Future of Stress Management

Stress can be effectively managed in many different ways. The best stress management plans usually include a mix of stress relievers that address stress physically and psychologically and help to develop resilience and coping skills.

Use Quick Stress Relievers

Some stress relief techniques can work in just a few minutes to calm the body’s stress response. These techniques offer a “quick fix” that helps you feel calmer at the moment, and this can help in several ways.

When your stress response is not triggered, you may approach problems more thoughtfully and proactively. You may be less likely to lash out at others out of frustration, which can keep your relationships healthier. Nipping your stress response in the bud can also keep you from experiencing chronic stress.

Quick stress relievers like breathing exercises, for example, may not build your resilience to future stress or minimize the stressors that you face. But they can help calm the body’s physiology once the stress response is triggered.

Develop Stress-Relieving Habits

Some techniques are less convenient to use when you are in the middle of a stressful situation. But if you practice them regularly, they can help you manage stress in general by being less reactive to it and more able to reverse your stress response quickly and easily.

Long-term healthy habits, like exercise or regular meditation, can help to promote resilience toward stressors if you make them a regular part of your life.3 Communication skills and other lifestyle skills can be helpful in managing stressors and changing how we feel from “overwhelmed” to “challenged” or even “stimulated.”

Eliminate Stressors When You Can

You may not be able to completely eliminate stress from your life or even the biggest stressors, but there are areas where you can minimize it and get it to a manageable level.

Any stress that you can cut out can minimize your overall stress load. For example, ending even one toxic relationship can help you more effectively deal with other stress you experience because you may feel less overwhelmed.

Ten ways you can help them manage stress now and in the future:

  • Create a culture that promotes stress management.

Since we are on call 24/7 work must be more like home since home is already more like work. This could be achieved by promoting activities like napping at work, taking meditation breaks, walking during lunch, engaging in chair yoga during breaks, having more social time at work, etc.

  • Managers must lead by example.

It’s a well-known fact that when the manager of a department works late every night, works through lunch and puts his or her own needs last, everyone in that department is going to do the same. Managers need to model balanced behavior that leads to balanced workers.

  • Manage stress while it’s happening.

The two best techniques for managing your stress while it’s happening are cognitive restructuring and mindfulness. Cognitive restructuring teaches you how to recognize your irrational thinking (AKA, negative self-talk which causes you boatloads of stress) and teaches you how to change it, on the fly, so you stop stress before it starts. Mindfulness teaches you how to find refuge in the present moment and thus liberate you from lots of anxiety (future-oriented thinking) and lots of anger (holding onto events that happened in the past). This also allows you to keep a lot of stress at bay.

  • Train employees to recognize stress-related illness so they can discuss it intelligently with their doctor.

Doctors receive little or no training in medical school on how to treat stress-related illness and are quick to prescribe pharmaceutical solutions that usually involve side-effects and don’t address the source of the problem. This allows their patients to effectively ignore their stress symptoms which are now masked by their prescription.  Your employees need to know this and know what alternatives are available to them to prevent stress-related health problems in the future.

  • Make the message of stress management simpler.

What if we start with the problem and work backwards to the solution, which in this case would be various forms of stress management. So, if we start with everyday health problems like migraine headaches, insomnia, chronic pain and many gastro-intestinal issues for example, and work backwards to a stress management solution from there like biofeedback, meditation, yoga and mindfulness (match these in the same order with the health issues listed above), people would be more motivated to participate in programs that solve their specific problems that don’t involve side effects. 

  • Stress science could also include the new brain science.

Stress management has always been about maintaining an internal locus of control (AKA feeling like you are in the driver’s seat of your own life). We now know that our locus of control may actually reside in the prefrontal cortex (PFC) of the brain. Knowing how to access and nurture the PFC ultimately leads to greater control over our emotions, our fears and our stress.

  • Make stress management proactive.

We need to elevate stress management practices like exercise, yoga, and meditation to the same status as brushing your teeth or taking a shower. It doesn’t take any will power to brush your teeth or take a shower every morning, you just do it. In the future, the same will be true of stress management. When you talk to any group ask the people in your audience if they do any of the above activities on at least a 3-day a week basis. Then ask if they would ever go back to NOT doing them. The answers you get will serve as powerful testimonials to kind of results one gets by making these activities a part of one’s daily and/or weekly routine.

  • Acknowledge stress sensitivity.

Some people are wired differently. The best way to deal with a wiring problem is by rewiring. You rewire your brain through affirmations, skill-building and habit formation. In addition, meditation practice can facilitate the whole process and literally change the structure of your brain.

  • Embrace the European model.

In Europe the employer takes responsibility for the stress levels that its employees experience at work and makes an effort to both lower these levels AND teach the employee better methods for coping with the stress that can’t be lowered by changing certain aspects of the job itself.  In the UK mindfulness training at work is mandated by law.

  • Teach employees about underlying sources of stress in their life like time pressure, relationship problems, disorganization and financial stress.

In order to address time pressure, employees need to build in extra time for things to go wrong or that take longer than they think. For relationship problems they can spend time every day connecting with the most important people (friends and family members, coworkers) in their lives. In order to address disorganization, they need to be encouraged to set aside time every day for planning and getting organized. (Maybe the first 5-10 minutes after arriving at work.) In order to address financial stress, bring in financial counselors who can teach people about the importance of lowering credit card debt and saving a small amount each month. Addressing these MAJOR underlying causes of stress will bring about a growing sense of inner peace that is quite simply more valuable than gold.

Stress Management Therapy concepts and Benefits

Popular examples of stress management include meditation, yoga, and exercise. We’ll explore these in detail, with a range of different approaches to ensure that there’s something that works for everyone.

First, let’s set one thing straight: we’re not aiming towards being stress-free all of the time. That’s unrealistic. After all, it’s an unavoidable human response that we all experience from time to time and it’s not all bad either.

However, we can all benefit from identifying our stress and managing it better. Before we dive any deeper into managing stress.

The stress response pattern looks like this:

  • Life Situation: caught in traffic jam; late for work
  • Perceived as Stress: I’m incompetent; boss will be angry; lose promotion
  • Emotional Arousal: irritable, paranoid; poor concentration; overly sensitive
  • Physiological Arousal: elevated heart rate and breathing; sweating
  • Consequences: loss of tranquility, poor performance; stinky

There are many healthy ways to relieve stress. Multiple methods can also be used together! This can help people relieve stress that affects them at different levels, like physically and emotionally. 

When deciding how to manage stress, it is important to make sure your method is healthy and will work long-term. For example, eating comfort food may help someone feel better in the short term. But if eating comfort food becomes a primary method for dealing with stress, their health can be affected. This may result in another potential stressor, poor physical health. 

Talking to a therapist about stress can also be a key part of addressing and reducing it in the long-term. After getting to know you, a therapist may recommend healthy strategies for dealing with stress. They might personalize these to best suit your needs.

Over 75% of people in the United States report having physical symptoms of stress, according to a 2014 study. These symptoms included tiredness, tension, headaches, and upset stomach. On top of this, 43% said they eat unhealthy food or eat too much when stressed. Both of these habits can lead to serious health problems. A therapist or counselor can help you learn to manage stress in ways that improve, not reduce, your health and longevity. 

Counseling for Stress Management

When stress leads to drug abuse, chronic illness or pain, lack of pleasure or relaxation, or otherwise negatively affects well-being, meeting with a mental health professional or medical doctor can help. Health care professionals can work with you to treat your stress symptoms and work through the issues causing it.

Therapy can help address stress that occurs as a result of life events. When a person is stressed due to loss, divorce, or a life-altering medical diagnosis, therapy can help address these concerns and other effects they can have on a person’s life. When workplace issues lead to stress, for example, a therapist may help a person explore ways to deal with those issues. If an individual is stressed because of a family or relationship issue, couples or family therapy may help them resolve the issue. This can reduce stress for everyone involved.

Types of Therapy to Relieve Stress

Therapists and counselors use many types of treatment to help people cope with stress in healthy ways. For example, cognitive behavioral therapy (CBT) is often an effective form of therapy for stress. CBT can help change negative thought patterns that develop because of stress. It is often used to help people find new ways of thinking about events that cause stress. These new ways of thinking can help reduce the impact of the stressor.

Other types of therapy that can help with stress are often mindfulness-based. This means they promote mindfulness as a method for reducing stress. Many types of therapy incorporate mindfulness. A few of these include mindfulness-based cognitive therapy (MBCT), dialectical behavior therapy (DBT), and acceptance and commitment therapy (ACT). 

