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.

Change, Meaning, Importance, Types, Nature of Planned Change, Factors Influencing Change, Change Process

Change refers to the process of making things different from their current state, whether in personal life, society, or organizations. It involves a shift in structure, processes, technology, strategies, or behavior to adapt to evolving circumstances. In organizational terms, change means moving from an existing way of working to a new and improved method that better meets goals and challenges. It can be planned or unplanned, gradual or sudden, and may arise due to internal factors like innovation, leadership, or workforce needs, or external forces such as competition, globalization, and government regulations. Change is necessary for growth, development, and survival, as it helps organizations remain flexible and competitive. Ultimately, change signifies progress, improvement, and the continuous journey of adaptation to new realities.

Importance of Planned Change:

  • Ensures Smooth Transition

Planned change allows organizations to move from the current state to a desired future state in a systematic manner. By identifying objectives, creating strategies, and preparing employees in advance, it minimizes disruptions to daily operations. A smooth transition helps avoid confusion, reduces resistance, and maintains productivity during change initiatives.

  • Reduces Resistance

When change is planned, employees are informed about the purpose, benefits, and process of the transformation. This open communication builds trust and reduces fear of the unknown. Involving employees in planning makes them feel valued, lowering resistance and increasing acceptance of new practices, systems, or organizational structures.

  • Aligns with Organizational Goals

Planned change ensures that transformations are strategically aligned with long-term goals and visions. By carefully analyzing current challenges and future opportunities, leaders implement changes that contribute to competitiveness, efficiency, and sustainability. This alignment helps organizations stay focused, innovative, and better prepared for external pressures like competition and technology.

  • Improves Efficiency and Productivity

Planned change enables organizations to adopt new technologies, processes, and methods in a structured way. By analyzing inefficiencies in advance, management can redesign workflows and allocate resources more effectively. Employees receive training and support, which reduces errors and increases confidence in using new systems. This leads to higher productivity, better time management, and cost savings. A planned approach also ensures that improvements are measurable and continuously monitored, creating a culture of accountability and performance.

  • Builds Competitive Advantage

Organizations operate in a dynamic environment where survival depends on adaptability. Planned change helps businesses stay ahead by anticipating market shifts, customer demands, and technological innovations. Instead of reacting under pressure, organizations proactively design strategies that give them an edge over competitors. Employees become more innovative and adaptive, contributing to long-term sustainability. By planning change, organizations can maintain stability while embracing new opportunities, ensuring growth, profitability, and relevance in the industry.

Types of Planned Change:

  • Strategic Change

Strategic change refers to long-term, organization-wide transformation aimed at achieving business objectives and sustaining competitiveness. It involves major decisions related to vision, mission, restructuring, mergers, acquisitions, or diversification. Strategic change ensures alignment with the external environment, such as market shifts, technological innovations, or policy changes. It requires strong leadership, careful planning, and commitment from top management, as it directly impacts the direction of the organization. Since it influences culture, structure, and processes, employees must be prepared and guided to adapt. Strategic planned change is essential for survival, growth, and maintaining long-term competitive advantage in dynamic markets.

  • Structural Change

Structural change focuses on modifying the organizational design, hierarchy, roles, responsibilities, and reporting relationships. It aims to improve efficiency, communication, and decision-making by redefining how departments and teams function. Structural planned change may include decentralization, departmental restructuring, flattening hierarchies, or adopting a matrix structure. Such changes are often necessary when an organization grows in size, diversifies operations, or adopts new business models. By restructuring, organizations eliminate duplication, improve coordination, and enhance accountability. Structural change helps align organizational design with strategic goals, ensuring smoother workflow and better adaptability to new challenges in a competitive environment.

  • Technological Change

Technological change involves introducing new tools, systems, software, or machinery to improve efficiency and productivity. It may include automation, artificial intelligence, digital platforms, or upgraded production equipment. Technological planned change is vital for organizations to remain competitive in today’s fast-paced environment. It enhances speed, accuracy, and cost-effectiveness, but often requires employee training and skill development. Resistance is common due to fear of job loss or lack of technical expertise, so proper communication and support are essential. By planning technological changes, organizations ensure smoother adoption, minimize disruption, and stay innovative in delivering better products and services.

  • PeopleCentric Change

People-centric change focuses on improving the behavior, attitudes, and skills of employees. It involves training, leadership development, team building, motivation, and cultural transformation. Since employees are the backbone of organizational success, this type of change ensures they are aligned with new goals and practices. It addresses issues like resistance, communication gaps, and low morale by fostering trust and participation. People-centric planned change enhances adaptability, collaboration, and job satisfaction. By investing in human capital, organizations can create a positive work environment where employees feel empowered and motivated to embrace changes that contribute to overall growth and performance.

Nature of Planned Change:

  • GoalOriented

Planned change is always directed toward achieving specific organizational objectives. It is not random but carefully designed to bring improvement in productivity, efficiency, and competitiveness. Management identifies clear goals, such as adopting new technology, restructuring processes, or enhancing employee performance. Every step of planned change revolves around these targets, ensuring that efforts lead to measurable outcomes. Goal orientation provides direction, reduces wastage of resources, and keeps employees focused on common objectives. This nature of planned change ensures that organizational transformation is purposeful, consistent with long-term strategy, and contributes directly to overall growth and success.

  • Systematic Process

Planned change follows a structured, step-by-step process rather than sudden or unorganized actions. It begins with analyzing the need for change, setting objectives, preparing strategies, implementing actions, and monitoring results. Each stage is carefully designed to ensure smooth transition and minimal disruption. Unlike unplanned change, which is reactive, planned change is proactive and anticipates future requirements. This systematic nature helps organizations manage complexities effectively and reduces uncertainties. It ensures that change efforts are logical, consistent, and easier for employees to understand, thereby increasing acceptance and reducing resistance.

  • FutureOriented

Planned change is focused on preparing the organization for future challenges and opportunities. It anticipates shifts in technology, customer preferences, competition, and regulations. By implementing forward-looking strategies, organizations ensure sustainability and growth. This future orientation makes planned change proactive rather than reactive, allowing businesses to stay ahead of competitors. It encourages innovation, adaptability, and continuous improvement. Employees are guided toward developing skills required for tomorrow’s environment. Thus, the future-oriented nature of planned change ensures organizations remain relevant, resilient, and capable of handling uncertainties in a dynamic business world.

  • Continuous in Nature

Planned change is not a one-time event but a continuous and ongoing process. Organizations operate in an ever-changing environment, where new challenges and opportunities arise regularly. Planned change ensures that adaptation becomes a constant activity rather than an occasional reaction. It emphasizes continuous improvement through monitoring, feedback, and adjustment of strategies. By being continuous, it fosters a culture of learning, innovation, and flexibility. Employees become more open to transformation, reducing fear of change. This nature of planned change ensures organizations remain dynamic, competitive, and better positioned to achieve long-term stability and success.

  • Involves Participation

Planned change requires the active involvement and participation of employees at all levels. It is not limited to top management decisions but includes engaging workers in discussions, planning, and implementation. Participation creates a sense of ownership, reducing resistance and increasing motivation. Employees feel valued and become more committed to achieving desired outcomes. This collaborative nature improves communication, trust, and team spirit. When people contribute ideas and feedback, organizations gain diverse perspectives, making change strategies more effective. Thus, the participative nature of planned change ensures smoother execution and greater acceptance of organizational transformation.

Factors Influencing Change:

  • Organizational Culture

Organizational culture shapes employee attitudes, values, and behavior, influencing how change is perceived and accepted. A flexible, innovative culture supports adaptation, while a rigid, hierarchical culture may resist change. The shared beliefs, norms, and traditions determine openness to new ideas. Leaders must assess the existing culture before implementing changes. Aligning change initiatives with cultural values and promoting awareness, participation, and communication can facilitate smoother adoption and reduce resistance, making culture a critical factor in successful organizational transformation.

  • Leadership Style

Leadership style significantly impacts how change is introduced and managed. Transformational and participative leaders inspire trust, motivate employees, and encourage engagement, easing adoption of new processes. Autocratic or unsupportive leadership often leads to fear, resistance, or confusion. Leaders influence employee perception by modeling desired behavior, communicating vision, and providing guidance. Effective leadership ensures alignment between organizational goals and employee actions. Choosing the right leadership approach is crucial for guiding teams through change, minimizing resistance, and fostering commitment to achieving planned outcomes.

