Ideas in People Management

Ideas in People
Management
12/11/2013
Shubhadha Iyer
Edition: 1.0
Revision: 3.0
Copyright © 2013 by Shubhadha Iyer. All Rights Reserved. The book Ideas in People
Management has been created, written and published by Shubhadha Iyer. This applies
to all terms and models that are specifically indicated in this document as original and
copyrighted material. Unauthorized Copying or Reproduction prohibited.
Ideas in
People Management
Copyright © 2013 by Shubhadha Iyer

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Ideas in
People Management
By Shubhadha Iyer
st
1 Edition, 2013
Revision: 1
Disclaimer: All case examples and scenarios presented in this book are fictional.
They bear no resemblance to any person, event or entity. Resemblance to any
person, event or entity, is unintended and coincidental.
Copyright © 2013 Shubhadha Iyer
PREFACE
The new century is gradually coming into its own. News articles are rife
with speculation about what changes the coming decades will bring.
Given the inputs from scientific and industry reports, chances are they
have predicted accurately.
Some changes will be dramatic and exciting, some will be painfully
mutative and others will be small utilitarian. There may be new
revolutions that no one can predict. Or, it may surprise us that some
changes are planned so methodically and incrementally, they don’t seem
like upheavals.
Flying Cars, Nano bots, Space travel, Quantum Computers, Genetic
marvels, solar power and alternative energy...…If we look for a trend to
model Mankind’s efforts it is perhaps the increasing ability to pull away
from the gravitational force. Successful inventions grow higher, lighter,
faster, smaller…. And so will life forms!
One thing’s for sure, the new century will grow and acquire a
character of its own. As changes gather speed the old comfortable rugs
and carpets will be rudely pulled out.
Oh No, even writing a Book seems quaint and old fashioned now!
Animated visual won over verbose long ago, now it’s 3-D. And future
devices will convey information directly to and from the brain!
Never mind, I’m not fazed, I still have brand new content and
groundbreaking original ideas never heard before, anywhere!
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Ideas in People Management
And it’s not all about changes, and more overwhelming changes.
Actually, this book is not about the things that change, but the Things
that Don’t Change!
Management Practices! Based on past patterns and rates of change
it is a safe assumption that Management practices all over the world will
see minimal improvements and fundamentally remain the same.
There will be lunar colonies, but Bad Bosses and Office Politics will
follow us to the Moon, Mars and beyond! Millions queuing up for those
much awaited Tickets to Space- but is it merit, or influential relatives
pulling them aboard? The problem is we won’t be sure.
And maybe you missed this- We now have hyper efficient, multi-
tasking, distributed and self-driven Work groups – so as some would
point out, we don’t even need Management anymore.
(That’s convenient!)
Flip comments aside, this book is about Management practices that
deal with people. The aim is to find solutions to enable improvement in
selected areas (e.g. Decision making) thereby raising the average
standards.
It’s true that elaborate systems and processes have been established
to manage people in work and business environments. And there has
been progress on many fronts. While everyone’s talking about the parts
that work well, how many challenges are thrown up if- for the sake of
improvements and growth, we took a different approach?
Why is decision making so sluggish and skewed when it comes to
people? How can work environments be improved? What challenges do
companies face when do they try to apply those progressive concepts on
the work floor? Clichéd as it may sound, these questions are there.
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On the bright side, these are challenges that present opportunities

for further innovation- for robust techniques to ensure fair and accurate
implementation of management practices; and for solutions that can be
applied in companies, to benefit and advance their HRM and People
Management initiatives in the right direction.
Historical Perspective
These trends have an interesting background known to most. Past
decades were shaped largely by Technology revolutions that took the
spotlight. Areas related to people, including Generalist Management
Consulting were over shadowed.
The previous century concluded on this note, and- in the author’s
view, not much has changed since. The push for better management
practices usually gets sidelined in the race for better technology,
communication and infrastructure.
Analyzing trends even farther back, we find this subject area was not
always such a second-runner. Ideas on Motivation and Morale, Group
Behavior and Perception provided solid building blocks for work places of
that era; and are still effective in modern settings.
But the same concepts however strong, cannot solve problems
across centuries. Traditional management assumptions that served
previous work groups can be hopelessly ineffective (It is not the concepts
above that we refer to as obsolete, but some others). And given the slow
rate of change, the view is that Management techniques should be better
prepared for complex situations, in the high flying work places of today
and tomorrow. At some point it becomes necessary to re-examine
outdated practices and evolve them for real time application in
contemporary work groups.
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An Average View
Not improving people management practices is not going to stop people
from doing business, which is good or- more accurately, mediocre.
On the other hand, making those improvements can provide great
pay-offs. Average standards will be raised and so will the credibility of
management practices. Experts already know this- People management
techniques do not undermine, but reinforce the growth in key functional
areas.
What This Book is about?
I know what you’re thinking, but it’s not about ranting against the system
with grandiose statements and more rhetoric (limited to the author’s
preface). This gives way to nuts-and-bolts Management theory, analysis
and ideas- a thought level I am more accustomed to.
Generalist thought in Management is a vast ocean in which every
eminent corporate authority has written to contribute his/her own ideas.
There are hundreds of approaches and one can almost understand if a
Manager gets a bit confused in practice. On the other hand, perhaps a bit
of serious Managerial introspection is a good idea!
What are the tangible improvements that can be made in an area
that seems so vague and difficult to get a focus on?
Well, this is one more book in the ocean. And in my quest for
answers, I did find scope for solutions that can be introduced non-
disruptively, based on a win-win approach as I always do. You’ll have to
read the book to understand what these are.
Opinions will never be forced on the reader. The aim is to present
both sides of an argument and arrive at solutions logically.
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Think of this as a handy practical toolbox that a Manager can

implement tomorrow at work – like the next new App!
There are brand-new Management ideas in this book, with
practical solutions. Certain parts are meant to be a launch pad for new
thoughts. The reader will find a huge assortment of concepts that anyone
who likes to delve into cutting edge Management theory will surely
enjoy!
My Background
I have thought about management concepts for almost two decades
now- certainly the equivalent of a Management PhD! Prompted in part by
the necessity to make changes happen in my own career; so I will admit
the initial motive was partly selfish.
The other motive was the challenge to improve at large. There are
many in Management who want to make improvements but so
entrenched in a densely interconnected system, they can’t. The idea is to
add some working tools to optimize those initiatives.
And in my view Management Consulting is still the most exciting line
of work, both Generalist and domain-specific. I have worked as a
Business Analyst with this goal in mind. Of course, the domain-specific
Business Analysis was separate from the people management interest as
the latter grew over the years, independently.
A Different View
Big successful companies in the past have been known to seek Contrarian
views and different ideas. This is a documented part of Management lore.
It reinforces the belief that especially in Management, it’s not always a
glorified view from the top that will work.
v|Page
But one from the sidelines, having discarded the influence of political
correctness, can work a lot better at times.
As the field in question is Management in modern work places, of
course it has to come with the requisite intelligence, drive, vision and
values.
My Contributions in Management So Far
I’m happy to note that my written views on management have, over the
years, been taken up in various parts of the corporate world!
From 2002 to 2007, I had suggested improvements in people
management with ideas on decision making, entrepreneurship and team
dynamics. The Management idea for “Clinical Decisions in People
Management” was initiated in my online publication, with an official
copyright acknowledgement in 2007. I should clarify those were just
concepts in formation.
It’s this book that represents my complete definitive analysis and
ideas which can be taken up- with due acknowledgement to me where
applicable. I would recommend it as a great value-add, comprising 30% of
my previous writing plus 70% brand new content (includes White Papers
on Objective Decision techniques and other solutions, written more
recently in 2011).
Note: - these solutions are designed only for Management scenarios
and not for application in any other context.
Copyright information is provided at the end to distinguish
traditional and existing concepts from new theories officially contributed
by me.
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CONTENTS
Preface ................................................................................................................................ i
Current Focus .................................................................................................................... 1
Current Challenges .......................................................................................................... 11
The Quality View ............................................................................................................ 41
Wonders of Modern Work Spaces ................................................................................ 53
Proposed Solutions .........................................................................................................63
Metrics for People Management .................................................................................. 89
Influences in the Work Environment .......................................................................... 116
Objective Decision Models .......................................................................................... 132
Active Decision Process ............................................................................................... 168
Situation Analysis ......................................................................................................... 183
Change and Control Mechanisms ...............................................................................203
Guided Objective Interventions .................................................................................. 213
The Innovation Cycle .................................................................................................. 240
The Future Manager .................................................................................................... 249
References ...................................................................................................................... 257
List of Copyrighted Information .................................................................................258
Appendix ....................................................................................................................... 259
LIST OF TABLES
Table 1 Standard Measures and Metrics ...................................................................... 94
Table 2 Failure Modes ................................................................................................... 95
Table 3 Case Example I- Errors ..................................................................................... 101
Table 4 Indicators for Effectiveness Index in Selection ............................................ 104
Table 5 Index Calculator ............................................................................................. 105
Table 6 Team State and Attributes ............................................................................. 108
Table 7 Team States ....................................................................................................... 112
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Table 8 Ranked Candidates ......................................................................................... 143
Table 9 Use Case for Objective Decision Review ...................................................... 150
Table 10 Active Decision Process – Case Example III ................................................ 180
Table 11 Objective Situation Analysis Examples I ...................................................... 199
Table 12 Objective Situation Analysis Examples II ................................................... 200
Table 13 Merits of Guided Objective Intervention in a conflict situation ............... 232
Table 14 Work Environment Problems vs. Solutions ................................................238
LIST OF FIGURES
Figure 1 High Impact Functions For People Management ...........................................5
Figure 2 Dysfunctional vs. Functional Work Conditions© ........................................ 17
Figure 3 Optimized Candidate Driven Placement Process ........................................72
Figure 4 Costs ..................................................................................................................83
Figure 5 Benefits............................................................................................................. 84
Figure 6 Process for E-.................................................................................................. 103
Figure 7 Team States model ........................................................................................... 111
Figure 8 Effects of Influence in the Business Environment- Pros & Cons .............. 124
Figure 9 Steps in Objective Decision Review (ODR) ................................................ 146
Figure 10 Objective Decision Review Model .............................................................. 147
Figure 11 ODR Thought Process ...................................................................................153
Figure 12 Decision Motives .......................................................................................... 157
Figure 13 Objective Decision Factuality Relevance .................................................. 160
Figure 14 Active Decision Trajectory .......................................................................... 169
Figure 15 Active Decision Elements ............................................................................ 172
Figure 16 Active Decision Process ............................................................................... 179
Figure 17 Decision Tree ................................................................................................ 182
Figure 18 Objective Situation Analysis Model ........................................................... 190
Figure 19 Objective Situation Analysis Model – Structural Basis.............................. 191
Figure 20 Objective Situation Analysis Framework .................................................. 194
Figure 21 Dynamic Evaluation Process ....................................................................... 198
Figure 22 OD Process Steps ......................................................................................... 216
Figure 23 Potential Sources of Change Resistance ......................................................... 218
Figure 24 Change Attempt Scenario ........................................................................... 231
Figure 25 Lifecycle of Guided Objective Intervention© ........................................... 235
Figure 26 Management Practices Innovation Hub......................................................... 248
Figure 27 Decision Table for Selection ...................................................................... 268
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1
CURRENT FOCUS
What is meant here by good vs. bad people management practices? To
clarify, we should first establish the structure and definition of our
domain; and the levels and boundaries being analyzed in the corporate
and business context.
The frame of reference for our analysis is Management Practices
related to people. We will focus on people-centric Management
techniques including decisions, change mechanisms and other methods
that we refer to as people management practices.
In our discussions “people management” could indicate a range of
practices across departments in the organization. Where Human
Resource Management (HRM) and People Management appear as more
localized entities they are specified as such.
As we know HRM and People Management provide the basis for
structural and functional entities. While HR is a well-defined presence
that provides resources to handle workforce requirements e.g. systems,
frameworks and processes; People Management has been regarded as a
more generic superset of HR. In current day practice, we find People
management often shares common space with HRM and has seen
growing popularity in recent years.
For consultative purposes we now take a Meta Management view of
people management practices and intersecting Organizational functions.
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People management practices are found to permeate the entire

organization as elements of it have been incorporated into specialized
and visible departments. Its effects are therefore indirectly observable
and evident in different functional areas.
For example, an IT Manager officially responsible only for software
development in a company could spend 30-40% effort in managing
people on project. From the Testing Project Manager to Sales Director,
people management techniques are ingrained in various Management
and related roles. There is of course a differentiation based on the
organization level, designation and industry domain.
In agreement for now with standard definitions and practice we treat
People Management as a functional classification (unless otherwise
specified). It involves resources that occupy Management roles or
exercise people management authority officially and unofficially.
Business Leadership roles are included in certain parts of this discussion.
HR and Organizational Behavior studies provide a comprehensive
classification of Managerial roles; and Management skills and functions
can be referred from them. HR Managers are expected to have the
specialized knowledge and subject expertise associated with this area.
And as discussed above, other Management resources in the organization
apply it in varying degrees for managing people.
Functional resources for people management would include the
applications, frameworks and processes set up for it-- e.g. HR
Management Systems (HRMS), Recruitment and Hiring Processes,
Workflows for Performance Appraisal, Checklists for Employee Training
and many more. These are more easily identified as being under the
purview of HRM. The above definitions are expected to be in general
agreement with current standards and form a basis for further
discussion.
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APPROACH
Our approach starts from a high level management area which is HRM
and People Management; this leads to our focus on Management
techniques such as Decision Making. It involves analysis of root causes for
what we regard as some persistent generic problems.
Theory and analysis in these areas has traditionally centered on the
study of workforce factors, aimed at improvements in performance and
productivity at the team or group level. In this document, the focus is on
the Management level- applying optimized and workable management
techniques to workforce management. Therefore Management quality
and effectiveness factors are given primary importance as indicators for
improving people management.
In Management studies the link between effectiveness at various
levels (organization, work group, individual) and productivity has already
been established. Here, we define our Management effectiveness
parameters for Productivity- but under optimal working conditions.
Improvement objectives are to be met through advanced management
techniques and other specialized methods.
Workforce factors do enter our analysis at various points. The reader
will find Models that consider work performance and productivity, dealt
with from the viewpoint of how Management practices affect and guide
them- or not.
It should be noted that original Models and Theories formulated in
this book are at hypothesis stage; in other words, theoretical arguments-
but considered accurate enough for working application. In the absence
of empirical or observational data, arguments and analysis are concluded
with solution Models; presented to the level relevant for business and
work situations.
3|Page
In-depth academic analysis or reference to research data is avoided

here, though certain parts could certainly be taken up as research
initiatives (with required permission). Without a doubt, this area offers
vast scope for advancement through Management research.
While References could not be cited for all the existing theories from
Organizational Behavior and other fields that went in for analysis, sources
for certain topics and terms have been noted. The Copyrighted section
takes stock of terms and concepts formulated in this book.
The current effort is geared at exploring ideas and concepts for the
development of specialized solutions. Analysis is generic enough to allow
application across geographies and industries (except where noted).
There is of course, space for more specific solutions including company
and industry-specific case studies. However, Case Studies are not
included in the current scope. As an alternative, Case examples and
scenarios are provided throughout the book to support detailed analysis.
There are chapters that prepare the groundwork (such as this one);
where others take off with creative but methodical solutions in decisions,
change methods and situation analysis; and then the final chapter, that
can only be described as a freewheeling joyride through uncharted
territory!
It is a non-disruptive approach that allows solutions to be introduced
by individuals and groups involved in Management at micro-level; or
together with top-down initiatives. Pre-implementation analysis and
planning is required, which is not expected to be time-consuming.
The view here is that for people management practices, small
improvements that eliminate slackness are feasible even without
requiring a major overhaul. That means even micro-level improvements
can achieve a significant pay off with minimal risk.
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HIGH IMPACT FUNCTIONS

The following key organizational functions involve people management
to a greater degree; and are therefore directly impacted by the quality
and effectiveness of these practices. While a few of these are formally
under HRM, others would be familiar as organization wide functions.
 Team Management
 Selection, Hiring and Placement
 Rewards and Recognition
 Change Mechanisms and Transitions
 Conflict and Issues Resolution for People
 Leadership and Employee Development
 Crisis Resolution
It follows that the above areas would take a direct hit from problems
and errors in people management practices, with a marked reduction in
their accuracy, consistency, reliability and a possible waste of time and
cost. In the different sections of this book, the reader will find discussions
and analysis that deal with different challenges in the areas listed above.
FIGURE 1 HIGH IMPACT FUNCTIONS FOR PEOPLE MANAGEMENT
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MANAGEMENT TECHNIQUES IN FOCUS

Management of people in work environments involves exercising
various methods and techniques. For in-depth analysis we consider a
subset of these critical (KRA’s) for effecting improvements:-
 Decision Making
 Change and Control Mechanisms
 Situation Assessment and Analysis
When it comes to Decision Making we observe that management

decisions are a critical area in general. Companies profit from optimized
Management decision-making in business and technology. But this often
results in exclusive focus on domain-specific decisions leaving people-
related decisions relatively under-developed.
On the bright side, these functional gaps provide an opportunity for
devising innovative methods in people-centric Decision making. Chapters
that deal with Proposed Solutions start by diverting attention to an area
that poses many interesting challenges in current business environments-
Decision Techniques.
There is scope for new Management solutions in other areas as well.
After Decision Making, we consider Change and Control mechanisms and
Situation Assessment and Analysis as the other fundamental, ‘mission
critical’ requirements.
In many cases an organization has to take an integrated view of
these problems, many of which are interrelated. To allow for this,
chapters span a wide range of topics relevant for people management.
Resulting solutions and ideas in this book are meant to be applied by
organizations to benefit the management of work force.
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Though new ideas and solutions are explained in detail, limited space
did not allow us to explain established concepts from scratch. It is
assumed the reader is already familiar with the management concepts
referred to in the analysis; otherwise it would have to be looked up from
widely available sources (regret the inconvenience!)
STANDARDS FOR PEOPLE MANAGEMENT

Having defined and delineated, we now want to be able to measure and
assess the people management practices. A quick survey of the landscape
shows the knowledge areas currently available for establishing standards.
 The presence of HRM and People Management within the
organization was previously outlined. Companies formulate policies,
procedures and guidelines to govern their internal standards for
workforce management. They are also known to set up frameworks,
systems, processes and methodologies-either developed internally or
adapted from industry models, all of which goes to standardize these
practices.
 There are industry models that would apply various types of
assessment. The People Capability Maturity Model (P-CMM) provides
a framework and guidelines for organizations to manage and develop
their work force.
 And then there is Corporate Governance- though not directly related
to measurement of standards, it does consider the challenging
subject of Management performance; and involves various
mechanisms and controls meant to assess it.
 At an academic level, the field of Organizational Justice has
forwarded theories and models that analyze highly significant pivotal
issues including perceptions of fairness and justice, distributive and
other classifications of justice; and morality.
7|Page
 We should further note that in the external environment,

Organizations and Networks do exist with an HR Focus-
specializations include Recruitment, Training, Payroll and Leadership
Development. Beyond this, a few may be prominently positioned in
industry to provide a stronger focus for the development of more
advanced People Management solutions.
THE INTENDED AUDIENCE?