Stress can also come from other mental health conditions like anxiety, PTSD, or addictions. These conditions are also treatable with therapy. A therapist can help you understand your overall mental health. Based on what they find, they can recommend the best treatment plan for your situation. 

Treatment Options for Stress Therapy

Psychotherapy: This type of therapy takes place with a psychologist, psychiatrist, or another type of mental health professional. In psychotherapy, people are encouraged to discover the underlying causes of their stress so that they can learn strategies for improving their quality of life.

Behavior Therapy: There are several types of behavioral therapy. Cognitive-behavioral therapy (CBT) is one of the most beneficial ways to deal with stress. In CBT, people are taught to recognize and change negative thought patterns and apply different tools to help them improve their negative-self talk to be more positive. For relieving stress, this means people can learn to be less hard on themselves and to recognize that it’s ok to reduce some of their burdens without seeing themselves as a failure.

Alternative Therapies: In addition to traditional methods of stress therapy, there are many activities that an individual can do to alleviate their stress. Activities like exercise, yoga, acupuncture, massage, meditation, and social support are all useful tools to try if a person is faced with intense feelings of stress or pressure.

Common and Popular Stress Management Tools

Meditation

Meditation consists of attempting to focus attention on one thing a word, an image, simply counting slowly, or focusing solely on the flow of breath in and out of the body to the exclusion of all other thoughts. By focusing on only one thing, it’s much more difficult to worry, be afraid, hateful, or angry. This type of focus is also helpful in choosing what thoughts to focus on, as well as insight into persistent patterns of thinking.

Yoga

Yoga can be done from a chair and not only involves the same level of concentration and focus as meditation, but also improves flexibility a plus for people with SCI.

Visualization and guided imagery

This uses the power of the mind to achieve overall physical relaxation, often by visualizing very detailed peaceful and relaxing scenes. Several studies have documented increased athletic performance with the regular use of visualization. Actors regularly visualize themselves performing before they ever take the stage. More importantly, visualization has been practiced, studied and used with success in people with cancer, chronic pain, and those with headaches, muscle spasms and general or specific anxieties.

Progressive relaxation

This is the process of methodically tensing and relaxing specific muscle groups throughout the body, beginning with the head and working down, or with the feet and working up. The tensing phase normally lasts five to ten seconds, followed by 20 to 30 seconds of conscious and focused relaxation of the same muscle group.

Controlled breathing

Controlled breathing focuses on the process of breathing the full inhalation, the expansion of the belly and the lungs, exhalation, the contraction of the midsection, and all the various physical sensations and sounds that accompany breathing that we normally ignore. Improper or shallow breathing can lead to higher levels of anxiety, depression, muscle tension, fatigue, and headaches. Deep, controlled breathing increases the amount of oxygen taken into the lungs, as well as the amount of carbon dioxide expelled from them, helping the body and mind to work more efficiently and effectively.

Various controlled breathing methods are often used for one to five minutes, three to five times a day, or as needed to relieve symptoms or stress. Spinal cord injury may affect full and complete breathing capacity, either directly or as a result of poor posture. Practicing deep, controlled breathing may require reclining or lying down for some, but the benefits of managing stress, calming the body and the mind, and increasing oxygen flow are well worth the effort.

Benefits

There are numerous benefits to be had from reducing and managing stress, beginning with an increase in concentration, a decrease in anxiety, and a reduction in pain. Effectively managing stress often leads to improved health. Stress management programs are drug-free. Most importantly, stress management programs put you in charge and give you a sense of control, which leads to enhanced self-esteem, less likelihood of depression, and an overall improvement in quality of life. The primary cost consideration is an investment of your time.

Stress Management Techniques

5 Stress management techniques:

  1. Get Rid of Unnecessary Stress

Stress is something that is going to come for each of us at different times and in different forms. While it is impossible to completely avoid it, there are a few things you can do to eliminate the amount of stress you are dealing with.

Don’t be afraid to say no: Often times we feel like we have to always be available to help other people out. While it is important to be available for our loved ones, we have to remember to take care of ourselves, too. Saying no doesn’t mean you are a bad person; you just have to keep yourself from having too much on your plate at one time.

Surround yourself with positive people: Negativity is contagious and if you are around people who are bringing you down, then it is time to find some new friends to spend your time with.

Be in control: Remembering that you are the one in control of your life and your decisions will help your whole perspective on the situation.

Don’t overbook your life: Keep your schedule open for downtime. When children are small, they need naps to recharge during the day. Adults also need designated time during the day to relax and do what they want to do. Keep your schedule open for this to be a possibility for you.

Change the Situation

Sometimes we are faced with situations where we cannot control the amount of stress that is being thrown at us. There are, however, ways for us to alter the situation to make it easier for us to bear.

Don’t bottle it up: Bottling up your emotions only leads to an explosion later on that could have been avoided if you had just spoken your mind and let your feelings be known. Voicing your opinion and emotions will allow other people to help you conquer the stress you are dealing with.

Manage your time better: If you are running late on deadlines, you are going to be stressed out. Keep a planner and stay on top of your obligations and life will be much easier.

Be strong: If something is being done that you do not agree with or feel to be wrong, be assertive and strong and stand up for yourself.

Change Yourself

If you cannot change the situation, consider trying to change your mindset and position on the matter at hand. Once you change your mindset, you will be better able to navigate through the stressful situations you find yourself in.

Stay positive: When you are feeling stressed out, think about all of the positive things happening in your life. This will make the stress seem small and your blessings seem much bigger.

Consider the bigger picture: Having a better perspective on the whole situation is important as you are dealing with various things. If you won’t remember this current situation a week or a year from now, then it is not worth your time to be overly stressed out.

Lower your expectations: We often have very high expectations for people in our lives, and when they can’t live up to them, we get disappointed and down. Don’t lower them too much, but also try not to hold people to expectations you can’t live up to yourself. Remember everyone is human and we all make mistakes from time to time.

Accept Your Life

When dealing with situations such as the loss of a loved one or an unforeseen illness that strikes your household, there is no way to avoid the stress that comes along with it. Instead, the best way to move past it is to just accept the situation.

You can’t control the uncontrollable Knowing there are things in life that we cannot avoid is imperative to living a stress-free life.

Have Fun and Love Your Life

A great way to handle stress is to increase your resistance to it. Making your life as happy and healthy as possible will leave little to no room for stress to creep in.

  • Sleep, sleep, sleep: When you are losing sleep, your whole life can be thrown out of its normal routine. Maintain a good sleep schedule so you can keep anxiety, stress, and sadness to a minimum.
  • Exercise daily: Getting your endorphins running and your body healthy will help you to feel more confident and more in control of your life.
  • Be with others: Surround yourself with those whom you love and can be yourself around. These people are your rock and will help you when life gets hard.

Stress Management: Stress is obvious and employees have to adapt to stress in such a way that they are no longer aware of it. Companies can effectively manage stresses by removing the stressors that cause needless tension and job burnout. Other stress management strategies may keep employees “stress-fit,” but they don’t solve the fundamental causes of stress. Organizations manage stress by investigating the main causes of stress in their workplace. Another suggestion is to change the corporate culture and reward systems so they support a work-life balance and no longer reinforce dysfunctional workaholism. More generally, the most effective ways to remove workplace stressors is to empower employees so that they have more control over their work and work environment. Role-related stressors can be lessened by selecting and assigning employees to positions that match their capabilities. Noise and safety risks are stressful, so improving these conditions would minimize stress in the workplace. Workplace bullying can be minimized through clear guidelines of behaviour and feedback for those who infringe those standards.

Figure: Stress management strategies:

Mangers have important contribution in the identification and intervention of constant workplace stress. Lazarus (1991) has recognized three main strategies for reducing work-related stress. In the first strategy, managers can help their employees to cope up with workplace stress is changing the working conditions so that they are more favourable to effective coping. When barriers are removed such as work overload, environmental annoyances, isolation, and lack of autonomy, an environment is created in which an employee can perform better. The second strategy to reduce work-related stress is to facilitate the employee to improve his or her transaction with the environment. Managers should provide the worker with services such as an employee assistance program or links to stress management resources to help them work through the issues that hamper adequate appraisal of the situation. Moreover, such programs will teach the employee how to utilize behavioural skills such as implementing a new diet, meditation techniques, and relaxation techniques in order to relieve the physical and psychological effects of stress. Usually, these programs will involve cognitive behavioural interventions (Long, 1988). The third strategy is to assist the employee recognizes the stressful relationship between the individual or group and the work setting (Lazarus, 1991) and developing a strategy to help reduce the tension in that affiliation.