  • Technology Advancements

Technological advancements often drive change within organizations, requiring updates to processes, systems, and skills. Adoption of new technology can improve efficiency, accuracy, and competitiveness, but may face resistance due to fear of job loss or skill gaps. Organizations must provide training, support, and resources to facilitate smooth transitions. The pace, complexity, and relevance of technology influence how quickly employees accept changes. Ensuring that technology aligns with organizational goals and capabilities determines its successful implementation as a driver of planned change.

  • Economic Factors

Economic conditions, such as inflation, recession, or growth, influence organizational change. Companies may need to restructure, reduce costs, or invest in expansion based on economic trends. Budget constraints, market competition, and resource availability shape the scale and pace of change initiatives. Economic pressures can create urgency but also resistance if employees fear layoffs or reduced benefits. Effective planning requires understanding economic conditions, anticipating challenges, and balancing organizational objectives with financial realities to ensure sustainable and feasible change.

  • Political and Legal Factors

Government regulations, policies, and political stability affect organizational change. Compliance with labor laws, environmental standards, taxation, and trade policies may require structural, procedural, or strategic adjustments. Political uncertainties or sudden policy shifts can create risk and resistance within organizations. Change initiatives must consider legal requirements and political contexts to avoid penalties and maintain operational continuity. Organizations that proactively anticipate legal and regulatory influences can implement smoother transitions while protecting employees, resources, and long-term business objectives.

  • Social and Cultural Factors

Societal values, cultural norms, and demographic trends influence how change is accepted within organizations. Employee beliefs, traditions, and social expectations shape attitudes toward new policies, practices, or technology. Misalignment with social or cultural norms can lead to resistance and misunderstanding. Organizations must respect diversity, promote inclusion, and adapt communication strategies to cultural sensitivities. Understanding social and cultural factors ensures that planned changes are relevant, acceptable, and supported, enhancing employee engagement and the effectiveness of organizational transformation.

  • Internal Organizational Factors

Internal factors such as structure, resources, employee skills, and operational efficiency directly affect change. For example, lack of expertise, poor coordination, or inadequate infrastructure can hinder implementation. Internal communication, teamwork, and employee readiness also determine success. Managers must assess strengths and weaknesses, allocate resources effectively, and provide necessary training to ensure smooth transitions. By addressing internal factors, organizations can minimize resistance, reduce disruptions, and increase the likelihood of achieving planned outcomes, making these elements critical in the success of any change initiative.

Process of Planned Change:

  • Recognizing the Need for Change

The first step in planned change is identifying the need for transformation. Organizations must assess internal inefficiencies, declining performance, or employee dissatisfaction, as well as external pressures such as competition, technological advances, or regulatory changes. Recognition involves careful observation, data analysis, and feedback from stakeholders. Without acknowledging the need for change, organizations remain stagnant, risking loss of market relevance. Managers must clearly define the problem and its impact to create urgency. Recognizing the need sets the foundation for all subsequent steps and ensures that change initiatives are purposeful, focused, and aligned with organizational objectives.

  • Setting Objectives and Goals

Once the need for change is identified, clear objectives and goals must be established. These goals provide direction and benchmarks for measuring success. Objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, implementing a new software system may aim to reduce process time by 20% within six months. Clear goals help employees understand the purpose of change and their role in achieving it. They also allow managers to monitor progress and make necessary adjustments. Well-defined objectives reduce confusion, increase commitment, and ensure the change initiative is aligned with organizational strategy and desired outcomes.

  • Planning and Designing the Change

This step involves developing a detailed strategy to implement the change. Planning includes identifying resources, timelines, tasks, roles, and responsibilities. Managers must anticipate potential challenges, risks, and employee resistance, designing strategies to address them. The plan should outline communication methods, training requirements, and feedback mechanisms to ensure smooth execution. Effective design ensures that the change is structured, coordinated, and aligns with organizational goals. Planning also includes establishing metrics for evaluation. By creating a comprehensive blueprint, organizations can minimize disruption, allocate resources efficiently, and ensure all stakeholders are prepared and aware of their responsibilities throughout the change process.

  • Implementing the Change

Implementation is the stage where planned strategies are put into action. Employees are trained, new processes or systems are introduced, and communication channels are actively used to guide the transition. Managers must monitor progress, provide support, and address resistance promptly. Successful implementation requires coordination among departments, adherence to timelines, and reinforcement of desired behaviors. During this phase, leadership plays a crucial role in motivating employees, resolving conflicts, and maintaining focus on objectives. Careful monitoring ensures that the change is adopted effectively, minimizing disruption to operations while maximizing engagement and acceptance across the organization.

  • Monitoring and Evaluating the Change

The final step involves assessing the effectiveness of the change process. Managers must measure outcomes against the defined objectives using performance indicators, feedback, and data analysis. Monitoring identifies gaps, challenges, or unintended consequences that need correction. Evaluation helps determine whether goals were achieved, resources were used efficiently, and employees adapted successfully. Continuous feedback allows for refinement and improvement, reinforcing positive behaviors. By monitoring and evaluating, organizations ensure sustainability and prevent regression to old practices. This step also provides learning for future change initiatives, enhancing the organization’s capacity for adaptation, innovation, and long-term growth.

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.

International Trade Laws Objectives Set 2

  1. The exchange of goods and services are known as …………………………
  • Domestic Trade
  • International Trade
  • Trade
  • None of these.

 

  1. Which of the following is not considered as factors of production?
  • Land
  • Labour
  • Money
  • Capital

 

  1. Trade between two countries is known as ………….
  • External
  • Internal
  • Inter-regional
  • None of Above

 

  1. International Trade is most likely to generate short-term unemployment in:
  • Industries in which there are neither imports nor exports
  • Import-competing industries
  • Industries that sell to domestic and foreign buyers.
  • Industries that sell to only foreign buyers

 

  1. Free traders maintain that an open economy is advantageous in that it provides all the following except:
  • Increased competition for world producers
  • A wider selection of products for consumers
  • Relatively high wage levels for all domestic workers
  • The utilization of the most efficient production methods

 

  1. Which of the following is not a benefit of international trade?
  • Lower domestic prices
  • Development of more efficient methods and new products
  • A greater range of consumption choices
  • High wage levels for all domestic workers

 

  1. Which is not an advantage of international trade:
  • Export of surplus production
  • Import of defence material
  • Dependence on foreign countries
  • Availability of cheap raw material

 

  1. Trade between two countries can be useful if cost ratios of goods are …………..
  • Equal
  • Different
  • Undetermined
  • Decreasing

 

  1. Foreign trade creates among countries ………………
  • Conflicts
  • Cooperation
  • Hatred
  • Both a. and b.

 

  1. All are advantages of foreign trade except ………….
  • People get foreign exchange
  • Cheaper goods
  • Nations compete
  • Optimum utilization of countries’ resources

 

Q.2. Fill in the blanks.

  1. International Trade means trade between …………………. (Provinces/ Countries/ Regions)
  2. Two countries can give from foreign trade if ………… are different. (Effect/ Tariff/ Cost)
  3. ………….. encourages trade between two countries. (Different tax system/Reduced tariffs/ National currencies)
  4. Drawback of protection system is ……… (Consumers have to pay higher prices/ Producers get higher profits/ Quality of goods may be affected/ All above)
  5. ………….. is a drawback of free trade. (Prices of local goods rise/ Govt. looses incomes from custom duties/National resources are underutilized)
  6. International trade is possible primarily through specialization in production of …… goods. (All/ One/ Few)
  7. A country that does not trade with other countries is called …… country. (Developed/ Closed/ Independent)
  8. Policy of Protection in trade ……… (Facilitates trade/ Protects foreign producers/ Protects local producers/ Protects exporters)
  9. The largest item of Indian import list is ……….. (Consumer goods/ Machinery/ Petroleum/ Computers)
  10. Trade between two states in an economy is known as …… (External/ Internal/None)

 

SET 2

Q.1. Multiple Choice Questions.

  1. Who among the following enunciated the concept of single factoral terms of trade?
  • Jacob Viner
  • G.S.Donens
  • Taussig
  • J.S.Mill

 

  1. ‘Infant industry argument’ in international trade is given in support of:
  • Granting Protection
  • Free trade
  • Encouragement to export oriented small and tiny industries
  • None of the above

 

  1. Terms of trade that relate to the Real Ratio of international exchange between commodities is called:
  • Real cost terms of trade
  • Commodity terms of trade
  • Income terms of trade
  • Utility terms of trade

 

  1. The main advantage in specialization results from:
  • Economies of large-scale production
  • The specializing country behaving as monopoly.
  • Smaller Production runs resulting in lower unit costs.
  • High wages paid to foreign workers.

