Tag: University of Mumbai BMS Notes

As profit margins have shrunk and web-based video meetings have become inexpensive, even as their quality and reliability have improved, more and more small business owners have turned on those laptop cameras to save on travel and conduct effective meetings.

“Even if a company travels only once or twice a month, videoconferencing can save them tens of thousands of dollars a year,” says Bernard Moon, CEO of Palo Alto, Calif.-based Vidquik, a web-based videoconferencing service for small business.

Still, for entrepreneurs, there’s a dilemma: For a customer who’s got an agenda of middling importance, should I fly in an account manager or sales exec, or will a well-prepared videoconference do the trick?

Take the time to emphasize the following tips to enhance your team’s video conferencing skills and set your remote team up for success:

1. Maintain a Clean Background

Most professionals understand the importance of looking well-groomed for a video conference, but they should also consider what’s going on directly behind them. Advise your team to clean up anything that will show in the video frame and clear out items that colleagues or clients shouldn’t see.

This is especially important for those working from home where kids, spouses, roommates, or pets could walk into the shot during a meeting.

2. Anticipate Distractions

In Polycom’s recent survey of more than 1,200 business decision makers, 56 percent noted that they had been distracted by noise or decor during a video meeting. Video conference users should not only create a distraction-free background, but also make sure their surroundings are relatively quiet.

It can be awkward and frustrating when someone on a video conference receives a call on a cell phone, a knock on the door, or something else that pulls them and everyone else away from the task at hand. Before a video conference begins, suggest that participants silence everything that could make noise, including cell phones, landlines, computer notifications, and alarm clocks.

3. Pay Attention to Body Language

Conventional wisdom recommends making eye contact during meetings, interviews, and other professional interactions. While this is excellent advice for face-to-face meetings, it isn’t a great strategy during a video meeting. Instead, encourage the habit of looking directly at the camera when speaking, which creates the appearance of eye contact.

Remind your team to avoid fidgeting or excessive gesturing during a video conference, as these movements can appear over-exaggerated when they show up on the screen. Sitting too close to the camera or leaning in during the interview can also be distracting, so it’s best that everyone maintain a comfortable, consistent distance from the camera throughout the meeting.

4. Assume Everything Can Be Seen

Too often, video conference participants try to multitask with personal projects and ultimately embarrass themselves and frustrate the people on the other end of the call. The Polycom survey of decision makers also found that 51 percent of respondents reported noticing when other participants appeared to be multitasking or seemed bored.

Embracing video conferences and video conferencing skills is valuable because it allows your team to be more comfortable and productive. But this flexibility can turn into a disadvantage if colleagues or clients see or hear something unprofessional. Ensure that your team understands that above all, it’s best to simply avoid anything that wouldn’t be appropriate in an office setting.

Practice video conferencing skills as a team and give individual, honest feedback about needed improvements. Ultimately, your remote reports will be prepared to make a great impression during every single video conference.

Effective Meetings: Is videoconferencing Cheap Enough?

In recent years, the costs of videoconferencing of reasonable quality have plummeted from thousands of dollars to perhaps hundreds or less per year for a small business.

Even just a few years ago, “videoconferencing was a free, low-resolution experience where the medium was more of a distraction than a help,” says Bernardo de Albergaria, vice president at Citrix Online of Santa Clara, Calif, which makes GoToMeeting with HD Faces. “It was small thumbnails of the participants, all pixelated. Now it’s much better.”

Indeed, web-based videoconferencing has become cheap enough and good enough to make it worthy of consideration for several kinds of long-distance meetings.

Videoconferencing vs. Teleconferencing

Video has a particular value in those teleconferences where a substantial body of new information is communicated.

With teleconferencing, “when we present new ideas or prototypes, there’s no feedback from the audience,” says Mike Huska, chief technology officer at Incential Software in Phoenix.

“It’s hard to tell whether they like it or they’re lost. In a videoconference, you can see a smile, or confusion.” Incential uses Citrix’ GoToMeeting.

“Video lets you read nonverbal signals,” says Moon. For example, what might remain an uncomfortable silence on the phone can more easily be addressed and resolved when there’s visual contact among all parties.

Even among a group of far-flung colleagues with frequent contact and common goals, video helps to support the human side of working relationships. “We have staff meetings, and video gives us the feeling of face time,” says Huska.

Internal meetings are also a good testing ground for added-value features that are popping up in more web-based videoconferencing services: screen sharing, presentation sharing, whiteboarding, private chat, and so on.

Video and the Hiring Process

With so many talented professionals available on the job market across the country, many entrepreneurs are itching to take their searches national.

With initial rounds of video interviews, small employers can access the entire US labor market and narrow the candidate pool to a few finalists via virtual recruitment tools.

Of course, videoconferencing can save lots of time in a regional recruitment effort as well.

“Recruiters are saying that they can be much more efficient via video meeting versus getting in a car to see a candidate,” says Sean O’Brien, an executive vice president at PGi, maker of videoconferencing service iMeet in Atlanta.

The key is knowing how to interview virtually and follow the proper legal guidelines.

When Can Videoconferencing Replace Travel?

The toughest decisions about when to videoconference center on how you makes sales. For pitches with considerable potential, there’s a consensus that the meeting must be face-to-face, literally not virtually.

“There’s no replacement for in-person, especially on the initial sales call,” says Huska. Once that meeting has happened, the sales force may be able to reinforce the relationship with video meetings.

Of course, you can’t decide in a vacuum when to meet by video and when to make the trip.

“The decision of whether to use videoconferencing instead of in-person should be based on the social norms of your industry and business community,” says Moon.

It makes sense to test the video waters with clients who seem comfortable with technology and flexible with meeting arrangements, and who trust you to make them happy in the long run.

Aesthetics, or esthetics, is a branch of philosophy that deals with the nature of beauty and taste, as well as the philosophy of art (its own area of philosophy that comes out of aesthetics). It examines subjective and sensori-emotional values, or sometimes called judgments of sentiment and taste.

Aesthetics covers both natural and artificial sources of aesthetic experience and judgment. It considers what happens in our minds when we engage with aesthetic objects or environments such as in viewing visual art, listening to music, reading poetry, experiencing a play, exploring nature, and so on. The philosophy of art specifically studies how artists imagine, create, and perform works of art, as well as how people use, enjoy, and criticize their art. It deals with how one feels about art in general, why they like some works of art and not others, and how art can affect our moods or even our beliefs. Both aesthetics generally and philosophy of art especially ask questions like “what is art?”, “what is a work of art?”, and “what makes good art?”.

Scholars in the field have defined aesthetics as “critical reflection on art, culture and nature”. In modern English, the term “aesthetic” can also refer to a set of principles underlying the works of a particular art movement or theory (one speaks, for example, of a Renaissance aesthetic).

Aesthetic Stage Descriptions

Stage 1: Accountive

Accountive viewers are storytellers. Using their senses, memories, and personal associations, they make concrete observations about a work of art that are woven into a narrative. Here, judgments are based on what is known and what is liked. Emotions color viewers’ comments, as they seem to enter the work of art and become part of its unfolding narrative.

Stage 2: Constructive

Constructive viewers set about building a framework for looking at works of art, using the most logical and accessible tools: their own perceptions, their knowledge of the natural world, and the values of their social, moral and conventional world. If the work does not look the way it is supposed to, if craft, skill, technique, hard work, utility, and function are not evident, or if the subject seems inappropriate, then these viewers judge the work to be weird, lacking, or of no value. Their sense of what is realistic is the standard often applied to determine value. As emotions begin to go underground, these viewers begin to distance themselves from the work of art.