To summarize, Stress is an adaptive reaction to a threatening situation that is perceived by person in work setting or in his life. Stressors are the causes of stress and include any environmental conditions that place a physical or emotional demand on the person. Stressors are found in the physical work environment, the employee’s various life roles, interpersonal relations, and organizational activities and conditions. Conflicts between work and non-work obligations are a common source of worker stress. Workplace stress has dangerous consequences on the health of employees such as it can cause significant psychological and physiological problems. Workplace stress has been associated with the aetiology of physical disorders such as heart disease, hypoadrenia, immunosuppression, and chronic pain. Additionally, the psychological impact of workplace stress includes depression, persistent anxiety, pessimism, and resentment.

The impact of these symptoms on organizations is significant as these symptoms lead to antagonism in the workplace, low morale, interpersonal conflict, increased benefit expenses, decreased productivity, and increased absenteeism. To cope up with stressful situation, experts provide various stress management strategies. By providing the foundation for employees to prosper while also allowing employees to take responsibility for their stress related symptoms, organizations will find considerable improvement in productivity and an improved workplace dynamism. Some tactics directly remove superfluous stressors or remove employees from the stressful environment. Other strategies facilitate employees to modify their interpretation of the environment so that it is not viewed as a severe stressor. Wellness programs promote employees to develop better physical defences against stress experiences. Social support provides emotional, informational, and material resource support to safeguard the stress experience.

Detach Involvement Detachment is distancing oneself in order to gain perspective and to expand the context.

The degree of detachment or involvement which is most appropriate will vary during the coaching relationship. It will be for the coach to choose what is most appropriate.

Involvement is the ability to be both mentally and emotionally involved.

Mentally, to ascertain and clarify the facts presented by the client.

Emotionally, being aware of the client’s feelings, which enables empathy, but also to be in touch with his or her own feelings.

Together, they give the coach a fuller grasp of the client’s and their own reality.

A) The inter-personal relationship:

Detached involvement is an indispensable skill of in-depth coaching. It is a skill which can be learned and developed, both by the coach and the client.

Detached involvement ensures that the coach will be present to the client in the most effective way.

It facilitates non-attachment to outcome, which can be a challenging goal for many coaches.

When detached involvement is lacking, the coach’s tendency will be to become over-involved with the client’s story, perhaps lapse into mentoring, offering advice and strategies, and taking too much responsibility for the outcome.

B) The intra-personal relationship:

Who will be making this choice when you are the coach in question?

Where in your personality is your locus of decision-making, of making choices when you are coaching? Which part of you decides?

It is most likely to be the part or parts of you that normally run your life, known as your Primary Selves. Hal and Sidra Stone identified some of the selves in their book, “Embracing your Selves” (1988): the Pleaser, the Perfectionist, the Inner Critic and the Controller. We might add the Hard Worker and the Helper and the Victim to this list.

These sub-selves or sub-personalities sometimes act like the dominant members of a board of directors, who come to meetings with their own agenda and set of priorities based on their point of view. In such cases, the authority of the CEO may be absent or just ignored.

Another analogy would be a kingdom in which the rightful ruler is absent, and the kingdom is actually ruled by the barons. I call this situation the Empty Throne.

C) The inter-functional relationship:

To what extent is detached involvement applicable in the external coach’s relationship with the organisation which has engaged him?

Over-involvement might lead the coach to major on pleasing the coachee’s employer at the coachee’s expense and at the expense of the coach’s integrity.

Over-detachment might lead to the coach following their own agenda at the expense of their relationship with the corporate client.

 So, which part of you will be making these choices?

Our sub-personalities come with their own perspectives, their own priorities and make their choices accordingly.

In order to practice detached involvement successfully, you will need to consciously rise above the level of your sub-personalities and attain your centre, your Conscious Self. If your sub-personalities are the musicians in the orchestra, your Conscious Self is the conductor of the orchestra.

In the previous three scenarios, the coach will need to discern from a clear and stable place.

So, what can we do to arrive at our centre, our Conscious Self?

The applied psychology of Psychosynthesis offers us a technique called the Dis-identifying and Identifying Exercise which helps us to disidentify from the contents of our personality and connect with our deeper centre of identity, our Conscious Self, also known as our “I”.

How do we know when we have attained our “I”?

We typically experience a greater calm, a degree of serenity and balance beyond the daily norm.

A place where clarity and sureness of choice is more available to us.

It is from this place that we can discern most clearly and choose the appropriate levels of detachment and involvement in all the interventions in our coaching practice.

When you practice detached involvement, you’re both a participant and an observer of your life at the same time. You see all experiences as part of life’s journey without judging them as being good or bad. You simply experience them and are in control of your responses to them. You’re fully involved, but detached from the allure of outcomes.

So, how do you learn to practice detached involvement?

  • Take nothing personally
  • Make no assumptions
  • Make as few judgments as possible
  • Let go of the need to be right
  • Let go of the need to control
  • Be passionate about all of life’s experiences, even the painful ones
  • Give all you have, your true gifts, to whatever you’re doing
  • Detach from future potential results

Methods of Supervision and Control of Sales Force

Control

The last but not the least significant phase is control of sales force operations. In any sphere of activity, supervision and control of salesmen is essential with a view to achieve the maximum success. The sales operations are to be materialized as per plans laid down, followed by scientific control of efforts and resources. A plan is necessary when you construct a building. In the same way, in business also a chalked out plan is a sine-qua-non and the plan to be under a successful control is essential.

What is control? It simply means a check, a means of controlling or testing. Control involves such functions as checking, verifying, standard selling, and directing or guiding. One may say, “Control means watching results and translating them into positive action.” Control is a process to establish the standard of performance measuring the work done. Through control salesman’s performance can be appraised.

All the organisations must have the operation of control, as a tool, for their progress and successful working. It is an act of checking or verifying the performance as per the plans. “Control consists in verifying whether everything occurs in conformity with the plans adopted, the instructions issued and the principles established. Its objective is to point out weaknesses and errors in order to rectify them and prevent their recurrence. It operates on every thing-things, people and actions.”

Is Control Necessary?

The manager exercises the control over the activities of salesmen through supervision. The planned sales operations are to be carried out systematically in order to get success over the aimed result.

Salesmen are human beings; the need for supervision arises because of:

  • Salesmen may be working independently and may be at a longer distance from the sales manager. There may arise a problem of co-ordination, of salesmen’s effort with the other sales efforts i.e., publicity, sales promotions etc. To ensure co-ordination, control is a must.
  • The sales effected by each salesman should be known to the sales manager, who compares the actuals with the targets, to find negative variation, which should be rectified by corrective actions. There may be mistakes in the approach of a salesman, laziness in activities etc.,. These must be traced out and the salesman guided in order to channelize his efforts into desired path.
  • Efforts of the salesman have to be directed to maximize profits to firm in the light of progressive ideas and techniques to ensure the proper utilization of men and materials.
  • “Of all the assets customers are the most valuable.” To build a sound public relation, complaints of different types of customers are to be redressed. Thereby, it is possible to build a good image in the minds of the public. The salesman is guided by the sales manager, who tries to satisfy the customers through salesmen.

Prerequisites of Control

  • The sales manager should know what exactly he expects a salesman to do. (through fixing the sales quota).
  • Salesman should be given an idea of what he is expected to do. (through training).
  • Sales manager should know that the salesman is doing exactly what he is expected to do. (through reports).
  • Salesman should be made to know that the sales manager knows what he does, (through personal talk and reports).
  • Salesman should know that the sales manager appreciates what he does, (through reports).

Elements Involved in Control

The following steps are involved in the process of control:

  1. Analysis of Performance

All controls involve the setting of a standard and the measurement of performance against their standard. The performances are analysed and compared with reference to the objectives, budgets and standards. This will reveal the variances between the performance and the standard.

  1. Analysis of Variance

After finding out the variance, the first question is whether this variance is significant. If the variance is significant, the next question is usually, “What went wrong with the performance?” and possibly a better question will be “What is wrong with the standard?” Effective sales control should reveal poor execution of sales policies or indicate when sales policies need changing.