 

  1. Net export equals ……
  • Export * Import
  • Export + Import
  • Export – Import
  • Exports of service only

 

  1. A tariff ………………….
  • Increase the volume of trade
  • Reduces the volume of trade
  • Has no effect on volume of trade
  • Both a. and c.

 

7. Terms of Trade of developing countries are generally unfavourable because …….

  • They export primary goods
  • They import value added goods
  • They export few goods
  • Both a. and b.

 

  1. Terms of Trade a country show ……………
  • Ratio of goods exported and imported
  • Ratio of import duties
  • Ratio of prices of exports and imports
  • Both a. and c.

 

  1. Terms of trade between two countries refer to a ratio of …..
  • Export prices to import prices
  • Currency values
  • Export to import
  • Balance of trade to Balance of payments

 

10. Rich countries have deficit in their balance of payments ……..

  • Sometimes
  • Never
  • Alternate years
  • Always

 

Q.2. Fill in the blanks.

  1. BOP means balance of Receipts and payments of …… (all banks/ State bank/ Foreign exchange by a country/ Government)
  2. Favourable trade means exports are ……. than imports. (More/ Less/ Neutral)
  3. Net barter terms of trade is also known as …. Terms of trade.(Commodity/ Income/Utility)
  4. ….. is not a factor affecting TOT. (Reciprocal demand/ Size of demand/ Price of demand)
  5. If tariff is higher, then the imports will …… (Increase/ Decrease/ Same as before)
  6. ……. has given the concept of reciprocal demand. (Mills/ Adam/ Ricardo)
  7. ……… is the curve, which expresses the total demand for one good (imports) in terms of the total supply of another good (exports). (Offer/ Official / Corporate)
  8. Balance of payment is prepared by an economy ……. (Yearly/ Monthly/ Weekly)
  9. …….. kinds of accounts are included in BOP. (2/ 3/4)
  10. …….is not a type of disequilibrium in BOP. (Cyclical/ Seasonal/ Frictional/ Disguised)

 

SET 3

Q.1. Multiple Choice Questions.

  1. The first classical theory of International Trade is given by …………………..
  • Keynes
  • Adam Smith
  • Friedman
  • Heckscher-Ohlin

 

  1. In classical theory of International Trade, the exchange of goods and services takes on the basis of ………….. system?
  • Barter
  • Money
  • Labour
  • capital

 

  1. If capital is available in large proportion and labour is less, then that economy is known as ……………..
  • Capital Intensive
  • Labour Intensive
  • Both a. and b
  • None of above

 

  1. In Heckscher Ohlin theory, what is assumed to be same across the countries?
  • Transportation cost
  • Technology
  • Labour
  • capital

 

  1. Opportunity cost is also known as ……………………
  • Next Best alternative
  • Transformation cost
  • Both a. and b
  • None of above.

 

  1. Factor proportions theory is also known as the
  • comparative advantage theory
  • laissez faire theorem.
  • HeckscherOhlin theorem
  • product cycle model.

 

  1. Trade between two countries can be useful if cost ratios of goods are:
  • Equal
  • Different
  • Undetermined
  • Decreasing

 

  1. According to Hecksher and Ohlin basic cause of international trade is:
  • Difference in factor endowments
  • Difference in markets
  • Difference in political systems
  • Difference in ideology

 

  1. The theory explaining trade between two countries is called:
  • Comparative disadvantage theory
  • Comparative cost theory
  • Comparative trade theory
  • None of the above

 

  1. David Ricardo presented the theory of international trade called:
  • Theory of absolute advantage
  • Theory of comparative advantage
  • Theory of equal advantage.
  • Theory of total advantage

 

Q.2. True or False.

  1. Absolute advantage theory is given by Adam Smith.

True

  1. Ricardo has supplemented Absolute advantage theory.

 True

  1. Heckscher and Ohlin have given comparative cost advantage theory of International Trade.

False

  1. Multilateral trade means one country comes into trade with more than one country.

True

  1. Opportunity cost means unforgiving cost.

False

  1. Modern theory of International Trade is given by Ricardo.

False

  1. 2×2×2 model of International Trade is known by Heckscher Ohlin model.

True

  1. Transformation cost is also known as opportunity cost.

True

  1. Gravity model of trade was first used by Jan Tinbergen.

True

  1. Adam Smith advocated free trade and specialized.

True

 

Set 4

Multiple Choice Questions.

  1. GATT was made in the year ………………..
  • 1945
  • 1947
  • 1950
  • 1951

 

  1. The new world Trade organization WTO., which replaced the GATT came into effect from____
  • 1ST January 1991
  • 1st January 1995
  • 1st April 1994
  • 1st May 1995

 

  1. 5 banks of BRICS nations have agreed to establish credit lines in ….. currencies.
  • Legal
  • Plastic
  • Crypto currency
  • National

 

  1. Where was the 11th meeting of BRICS Trade Ministers held from 13 Nov 2019 – 14 Nov 2019?
  • Shanghai
  • Beijing
  • Tokyo
  • Brasilia

 

  1. What is the name of the SAARC satellite to be launched on May 5, 2017?
  • South Asia Satellite
  • South Asian Association Satellite
  • South East Asia satellite
  • SAARC satellite

 

  1. Full form of SAFTA is ……………………..
  • South Asia Free Trade Agreement
  • South Asia Foreign Trade Agreement
  • South Asia Framework Trade Agreement
  • Both a and b

6. Which of the following commitments has not been made by India to WTO?

  • Reduction in tariffs
  • Increase in quantitative restrictions
  • Increase in qualitative restrictions
  • Trade related Intellectual Property Rights

 

  1. The European Union was formally established on …..
  • November, 1993
  • April, 1995
  • January, 1997
  • May, 1996

 

8. SAARC was established in …..

  • 1980
  • 1985
  • 1990
  • 1995

 

  1. NAFTA came into effect in …..
  • 1990
  • 1994
  • 1998
  • 2004

10. The dominant member state of OPEC is ……………..

  • Iran
  • Iraq
  • Kuwait
  • Saudi Arabia

 

Q.2. Fill in the blanks.

  1. Headquarter of WTO is in ………….. Geneva/USA/Germany.
  2. Before WTO, ……………… was working instead of that. GATY/ GATR/ GATT.
  3. …………….. round negotiations initiated the establishment of WTO. Uruguay/ Urdun/ Urbuny .
  4. India had joined WTO in the year …………. (1995/ 1996/ 1997)
  5. In …………….. , SAARC was established. (1985/ 1986/ 1987)
  6. The first SAARC summit was organized at …….. (Dhaka/ Kathmandu/ Nepal)
  7. ……..is not a country in SAFTA. (India/ Nepal/ Pakistan/ USA)
  8. ……… countries are member of OECD. (34/ 35/ 36)
  9. ………… is not a country under OECD. (Norway/ Canada/ China)
  10. ………….. are the member states of European Union. (28/ 29/30)

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.

General principles of Stress Management

  1. Self-knowledge

    Self-knowledge appears as the first principle, because most of the others build on it. It involves knowing your capabilities and your limits, your personal temperament and typical coping style, and your values and goals.
    Aspects of self-knowledge
    Are you what Hans Selye calls a racehorse, or are you a turtle?. Racehorses thrive on stress and are only happy with a vigorous, fast-paced lifestyle. Turtles require peace, quiet, and a generally tranquil environment. These are of course extremes – people are usually somewhere in between.

    What are your values, what matters to you? Though many aspects will be shared with others in your social group, every person has a unique system of values and goals.
    Everyone has certain abilities – and limits. Do you recognise your abilities and make the most of them? Do you also acknowledge your limits and know when to stop?

    Why knowing yourself is important to stress management
    You may feel comfortable with some of your characteristics, less happy with others. In either case, to effectively manage stress you need to be aware of your own optimum stress level and coping style, as well as the goals and values that guide your reactions.
    Everyone has their own temperament, style of managing stress, and value system. You need to develop strategies relevant to your personal style and compatible with your personal values, otherwise you are not likely to use them.
    Developing self-knowledge
    How can you become more aware of your coping style and optimum stress level? Here are some suggestions.
    Identify your typical stress triggers. What situations do you typically react to? Keep a log for a few weeks.

    You are the best intuitive judge of your optimum stress level. Observe what your body is doing – note your typical stress signs.

    Observe how you typically cope with problems. What works for you? What do you tend to do that is unhelpful?

    There are some strategies to help you identify your values and goals in Chapter Nine of GoodStress. Use these to check out your preferences, values and standards. Are they realistic and appropriate? Have you thought them through for yourself?
    Completing rational self-analyses will help you identify the underlying values that guide your reactions to specific events and circumstances.