Anyone with an interest in theoretical or practical Management. We have
solved some problems in this book; but also hope to have brought out a
few complex problems (not to mention frustrating, recursive and with
irritating contradictions).
Who said people management was easy?
As you might have guessed, this is a critique. In QA, we’d call it
“Stress Testing” with “Risk Analysis”. Yet the criticism stems from a very
optimistic vision and firm belief, that the system is capable of making
positive changes and improvements. Anyone who can think at an
Organization level should be able to relate to it.
TOUGH QUESTIONS FROM A CRITIC!
Q1. Why is the current focus on People Management of all areas?

The focus is on people-centric Management techniques. The HRM
and people management orientation provides enough depth and
span for us to start at a high level and focus on organization wide
practices.
As an extensible ‘superset’, this people management approach will

allow us to examine new ideas and solutions with minimal
interference to the day to day working of the organization.
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Q2. Here’s the confusion. “People-centric techniques” usually conjure up

images of people networking and bonding; shaking hands and back-
slapping, popularly associated with “feel good” factors that are known to
work positively with people. But this approach based on “management
effectiveness”, etc. seems to be totally incompatible with that! Care to
explain? Is this about increasing “workforce productivity”- or improving
people practices?
Let us clarify that as the term “people management” implies, it’s

still about- values that inspire and motivate; morale building;
working conditions that allow people to work with respect and
dignity; and methods that recognize talent, hard work and sincerity.
We agree “feel good” factors are important; handshakes do have a
place in Management practices, so do motivational speeches to an
extent. This approach does not mean the removal of “people-
friendly” and we do recognize their role.
We aim to add more scientific and quality-focused methods to
people management practices; and methods to apply them
effectively on the work floor (Previously suggested by this author in
2006). Specialized techniques are required to implement positive and
balanced working conditions, allowing people to maximize their
potential; and to enable growth for those deserving. By doing so we
make sure that Management practices are driven by principles of Fair
play and Ethics; that decisions take note of performance and merit in
all cases; and are not left to influential groups to monopolize.
These conditions are essential for organizational initiatives to be
headed in the right directions, as these are in turn directly linked to
profit, productivity and growth. To enable this on demand, you will
require Management expertise i.e. Management Effectiveness.
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Consider the Organization vs. individual – While companies want to

maximize productivity with minimum disruption; the modern “Y”
Employee will thrive with the best possible working conditions. The driver
is still performance and productivity but the conditions have to be
optimal for people- ethical, progressive. And we take a view of
Management acting as a key benevolent stakeholder in achieving that
balance. It’s an equation in which workforce factors must be kept in mind
constantly while the people factors also need to be tracked.
Working conditions or work conditions as referred to in this book include

not just physical conditions but also the work environment, atmosphere and
culture, with emphasis on the impact of organization and management
practices on the work environment.
SUMMARY
We started by defining the frame of reference for our analysis with a
comparative look at the increasingly important roles of HRM and people
management.
The high level approach adopted for our analysis was presented.
Other sections outlined organizational functions that exercise people
management techniques intensively and are most likely to be impacted,
followed by a classification of the management techniques that we will
focus on for analysis and solutions. Then the existing standards available
for people management were summarized.
Finally, thanks to our in-house Critic who is there to question almost
every statement in this book, we were able to examine and clarify some
more contentious issues.
The next step involves a discussion of current challenges in people
management.
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CURRENT CHALLENGES
Now we take a closer look at the practical challenges and hurdles
encountered in real time. We draw attention to areas that tend to see
the most discrepancies and contradictions; and result in bringing down
the effectiveness of people management.
The chapter concludes by listing out some key problem areas based on
which solutions are formulated in later sections.
HISTORICAL VIEW
Traditionally, people management areas were formed largely out of
psychological and behavioral elements. Organizational Behavior (OB)
involves the study of events and behaviors of the group, individual and
the organization.
OB models generally follow the behavioral science approach. One could

say they worked to support a better understanding at macro and micro
levels, with a primary focus on factors related to workforce performance
and productivity. OB Models have formed a basis for building the
knowledge and academic development in these areas.
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RECENT TRENDS
Past trends in the workplace show that best practices in people
management were getting absorbed into other visible functions of the
organization. And these functional areas have advanced quantitative
tools and techniques to work with- as evident in the Decision Models for
Project Management, Finance, Software Quality; all of which Managers
will agree, provide measurable results that directly link to performance
and productivity.
Present day reactions are likely to be progressive where project,
product or service issues are concerned. The Management will
immediately initiate efforts to assess and improve in these areas. They
already have the Decision models and methods to do that.
The contrasting view on methods for people related decisions- this
remains a grey, nebulous territory and tough to get a focus on. Advanced
Management thought exists as isolated silos in Business School papers
and academia. When a good practice slowly enters the mainstream, it
leaves enough margins for variability and blind spots. In short, confused
responses to Management practices that deal with people- are in sharp
contrast to real progress being made in domain-specific fields.
Well, it does indicate a positive trend as far as the domain-specific
areas are concerned, so why are we complaining? Why try to capture
people-centric practices separately? The answer is in the type of
dysfunctional situations that can arise, if we don’t. In terms of the people
factor, these situations are more complex than we assume.
Organizations assume that- as the domain functions are optimized in
terms of decision tools and change methods working for IT/ Technology,
Marketing, Finance and other departments, this level of advancement
applies to people practices as well. But wait….it was never applied there!
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Some cracks are revealed when situations that require (and assume)
robust people practices, actually suffer reduced effectiveness. Domain-
specific areas avoid addressing them- because people management is not
their domain. So nobody deals with this dysfunctional grey zone. The
problems repeat, and continue, sometimes multiply.
 The view is that more focused and specialized solutions are
required- not just for implementation indirectly through other
functions- but also directly at the people management level.
 As things stand, there are work environments where work
standards are extremely high in terms of the technology, science,
and industry expertise – but their advancement in terms of
Management practices is -not as high!
 We need robust techniques to ensure that people practices get
implemented fairly and accurately. We need methods to minimize
variations, and not allow stagnant situations to persist.
KEY RESULT AREAS

The quality and effectiveness of people management practices hinges on
certain fundamental areas. If we want to change a dysfunctional situation
to a progressive one, we would encounter maximum defects and
inefficiencies in these areas; and therefore, need to prioritize them for
improvement.
Of the many Challenges thrown up in the face of management
improvement – we pick defective decision making, inefficient change and
control methods, and lack of micro-level situation analysis. The solution
chapters will take a closer look at the areas we regard as KRA’s.
The following sections will first confront some mundane situations
from the Workplace and business perspective.
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Challenges include- role requirements, defining measurable standards

to assess working conditions, job placement and selection/ hiring, finally
scaling the heights of leadership and entrepreneurship.
This is by no means a comprehensive study of all people practice
challenges, one may encounter many more- Problems that can be viewed
as side effects of the way work gets done in current business and work
environments- exciting, fast-paced and diversified like never before; but
still tending to be short-sighted and ineffective when it comes to people.
PEOPLE MANAGER ROLE REQUIREMENTS

HR is positioned to make people decisions in select areas including
recruitment, orientation and training. In a typical scenario HR will recruit,
provide orientation to the new hire and coordinate initial placement.
Beyond this point, the work group-specific management takes over.
In the absence of a people management resource (other than HR) the
work-group manager also acts as the people manager; performing
domain-specific as well as people management. This could create some
challenges at the work group level, explained in the next section.
As an incidental point we note that other resources may be positioned
to take on the people-related tasks from time to time. Usually these are
not official or dedicated roles; but with enough experience to provide
support and guidance for a limited time. For example, the Training
Manager manages a trainee team for the duration of a course/program;
or an external Management Consultant guides the team through a
transition.
These alternate resources may have the time and bandwidth to play
an active role in people management, thereby helping to raise standards
through the scheduled programs or training sessions held in the
organization.
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CHALLENGES FOR THE WORK GROUP MANAGER

The work group Manager who is typically, a technology or business-
focused Manager- is under extreme pressure to deliver results in cost-
conscious and competitive environments.
Project-specific issues and decisions demand prioritized attention;
and so does delivering results for the clients. S/he has to make fast
optimal decisions in domain-specific areas, e.g. a Manager who decides
on an unsuitable Enterprise software or Cloud vendor, or sets an
impractical business strategy or expansion plan—cannot stay in business
too long. But this would result in the finer aspects of people management
being relegated to second place!
The end result- What a Manager is actually able to implement on the
work floor is often ad hoc, impromptu and under time constraints.
The view is that methods to introduce added layers of quality and
precision could provide significant benefits in this type of situation.
CHALLENGES IN THE MINDSET

“I liked him, so I hired him”; “We promoted him to group manager- he
seems in with the crowd!”; “S/he does not know enough people to be
promoted!”; “He’s good with his moves, only does what they want him
to!”... ”I’m the Boss, I can do what I like, how dare you question my
ways?”; “I have a feeling they just don’t like this person, he’s never been
promoted. So there is absolutely no way we can!”…
“I don’t want to decide on this matter, I choose not to!”
This mindset is so pervasive, that we assume it normal to think this
way, dismissing the fact that it was never aligned with best practices. And
this trend is especially critical now.
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With rapid cycles of Business restructuring, expansion and

Entrepreneurship there is a proliferation in the number of Business
leaders, CXO’s and Managers. “Nouveau Management”– probably
outstanding and talented achievers in their fields, but not specially
trained or conditioned to deal with complex people-related problems or
situations- do get positioned to make decisions regarding people.
There are as many Managers with the wisdom, potential and
inclination to manage people well. But with no well-defined methods at
their disposal, and with no corporate push to implement any major
improvements in this area, they are left to work with outdated devices.
CHALLENGES IN THE WORK ENVIRONMENT

At the topmost tier the organization will have policies and guidelines that
aim to implement fairness, equality and similar standards; then the rules
and procedures.
Stepping onto the work floor, it becomes more of a challenge to
specify standards relevant to the management of teams and groups.
Existing standards are often limited to the surface examination of
workforce productivity and performance evaluation. Aspects of a work
environment such as team configuration and team dynamics, micro-level
decision making and change methods play a dominant role, but here is
the challenge- they are not easily assessed, measured- or managed.
That means an organization with advanced strategies and
progressive policies at the top- can still fail to translate best practices to
the work floor.
In the Dysfunctional vs. Functional Work Conditions©, we
consider a model that provides the usual surface measures of
performance and productivity; with additional criteria to differentiate
working conditions as progressive or functional from dysfunctional.
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FIGURE 2 DYSFUNCTIONAL VS. FUNCTIONAL WORK CONDITIONS©
Dysfunctional scenario: Low performance and productivity conditions (D1)

can be observed and measured with corresponding metrics. In contrast, D2 and
D3 refer to “grey areas” that become more difficult to assess and identify in
practice (but are nevertheless significant). There is also interplay here with the
D3 and D2 type of conditions reinforcing and adding to the D1 problems.
Functional scenario: At the surface, F3 and F2 reflect positive conditions
that support high productivity F1, visible in performance and productivity
metrics. But similar to the above case, F3 and F2 are more difficult to assess and
measure.
Note: - In certain cases, high productivity can happen even under negative
working conditions e.g. some work groups can manage a high work output even
under conflict. However some fundamental capabilities – decisions, basic
change methods, analysis – will remain associated with high productivity (F1).
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The main purpose of the model is to demonstrate the many levels of

people related factors that play a part in the work environment. For
exceptions refer Functional vs. Dysfunctional states: Exceptions.
 It is important that underlying factors in the work environment
are observed and analyzed in terms of their impact on
Management Effectiveness.
An efficient Manager would intuitively make efforts to move from
the Dysfunctional to Functional states. However, we can see the only
measurable criteria for enabling improvements are the visible layers- F1
and D1 i.e. Performance and Productivity.
The Manager may try to work improvements at a more fundamental
level; but for lack of specified standards, has to stop where data and
standards are not readily available. Ultimately, relying only on top-layer
productivity data undermines the speed and sustainability of these
improvements.
 A key challenge we encounter right at the start is in being able to
specify work-floor standards of dysfunctional vs. progressive work
conditions.
 An organization that has the capability to recognize such
conditions in D2, D3 to F2, F3; and to that end has set up criteria
and standards to manage them- has taken a step in the right
direction.
But even then, standards stated in qualitative forms do not provide
grounds for quick decision making or constructive action.
So the next question we should ask is- Do the existing benchmarks
and procedures enable us to correlate high level objectives and best
practices- with statistical data and information? To be able to answer
this, we need more actionable standards and metrics.
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As we know, Metrics are readily available in customer-focused areas;

and those linked to workforce performance, productivity and profit. But
again, not enough to enable accurate assessment of work conditions and
that means- insufficient for effecting improvements at the level of people
management.
The model Dysfunctional vs. Functional Work Conditions showed that
in addition to productivity, there are factors related to team
configuration and dynamics that come into play, and need to be
considered. For example, can we assess an Employee’s morale and
motivation levels, or the conflict levels in a team? Do we have techniques
to accurately gauge work conditions and- if dysfunctional, transition it to
progressive states?
These questions are not meant to complicate matters. The view is
that- It is not a formidable challenge to specify standards and formulate
insightful metrics; provided the goal(s) and problem are clearly defined.
These areas do need to be developed through innovation but in the
meantime existing tools and techniques can be leveraged.
To start with,
a) Any of several existing applications can be improvised to develop
relevant metrics. For example, motivation and conflict levels can be
tracked through a Feedback process. To be effective, it should link to
other processes and systems that enable the feedback to be acted
upon.
b) Metrics and specifications related to work conditions, team
configuration and team dynamics should be incorporated into
management and operational procedures.
c) From the management perspective, standards can be formulated based
on the work environment and industry best practices.
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The above is a simple approach to start with. As more specific criteria

and standards are incorporated as part of ongoing reviews, planning and
instructions- they should see application in decisions and assessments.
THE MORE FAMILIAR CHALLENGES