Stage 3: Classifying

Classifying viewers adopt the analytical and critical stance of the art historian. They want to identify the work as to place, school, style, time and provenance. They decode the work using their library of facts and figures which they are ready and eager to expand. This viewer believes that properly categorized, the work of art’s meaning and message can be explained and rationalized.

Stage 4: Interpretive

Interpretive viewers seek a personal encounter with a work of art. Exploring the work, letting its meaning slowly unfold, they appreciate subtleties of line and shape and color. Now critical skills are put in the service of feelings and intuitions as these viewers let underlying meanings of the work what it symbolizes emerge. Each new encounter with a work of art presents a chance for new comparisons, insights, and experiences. Knowing that the work of art’s identity and value are subject to reinterpretation, these viewers see their own processes subject to chance and change.

Stage 5: Re-Creative

Re-creative viewers, having a long history of viewing and reflecting about works of art, now willingly suspend disbelief. A familiar painting is like an old friend who is known intimately, yet full of surprise, deserving attention on a daily level but also existing on an elevated plane. As in all important friendships, time is a key ingredient, allowing Stage 5 viewers to know the ecology of a work — its time, its history, its questions, its travels, its intricacies. Drawing on their own history with one work in particular, and with viewing in general, these viewers combine personal contemplation with views that broadly encompass universal concerns. Here, memory infuses the landscape of the painting, intricately combining the personal and the universal.

Etiquette in simpler words is defined as good behaviour which distinguishes human beings from animals.

Etiquette is the set of conventional rules of personal behaviour in polite society, usually in the form of an ethical code that delineates the expected and accepted social behaviors that accord with the conventions and norms observed by a society, a social class, or a social group. In modern English usage, the French word étiquette (ticket) dates from the year 1750.

Human Being is a social animal and it is really important for him to behave in an appropriate way. Etiquette refers to behaving in a socially responsible way.

Etiquette refers to guidelines which control the way a responsible individual should behave in the society.

Need for Etiquette

• Etiquette makes you a cultured individual who leaves his mark wherever he goes.
• Etiquette teaches you the way to talk, walk and most importantly behave in the society.
• Etiquette is essential for an everlasting first impression. The way you interact with your superiors, parents, fellow workers, friends speak a lot about your personality and up- bringing.
• Etiquette enables the individuals to earn respect and appreciation in the society. No one would feel like talking to a person who does not know how to speak or behave in the society. Etiquette inculcates a feeling of trust and loyalty in the individuals. One becomes more responsible and mature. Etiquette helps individuals to value relationships.

Types of Etiquette

Social Etiquette- Social etiquette is important for an individual as it teaches him how to behave in the society.

Bathroom Etiquette: Bathroom etiquette refers to the set of rules which an individual needs to follow while using public restrooms or office toilets. Make sure you leave the restroom clean and tidy for the other person.

Corporate Etiquette: Corporate Etiquette refers to how an individual should behave while he is at work. Each one needs to maintain the decorum of the organization. Don’t loiter around unnecessary or peep into other’s cubicles.

Wedding Etiquette: Wedding is a special event in every one’s life. Individuals should ensure they behave sensibly at weddings. Never be late to weddings or drink uncontrollably.

Meeting Etiquette: Meeting Etiquette refers to styles one need to adopt when he is attending any meeting, seminar, presentation and so on. Listen to what the other person has to say. Never enter meeting room without a notepad and pen. It is important to jot down important points for future reference.

Telephone Etiquette: It is essential to learn how one should interact with the other person over the phone. Telephone etiquette refers to the way an individual should speak on the phone. Never put the other person on long holds. Make sure you greet the other person. Take care of your pitch and tone.

Eating Etiquette: Individuals must follow certain decorum while eating in public. Don’t make noise while eating. One should not leave the table unless and until everyone has finished eating.

Business Etiquette: Business Etiquette includes ways to conduct a certain business. Don’t ever cheat customers. It is simply unethical.

To conclude, etiquette transforms a man into a gentleman.

Business Etiquette

Business etiquette also goes by the moniker business etiquettes. However, English language does not stipulate any plural form for the word. Hence, the term etiquette is generally taken as correct.

Online Business Dictionary defines business etiquette as “Expected behaviors and expectations for individual actions within society, group or class. Within a place of business, it involves treating coworkers and employer with respect and courtesy in a way that creates a pleasant work environment for everyone.”

Further, business etiquette is also defined as a set of manners that are needed or practiced in profession. Sometimes, they are vaguely termed customs or traditions.

Every person following that trade or profession is expected to follow these manners. Indeed, violating accepted manners or customs is considered uncivilized. Additionally, such violations can cause loss of business.

However, the term business etiquette is often considered vague: While it does imply how you deal with your customers, associates and others, it is also useful within the office.

Business etiquette helps foster responsible and respectful behavior among staff and also sets pace for better communications. This translates into higher productivity and efficiency.

Business etiquette makes everyone feel comfortable. It helps forge relationships and builds loyalty. In fact, business etiquette is extremely vital for your business, regardless of its size. Success or failure of your business depends heavily upon etiquette you and others display to one-another and to others.

Business etiquette and corporate culture

Business etiquette is integral part of corporate culture. Rather, it is considered the very foundation of corporate culture. Understandably, corporate culture sans business etiquette is ersatz.

Business etiquette and corporate culture are braided. Meaning, one cannot exist without the other.

Types of business etiquette

Understandably, this is sufficient to mystify you. There are several types of business etiquette that you need to practice and implement, for having a successful business. Alternatively, great business etiquette can also help you stay ahead of peers and competitors. Broadly, you need to apply business etiquette in five main spheres:

1. Email business etiquette

Nowadays, emails constitute bulk of every business communications. Hence, it is imperative to inculcate excellent business etiquette while sending or responding to emails. Good business etiquette for email includes

• Avoid mass mailing. Such emails usually end up in spam. Further, they indicate you are only interested in making money, with scant respect for individuals.
• Explicitly mention subject of your email. This leaves no space for ambiguity and clearly informs the recipient, what the email is about.
• Mention the recipient’s full name with appropriate suffix. This personalizes the email. Add Mr., Ms, Mrs., before the name. It is polite. Follow this with ‘Sir’ or ‘Madam’ according to the receiver.
• Do not write long paragraphs. Remember to limit your paragraphs to two or three sentences only.
• Be concise yet precise in your message. Meaning, do not beat round the bush. Come directly to the point and mention what you wish to say.
• Express gratitude. You could be dealing with a petulant customer or business associate. Do not take umbrage. Instead, thank the sender and acknowledge the email. End by thanking the sender for cooperation and time spent on reading your email. This dents the sender’s fury. Follow this practice for your regular business emails too.
• Never add CC and Bcc unless extremely essential. Every recipient prefers to deal with a single point of contact. Adding more people to an email tends to widen the scope of respondents and can inadvertently confuse the recipient.
• Above all, immediately acknowledge every email you receive. This implies your company is proactive. Further, it builds a great confidence level with the sender.
• Add your digital signature if possible. Also, mention your name, designation and contact details clearly while concluding the email. While mentioning phone numbers, also state timings when you can be called.
• Provide a link to your website, tacitly directing the recipient to explore your company’s offerings.

You can distribute a standard template for official email among your staff. This ensures consistency in email communication across the board.

2. Social media etiquette

Thanks to proliferation of Facebook and Twitter, an increasing number of companies are now taking to social media. Firstly, Facebook allows you to post fun stuff on your corporate page while Twitter helps reach out to clients and business associates speedily. It also helps companies listen to their customers- both satisfied and unhappy.