    2. Self-acceptance and confidence

    Self-acceptance and confidence are closely related concepts. One builds on the other. Being able to accept yourself as you are, free of any demand that you be different, provides the basis for confidence in your abilities. Confidence, in turn, will enable you to take risks, try new things, and direct your own life.
    Accepting yourself
    To accept yourself is to acknowledge three things: (1) you exist, (2) there is no reason why you should be any different from how you are, and (3) you are neither worthy nor unworthy.

    Acknowledgment that you exist is probably straightforward. It is the other two parts that most people find hard to grasp.
    Self-acceptance involves rejection of any demand that you be different. You may sensibly prefer to be different. You may decide it is in your interests to change some things. But keep the desire to change as a preference. Instead of believing that you have to change, see change as a choice.
    Do not attempt to measure your selfor set some kind of valueon yourself. Self-acceptance is radically different to self-esteem. Self-esteem is based on the idea that you are a goodor worthwhileperson. Worthwhileness requires some criteria, like how well you perform, or the idea that you are worthwhile simply because you exist. Self-acceptance, on the other hand, is based on the idea that you dont have to be goodor worthwhile. In fact, there is no need to evaluate yourself at all! Instead of evaluating your self, you use your energy and time to evaluate (1) your behaviour, and (2) the quality of your existence.
    Evaluating your behaviour is a good idea. You can check whether it helps you enjoy your life and achieve your goals. It is also a good idea to evaluate the quality of your existence. Your enjoyment of life is surely important – more important than worrying about whether you are a worthwhileperson.
    Having confidence in your abilities
    Self-knowledge and self-acceptance are preconditions for confidence. To have confidence in your abilities involves three things. First, you know what you can and cant do. Second, you are prepared to try things to the limit of your ability. And third, you regularly work at extending your capabilities.
    Having confidence in your abilities is different to having confidence in your self. Self-confidence implies perfection – that you, as a total person, are able to do everything well. This is unrealistic and grandiose.

    Having confidence in your abilities is more realistic. Instead of talking about self-confidence, follow the advice of Paul Hauck and talk about social confidence, work confidence, driving confidence, house-care confidence, examination confidence, relationship confidence, and so on. In other words, develop confidence in specific abilities rather than in your total self.
    In practice, ability-confidence would involve behaviours like the following:
    Doing things without demanding you succeed, and viewing mistakes as opportunities for learning. Confidence grows out of the attempt, the doing, rather than from the result.
    Evaluating your actions and performances in terms of how they help you reach your goals – not what they prove about you as a person.
    Taking calculated risks with important activities such as choosing a career, changing jobs, or starting a new relationship.
    Persevering – not giving up when you do less well than you want; rejecting any belief that everything should come easy; and accepting that many good things involve overcoming obstacles, setbacks, and persisting over a period of time.
    Learning from your experiences – trying something, analysing your experience, seeing where you went wrong and working out what you can do to improve your abilities.
    Why these are important to stress management

    If you are prone to rating your total self, you may want to avoid looking closely at your actions because to do so may lead to self-downing. Paradoxically, self-acceptance is more likely than self-evaluation to lead to constructive change. Confidence in your abilities will free you to take risks, try new experiences and learn new lessons.
    If you can accept yourself with your unique characteristics and preferences, you will be less likely to live your life to suit other people.
    As Martin Seligman has pointed out, there are limits to how much we can change ourselves. Human beings are not perfectible. If you can accept imperfection in yourself, you are less likely to engage in dangerous behaviour striving for the unattainable.
    Developing self-acceptance and confidence
    Self-acceptance as an alternative to self-evaluation is not an easy concept to grasp. The tendency to self-evaluation seems to be built in to human beings, and the self-esteem concept is pervasive in our thinking and culture.
    Think through the philosophy of self-acceptance. Read about it. Write down your thoughts on it. Talk about it with others (many people will argue against the concept, which will give you the opportunity to hone your thinking!).

    Finally, and most important, behave like a self-accepting and confident person. As far as possible, practice living in accordance with your preferences, values and standards. Say what you believe, be open and honest as to who you are (but do this appropriately with people significant to you, and take into account their preferences and feelings). Treat yourself to things you used to think you did not deserve. Try things you used to be afraid to do – without any demand that you succeed.

    3. Enlightened self-interest

    The ability to act in your own interests follows on from self-acceptance and confidence. As we shall see, it is also important to take into account the interests of others. The principle of enlightened self-interest takes into account both parts:
    You place your own interests first.
    You keep in mind that your own interests will be best served if you take into account the interests of others.
    Human beings are fundamentally self-interested
    Notwithstanding any precepts that say we shouldbe otherwise, human beings appear to be intrinsically concerned first with their own welfare.

    Hans Selye has argued that the desire to maintain oneself and stay happy is the most ancient – and one of the most important – impulses that motivates living beings. All living beings protect their own interests first of all. Selye points out that this begins with our basic biological make-up, in that the various cells in our bodies only cooperate with each other to ensure their own survival.

    Human beings are also motivated by social interest
    Selye has pointed out, though, that we are also strongly motivated by altruistic feelings. As well as self-interest, we also possess social interest – the wish to ensure that the social system as a whole survives and develops.
    How is that two apparently contradictory tendencies can co-exist? The answer is that we help others in order to help ourselves. In other words, our self-interest is enlightened.
    It appears that like self-interest, social interest is also inherent within human beings – both have biological roots. Collaboration between body cells promotes the survival of each individual cell and enables the total organism to function.
    In effect, individual interests are best served by mutual cooperation. Accordingly, self-interest without social interest is misguided. So is social interest without self-interest. Always putting others first leads to resentment or a martyr attitude. People who believe they are acting purely in the interests of others are dangerous. By denying (to themselves) that their own self-interest is involved, such people may justify all types of manipulative and controlling behaviour toward others.

    You are both self-interested and socially-interested. This dual tendency is built in to your very being and begins with your basic biology. By accepting this about yourself, you will be able to do a better job of acting in your own interests – in an enlightened manner.
    What is it to be enlightened?
    The word enlightenedhas several related meanings. It is humanitarian – charitable, liberal, and idealistic; and at the same time utilitarian – useful, beneficial, and practical.
    Can you see how merging an enlightened attitude with innate self-interest can apply at all levels – to yourself, to your family, to your town or city, to your country, and to the world as a whole? Consider the effect on this planet if every person acknowledged their self-interest and then practiced it in an enlightened manner. What if every country based its external and foreign policies on the humanitarian and practical principle of enlightened self-interest?
    Why enlightened self-interest is important to stress management
    If human beings did not have an inherent will to protect themselves and further their own interests, they would not survive. If you dont attend to your own interests, who will? Knowing what is in your interests will help you get what is best for you and avoid what is harmful. It will keep you moving toward your goals – and ensure that your goals are the right ones for you.

    But you had better simultaneously take into account the interests of others. Getting people to have positive feelings toward you is a good idea. They will be more likely to treat you well and less likely to harm you. Contributing to their welfare will encourage them to contribute to yours. And contributing to the development and survival of the society in which you live will mean a better environment in which to pursue your interests.
    If you acknowledge that self-interest is inherent in your nature, you will feel less guilty about looking after yourself. If you acknowledge that altruistic behaviour is in your interests, you will be more likely to cooperate with others. If you do both, everyone gains.
    Developing enlightened self-interest
    Begin by practicing enlightened behaviours. Here are some ideas to get you started now:

  • Go out of your way to show positive feelings towards others – gratitude, respect, trust – which in turn will arouse goodwill from them.
  • Choose some new activities in various life areas – work, family, leisure – that will bring goodwill.
  • At the same time, act assertively. Ask for what you want, say Noto what you dont, and tell others (when appropriate) what you think and how you feel.
    Make a point of doing something just for yourself each day for a while.
  • Until enlightened self-interest becomes part of you, consciously seek to get more of what you want while facilitating the interests of the other people in your world.
  1. Tolerance for frustration and discomfort