High Impact Functions were outlined in the previous chapter, where
people management techniques have greater visibility. We now examine
some common problems associated to these functions; viewing them as
areas that demand accelerated improvement in response to the growing
complexities.
THE SELECTION PROBLEM
Faced with a talent crunch, the pressure of finding talent in new
emerging fields; and large numbers of people vying for jobs and career
opportunities- Companies seem to have reacted by throwing up their
hands.
Across the ladder, appointments are made based on a person’s
networking circle; contacts and connections; friends and family.
Individual talent, motivation, merit and effort play a secondary role in
today’s corporate selection methods. This is a classic example of how
informal methods can dominate and undermine official methods- and by
doing so the problem will get worse.
These growing imbalances in selection cannot be left to the forces of
nature!
Drastic improvements in Selection methods are required to deal with
current challenges- be it a stampede of 1000+ applicants per job, diverse
applicant pool, widely different backgrounds; or deciding between-
candidates pushed forward by enormously influential groups vs. those
who have only talent, hard work and motivation on their side!
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We know that selection often goes beyond skills testing. Multiple

types and layers of talent assessment may be involved. And in these
cases the presence of a more complex, qualitative component (e.g.
Personality and Behavior assessment) should not mean- reduced
accuracy; nor should large Numbers overwhelm us to point of neglecting
quality.
Importance must be given to the design of robust, innovative
Selection techniques to recognize and evaluate different types of talent.
Indeed, accurate evaluation of varied skills and career competencies
can prove to be the most exciting field in the modern business landscape!
HIRING IMBALANCES
Let us consider hiring practices. These processes should be designed to
filter out the many types of imbalances and biases that tend to creep in.
We consider some imbalance problems. What if- people are hired
through the same channels, with more attention being paid- for example,
to network- based referrals? The problem is not in the Referral network,
but in ignoring other valid channels.
Identifying this as a form of restricted or one-sided functioning of the
concerned method/ process, we note that it can impact selection, hiring,
placement- and management practices in general! Diagnosing the
problem is complicated by the fact that it may start on a constructive and
valid basis, but give way to dysfunctional modes for lack of active
management along the way.
For example, a company wants to build up its Referral system; but as
this initiative gathers speed, hiring resources close their minds to
evaluating the merit of non-referred applicants. Resources and standards
are built up around the referral system, while direct selection processes
are left under developed.
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Regarding the biases that interfere with hiring, Company policies are
increasingly aware of the need to overcome traditional biases; but the
question is, are methods designed to minimize new-age biases as they
appear? For example, a type of funding bias- What If a powerful investor
group influences these processes to exclusively hire their own favorites?
To minimize such imbalances and biases, we need the routine quality
focus to work with advanced and comprehensive management solutions.
So what do imbalances and biases in hiring usually result in? The
result is hiring decisions being skewed in favor of a particular type or
demographic, in ways that will deviate from better standards. The most
obvious effect- the company will not get the optimal mix of competitive
talent it planned for.
There can be other adverse effects of hiring imbalances, we consider
just one -
 Encouraging only those who fit a convenient stereotype often
goes hand in hand with a compulsive “follower” mentality in the
corporate world.
 We view “followership” as a trait with mixed results (as many
such behavioral traits tend to be). While this behavior works for
certain segments of the workforce, it can turn counterproductive
at Management and higher levels. The result is initiatives not
being headed in an optimal direction, to the extent that even
strategy and objectives can be impacted.
PLACEMENT VS. RECRUITMENT
HR functions such as Recruitment are driven by the quality and
effectiveness of an organization's practices. In contrast, Placement
services are mostly located outside the organization, partnering with
them in recruitment or other initiatives.
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Therefore placement figures as a high impact HR function for

addressing workforce requirements not just at a company-specific level,
but on a wider scale- at Industry level.
One part of the Talent Supply Chain is Recruitment, the other half is
Placement. Placement services can have a stabilizing effect in the
external macro-environment, in the face of unstable and volatile
conditions. From placing people laid off due to cyclic variations, to filling
skilled manpower shortages- intelligent placement practices can and do,
make all the difference.
Placement is the critical link that maintains the balance between
talent crunches and talent wastage! Yet this remains under-developed
and under-managed territory. A classic example of numbers being given
undue importance over the quality and effectiveness of these services.
A placement agency helps a company recruit 1000 candidates-
should we stop at this astounding number? Or, ask- Were the placement
objectives met in terms of– accurate and unbiased assessments, with
each candidate evaluated and matched with the right job?
Though characteristics of Placement services would vary with the
geography and industry; some generic challenges are common across the
world e.g. India and US. We make a considered generalization here to
state that Companies tend to not take Placement practices seriously
enough!
As it is such a high impact function, strategic and Industry initiatives
are surely required, to improve the quality and effectiveness of
placement processes and introduce working standards.
Now we consider a few examples in the India placement scene. On
the positive side, College/ Campus Placement services are available for
students (going by the statistics).
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But there are fluctuations, and one hopes that variability in

standards can be reduced, and steps are taken to maintain the
momentum. Training Institutes also offer placement services in many
cases. And there are skilled and business-savvy Recruiters in the market.
However, if we study the segment of mid-to-senior level
professionals- for example, motivated professionals going through a
career transition; or those caught up in a mid-career impasse- these
segments have very limited options. It is here that we find a shortage of
standardized placement solutions for individuals!
These segments are often dependent on informal methods for
placing themselves e.g. through contacts and connections.
Placement events- initiated now and then, usually cater to a
particular segment or demographic. We agree that segment-based hiring
does provide benefits, addressing Hiring requirements en masse; and it is
required in some cases. However, these programs should be designed
with care to avoid the type of one-sided functioning discussed in Hiring
Imbalances e.g.-An aggressive placement drive launched to hire women
professionals returning to work after an extended break (over five years)
refuses to place a motivated and deserving candidate who wants to work
after a shorter break of less than a year!
The placement initiatives launched from time to time, indicate that
there are perfectly good placement companies in the market having the
business-savvy and HRM know-how to find jobs for people. But then, why
so much inertia when it comes to taking up parallel processing for
individually focused services?
Exclusive focus on segment-based or client-driven hiring and
neglecting individual goals- is this an optimal strategy?
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The Placement Challenges outlined below are generic, but we note

that some problems may be more pronounced in a particular geography
or industry.
 We need Recognition and awareness of Placement as a distinct service
in the corporate world. By definition, placement involves formalized
treatment of candidate goals and competencies; and the task of
matching these with company requirements.
 In practice, placement is often confused with recruitment. And
mistakenly assumed to depend entirely on organizational hiring
requirements, when it can be positioned as an independent value-
adding service.
 The problem- Exclusive focus on Client-driven requirements with not
enough importance for Candidate –driven placement.
 Placement should follow a Holistic approach to finding the right job for a
candidate. Instead, it is often driven solely by client company demands,
with recruitment drives playing a dominant role and individual
candidate aspirations taking a backseat. A strange situation, considering
that the business model for Candidate-driven Placement can be so
lucrative and beneficial! (This model further detailed in a later chapter
under Placement Solutions).
 Not enough emphasis on quality and efficiency of placement services
provided in each case. The Talent Supply Chain is attenuated and under
standardized in parts, with extreme variations. We require an emphasis
on formalized methods instead of over dependence on informal
methods.
When faced with the fundamental quality question- Can a talented

individual looking for a good placement, avail of focused placement
services that follow certain standards?
We need some answers here!
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To summarize the discussion on Hiring, Selection and Placement-

 Growing challenges in Selection and Hiring should serve as grounds to
introduce advanced methods. This area offers immense scope for
cutting-edge solutions in fair and unbiased Talent assessment and
evaluation.
 The Talent Supply Chain should be developed and optimized. Consider
the Company that has a top-notch recruitment process; but
substandard internal placement (or it could be the other way round).
Similar disparities and irregularities existing in the same heterogeneous
process should be minimized.
 The business of locating Job opportunities and Placement is one that
must be taken seriously, and driven forward with values and vision.
CUSTOMIZING FOR ENVIRONMENTAL DEMANDS

Once a management idea has gained popularity, it may grow into a
glamorous “fad”. And everyone wants to follow that immensely popular
idea- but without considering the specific situation and organizational
parameters involved. A common assumption when implementing a
management methodology or concept is that- it will work under all
conditions and all types of work environments.
It is important to understand the environmental conditions in which
a process/method is expected to work with required levels of quality and
effectiveness. For example, there are people-related tactics that deliver
results in dynamic, volatile and self-driven work places; but are not as
effective when straightaway assumed to work in- structured and
organized environments (or vice versa).
This impacts formal/informal tactics and behavior patterns. Practices
that originated in the primary environment when expected to work the
same in the secondary environment may not deliver expected results.
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Discrepancies are evident especially with informal tactics in business

and work (e.g. networking practices). In contrast, standardized methods
would tend to follow a more expected behavior.
We take the familiar example of Job and Career strategies in two
different work environments- US and India. Do the same career moves
that work in one environment, work in the other? We find many aspects
that don’t. And yet, it is often assumed that they do!
Professional Networking is one such - popularly viewed as a dynamic
path to business and professional growth. In US environments it is known
to yield expected results; whereas in India (if one examines closely) -its
effectiveness is limited to exclusive forums. Networking methods do not
work the same across these two environments.
A host of other Career strategies and tactics are wrongly assumed to
work the same way, across different work environments- but it’s not as
simple as that. One must study and analyze the environment; then
optimize a particular method to work for it. The drawback is in not
considering factors that differentiate the secondary culture or
environment, thereby reducing management effectiveness.
We find this effect widespread enough and also deserving of
improvement, to be recognized as Passive environmental replication ©. It
applies not only to different geographies, but also to Organizations and
Industries. Work environment type and other factors have to be
considered as well.
Replicative effects are not restricted to business/ work and are
commonly found in social and cultural settings. It may have originated for
a valid and constructive purpose – i.e. people follow certain practices of a
different environment, in order to work better. The problem is when it
sets in as a culture of unthinking “followership” in all practices.
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Here USA and India- offer an interesting study in contrasting people

practices in the organization. In both cases we find work environments
that would fit the progressive category; with areas that require
improvement. While the USA and India provide a convenient range for
our analysis, solutions in this book are applicable to other geographies as
well; and no doubt, would provide for a fascinating study once we get to
it.
Based on the predominant characteristics of a work environment, we
now define certain categories- Type Dynamic and Type Structured. An
environment is viewed as approaching Type D or Type S. The purpose of
this classification is to examine suitable management solutions that work
for a particular environmental type or situation. Refer the table, at the
end Work Environment Problems vs. Solutions for a model that shows
how the proposed solutions can be applied.
As part of the solution- Management initiatives are required to
“customize”. Or, in some cases the management must admit that a
certain ‘people practice’ is peculiar to the original environment. In these
cases alternate solutions should be devised to meet the demands of a
new environment.
REWARDS, RECOGNITION AND GROWTH
Organizations are gradually realizing the importance of providing positive
reinforcement and growth opportunities for people. On a positive note,
this is developing into a more specialized area, but that limits scope for a
detailed analysis in this book.
We would suggest that variations and inconsistency in these
management processes should be minimized so that it works fairly for all.
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HEALTH AND PSYCHOLOGICAL SIDE EFFECTS

Motivation and Morale have long been the recognized factors linking
management practices to the psychological bases of behavior. These
days, Job Satisfaction and Stress related problems are included more
often in the analysis of workplace habits and behavior. But this remains
largely uncharted territory.
Sizeable segments of the workforce in current work and business
environments are subjected to high stress, high voltage situations and
complex influences. In dysfunctional situations these factors can
adversely affect mental and psychological health, in particular- the
Nervous system! The incidence of psychosomatic effects cannot be ruled
out.
Current scope of this book limits further analysis of psychology
related aspects; but we do need to ask- What are the practical steps that
Management can take, to detect and control these adverse effects?
It is imperative that where negative and unhealthy tactics appear
dominant, they should be detected and curbed. That these are mental
effects should not make it an impeding factor. After all, we live in a time
of scientific devices when brain waves are being measured!
Detecting these effects is probably more challenging. But it can be
done with the many resources currently available in organizations. It
could be as simple as- Feedback mechanisms with complaints of
psychological work-related problems being taken seriously, and acted
upon. And it is vitally important to understand that emotional problems
may be caused by environmental problems at work, and are not merely a
matter of individual personality or behavior.
Therefore problems like Mental Harassment should be treated with
utmost importance and relevant management techniques applied.
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Situation assessment of a given work environment will definitely lead

to a fair and effective resolution. (It can be extended to include
Psychological and Behavior models).
The view is that Active Management Controls, accompanied by
Interventions; and individualized attention to affected parts of the
workforce should form part of the solution.
OVERCOMING ORGANIZATIONAL INERTIA

The same Business leader, who overcame great barriers, applying
innovative methods on the way to the top, may one day become a
complacent autocrat. The same Entrepreneur, who took great risks to
break away from tradition, created a successful startup and then
expanded to a bigger company…, may end up a play-safe conformist.
Somewhere along the line they fell into the trap of apathy and
conformism; and stopped making progressive decisions when it came to
people.
Reasons for this are varied. With regard to corporate entities it can
partly be attributed to the more comfortable phases of the organizational
life cycle. With success and expansion comes the next step of
standardization- then the inertia and resistance to change.
There are other reasons one may come across – if the company
raises only those who are “convenient” to promote, with a preference to
“pre-determined winners” who agree with traditional or popular norms of
Leadership.
Beyond a certain point, cutting-edge decisions or changes were
never required to promote them. But if this trend is allowed to continue
and dominate, so does the complacence and conformist in leadership
culture.
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In some cases, the standards and approach to people management

are not developed or implemented enough. No one is concerned with the
intricacies of people decisions, as long as the company turns a profit and
follows industry standards. Latent problems emerge only in extreme
situations. By then, inertia has affected the organization culture.
In any case, the fact that there are logical and natural reasons for
inertia to set in- does not have to make it acceptable! The next logical
step is for companies to anticipate and have progressive techniques in
place, to deal with challenges. This ensures that the “people factor” will
continue to be driven by intelligent principles and sound techniques.
Where active management and continuous improvements are being
implemented, inertia can definitely be reduced. Where this is done
consistently at the team, department, and organization levels the culture
stays active and progressive - in the face of standardization.
Where Business Leaders are not directly involved in people decisions,
the alternative is to position specialized “people manager” resources that
are trained and conditioned for it; and ready to play an active role when
required. These and other solutions are explored further in later
chapters.
THE ENTREPRENEURSHIP CHALLENGE

And then, there was the Entrepreneur Network that aimed to be
“different”- but was weighed down heavily by notions of political
correctness, groupthink and traditional thought- way beyond reach of the
deserving and talented.
So we took a poetic license and wrote that hyperbolic verse! But
actually, these views only represent theoretical states that we want to
avoid!
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Now for the main argument- Specialized Management solutions are

required to further develop this unique line. We condense the main
points here.
Challenges are likely to come up against fair and effective
Entrepreneurship Management, as in any developing field. In some ways
similar to mainstream corporate Management and in other ways,
completely different and specific to the business of Entrepreneurship-
that means there are situations here the world has never seen before!
The author’s strongly expressed views on Entrepreneurship Services
(2002- 2004) involved emphasis on “small-scale ventures” and “people
entrepreneurship”- this seems to have spotted high-level Industry trends
accurately as it was aligned with principles of Micro- Finance, another
area that witnessed growth in the past decade. Arguments were also
forwarded for raising the quality of services for aspiring Entrepreneurs.
Today, a range of services are available for aspiring entrepreneurs.
Entrepreneurial Networks and Organizations took initial steps in an area
that was creative, but overly chaotic with no support structures to speak
of. Now there is more standardization and we view this as a distinctly
positive break through. What’s more, they are differently structured to
suit the Entrepreneur model- another high positive!
But while there has been standardization to some extent, there are
more complex situations that need to be managed. Consider candidates
who pitch their technology or business ideas to locate Entrepreneurial
opportunities through various means. High-impact Decisions are required
from stakeholders at just about every crucial step.
Decisions such as –Should this candidate get mentoring assistance?
Does he/she get to make a start? Should s/he get funded?
We noted some areas that demand management insight-
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 Management techniques should be prepared to detect and

minimize the signs of “Entrepreneurial Divide”- where an aspirant
with greater influence and resources can easily outpace the
“entrepreneurial have-nots” (2004).
 Unless decision making and change mechanisms are designed
robust and highly effective, the traditional and subjective
concerns could start to dominate–
o How far is a candidate able to Network? How popular and
well-known is this candidate? How important are his
contacts?
 What happens if a candidate has great ideas and ability, but no
contacts and connections? Does that idea never see the light of
day or just get taken over by a more influential group?
o So another challenge is to evolve capabilities to deal with
exceptional situations and unconventional scenarios.
o Analyzing the Entrepreneurial process to assess what phases of
a candidate’s effort are effectively supported through
formalized decision making; and which parts can be left to
Networking or other informal methods, is one possible
approach.
 How does one deal with the formation of monopolistic trends?
 There is scope for many optimized solutions to be developed.
C ONCLUSION TO C HALLENGES
In addition to what was examined, the other high impact functions that
were outlined would throw up their own specific challenges. A detailed
examination is not taken up here. The next chapter, Quality View will
provide a generic treatment of such variations in a management process
or system.
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FORMAL VS. INFORMAL METHODS IN MANAGEMENT