• Judicious use of smiley. Meaning, use a smiley that suits the comment. Try to avoid use of ‘Laugh’ or ‘Angry’ smiley since it can offend the person posting the comment. Worse, you may draw ire from the entire community for using inappropriate smiley.
• Respond politely to every adverse comment. Never get into the proverbial ‘tit-for-tat’ mode while handling clients or business associates on Facebook. Similarly, never go all out to appease someone who has made an adverse or negative comment about your offerings. Remember, your comments can go viral within minutes and severely sully your brand.
• Respond at the earliest. This is the secret of staying ahead of competition. Every person who comments wants a response at the earliest. Doing so increases the chances of getting more ‘likes’ for your Facebook page.
• Get genderless. Obviously, you lack the means to known whether a person making comments is female or male. Therefore, respond in a manner that appeals to all genders.
• Never tarnish competitors and rivals. Nor should you allow your ‘friends’ to post negative remarks about them. Delete such comments or posts, as soon as you notice them. You could unwitting fall prey to a tactic by rivals or land in a war of words.

3. Customer service etiquette

Another integral part of business etiquette is how you deal or interact with customers. Here, it is essential to bear in mind that customer is the core of your business. Admittedly, some customers are cantankerous and hard to please. Yet, that is no reason for showing disrespect.

• Greet all customers with a smile. Guide them to a seat if possible. Offer a drink of water. Such etiquette calms down even the most rancorous visitor.
• Be very patient. Not all customers are there with grievances. Some may have excellent suggestion that can help your business flourish.
• Speak amicably. Meaning, never get into an argument with a customer either on or away from your premises.
• Avoid raising your voice at all costs. The person can feel humiliated and will bay for revenge. You could end up with a lawsuit on your hands. It also sends ugly signals to others, including your staff. Should you encounter a boisterous visitor, lead away to privacy of a room and chat amicably.
• Offer a beverage such as coffee, tea or a soft drink. Invariably, this tact cools down even the most incensed customer.

4. Business associate etiquette

Generally, this means the entire system of how you deal with your business associates. Of course, no businessman or executive will treat a business associate shabbily. However, modern businesses require a chic, proactive approach. Here is some vital business etiquette essential nowadays

• Fix meetings at mutually convenient venues, date and time.
• Be present at the venue well in advance.
• If you are playing host, ensure that stationery, water bottles and cups as well as other essentials are in place.
• Ensure that all files and documents relevant for the meeting are available at the venue.
• Have someone meet, greet and escort your business associates to the meeting room. If possible, do so yourself. Greet your associates with a bouquet.
• Never keep your business associates waiting.
• Ensure you are not disturbed by phone calls.
• If a business associate drops by uninformed, ensure you meet them without much delay.

5. Workplace etiquette

Charity, education and all the good stuff starts at home. So does workplace etiquette. Unless your staff and you have excellent workplace etiquette, you cannot enforce them effectively for business. Workplace etiquette stems from office decorum. Here are few things you can do for improving workplace etiquette:

• Inform all staff about ‘do’s’ and ‘don’ts’ at the office. This means, strict ban on cuss and swear words.
• Encourage a system of greeting one-another, especially when one arrives for work or leaves for the day.
• Create an atmosphere of confidence, where employees at all echelons can share views openly, without fears of retribution.
• Nip unhealthy gossip.
• Maintain a proper dress code. Smart attire is fine but also ensure your staff do not arrive in sagging clothes that stink of stale sweat.
• Promote avenues for healthy interaction. Never allow personal disputes to erupt into verbal duels at workplace

6. Telephone etiquette

A telephone is important extension of your business. It allows people from afar to connect immediately. The advent and booming popularity of mobile phones has not diminished the significance of a landline phone. Every major company has landline phones where business associates and customers can contact.

Usually, your telephone operator will come well versed in etiquette. However, the problem begins once the call gets passed.

• Ensure the call is handled promptly, even if the called person is not on desk.
• Apologize for the called person’s absence but ask if the caller requires any assistance.
• Wherever possible, ask the caller’s name and contact number and assure the called person will respond back at the earliest.
• Find if you can be of any assistance or whether the call can be diverted to another staff who could help.
• Always answer with a polite ‘hello’ instead of a curt ‘hi’ or other word.
• Be very selective in use of your words. Sometimes, it could be your boss calling for some work.

7. Visitor etiquette

Visitors to your office need not necessarily be your business associates or customers. Mailman, delivery staff, maintenance crew and motley other people also visit your office almost daily.

These visitors are equally vital for your business as the millionaire banker. Often, some such visitors may lack proper etiquette or manners while dealing with some senior executive. This is no reason to fly off your rocker. Instead, here are things you can do:

• Have the visitor led to a person concerned with these works.
• Make the visitor feel welcome to your office by offering a seat and a drink of water, if possible.
• Engage such visitor in small talk for a minute or so. Remember, such talk greatly serves to relieve the stress of a mailman or electrician.
• Never dismiss such visitors as menial. Instead, accord them the same welcome as you would a business associate.
• Never admonish a worker for some work left incomplete or wrong repairs. Hurting their ego will not serve your purpose. Au contraire, it can prove counterproductive.

8. Business party etiquette

Once again, this includes a list of do’s and don’ts, whether you are playing host or attending a business party. Interestingly, lots more work gets done informally during business parties rather than routine meetings.

To make your attendance or hosting a success, here is some good etiquette:

• Always send an RSVP if invited for a business party, regardless of whether you attend.
• Ask for RSVP when sending business party invitations.
• Business party invitations usually stipulate a dress code. Ensure that you adhere to this dress code if invited. Specifically mention the dress code if you are playing host.
• Ensure you mention whether the invitation is for your business associate only or includes the spouse. This will save embarrassment to both, host and guests.
• Invite people who share common interests and can provide life to your party. Calling people with diverse interests causes formation of small groups. This leaves some guests feeling lonely or in wrong company.
• Have a very affable staff watch over your bar and buffet. This is not to watch over your guests but ensure that drinks and food flow is well maintained and smooth. A staff with condescending looks, however effusive, can be a deterrent to enjoyment.
• Never segregate staff based on their positions, during a party. This is a clear signal that your firm discriminates between high and low rung employees. Such feelings can adversely impact your organization’s image. It is party time and everyone has right to enjoy.

These leader behaviors are definitely a sign that in the near future, your employees are going to walk out the door. Yet, there is one aspect that is missing. The article says what leaders shouldn’t do by providing behavioral examples one sought to avoid.

How to keep your employees from leaving?

1. Give more praise and recognition

It’s not always about money or tangible extrinsic rewards. Why? Many people quit because of lack of appreciation. Extroverts or introverts, your employees still get a kick out of public or private praise. People like to be recognized for their wins.

2. Set clear objectives and goals

It’s difficult for employees to give their best if the task’s goal changes more often than they change their socks. Communicate your expectations clearly and set precise goals. Results are only as strong as the objectives you set. Try the management Google and LinkedIn practice—OKR—Objectives and Key Results.

3. Be future-driven

Analyzing the past is important to projecting the future. But focusing solely on employees’ progress isn’t enough in a fast-paced workplace. You also need to study the future, as impossible as it might sound. Using a management technique like PPP Progress, Plans, Problems helps you be aware of your teams’ plans.

4. Seek input and ideas

More often than we think, decisions are made without seeking input. This strategy might save you few minutes or hours, but it doesn’t guarantee success. Sometimes it’s okay not to be the smartest person in the room. Ask input from people around you. Your team has brilliant ideas; just learn to ask.

5. Give continual feedback

As tasks grow more complex and interdependent, people need more feedback. Employees need to feel that they are heard by their managers and they need it more often than twice a year. There is a correlation between employee engagement and periodic feedback.