Sales Control may not, however, disclose the reasons for poor execution. For instance, poor execution may be due to ignorance of sales policies, inability to perform the tasks, resentment, discontent etc. The significant variances are considered carefully to enable the authority to take corrective steps.

  1. Measures to Deal with Unfavorable Variance

The function of control is to identify the weakness and errors in the sales efforts. Reasons and causes are found out and their remedial measures are formulated in order to correct the weakness and errors in a speedy manner. These enable the sales manager to guide the individual salesman when necessary. All these are done in order to improve the sales programme performance.

Methods of Control

Control is essential in order to secure optimum performance from salesmen. Sales managers effect controls, by common methods, through personal contacts, correspondence and report.

  1. Personal Contact

Personal contacts are more effective than other methods. Sales manager himself or through branch managers or field supervisors, exercises controls over the salesmen. Salesmen can be assisted and inspired, and corrective steps can be taken.

  1. Correspondence

This method is commonly accepted and is economical. Through correspondence, instructions are passed on to the salesmen and replies received from the salesmen. The salesmen are supervised or controlled through letters.

  1. Report

They are not in the form of letters. Printed report forms are used by the salesmen to make reports to the sales manager. In certain cases, the report may be oral.

Bases of Control

The control of salesman is based on:

  • Reports and Records
  • Sales Territories and Sales Quotas
  • Determination of salesman’s authority
  • Field Supervision and
  • Remuneration Plans.

Importance of Supervision and Control in a Sales Organization

In an organization, the success of planning largely depends on the efficient supervision and control of the sales force. It is an important aspect of the management of the sales force.

In fact, the activities of the salesmen have to be supervised and controlled to ensure that the job is done properly and efforts are being made towards the achievement of the sales objectives. Supervision and control of salesmen is essential for the sales organization to achieve maximum success.

An organization may have a talented and efficient sales force with adequate training and the compensation plan may be attractive, but unless the activities of the sales force are properly supervised and controlled, it is hardly possible for the organization to achieve the sales targets.

Therefore, an effective method of supervision, direction and control of the sales force is extremely important in order to secure the most productive and economical performance from them. The establishment of sales territories and sales quotas are the specific control devices by which the sales manager exercises control on the salesmen.

Control is the process of trying to achieve conformity between goals and actions. Controlling is an act of checking and verifying an act to know whether everything is taking place in accordance with the predetermined plan. In other words, control covers the direction and guidance towards securing desired objectives.

To M.C. Niles, ‘controlling is maintaining of a balance in activities directed towards a goal or a set of goals.’ Therefore, control consists of the steps taken to ensure that the performance of the organisation conforms to the plans. The process of control consists of a few steps, namely

  • Establishing standards or measures for performance,
  • Measuring and recording of actual performance
  • Comparing actual with the planned measures to find out the deviations
  • Taking corrective measures, if needed. Thus, control is one of the important ingredients for the success of the sales department.

Reports and Records

Report

Every sales manager needs accurate and up-to-date information, on the basis of which he formulates policies for future business. Formulation of policies may not be practical in the absence of information. For the growing needs of the organization, expanding the professions, widening activities of the business etc., it has become essential to look for the information.

A report is a presentation of facts on the basis of activities. Salesmen’s reports-daily, weekly, monthly, provide valuable information relating to the salesmen’s activities for a sales organization. Salesmen, who are the primary source of information, being the eyes and ears of the selling firms, are asked to send reports periodically.

Advantages of Reports

  • Salesman’s report is a good guide and indicator for building future plan-a barometer.
  • Competitors’ attitude can be known.
  • Sales manager does not waste time in formulating the policies for future, because of the brevity in reports.
  • Salesmen takes little time in writing the reports.
  • The report is a good form of control as it reveals the weakness and strong points of the salesmen.
  • The changes in demand and attitude of the consumers can be known.
  • It is a tool by which the activities of the salesmen can be sharpened.
  • Sales manager is able to divert his attention to the situation warranted on the basis of importance.
  • Salesman himself develops the habit of self-activity analysis.
  • The two-way communication assures employee morale.

Sales Territories and Sales Quotas

Sales manager must try to know the sales field well in advance, before the production starts. He must know the area of demand for the products and for this he should know the habits and economic position of the customers; and the type of demand and quality of products usually in demand. In short, a detailed study of consumers is important. The sources of information are year books, census reports, publications, professional organisations etc.

Sales Territory

Almost all the firms divide their markets, after the sales field is located into different territories. Sales territory is a particular grouping of customers and prospects assigned to a salesman. A sales territory is a geographical area which contains present and potential customers, who can be served effectively and economically by a single salesman.

Its aim is to facilitate management’s task in matching sales efforts with the sales opportunities. An efficient salesman can successfully discharge his duties and responsibilities if the territory allotted to him is of workable and suitable size. A good sales planning is based on sales territory, rather than taking the whole market area.

That is, the market of a firm’s product is divided into small segments or territories or areas, so that each territory can be allotted to each salesman.

When allotting perfect sales territories, which have been planned carefully, the following objectives are aimed for the reasons thereof:

  • Sales effort can be fruited more effectively in the assigned territory.
  • It is possible to have increased market coverage, not losing the orders to competitors. He meets the competition wisely as it is pre-planned, because he knows the local condition.
  • It prevents the duplication or overlapping sales efforts.
  • Headquarters of each sales territory can be located in a place, where greater number of customers are located.
  • Work load for each salesman can equitably be distributed, in terms of sales volume.

Sales Quota

Apart from the allocation of sales territories, salesmen are further controlled by fixing sales quota. Almost all the companies use quota system of defining and evaluating the task expected of the salesmen. Sales quota may be defined as the estimated volume of sales that a company expects to secure within a definite period of time.

Quota is the amount of business, in terms of value or in terms of units of sales, which is fixed for every salesman. It may be fixed for a geographical area to be achieved within a definite period of time, a month or a year. Shorter the period, the better it is. It is a target or a standard of performance that the salesman has to attain. The quota is fixed on the basis of sales forecast. For an effective control, smaller area and shorter period are preferred.

A sales quota, to be effective, practical and successful, should satisfy the following:

  • Sales quota must be attainable and fair.
  • It must be scientifically calculated. It should not be too small or too big.
  • It must provide definite incentive to salesman.
  • It must be flexible.
  • It must be simple and must be fixed in consultation with the salesman.

Sales quota brings the following benefits

  • The sales quota can be used as yardstick to assess the performance of the salesmen.
  • It is a measuring rod with which the sales operations are directed and controlled to more profitable channels.
  • It is possible and easier to locate strong markets and weak markets.
  • It is a device to adopt more effective compensation plans.
  • It fixes the responsibility on each salesman and so they work hard to attain the goal. The salesmen never allow the sales to fall below the quota.
  • It facilitates sales contests and is a base.

Weaknesses

  • In many cases the sales quota is fixed arbitrarily.
  • If situations are changed, the quota fixed may become ineffective.
  • If the quota is too small, the salesman will relax and if the quota fixed is too large or unattainable, the salesman loses initiative.
  • It is difficult to set an accurate quota.

Bases Necessary for Fixing Quota:

  • Purchasing power of the prospects.
  • Past sales figures compared by analysis.
  • Demand trend for the products.
  • Position and degree of competition prevailing.

At the end of the quota period, it is a must to measure the effectiveness of quota by comparing the performance of salesman, in relation to the quota. To keep salesmen’s effort on the right path, quotas can be used as a control mechanism. Departure of sales activities from the projected quota is a main problem to the sales management. If sales volume is not satisfactory, the fault may lie with quota plans. Quota, as a diagnostic aid, cautions the authority to take corrective steps and especially, when the sales volume takes a negative departure from the past sales.

In all fairness, quota should be aimed at equitable distribution. It should be equal for all salesmen. Should all the salesmen have the same quotas? The answer depends upon the territories, which are not the same in respect of competition, extent, customers etc. the ability of the salesman is also different. The ‘better’ salesman with ‘better’ territory exceeds the quota and ‘poor’ salesman with ‘poor’ territory fails to achieve even the quota. By considering all these, fairness of the quote decision takes place.

Types of Quotas

  • Sales volume, in value or units by product line, consumer type etc.
  • Salesmen activity, such as calls, new accounts, demonstrations, display arranged etc.
  • Expenses quota, either in value or percentage of sales obtained.
  • Gross Margin from sales obtained etc.

Quota can be used as a management tool, if it is set scientifically.