“Formal methods” have been dealt with in software development.
Organizational Behavior (OB) has defined formal vs. informal groups. We
follow the same in our discussions on groups as in- “formal groups”. But
further extend “formal” to describe methods of management, as
explained below.
Solutions in this book recommend the application of formal methods–
Not to introduce rigid or inflexible structures, but for the purpose of
introducing standards and rules where required.
In this book, formal methods refer to officially recognized methods
while informal “methods” are not official. An “official” method is
documented or specified in some form, with a stated purpose, and is
recognized by authorities. Our definition of “formal” does not follow the
dictionary meaning in entirety.
“Formal” as applied here does not necessarily mean- “traditional”,
“conventional”, “hierarchical” or “rigid”. Only that it is official, based on
the above definition.
A formal management method (defined within the sphere of people
management) could involve methods in change management, or any
other management function e.g. Recruitment. And Management
functions can be invoked by formal or informal methods.
As later chapters will explain, quality and effectiveness concerns
demand that a high proportion of formal methods be applied in people
management, in preference to informal. According to the theory of
“Formal vs. Informal methods” forwarded here which is part of the
recommended approach, a dominance of informal tactics and less or no
formal methods being applied can reduce quality and effectiveness, and
even lead to adverse effects.
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The above view has been formulated keeping the standard work and
business environments in mind. It implies that if a certain level of
advanced management systems and methods exist in the organization,
we should expect a corresponding level of formalization. Instead, if we
find a high level of informality without these systems and methods being
exercised, that indicates a problem.
The level of formalization that works for a given environment will of
course, depend on several factors. This equation has to be arrived at
through experience; and it may be possible to involve algorithms that
model the problem accurately.
Now for a simple example on Formal vs. Informal Methods-
I. A work group has to come up with some innovative business
ideas in product design.
II. A formal process for “Brainstorming sessions” has been set
up in their company. But the group feels cloistered, and
decides to sort out the problem over a Coffee Break
(informal).
III. They succeed in this effort as it helps in creative thinking.
IV. However, dysfunctional scenarios can emerge- an extended
series of coffee breaks will reduce discipline and efficiency.
V. An informal setting does not allow the work group to record
all important points that came up during these breaks; and a
few individuals with talent for good ideas, get ignored.
VI. As the informal method i.e. coffee break- gradually assumes
more importance than formalized Brainstorming, the latter
approaches a state of “redundancy” by not being actively
applied or improved upon.
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Q1. Does it really matter if Managers and Business Leaders are
conformist in the people department? Surely, driving profit in troubled
times should be challenge enough. You seem to indicate that
“followership”, etc. are major problem areas in management. But to
most of us, it does not come across as a major crisis.
 Maybe not an immediate crisis; but it can be argued that overly
conformist thought at higher levels could translate to- the
Management being complacent about people problems in the
organization; and cascading down to a work culture where
ignoring such problems is the norm.
 There are tangible and long term insidious effects to persistent
“groupthink” among the Leadership.
 If you examine specific instances- you will find a statistical
correlation between slow/passive management practices, high
management inertia and reduced performance indicators.
 Maybe you and I can afford to be “followers” much of the time;
Business Leaders cannot. Where a “team member” with limited
authority cannot afford to be an entrepreneurial risk taker when
it comes to people, a top Manager or Business Leader can- and
should be able to make out-of-the-box decisions, based on the
right objectives! (2010)
 Without that, the same traits of followership, conformism and
solidarity that build teamwork at low to mid-levels to get work
done; can fail and reduce effectiveness as we move up the
ladder. At the top, the ability to think and act progressively about
people practices- is a necessity.
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 “Lemming think” has its limits in modern management and that

applies especially for people management. As part of the
solution, it means Management and Business Leadership do have
to go the extra mile to initiate and implement better people
management practices.
 Certainly, Management is a tough job full of challenges; and
balancing the people factor is one of them- one that
Management must take up with focus and determination. If not
directly, then by allocating dedicated resources; and a host of
advanced methods within reach today.
 We’d like to think that world-changing, revolutionary concepts
like Flat have already minimized autocratic and traditional ways.
And it’s a fact that it has brought about progressive change in
many work environments, on a large scale.
 Still, the view here is that fair and effective implementation does
not happen automatically in all cases. As we know, there’s many
a factor to be analyzed ‘twixt…management theory and effective
practice!
 What Flat can translate to for the less fortunate, is the Boss being
your buddy, shaking hands with you every day, then going off for
Lunch- leaving you to take up his/her responsibilities-
unofficially!
 Yes, there is a dysfunctional side to work floor implementation of
most Management practices, even the really progressive ones.
Before assuming success, Management must ask some tough
questions and analyze the risks-
o In what cases is this working well and in what ways is it failing.
o Is it working as expected in my organization?
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o What are its dysfunctional modes and how should the

management respond?
o What should be done to minimize the disparities and fall outs?
Q2. You have pointed out that fundamental changes are required to deal
with these challenges. But that seems unrealistic. Companies have been
following certain practices for decades. How do you expect them to
suddenly change that; or change over to something different?
 The vision and methodology is about changing or priming the
mindset and defining the approach- to making management
decisions, taking action, and effecting improvements. This has to
happen, before the structural or process changes.
 Solutions proposed here require the Decision Maker, the
Manager, the Lead, Business Head, or other Organization
stakeholder - to understand and absorb the vision, principles and
of course- the method in some cases.
 You will find micro-level solutions here that you can just go to
work tomorrow and start applying, as an individual or group.
 Taking initial steps in the right direction is as simple as that- a
pragmatic approach. Implementing it organization-wide is a bit
more challenging, but entirely feasible. To start with, it’s about
recognizing assumptions that companies already make.
 Based on (surface) performance and productivity data, they
assume that decisions are being made; that workplaces are
functional; that people are being selected in the right ways.
 The fact is- there are all types of random, unspecified
psychological factors and other effects that impinge on decisions
and work environments, reducing the efficiency and effectiveness
of management practices- but these effects are never considered.
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 This is about applying methods that detect the errors caused by

these effects and enable the company to correct them.
 First, the initial step- a drastic improvement in thought process
(not overhauling the establishment!) followed by the assessment
and planning phase; then adoption of specific methods in focused
areas to achieve better results.
 Companies periodically go through improvement cycles in IT/
Software/ Technology in response to work and environmental
demands. It’s similar for people management, but here it’s in
response to quality and effectiveness demands.
 It does not stop at micro-level. Advanced Training and specialized
solutions are required and in order to evolve those solutions for
the organization, top-down initiatives will be required.
 With so many dramatic changes taking place in domain-specific
and technology aspects of modern business, it’s time to make
those improvements in the approach and methods- to managing
people.
 And- by the way, certain functions may have worked in the past,
but won’t anymore. They will not stand the test of time, because
environmental conditions and workforce requirements have
changed so drastically. Improvements will be required in selected
Management areas- Management styles, Talent Evaluation and
Methods of control, to name a few.
 Some of these solutions might seem very generalized. In the
author’s view, it was necessary to examine the root cause
fundamentals, before we get to the more specific solutions.
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 We could design an elaborate scorecard or framework to improve

practices; but at some point must leave it to the decision maker
in-charge, who may choose not to implement it! Discontinuities of
this type being common in people management the decision-
making mindset should first be improved.
 Of course, we don’t want to detract from the importance of
specific solutions. The reader will find frameworks, methodologies
and models also provided here, for that purpose.
 Ultimately, it’s also about taking in criticism objectively and
constructively, and effecting continuous improvement.
SUMMARY
In retrospect, people management concepts were incorporated to create
working models and solutions in more specialized branches of the
organization. But by itself this field lagged in terms of dedicated
resources on the work floor, actionable standards, metrics and advanced
methods to manage people-centric issues.
This throws up challenges for Leadership and Management at all
levels to deal with- that remaining chapters will provide the theory and
solutions for.
We noted that Organizational Behavior (OB) has provided an
important foundation over the years and will continue to do so in future.
We refer to this field in other sections of this book in course of evolving
some of the concepts.
The significance of Formal vs. Informal methods was discussed.
When it’s about breaking away from calcified negative or dysfunctional
patterns in the corporate environment, formal steps are often essential,
and should be incorporated as part of strategy and solutions formulation.
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THE QUALITY VIEW

Taking the quality approach, this chapter looks at potential failure modes
and the assumptions that link to it. Failure impact is examined across
short to long timeframes. The voice of the radical provides a stringent
test; and then we clarify the management philosophy.
FAILURE MODES
Considering the Management process/method to be a process/method
like any other, any deviations from the way it is expected to work are
recognized as failure modes.
They would appear in the form of–
a. Differences from planned system behavior i.e. it does not work
the way it is supposed to- as per the standards.
b. Variances in the way it works in different cases. It works for some
but not for others.
c. Instances of exceptional cases above a certain limit.
Once standards are implemented to control the above types of
failures, the company may then decide to take improvement initiatives to
a higher level. Corresponding failure modes would also be visible at these
levels, indicated as-
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d. The process/ method is rigid and inflexible; does not

accommodate efforts for improvement.
e. Does not allow growth and innovation.
It should be possible to detect failures based on observed or stated
information and statistical data. This can be assumed to happen through
feedback, reports or complaints made about a process/method; and in
special cases if a systematic study is undertaken, possibly for research or
problem resolution purposes.
ASSUMPTIONS AND TYPES OF FAILURE

Now consider the subset of practices that has already passed the
specified standards. Failure scenarios are possible even here, and for
people management practices these take on added significance.
There are certain assumptions accompanying a method/process that
is standardized and established in the organization, and it fails when
these assumptions do not hold. Unless checked through quality methods,
the risk of encountering dysfunctional situations is comparatively high.
We now examine the generic types of failure from the viewpoint of
these Assumptions-
a) The organization assumes a process/ method to be working
correctly based on standards and specifications that are actually
not correct, accurate or detailed enough. For example, wrong
candidate selection based on vague selection criteria.
b) It is assumed that certain practices will always work regardless of
specific work conditions. In practice, there are management
techniques or- methods and practices - that work well in certain
situations but fail, and even cause problems in a different set of
conditions. This amounts to some concepts being over-extended.
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For Example-
i) “Teamwork” is widely revered as a world standard; a ‘panacea
for all ills’ to resolve most work group problems. But it can be
counterproductive in some cases, stifling innovation for certain
type of work groups. And there are project phases where
individual initiatives score over “teamwork”.
ii) Similarly, “Self-management” may raise productivity in
advanced work groups but have the opposite effect in a less
experienced team.
c) By “copying” methods to a new situation without analysis, we
may run into the problem defined here as situational
replication©. An underlying aspect of replication is in thought and
behavior patterns being repeated across situations/ environments.
d) Another scenario is where the process/method does not get
applied or executed correctly in some cases. The organization has
assumed that once the process/method is standardized, it will
work uniformly for all; but in practice there are marked variations
in the way it gets applied for different people.
e) Differences can arise not just between two instances as indicated
in c); but also within the same process or system where one
phase, or functional component works well but the next phase or
component fails.
f) It is assumed that once an advanced process/method is set up it
will smoothly link to the next. In practice, there are points of
discontinuity with no structural or functional resource to progress
it to the next step.
Quality and effectiveness of that management practice is therefore
reduced if these assumptions are made without considering specific
boundary conditions for effectiveness.
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The failures examined here are generalized but comprehensive and

should serve to explain more specific scenarios.
EXAMPLE
Now for example, a company sets up elaborate systems and processes to
manage people better, as its policies have established a link between
higher productivity and growth to best practices in HRM.
But even here, a percentage of employees continue to encounter
pronounced lack of growth and rewards. While some feel subjective bias
working against them at the management level, others find continued
problems in their work conditions. These issues eventually get reported
as feedback and complaints from 5% of the workforce.
The company conducts an assessment to address these issues and
finds that-
a. A few people who deserved promotions were repeatedly

overlooked.
b. Though standard best practices were being followed for all
teams; certain individuals and teams experienced problems
and showed less efficiency under the same conditions.
c. In certain cases there were high variations in quality and
efficiency between two phases or components of the same
process or system.
d. (Points of Discontinuity) Advanced applications including
Feedback and Appraisal systems were working as planned; but
once control shifted to the next process or module e.g.
grievance handling; there was no resource to officially address
discrepancies, anomalies or exceptions at these points.
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CORRECTIVE ACTION
In response to issues brought up in the preceding Example, we outline
the approach for corrective action in each case. Where some points are
known based on quality principles; others involving specific solution
techniques are briefly mentioned, to be detailed in later chapters.
To minimize a. At first glance, problems faced by people in career
development and growth- point to specific systems and processes in the
organization- i.e. Rewards and Recognition or Performance Appraisal.
And once identified as part of an application or process, there are any
number of techniques available today to transform and improve them.
Depending on the problem, the management may apply a strategic focus
on the concerned application, process or department.
For solutions in this book we assume that issues arising from domain-
specific applications, structure or process design- have already been
controlled, the system having reached an advanced phase of
standardization and activity. That leaves us with more fundamental
concerns to tackle – e.g. Decision making, Change and Control and other
methods to be applied at the management level.
Inertia in decision-making and sluggish responses to resolve individual
concerns- is a fundamental problem that can be rectified with optimized
Management techniques- e.g. with Decision Making and Active Controls.
Mentioned here as part of the quality perspective, these methods are
described later under solutions.
Lack of standards and guidelines; and under-specification of
operational standards - is another common problem that pertains to
quality. Conditions and criteria related to people management process/
methods should be specified as far as possible- not just at process or
system level but also at “micro-level”- e.g. when defining decision
criteria.
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A standard Risk Analysis performed on standards and specifications

can also bring out such points of ambiguity. Defining Risk response
procedures would support timely resolution of issues.
To minimize b. When a management paradigm is seen to work
successfully, it gains popularity and is then absorbed rapidly in industry.
But as it acquires layers of branding and marketing hype, it becomes
difficult to question its constraints and limitations.
No matter how popular a trend or established a method, it cannot be
regarded as a solution for all problems. Organizational and situational
parameters should be considered as part of efforts to standardize or
institutionalize a practice. This way it can be customized to work for
different types of work groups, work situations- and different types of
people.
A simple ‘What If’’ can bring up significant questions for analysis- is
the work group in a big, mid or small scale organization and what is its
level? Given the work group and project, in what phases will “Teamwork”
actually work; and what phases will require individual out-of-box
innovations? The Situation Analysis solution deals with how this type of
“micro” situation analysis can be taken up efficiently.
To minimize c. Variations within the same process/ systems can arise
from differences in the Management standards or controls. E.g. A high
performance work group administers the first phase of a Talent
evaluation process – and this works as expected; but the next phase of
Evaluation is performed by less efficient groups.
Active steps to implement high quality management end-to-end are
required. We know advanced methods are available for customer related
areas; but initiatives should not stop there. The same high standards
should be deployed for internal people management.
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To minimize d. invariably, discontinuities do occur in processes so one

cannot avoid them completely; but efforts should plan ahead for
“abnormal” scenarios and fill the gaps at critical points. Change and
Control Mechanisms allow us to do that.
RATIONALE
We need to address an important question that would surely be raised
here. In case of just a few discrepancies is it right to find fault with the
entire process/method as the above scenarios seem to indicate? E.g.
where the system is working as expected for most, why fail it based on
issues from just 5% of the work force? This seems an over-reaction.
The view held here is that even the 5% or other small percentage is
important and needs to be diagnosed from a quality and effectiveness
perspective. It may or may not indicate a fault or defect in the system;
nevertheless it should be looked into.
There is a recognized link between quality and efficient work force
management. As per Quality Management all issues are significant.
Product quality management can fail a product release based on a single
unresolved issue.
At the management practices level, we follow the same quality and
continuous improvement approach. Therefore advanced techniques
should be applied to determine the cause of every potential defect; the
type of resolution required; and steps taken to resolve.
We agree that it may or may not point to a systemic problem every
time. But a system that lacks basic techniques to address that 5% does
have problems implementing standards of people management quality
and effectiveness. Moreover, those unresolved problems pose a potential
risk in the form of large scale systemic defects that may come up at a
later stage.
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IMPACT OF FAILURE
When a management process/ method shows up in failure mode and no
corrective action is taken, the impact is felt in various ways.
Direct Impact can take the form of employee/worker dissatisfaction
leading to reduced performance levels, employee attrition and failure to
harness top talent and skills. In extreme cases, continued
mismanagement of people is known to have many adverse effects in the
organization.
Indirectly, people issues left unresolved will affect the quality and
efficiency of work and deliverables. These are accompanied by tangible
external effects- for example the prospect of losing clients; and expenses
incurred to repair substandard work.
Then there are the medium to long-term effects of failure that we
need to consider. It now prompts the question- What are the long term
insidious effects of imbalances in people management practices?
A few Examples were discussed earlier where it concerns Selection
methods and other functions. While the talent pool is directly impacted
as discussed above, there are other effects that play out slowly but surely
to build a culture of “followership”, leading to inertia and a lack of
optimal direction in initiatives; also working against the forces of growth
and innovation.
In summary, Failure to take corrective action where it concerns
people issues- this has direct and visible effects in the near term; also
affecting long term cycles related to strategy, growth and innovation.
To avoid over- generalizing, we say that the subject provides for
interesting analysis. It is an opportunity to devise strategic solutions to
minimize the above effects, and to serve as preventive measures.
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Analysis should be extended to examine how each Management

function in the area of people management can be affected; and
appropriate solutions designed in response.
At this point we summarize the tangible and measurable impact of
reduced quality and effectiveness in people management practices.
Impact of Reduced Quality and Effectiveness in People Management
Near to Medium term – Visible Failure Impact

 Organizational High Impact Functions will be tangibly affected
 Under-utilized talent pool and reduced manpower ROI
 Dissatisfaction, Low Morale and Motivation, Negative Stress
 Dysfunctional Work Conditions
 Higher levels of Attrition
 Reduction in Workforce Efficiency and Effectiveness
 (Other) Negative Psychological side- effects
Long term – Insidious Failure Impact

 Companies end up accepting substandard skills and practices
for lack of corrective action
 Persistence of calcified management practices
 Gradual decline in Management controls
 Negative impact on Organization Strategy
 Negative impact on Growth and Innovation cycles
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V OICE OF THE R ADICAL

