individual correction • puts person on defensive
– Group goals – Evaluation VS Non Evaluation
– General VS Specific
• Feedback can be – Pressure VS Freedom to change
– Bipolar [2 directional] • Send feelings and recipient should
– Uni polar [1 directional] own resistance to change
– Delayed VS Immediate
– External VS Group Shared
• Then & there, group observes
consistency
– Imposed vs Solicited
– Unmodifiable vs modifiable
behavior
• Only on when it can change
– Motivation > Hurt VS Help

6. Creating a good relationship
1. Be what you are [congruent] 1. Let other person be what she
2. Be transparent is
3. Feeling for the other person 2. Be individual / independent
4. Do not be influenced by your 3. Do not be threatening
condition when applying to 4. Abstain from external
others evaluation
5. Don’t be bound by the past 5. Understanding / empathy
while judging

7. Transaction Analysis 1957 – Eric
Berne [1910 – 1970]
• Types of Transaction analysis
– Structural Analysis
– Game Analysis
– Script Analysis
– TA proper
Kurt Lewin Father of Organization behavior

8. Structural Analysis [TA]
3 ego states
• Parent
– Limits / discipline / traditions / advice / guidance / rules / law
– TYPES >> Nurturing Parent / Critical Parent
• Adult
– Logic / Rational / Analysis
• Child
– Creativity / adaptations / compliance / withdrawal / procrastination / rebellion
– TYPES >> natural / adapted / Little professor
• Some issues in structures
– Contamination of ego states leading to
• Prejudices [parent]
• Hallucinations Delusions [child]
– Exclusions
• Reliance only on 1 ego state

9. TA Proper
Types
• Simple
– Complementary, Crossed
• Complex
– Angular, Duplex
• Rules to communication
1. Complementary transaction leads to open communication
2. Crossed transaction leads to closure of communication
3. Transactions can only be predicted in psychological level not social
4. Value of communication depends on receiver [ summerton – 1988]
Script Analysis is about games people play

10. TA proper ..continued
• Life positions
• Strokes [ social
– I’m OK you’re OK
recognition unit]
• Only conscious position [best]
– External / Internal [self]
– I’m OK you’re not OK
– Positive / Negative
• Misplaced power / superior
– Conditional / Un conditional – I’m Not OK you’re OK
– No strokes [ worst case] • Inferiority
Summerton
– I’m Not OK you’re Not OK
UnConditional Stroke
4 stroke combo
+ve • Worst case / psycho
-ve
-ve +ve Conditional Stroke

11. Attitudes > evaluative statements or
judgments concerning people events or objects
Some principles
• 3 parts to an attitude • Consistency
– Cognitive [beliefs] – Seek bw attitude & behavior
– Affective [attitudes] • Cognitive dissonance
– Behavioral [behavior] – Inconsistency bw A & B
• Common Attitudes in – Elements of dissonance
management – Degree of influence– elements
– Job satisfaction – Reward with dissonance
– Job involvement • Self perception Theory
– Organization commitment – Attitudes can be used to make sense
• Acquiring Attitude out of action
– Modeling – B-> A is stronger than A -> B
– Reward and punishment • Attitude surveys
– Early exposure – Help understand stance of people
– Personality towards objects.
Lyndon Johnson – Vietnam War [Escalation of commitment]

12. Perception > interpretation of situations
Sub steps of perception Perceptual Organization
Stimulus
Registration Overt Behavior Figure Ground >> perceived
Leads to
Interpretation Covert Behavior objects stand out from background
Feedback
Perceptual Group
•Closure [gestalt] > perceiving as a
Perceptual Selectivity
whole
Subliminal perception – below the threshold •Continuity – things in continuum
Factors that effect selectivity are •Proximity – imparting closeness
External Size
Perceptual constancy >> stability
Internal Contrast
results from a pattern of cues
Intensity Repetition
Novelty Motion
Perceptual context >> The
Familiarity situation
Perceptual set
Motivation
Learning > expectancy to perceive
Personality > Age & time frame

13. Perception > interpretation of situations
What leads to perception
Needs Trained Incapacity Perceptual Defense
Interests Beliefs
Tendencies Mental set [expectations] Happens againt threats,
[self concepts] unacceptable explanation ,
inconsistencies
Emotionally disturbing information
>> Has high threshold of
Biases in perception
recognition
HALO >> one characteristic
Doppel Ganger >> similar characteristics Disturbing information / stimuli >>
Stereotypes > grouping substitute perception
Projections >> Ourselves onto others
Defense >> when there is Inconsistency & Emotionally arousing information
threat >> Leads to directed behavior

