Human Resource Accounting Meaning, Features, Objectives and Methods

Human Resource Accounting (HRA) is a specialized area of accounting that involves measuring, recording, and analyzing the value of an organization’s human capital. It recognizes employees as valuable assets rather than just costs, aiming to quantify their contribution to the organization in monetary terms. This concept emphasizes the importance of skilled and experienced employees in driving organizational success and sustainable growth.

HRA focuses on assessing the cost of recruiting, training, and developing employees alongside evaluating their economic value and performance. Costs such as salaries, benefits, and training investments are categorized, and methods like historical cost, replacement cost, and present value of future earnings are used to estimate their value.

The primary goal of HRA is to provide information for better decision-making by management, such as resource allocation, talent management, and workforce planning. It also aids in evaluating the return on investment in human capital and improving transparency in financial reporting.

HRA benefits organizations by helping them understand the long-term impact of employee contributions, fostering effective talent management strategies, and aligning workforce investments with organizational goals. By recognizing human resources as strategic assets, HRA highlights their critical role in achieving competitive advantage.

Features of Human Resource Accounting:

  • Recognition of Human Capital as Assets

HRA acknowledges employees as intangible assets critical to the success of an organization. It shifts the perspective from viewing human resources as merely expenses to considering them as valuable investments.

  • Measurement of Costs and Value

HRA involves calculating the costs associated with human resources, such as recruitment, training, development, and retention. It also evaluates the economic value employees bring to the organization through their productivity and contributions.

  • Use of Quantitative and Qualitative Metrics

HRA employs both quantitative metrics (e.g., cost of training programs, employee turnover rates) and qualitative assessments (e.g., employee skills, leadership potential) to provide a comprehensive valuation of human resources.

  • Focus on Decision-Making

HRA aids management in making informed decisions related to workforce planning, training investments, promotions, and succession planning. It provides insights into how human capital investments impact organizational performance.

  • Enhanced Financial Reporting

By including human capital in financial statements, HRA offers a more transparent view of an organization’s intangible assets. This improves the quality of financial reporting and enhances stakeholder trust.

  • Alignment with Organizational Goals

HRA aligns the measurement and management of human resources with organizational objectives. It highlights the importance of workforce management in achieving strategic goals and sustaining competitive advantage.

Objectives of Human Resource Accounting:

1. Recognizing Human Resources as Assets

HRA aims to shift the traditional perspective of employees as expenses to recognizing them as valuable organizational assets. This objective highlights the long-term contribution of human capital to organizational success and positions employees alongside other tangible assets on the balance sheet.

2. Measuring the Cost of Human Resources

One of the core objectives of HRA is to quantify the cost associated with human resources, including recruitment, selection, training, development, and retention. By identifying these costs, organizations can evaluate their investment in human capital and plan for its efficient utilization.

3. Determining the Economic Value of Employees

HRA seeks to calculate the monetary value employees contribute to the organization. It evaluates the impact of human resources on productivity, innovation, and profitability, providing a clear picture of their return on investment (ROI).

4. Facilitating Effective Decision-Making

HRA provides management with accurate data about human capital, which aids in making informed decisions. This includes areas such as workforce planning, compensation strategies, talent development programs, and succession planning, ensuring that human resource investments align with organizational goals.

5. Enhancing Transparency in Financial Reporting

HRA integrates human capital valuation into financial statements, making them more comprehensive and transparent. By doing so, it enables stakeholders to understand the intangible value human resources bring to the organization, fostering greater trust and accountability.

6. Supporting Human Resource Development

Another key objective of HRA is to promote the continuous growth and development of employees. By identifying skill gaps and measuring the effectiveness of training programs, HRA helps organizations design initiatives that enhance employee performance and satisfaction.

Methods of Human Resource Accounting:

Human Resource Accounting (HRA) employs various methods to quantify the value of human resources. These methods can be broadly categorized into cost-based methods and value-based methods, each offering unique perspectives on human capital valuation.

1. Historical Cost Method

This method involves recording the actual costs incurred in hiring, training, and developing employees. These costs are treated as investments and are amortized over the expected service life of the employees.