6. Measure satisfaction

All of these tips mean nothing, if you fail to measure their success. Although it would be wonderful if it were true that one could assert that 2 pieces of feedback a week increased employee satisfaction by X percent, it is just not the case. Guidelines are only guiding lines. You are responsible for figuring out the exact actions. You can manage only what you measure.

7. Save time in meetings

One of the biggest employee motivation killers is wasting their time. Holding a poorly prepared status update meeting that lasts for hours wastes everyone’s time, including your own. Prepare for meetings; replace unnecessary meetings with online real-time tools. Try the free online Team Meeting Toolbox. Providing you with necessary tools before, during and after the meeting, so you’re next meeting would be awesome.

8. Ask about emotions and attitudes

Don’t mix giving praise and providing feedback with asking about attitudes and emotions. The two are not the same. The first two relate to the result, the other two relate to the journey. You’ll be surprised what you learn about your team when you ask emotional questions.

9. Don’t be too negative

Constructive feedback is necessary, even if it’s negative, but regular criticism will take down even the strongest. People have much greater recall of unpleasant memories than positive ones. To keep your people happy and motivated, be positive and lead by example.

10. Communicate openly

Open internal communication plays a big role in successful teamwork. Share your weekly plans and thoughts; it will encourage an open atmosphere. Only after mastering the skill of sharing openly can you expect the same from everyone else.

An exit interview is a survey conducted with an individual who is separating from an organization or relationship. Most commonly, this occurs between an employee and an organization, a student and an educational institution, or a member and an association. An organization can use the information gained from an exit interview to assess what should be improved, changed, or remain intact. More so, an organization can use the results from exit interviews to reduce employee, student, or member turnover and increase productivity and engagement, thus reducing the high costs associated with turnover. Some examples of the value of conducting exit interviews include shortening the recruiting and hiring process, reducing absenteeism, improving innovation, sustaining performance, and reducing possible litigation if issues mentioned in the exit interview are addressed. It is important for each organization to customize its own exit interview in order to maintain the highest levels of survey validity and reliability.

The exit interview fits into the separation stage of the employee life cycle (ELC). This stage, the last one of the ELC, spans from the moment an employee becomes disengaged until his or her departure from the organization. This is the key time that an exit interview should be administered because the employee’s feelings regarding his or her departure are fresh in mind. An off-boarding process allows both the employer and employee to properly close the existing relationship so that company materials are collected, administrative forms are completed, knowledge base and projects are transferred or documented, feedback and insights are gathered through exit interviews, and any loose ends are resolved.

In business

Exit interviews in business are focused on employees that are leaving a company or when employees have completed a significant project. The purpose of this exit interview is to gain feedback from employees in order to improve aspects of the organization, better retain employees, and reduce turnover. During this interview employees will be asked why they are leaving, what specifically influenced their decision to leave, whether or not they are going to another company and what that company they are going to offers that their current company does not. Businesses can use this information to better align their HR strategy with what employees look for in an organization and enact programs and practices that will influence top talent to stay at the organization.

In the past, exit interview data was being collected by the organization but not much was being done in terms of interpreting the data and making it actionable. Today there are metrics, analytics, benchmarks, and best practices that help organizations make sense of and use the data towards proactive organizational retention programs. Recently an array of exit interview software has been developed and popularized. However this method of conducting Exit Interviews has some significant flaws, most notably, that it identifies the wrong drivers of staff turnover.

In education

Exit interviews in education are conducted with students who have graduated from an educational institution. These interviews are meant to gather information about students’ experience while attending that institution, what they benefited from, what was missing, and what could be improved to enhance the experience of the next generation of students who attend that institution. This type of interview can also point to areas in which the institution should invest more or less resources to enhance a student’s learning and development experience.

Methods for conducting exit interviews

There are various methods of conducting exit interviews, each with their benefits and disadvantages.

1. Face to Face interviews

Historically, this has been the primary method for conducting Exit Interviews (79% of organizations), although this is changing rapidly. These face to face meetings are usually conducted internally by a human resources professional or manager, or in rare cases, by an external consultant.

Benefits of Face to Face Interview

The main benefit of this method is that completion rates tend to be high, as long as the interview is conducted by a relevant and suitably skilled professional (external consultant, HR professional or indirect manager). In addition, departing employees have a personal experience which may cause them to speak more positively about the company (affecting their ’employer brand’) after they leave. Also, if Interviewers are well trained, the content can be well structured and checked in real time to ensure accuracy of data, especially concerning reasons for leaving. This method also allows high quality data to be collected from people whose literacy skills are not good.

Disadvantage of Face to Face Interview

The disadvantages of this method are that the feedback is rarely captured in a way that allows reporting on trends with more than a third of organizations using this method having no reporting tool attached to their exit data. If conducted by an external consultant, this method can be expensive. It’s also sometimes the case that the human resources professional who might conduct the interview, could be part of the employee’s reason for leaving (e.g. I was overlooked in the pay review while on parental leave and my HR person wouldn’t return my calls). This would mean that the employee is unlikely to be honest if that HR professional was conducting the exit interview. Unfortunately very few organizations (20%) provide any training on exit interviewing so the quality is often highly variable. In addition, this method is the most expensive if outsourced.

2. Telephone interviews

Exit Interviews conducted by telephone are becoming more common (41% of organizations) and are the most effective method of Exit Interviews.

Benefits of Telephone Interview

Feedback is easy to capture and code in a form that allows easy reporting and analysis. Because the Interviewer’s visual attention does not need to be dedicated to the person in front of them, as it does in a face to face interview, they are able to capture and code feedback in real time. Completion rates are the highest of all methods, possibly due to there being no need for the Interviewer and Interviewee to be in the same physical place, but also because the interview can be conducted even after the person has left (see Timing of Exit Interviews). If Interviewers are well trained, the content can be well structured and checked in real time to ensure accuracy of data, especially concerning reasons for leaving. And as with face to face interviews, the experience for the Interviewee can be very personal. This method is easy to outsource, and is less expensive than face to face interviews. It also allows for high quality data to be collected from people whose literacy skills are not good.

Disadvantages of Telephone interview

This method is that it is more expensive than online and paper surveys. Some Human Resources professionals enjoy conducting the interviews, so outsourcing the interviews removes this task.

Percent of exit interviews completed according to who conducted the interview.

3. Paper surveys

Exit interviews taken in paper form allows interviews to be conducted with those who do not have Internet access, and allows for the option of anonymity. However, it takes longer to receive feedback, and respondents who are not literate would find it difficult to use this medium. Information must also be entered into a tracking system manually for this medium. As at 2010, 46% of organizations still conducted Exit Interviews using this method.

4. Online surveys

As at 2010, 38% of organizations used this method for Exit Interviews.

Benefits of Online Survey

This is the least costly method of conducting Exit Interviews, with several free survey software tools available on the market. It also collects data in a way that is easy to report and analyse.

Disadvantages of Online Survey

There are two significant problems with using online surveys for Exit Interviews. The most critical problem is that they identify the wrong drivers of staff turnover Because online surveys do not allow for testing of root cause, the reasons for leaving are not differentiated from issues that caused dissatisfaction but not resignation. In addition there is no ability to ensure that the commentary for each reason for leaving, is consistent with the reason for leaving option they have chosen from a list. The second problem with using online surveys for Exit Interviews is the relatively low completion rate at 34%. This is around half the average completion rate of interviews that are outsourced to external consultants (66%) and around a third of best practice for outsourcing phone interviews (95%).