14. Motivational Theories
• Need >> Zimbardo 1979 • Maslows hierarchy of needs
– Biological psychological motive • Re inforcement Theory [
condition serves to direct
thorndike - How effect]
individual towards a goal
• Definition >> • Ahievement / affiliation Power
– Social or psychological condition
– Mc Lelland
that • ERG Theory
– Willingness to exert effort towards • Mc Gregors - Theory X &
some goals objectives
Theory Y
• Unsatisfied needs arte
• Victor Vrooms Theory >
motivators and vice versa
expectancy
• Increase thresholds of needs
• Adams equity theory
to retain motivation
• Goal Setting theory

15. Maslows hierarchy of needs
• Maslows hierarchy of needs Variation in
– Akin to 7 chakra model of hinduism Maslows theory
• There are 6 levels of needs Self actualization
– Physiological / safety / social / esteem / self may not arise
actualization
Higher needs
• Some rules activated without
– Lowers need satisfaction leads to higher level lower level needs
needs
– Fixity of hierarchy of needs
– Relative satisfaction
– Importance of gratification > seed need is not
a motivator

16. Achievement Power Affiliation
• Proposed by Mc Lelland
– Related to managerial effectives [n]
• Achievement [task oriented] Need for knowledge
•Search for meaning
– Excel; succeed; challenges; evaluation;
•Cognitive >> desire to
personal credit
know
• Power •Conative >> desire to
– Dominate; influence command ones way; in- understand
charge status prestige influence delegation
3 levels of learning
• Affiliation •Sharavana [effort /
– Grouping inter-relatedness cooperation memorising]
acceptance •Manana [mind /
• High N-ach reflective ]
•Dhyana [meditative /
• Set high but carefully planned goals
concepts]
• Think of alternatives
• Knowledge of Self

17. ERG Theory
• Propounded by ALDERFER
• There are levels of needs
– There is no hierarchy of needs
– More than 1 level of need at a given time
• Frustration Regression
– Unfulfilling of certain needs leads to regression into lower levels

18. Herzberg’s 2 Factor Theory
• Motivators [extrinsic] • Hygiene factors [intrinsic]
– Neutral to absence – Neutral to presence
– Positive to presence – Negative to absence
• Responsibility • Work conditions
• Achievement • Inter personal relations
• Advancement / Growth • Super vision
• Challenges • Salary
• Work • Job security
• Recognition • Admin & policies

19. McGregors – Theory X & Theory Y
• Theory X – People are • Theory Y - People are
– Intrinsically lazy – Energetic
– Dislike Work – Positive to work
– No creativity – Love doing new things
– Little Ambition – Self motivated
• Need • Need
– Coaxing – Facilitation
– Control – Accountability
– Little Authority – Delegation
– Direction – Freedom

20. JS Adams – Equity Theory
• Equity of output to input is
critical
• Inequity rises when this is
in imbalance
• Reactions Here
– Change input
– Change output There
– Change references
– Quit? Me Other

22. Wage determination Process
Wage Survey
Equivalence matrix >> Differentials in
hierarchies in companies Market
Accuracy of Data [ bias ] Conditions
Valuation of Perquisites
Local Wages
Job Analysis
Wage Survey
Job Description Job Evaluation Job Wage level
Job Specification Gradation of jobs
Performance Performance Payment to Pay
Standards Appraisal Employee System

23. Change Management
Kurt Lewin Father of
Organization behavior
• Conflict Management • Force field analysis
– Monitoring / Facilitating / – Kurt Lewin
Autonomy – Systems are in eqilibrium of
– Expert Approach opposing forces
– Facilitator Approach – Increase “FOR” forces
• GE Change acceleration – Decrease “ANTI” forces
– Unfreezing – Moving – Re- • Mutual Identification
freezing – Open Trusting Communication
Hi – Commonality of objectives
Learning
– Indifferent / Common /
Hi Oppose
Level of differences / conflict

24. Decision Making Framework
Hi
STRUCTURED
Understanding / Knowledge
UNSTRUCTURED
RATIONAL POLITICAL
Goal Consensus Hi

25. Jo Hari Window
Joseph Luft & Harry Ingham 4 zones
Others know me
Yes BLINDS PUBLIC ARENA
No UNKNOWN DARK PRIVATE FACADE
Big Façade >> Interviewer
Big Blinds >> Over confidence /
No I know Myself Yes
Un responsive
Big Public >> Open
Big Dark >> Closed