  • Advantages: Simple to implement and focuses on actual expenses.
  • Disadvantages: Ignores future potential and does not consider the impact of inflation.

2. Replacement Cost Method

This method estimates the cost of replacing an employee with a similar skill set and experience. It includes expenses for recruitment, training, and onboarding of new hires.

  • Advantages: Reflects the current value of human resources.
  • Disadvantages: Can be subjective and challenging to estimate accurately.

3. Present Value of Future Earnings Method

This approach calculates the present value of an employee’s expected future earnings during their tenure. The formula discounts future earnings to the current period.

  • Advantages: Focuses on potential contributions.
  • Disadvantages: Highly dependent on assumptions about future performance and tenure.

4. Opportunity Cost Method

This method values human resources based on the opportunity cost of not employing them in their most productive capacity. It considers the income that would be forgone if employees left the organization.

  • Advantages: Highlights the economic impact of skilled employees.
  • Disadvantages: Limited applicability as it assumes perfect mobility of employees.

5. Economic Value Method

This method evaluates the economic value of employees by estimating their contribution to the organization’s overall profitability. It combines cost and performance metrics.

  • Advantages: Provides a comprehensive valuation of employee contributions.
  • Disadvantages: Requires complex data and analysis.

6. Adjusted Present Value Method

This method adjusts the present value of future earnings by incorporating factors such as employee turnover, training effectiveness, and market conditions.

  • Advantages: Offers a nuanced valuation.
  • Disadvantages: Complex and resource-intensive.

7. Human Resource Value Index Method

This method assigns an index value to employees based on factors such as skills, experience, performance, and potential. The index reflects their relative value to the organization.

  • Advantages: Emphasizes qualitative aspects of human resources.
  • Disadvantages: Subjective and prone to biases.

Collective Bargaining, Meaning, Forms, Pre-Requisites, Characteristics

Collective Bargaining is the process of negotiation between employers and employees (represented by trade unions) to determine fair wages, working conditions, benefits, and job security. It aims to establish a mutually agreed contract that protects workers’ rights while ensuring business stability. This process fosters industrial peace, reduces conflicts, and enhances employee satisfaction. Collective bargaining can be distributive (win-lose), integrative (win-win), or productivity-based. It is a crucial tool for ensuring fair labor practices and promoting a balanced relationship between workers and management. Effective collective bargaining strengthens workplace democracy, ensuring that employees have a voice in decision-making processes.

Forms of Collective Bargaining:

  • Distributive Bargaining (Win-Lose Bargaining)

Distributive bargaining occurs when employers and employees negotiate over limited resources, such as wages or benefits, where one party’s gain is the other’s loss. It is a competitive approach where both sides try to maximize their own advantage. This type of bargaining is common in situations where workers demand higher pay while employers aim to control labor costs.

  • Integrative Bargaining (Win-Win Bargaining)

Integrative bargaining focuses on mutual gains rather than competition. Both parties work together to find creative solutions that benefit both employers and employees. For example, improving working conditions or offering productivity-linked incentives ensures workers are satisfied while businesses remain profitable. This approach fosters collaboration, trust, and long-term industrial harmony.

  • Productivity Bargaining

In productivity bargaining, workers agree to enhance their efficiency, skills, and output in exchange for better wages, incentives, and benefits. Employers commit to providing better training, technology, and working conditions. This approach is common in industries where performance-based pay structures and efficiency improvements are prioritized to boost overall productivity.

  • Composite Bargaining

Composite bargaining extends beyond wages and focuses on job security, working conditions, training opportunities, and retirement benefits. It aims to improve the overall quality of work-life for employees. Workers negotiate for stable employment, skill enhancement, and improved workplace safety, ensuring their well-being while maintaining a productive work environment.

  • Concessionary Bargaining

In concessionary bargaining, trade unions agree to certain compromises, such as wage cuts or reduced benefits, to help struggling businesses survive. This is common during economic downturns or financial crises, where companies may need cost reductions to stay operational. Workers accept temporary sacrifices in return for job security and long-term stability.