    The ability to tolerate frustration and discomfort is central to stress management. High tolerance will keep you from overreacting to things you dislike. It will help you tackle problems and issues rather than avoid them. It will enable you to take risks and try new experiences.
    What is high tolerance?
    As we shown in Chapter Four of GoodStress, low tolerance for frustration and discomfort is a key cause of unnecessary distress. It arises from beliefs like: Life should not be hard, it is awful and I cant stand it when it is hard; so I must avoid pain, difficulties and frustrations.
    High tolerance, on the other hand, means accepting the reality of frustration and discomfort, and keeping their badness in perspective.
    To accept frustration and discomfort is to acknowledge that, while you may dislike them, they are realities. They exist, and there is no Law of the Universe says they shouldnot exist (though you may prefer they not). You expect to experience appropriate negative emotions like concern, remorse, regret, sadness, annoyance, and disappointment. But you avoid exaggerating these emotions (by telling yourself you cant stand them) into anxiety, guilt, shame, depression, hostile anger, hurt, or self-pity.
    To keep frustration and discomfort in perspective is to regard them as unpleasant rather than awful. You dislike rejection, pain, bad health, financial insecurity and other unwanted circumstances – but you believe that you can cope with the discomfort when they happen to you.
    Why is high tolerance important to stress management?
    Low tolerance creates distress by causing you to overreact to discomfort. It may lead to secondary problems (having a problem about having a problem) where you react to your own symptoms and end up with additional symptoms. You might for example, get angry and then feel guilty, or become depressed because you feel anxious. Low tolerance also gets in the way of using stress management strategies like changing your diet, exercising, managing your time or acting assertively.
    High tolerance, on the other hand, will help you in many ways. You will be:
    Less likely to create secondary problems by overreacting to unwanted events and circumstances.
    More willing to experience present discomfort to achieve long-term goals and enjoyment.
    Prepared to take reasonable risks.
    More able to assert yourself appropriately with other people.
    Less likely to put off difficult tasks and issues, including personal change.
    How to raise your tolerance for discomfort and frustration
    Know when you are engaging in low-tolerance behaviour designed to avoid discomfort or frustration. Keep a log of such behaviour for several weeks or longer. Watch for things like:

  • avoiding uncomfortable situations;
  • overusing drugs or alcohol;
  • compulsive gambling, shopping, exercising, or bingeing on food;
  • losing your temper;
  • putting off difficult tasks.

The technique of exposure is the best way to increase your tolerance. Make a list of things you typically avoid – situations, events, thoughts, risks and so on. Commit yourself to face at least one of these each day. Actively confront discomfort by going into uncomfortable situations. Instead of trying to get away from the frustration or discomfort as you normally would, stay with the discomfort until it diminishes of its own accord.
You can prepare yourself to cope with the discomfort by using rational self-analysis, imagery, and the blow-up technique. Afterwards, do a catastrophe scale to get your reaction to the discomfort into perspective. (These techniques are described in GoodStress and in many other REBT books).

  1. Long-range enjoyment

    Like most people, you probably want to enjoy life. As well as avoid distress, you want to experience pleasure. And you probably want to get your pleasure now, not tomorrow. As Alice said in Through the Looking Glass: It must come sometimes to jam today. But there are times when it is in our interests to forgo immediate pleasure in order to have greater enjoyment in the longer term.
    What is long-range enjoyment?
    There are two parts to this principle. You seek to get enjoyment from each of your present moments, rather than always putting off pleasure till tomorrow, or dwelling on things that have happened in the past.
    However, to keep on enjoying your present moments you will sometimes choose to postpone pleasure. You may wish to drink more alcohol – but you restrict your intake now so your body will still let you drink in ten years time. Or you wish to buy a new stereo, but instead you save the money for an overseas trip. This is the long-termpart.
    The principle can be summed up as follows: live for the present with an eye to the future. In other words, seek to get as much pleasure and enjoyment as you can in the present – while taking into account the desirability of enjoying your life in the long term.
    The concept is not new
    The underlying thinking behind long-range enjoyment has been around for a long time. The Greek philosopher Epicurus (341270 BC) proposed the idea that pleasure is the supreme good and main goal of life – and that only through self-restraint and moderation can people achieve true happiness.
    John Stuart Mill, British philosopher and economist, argued that an act is right if it brings pleasure, and wrong if it brings pain. But he introduced the caveat that the ultimate value is the good of society, and the guiding principle of individual conduct is the welfare of the greatest number of people.
    Developing long-range enjoyment
    Learn to calculate gains and losses. Weigh the short-term pleasurable effects of an action against its possible longer-term negative effects. Make sure that immediate gain doesn’t set you up for future pain – as with overindulgence in alcohol. If in doubt, do a benefits calculation.
    Weigh short-term discomfort and frustration against the prospect of greater and more enduring comfort in the long term. To start exercising will be more uncomfortable than watching television – but later you will not only feel the health benefits, you will even begin to enjoy the exercise itself.
    The strategy of paradoxical behaviour will help you put the philosophical change into action. Practice deliberately postponing gratification in order to increase your tolerance for frustration. List a few things you could go without and earmark the money you save for something you would really like. Reduce your intake of alcohol, caffeine or fatty foods, and reward yourself with an occasional special treat you would otherwise see as an indulgence. Be creative – what other ideas for practicing long-range enjoyment can you come up with?
    By now you will probably see that many of the twelve principles are interdependent. To delay gratification involves tolerating frustration. Sensible long-range enjoyment involves enlightened self-interest and moderation.
    To sum up
    If you always postponed your enjoyment till tomorrow, you would never enjoy yourself. But, if you always lived just for the present moment, your happiness and stress management in the future would eventually be compromised. Live your life with the goal of getting as much enjoyment as possible both now and in the future.
    1993.

    6. Risk-taking

    Human beings, by nature, seek safety, predictability, and freedom from fear. But humans also pursue risk. A totally secure life would be a boring one. To grow as a person and improve your quality of life means being prepared to take some chances.
    The principle

    What we are talking about is a willingness to take sensible risks in order to get more out of life and avoid the distress of boredom, listlessness and dissatisfaction. Here are some important areas of risk-taking that relate to stress management:

  • Learning new things which may challenge existing beliefs.
  • Tackling tasks which have no guarantee of success.
  • Trying new relationships.

Doing things that risk the disapproval of other people.
How is risk-taking relevant to stress management?
Risk-taking is necessary for self-knowledge. To discover your limits, you need to take some risks and try yourself out. You can open up fresh opportunities to increase pleasure and avoid boredom.
Problem-solving means risking solutions that may backfire. To act assertively is to risk disapproval or rejection. Maintaining a support system involves trusting and opening up to other people.
Finally, experimenting with different activities to discover what you like and dislike will increase your self-knowledge and help you clarify your goals and values.
Increasing your willingness to take risks
Exposure is a key technique for practicing risk-taking. Develop a list of things you would like to try, such as:

  • Asking someone for something – like a date or favour – where there is a chance of rejection.
  • Doing something where there is a chance others will disapprove – for example, speaking up and telling a group of people what you think.
  • Trying something where there is no guarantee of success.
  • Put one item a day into practice. As you do so, remind yourself that the discomfort involved is not intolerable, and that staying with it will gradually increase your tolerance.

The benefits calculation can help you make rational decisions about the usefulness of risks you are considering.
You can prepare yourself for taking risks and cope with the discomfort involved using rational self-analysis, coping rehearsal, the blow-up technique, and role-playing.

7. Moderation

Sensible risk-taking recognises the innate human desire for safety and security. The principle of moderation will help you avoid extremes in thinking, feeling, and behaving.
Why moderation is important to stress management
Extreme expectations – too high or too low, will set you up for either constant failure or a life of boredom.
Addictive or obsessional behaviour can take control of you, creating new distress. Unrestrained eating, drinking or exercising will stress your body and lead to long term health complications.
Obsessive habits in areas as diverse as your work or your sexual behaviour can damage relationships as well as stress your body.
The principle of moderation
Taking a moderate approach to your life starts with your ultimate goals and ranges through to your daily activities.

You need to develop long-term goals, short-term objectives, and tasks that will challenge and move you on. But it is equally important they are potentially achievable and do not set you up for failure and disillusionment.

If your goal, for example, is to maintain your weight at a certain level, ensure you set that level appropriate for your age and other personal factors. Avoid any tasks and activities that are extreme – like a diet that provides massive weight loss in a short time. Otherwise, not only will you damage your health, but eventually the weight is likely to go back on (probably worse than it was before), leaving you with a feeling of hopelessness. The best way to keep to an appropriate weight without stressing the body is not to go on a radical diet, but rather to moderate eating and drinking in the long-term.
This applies in most areas of life. Throw yourself into your work, play, exercise and sexual life – but avoid the stress of over-involvement. Moderate, too, your self-help work – commit yourself to personal change, but without obsessiveness.
Note that moderation does not exclude risk-taking. In fact, moderation will help you avoid taking security too far. But you can take risks without being foolhardy.
Developing a moderate approach to life

Identify any areas of your life where you tend to behave excessively – eating, exercising, sexual activity, using your computer, and so on. Note when you are demanding full satisfaction of your urges, or catastrophising about the frustration involved in restraint. Keeping a log will help you do this.