5. Interactive voice response surveys

IVRs are reliable methods of taking exit interviews because they are accessible by phone, a very widespread and reliable technology. However, IVRs have fallen out of favor due to the cost effectiveness of web based options that yield data at similar or higher quality. In comparison to other options, it is difficult to get rich data from an IVR, or to adjust and change it, since any changes require new voice recordings to be made.

Importance of Exit Interview

1. Departing employees are generally more forthcoming than those still in their jobs
2. You will learn the reason for an employee’s departure (it may be different than you think!)
3. The exit interview allows the employee to provide constructive feedback and leave on a positive note.
4. That last touchpoint provides you with an opportunity to review continuing obligations with the employee (e.g., non-competes, intellectual property agreements, etc.)
5. It provides the opportunity to ask if there are any open issues of which you need to be aware. This can help reduce risk and identify matters that may require immediate attention.
6. You will get a candid assessment of your organization’s environment and culture.
7. Insight into recruiting, on-boarding, and training needs may be revealed.
8. The feedback will help you to identify areas that can help improve staff retention.
9. Improvement opportunities in management development and succession planning can be detected.
10. It’s cost-effective and easy to facilitate with HR Acuity Exit Interviews.

No matter the size of your company, exit interviews provide an opportunity for an employee to discuss the workplace environment, concerns about misconduct, or issues within management.

Groups exist in every formal and informal type of organisations. Such groups are created by the members for its satisfaction. Very often groups get formed automatically because of the operation of various socio psychological factors. Such groups affect the behaviour of its members.

Group dynamics is related to determining the interactions and forces between group members in a social situation. The term dynamics originated from the Greek word meaning force. Thus if this term can be extended to group dynamics, it refers to the study of forces operating within a group. Here it would be proper to mention the difference between aggregates and groups. Aggregation of individuals refers to where individuals are not aware of each other, or if aware, do not interact with each other in a meaningful way. A group will comprise of:

1. Two or more people who are interdependent on each other, with group members and
2. The group share a set of beliefs, valves and norms, which regulates their mutual conduct.

Meaning of Group:

Marvin E. Shaw has defined groups as “two or more persons who are interacting with one another in a such a manner that each person influences and influenced by each other”

People generally tend to define a group differently, mainly because it is difficult to define a group independent of some specific reference or purpose. As per the above definition when two or more people interact together such that each member is influence as well as be influenced by other group members, it is referred to as a group

Clouis R. Shepherd defines groups as “A group may be defined as the aggregation of small number of persons who work for common goals, develop a shared attitudes and are aware that they are part of a group and perceive themselves as such”.

Characteristics of Groups:

1. Two or more persons: To form a group there should be atleast two persons, because a single individual cannot interact. Though no maximum limits have been set, the size of the group should be such so as to allow meaningful interaction among the members of group.
2. Collective identity: Each member of the group must believe that he is member of the group and also be aware of his participation in the group activity. For instance a group of boys are room-mates staying together in the hostel. Though they may not be studying in the same class but because of their identity of room-mates they would prefer to go out together for shopping.
3. Interaction: Members of the group will interact with each other. Though it is not necessary for all members of the group to interact simultaneously but each member must atleast occasionally interact with the members of the group.
4. Shared goal interest: Members of the group should concur to the attainment of objectives each one must atleast share one of the groups concerns

Reasons for formation of groups:

The reasons for the formation of groups are as follows

1. Solution for mindedness: Though the group members bring with them expertise in the form of knowledge and experience sometimes due to want of time the group members may pressurise all concerned with the group to arrive at solution to the problem quickly. In such cases the decisions arrived at may be improper/ hasty/ premature one and need not be the correct one.
2. Compromised results: In case of problems the group members though interactions and discussions will understand the problem hold discussions and try to arrive at a consensus. However sometimes when consensus is arrived at, the group may perceive group harmony as more important than any given task decision. This results in a compromise on the solution arrived at. Under the circumstances this may not be the best solution but rather a compromised one.
3. Untimely decisions: One of the characteristic features of a group is that decisions can be taken very fast. But at a times leader of the group will as a rule of the thumb take a decision and then communicate it group. In such cases the very purpose for formation of a group is defeated. By following the thumb rule the group leader will be taking a unilateral decisions and not the united one. Moreover since the decision taken is single handedly and also arrived at quickly it may be an untimely decision.
4. Conflicts: Since the informal group exist to meet and satisfy the social needs of its members, there are chances of occurrences of role conflict. This problem arises when the individual group member becomes more committed to his/her own goal and seem to undermine their group members problems. In case of imbalance between the two and if the group as such is not constituted properly conflict may arise.
5. Dominance: Groups are useful for transmitting and sharing information. In case of a problem all members can discuss it together and decisions can be arrived at with opportunities for clarification. However there is is always a fear of a single person a dominant personality assuming unofficial authority.

Types of Groups:

1. Family life cycle:

Even though it is the family unit which purchases home appliances, toys, furniture etc, it is cannot be implied that all the families are in the market at the same time or for that matter at any time. This means that along with family decision making the family life cycle also plays a role in influencing consumer behaviour and also helps in gaining insight into consumption related behaviour.

People’s consumptions patterns of goods and services they buy and consume changes over their lifetime. As babies they consume baby food in the earlier years, most food items in their growing and mature years and specific diets in the later years. Individuals taste and preference related to cloths, automobiles, idea of re-creation etc. is also related to stage of the family life cycle and age.

Some writers like Gail Sheehy in his papers ‘predictable crisis in adult life’ and Roger Gould in ‘transformation’ has identified certain psychological life cycle stages that adults experience certain passage or transformation as they go through life. This means that changing consumption interest can also associated with these adult passages.

Thus marketers very often try to identify their target markets in terms of family life cycle and develop appropriate product and marketing plans. Further they also have to pay attention to the changing consumption interests that might be associated with these adult passages and develop marketing programmes accordingly.

2. Friendship groups:

An individuals for his/her protection self awareness and enhancement needs others around him/her Leon Festinger in his ‘ A theory of social comparison processes’ has claimed that there exists in the human organisms a drive to evaluate his opinions and abilities. If objective non social means are not available of others. In other words human beings prefer the company of other and these people’s opinion also matters to them. Consumers also enjoy the company of their friends when purchasing certain types of goods. Such friendship group influence the consumer especially products like clothing, fine jewellery, cosmetics and personal care items, food items etc.

The influence of the friends is also seen in buyers choice of food habits and drinks. Marketers have realised the important role played by the friends in influencing the consumption pattern of individuals in certain category of products and also involved in designing suitable marketing communication programmes. To mention a few advertisements- coca-cola,(all soft drinks) close up, colgate etc (tooth paste) rin bar , life bouy, life bouy plus,(soaps and detergents) Hero tribe ranger (cycle) Four square, Gold Flake etc. (cigarettes) and so on are based on themes of evolved around friendship.

3. Formal social clubs:

Human beings are generally considered to be sociable in nature, spend much of his/her time in group situations. They like to be associated with formal social clubs like the Rotary Club, Lions Club etc. The reason for their getting associated with such social groups may be to achieve a specific goal like making new friends, career advancement or pursuing a special interest or promoting a specific cause. Such formal social systems generally comprises of three elements

Activities are the tasks that people perform. Interactions are the behaviour that occurs between people in performing the tasks. And the sentiments are the attitudes that develop between individuals within the group. George C. Homans argues that these concepts through separate and closely related. A change in any of these three elements will produce some change in the other two.

In a formal organisation setup, job (activities) has to be done that require people to work together (interactions). These jobs must be sufficiently satisfying (sentiments) for people to continue doing them. With more and more positive interaction with each other, more and more positive sentiments will be developed by the people towards each other. As, this process continues there is tendency for the group members to become more alike in their activities and their sentiments.                                   