Salesmen’s Authority

If the sales manager goes for doing all the works of a firm, it is very difficult to conduct the business Moreover, he lacks time. Therefore, the job is divided and entrusted to the salesmen. When the authority is passed on to the salesmen, there is transfer of power to the salesmen i.e., delegation of power. Delegation is the required authority to the salesmen to discharge their assigned job.

When one is delegated the authority, it means permission is given to do the duties. When authority is conferred on salesmen, they know their responsibilities. Customers may not be willing to deal with a salesman having no authority.

There are no hard and fast rules as to how much authority be given to a salesman. In modern time, the degree of authority is reduced. The authority and freedom of salesmen varies from firm to firm. To what extent the authority is given to a salesman depends upon the size and nature of the firm.

Since the salesmen are representing the firm and deal with customers, who have no direct contact with the firm, the salesmen’s authority be well-defined. Generally, catalogue, price lists advertisements etc., reveal the prices, guarantees, quality and other details of the products. And the salesmen are being relieved of these botherations.

However, salesmen may be conferred with certain measure of authority in dealing with the matters, such as special concessions, discount rates, granting credit, settlement of claims, settlement of damages, defective, unsalable items etc. But it is important that salesmen are watched in their acts which must be in accordance with the instructions by the sales manager and their activities are subject to the approval of the sales manager.

Field Supervision

Performance of a function or service by an individual is called duty; activities that an individual is required to perform are a duty on him. Authority is a right or power required to perform a job on the basis of duty assigned to one. An authorized person is empowered to do the assigned job Responsibility must always be followed by corresponding authority or power. Authority and responsibility move in opposite directions.

Authority always moves from the top downward, whereas responsibility moves upwards. Authority is derived from sales manager to whom the salesmen are responsible for proper performance of their activities. The individual responsibility and freedom of the sales personnel vary from firm to firm. A good degree of control is essential over the activities of the salesmen.

Generally the sales manager or any senior sales personnel or field supervisor; are appointed to check the activities of the salesmen so as to:

  • Know whether the salesman is doing his job in best way
  • Find out deficiencies if any
  • Make suggestions for further improvement
  • Check the procedure of orders taking
  • Evaluate the performance of salesman
  • Provide spot motivation to salesman
  • Secure maximum coverage of the market

Control aims at appraisal of salesman’s performance. It must be done periodically and on continuing basis as to determine the compliance of policies and attainment of targeted quota in respect of job. Supervision and control are different. Supervision aims at direction for working and control includes supervision and evaluation of past performance.

Routing and Scheduling

Time must be used wisely while a salesman travels in his respective territorial area. Salesman will be encouraged to get maximum sales by reducing the wastage of time. Routing and scheduling is one of the techniques of controlling a salesman’s day to day activities. A planned routing of the salesman will facilitate easy communication, maximum territorial coverage and thereby reduce the waste time.

Management has a closer control. A clear tour plan is there and reveals route, location of customers, transport facilities, maps etc. The planned routes and schedules are to be followed by the salesman. The reports sent by the salesman can be compared with the planned routes and schedules and this reveals the deviations.

Conflict Management Skill

Conflict management plays a very important role in preventing conflicts among individuals. When individuals strongly oppose each other’s opinions and ideas, the probability of a conflict arises. A conflict starts when individuals think on different lines and find it very difficult to accept each other’s ideas. Conflict must be avoided as it destroys the peace, lowers the productivity as well as demotivates the individuals. All the factors leading to a fight must be explored and efforts must be made to prevent a conflict. A conflict is not very easy to control; an individual needs certain skills for the same.

Let us study the skills in detail.

  1. Effective communication Skills

Effective communication skills are of utmost importance to prevent conflicts. While interacting with others, you have to take special care of your speech and the way you speak. Never ever shout on anyone, even if you do not agree with him. Always speak in a polite but convincing manner. Greet others with a warm smile. It works. Be very specific and precise in your speech. Do not use complicated words and confuse others. Keep a control on your tongue and do not use words which might hurt the sentiments of others. Avoid using abusive languages.

  1. Listening Skills

An individual must not give his expert comments unless and until he is very clear what the other person wants. Always be a good listener. Don’t just jump to conclusions and assume things on your own. Always listen to the other side of the story as well.

  1. Discussion

Don’t just follow the rumor mills blindly, do discuss with others as well. Differences can crop up anytime but fighting would provide no solution. It is always better to sit and discuss the issues on an open forum. All the participants must give their inputs and efforts must be made to find out an alternative. Invite all the members involved and never ignore anyone as it would never solve the problem. Everyone has a right to express his views and a middle way has to be found.

  1. Patience

One needs to be very patient to avoid conflicts. There would be people at your workplace and even home who would try to provoke you to fight. Never ever get influenced. Always follow your instincts and support what is right. Be very sensible and patient. Learn to keep a control on your emotions. Do not ever lose your temper as it would only make the situation worse.

  1. Impartial

An individual has to be impartial to avoid conflicts. Do not always support your friend. Stand by what is correct and never support what is wrong. Any individual, even if he is your friend must be corrected if you feel he is wrong. Listen to everyone and never ignore anyone just because you don’t know him.

  1. Never Criticize

Make the other person understand if he is wrong. Don’t criticize him as it would definitely hurt his sentiments. The other person might not be as intelligent as you are, but you have no right to make fun of him. Others will look up to you if you guide the other person well and make him realize his mistakes.

  1. Positive Attitude

Positive attitude is essential to avoid fights and conflicts. In offices, never ever play the Blame game. No one is perfect and if you have done anything wrong, have the courage to accept it. Human Beings are bound to make mistakes but never try to put the blame on anyone else’s shoulders. Avoid backbiting as it only spoils the relationships. If you don’t agree with anyone’s views, discuss with him on his face, he will like it. Don’t always find faults in others and be a little more adjusting as life is all about adjustments.

  1. Ignore others

Individuals must try to adopt the middle path approach which considers the interests of one and all. Don’t unnecessarily waste your energy for a person who is too adamant and is not willing to compromise at all. Ignore the person who is too demanding as it would solve half of your problems.

Importance of Conflict Management

A conflict arises when individuals have varied interests, opinions and thought processes and are just not willing to compromise with each other. It is always wise to adjust to some extent and try to find a solution to the problem rather than cribbing and fighting. Conflicts and disagreements only lead to negativity and things never reach a conclusion. It only adds on to the tensions and makes life hell. It actually leaves you drained and spoils your reputation. Every individual should try his level best to avoid conflict at the first place rather than resolving it later. Precautions must be taken at the right time to avoid a conflict.

Imagine yourself constantly fighting with your fellow worker. Would you ever feel going to office?

The issues resulting in a conflict must be controlled at the right time to prevent the eruption of a big fight. Conflict management plays an important role everywhere, at work places and even in our personal lives. Fighting never makes anyone happy and actually makes one’s life miserable.

No organization runs for charity, it has to make money to survive well. Employees must give their hundred percent at work to ensure the maximum productivity. Nothing productive will ever come out if the employees are constantly engaged in fighting and criticizing others. Conflict management plays a very important role at workplaces to prevent conflicts and for the employees to concentrate on their work. The team leaders must ensure that the roles and responsibilities of each and every employee are clearly passed on to them. Employees should be demotivated to interfere in each other’s work. Employees waste half of their time and energy in fighting with others and find it very difficult to work which they are actually supposed to do. An individual must enjoy his work; otherwise he would never be able to give his best.

Conflict management goes a long way in strengthening the bond among the employees and half of the problems automatically disappear. Individuals must feel motivated at work and find every single day exciting and challenging. Before implementing any idea, it must be discussed with everyone and no one should ever feel ignored or left out. This way, every employee feels indispensable for the office and he strives hard to live up to the expectations of his fellow workers and in a way contributing to the organization in his best possible way. Conflict management avoids conflicts to a great extent and thus also reduces the stress and tensions of the employees. No one likes to carry his tensions back home and if you fight with your colleagues and other people, you are bound to feel uncomfortable and restless even at home.

Conflict management also plays an important role in our personal lives. Tussles and fights spoil relationships and only increase our list of enemies. Everyone needs friends who will stand by us when we need them. Conflict must be avoided at homes as it spoils the ambience and spreads negativity. Individuals tend to disrespect others as a result of conflicts. Conflict management prevents fall out between family members, friends, relatives and makes life peaceful and stressfree. Blamegame never helps anyone, instead it makes life miserable. No idea can ever be implemented if the individuals fight among themselves.