Use the strategies of exposure and paradoxical behaviour to get into action. Set up a list of tasks, sorted according to difficulty, which will give you practice in behaving moderately. In advance, set limits in each of these areas, and commit yourself to keeping within those limits.
Handle your frustration using rational self-analysis. The benefits calculation will help you decide what areas of your life you are best to moderate. Finally, if you are unable to change behaviour which has become addictive, seek professional help.

8. Emotional and behavioural responsibility

As we saw in Part One, people who see their emotions and behaviours as under their control are less prone to distress than people who see themselves as controlled by external forces. The principle of responsibility can help you take charge of your emotions, your actions, and in turn your life. It involves taking responsibility for (1) what you feel, and (2) how you act.
To be emotionally responsible is to believe that you create your own feelings in reaction to what life throws at you. You avoid blaming other people – your parents, partner, boss, or anyone else – for how you feel.
Behavioural responsibility means accepting that you cause your own actions and behaviours, and are not compelled to behave in any particular way.

The inner-controlled person
An inner-controlled person can be identified by characteristics like the following:

  • Uses language – I think that or I would like you to rather than Everyone knows that or You should.
  • Tends to be assertive when relating to other people, rather than passive or aggressive.
  • Gets on with life now – rather than dwelling in the past or dreaming about the future but doing nothing.
  • Takes setbacks in their stride – rather than catastrophising or bemoaning fate.
  • Has a problem-solving approach – when things go wrong, looks for possible solutions.
  • Does not believe in luck- believes that action and the application of skill is what makes things happen, rather than luck or fate.
  • Limits to emotional and behavioural responsibility

While your emotions are mainly caused by what you believe, there are some exceptions. Biochemical changes, for example, can lead to emotional changes. (How you react to biochemical changes, though, will still depend on how you view what is happening in your body).
While you can, largely, control your thoughts, it is unlikely that anyone could do so perfectly. Expecting flawlessness will only lead to discouragement and self-downing.
While you are largely responsible for the consequences of your actions, some outcomes will be outside your control. If, for example, you say Noto a request, the other person may be disappointed – an appropriate reaction. You would be somewhat responsible, in that your Nowas the trigger. But what if they became clinically depressed – an inappropriate over-reaction? That would be their responsibility, not yours. You have no control over whether people choose to view your actions in ways that are rational or self-defeating.

Finally, an important point. Dont fall into the trap of blaming yourself because you are responsible for what you feel and do. Blame and responsibility are not the same thing. Blameis moralistic. It seeks not only to identify who may be the cause of a problem, but also to damn and condemn them.
Responsibility, on the other hand, is practical. It seeks either to identify a cause so it can be dealt with; or to identify who needs to take action for the problem to get solved – irrespective of who or what causedit. Responsibility is concerned not with moralising, but with finding solutions.
Why responsibility is important to stress management
Suzanne Kobasa has conducted research on, as she calls them, hardypeople – people who thrive on stress rather than become sick. A key characteristic of such people is their belief that they are in control of their lives. Hardy people generally have better physical and mental health – they are less affected by the ageing process, recover faster from medical episodes such as a heart attack or surgery, and are less likely to suffer from depression and anxiety.

If you take responsibility for your feelings and behaviours, you will avoid making yourself a victim or over-reacting to what other people say or do. You will be able to change your own feelings even though the world does not change to suit you. Finally, you will have confidence in your ability to handle your feelings, whatever happens – freeing you to take risks and try new experiences.

Developing responsibility
Use rational self-analysis to identify and dispute any irresponsible thinking.
Make a list of things you do that show irresponsibility – unassertiveness, dwelling in the past, catastrophising, drifting with problems hoping something will come along. Use the technique of paradoxical behaviour to act differently in these areas, taking responsibility for how you feel and behave.

9. Self-direction and commitment

Emotional and behavioural responsibility lay the basis for taking control over your life and committing yourself to action and involvement.

Self-direction
Taking responsibility for the direction of your life involves:

  • Choosing your goals, making sure they are your own.
  • Actively pursuing your goals, rather than waiting and dreaming.
  • Making your own decisions, even though you may seek opinions from others.
  • Choosing to work at managing stress, developing your potential, and changing things you dislike, rather than just drifting along or expecting a miracle to occur.
  • Not condemning any person (including yourself) when things go wrong in your life, even though you or someone else may be responsible; but rather identifying any causes and looking for solutions.

Self-direction does not mean open opposition and non-cooperation with others. You can keep your self-direction on the right track by balancing it with other principles such as enlightened self-interest, long-range enjoyment, moderation, and flexibility.
There are several prerequisites for self-direction. First, you need to see what happens to you as influenced (though not totally controlled) by what you do. As we saw earlier, inner-controlled people tend to be assertive, get on with life, and do not see themselves as victims. Second, to direct your own life you need to know what you want to do with it. Have you clarified your goals and values? Chapter Nine will show you how to do this.

Commitment
Commitment follows on from self-direction. There are two elements:
Perseverance. The ability to bind yourself emotionally and intellectually to courses of action. This involves a willingness to do the necessary work (and tolerate the discomfort involved) in personal change and goal-achievement.
Deep involvement. The ability to enjoy and become absorbed in (but not addicted to) other people, activities and interests as ends in themselves – where you get pleasure from the doing, irrespective of the final result. This may include such areas as work, sports, hobbies, creative activities, and the world of ideas.

Limits to self-direction and commitment
Some of what happens to you will be out of your control, and this will place limits on how much you can influence them. Remember, though, that how you react is your responsibility.
Further, while self-direction implies independence, it recognises some limits in the interests of mutual support and cooperation with others.
If carried too far, commitment can become obsession. Dont get so involved with one or a few things that other areas of your life suffer. Avoid, for example, allowing work to stop you from any recreational activity, or recreation to leave no time for relationships.
Why self-direction and commitment are important to stress management
Avoiding decisions or action creates tension and leaves problems unsolved. Action and persistence are needed to break unwanted patterns of behaviour and achieve personal change. A life of superficial involvements would lead to boredom and dissatisfaction.
Commitment is required for confidence to develop. You dont, for example, develop confidence in playing a musical instrument unless you commit yourself to practicing with it.

Self-direction can affect your health. Salvatore Maddi, from the University of Chicago, ran courses for men and women in management aimed at increasing their sense of control. These led to lower anxiety, depression, obsessiveness, headaches, insomnia, and blood pressure, as well as more job satisfaction – results which lasted well beyond the end of the courses.

Aiming for your own goals rather than having others direct your life will affect how you implement many of the strategies in Part Three of Good Stress. It will determine how you manage your time. It will help you assert yourself. You will also maintain more stimulation and variety in your life by doing the things you want.
Developing self-direction and commitment
Make a list of things you do that indicate lack of self-direction. Watch for behaviours like asking for permission, avoidance due to fear of disapproval, unnecessarily seeking other peoples opinions, and the like. Select one item each week and deliberately act differently, in line with what you would rather be doing.
Use rational self-analysis and imagery to cope with the discomfort involved.
Make a decision now to develop one new interest in your life in which you will get absorbed. Commit yourself to taking some steps toward it over the next week or so.

10. Flexibility
Flexible people can bend with the storm rather than be broken by it. They know how to adapt and adjust to new circumstances that call for new ways of thinking and behaving. They have resilience – the ability to bounce back from adversity.

The principle of flexibility
To be flexible is to be open to change in yourself and in the world. As circumstances alter, you are able to modify your plans and behaviours. You are able to adopt new ways of thinking that help you cope with a changing world. You are able to let others hold their own beliefs and do things in ways appropriate to them while you do what is right for you.
Flexibility in thinking means:

  • Your values are preferences rather than rigid, unvarying rules.
  • You are open to changing ways of thinking in the light of new information and evidence.
  • You view change as a challenge rather than a threat.

Flexibility in behaviour means:

  • You are able to change direction when it is in your interests.
  • You are willing to try new ways of dealing with problems and frustrations.
  • You can let others do things their way.
  • You avoid distressing yourself when others think or act in ways you dislike.