An unflinching look at radical views can help to resolve practical problems
and evolve better solutions. These views can really “stress test” the
system like no other, and- as they say, every failed test case is an
opportunity for improvement!
 How can we solve the paradox of “Equal Opportunity at work
(but only for a few)”?
 Why are changes in the organization, so often driven by a “gang
war” mentality? In other words unless you join a group and play
for it, the change never happens. Is agitating and politicking for
change the only to make it happen?
 As an alternative to the above, can Organizational structures and
decisions of the 21st century be made to work effectively; to
introduce change methodically and non-disruptively in cases that
actually deserve it?
 Why are we so often forced to take political behavior in the
workplace for granted, in place of intelligently focused decisions
and action?
 Sluggish and inertia-laden responses to problems in people
management are in sharp contrast to real progress being made in
other fields. How can this gap be reduced?
 General awareness of optimized management and decision
making techniques remains at a low to average. What can be
done to raise average standards? After all, a system that works
for some and not for others- is half a system!
 Can organizations afford to be more “entrepreneurial” when it
comes to people and how can this be achieved? (2006)
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T HE M ANAGEMENT P HILOSOPHY
A philosopher may point out that the corporate world is full of inherent
imbalances and contradictions. Capitalism is about a few rising to the top
for greater profit; Management must differentiate the achievers from the
slackers; and the only abiding principle is survival of the fittest. Yet the
company cannot survive if the forces of greed, corruption, segregation
and inequality grow dominant and uncontrolled.
We would likely encounter a wide range of opinions on such weighty
subjects.
From the working standpoint, we simply believe in Well-Managed
Capitalism; arguing that many aspects of it are aligned with Ethical
Capitalism. And this does reduce the confusion somewhat! We find the
segment of better performing companies has set up its top level policies
and standards to follow this path (at least, that’s what the business news
columns indicate). But still more scientific techniques are required to
implement them effectively.
Active and principled Management techniques to enable fair practices
and positive work-enabling environments; from clearly defining roles and
responsibilities to judging performance correctly. In a broader sense, they
should also define the boundary conditions for a management
process/method to work in- So we can measure where it fails, and have
well-defined methods to resolve those issues.
Finally, management methods must accommodate growth and
innovation to rapidly improve existing standards and guidelines as and
when required.
Let’s face it, the century has only begun. The coming decades will
impact every area of the organization - in right or wrong ways. And it is
up to Management Practices to decide on the right ways.
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SUMMARY
There are external and internal benchmarks set up for the purpose of
enabling organizations to better manage their workforce. The
understanding is that “good” people management should meet internal
standards and industry benchmarks. “Bad” in other words substandard or
dysfunctional management practices would not pass.
One can expect that “bad” practices would show deviations from
prescribed standards that exist in the form of stated policies, procedures
and guidelines. But what happens when these guidelines are not well-
defined or specified enough?
We do encounter situations where standards at various levels are
established, but not well-defined and lacking enough specification. This
provides grounds for various problems to appear even after
standardization, resulting in dysfunctional situations.
Defining the above as a “failure mode”, in this chapter a number of
failure modes were explored theoretically, from the quality standpoint.
Then we examined underlying assumptions and suggested corrective
actions based on a case example.
We explained the Rationale for adopting such a strict view and
outlined the potential impact of ignoring people management issues.
Where failure modes and the Voice of the Radical may have seemed
excessively demanding and aggressive to some, the Management
Philosophy concluded with a tactful note on why the quality principle is
so necessary for people management.
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WORKPLACE WONDERS
Before we deep dive into finding solutions for dysfunctional scenarios, we
will take a look at the Wonders of Modern Workplaces- noteworthy areas
in modern work environments where practices related to people have
actually triumphed, achieving remarkable success in the past couple of
decades.
SELF-MANAGED WORK GROUPS

Successful situations at work are in many cases about successful Self-
Management. It has been widely observed that when individuals take on
more responsibility in an organization, they also gain a personal sense of
achievement. Being able to think at a management level tends to bring
out the best in certain types of people!
But we must recognize that high-achieving self- management occurs
in a relatively optimized state. En route, there could be a “struggle” or
learning phase before an individual, team or group reaches that level.
And these Learning cycles can be widely different, depending on the
team type, experience and other factors.
In companies with successful self-managing teams one can expect
that these factors- team structures, experience and seniority levels,
organizational resources and culture are conducive.
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In such cases the pre-conditions for it were either established at the

start; or else the teams, management and organization worked together
to arrive at progressive conditions.
As current trends point to higher and growing levels of self-
management, it is worthwhile for an organization to study the different
types, levels of autonomy and team configurations that are possible. An
understanding of these environmental conditions could enable successful
and faster cycles of self-management.
Where efficient group dynamics have been set up; the management
expertise is available on demand; and the support systems such as HRMS
applications and processes are provided- an organization can certainly
expect high rewards by empowering teams to achieve a high
management quotient.
WORK CULTURE: ADAPTING TO WORLD CULTURES

Chances are this has actually happened- you are engrossed at work in
your office. At the end of a long day you get up, stretch for a coffee
break, and walk past cubes clicking with the latest office infrastructure;
the avant-garde office décor; and into the coffee room- where people
behave as if they are all in North America or the UK. And you know what,
it does feel exactly as though you are in North America or the UK!
The work culture has absorbed and recreated this ambience so
effectively that you can’t tell. Not until you go and pull the blinds, and
look out the window, can you tell that you are in a totally different part
of the world.
The point concerns establishment of work culture- this set of
practices has become so efficient and ingenious that you could be
anywhere- and still get work done based on standards that one expects in
a completely different geography, maybe on the other side of the world!
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And this has definitely helped to raise work standards. People do

work better- in terms of sheer performance, quality and productivity.
They derive greater satisfaction by feeling integrated with the original
culture of their company. You must admit that- most days, you actually
like to work there!
As we see it, this was accomplished by the best aspects of “People
practices” coming together successfully- influence based methods, team
and group management, training and conditioning of employees/
workers in relevant areas (e.g. Soft skills Training) - these and other
methods involving the workforce. We should include in this “effect”, not
only work culture-oriented practices; but also the several learning
methods available in the form of group games, geared to promote team
interaction and group activities. Facilities also play an important role in
creating a more positive and enjoyable work environment.
In summary, there will be environments struggling at various phases
of learning and adjustment, but- just as in self-management- there are
quite a few that manage to get there, thanks to highly adaptive work
cultures.
But let’s not forget virtual workspaces- creating a quality working
“atmosphere” is vitally important for distributed and remote work
environments too; and it’s not just about technology and infrastructure.
An employee working from home has to feel just as integrated with the
work culture, and in many cases this drives the performance.
FLEXIBLE STRUCTURES AND FUNCTIONS

There is no such thing as a rigid, permanent chain of command or
management structure anymore! In organizations, there has been a spate
of advances- in IT Support, also Process competence and Operations,
among others.
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These advances have made it possible to introduce high levels of

flexibility and movement in shorter cycles. Authority structures around
the work environment are more agile and re-configurable in response to
performance and productivity demands. It’s not a big deal to see your
local Org structure suddenly being changed in parts; and it is common to
see people, including Management resources being moved around. Yet
another example of support systems and applications working smoothly
to enable structural and functional changes.
The question is, “Will these mechanisms also work effectively in
response to the people factors- to enable career aspirations, raise
motivation levels, resolve troubling issues and improve work conditions?”
If the answer is yes on these counts, that is surely a winning
configuration!
TECHNOLOGY ADOPTION & INNOVATION

Notwithstanding the critical tone of discussions so far, we admit that
advances in Technology are actively being applied in HRM (while
reiterating that- adoption rates of management practices need to be
faster).
IT/ Software/ Communications& Infrastructure/ Facilities
The evidence is everywhere- from Self Service portals that offer a full
range of employee management services to current innovations,
Technology had had a fairly high adoption rate in the field of HRM. HR
applications have kept pace with Industry and organization demands.
Still, there are areas in the organization extranet such as Placement
networks and Talent Evaluation- that need to be developed. Technology,
Process solutions and high end models are needed here, to fill gaps in the
talent supply chain (discussed in Current Challenges).
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HR Analytics
When Analytics has entered every other field, can the data-intensive HR
systems be far behind? Business Intelligence and Analytics are busy
capturing terra bytes of insight from workforce metrics and key HR
processes.
Impressive as these advances are, it can be argued that Analytics in
these areas is still more descriptive than predictive where the human
factor is involved. Can you accurately predict the efficiency and
performance levels of a work group? These effects are still dependent on
the managerial mindset, personality and team dynamics as it plays out.
Can you analyze data to see where Management practices are failing
and at the other end- where high management effectiveness is being
achieved? Now that a start has been made, data analysis should go
further to focus on management practices, including Management and
Leadership indicators. As a more specific case, it should consider data
related to resolving people issues.
Role Playing, Games and Simulation
Advanced learning and psychology-based tools are gradually getting
recognized for their potential value in people management scenarios.
This is a very progressive and futuristic trend.
In particular, Role play and Simulation games can be applied to
advance the level of intelligent management thought, possibly as part of
Training and Conditioning for Management. Though a specialized field,
we categorized under Technology as it often involves hi-tech applications.
This section only skimmed the surface of the scientific and
Technology advances being made, listing a few major developments
currently obvious in business and work environments.
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We are sure that the future of Science & Technology in HR and

People Management is exciting beyond imagination. While space does
not allow a detailed review of technical areas, the chapter on The Future
Manager delves into more fantastic possibilities!
COPING MECHANISMS
Difficult work conditions and ensuing stressors can and do lead to health
problems. It can become a vicious cycle.
We read about various coping mechanisms in books and media that
help people deal with it. It also helps that people are a lot more free and
open in talking about these problems (itself a stress reliever). And still
more Companies have services in place to cope with difficult situations
(ombudsman, counseling).
Ideas have been forwarded by industry experts on positive and
intelligent ways to deal with workplace problems. Insightful books are
being written on topics from- how to deal with the “bad boss” syndrome
to navigating the work environment and getting work done; with advice
and tips on how to manage your career. We now have Emotional
Intelligence, and can experiment some more with our career Parachutes.
These solutions are working to help people cope in various ways-
definitely a progressive trend!
But what about Management Intelligence?
Unfortunately, without active Management involvement, in many
cases the “coping techniques” remain workaround solutions. Nor is it
possible for them to address every situation. Our conclusion, this matter
cannot be treated solely from the “coping” perspective. Management
solutions are required, and must be actively applied to deal with
problems that people encounter at work.
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THE RISE OF ENTREPRENEURSHIP CULTURE

The corporate world has witnessed a dramatic rise in the popularity of
Entrepreneurship. By the turn of the century, the “E word” was no longer
confined to Startups. Everyone liked to think and act entrepreneurial!
Wave upon wave of stampeding Startups have not just carved out a
distinct niche; they are now part of the mainstream corporate landscape
to be found as business partners, vendors and suppliers of companies.
Buzz words like “Think different” form part of growth and innovation
strategies. “Entrepreneur wings” have emerged in companies to retain
and encourage innovative talent.
Almost as remarkable as startup culture is the growth of services and
facilities being offered to nurture Entrepreneurship- an area that has
grown and specialized over the years. Where few resources existed for
aspiring entrepreneurs, now there are services, platforms and forums
dedicated to promoting and managing Entrepreneurship!
From the management perspective it provides a study of a different
type of eco-system- one that typically aims to link the VC’s having
resources to aspiring entrepreneurs. The management process here may
plan for a range of standardized services- E.g. Hosting Promotional
events, or setting up Competitions and Incubators. No doubt a “fun and
creative” atmosphere for young people- you can even hold a regular job
and still avail the best of both worlds by participating in networking
events and competitions.
Today, these support systems play an important role in deciding the
innovations and future businesses that will shape the world of tomorrow.
But given this refreshingly new line of management, what are the
unique challenges that emerge, in the way of translating very high level
policies onto work floor (and networking floor) practices?
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What type of decision making and processes are required to provide

them fairly and effectively?
We discussed some important challenges under Current Challenges.
We stop here with observing that in this cutting-edge line there is space
for many more Networks and Organizations to take on this formidable
challenge of enabling fair play in the chaotic, fickle and ego-driven world
of startup opportunities!
HRM AND PEOPLE MANAGEMENT NETWORKS

As mentioned earlier- there are organizations and networks that
specialize in HRM and People Management on a global scale.
The World Federation of People Management Associations (WFPMA)
is a Global Network that brings together associations from different
countries, each having a membership of people management
professionals. As understood from online references, Publications and
Research projects are commissioned that address global issues in human
resources as well as topics relevant to HR professionals. Some initiatives
involve collaboration with Management consulting firms and industry.
We see high profile Conferences and Events in HRM/ People
Management being held, both global and geography-specific. These
events provide a platform for Business leaders and HR professionals to
network, discuss and share ideas considered relevant for the HR function
in organizations.
Scope for Research and Innovation
The reader may recall that we referred to people management as a
superset- an area where out-of-the-box innovation and experimentation
with new ideas is possible, without interference to mainstream HR in the
organization.
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A global people management focus can play a vital role in defining

and facilitating the innovation process. By bringing together key
participant consulting firms, experts and thought leaders; and of course,
the Academic Institutes and R&D centers- the challenge to enable
innovation and effectively disseminate the result of that innovation in
Industry, is met.
Though at this point, we have limited scope and insights on this
aspect, to say what level this would work best at.
 We see the global People Management organization and
associated networks capable of playing a major role in the
research and Innovation Cycle for management practices.
 More about Management innovation in the chapter Innovation
Cycles.
Online Career Networks

At a different level, there are Online Networks- mostly the Job Sites that
provide convenient resources for Job seekers including Career services
and even Professional networking. In the menu of functions typically
provided, there are many Career Events taking place, both real and
virtual.
In the year 2000, this author had proposed HRMS Platforms for the
classification of Industry Expertise, and in 2002- highlighted the
importance of Network-based Career and Placement services. On the
bright side, many of the contemporary sites that emerged in the past
decade can be regarded as such platforms of HR expertise, with “Experts
channels” routinely added on to most of them. What’s more, we find an
extensive reach, industry partnerships and a large network of talented
professionals associated to these online networks.
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A range of requirements could therefore be addressed through them.

Requirements that exist in human resources, outside organizations -
for example, in the woefully under-developed field of Placement and to
improve and develop Career services.
As it stands, placement and talent evaluation in the external
environment is a complex function that is currently disorganized and
under-standardized in places. There are standards and processes that
need to be set up, or improved upon significantly. In short, the scope for
extended services and innovative solutions is immense.
To summarize, there are functional and process gaps in important
areas of people management in the external environment. Online
networks related to HR are positioned to play a unique role in resolving
these gaps -
 Online Career networks should play a more active role in the
Placement process, raising standards where possible.
 Refer the process for Candidate Driven Placement in the next
chapter.
SUMMARY
This chapter discussed the best states of people related workplace
practices, working constructively. While modern workspaces are
happening in many more ways, we highlighted some positive aspects
here that would impress even the staunchest critic!
Though different in their purpose and objectives, we feel the People
Management and HR Networks are positioned to participate in the
development of advanced solutions.
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PROPOSED SOLUTIONS
An approach to restoring the balance is to keep developing People
Management techniques in parallel, toward more specialized solutions.
On this path we first set a road map for building our models; then identify
solution areas for in-depth analysis in later chapters.
The chapter gets a head start on solutions by discussing ideas for

specialized People Management Roles and Training- these solutions were
previously discussed by the author in a 2007 online publication and re-
appear at various points. The Roadmap, ideas for “Clinical Decisions in
People Management”, the importance of “objective decisions”,
“specialized resources” and Advanced Training for people management,
observing the need “to maintain healthy working conditions” for people-
these points were suggested and discussed in the same e-book, published
in 2007. The Placement Solution was forwarded by this author over the
years and in 2010 as Blogs.
HIGH LEVEL ROADMAP

Concepts relevant to HR and People Management have seen
development in several disciplines including Organizational Behavior. For
building working Models and Solutions we now recommend
incorporating relevant components from all these areas.
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We start building the foundation with contemporary elements from

Management Psychology, and then look to add an in-depth quantitative
dimension. Since accurate Business decisions, Statistics and Mathematics
have a long-standing association, we add Operations Research (OR); and
other Mathematics and Business Intelligence (IT) streams that have
exponentially grown in recent years.
Models should be relevant within the corporate/ business world; not
necessarily for outside application in social, cultural or other situations.
Organizational Behavior and closely related fields enable us to define
these boundaries.
Given the generality of arguments, solutions in this book may seem
applicable to non-management areas. But that is a wrong assumption-
we should emphasize that these are Management solutions that cannot
be readily applied out of context; and every problem or situation requires
methodical analysis.
We may still end up with models that work in 2015 but will not be
prepared for 2040. So we leave enough margins to take in relevant
aspects of Neuroscience and Cognitive Science as prospective areas to be
considered for future solutions. Now, we have a high-level roadmap that
points us to scientific and objective techniques that work!
CURRENT SOLUTIONS
In response to the Challenges highlighted in previous chapters, Solutions
are presented at two levels, Organization/External and Group/Individual.
In the vast area that we regard as Specialized People Management,
organization and macro-level solutions are proposed for People Manager Roles,
Training and Placement. The other is a set of optimized techniques that form
part of our Integrated Methodology of Objective Management. How these work
at group/ individual level is detailed in the respective solution chapters.
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SOLUTION LEVELS
Objective Management Specialized People Management

Techniques Solutions
 Objective Decision Models  Specialized Roles in People Management

 Objective Situation Analysis
 Advanced Training in People Management
 Optimized Change and Control
 The Placement Solution
Mechanisms
SPECIALIZED ROLES IN PEOPLE MANAGEMENT