Essential Pre-Requisites for Collective Bargaining:

  • Strong and Recognized Trade Unions

A well-organized, united, and legally recognized trade union is essential for effective collective bargaining. The union should represent a majority of employees and have skilled leadership to negotiate with employers. Without a strong union, workers’ demands may be fragmented, reducing their bargaining power and making negotiations ineffective.

  • Willingness to Negotiate

Both employers and employees must show a genuine willingness to engage in fair negotiations. If either party is rigid or unwilling to compromise, the process fails. Successful collective bargaining requires a cooperative attitude, mutual respect, and an understanding of shared interests to achieve a win-win agreement.

  • Legal and Institutional Support

A strong legal framework and government support are essential to ensure fair negotiations. Labor laws should protect both workers and employers, preventing unethical practices like unfair dismissals or wage exploitation. Institutions such as labor courts or mediation bodies help in resolving disputes and ensuring compliance with agreements.

  • Availability of Accurate Information

Both parties must have access to reliable data on wages, productivity, profits, and industry trends. Accurate information ensures informed decision-making, leading to fair and just agreements. Misinformation or lack of transparency can cause mistrust and disrupt negotiations, making it difficult to reach mutually beneficial settlements.

  • Effective Leadership and Negotiation Skills

Strong leadership and skilled negotiators are crucial for successful collective bargaining. Union leaders should be knowledgeable about labor laws, industry standards, and economic conditions to make strong arguments. Employers should also have experienced negotiators who understand business needs and are willing to offer reasonable compromises.

  • Clear Objectives and Demands

Unions must clearly define their objectives before entering negotiations. Vague or unrealistic demands can lead to failed discussions and industrial disputes. A well-structured proposal that outlines specific concerns—such as wages, benefits, or working hours—ensures that negotiations are focused and result-oriented.

  • Industrial Harmony and Trust

A work environment with mutual trust and industrial peace supports productive collective bargaining. If there is ongoing conflict, negotiations may become hostile. Both parties should engage in discussions with an open mind, fostering trust and commitment to long-term agreements that benefit both employees and employers.

  • Mechanism for Implementation and Review

A structured process for enforcing agreements ensures that negotiated terms are implemented effectively. Employers must honor commitments, and unions should monitor compliance. Periodic reviews should be conducted to address emerging issues, ensuring that agreements remain relevant and effective in maintaining workplace harmony.

Characteristics of Collective Bargaining:

  • Bipartite Process

Collective bargaining involves two parties—employers and employees (or trade unions)—who negotiate terms of employment. It is a mutual discussion where both sides present their demands and concerns. The process requires cooperation, compromise, and dialogue to reach an agreement that benefits both workers and the organization, ensuring industrial peace and better working conditions.

  • Dynamic and Continuous Process

Collective bargaining is not a one-time event but a continuous and evolving process. As economic conditions, labor laws, and workplace environments change, agreements may require modifications and renegotiations. Periodic discussions help adapt to new industry trends, ensuring that agreements remain fair and relevant over time.

  • Voluntary Negotiation

The process of collective bargaining is based on voluntary participation. Both employers and employees must come forward willingly to negotiate without coercion. There is no external force imposing terms; rather, agreements are reached through mutual understanding and consensus, ensuring both parties feel heard and respected.

  • Aims at Industrial Peace

One of the primary goals of collective bargaining is to reduce industrial conflicts by addressing workers’ grievances and employer concerns through dialogue. By reaching fair agreements on wages, working conditions, and benefits, the process prevents strikes, lockouts, and labor disputes, promoting a peaceful work environment.

  • Flexible and Adaptive

Collective bargaining is a flexible mechanism that adapts to different industries, labor conditions, and economic changes. Unlike rigid laws, bargaining agreements can be tailored to specific organizational needs, making it an effective tool for addressing workforce concerns in a way that benefits both parties.

  • Focused on Economic and Non-Economic Issues

Collective bargaining covers both financial and non-financial aspects of employment. While it primarily negotiates wages, salaries, and benefits, it also addresses issues such as job security, working hours, workplace safety, promotions, and employee rights, ensuring comprehensive labor agreements.