Why flexibility is important to stress management
Flexibility aids survival in a changing world. The world, as it always has, continues to change – but the pace of change is increasing. If there is not a corresponding change in attitudes there will be distress. We see this in the so-called generation gap. Parents who are inflexible find it harder to cope when their children behave in ways unthinkable in their generation. We can cope better when we see change as a challenge rather than a threat. As Suzanne Kubosa has found, this attitude is one of the characteristics of hardiness.
Flexibility leads to better problem-solving. As Roger Von Oech states, there are times we need to step outside what we know or usually do and look at a problem from new angles in order to find new solutions. Even negative events like being made redundant – can create opportunities to step outside.
Flexibility will make it easier to change your goals to suit new circumstances. Getting older or sustaining a disability, for example, usually requires one to adapt to significant lifestyle changes.
Flexibility will help you break out of boring routines and maintain stimulation and variety in your life. It will also help you manage your time better, by enabling you to change your plans to suit changing situations.
Developing flexibility
Use rational self-analysis to identify and change inflexible thinking. Watch especially for any demanding shouldsand musts.
Expose yourself to new ways of looking at things. Read books that adopt positions other than yours, talk to people with differing views, watch movies you would normally not bother with.
Practice flexibility by rearranging your office or home furniture, hanging some new pictures, visiting places you have never been.
Get into the habit of pausing before you take action on a problem and look at ways of solving it different to what you would normally do. In other words, attempt to act out of character on a regular basis.

11. Objective thinking

Flexibility and openness, as well as the other principles, require freedom from ways of thinking that are narrow-minded, sectarian, bigoted and fanatical; or that rely on uncritical acceptance of dogmatic beliefs or magicalexplanations for the world and what happens in it.
Objective thinking is scientific in nature. There are four aspects – it is (1) empirical, (2) logical, (3) pragmatic, and (4) flexible.
Objective thinking is empirical
It is based on evidence gained from observation and experience rather than on subjective feelings or uncritical belief. It seeks to avoid distortions of reality.
Objective thinking is logical
It reaches conclusions that validly follow from the evidence. It is possible, as the example below demonstrates, to have the right evidence but draw the wrong conclusions:
Evidence: My supervisor has criticised me, I don’t like being criticised
Conclusion: I can’t stand this, it shouldn’t happen to me, and it shows that my supervisor is a rotten person.
Even though the two pieces of evidence are correct, this does not make the conclusion correct. It does not logically follow that because I have been criticized and I don’t like this (both of which are true), that my supervisor is rotten, I cant stand it, and it shouldn’t happen (beliefs which go beyond the evidence).
More logical conclusions could be: My supervisor has done something I dislike; This is unpleasant; and I prefer this not to happen to me.
Illogical beliefs are often overgeneralizations, like, for example:
Something that is unpleasant becomes terrifying (awfulising);
Something that is hard to bear, becomes intolerable (discomfort intolerance);
Because I prefer to avoid discomfort, therefore I absolutely must avoid it (demandingness);
Because I behaved stupidly, therefore I as a person am stupid (self-rating).
To check the logical validity of your conclusions, ask yourself questions like:
Do my conclusions logically follow from the evidence?
What other conclusions may be possible?
Am I catastrophising, demanding, or self/other-rating?
Objective thinking is pragmatic
Science evaluates an idea not just on its evidence or logical validity, but also on its usefulness to human beings. In other words, we need to be concerned with the effects, both short- and long-term, of what we believe. Questions to ask might be:
What effect does believing this have on how I feel and behave?
Does this belief help or hinder me in achieving my goals?
Objective thinking is open-minded and flexible
Nothing is seen as absolute or the last word. Beliefs are seen as theories that are subject to change as new evidence comes along and existing ideas are proved false. Objectivity encourages us to continually search for explanations that are more accurate and useful than the ones we have now.
Why objective thinking is important to stress management
Objective thinking is a necessary component of the other attitudes. For example, increasing your tolerance for frustration and discomfort means keeping their badness in perspective, rather than overgeneralising them into awful or intolerable.
Unscientific thinking can itself create distress. This can happen when you view criticism as unbearable, demand that you succeed, or rate yourself as a total person because you fail at something.
Believing you are controlled by outside forces, like fate or luck, can lead to feelings of anxiety, powerlessness and hopelessness; and cause you to take a passive approach to life and its problems.
Erroneous thinking, as we shall see later, can also make it hard to practice the coping strategies in Part Three.
Developing objective thinking
Use rational self-analysis to challenge erroneous thinking
Use essays to critically examine magical thinking.
Read up on rational thinking.
Developing many of the other principles will also move you toward more objective ways of thinking (especially emotional and behavioural responsibility, self-direction, and flexibility).

12. Acceptance of reality

It makes sense, wherever possible, to change things you dislike. But there will be some things you will not be able to change. You then have two choices – you can rail against fate and stay distressed; or you can accept reality and move on.
The principle of acceptance
To accept something is to (1) acknowledge that it exists, (2) believe there is no reason it should not exist, and (3) see it as bearable. Lets examine these three aspects of acceptance in more detail:
Acknowledgment of reality. This involves admitting that reality – including unpleasant reality – exists. You see it as inevitable that many things will not be to your liking. You view uncertainty, frustration and disappointment as aspects of normal life.
Absence of any demand that reality not exist. This means that although you may prefer yourself, other people, things, or circumstances to be different from how they are (and you may even work at changing them), you know there is no Law of the Universe which says they should or must be different.
Keeping unwanted realities in perspective. You dislike some things, and find them unpleasant – but you avoid catastrophising them into horribleor unbearable.
Acceptance of reality includes many things
There are many realities people are called upon to accept. Here are some that are especially relevant to stress management:
Uncertainty. In the real world there are no certainties. The outcomes of our actions can never be guaranteed. It is helpful to anticipate the future, but we can never know for sure what it holds.
Utopia is unlikely. You and I will almost certainly never get everything we want. This includes total happiness or personal perfection. We will probably always experience some pain, anxiety, or depression.
There are limitations to personal change. There are many things we can change, like anxiety and depression. But there are some things that will not change no matter how much we try, as Martin Seligman points out in his book What You Can Change and What You Cant. Accepting this reality can help people avoid much unnecessary distress.
We cannot change others. One thing we can never change is other people. Only they can change themselves. Accepting this reality may save a lot of pain.
What acceptance is not
Many people have trouble with the idea of acceptance. They think that to accept something means they have to like it, agree with it, justify it, be indifferent to it, or resign themselves to it.
Acceptance is none of these things. You can dislike something, see it as unjustified and continue to prefer that it not exist. You can be concerned about it. You can take action to change it, if change is possible. But you can still accept it by rejecting the idea that it should not exist and that it absolutely must be changed.
Why acceptance is important to stress management
Hurting yourself does not change what you dislike, and will only take away energy better used to confront and solve problems. By reducing the intensity of your bad feelings, you will be less disabled by them. Acceptance can, paradoxically, increase your chances of changing what you dislike!
Acceptance will help you tolerate what you cannot change, and avoid adding unnecessary emotional pain to the unpleasantness of the situation itself.
Acceptance, finally, will help you avoid wasting time and energy and risking your emotional or physical health by striving for what is unattainable.
Developing acceptance of reality
Take note of non-accepting thoughts and behaviour. Watch out for:
Believing that people or things should be different to how they are; that it is awful and intolerable when things are not as they should be; that the world should be a fair place; that one should always be treated fairly.
Feeling angry but unable to do anything.
Needing to get other people to admit they are wrong, or avoiding acceptance because it might mean giving away a sense of self-rightness.
Keep reality in perspective. When facing an unpleasant development in your life:
Use the time-projection technique.
Ask Is this situation, event or possibility really so bad for me?
Develop a catastrophe scale.
Query yourself: How much do I really need to upset myself over this?
Challenge your demands that reality not be as it is. Ask yourself:
Can I really change (this person, this situation, etc.)?
Though I would prefer that be different to how it is, where is it written that it should be?
Why must this not happen?
Is demanding that this person change going to make them change – or would I be better to try and understand how they see things and then attempt to talk with them?
Practice acceptance:
Regularly remind yourself that human beings are fallible and not perfectible.
Don’t retaliate when people do things you dislike.
See the world for what it really is (and always has been) – imperfect.
Practice being satisfied with compromises and less than perfect solutions to problems.
To sum up
We can sum up our discussion of acceptance – and in fact all the rational principles – with a paraphrase of a well-known saying. It suggests that to achieve happiness, there are three things to strive for: the courage to change the things we can, the serenity to accept the things we cant – and the wisdom to know the difference.
One last thing. Dont make these principles into demands. They are ideals. Probably no-one could practice them all consistently. Rather than see them as absolute mustsfor managing your stress, use them as guidelines to a better life.

Ethics in HRM, Principles, Challenges

Ethics in Human Resource Management (HRM) refers to the moral principles and values that guide the actions, decisions, and behavior of HR professionals and organizations in managing their workforce. Ethical practices in HRM are fundamental to creating a fair, inclusive, and respectful workplace, ensuring that employees are treated with dignity, integrity, and respect. Ethical behavior also strengthens the organization’s reputation, fosters trust, and contributes to long-term business success.