We know there is no official “People Manager”. But Current challenges in
the Management structure indicate the need for a people management
layer or specialized resources to focus on managing people.
In practice, Management roles do involve varied levels of people
management, but often without the official commitment to get into
people related issues. Moreover, in dysfunctional situations we see a lack
of efficient and rigorous methods applied for resolution.
MANAGER ROLE REQUIREMENTS
The task of resolving chaotic and dysfunctional workplace situations falls
on the Manager in the absence of other resources. The Manager has the
job of actively making balanced and optimized decisions in any situation
and performing Managerial tasks.
EXISTING SITUATION
Twenty years ago, the above were safe statements to make. But now,
interesting new dimensions are being added to the “Manager” role. Even
as we write, an organization somewhere is improvising and redesigning
its management structure and functions (most probably, just gearing up
for whatever works).
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As a result, the new breed of Managers is positioned to differ in many

ways from the traditional authoritative roles.
In current work environments the locus of management control could
be within or outside the group. The Manager may not be positioned
directly above the group being managed; and may just play a peripheral,
supportive role that stops at providing guidance. For some work groups
the positioning and functions of authority structures are varied over time,
in quick response to work or environmental changes.
Last but not least, most management tasks may be informally or
unofficially performed by a resource that happens to be positioned for it;
leaving the official Manager(s) to perform only those tasks viewed as
most important, from time to time.
Given the sheer range of work groups and structures in today’s world,
we cannot generalize to say what configurations will work or not- not
without specific parameters on hand. In fact, one can easily come across
productive situations even under the most chaotic, bizarre or transient
management structures!
However, it is possible to identify some best practices. Management
resource(s) should be positioned to actively manage and make decisions
at critical points; to minimize dysfunctional situations and discontinuities.
Actually, the Manager Role Requirements we outlined above should still
hold good- we see they have passed the test of time!
But this is easier said for environments where work group Managers
are available and prepared to provide full-scale people management. In
other cases, we suggested a different solution (2007).
 One method to introduce added people management expertise on
the work floor- is to have specialized people managers officially
provide practical guidance and implement change mechanisms.
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 Their responsibilities (2007) -

o Specialized resources take the load for dealing with complex
people problems. This will not strain the overhead as resource
requirements in this category are not expected to be high.
o Strategic positioning can enable a people manager to work with
multiple groups. The organization may consider leveraging
existing resources for advanced people management roles.
S PECIALIZED R ESOURCES FOR P EOPLE M ANAGEMENT (2007)

1. Resources with a People Management focus, officially responsible for
managing people related issues.
2. Specialized resource works in tandem with the work group and/or work
group Manager, providing support and expertise as and when required.
3. Takes effective control of group dynamics to provide guidance in
special situations including transitions or conflict resolution; and in
general, correcting imbalances.
4. This includes gridlocks in which the work is being delayed or stopped.
5. Hence “passive” or “negative” work situations are being minimized; not
viewed as a trend that workplaces are forced to accept.
6. Monitors work groups in abnormal scenarios such as low performance
or high-flux states.
7. The resource envisioned here may function as “mediator”, “motivator”,
“change agent”, “catalyst”, “guide” and “trainer”.
There are several Worker/Employee-focused solutions already
implemented by companies to handle workplace problems, e.g.
Grievance lines, and counseling services that allow employees to talk
about their problems to alleviate stress and friction without disturbing
others. As compared to these facilities, solutions listed here are more
Management-focused; and meant to work through the Management
layer as we regard active Management participation an important step
for effecting improvements.
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ADVANCED TRAINING IN PEOPLE MANAGEMENT (2007)

1. The People Managers referred to above should be psychologically
conditioned to practice advanced aspects of people management.
2. In general, it is necessary to condition Management decision
makers into higher levels of decision making,
3. Their decision making skills should be optimized and alert to the
group’s requirements.
4. Training should include accurate and reliable ways to improve the
efficiency and quality of people management decisions.
a. This problem dealt with in-depth under Objective Decision
Models.
5. Work group Management should be trained to apply advanced
people management methods.
6. Leadership training would of course depend on specific role
requirements.
7. What type of conditioning is required for the Manager?
a. The Manager’s mindset gets amplified and influences work groups;
and other levels under the corporate hierarchy. Considering that
managing people is largely a psychological activity, it is important to
condition Management to have progressive attitudes.
b. Furthermore, the Management has to be aware of gender and
culture-specific issues as these are responsible for propagating
attitudes at a company-wide and even social scale.
c. Managers have an increased responsibility in fast-paced and
diversified environments to be aware of best practice standards.
They should also be able to define new rules to maintain healthy
working conditions.
d. To enable this, conditioning should include all the general principles
and best practices. Specialized aspects of it can consider advanced
techniques e.g. for decision making and unbiased assessment.
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THE PLACEMENT SOLUTION

Placement is a composite multi-component function. It involves job
evaluation, candidate evaluation, talent assessment, and supporting
services such as Career Services and Counseling. Analytical procedures
that fit the candidate to the right job and related services (e.g. resume
preparation) are also involved. We consider Career Counseling an
important part of Placement. From the process view, it can link with
multiple processes- typically, recruitment and selection; but also Training.
It follows that a “Placement Firm” or Agency offering Placement
Services should have sufficient expertise in all these areas. This could be
the “placement” wing of an organization; or a Consultancy, an
Educational or Training institute. Placement agencies are known to
collaborate with organizations to fulfill hiring demands; hence the
placement chain often spans multiple work groups.
In terms of application, placement scenarios may involve “in”
placements or outplacements. “In” Placement which is the popular form
of placement – involves the candidate being recruited and then placed in
a suitable job. Recruitment may be direct or through an external firm or
recruiters/consultants working independently. “Out” modes are about
locating the candidate externally, as a result of layoffs or downsizing. We
also consider Intra-company placements- where the candidate is moved
within the same company.
The following solutions are forwarded below, to deal with the challenges-
 Objective and analytical procedures are required to process the
candidate and job information overload, for heavy-duty application!
 Candidate- Driven Placement, a business model to supplement the
ubiquitous Client-driven processing.
 Placement Networks, to raise the standards and level of professionalism
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BENEFITS OF CANDIDATE DRIVEN PLACEMENT (2010)

A Job Seeker walks into the Placement Firm with a great Resume.
Placement executive runs a match against their database. No match! And
since no compatible Corporate Requirements exist, the Job Seeker is
shown the door, irrespective of the candidate’s skills and talent.
Most "Placement/ Search Firms" – and there are Millions of them of
course, are focused on servicing Corporate Recruitment needs. The Client
HR Manager may provide a headcount to fill a Job requirement; and the
Placement Firm is supposed to lasso in that many Cattle oops!
Candidates, to be herded into Cubicles.
In Contrast, the model we discuss here- "Candidate Driven
Placement", is genuine "Placement" in the true sense and demonstrates
the high quality and professional commitment of the company that
practices it. It involves servicing the Job Seeker- Finding a job for the
meritorious job seeking candidate even if there are none readily available
in their Jobs database.
But what's the value/benefit of doing Candidate Driven Placement,
one might ask. It's bound to be a drain on the placement firm’s resources.
Finding a Job for each and every Candidate, given the sheer volume of job
applicants, is too time-consuming. In short, this model is viewed as not
rewarding enough!
Is it? Actually, if one thinks about it, it is an entirely profitable,
principled and sound business model- to charge a fee to each Job Seeking
candidate for a "Placement Package". They are provided Counseling, Job
Search or Placement assistance, Skills assessment, and related services. If
such services exist, they are on the right track!
In the Placement field, we do find such companies dotting the
landscape.
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There are reputed Executive Firms that do both-- Corporate

Recruitment plus Candidate Placement. This model does work, and can
work out very well, for the profit line of any company that takes it up; not
to mention the overall business value it provides. A placement firm can
afford the extra resources required for Candidate-driven placement and
still make a healthy profit. All it takes is some Initiative and Enterprise.
Look at it this way- Why would a talented, qualified Professional with
good skills, go the extra mile and take the trouble to find a good
Placement? Then pay for career services to locate a suitable job? Chances
are, this person is motivated to find the right job, not just any job- and
will perform better in the bargain. Both the company, and candidate
stand to gain in their discerning search for quality, and this mode of
placement is supportive of that.
Business cycles and other variables will weigh in here, just as in any
other business. In case of special conditions or downturns, it may not be
possible to place every candidate. But the model still works, by providing
career-related services such as counseling and job search assistance for
every candidate. Sometimes a motivated candidate just needs to be
primed and positioned to find the right job- and will take it from there!
Now let’s see how this fits the India job market. We contend that
there is a market of professionals, who would be interested to avail of
customized placement services! They could be charged an initial fee for
career services then on installments as the job search progresses.
The Optimized Candidate Driven Placement Process© shown
here is based on the model discussed above. In addition to the main
participants, it also considers organizations and networks that could play
a constructive role in the placement chain. (The potential of online
networks was discussed in Workplace Wonders).
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FIGURE 3 OPTIMIZED CANDIDATE DRIVEN PLACEMENT PROCESS
When developing Placement practices as a vertical, technology

cannot be ignored. Systems and software Applications need to be
enhanced to provide advanced functionality. Applications that deal with
1000+ resumes and shortlist it to 50- based entirely on valid,
comprehensive and well-defined criteria- that would surely be a triumph!
Let’s see what is required at the first step. This is a highly condensed
analysis of requirements in an area that deserves a separate study.
Resume Selection by recruiters- Format conversion and digital

character recognition technologies would play a part in the initial phase.
A variety of formats may be involved including video and multimedia
resumes (increasingly popular). Candidate information must be weighed
against established criteria and also ranked. Visual display to support
clear decision making- for example, dashboards designed for organizing
resume information. And Infrastructure plays a major part as Interviews
are often held remotely.
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INTEGRATED M ETHODOLOGY OF O BJECTIVE T ECHNIQUES

An Overview of Objective Management Techniques
Dictionary Objective definition: “not influenced by personal feelings, interpretations, or
prejudice; based on facts; unbiased:”
SOLUTION AREAS
Beyond standards and metrics, Objective people management techniques
working at multiple levels can help to analyze and assess situations at
work; make accurate people decisions in complex situations; determine if
a planned change is a step in the right direction or not; and take effective
steps to implement the change. Solution areas corresponding to
objective methods that upcoming chapters deal with are-
 Metrics for People Management
 Objective Decision Models and Active Decision Process
 Objective Situation Analysis and Assessment
 Optimized Change and Control Mechanisms
 Optimized Improvement and Adoption Cycles
SOLUTION METHODS
Proposed methods can be applied separately; or, as part of a well-defined
integrated methodology to be implemented at the management level.
 We will assess the measures and metrics to be actively applied for quality and
effectiveness in people management. High level Metrics and a Methodology will
demonstrate a more measurable approach to Effectiveness.
 We will see how Objective Decision techniques can be applied for active
decision making.
 Change and control mechanisms that include Intervention change techniques in
addition to group/individual methods can be far more effective than informal
methods in people management.
 Finally, we examine how Objective Situation analysis and related tools can be
customized to assess work environment conditions with greater clarity.
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OVERVIEW
The current methodology is based on the premise that Objective
methods work to improve Management Effectiveness for people
management. In the process, even seemingly non-quantitative factors
can lend themselves to accurate analysis. “Going objective” does not
mean we exclude what appear to be subjective or intangible. Advances in
scientific research make it possible to include almost anything for
analysis- provided it is relevant to the problem.
That means any scientific model relevant and important for
understanding people-centric problems in modern Management – and
that includes Behavioral Science (models relevant to the Organization),
Psychological and Ethical models- can and should be leveraged as part of
the solution frameworks in this domain.
With the aim of optimizing productivity and related work conditions
the other key principle, is that certain fundamental techniques- for
decisions, basic change mechanisms and situation analysis- will be
required even under conditions of self-management or no official
“management”. In our view, management capability is required to the
extent of exercising these techniques in any type of work/business
environment. This set of management techniques comprises the
centerpiece of the solutions proposed. And we do not consider
contradictions here.
In contrast, the specialized people management solutions meant to
work at the organization level (and even externally, in case of placement)
are organization/environment-specific. Originally suggested in 2007
based on the segment of mid-to-large scale company environments it can
be argued that some environments do not require them. To provide a
complete analysis these scenarios are analyzed as Contradictory
Possibilities in the next section.
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VISION & PRINCIPLES

Main principles of the Methodology
Vision and Principles of the Integrated Methodology are outlined below.

The more specific methods were constructed with these tenets in mind.
a) Application of Active Management techniques with emphasis on
raising Management quality and effectiveness.
b) Influences can affect decisions in the work environment. In
response to this decision making should be aware, but not
dominated by Influence effects. The decision maker should be
able to discard non-legitimate influences that are not valid or
relevant, in response to situational requirements.
c) Application of objective techniques to discern political behavior
from those relevant for work in the organization.
d) Fair, Objective, Optimized Decisions and Active Decision process-
In the proposed method, decisions are optimized as the decision
maker prioritizes objective factors and filters out those that are
non-factual and irrelevant to the problem.
e) Implementation of effective Change and Control mechanisms that
include interactive interventionist change methods.
f) Preference given to exercising formal, guided methods for change
and management as opposed to prolonged dependence on
informal methods that only involve agitating for change.
g) Methods to achieve faster, more uniform implementation of new
Management ideas and concepts.
h) These techniques can be applied at the “micro-level”. There will
be Top down initiatives required to standardize them.
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CONTRADICTORY POSSIBILITIES
And now the following sections take a brief Look at Contradictory
Possibilities- factors that argue against the need for applying Specialized
Management solutions to resolve each and every problem.
NATURAL CORRECTIONS AND WORKAROUNDS
Alternate Solutions vs. Implementing targeted Management improvement
Having faced rough weather in recent decades, Businesses today are

racing ahead furiously. When faced with a potential crisis or the prospect
of losing business, chances are strong that- something will always be
worked out, or something will work itself out.
In previous sections we examined various dysfunctional situations,
pointing out the necessity for management action and decisions to avoid
failure. However, it would be too simplified to say that –unless active
Management intervention is provided- a dysfunctional situation left to
itself will simply grow into a crisis and sink the company.
In practice, there are certain spontaneous effects that will play out in
response to adverse conditions. The situation is alleviated to some
extent- even in the absence of management involvement; and this pre-
empts any systemic failures.
Just as the human body has natural defense mechanisms that react
to fight illness- even in the absence of medical treatment; so does the
organization. The system will react in certain ways and- when backed
with a strong “DNA”, often survives, even if no direct management action
is taken.
In the author’s view this happens because a dysfunctional situation
in the organization is likely to trigger-
a) Natural corrective reactions and/or
b) Workarounds
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Natural corrective reactions are about responses that automatically

kick in, take over the situation and set the system back on a workable
path. Workarounds are about alternate solutions that are worked out in
an effort to resolve the problem. These alternate routes do not involve
formal methods or complete problem analysis. This is more an effect of
the corporate culture and organizational influences, than active
Management decisions or interventions.
Work environments typically rely on natural responses allowing
situations to resolve themselves; and especially in people related
situations- it is the natural corrections, alternate solutions or
“workarounds” that are likely to emerge. In successfully self-managed or
more dynamic environments this might actually work!
The drawback is in these “surface solutions” or “convenient
alternatives” not being effective or durable enough. In either of the two
cases, Decisions or actions are not taken to specifically address the
situation; and root causes are not dealt with. The problem is not directly
corrected or resolved, but it does result in some type of activity to offset
the problems and fill in the gaps.
Corrective reactions and workarounds can be traced to supporting
factors linked to survival- of the individual, work group and organization.
Here Competing forces are an important factor in the internal work
and external business environments. Other factors are Corporate
Influences and at lower levels, again competition and peer pressure.
The following examples illustrate how these effects work at multiple
levels-
a) A company losing its best talent due to mismanagement observes that
rival companies have benefited; and the crisis of high attrition is round
the corner.
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i. This company promptly reacts to the threat by raising its salary incentives
in a bid to retain talent. Root causes of attrition have not been addressed,
so here is a workaround.
b) Another example is Managers caught up in no-decision/ low-decision

environments. If situations do arise when something needs to be done,
the path of least resistance may involve workarounds.
c) Competition and Self-Management are two extremely effective drivers
when it comes to performance and talent development. These emerge
as natural factors to driving higher performance even in passive
management conditions.
i. For example- a candidate faces so much competition that s/he is forced to
self-train, self-manage and self-develop. This person becomes an
outstanding performer, but driven more by highly competitive conditions
than active management.
ii. A work group is under-managed; and there are few management controls.
Nevertheless, conditions that propel intense competition between groups,
along with high levels of self-management will ensure that lack of active
management is temporarily offset.
Therefore productivity could actually be high, in cases where you

would logically not expect it. As these scenarios indicate, it is the natural
factors and workarounds at work, rather than specialized Management
improvements.
LIMITATIONS
Now a cost-effective and pragmatic question that emerges at this point-
If there are natural factors that automatically drive people, performance
and develop talent; and also conveniently point the way for business
strategy- then why consider enhancements in people management at all?
To answer this we need to examine- the drawbacks of dependence
on the above natural forces, as compared to addressing root causes and
directly applying the management methods that we keep insisting on.
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And the Answers are -

 Natural corrections are likely to be effective only in work environments
in the organization that have reached a fairly advanced level in the
development cycle.
 Notwithstanding short to medium term workarounds, the long term

insidious effects of dysfunctional management practices are likely to
grow, unless checked through direct resolution and focused
improvements.
 These are conditions in which official methods responsible for analysis,
decision making or change management- are not being actively
exercised. The organization is depending on the situation playing itself
out; which ultimately weakens its management systems and functions.
These systems and processes approach an “atrophied” state, revisited
later in Change and Control Mechanisms.
 Under continued lack of active management, the system cannot
improve fundamentally.
 Situation analysis may reveal that in some cases, direct resolution was a
more economical and feasible path than a workaround; or just allowing
the problem to self-correct.
 As discussed, there are areas such as Talent development that may
survive with just workarounds or natural corrections, as people self-
drive and self-develop for survival. But other areas such as conflict
resolution and innovation– will feel the adverse impact of not taking
direct management action.
 Productivity and profit targets may be met for the time being; and it
may be possible to maintain daily work routines and operations even
under dysfunctional management; but the Organization stands to lose
out in the race for intelligently driven, sustainable growth and
innovation.
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RISKS OF MANAGEMENT IMPROVEMENT