26. Feedback >> my feelings about your
behavior
Giving Feedback Receiving Feedback
• Persons behavior VS himself • Elicit and wait
– Focus on behavior
– Don’t evaluate or judge • Listen carefully
• Controllable vs uncontrollable
• Self analyze
• Specific vs general
• Based on Data vs Impressionistic – Don’t be defensive
• Timely vs Late – Don’t rationalize
– Receptiveness / respond rather than
react /
• Clarify
• Suggestive vs Prescriptive – Don’t make assumptions
• Positive Intent vs Negative Intent
– People can get defensive

27. Market Signals >> action by competition that
gives indication of intent or internal situation
• Prior Announcements • Divergence from goals
– Pre-empting | threats | • Announcing results
communication | internal support |
test competitors sentiments
• Cross Parry
– Competitor responds to firm in a
• Public discussion on industry
different area
– Make competition work on same
– Caterpillar entering farm
assumptions & prevent warfare |
equipment vs John Deere
explaining action
– Fighting Brand | Mr Pibb from
• Divergence from industry Coke for Dr peppers
precedent – Private anti trust suits

28. Mergers & Acquisitions
• Elbonian investment? [RJR Nabisco]
– The investor company becomes a fully owned subsidiary
• MBO
– Ethical issue of why management did not run the outfit as well?
– MBO opportunities arise when there is a spin off thereby leading
to chance for increased control by management
• What are the value drivers?
• Need to understand regulations

29. Mergers & Acquisitions
• Disclosure norms of SEBI
• Substantial Acquisition
• ICI demerger into ICI and Zeneca
• HCL –HP demerger
– Avoidance of capital gains
• Poison Pill
– In case of hostile take over, large amount of shares are given at low
prices to share holders
• Crown Jewels lockup
– In case of hostile bid / take over, core business are sold to a white
knight

30. M & A Definitions
• Reverse Acquisition
– Poor perform company becomes the transferee in a merger e.g. HT & BT with
CW
• Divestiture
– Selling and opting out of a business e.g. TOMCO
• De Merger Spin Off
– Recognize internal value by split & free shares for holders ICI >> ICI Zeneca ….
• Asset Swap
– Exchange of non core for core and delta is dealt in cash. E.g. HLL & Stepan
chemicals
• Joint Ventures
– Make subsidiary with another competent organization HCL – HP etc..

31. Modes of Evaluation
• Fee Cash Flows [DCF ] – Standard
– EBIT [1-T]
– WACC [ computed for each year ]
• Equity Cash Flows KeL
– ECF = EAT – Principle repayment == EBIT[1-T] – I[1-T] – Principle
payment == EBT[1-T] – principle payment
– Discounted at leveraged KeL using net CF of interest & principal
payments – from a pure equity perspective
• Capital cash flows KeU
– CCF == EBIT [1-T] – I
– FCF + IT and discounted at Ke un-levered using assets.
– Interest added back to FCF , cost of un-levered equity

32. Derivatives
Why Derivatives
Asymmetric legal conditions
Avoid transfer of value by internally
generating funds
Value of delta Debt capacity
Forward Contract
Cost of fund should equal the value of stock
So, F = S e^(rT) if dividends are there then
F = S e^(rT) –D e^r(T-t)

33. Strategic Intent
• An objective goal for the firms future strategy
formulation and implementation
• Chandler > strategy through structure
• Scott >> looked at stages [OB]
• Utter back >> Process innovations
• Hammer >> BPR
• Lawrence and lorsch >> differentiate and you
will integrate.

34. S Tilles Strategy Model
Resource
Consistency
Internal External
Goals / Means
Consistency Consistency
Risk

35. Strategy Execution
Peter Drucker H Ansoff Wait
Assumptions Forward
Integration
Expand
Trade offs
Develop Develop
Feedback Markets Business Products
Review
Backward Diversify
Integration BPR

36. Venture Capital Funds
• Ideal VC • Ideal Investee
– 2-3 rounds of funds – belief 1. Industry space and position
– Network capability 2. Management Team
– Active Board participation 1. Experience of the team
• Corporate governance 3. Family wealth of products
– Knowledge of the industry 4. Organization structure
1. Clean simple transparent
• Tag along rights
5. Valuation methods
– Founder cant exit until VC
1. Not more than 1 year
• Mexico syndrome 6. Co investees? – Angels?
– VC has rights to change 7. Exit Opportunity
management if

37. Knowledge Processing Strategy.
Hi
Organization
Dispersed - Clusters Specialist
Knowledge Level
Individual
Dispersed - Points Guided
Decentralized Centralized Hi
Implementation Responsibility