  • Rule-Making Process

Through collective bargaining, binding agreements are created, forming a set of rules that govern employer-employee relationships. These agreements serve as guidelines for future labor relations, ensuring that workers’ rights and company policies are maintained consistently over time.

  • Legally and Socially Recognized

Collective bargaining is backed by labor laws and government policies, making its agreements legally binding. It is also recognized as a socially acceptable way to resolve labor disputes. A fair agreement benefits both workers and employers, contributing to economic stability and improved industrial relations.

Stress Management Through Mind Control and Purification

People can learn to manage stress and lead happier, healthier lives. Here are some tips to help you keep stress at bay.

  • Keep a positive attitude.
  • Accept that there are events that you cannot control.
  • Be assertive instead of aggressive. Assert your feelings, opinions, or beliefs instead of becoming angry, defensive, or passive.
  • Learn and practice relaxation techniques; try meditation, yoga, or tai-chi for stress management.
  • Exercise regularly. Your body can fight stress better when it is fit.
  • Eat healthy, well-balanced meals.
  • Learn to manage your time more effectively.
  • Set limits appropriately and learn to say no to requests that would create excessive stress in your life.
  • Make time for hobbies, interests, and relaxation.
  • Get enough rest and sleep. Your body needs time to recover from stressful events.
  • Don’t rely on alcohol, drugs, or compulsive behaviors to reduce stress.
  • Seek out social support. Spend enough time with those you enjoy.
  • Seek treatment with a psychologist or other mental health professional trained in stress management or biofeedback techniques to learn healthy ways of dealing with the stress in your life.

Stress Management Intervention Primary, Secondary and Tertiary

Primary Intervention

Actions at the primary level directly target the causes or sources of stress that are present within an organization in order to reduce or completely eliminate them. The aim is to reduce the possibility of developing mental health problems by reducing workers’ exposure to the risks in their work environment.

For example, it is known that lack of participation in the decision-making process has consequences for the mental health of individuals. Thus, an organization that wishes to undertake primary prevention could establish a mechanism which gathers the suggestions and requests of individuals, analyzes them, and applies them within the work environment with the participation of these individuals. In this way, the organization helps to reduce employees’ exposure to this risk factor and to prevent the development of work-related mental health problems.

Advantages and disadvantages

Primary prevention strategies are the only ones that reduce or eliminate mental health problems at work at their source. Because these strategies directly attack the causes of the problem, they will also considerably reduce their resulting costs. However, such significant results will require a real commitment from the organization. This explains why such strategies are used less often. It takes time and energy to eliminate the risks present in the workplace. Sometimes several months go by before the positive effects of primary strategies can be seen. Financial, human and technical resources are also required.

Such strategies require support by upper management and the commitment of all persons concerned. They must be part of a well planned and structured process. Ensuring the success of such an undertaking is a major challenge. For example, the development and functioning of the decision-making process described above can be expected to take some time and require the mobilization of human and technical resources. A system has to be implemented to gather suggestions made by employees, as well as to analyze, choose and apply them within the work environment. All these steps require significant effort and cannot be accomplished overnight.

Although implementing primary level strategies normally requires time, energy and resources, this is not always the case. Sometimes improvements can be made by simply adapting certain existing management practices within the organization. Team meetings are a good example. Several organizations hold weekly or monthly meetings with their employees. Not much is required to make these meetings an occasion to give employees recognition and support, and to facilitate feedback. In addition, an organization that wants to encourage the participation of employees in the decision-making process could use these meetings to gather requests and suggestions from employees until such time that an official process is implemented.

Secondary prevention:

Secondary prevention aims to help individuals develop the knowledge and skills to better recognize and manage their reactions to stress. Giving them the necessary tools allows them to better adapt to the situation or to the work environment and reduces the impact of stress. The content and form of these strategies may vary considerably but they usually include awareness and information-sharing activities, as well as skills development programs.

Advantages and disadvantages

Secondary prevention strategies are a useful tool because they make individuals aware of and inform them about the problem of mental health at work. These strategies also help them develop their skills and their mental resources in order to increase their resistance to stress.