Conflict management helps to find a middle way, an alternative to any problem and successful implementation of the idea. Problems must be addressed at the right time to prevent conflict and its adverse effects at a later stage. Through conflict management skills, an individual explores all the possible reasons to worry which might later lead to a big problem and tries to resolve it as soon as possible.

Conflict Management is very important because it is always wise to prevent a fight at the first place rather than facing its negative consequencies. Stress disappears, people feel motivated, happy and the world definitely becomes a much better place to stay as a result of conflict management.

Functional Strategies, Features, Importance, Challenges

Functional Strategies refer to the specific tactics and actions developed by various departments within an organization to support overarching business strategies and objectives. Each functional area—such as marketing, finance, human resources, operations, and information technology—crafts its strategy to optimize performance and contribute to the company’s goals. These strategies are tailored to the unique capabilities, processes, and needs of each function and are crucial for the efficient allocation of resources, coordination of activities, and achievement of competitive advantage. Effective functional strategies ensure that each department aligns with the broader strategic vision of the organization, creating synergy and improving overall operational effectiveness to maximize business success and sustainability.

Features of Functional Strategies:

  • Specificity:

Functional strategies are detailed and tailored to address the unique challenges and opportunities within a specific department such as marketing, finance, operations, or human resources.

  • Alignment:

They are designed to align with the overall corporate strategy, ensuring that each functional area contributes effectively to the overarching goals of the organization.

  • Resource Allocation:

Functional strategies involve specific plans for allocating resources within a department to maximize efficiency and effectiveness in achieving set objectives.

  • Goal-Oriented:

These strategies are goal-oriented, focused on achieving specific outcomes that contribute to the success of the entire organization.

  • Measurability:

They include measurable targets and key performance indicators (KPIs) that help assess the performance of each functional area and its impact on the organization’s success.

  • Adaptability:

Functional strategies are flexible, allowing departments to adapt to changes in the external environment, including market conditions, technology, and regulatory changes.

  • Integration:

Effective functional strategies are integrated with each other, ensuring that the activities of different departments are coordinated and mutually supportive, avoiding silos within the organization.

  • Competitive Advantage:

They are often designed to leverage the strengths and core competencies of a functional area to provide a competitive advantage, such as innovation in product development or excellence in customer service.

Importance of Functional Strategies:

  • Enhanced Coordination:

Functional strategies help coordinate activities within individual departments and ensure that these activities are aligned with the broader strategic goals of the organization, leading to more cohesive and effective operations.

  • Resource Optimization:

They facilitate the optimal use of resources within each department, ensuring that resources such as time, money, and personnel are utilized efficiently and effectively to achieve specific functional goals.

  • Goal Achievement:

Functional strategies are essential for translating high-level organizational goals into actionable plans within each department, which helps in achieving specific and measurable outcomes that contribute to the overall success of the business.

  • Improves Accountability:

By setting specific objectives for each department, functional strategies improve accountability by making it easier to track performance and hold individual departments responsible for their results.

  • Increases Adaptability:

They allow departments to quickly adapt to changes in the market or industry by having strategies that are tailored to the specific dynamics and challenges faced by each functional area.

  • Supports Innovation:

Functional strategies can foster innovation by encouraging departments to develop creative solutions and improvements within their specific areas of expertise, thus contributing to competitive advantage.

  • Enhances Communication:

Clear functional strategies improve communication within and across departments by defining clear roles, responsibilities, and expectations, which helps in reducing conflicts and enhancing synergy.

  • Drives Competitive Advantage:

By maximizing the efficiency and effectiveness of each department, functional strategies contribute to building and sustaining a competitive advantage. For example, a cutting-edge marketing strategy can help capture greater market share, while an innovative R&D strategy can lead to the development of unique products.

Challenges of Functional Strategies:

  • Alignment with Corporate Strategy:

One of the primary challenges is ensuring that functional strategies align well with the overall corporate strategy. Misalignment can lead to efforts that do not support or even contradict other organizational goals.

  • Resource Constraints:

Functional areas often compete for limited resources, such as budget, personnel, and technology. Balancing these resources effectively across various departments can be challenging and may impact the effectiveness of functional strategies.

  • Interdepartmental Coordination:

Ensuring coordination and cooperation among different functional areas can be difficult. Lack of coordination can lead to silos that hinder information sharing and collaborative problem-solving.

  • Adaptability to Change:

External changes such as market dynamics, economic conditions, and technological advancements require functional strategies to be flexible. Adapting strategies in response to these changes can be challenging, particularly in larger, less agile organizations.

  • Measuring Performance:

Developing clear, measurable KPIs that accurately reflect the performance of functional strategies can be complex. Without precise metrics, assessing effectiveness and making informed decisions becomes problematic.

  • Skill Gaps:

Effective implementation of functional strategies often requires specific skills and expertise. Skill gaps within teams can lead to suboptimal execution of these strategies.

  • Cultural Fit:

Functional strategies must fit within the organizational culture to be effective. Strategies that clash with the established culture may face resistance, reducing their effectiveness or leading to failure.

  • Innovation Constraints:

While functional strategies aim to optimize current operations, they can sometimes constrain innovation by focusing too heavily on refining existing processes and products. Balancing operational excellence with innovation is a significant challenge.

Strategy Evaluation and Strategy Control

Strategy Evaluation is a crucial phase in the strategic management process where the effectiveness of a strategic plan is assessed. This involves systematically analyzing the performance of implemented strategies to determine their success in achieving organizational goals. The evaluation process includes monitoring ongoing performance, comparing actual outcomes against predefined objectives, and identifying deviations. It also entails assessing the relevance of the current strategy in the face of evolving external and internal conditions. Strategy evaluation helps organizations to understand whether strategic choices are delivering the desired results, and it provides the basis for necessary adjustments. Effective strategy evaluation ensures that an organization remains aligned with its objectives and can adapt to changing circumstances, thereby maintaining competitiveness and sustainability.

Nature of Strategy evaluation:

  • Continuous Process:

Strategy evaluation is not a one-time activity but a continuous process that occurs throughout the implementation of a strategy. It requires regular monitoring and assessment to ensure that strategies are responsive to changes in the internal and external environment.

  • Multidimensional:

The evaluation involves assessing multiple dimensions of performance, including financial results, market share, customer satisfaction, and internal operational efficiency. This comprehensive approach helps in understanding the overall impact of the strategy.

  • Objective and Systematic:

Effective strategy evaluation must be objective, relying on measurable data to assess performance. It should be systematically integrated into the strategic management process, with clear criteria and methodologies for assessment to avoid biases and ensure consistency.

  • Forward-Looking:

While it often reviews past and current performance, strategy evaluation is also forward-looking. It involves forecasting and scenario planning to anticipate future challenges and opportunities, allowing organizations to proactively adjust their strategies.

  • Adaptive:

Strategy evaluation must be adaptive, offering the flexibility to modify strategies as needed. This adaptiveness is crucial in today’s fast-paced business environments where internal and external factors can change rapidly.

  • Integrated with Decision-Making:

The insights gained from strategy evaluation should directly influence decision-making processes. This integration ensures that strategic adjustments are informed by concrete evaluation data, leading to better-aligned and more effective strategic moves.

Importance of Strategy evaluation:

  • Performance Assessment:

Strategy evaluation allows organizations to assess whether strategic initiatives are meeting their intended goals. It provides metrics and feedback on the effectiveness of strategies in real time, helping managers understand where they are succeeding and where improvements are needed.

  • Adaptability:

In today’s fast-changing business environment, the ability to adapt strategies based on performance and changing conditions is crucial. Strategy evaluation provides the data necessary to make informed decisions that can pivot or redirect resources as needed.

  • Resource Allocation:

Effective strategy evaluation helps ensure that resources are being used efficiently. By regularly assessing the outcomes of strategy implementation, organizations can optimize the use of their resources, reallocating them from underperforming areas to those with greater potential.

  • Risk Management:

It helps in identifying risk factors in strategies and their implementation. Early detection of potential risks allows organizations to take corrective actions proactively, thereby mitigating losses and leveraging opportunities more effectively.

  • Alignment with Objectives:

Regular evaluation helps maintain alignment between the strategy and the organization’s long-term objectives. It ensures that all strategic activities contribute towards the overarching goals, and adjustments can be made to keep efforts on track.

  • Feedback Loop:

Strategy evaluation establishes a critical feedback loop for continuous improvement. Feedback from the evaluation phase is essential for refining strategies, enhancing processes, and improving outcomes over time.