Risk of dependence on Management enabled solutions
The bitter irony we are faced with- there is a downside risk even in the
opposite case! If we rely completely on specialized Management
improvements to the exclusion of natural mechanisms and informal
methods- this can lead to problems too.
But this only implies that management should systematically assess
and plan for these risks while taking initiatives in people management.
Though not a contradiction in terms of the vision or principles, it
does necessitate quality-focused methods such as Risk Assessment and
Analysis to be included alongside change and improvement initiatives.
What are the Risks of dependence on Management improvement?
 People will take it for granted that management is expected to
resolve all their problems, and keep making demands.
 People will apply less self-driven effort; and turn out less
competitive.
 At work group level, this can incorrectly translate to over-
controlling and over-managing people.
 In the reverse case to what was discussed in the previous section-
here, it is the Natural corrective mechanisms that will not be
exercised enough, while official management methods and
resources are over-extended.
 As we know, there are high-risk “No Rules” situations that
sometimes work out far better than “some rules”.
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The view is that with increasing people management effort we are

bound to reach an optimum phase that can be linked to the highest levels
of- workforce performance, productivity and work conditions, and also to
Management ROI.
In testing our ability to understand and balance opposing forces this
draws an analogy to the Laws of Economics. Knowing when to manage
but not over-manage; when to adopt an active management style and
when to be passive; when to follow influences and when not to.
F UNCTIONAL VS . D YSFUNCTIONAL STATES : E XCEPTIONS
Of the other possible contradictions we select the final one for

response, observing that in some cases people can be productive even
under “negative” conditions –i.e. chaotic, oppressive or mismanaged. In
that case why maintain optimal work conditions?
 The level of productivity under negative conditions will be unpredictable
and unstable. Or, result in some other overhead –e.g. attrition,
dissatisfaction and dissent. Therefore the need to achieve optimality by
exercising management capabilities. Work conditions should enable
maximum productivity, be aligned with organizational goals and best
practices, with the people-centric issues being continuously resolved.
Ultimately, whether we apply specialized and targeted management

methods or not- it is important to be aware of all the factors at work; and
be prepared to take active steps. Every situation must be analyzed to the
extent of deciding whether it requires resolution; and optimum levels of
work environment factors –e.g. competition- do need to be arrived at.
Optimized techniques at all levels can work to maximize the
organization wide benefits of adopting specialized solutions in people
management. The benefits of this improvement- and we do find many-
are highlighted in the following Cost Benefit Analysis section.
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SPECIALIZED PEOPLE MANAGEMENT SOLUTIONS: COST BENEFIT ANALYSIS

Having confronted the challenges from different angles- this may be a
good time to turn our attention to the tangible benefits of spending time
and effort on improvements! Here is a non-financial CBA.
FIGURE 4 COSTS
Training
• Management Training in advanced methods

• Leadership Training in areas relevant to people management
Resources
• Defining Specialized roles for advanced people management

• Hiring specialized Resources
• Strategic positioning of internal resources as people managers
Cost of Quality
• Cost of assessments & certifications as per industry standards

• Costs associated with Prevention of Failure in the given
management process/ method e.g. Effort for Testing and
QA phases; Effort for conducting Reviews.
• Effort to check the expected efficiency and effectiveness of
a management process/ method
• Cost of Failures in the management process/method that can
be measured by direct or indirect impact on other areas; and
Effort for resolving these issues and defects
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FIGURE 5 BENEFITS
Improvement in Organization & Work Culture

• Builds a merit-driven, progressive culture.
• Builds the credibility of Management practices and decisions
• Contains employee/ worker dissatisfaction
• Dramatic reduction in inertia, sluggishness
•Faster resolution of Work group problems
• Healthy and positive work environments
Faster Change and Improvement Cycles

• Faster resolution of Management problems
• Change and control mechanisms are alert, responsive, flexible
• Decisions regarding proposed changes and improvements are
accelerated and optimized
•Management practices can withstand "stress tests" without
sacrificing quality e.g. Handling large volumes of people or
Contingencies
Efficient Application and Adoption Cycles

• Selected techniques can shorten the lag between advanced
Management theory and work-floor practice
• Selected techniques can raise Average standards by actively
exercising Management practices.
Higher Efficiency, Effectiveness, Productivity

• The link between Efficiency & Effectiveness to Productivity in
the organization has already been established
• Improved Management Effectiveness will result in higher
productivity for the organization
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Q1. Modern work places are able to resolve their problems and conflicts
well enough; management intervention is usually not required and our
teams do not need “hand holding”.
 We believe that most teams in current work environments do require
specialized guidance in resolving people-centric problems. (The
extent and nature of guidance will vary). If it falls entirely on team
members, the risk is in less experienced teams not resolving them
correctly; and/or their time being wasted on unofficial tasks.
 Even highly Self-Managed Teams reach a level of advancement only
after a struggle phase. It follows that there are less experienced
teams requiring application of active and optimized Management
methods during their formative years.
 It’s a super-kool concept- fully autonomous self-driven work teams
surging in bright, open work places. And a good state to work
towards (for the Office and Spaceship!).
 However, our analysis has considered both “traditional” and
“futuristic” settings to conclude that certain fundamental
management techniques- for decisions, change, and analysis- are
required even in minimalist conditions. Different types and styles of
“management” will be required- perhaps more participative or
consultative, and still more specialized in their competencies.
 Let’s say ten years from now, self-management has developed even
further in advanced workplaces; and we agree those teams will
require considerably less supervisory guidance, or controls.
 But who’s going to build up the “management intelligence” to get to
that advanced phase, in teams and organizations at large?
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This strikes us as a familiar argument brought up to contradict Active

Management techniques-
“Efficient work groups do not need over-active Managers to control
them. Trained teams can drive themselves with minimum interference- a
better arrangement that fosters innovation. So we don’t need a ‘People
Manager’ to keep making decisions!”
 The response is that typical work groups have to focus on their
work, not managing each other unofficially.
 Teams can be trained to be self-reliant, and in relevant corporate
skills. But realistically, advanced Management resources are
required at critical points.
 Our argument insists on the availability of “management-level
expertise” to the level that productivity and optimal work
conditions can be raised and maintained.
 We agree the positioning of management controls could be
within or outside the group. And where team transitions, conflict
resolution, morale building or other specialized techniques are
required- it must be done correctly!
 How to avoid over-controlling and throttling innovation is a valid
point among many others, which should be integrated into the
Manager’s training and conditioning.
Q2. Some of these views seem generic enough to be applicable for
social, cultural or other situations. Why is their application restricted only
to Management of work/business environments?
 We agree some of the fundamental challenges we brought up-
e.g. inertia, the need to manage imbalances- are ubiquitous.
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 However, (we reiterate) these Management solutions have been

designed in response to challenges in business, corporate and
entrepreneurial environments.
 The above arguments are based on the principle that maximizing
performance and productivity is still the priority, but unless
optimal conditions for people are maintained, the organization
cannot sustain that level. Therefore, people management is
viewed as a balancing act under these constraints.
 Applied without proper analysis one may reach incorrect
conclusions. Moreover, confusing the area of application would
dilute and divert the focus of the current exercise.
 Still, your observation is correct and these solutions can be
extended to manage environments other than work/business; and
to address more specific concerns. But the effort should be driven
by situation assessment and analysis in each case.
 Note that when this equation is shifted to social situations the
analysis will have to consider among other factors- differences in
the types and levels of control structures that exist to manage and
exert authority in a given social situation; and the permissible
levels of functional conflict that may be higher than what is
allowed within the organization.
 The author can be consulted - We can take it up as part of a
consultation project upon request.
 The reader is of course welcome to analyze and explore the ideas
and concepts in an intellectual capacity.
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SUMMARY
People management practices offer tremendous opportunities for
development. What are the different specializations we should consider
as part of these initiatives?
To answer this we first charted out a high level Road Map. Solutions
would incorporate standard best practices from Organizational Behavior,
Management Psychology and a host of other futuristic fields. The aim is
to identify areas (e.g. Decision making) that can be improved, thereby
raising average standards.
Then we took a generic look at Solutions- not in terms of any
particular management technique (reserved for later chapters) – but
those involving “People Manager” roles. These ideas originally appeared
as part of an online publication by this author- “Clinical Decisions for
People Management (2007)” (Section title).
Moving forward from the initial solution path, an Integrated
Methodology was outlined. It established the purpose and objectives for
the set of Objective Management Techniques presented in this book.
To enable a balanced analysis we also examined contradictory
factors that argue against the need for Specialized People Management
solutions.
A Cost Benefit Analysis summed up the expected Benefits and the
investment required for implementing these solutions in the
organization.
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METRICS FOR PEOPLE MANAGEMENT

In the quest for accurate and innovative methods to measure people
management practices, we first consider the standard Quality and
Management metrics.
Invariably, we find that quality metrics tend to show impressive numbers

that reflect efficiency; and are relatively convenient to track and
measure. But do not accurately reflect the success of a process/ method
in achieving its objectives. Beyond the standard metrics, we find more
insightful metrics are required. For management practices, the measures
of Effectiveness are highly significant. We formulate a Methodology to
calculate reduced Management Effectiveness of a process/method during
execution; and this guides us toward the more advanced solutions.
INTRODUCTION
In an advanced business environment: consider a Management Function
e.g. Training, Feedback, and Performance Appraisal. This is fulfilled by
process/ methods or systems installed in the Company- it could involve a
Selection process, Training program or feedback process and overlapping
areas. Or, the management function may just involve a set of high level
guidelines.
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The objective is to perform Management level functions related to

people, for which we want to measure the quality, efficiency and
effectiveness. A number of important assumptions need to be highlighted
to allow a more focused analysis.
ASSUMPTIONS AND CONSTRAINTS
 While referring to quality, efficiency and effectiveness we
consider the employee/worker being managed as the consumer
of this process/method. Other than that, we follow the standard
definitions for these measures and metrics.
 To focus on the problem of Management Effectiveness we
consider an advanced phase of standardization where the level of
technical glitches is assumed to be negligible.
 Exclusion of Technical issues is deliberate- this allows us to focus
on some fundamental causes of inertia, slackness, and subjective
factors that still pose a challenge from the management
perspective. We consider this a more realistic scenario, as
contemporary work environments already have access to
advanced techniques to deal with technical and domain-specific
challenges, e.g. IT/Software tools.
 Management Effectiveness is viewed here from the HRM
perspective; and not directly concerned with financial ratios
calculation or other. In addition to the standard metrics outlined
here, Models proposed in later chapters e.g. Decision Models will
have more specific metrics associated with them.
 We also note that a separate categorization for Management
methods, processes and systems, would enable the organization
to track and measure the concerned functions conveniently.
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STANDARD METRICS AND MEASURES

We start by considering the first line of standard metrics and measures in
the table Standard Measures and Metrics that we may come across, and it
does provide analytical insights on the management process/method. But
will this suffice to track realistic problems that appear in the people
department? Will it help identify critical issues?
FAILURE SCENARIOS
We then represent our problem in the form of failure scenarios discussed
earlier in The Quality View. Considering cases where- either the system
does not work at all for some people; or does not work properly for
others. The table Failure Modes classifies these as different failure modes.
This serves as a model of actual problems that may be encountered.
Suppose a process/ method is seen to work efficiently in most cases-
e.g. its response time is low; but it follows the steps and gets completed
to a pass/fail state.
However, there are marked variations in quality and efficiency-
working more efficiently for some, not so for others. Notwithstanding
these variations, the average efficiency of the method/process may still
be high. But the process also misses out people from time to time and in
some cases, does not get executed at all. In these cases it has failed to
fulfill its objectives hence the effectiveness is reduced.
Once the process is actively working and standardized, direct
measurements may not be feasible. Exceptions and deviations including
non-execution or incorrect execution- are revealed only when reported
as feedback or grievances to the Management. (How this data is typically
reported is shown in Failure Modes Expected Data Sources) A formal study
or assessment of the process/method - would also bring out deviations.
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Critical issues in the current context are the ones that demand
attention for resolution. They may be high severity with a major impact;
or those showing major discrepancies and contradictions; or just issues
that get reported more often. From a statistical process control
perspective, these are points that show higher deviation from standards
in terms of how the process/method is supposed to work.
Therefore it helps to locate special cause variations i.e. erratic
problems- such as manual error, or random mistakes in process
execution; and separate them from fundamental systemic problems- e.g.
incorrect system/ process design, or (more relevant to people problems)-
wrong decision making, or defective change and control methods. For our
purposes we need to diagnose both types of causes; as in people
management situations both types can assume importance.
From the table Failure Modes let us pick out the issue of non-execution-
where a management process/method is fully implemented in the
company, but does not get applied or executed at all for some people- this
issue is also viewed as critical.
REQUIREMENTS
We are now in a position to outline the Requirements for developing
Metrics and related Solutions applicable to the problem of accurate
measurement.
 Looking beyond the standard metrics, we need methods for in-depth
analysis of each failure scenario based on which to diagnose the
critical issues.
 Most importantly- we want to translate the result to see if it meets
the high-level, qualitative Management standards set up in the
organization. Therefore we need metrics that work at a higher level.
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 There is not much point in developing metrics and standards that

shift from one organization to the other. Therefore we need metrics
that work in the external environment.
HIGH LEVEL SOLUTIONS

 Assuming the above failure scenarios are reported- Verification of
whether a reported issue is an actual defect or failure in the system-
can be done through Situation Analysis. Objective Situation Analysis-
detailed at a later stage- is a structured technique meant for analysis
of HR and people management scenarios that incorporates best
practices.
 We will formulate the E- Methodology©. Essentially, E- is an indicator
of reduced Effectiveness of a management process/method. It
involves capturing errors in a process/ method and representing this
in terms of Effectiveness. As a precursor, we need to identify suitable
metrics for the process/ method in question (with an impact on
Effectiveness), and calculate the error involved, if any.
 Indices have emerged as a popular strategic tool for measuring
Effectiveness. We should note- the Index proposed here and
discussed as part of our example should not be confused with other
existing Management Effectiveness Indices.
 Possibly an important answer in our quest to raise the average
standards, involves- development of Indices to measure Management
Effectiveness in people management practices. Segmented by the
Management Functional Area, the Index should involve high level
metrics and criteria to measure and track a management function in
the organization e.g. Selection, based on Industry standards.
The above solutions will be applied to Case Example I.
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TABLE 1 STANDARD MEASURES AND METRICS
Type Measures and Metrics
Quality and  Cycle time, Pass/Fail Rates of the Management
process/method
Efficiency
 Employee Satisfaction derived from process/method
 Number of Issues left unresolved (during the QA and
testing phase - before Implementation)
 Number of Issues reported by employees during
execution; with related variables ( Issue type,
Severity level, Reporting phase)
 Number of Issues resolved without Escalation
 Effort taken to resolve Issues
 Cost of Quality (includes percentage of total effort
that goes into preventing Issues and defects by
Testing & QA activities added to cost of Rework due
to failure; and Cost of Failure)
 Failure costs e.g. Employee attrition due to
management failure
 Output/Input of process/method
 Response time, Fulfillment time

 ROI of the Management process/method;
Management Manpower ROI
Effectiveness  Coverage (For how many people was the

Management process/method executed in a given
time frame)
 Percentage of Issues left unresolved after formal
implementation of process/method
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TABLE 2 FAILURE MODES
Failure Mode Expected Data Source
Summary Data (Efficiency
Is executed- with reduced Efficiency as per
1 metrics), Feedback; Reported
standards
Issues
Summary Data (Effectiveness
Is executed- with reduced Effectiveness
2 metrics), Feedback; Reported
e.g. misses a few steps of the workflow
Issues
Statistical analysis,
3 Wide variation between two cases
Feedback; Reported Issues
Non-execution- It Is Not executed at all for

4 Reported Issues
Persons A,B,C
Does not work for special cases and Statistical analysis,

5
contingencies Feedback; Reported Issues
STEPS IN THE E- METHODOLOGY©
At various points, this method can interface with other optimized

techniques to perform problem diagnosis, situation analysis or other.
 Problem Diagnosis
 Measurement of Error
o Identify Metrics for Error Indicators
o Identify Metrics for Effectiveness Indicators
o Calculate Error
 E- Calculation
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CASE EXAMPLE I - LEADERSHIP DEVELOPMENT PROGRAM
Let us consider a Leadership Development initiative within the company.