Markets releasing the role played by the formal groups on their individual members can work out a suitable sales promotion and communication programme and deliver the same to its target segment.

4. Shopping friends/groups:

According to psychology ‘group’ refers to the number of people who interact with one another are psychologically aware of one another and perceive themselves to be a group. In the same way, shopping groups can be assumed to exists because the friends or the group members need to relate to each other mainly because of the physical location of the people same perception of things matching personality, styles ,outlooks etc. These factors are responsible for the increase in the frequency of the interactions between the members of a shopping group.

So depending on the product category and target market segment the marketer should develop a marketing programme keeping in mind the shopping group who are likely to be involved in the decision making process and who will are also likely to influence the individual buyer.

5. Work Group:

This group can comprises of formal work group and informal work group. The formal work groups are those which are deliberately created by companies in order to fulfil specific tasks or functions clearly related to the total organisational goals and objectives. Based on their duration, the formal work groups can be of two types.

a) Permanent formal work group: Are part of the top management team, work units in various departments of the organisation staff groups proving specialised services to the line people in the organisation, permanent committees and so on.

b) Temporary formal work groups: Are committees or tasks forces created for a particular purpose/mission. They may be created to study and review the salary policies to suggest measures to improve the relationship between the union and management or to think of new products and services and so on. These temporary formal groups may exist till the tasks assigned to them have been completed. Very often the committee /temporary work group will comprise of members, who are already on the permanent payroll of the company. However till the completion of work assigned to the committee there will be close interactions between the members.

Markets must realise that the work group also plays a very important role in promoting their products and work out marketing programmes to communicate information about their product and its usage to the work groups.

The influence of culture is inevitable in our societal living. However, within a larger society, there are sub systems of values exhibiting variations in behavioral pattern. Marketers have begun to segment larger societies into smaller subgroups that are homogeneous in relation to cultural values.

The individuals of a specific subculture vary in their consumption patterns. They show variation in lifestyle, financial viability, food preferences, reading habits, purchase of specific brands in a particular product category, purchase time, store patronage, etc.

Multi Culture in India

India is said to be a country of multi cultures. It is so because of its long history of civilization. Different rulers have ruled the country. These rulers had different systems of governance and social practices. However, now there is unity in diversity which is important to any marketer in framing strategy for marketing.

The diversity has given birth to ever increasing number of States. India is a country with 29 states and six union territories. Each state has its own own culture. There are more than one subculture is found in some states. There are major religions such as Hindus, Muslims, Sikhs, Christians, Jains and Bhuddhas.

Each state and religion has its own traditional style of dressing, wearing ornaments, food preferences etc. Wheat and wheat products are consumed more in north India. People in south India consume rice. Certain communities do not eat non-vegetarian food, while among the other communities non-vegetarian food is popular.

Differences in Consumption pattern

Differences are found in the consumption pattern related to rural – urban sub-cultural division. Variations are found in preferences for food items, housing, clothing, home, furnishing, transport vehicles used, recreation and leisure activities, saving pattern, etc.

Economic Status – Classes of people in India

Economic status is another important sub-cultural variation. According to economic status, people can be divided into three classes:

1. The upper or affluent class,
2. The middle class, and;
3. The lower class.

The affluent class accounts for only a negligible portion of the society. Luxury items are consumed more by the affluent class.

On the other hand, the lower class spends more on necessary items. People in the lower class have very little purchasing power.

What is more important to the marketers is the middle class which forms a big chunk. Marketers have evinced a keen interest in the consumption pattern of the middle class. In spite of the regional, linguistic and cultural activities in India, middle class consumers follow a common pattern of the lifestyle and buying behavior. They are basically a security seeking class.

They need social security along with economic and emotional security. They respond favorably towards innovations, only if they are convinced about their security needs. They always strive to rise higher in social strata. They purchase products which add to the joy and comforts of their family members.

Thus, a study of sub-cultural variations will help, the marketer in designing marketing programmes suitably to target consumers of each subculture category.

Consumer behaviour deals with the study of buying behaviour of consumers. Consumer behaviour helps us understand why and why not an individual purchases goods and services from the market.

There are several factors which influence the buying decision of consumers, cultural factors being one of the most important factors.

Cultural Factors

Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture.

Example: In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to foreign countries where children are more independent and leave their parents once they start earning a living for themselves.

Cultural factors have a significant effect on an individual’s buying decision. Every individual has different sets of habits, beliefs and principles which he/she develops from his family status and background. What they see from their childhood becomes their culture.

Females staying in West Bengal or Assam would prefer buying sarees as compared to Westerns. Similarly a male consumer would prefer a Dhoti Kurta during auspicious ceremonies in Eastern India as this is what their culture is. Girls in South India wear skirts and blouses as compared to girls in north India who are more into Salwar Kameez.

Our culture says that we need to wear traditional attire on marriages and this is what we have been following since years.

People in North India prefer breads over rice which is a favorite with people in South India and East India.

Subcultures

Each culture further comprises of various subcultures such as religion, age, geographical location, gender (male/female), status etc.

Religion (Christianity, Hindu, Muslim, Sikhism, Jainism etc)

A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian bride wears a white gown on her wedding day. It is against Hindu culture to wear white on auspicious occasions. Muslims on the other hand prefer to wear green on important occasions.

For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely relish the same. Eating pork is against Muslim religion while Hindus do not mind eating it.

A sixty year old individual would not like something which is too bright and colorful. He would prefer something which is more sophisticated and simple. On the other hand a teenager would prefer funky dresses and loud colours.

In India widows are expected to wear whites. Widows wearing bright colours are treated with suspicion.

Status (Upper Class, Middle class and Lower Class)

People from upper class generally have a tendency to spend on luxurious items such as expensive gadgets, cars, dresses etc.You would hardly find an individual from a lower class spending money on high-end products. A person who finds it difficult to make ends meet would rather prefer spending on items necessary for survival. Individuals from middle class segment generally are more interested in buying products which would make their future secure.

Gender (Male/Female)

People generally make fun of males buying fairness creams as in our culture only females are expected to buy and use beauty products. Males are perceived to be strong and tough who look good just the way they are.

Even though it is the family unit which purchases home appliances, toys, furniture etc, it is cannot be implied that all the families are in the market at the same time or for that matter at any time. This means that along with family decision making the family life cycle also plays a role in influencing consumer behaviour and also helps in gaining insight into consumption related behaviour.

 People’s consumptions patterns of goods and services they buy and consume changes over their lifetime. As babies they consume baby food in the earlier years, most food items in their growing and mature years and specific diets in the later years. Individuals taste and preference related to cloths, automobiles, idea of re-creation etc. is also related to stage of the family life cycle and age.

Some writers like Gail Sheehy in his papers ‘predictable crisis in adult life’ and Roger Gould in ‘transformation’ has identified certain psychological life cycle stages that adults experience certain passage or transformation as they go through life. This means that changing consumption interest can also associated with these adult passages.

Thus marketers very often try to identify their target markets in terms of family life cycle and develop appropriate product and marketing plans. Further they also have to pay attention to the changing consumption interests that might be associated with these adult passages and develop marketing programmes accordingly.

The concept of household or family life cycle is important for marketers in segmenting the market. In 1966, William wells and George Gubar proposed eight stages to describe the family life cycle.