  • Organizational Learning:

It facilitates organizational learning by documenting successes and failures. This learning contributes to better strategic planning in the future as insights are gathered on what works and what doesn’t.

  • Stakeholder Confidence:

Regular and transparent evaluation processes improve credibility and stakeholder confidence. Investors, management, and other stakeholders are more likely to support an organization that actively evaluates and adapts its strategies based on solid data.

Strategy Control

Strategy Control is the systematic process used by organizations to monitor and regulate the implementation of their strategies to ensure that strategic objectives are being met effectively and efficiently. It involves the ongoing assessment of performance against established goals and the external environment to identify any deviations or operational setbacks. Strategy control allows for corrective actions to be taken when performance does not align with expectations. This control process is essential for adapting strategies in response to changes in market conditions, competitive dynamics, or internal organizational shifts. By providing a mechanism for continuous feedback and adjustment, strategy control ensures that an organization remains on track towards achieving its strategic goals, thus enhancing overall strategic management and organizational resilience.

Nature of Strategy Control:

  • Integrative:

Strategy control integrates with all levels of strategic planning and implementation. It connects long-term objectives with operational activities and aligns them to ensure that every action contributes toward achieving strategic goals.

  • Dynamic:

It is dynamic and adapts to changes in the internal and external environments. As market conditions, competitive landscapes, and organizational capacities evolve, strategy control mechanisms help managers adjust their strategies in real-time to stay relevant and effective.

  • Continuous Process:

Strategy control is not episodic; it is a continuous process that happens throughout the lifecycle of a strategy. It involves regular monitoring and revising of strategies to ensure that they are effective under current circumstances.

  • Preventive and Corrective:

It serves both preventive and corrective functions. Preventive controls are designed to anticipate and mitigate potential deviations before they occur, while corrective controls are implemented to adjust strategies after deviations have been identified.

  • Feedback-Oriented:

Central to strategy control is the use of feedback. This feedback, derived from various performance metrics, allows organizations to evaluate their progress against set benchmarks and make necessary adjustments.

  • Decision Supportive:

Strategy control provides essential information that supports strategic decision-making. By assessing performance and identifying trends and anomalies, it guides leaders in making informed decisions about future strategic directions or necessary adjustments to current strategies.

Importance of Strategy Control:

  • Ensures Alignment with Objectives:

Strategy control is crucial for ensuring that all actions and initiatives within the organization remain aligned with the strategic objectives. It helps in monitoring whether the activities at different levels of the organization contribute towards the overall goals.

  • Adaptability to Environmental Changes:

The business environment is dynamic, with frequent changes in market conditions, competition, regulations, and technology. Strategy control allows organizations to respond to these changes promptly by adjusting strategies in a timely manner to maintain competitiveness and relevance.

  • Optimizes Resource Utilization:

Effective strategy control helps in ensuring that resources are not wasted on non-productive or less effective activities. It aids in optimizing the allocation and use of resources (financial, human, and operational) to enhance efficiency and effectiveness.

  • Mitigates Risks:

By continuously monitoring progress and performance, strategy control helps identify potential risks and issues before they become significant problems. This proactive approach allows organizations to implement corrective measures early, thereby reducing potential losses and taking advantage of emerging opportunities.

  • Facilitates Decision Making:

Strategy control provides management with critical feedback based on performance data. This feedback is integral for making informed decisions regarding the continuation, modification, or termination of strategies based on their effectiveness and efficiency.

  • Improves Organizational Learning and Development:

Through continuous monitoring and evaluation, strategy control contributes to organizational learning by highlighting what is working well and what is not. This process encourages a culture of continuous improvement and helps build a knowledge base that can influence future strategies.

Key differences between Strategy evaluation and Strategy Control

Aspect Strategy Evaluation Strategy Control
Purpose Assess effectiveness Ensure alignment
Focus Outcome analysis Process monitoring
Timing Periodic Continuous
Orientation Retrospective Proactive and corrective
Primary Role Judgment Adjustment
Scope Broader assessment Specific performance checks
Feedback Type Strategic insights Operational feedback
Outcome Decision-making support Performance alignment
Decision Influence Strategic redirection Tactical adjustments
Typical Tools SWOT, KPI analysis Dashboards, real-time alerts
Information Flow Often top-down Both top-down and bottom-up
Implementation Analytical and reflective Dynamic and directive

Strategic Decision Making

Strategic decision-making is the process of charting a course based on long-term goals and a longer term vision. By clarifying your company’s big picture aims, you’ll have the opportunity to align your shorter term plans with this deeper, broader mission giving your operations clarity and consistency.

Strategic decision making involves the following 3 things:

  • The long term way forward for the company
  • Selection of proper markets for the company
  • The products and tactics needed to succeed in the targeted market.

Features of Strategic Decision Making

  1. Strategy is at many times at tangent with Marketing Decisions

Where marketing decisions are short term, strategic decision making might consider a long term initiative, such as launching a very new and innovative product, or changing the existing product lines radically. Technology or innovation is at the crux of strategic decision making.

The reason that marketing decisions and strategy decisions are difference is because marketing is focused on retaining the existing customer base with the existing technologies. But the customer base is sure to get tired soon of the existing products and the innovators and adopters will keep searching for new products in the market. And hence, through strategic decisions, the firm has to stay in a place of continuous development.

  1. There is immense risk involved while taking strategic decisions

Naturally, when you are implementing plans which will show positive or negative results only after 4-5 years, the risk in strategic decision making is huge. Think about the time and energy, not to say natural resources wasted to implement a plan which failed after 4-5 years.

Yet, even after the risk involved, companies have to implement risky strategic decisions from time to time just because the directors thought a unique product had demand in the market, or that another product is required in the market. Strategic decisions involve necessary risk and success is not guaranteed.

  1. Strategic decisions involve a lot of Ifs and Buts

Think of a mind map and the number of branches and nodes that can form the complete mind map. When a brain starts thinking, the central thought might have further branches, and these branches will have even more nodes (or sub branches if you want to call them)

Similar to the mind map, a business can face many problems in the course of its run. A competitor can crop up, the market can become penetrative, the external environment can change, and many other unforeseen situations can happen. The strategic decision making has to consider all these alternatives, whether positive or negative. And the plan has to also include the action that the firm will take, if any of the above business problems or factors come into play.

  1. Strategy implementation timelines

Whenever we make a schedule in our personal lives, we always start things when we have enough time in our hand. For example you will plan a holiday, when office work is not hectic. You will not plan it when there is a product launch nearby. Similarly, when in business, timelines are very important.

If a product is to be launched, the launch date is decided at least a year back, the sales phase has to be implemented at least 2 months before the actual launch so that you have sellers in place when the product is launch. Moreover, the service network is also to be planned before the launch, so that service issues are sorted out when there are problems after the product launch. If these concepts are not implemented, the marketing strategy and hence the product can fail miserably.

  1. Preparing for the competition’s response

Whenever you change the market equilibrium, the competitors, whose businesses you have directly challenged, are sure to respond. When they respond, the market changes and you have to change your strategy accordingly.

In general there are 2 ways that a company directly affects the competition and the market.

  • The company creates a completely new operating norm in the market itself.
  • It raises customer expectations and thereby changes the market equilibrium.

Most strategic decisions will call for radical changes in the way the company operates in the existing market. Accordingly, the perception of competitors and customers will change for the company. The company has to in turn be prepared for the response of competitors in such a case.

Implementation of strategic decisions While implementing strategic decisions, you need to have eyes at the front as well as the back of your head. You need to look at what was decided at the start, as due to short term pressure, it is very much possible to deviate from the path which was already set.

Dealing with Risk and Uncertainty in Decision Making

Decision-making under Certainty

A condition of certainty exists when the decision-maker knows with reasonable certainty what the alternatives are, what conditions are associated with each alternative, and the outcome of each alternative. Under conditions of certainty, accurate, measurable, and reliable information on which to base decisions is available.

The cause and effect relationships are known and the future is highly predictable under conditions of certainty. Such conditions exist in case of routine and repetitive decisions concerning the day-to-day operations of the business.

Decision-making under Risk

When a manager lacks perfect information or whenever an information asymmetry exists, risk arises. Under a state of risk, the decision maker has incomplete information about available alternatives but has a good idea of the probability of outcomes for each alternative.

While making decisions under a state of risk, managers must determine the probability associated with each alternative on the basis of the available information and his experience.