Importance of Ethics in HRM

The importance of ethics in HRM cannot be overstated. It helps in promoting fairness, transparency, and accountability in HR practices, leading to better employee relations, higher morale, and enhanced productivity. Ethical HRM practices also foster a positive organizational culture, which attracts and retains talent and reduces the risk of legal issues arising from discriminatory or unfair practices. Furthermore, organizations with a strong ethical framework build credibility with stakeholders, which is critical in the long term.

Core Ethical Principles in HRM

  • Fairness and Equality

One of the most fundamental ethical principles in HRM is fairness. HR professionals must ensure that all employees are treated equitably and that decisions, particularly in hiring, promotions, and compensation, are based on objective criteria. Discriminatory practices based on gender, race, ethnicity, age, or other personal characteristics must be actively avoided. Equal opportunity policies must be in place, ensuring that all employees have the same chances to succeed.

  • Confidentiality

HR professionals deal with sensitive and private employee information, ranging from personal details to performance appraisals. Protecting this confidentiality is an ethical responsibility. Employees should trust that their personal data is handled with care and only shared with relevant parties. Breaches of confidentiality can lead to a loss of trust, legal liabilities, and reputational damage.

  • Transparency

Transparency in decision-making is a core value of ethical HRM. HR professionals must ensure that employees understand the processes involved in promotions, rewards, disciplinary actions, and terminations. Open communication about policies, criteria for performance evaluations, and organizational changes ensures employees feel valued and informed, reducing misunderstandings and mistrust.

  • Integrity and Honesty

HR managers must operate with integrity, ensuring that they act in the best interests of both the organization and its employees. Honesty in communication, feedback, and decision-making is essential for creating an environment of trust. HR professionals must not manipulate or misrepresent facts, whether in the recruitment process, performance reviews, or conflict resolution.

  • Respect for Employee Rights

Respecting employees’ rights is central to HR ethics. This includes respecting their right to fair treatment, the right to join a union or association, the right to a safe work environment, and the right to privacy. HR should provide mechanisms for employees to voice grievances and complaints, ensuring they are addressed fairly and promptly.

  • Social Responsibility

HR professionals also have a responsibility to ensure that the organization follows ethical guidelines beyond the workplace. This includes ensuring that the organization adheres to environmental, social, and governance (ESG) practices. Promoting diversity and inclusion, advocating for employee well-being, and contributing to community development are aspects of HR’s role in social responsibility.

Ethical Challenges in HRM:

  • Discrimination and Bias

One of the most significant ethical challenges in HRM is the prevention of discrimination and bias. Whether in recruitment, promotions, or compensation, HR must ensure that decisions are made without bias based on race, gender, sexual orientation, disability, or other protected characteristics. Discriminatory practices can lead to legal consequences and damage an organization’s reputation.

  • Workplace Harassment

Sexual harassment, bullying, and other forms of workplace harassment are critical ethical issues in HRM. It is the responsibility of HR professionals to create a safe working environment by establishing clear anti-harassment policies and providing training to all employees. HR must take swift action in investigating and resolving harassment complaints to prevent harm to individuals and maintain a positive organizational culture.

  • Performance Appraisal and Employee Feedback

Providing honest, constructive feedback to employees can sometimes be a delicate issue. An ethical HR manager must balance being honest while maintaining respect for the employee’s dignity. Inaccurate performance appraisals or biased evaluations can lead to poor morale and resentment among employees. HR must ensure that feedback is fair, specific, and actionable.

  • Privacy Issues

Employees have a right to privacy, and it is an ethical obligation for HR to protect their personal and professional information. However, the increasing use of digital tools, surveillance, and performance monitoring presents ethical dilemmas regarding the extent of monitoring. HR must find a balance between ensuring workplace productivity and respecting employees’ privacy.

  • Employee Downsizing and Termination

Downsizing, layoffs, and termination are among the most difficult ethical challenges for HR professionals. HR must ensure that these decisions are made based on sound business reasons rather than arbitrary factors. Employees should be given fair notice, severance pay, and support for transitioning to new roles. Ethical considerations also include the dignity with which the employee is treated during the termination process.

Creating an Ethical HRM Culture:

  • Developing Clear Policies

Clear and concise HR policies, including anti-discrimination, anti-harassment, and equal opportunity policies, are critical for establishing ethical guidelines within the organization. These policies should be regularly reviewed and communicated to all employees.

  • Training and Awareness Programs

Ongoing training programs for HR professionals and employees on ethical issues, such as workplace harassment, diversity, and unconscious bias, can significantly improve the ethical culture of the organization.

  • Leadership and Accountability

Ethical behavior must start at the top. Senior management should lead by example, demonstrating the ethical values they want to see in the organization. Additionally, HR professionals must be accountable for their decisions and actions.

Audit Committee, Composition, Role, Responsibilities, Importance

Audit Committee is typically composed of independent non-executive directors, with at least one member having expertise in finance, accounting, or auditing. Its main purpose is to assist the board of directors in fulfilling its oversight responsibilities, particularly related to financial reporting, internal control, and compliance with laws and regulations. The committee works closely with both external and internal auditors to monitor the effectiveness of the audit process and ensure that financial statements provide a true and fair view of the company’s financial performance and position.

Composition of the Audit Committee:

  • Independent Directors:

The audit committee must include a majority of independent non-executive directors to ensure impartiality and prevent conflicts of interest. The inclusion of independent directors ensures objectivity in overseeing the audit process.

  • Financial Expert:

At least one member of the audit committee must have financial expertise to understand complex accounting principles, financial statements, and audit processes.

  • Chairperson:

The chairperson of the audit committee is typically an independent director. This role is crucial in ensuring the proper functioning of the committee and its collaboration with auditors and the board.

Role and Responsibilities of the Audit Committee:

  • Overseeing Financial Reporting:

The committee ensures that the company’s financial statements are prepared in accordance with applicable accounting standards and regulatory requirements. It reviews the annual financial reports before submission to the board and shareholders.

  • Monitoring Internal Control Systems:

The audit committee evaluates the effectiveness of the company’s internal control systems, ensuring that policies and procedures are in place to mitigate risks, prevent fraud, and ensure the accuracy of financial records.

  • Reviewing the External Audit Process:

The committee selects and appoints external auditors and ensures their independence. It meets regularly with auditors to discuss their audit findings, key concerns, and any issues that may affect the company’s financial reporting.

  • Risk Management Oversight:

The audit committee is involved in reviewing the company’s risk management framework and processes. It assesses potential risks (financial, operational, or compliance-related) and evaluates how they are being managed or mitigated.

  • Compliance with Laws and Regulations:

The committee ensures that the company complies with legal and regulatory requirements, such as tax laws, securities regulations, and corporate governance standards. It plays a key role in overseeing compliance with laws that affect financial reporting.

  • Internal Audit Function:

The audit committee is responsible for overseeing the internal audit function, which evaluates the company’s internal controls and operational effectiveness. The committee works with internal auditors to identify areas for improvement and ensures timely action is taken.

Importance of the Audit Committee

  • Enhancing Transparency:

By ensuring proper oversight of the financial reporting process and the internal and external audits, the audit committee enhances transparency and accountability in the company’s financial disclosures. This boosts the confidence of shareholders, investors, and other stakeholders in the financial health of the company.

  • Strengthening Corporate Governance:

The audit committee is a cornerstone of good corporate governance. It promotes transparency, ethical conduct, and sound financial practices, helping the company to operate in a manner that is aligned with the best interests of its shareholders.

  • Improving Internal Controls and Risk Management:

The audit committee helps identify weaknesses in internal controls and ensures corrective actions are implemented. This strengthens the company’s ability to manage risks effectively and ensures that operations are running efficiently and securely.

  • Facilitating Effective Auditing:

The audit committee ensures that auditors have the resources, access, and independence they need to perform their duties. It facilitates the smooth functioning of the auditing process by acting as a bridge between the auditors and the company’s management.

  • Protecting Stakeholder Interests:

By ensuring proper financial reporting and compliance, the audit committee helps protect the interests of stakeholders, including shareholders, employees, regulators, and creditors.

Regulatory Framework Governing Audit Committees

In many countries, including India, the establishment of an audit committee is mandated by law for listed companies and certain public interest entities. In India, the Companies Act, 2013 and SEBI (Securities and Exchange Board of India) regulations require that listed companies form an audit committee. Some key requirements under Indian law include:

  • The committee must consist of at least three directors, with a majority of independent directors.
  • The committee must meet at least four times a year, with a quorum of two members present for meetings.
  • The audit committee must review and discuss financial statements, the internal audit process, the external audit’s scope, and the company’s risk management strategy.
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