The following life cycle stages are typical of families:

1. The bachelor stage: young, single person under age of 35 years. Incomes are generally low since they have started careers, but they may have few financial burdens and sufficient discretionary income.
2. Newly married: Young couples, no children. If both spores are employed, they will have high level of discretionary income.
3. Full nest 1: young married couples with youngest child under 6 years of age. There would be greater squeezes on income because of increased on childcare. However, if they are members of a joint family, the level of discretionary income is likely to be high.
4. Full nest 2: young married couples with children from 6 years to 12 years of age. Better financial position because income of both parents rising. Children spend more hours outside their parents influence.
5. Full nest 3: older married couples with dependent teenage children living at home. Financial position of family continues to improve. There are increasing costs of college education for children.
6. Empty nest 1: older married couples with no children living with them, parents still employed. Reduced expenses result in greater savings and highest discretionary income.
7. Empty nest 2: older married couples with no children living with them and parents retired. Drop in income and couple relies on savings and fixed income from retirement benefits.
8. Solitary survivor 1: older single persons with low income and increasing medical needs.

Family decision making and consumption-related roles

When two or more family members are directly or indirectly involved in the decision making process, it is called family decision making. Such family decisions differs from individuals decisions in many ways. For example, if we consider the purchase of a bicycle for a child, some of the relevant aspects to think about can be: who recognizes the need for bicycle? How a brand is selected? What role the concerned child plays?

Joint decisions are more likely to operate in the early stages of family life cycle when both spouses are relatively less experienced. After gaining experience, they usually delegate responsibilities concerning buying decisions to each other.

Key family consumption roles

For a family to function as a cohesive unit, tasks such as doing the laundry, preparing meals, setting the dinner table, taking out the garbage, and walking the dog must be carried out by one or more family members. In a dynamic society, family related duties are constantly changing however, we can identify either distinct roles in the family decision making process.

For example, a family member may be walking down the cookie aisle at a local supermarket when she picks out an interesting new fat-free cookie. Her selection does not directly involve the influence of other family members. She is the decider, the buyer and, in a sense, the gatekeeper, however, she may not be the sole consumer. Products may be consumed by a single family member, consumed or used directly by two or more family members, or consumed indirectly by the entire family.

Dynamics of husband-wife decision making

Marketers are interested in the relative amount of influence that a husband and a wife have when it comes to family consumption choices. The relative influence of husbands and wives can be classified as: husband dominated, wife dominated, joint, and autonomic.

The relative influence of a husband and wife on a particular consumer decisions depends in part on the product and service category. For instance, during 1950s, the purchase of a new automobile was strongly husband dominated, whereas food and financial banking decisions more often were wife dominated. Fifty years later, the purchase of the family’s principal automobile is still often husbands dominated in many households. However, in other contexts or situations, female car buyers are a segment to which many car manufacturers are currently receiving a great deal of marketing attention. Also, in the case of financial decision making, there has been a general trend over the past decade to have the female head of household make financial decisions.

Husband wife decision making also appears to be related to cultural influence. Research comparing husband wife decision making patterns in the people’s republic of china and in the United States revels that among Chinese there were substantially fewer “joint” decisions and more “husband dominated” decisions for many household purchases. However, when limiting the comparison to urban and rural Chinese households, the research showed that in a large city such as Beijing, married couples were more likely than rural couples to share equally in purchase decisions. Still further, because of china’s “one child” policy and the ensuring custom of treating a single child as a “little emperor”, many of the parents purchase decisions are influenced by the input of their child.

In another recent cross-culture study, husband-wife decision making was studied among three groups: Asian Indians living in India, Asian Indians living in the United States, and American nationals. Results show a decrease in husband decisions and an increase in wife dominated decisions, going from Asian Indians in India, to Asian Indians in the United States, to American nationals. This pattern seems to indicate the impact of assimilation on decision making.   

No two individuals have same buying preferences. The buying tendencies of individuals vary as per their age, need, income, lifestyle, geographical location, willingness to spend, family status and so on. An individual’s immediate family members play an essential role in influencing his/her buying behaviour.

An individual tends to discuss with his immediate family members before purchasing a particular product or service. Family members might support an individual’s decision to buy a particular product, stop him for purchasing it or suggest few other options.

Family comprises of:

• Parents
• Siblings
• Spouse
• Grandparents
• Relatives (Cousins/Aunts, Uncles etc)

What an individual imbibes from his parents becomes his/her culture. In countries like India, where children are supposed to stay with their parents till the time they get married, the influence of parents on an individual’s buying decisions can not be ignored. What he sees from his childhood becomes his habit or in other words lifestyle. A female from an orthodox background would prefer salwar suits, saris instead of westerns or short outfits. In India, parents expect their children to dress up in nice, colourful outfits during marriages, festivals or other auspicious occasions. Even if children want to buy something else, their parents would always prompt them to buy traditional attire, thus influencing their buying decision.

The moment an individual enters into wedlock, his/her partner influences his buying decisions to a great extent. In most families, wife accompanies her husband for shopping be it grocery, home appliances, furnishings, car etc.An individual would always discuss with his/her partner before any major purchase. After marriage, individuals generally do not like spending on himself/herself; rather they do it for their partner or family.

A young bachelor would not mind spending on alcohol, attending night parties, casinos but the moment he has a wife at home, he would instead spend on household and necessary items. No bachelor likes to invest money on mutual funds, insurance policies, mediclaims etc but for someone who is married buying an investment plan becomes his first priority. Women generally are inclined towards buying toiletries, perfumes, dresses, household items, furnishings, food products while men would rather love to spend on gadgets, cars, bikes, alcohol etc.Both have different tastes but when they come together, they mutually decide on what to buy and what not to buy.

A Bachelor would never purchase Women’s Horlicks or Kellogg’s K special or a female perfume but when he has a wife at home; he would love to purchase them for his wife. A young girl who has never purchased shaving creams or men’s perfume all through her life for herself would not mind purchasing for her husband, father or father in law. A working woman would have different needs as compared to a housewife. A woman who goes to office would prompt her husband to buy formal trouser and shirt, office bag, make up products etc for her while a house wife would not like spending on all these as she does not require an office bag and so on.

Children also influence the buying decisions of individuals. An individual spends happily on toys, candies, ice creams, chocolates. sweets when he has children at home. Children in the family prompt their parents to subscribe to Disney Channel, Cartoon network and so on.

Individuals do not mind spending on medicines, health supplements, vitamin tablets, protein drinks if they have ailing parents at home.

The family is the main reference group that may influence the consumer behaviour. Nowadays, children are well informed about goods and services through media or friends circle, and other sources. Therefore, they influence considerably in the decisions of buying both fast moving consumer goods and durable items.

A person performs certain roles in a particular group such as family, club, organization, and so on. For example, a person may perform the role of a vice president in a firm and another person may perform the role of a marketing manager.

The vice president may enjoy higher status in the organization as compared to the marketing manager. People may purchase the products that conform to their roles and status, especially in the case of branded clothes, luxury watches, luxury cars, and so on.

The changing structure of family

 Three other basic functions provided by the family are particularly relevant to a discussion of consumer behavior.

These include:

• Economic well being
• Emotional support
• Suitable family lifestyles

Emotional well-being

Although families in the affluent nations of North America, Europe and Asia are no longer formed primarily for economic security, providing financial means to its dependents unquestionably a basic family function. How the family divides its responsibilities for providing economic well-being has changed considerably during past 30 years. No longer are traditional husband as economic provider and wife as home maker and child-rearer still valid. For instance, it is very common for married women with children in the United States and other industrial countries to be employed outside the home for their husbands to share household responsibilities.

The economic role of children also has changed. Today, despite the fact that many teenage children work, they rarely assist the family financially. Instead, many teenagers are expected to pay for their own amusements.