Decision-making under Uncertainty

Most significant decisions made in today’s complex environment are formulated under a state of uncertainty. Conditions of uncertainty exist when the future environment is unpredictable and everything is in a state of flux. The decision-maker is not aware of all available alternatives, the risks associated with each, and the consequences of each alternative or their probabilities.

The manager does not possess complete information about the alternatives and whatever information is available, may not be completely reliable. In the face of such uncertainty, managers need to make certain assumptions about the situation in order to provide a reasonable framework for decision-making. They have to depend upon their judgment and experience for making decisions.

Modern Approaches to Decision-making under Uncertainty

There are several modern techniques to improve the quality of decision-making under conditions of uncertainty.

The most important among these are:

  • Risk analysis
  • Decision trees
  • Preference theory

Risk Analysis

Managers who follow this approach analyze the size and nature of the risk involved in choosing a particular course of action.

For instance, while launching a new product, a manager has to carefully analyze each of the following variables the cost of launching the product, its production cost, the capital investment required, the price that can be set for the product, the potential market size and what percent of the total market it will represent.

Risk analysis involves quantitative and qualitative risk assessment, risk management and risk communication and provides managers with a better understanding of the risk and the benefits associated with a proposed course of action. The decision represents a trade-off between the risks and the benefits associated with a particular course of action under conditions of uncertainty.

Decision Trees

These are considered to be one of the best ways to analyze a decision. A decision-tree approach involves a graphic representation of alternative courses of action and the possible outcomes and risks associated with each action.

By means of a “tree” diagram depicting the decision points, chance events and probabilities involved in various courses of action, this technique of decision-making allows the decision-maker to trace the optimum path or course of action.

Preference or Utility Theory

This is another approach to decision-making under conditions of uncertainty. This approach is based on the notion that individual attitudes towards risk vary. Some individuals are willing to take only smaller risks (“risk averters”), while others are willing to take greater risks (“gamblers”). Statistical probabilities associated with the various courses of action are based on the assumption that decision-makers will follow them.

3For instance, if there were a 60 percent chance of a decision being right, it might seem reasonable that a person would take the risk. This may not be necessarily true as the individual might not wish to take the risk, since the chances of the decision being wrong are 40 percent. The attitudes towards risk vary with events, with people and positions.

Top-level managers usually take the largest amount of risk. However, the same managers who make a decision that risks millions of rupees of the company in a given program with a 75 percent chance of success are not likely to do the same with their own money.

Moreover, a manager willing to take a 75 percent risk in one situation may not be willing to do so in another. Similarly, a top executive might launch an advertising campaign having a 70 percent chance of success but might decide against investing in plant and machinery unless it involves a higher probability of success.

Though personal attitudes towards risk vary, two things are certain.

Firstly, attitudes towards risk vary with situations, i.e. some people are risk averters in some situations and gamblers in others.

Secondly, some people have a high aversion to risk, while others have a low aversion.

Most managers prefer to be risk averters to a certain extent, and may thus also forego opportunities. When the stakes are high, most managers tend to be risk averters; when the stakes are small, they tend to be gamblers.

Manpower Planning, Process, Reason, Challenges

Manpower Planning, also known as human resource planning, is the process of forecasting an organization’s future human resource needs and ensuring that the right number of qualified individuals are available to meet those needs. It involves analyzing current workforce capabilities, predicting future staffing requirements based on organizational goals and strategies, and developing plans to recruit, train, and retain employees. Effective manpower planning helps organizations optimize their human resources, minimize costs, improve productivity, and ensure that they can adapt to changing business conditions while achieving strategic objectives.

Process of Manpower Planning:

Process of manpower planning involves several steps that help organizations ensure they have the right number of employees with the necessary skills to meet their goals.

  1. Assess Organizational Objectives

  • Understand the organization’s short-term and long-term goals.
  • Align manpower planning with strategic objectives to ensure that the workforce supports business needs.
  1. Analyze Current Workforce

  • Conduct a thorough evaluation of the existing workforce to determine the number of employees, their skills, experience, and qualifications.
  • Identify strengths, weaknesses, and gaps in the current workforce.
  1. Forecast Future Manpower Needs

  • Project future staffing requirements based on factors such as business growth, upcoming projects, market trends, and technological changes.
  • Use quantitative methods (statistical analysis) and qualitative methods (expert opinions) for forecasting.
  1. Identify Gaps in Workforce

  • Compare the current workforce against the projected needs to identify gaps.
  • Determine the quantity and type of personnel required to meet future demands.
  1. Develop Recruitment Plans

  • Create strategies for recruiting new employees to fill identified gaps.
  • Consider various recruitment sources such as job postings, employee referrals, recruitment agencies, and online platforms.
  1. Implement Training and Development Programs

  • Identify skills development needs and create training programs to enhance the existing workforce’s capabilities.
  • Ensure employees are equipped with the skills required for future roles.
  1. Evaluate and Adjust Staffing Levels

  • Monitor the implementation of the staffing plan and assess its effectiveness.
  • Adjust the workforce levels and recruitment plans based on changing business conditions and feedback from management.
  1. Review and Revise Manpower Plan

  • Continuously evaluate the manpower planning process to ensure it remains aligned with the organization’s objectives and responds to internal and external changes.
  • Revise the manpower plan as needed to adapt to new business challenges or opportunities.

Reason of Manpower Planning:

  • Optimal Utilization of Resources:

Manpower planning ensures that an organization effectively utilizes its human resources, preventing both understaffing and overstaffing, which can lead to inefficiencies and increased costs.

  • Future Workforce Needs:

It helps organizations anticipate future staffing requirements based on business growth, projects, and changes in the industry, ensuring they have the right talent available when needed.

  • Skill Development and Training:

Through manpower planning, organizations can identify skill gaps within their workforce and implement training programs to develop the necessary competencies, enhancing overall productivity.

  • Employee Retention:

Effective manpower planning contributes to higher employee satisfaction by aligning individual career goals with organizational objectives, leading to improved retention rates.

  • Cost Management:

By accurately forecasting staffing needs, organizations can manage labor costs more effectively, reducing unnecessary expenses related to recruitment and training.

  • Adaptability to Change:

In a dynamic business environment, manpower planning enables organizations to quickly adapt to changes in market demand or operational needs by ensuring a flexible and capable workforce.

  • Strategic Decision-Making:

It provides essential data and insights for strategic decision-making, allowing management to align workforce capabilities with business goals and objectives.

  • Succession Planning:

Manpower planning facilitates the identification of potential leaders within the organization, ensuring a smooth transition in key positions and maintaining business continuity.

Challenges of Manpower Planning:

  1. Dynamic Business Environment

The rapid changes in the business landscape, including technological advancements, market fluctuations, and evolving consumer preferences, make it difficult to predict future manpower needs accurately. Organizations must remain agile and adaptable to respond to these changes effectively.

  1. Skill Shortages

Many industries face a shortage of skilled labor, making it challenging to find qualified candidates to fill key positions. As job requirements become more specialized, organizations may struggle to identify individuals with the necessary skills and experience, leading to potential gaps in the workforce.

  1. Inaccurate Forecasting

Forecasting future manpower needs relies on various assumptions and data analysis, which may not always be accurate. Poor forecasting can lead to overstaffing or understaffing, both of which can have negative consequences for organizational performance and employee morale.

  1. Employee Turnover

High employee turnover can disrupt manpower planning efforts. Frequent departures can create instability within teams and require ongoing recruitment and training efforts, complicating the planning process. Organizations need strategies to retain talent and minimize turnover to ensure a stable workforce.

  1. Resistance to Change

Employees may resist changes associated with manpower planning, such as new roles, restructuring, or shifts in organizational culture. Overcoming this resistance requires effective communication and change management strategies to foster acceptance and cooperation among staff.

  1. Integration with Other HR Functions

Manpower planning must be integrated with other human resource functions, such as recruitment, training, and performance management. Lack of coordination can lead to inefficiencies, misalignment, and missed opportunities for optimizing workforce capabilities.

  1. Compliance and Regulations

Organizations must navigate various labor laws and regulations that impact manpower planning, such as equal employment opportunity laws, health and safety regulations, and union agreements. Compliance with these regulations adds complexity to the planning process and can limit flexibility.

  1. Technological Integration

The integration of technology into manpower planning processes can be both a challenge and an opportunity. While technology can enhance data analysis and forecasting capabilities, organizations may face challenges in adopting new systems, training staff, and ensuring data accuracy and security.

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