38. 7 Cs of Communication
• Completeness > 5 Ws and H
• Correctness > right languages, facts, figures
• Concise > non repetition, wordy
• Consideration >positive, pleasant, focus on U
• Concreteness > vivid, right facts
• Clarity > quirks , visual, illustration
• Courtesy > sincere, thoughtful appreciative

39. Business Communication
78% of time and 67% of effort of a manager are in communication
• SMCR Model by Berlo 1966 • Shannon Weaver Model
– Source • Elements
– Message > Content Encoding – Source
Decoding
– Transmitter
– Channel
– Signal
– Receiver
– Receiver
– Effect > in attitude knowledge
– Destination
behavior
– Feedback
• Communication
• 2 types of situations
Misconceptions
– Homophily > source and receiver
are similar – Is a fringe benefit
– Heterophily > source and receiver – Is message sending
are dissimilar – Managers control communication!

40. Human Brain
Left Side - linear Right Side - simultaneous
Speech Emotions
Logic Relations
Language

41. Communication – assessing the
receiver
• How will receiver benefit
• What is the receivers status and standing
• What is the receivers level of knowledge –
language / context / facts
• Receivers interests and concerns
• Receivers context and environment
• Secondary receivers ?

42. Communication - Perspectives
• What channel? • Oral Communication
– Write – Intra personal > Listening
• For records, user is busy, observing
facts / info, complicated info – Interpersonal > Interviewing
with details / costs
– Small group > Meeting
– Speak
– Multi group > Presentation
• Interactive, groups, personal,
relationship building, sensitive
– Public > oration
matter

43. Communication – Listening
45% Listening | 30% Speaking | 16% Reading | 9 % writing
• 5 Activities in Listening • When is listening poor?
– Sensing Interpreting Evaluating – Faking attention
Remembering Responding – Avoiding difficult situation
• Listening Key concepts – Tolerating distraction
– Hearing Perception Discrimination – Majoring in minors
Attention sound isolation language – Criticizing speaking style
Meaning Evaluation Retention – Wasting time differential
Response
• How to improve listening?
• 4 Types of listening – Having Focus
– Content | Critical | Empathetic | Active
– Digging > asking more questions
• 4 types of listeners – Tracking > following & relating
– Content | Action Oriented | People – Reflecting | Dampening
Oriented | Time oriented – Redirecting if there are distractions
– Jotting down ideas
– Not interrupting
– Summarize and evaluate

44. Non Verbal Communication
Proxemics
Types
Body movements – kinesics
Space – Proxemics
Time – Chronemics
Paralanguage < 1.5’
Touch color objects graphics intimate
<4’
Kinesics Personal
<12’
Business /
Facial Eye Contact Gestures Social <12’
Postures Public
Para Language
Expressions / Quirks like ohs ahs
Speed intensity rate pitch

45. Kinesics in detail [NVC]
• Arms Folded • Eyes
– High tight leans forward > – Straight look > interest
resentment / rejection consideration
– Loose low easy + smile ? Jovial – Shifty drops eyes > don’t rely
receptive – Looking upwards / rapid blink >
• Shoulders serious but working details
– Slouched / bent down > weak – Raising 1 eye brow > disbelief
– Raising 2 eye brow > surprise
• Hands over eyes > ashamed
– Winking one eye > flirtation
• Slapping forehead > forgotten – Winking with nod and smile >
• Fingers together in front > agreement
confidence • Drumming fingers >
• Position changes • Foot signals

46. Interview process
Guidelines
• Phases • Interviewer
– Warming | Main | Wrap up – Plan for | Put interviewee at
ease | Make purpose clear |
• Types several
Guide | Let talk | Listen |
– Exchange [info, feelings, exit ]
Record | End
– Evaluation [job, performance]
• Interviewee
– Persuasion [counsel,
persuade] – Prepare | Proper appearance |
show interest | Answer
– Control [discipline, conflict
completely correctly |
resolution]
Courtesy

47. 20 ways to interview success
1. Prepare Qs with purpose 1. Listen ad observe
2. Scout motto – prepared 2. Keep eye contact
3. Jot down main Qs 3. Don’t fear silences
4. Ensure no distraction 4. Have easy right pace
5. Ease the interviewee 5. Ask searching questions > be
6. Take control calm and fact driven
7. Give meeting plan 6. Don’t psychiatrize
8. Ask easy simple Qs 7. Avoid irrelevant references
9. Speak Clearly 8. Take notes
10. Achieve goof rapport 9. Don’t be open ended – TIME
10. End interview with esteem
and dignity intact