Emotional support

The provision of emotional nourishment (including love, affection, and intimacy) to its members is an important core function of the contemporary family. In fulfilling this function, the family provides support and encouragement and assists its members in coping with decision making and with personal or social problems. To make it easier for working parents to show their love, affection, and support to their children, greeting card companies have been increasingly creating cards for parents to give to their children (vice versa)

Suitable family lifestyle

Another important family function in terms of consumer behavior is the establishment of a suitable lifestyle for the family. Upbringing, experience, and the personal and jointly held goals of the spouses determine the importance placed on education or career, on reading, on television viewing, on the learning of computer skills, on the frequency quality of dining out, and on the selection of other entertainment and recreational activities.

Family lifestyle commitments, including the allocation of time, are generally influencing consumption patterns.

The word dynamics means ‘force’. Group dynamics means the study of forces within a group. Since human beings have an innate desire for belonging to a group, group dynamism is bound to occur. In an organization or in a society, we can see groups, small or large, working for the well-being.

The social process by which people interact with each other in small groups can be called group dynamism. A group has certain common objectives and goals and members are bound together with certain values and culture.

In organizational development, group dynamics refers to the understanding of behaviour of people in groups that are trying to solve a problem or making a decision. A good manager can act as a facilitator and assist the group in accompanying its objectives and arrive at correct decisions.

Because people gather in groups for reasons other than task accomplishment, group process occurs in other types of groups such as personal growth groups (e.g., encounter groups, study groups, prayer groups). In such cases, an individual with expertise in group process can be helpful in the role of facilitator.

Importance of Group Dynamism:

1. The group can influence the thinking of its members. The members are always influenced by the interactions of other members in the group.
2. A group with a good leader performs better as compared to a group with weak leader.
3. The group can give the effect of synergy, that is, if the group consists of positive thinkers then its output is more than the double every time.
4. Group dynamism can give job satisfaction to the members.
5. The group can also bring team spirit among the members.
6. Even the attitude, perceptions, and ideas of members depend on group dynamism. For example, the negative thinkers can be converted to positive thinkers with the help of the facilitator.
7. If the group works as a cohesive group, the cooperation and convergence can result in maximiza­tion of productivity.
8. Lastly, group dynamism can reduce the labour unrest and labour turnover due to emotional attach­ment among the group members.

Types of Groups:

Groups can be classified in a number of ways like by structure, by regularity of contact, by size, by membership. Sometimes groups are differentiated in terms of size or complexity but it is very difficult to state which group to be considered as large or small.

It is seen that in some groups a single member knows only a few of the group’s members personally or is fully aware of roles or activities each member has to play where as in small groups every member knows each other personally and are also aware of the specific roles or activities in the group. For example, each member of the college science club is likely to know others in the club and is also aware of their duties and interests within the group.

1. Primary Group and Secondary Group:

If a person interacts on regular basis with other individuals, then these individuals can be considered a primary group. Interaction can be with members of the family, with the colleagues, with neighbours etc., this means whose opinions are valued by that person, on the other hand, if a person interacts only occasionally with others, or whose opinions are not important, then this type of group is called secondary.

Difference:

Primary and secondary groups can be distinguished on the basis of perceived importance of the group to the individual and the frequency with which the individual interacts with them.

Formal Group and Informal Group:

This is the second useful way to classify groups on the basis of their formal nature. If a group has a highly defined structure, specific roles and authority levels and specific goals then this is called a formal group. For example, in an organization a list of all employees (defined structure), Managing Director, Manager, Assistants etc., (specific roles and authority levels), this shows a formal group.

Goals may be different for different organisations like to assist the homeless, working for the benefit of old people or marketing goals-Increasing sales, promoting the product etc. In these kinds of groups members have a vested interest towards a specific -goal, therefore, they are classified as a formal group.

On the other hand, if a group is more loosely defined, then it is an informal group. For example, four five girls who become friends in the school and now meet only once a month. For the marketer, informal social groups are more important because of loosely defined structure a more conducive environment is available for exchange of information to the members.

Membership Group and Symbolic Group:

Membership Group is a group to which a person belongs or would qualify for membership. For example, college alumni association, IMA, association of doctors, tennis club etc. Symbolic group is a group in which an individual is not likely to receive membership even if he/ she acts like a member by adopting that group’s values, behaviour and attitude. For example, for youngsters cricketers like Sachin Tendulkar, Sourav Ganguly etc. may constitute a symbolic group. They try to identify with these players by imitating their behaviour like the style or sometimes by purchasing specific brand of bat, gloves, dress, ball etc.

Even after this, youngsters probably will never qualify for membership as a professional cricketer. Now-a-days marketers are using the celeb­rity for advertising their products, so that people aspire to become like them after owning and using those products. Studying these groups is very important to the marketer as they exert the greatest potential influence on the consumption decisions of an individual.

Consumer Relevant Groups:

To understand in detail the kind of impact specific groups has on individuals, let us study six basic consumer relevant groups:

The Family:

It is seen, that from childhood an individual needs and consumption decisions are influenced by his/her family. Importance of the family in various decisions is based on the frequency of contact that individual has with other family members. Moreover, it is in the family an individual establishes a wide range of values, attitudes and behaviors.

Friendship Groups:

The immediate group which an individual forms after he/she moves out from the house is friendship group. Friendships are also sign of maturity and independence as they represent a breaking away from the family and forming of social ties with the outside world. They are classified as informal groups as they are unstructured and usually lack specific authority levels.

After family an individual’s purchase decisions are most likely influenced by friends. Friends fulfill a wide range of needs like they provide companionship, security and opportunity to discuss the matter which they can’t with the family members.

Friends opinions and preferences are very important for influencing an individual’s behaviour in determining the products or brands he/she actually selects. For example, marketers of products like branded shirts, jewellery and alcoholic beverages depicts friendship situations in the advertisements- ‘Green Label’ -T.V. commercial of alcoholic beverage. Consumers like to seek information from those friends who have values or outlooks similar to their own. The influence of friends will be more in a purchase decision one’s an individual finds greater similarity.

Formal social Groups:

Formal social groups, as the name says, lack intimate relationship and they serve different function for an individual. A person joins this group to fulfill goals like making new friends, pursuing a special interest, meeting important’ people specially for career advancement or also sometimes promoting a specific cause (working for the welfare of orphans).

This type of group interests marketers because members often consume products together, can discuss products or services or stores informally with other members and sometimes can even copy the consumption behaviour of other members whom they admire.

Shopping Groups:

Two or more people who shop together this can be either for food, for clothing or simply to pass the time-can be called a shopping group; people like to shop with others who are pleasant company or who they feel have more experience or knowledge about a desired product or service. Shopping with others reduces the risk that a purchase decision will be socially unacceptable, collective decision is the best in which none of the members knows about the product to be purchased.

Now-a-days, in-home shopping is more common, it consists of a group who gathers together in the home of a friend to attend a “party” which is arranged to demonstrate and evaluate a specific line of products. This kind of approach helps marketers to demonstrate the features of their products simultaneously to a group of potential customers in their surroundings.

Consumer-Action Groups:

Consumer-action groups can be divided into two broad categories: those that organize to correct a specific consumer abuse and then disband, and those that organize to address broader, more pervasive problem areas and operate over an extended or indefinite period of time.

Work Groups:

This type of group also serves as a major influence on the consumption behaviour of members as they spend a sheer amount of time at their jobs (around 48 hours per week). Formal work group consists of those individuals who work together as a team.

Their direct and sustained work relationship offers substantial opportunity for one or more members to influence the consumption related attitudes and activities of other team members. Informal friendship/work groups consists of people who have become friends as a result of working for the same firm, they may/ may not work together as a team. Marketers have recognized that work groups influences consumers brand choices and some­times even the store choice, so now they are redirecting their sales efforts to offices and plants during lunch-hour visits.