However, secondary prevention strategies do not change the conditions in which work is performed. They only deal with the consequences of the problem in order to control the damage. This is why such strategies only have short-term effects. For example, while stress management training changes people’s reaction so that they can better adapt to their work, it does not eliminate the sources of stress within an organization.

Many firms that until now have relied exclusively on this type of strategy now realize that they are unable to adequately fight against work-related mental health problems. In order for secondary prevention strategies to be totally effective, they must be combined with primary and tertiary strategies.

Tertiary prevention

Tertiary prevention strategies aim to treat and rehabilitate persons as well as facilitate a return to work and the follow up of those who suffer or have suffered from a work-related mental health problem. These strategies generally include counselling services to refer employees to specialists if need be. Tertiary prevention activities are often part of employee assistance programs. These programs feature personalized client-centred help for persons with difficulties so they can analyze their problems and feel supported in their search for solutions. These strategies may also include return-to-work programs for employees who are on sick leave, as well as a help network for example, informal caregivers who can provide support, active listening and referrals to professional resources if necessary.

Advantages and disadvantages

In spite of the fact that the quality and quantity of services vary from one organization to another, they generally help individuals who have personal difficulties or work-related difficulties to obtain information, help and support from in-house counsellors and from counsellors outside the organization. Tertiary level services are voluntary, confidential and available at all times.

As far as drawbacks are concerned, tertiary activities, just like secondary ones, are centred on the person rather than the work situation. By trying to reduce the symptoms, once again they target only the consequences of the problem. Furthermore, because the Employee Assistance Program (EAP) is confidential, it cannot deal with organizational causes.

Return-to-work program

  • Maintains the employment relationship with the person on leave;
  • Return-to-work plan;
  • Employment support measures (for example: progressive return to work, temporary assignments, medical follow up).

Peer help networks

  • Active listening;
  • Information;
  • Support;
  • Referrals to specialized resources.

Employee assistance programs (EAP)

  • Information;
  • Assessing needs;
  • Short-term help through individual or group meetings;
  • Telephone support line;
  • Referrals to specialized resources (doctors, psychologists, psychiatrists, social workers, guidance counsellors, lawyers).

Models of Stress Management Transactional Model, Health Realization/ Innate Health Model

The Transactional Model

In 1984, Richard Lazarus and Susan Folkman proposed the Transactional Model (Cognitive Appraisal), a model that emphasizes how stress becomes the result of the imbalance between what the situation demands and what the person possesses in relation to those demands. According to them, stress is not directly resulting from the source of the stress otherwise known as the stressors; rather, it emerges because of the individual’s inability to satisfy demands. For these two researchers, therefore, stress management relates to the capacity of a person to utilize his resources in order to cope with the stress.

The Transactional Model tells us that a stress management program can only become effective if the individual’s ability to eliminate, reduce, or cope with stress is successful assessed, and that the factors related to such capacity are put into consideration.

Health Realization Model

Also called as the Innate Health Model of Stress, the Health Realization Model states that the presence of a probable stressor does not directly result to the stress experience. This idea was opposing that of the Transactional Model, because it states that the stress management program must be cantered on the perception of the potential stressor by the individual, not on his appraisal of stress coping abilities.

According to this model, the appraisal must be focused on filtering one’s mind of negativity an insecurity, so that he would not perceive a potential stressor as a source of stress, and would therefore lead to a more effective elimination or reduction of stress.

Stress Management Techniques

More and more people have realized their need to handle stress in a more effective way , which is why it is nearly impossible to identify all the stress management techniques applied by each of us. Nevertheless, here are the mostly recognized techniques on stress management:

  • Exercise
  • Starting a New a Hobby
  • Meditation
  • Autogenic training
  • Artistic Expression
  • Fractional relaxation
  • Progressive relaxation
  • Spas
  • Alternative/ natural medicine
  • Social activity
  • Cognitive therapy
  • Conflict resolution
  • Deep breathing
  • Reading novels
  • Prayer
  • Relaxation techniques
  • Listening to Music
  • Yoga

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.

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