48. Meetings & Discussions
• 4 Phases • Management todos
– Forming – orientation info – Track purpose
– Storming – conflict argue – Time Resources
– Norming – rules emergence – Motivation cohesion participation
– Performing –decision majority • Types
• Advantages – Training > orate case simulate
– Personal Involvement Share – Panel > expertise listen
– Cohesion Coordinate – Sales > experience sharing
– Use resources experience – Committee > temp varied
– Exposure to PIE – Task > problems issues
– Command > communication up
down

49. Negotiations
• Prepare • Discussion
– Goals – priorities | Limitations – AVOID > interrupting arguing
– Gather info > Issues point scoring attacks Blames
personalities power facts being clever Talking Sarcasms
interests inhibitions threats Shouting
– Concessions list – trade offs – PRACTICE > Listen |
– Strategy > simple flexible Question | Ask justification |
Non Commital | Test
– List down tasks
commitment | Seek & give info

50. Negotiations
• Signals • Bargain
– Avoid concessions of hope | Ask to – DO’s > Firm conditional [state] | decide
elaborate | Respond positive | Test exchange and list them up front | bring
cause and evaluate stone walling back settled issues | keep unsettled
issues linked
• Propose
– DONTS > separate offer from
– Dos > Strong language like we need to
conditions | No “If I …Will u “ | separate
… | be specific | try and gain response |
issues
be firm in generals | be flexible in
specifics | Remedy | • Close and Agree
– Don’ts > grievance | inconsistence | – Formal | Write | List agreement | list
weak language | complain | interrupting explanations and interpretations
• Package – DON’T’s > not summarizing | not
recording | Giving concessions in
– List down draggers – concessions
closing moments | Not ending
inhibition objections | is there room for
negotiating concessions | list down
conditions

51. Reporting
• Preparation • Introduction [11 elements ]
– Define problem purpose – Authorization Problem Purpose
– List audience Methodology Sourecs Background
• Experience knowledge prejudice Limitation Brief Results Plan of
Responsibility Type presentation Scope Definitions
– List ideas to include • Text
• Hypothesis conditions top
– WAC
headings
– Collect material information • Terminal section
• Secondary > magazines news – Summary Conclusions
libraries government docs Recommendations
• Primary > files minutes interviews – Appendices References
surveys
– Sort Analyze interpret Results
– Organize data
– Prepare Outline

52. Research Paper
• Working plan • Documentation Types
– Outline – Source Footnotes | Cross
reference footnotes |
• Prefatory parts
Explanatory footnotes
– Title | Cover Design | Title
page | Letter of authority | • Supplements
Letter of transmittal | TOC | – Bibliographies.
Table of tables | Abstract – Appendices > support info
Synopsis Exec Summary – Glossary > list of special terms
– Index > list key words

53. Management Accounting
Purpose Cost Scraper
Decisions > Make or Buy Accept or Profit
Reject | Resource allocation |
Product Mix Other OH
Non Mfturing
Over heads
Sales OH
Planning & Control > Costs |
Budgets | Performance evaluation Admin OH
Mfting OH
Full Cost
Manufacturing
Whether Direct /Indirect >>
Over heads
InD Labour
Conversion Cost
significance | Effort of tracing |
ideally more direct costs ! Manufacturing Cost
Ind Material
D Labour
Prime
Cost
D Material

54. Manacc Thoughts
• ABC – Thorndyke > > multiple • Costing Methods
cost centers – Cost + Models
– When to aggregate costing [when • Fixed fee | Fixed + bonus | Ficed
+ incentive …..
products spend relatively same
• Job Shops | Govt Orders |
times in each center]
• Full costing > Var + Allocation of
– Cost center level determines
fixed assets
decision making model
– Market / Value Based
– Cost centers should be
• Price -
homogenous within
• Assembly –batch shops |
• Joint products & By Products Competition – Open
• Marginal Costing > Sales price |
– Even materials and labour are
Vars | Volumes [imp to cover fixed
indirect costs [do you see chicken
costs ]
in the bone?]

55. Variance Analysis
Total Variance
Output Variance Input Variance
Sales Side Budget Side
Price Volume Price Qtty
Qtty Mix
Purchase Qtty mix
Mkt Gr Mkt
Share

56. Variance Analysis .. Contd..
• Inefficiency of control should not be taken on the
department
• Earlier the variance recognition the better
• Process of control ends with remedials
• Variance bw origin and trace of variance can be
used as learnings for future