It was intended to select the “most promising and talented” employees
for a Leadership Training program, but without complete specifics or
guidelines on the selection process steps; or how exactly the “talent”
attribute is to be assessed.
Implementation was planned for an approximate count of hundred (100).
Selection to be based on who had the required qualifications outlined for
eligibility and also leadership traits. First, nominations would be sent in
from each department and then the trainees would be finalized.
Selection was conducted for a total 105 and Ninety (90) candidates were
finalized for leadership training - an impressive number for any company.
However, after some problems were reported through complaints it was
found that they had missed out five (5) candidates who seemed to have
the requisite qualifications, but were somehow not included.
To resolve these issues- a preliminary round of meetings was held; but
under strict time and resource constraints the problems could not be pin
pointed. Then the management conducted a more in-depth and
methodical Situation Analysis to analyze and resolve the situation quickly,
in time for the Program start date.
It was revealed through objective situation analysis that- two candidates
of the above five should have been selected based on qualifications. One
of them had shown outstanding merit by taking informal leadership
initiatives in the past. On these grounds, this candidate should have been
finalized.
The other Management challenge- Constructive solutions must be arrived
at for the remaining candidates who were also motivated to get trained.
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We consider the above problem a case for the E- Methodology to

resolve, where potential errors in the process/method must be
diagnosed and calculated. We will continue to discuss it here in the
context of Metrics; while details of the objective analysis referred to
above are taken up in later in Objective Situation Analysis.
For the case example we assume that-

a) Process execution data are available, and represented by standard
metrics to start with.
b) We have access to statistical and quality methods such as Control
Charts (based on Six Sigma principles), Trend Analysis, Correlation
and Regression, Analysis of Variance and Factor Analysis to
generate distributions and patterns.
c) Planning has specified a set of goals and parameters for the
selection process/method e.g. the number of people it expects to
cover in Leadership Training- this may be exact, an approximate
coverage, or range bound e.g. we expect to short list 90-100
candidates from the nominations received.
d) In this case, action is taken based on complaints forwarded to
management by the candidates who stand to be missed out of the
Leadership Program.
i. An employee complains that s/he was not nominated for the
program, but should have been based on qualification (stated
criteria).
ii. Another employee claims the interview process in the final
selection round was not conducted properly; though s/he does
qualify based on “leadership potential” (criteria were not
specified) and this complaint is also logged as an issue.
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QUANTITATIVE MODEL FOR E-©

Case Example I provided a detailed event description- a Selection process
was implemented for a large number of people; but seems to have
overlooked a small subset in a given timeframe (i.e. five persons missed
out from one hundred for the annual Leadership Development program).
RATIONALE
Without in-depth diagnosis we cannot be sure if the reported 5% issues
are valid – i.e. whether it is a defect in the selection process, mistakes in
formulating eligibility rules, human error while processing, or other type
of problem.
Alternatively, if the missed candidates are all found to be ineligible
based on the selection criteria- then there is no error at all, in terms of
applying or executing the selection process. However, it can still point to
lack of method/ process quality if we are unable to track the issues and
diagnose these problems efficiently.
At first glance the magnitude of this issue amounts to 5% or less.
Coverage of 90 for a Leadership program that planned on taking
qualifications and ability into account- that is indeed an impressive
statistic. And unless there was a special push to resolve these issues, it is
always easier to shrug off the 5%. Now, if we consider a limit of 90+
acceptable for our purposes, this working standard actually passes!
The question is, does it also pass standards of fairness, equality and
other high-level Organization directives that aim to promote the
deserving and talented; and is it aligned with management best
practices? If not, an implemented count of 90, 100 or 1000 is just a
number- that tells us nothing about the actual effectiveness of the
method/process being implemented.
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Surface statistics may not reveal the downside risks of applying the
management process/method incorrectly. It can be further argued that
ignoring the issues exposes the organization to serious Risks, outlined as
follows-
 A non-selection/missed count of 5 is misleading if the impact of
the missing five is found to be high. This means if the excluded
candidates did possess the talent and abilities to make value
added contributions to the organization- it is clearly a missed
opportunity to avail of existing talent; which means- a reduction
in manpower ROI, and it helps to quantify it.
 Even a small percentage of issues may indicate serious problems
that undermine system quality and effectiveness. By ignoring
them, the organization ignores the more economical path to
rectifying serious problems. Whereas, resolving that 5% will help
to identify problems in time and on demand.
 We extend the above point to ask- How do we know the process/
method worked correctly for those selected? The organization can
never be sure of the quality and reliability of a process/method on
the work floor, unless ‘people issues’ are duly resolved, paving the
way for continuous improvement.
PROBLEM DIAGNOSIS
So where did the process/ method fail? Considering that we do not have
the time for end-to-end process analysis, we opt for an objective
examination of reported issues.
The five missed cases are analyzed through an Objective Situation
Analysis technique- In this case, applied for Problem Diagnosis. It involves
a framework that will at first diagnose the problem; determine the type
of error in each case; and finally yield a measure of impact of error.
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Diagnosis reveals errors in the second phase. The first phase was
based on rule-based criteria (qualifications and work experience); while
the second was informal with no guidelines or specified criteria for
Evaluation of Leadership.
The objective analysis applied a set of improved criteria to re-assess
the stated ability (leadership) –and quantitative results are obtained. This
confirms if the person who got missed out was actually eligible for
selection or not; and how far off the mark the selection process was.
MEASUREMENT OF ERROR
In other words, the magnitude of error involved- is considered
proportionate to the final quantitative Eligibility score (Error indicator)
obtained for each candidate.
Refer to Appendix Case Example I - Effectiveness of Leadership
Selection for detailed calculations and the next Case Example I- Errors for
resulting data. In answer to the Question: Is Person A/B/C eligible for
selection to the Leadership Training Program?
Possible outcomes are-
i. IS eligible for selection based on ALL criteria; Result=100%
ii. IS eligible based on x% criteria; Result=x%
iii. IS NOT eligible based on any of the criteria. Result=0%
Results (shown for Candidates A and E) -

i. Candidate A. IS eligible for selection based on criteria, with score of
OVER 80%; was previously assumed Ineligible. Selection Error >=
80%
ii. Candidate B. IS NOT eligible based on criteria, with score of 0%; was
previously assumed Ineligible; Selection Error = 0
iii. Candidate E. IS NOT eligible based on criteria, with score of 72%;
was previously assumed Ineligible; Selection Error = 72%
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TABLE 3 CASE EXAMPLE I- ERRORS
Result = Magnitude of Error
Candidate ID Error Type Impact
(R i)
A At least 80% Wrong Decision High
B No Error N/a N/a
C No Error N/a N/a
D No Error N/a N/a
E 72% Process Execution Moderate
EVALUATION RESULTS
 Evaluation results are listed above from Candidate A to E. persons B, C and D did
not qualify as per standards of selection- hence there was no error.
 Candidate A indicates a clear contradiction- as the candidate passed all criteria

including leadership potential but was not selected. In this case, the decision was
not made. When translated to loss of Effectiveness, it has a high impact.
 Candidate E did qualify and pass the preliminary selection phase with 72%; but the
improved evaluation technique still did not find facts to support leadership ability.
Hence this was not a selection error.
 However, objective analysis revealed that the above candidate was rejected
arbitrarily without gathering relevant facts– as the required step was skipped, it
does indicate an error in the working of the process.
 We classify these results into High, Moderate and Low categories to convey the
impact of error. Thereafter matching these results with the main population can
provide reliable insights about the overall Effectiveness.
E- CALCULATION
 Applying various metrics and techniques, E- Methodology is a set of
methods to measure the E- Metric.
 E- Methodology interprets the diagnosed errors and associated
impact. In this case, Error is measured as average of (Actual Eligibility
– Assumed Eligibility):
Average Error = ∑R i / N = 30.4%
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 The above result shows that Management Effectiveness is reduced by

30%; thus providing an estimate of error in the Leadership Selection.
 In this case, the Effectiveness metric is based on a review of Eligibility
criteria and Evaluation results. It did not involve direct measurement
of the process. In other cases, metrics may be fixed based on the
working process itself e.g. Interview data, response/completion time.
CONCLUSION
To summarize, the E- Methodology aims to measure the defect/error in a
management system, process or method in terms of its reduced
Effectiveness. The E- Metric is the quantitative result.
 Methodologies like the E- and associated metrics show that skipping
just five instances can drastically bring down Effectiveness of the
process/method by over 30%! Numbers alone do not impress us
anymore.
 The process has not worked “fairly” in this case, as we find that–
a) Selection criteria were not accurate in implementing the merit-
driven objectives of the company.
b) Certain phases of the process were not sufficiently planned or
specified, leaving space for significant error in executing.
c) In terms of negative impact on manpower ROI, talented
candidates were missed out.
 Similar cases abound in processes that involve people - there are
always questions left to personal opinion, slackness, inertia and
inaction. (Our company won “Product of the Year”, so we are on the
right track. Does 5 people missed out of 100, really matter?).
A top-down push for rigorous improvement in these areas, otherwise
viewed as relatively unimportant, can change that.
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FIGURE 6 PROCESS FOR E-
SALIENT FEATURES
The E- methodology involves focus on areas that tend to show marked
deviation from standards; then the application of suitable techniques to
measure the magnitude and impact of failure- in terms of how the
method/process is expected to work versus its actual reduced
Effectiveness.
 Applies a set of metrics or methods. As Effectiveness implies fulfillment of
method/ process objectives, Effectiveness indicators should be decided
accordingly.
 Suitable techniques should be applied for error calculation; as in this
example- Situation Analysis was linked to Talent Evaluation to measure
Selection errors. The assumption is we would get the same result for the
cause, error type and severity of a problem.
 Not all Errors would reflect on Effectiveness factors. Therefore, Error types
and methods of measurement should be decided as appropriate.
 Works on problems that typically occur post-implementation, after the
technical errors have been minimized.
 Considers economical, shorter routes for analyzing problems without
sacrificing quality and reliability standards.
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EFFECTIVENESS INDEX FOR P EOPLE MANAGEMENT

Effectiveness Indices for People Management are envisioned here with
the following properties–
 Would Involve a categorization based on the Management function e.g.
Selection (as shown below), Performance Appraisal and Training.
 Quality indicators are based on clarity in the Selection criteria, definition
of process guidelines and other factors.
 Effectiveness of Selection Function will involve a determination of
whether selection is based on eligibility criteria, whether standards are
defined; and if the Process, method or system works based on these
standards, or other expected criteria.
 Actual-to-Assumed Effectiveness of the Process/method is-
(Actual – Expected or Assumed) Performance or Output measure
Expected or Assumed Performance or Output measure
 E- Metric can be considered to calculate the Actual Effectiveness,
especially when direct measures are not feasible as shown in the
example.
TABLE 4 INDICATORS FOR EFFECTIVENESS INDEX IN SELECTION
Measure Indicators
Standards are defined
Operational guidelines are defined

Quality
Process/ method works as expected
Variation between different applications
Number selected based on Selection Criteria

Effectiveness
Actual-to-Assumed Effectiveness ( (E a – E 0)/ E 0)
E- Metric
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TABLE 5 INDEX CALCULATOR
Case
Indicator Description and Calculation for Case
Example I
- Measures the extent to which Standards
Standards are defined 80%
are defined.
- Extent to which Operational guidelines are
Operational guidelines are defined. In case example I, only the first
50%
defined phase has defined selection criteria and
second phase has none.
- For the 90 selected in this case, it is
assumed that all criteria were applied, as
Number selected based on there is no data to indicate otherwise. 90/105 =
Selection Criteria 86%
- For the 5 persons missed out, we know
selection criteria were not fully applied.
- Number of correctly processed cases as

Process/ method works as 100/105 =
%age of Total, in this case it is assumed to
expected 95%
be 100 out of a total 105.
- Data from all applications is analyzed with
statistical methods e.g. Analysis of Variance
Variation between
to get the %age measure of variation. For 60%
different applications case example I, it is assumed as 60% based
on the available data.
- As per E- Calculation, this is considered

E- Metric 30.4%
equal to Average Error in Selection.
Actual to Assumed
E a / E0 = (1 + E-) 69.6%
Effectiveness
Number selected based on Selection Criteria
Actual to Assumed Effectiveness of the Process/ method
E- Metric
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BENEFITS OF E-
1. A strict measure like the E- informs the organization exactly
where a process/method stands, when it comes to work-floor
management effectiveness.
2. Heavy-duty processes that involve large counts of people often
end up relying on technical measurements alone, for lack of
time/resources.
a. To rectify this problem, E- provides an accurate
method to assess the negative impact of problems.
The result is an economical path to in-depth,
sustainable improvements.
3. Provides insight on situations with high levels of ambiguity, lack
of structure and definition; or where direct measurement of an
already implemented process/method is not feasible.
BENEFITS OF EFFECTIVENESS INDEX IN PEOPLE MANAGEMENT

The Cost Benefit Analysis section in the previous chapter had noted the
organization wide benefits of improvements from a people management
standpoint.
1. Can be applied to assess the accuracy and fairness of
management practices.
2. Provides a fairly simple way to measure alignment of work-floor
management practices with high-level organization principles.
3. The link to high-level organization objectives is achieved by
defining appropriate Effectiveness Indicators and/or by applying
suitable models in the Situation Analysis phase.
4. Works as an Industry standard.
5. Enables the organization to prepare and respond efficiently to
contingencies and complex situations.
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TEAM STATES©
The quality and effectiveness of management practices that involve
decision making or other techniques can be inferred indirectly from work
group behavior and productivity factors. Here we examine Team
dynamics as a function of Management level factors in the work
environment. A better understanding of factors that drive team dynamics
can be applied to assess and manage, at the work group level.
The terms advanced and dysfunctional are applied to describe team
or work group1 states- a classification of the types of team dynamics a
work group can be in. It is meant to be flexible and open (new States can
be defined); and it can be used in research and analysis to represent a
realistic gradation between extreme states.
Definition:-Team State© is defined as a composite factor that reflects
the Team dynamics in terms of Team performance, and is indicative of
the working styles and behavior of the team. As we know it, Team
Dynamics reflects the team behavior from a psychological viewpoint. In
this book it is further specified by Attributes to be found across the team
behavior spectrum. See Team State and Attributes.
We have defined Team State and identified a few categories; but left
open the attributes that can be associated to a specific Team State. That
is intentional, as a straightforward relation cannot be assumed between
the team dynamics and team state.
For example, “rigid” or “inflexible” teams may be found to perform
well (functional state) or badly (dysfunctional state) in other cases.
Similarly, a “disorganized” team may be productive in some scenarios (i.e.
a functional state). Here we refer to different work situations as scenario.
1
OB recognizes different types of teams. Here we treat work groups as equivalent
to team. Unless otherwise specified, “work group”, “team” have the same meaning.
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In such cases empirical data would enable us to see correlations

based on which dependencies can be stated. Research-based results may
allow us to make statements such as- E.g. “Chaotic” teams are found to
be dysfunctional under most conditions or “Collaborative” teams are
associated with advanced performance levels in most cases.
TABLE 6 TEAM STATE AND ATTRIBUTES
Team Dynamics (Attribute) Team State Scenario

Synergistic, Adaptive Advanced A
Collaborative, Coordinated, Rigid Functional A
Chaotic, Discordant, Disorganized Dysfunctional A
Sluggish Failed A
Rigid Dysfunctional B
Chaotic Functional B
At the work group or team level, the understanding is that work

efficiency and productivity can be measured and tracked separately
through quantitative metrics related to team performance. As we know
this data is easily available.
MANAGEMENT QUALITY AND EFFECTIVENESS IN TEAM STATES
In this model we consider management quality to be a quantitative and
measurable function of the support systems and resources set up for
management i.e. it will involve systems, processes and people.
Therefore Management Quality metrics are primarily associated with
Management support systems to indicate volume and frequency of issues
handled, and resolution success rates; where issues are those faced by
the work group in the course of work.
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For example, what are the support structures and resources available
for resolving issues? How successfully are issues related to team conflicts
being resolved?
Management Support Systems provides a count of the systems,
frameworks and processes set up to manage the work group or for it to
manage itself. For example, a work group (WG1) has a feedback
application and process set up for it. And we note that the Management
Resources assigned to a team may be externally positioned or within the
team. These are variables associated to the number and designation of
management resources available for the team.
Management Effectiveness should measure how far the support
systems, resources and management techniques are able to achieve
management objectives. Accordingly, Management Effectiveness metrics
would be derived based on the Management practices, methods and
techniques applied on the team. We would measure for example, the
effectiveness of a feedback mechanism, team transitioning activities, or
the effectiveness of managerial decision making in recognizing talent.
Management Competency is another important tool. Models and
frameworks exist for it that should be examined in relation to
Management quality and effectiveness metrics.
TEAM STATES MODEL©

A hypothetical conceptual model is provided on work group states. A
given work group can transition through all the states or only a few; the
sequence to be determined by the work group behavior.
The model provides a method to compare factors that characterize
the work group- Team States; Management Quality and Effectiveness of
management practices and support systems; Performance and work
output of the team (productivity, efficiency).
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While management effectiveness can also be inferred indirectly from

team performance; the current Model allows us to track these variables
separately. Any inter dependence between the factors can be viewed
through the model.
Work environments that can be characterized as extremely
imbalanced, chaotic or mismanaged occupy the Dysfunctional band of
the spectrum from those with advanced capabilities. The average or
typical environment is considered to be placed somewhere in between
i.e. the Functional state.
TS = f (Management Quality, Effectiveness)

- There is a valid inverse to the above function as Management quality
and effectiveness can be adjusted in response to the Team State (TS).
- For a given level of Management Quality and Effectiveness,
Team Productivity = f (TS)

EXPLANATION OF TEAM STATES MODEL
- Refer Team States model.
- Model quadrants I to IV can be related to attributes in Team
Dynamics Scenario A or Scenario B in Team State and Attributes.
I., IV. Illustrate positive situations- a confluence of positive
Management variables reinforces each other and drives the team to
more progressive states.
- Here the Management quality and effectiveness are shown to
be consistently high which enables successful transitions.
- Management resources and support systems (provided by the
organization) work together to increase team productivity and
efficiency.
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- With time (t), the team progresses from a state of flux

(transition) to a more functional state (functional) and then to
states that enable extremely high performance levels
(advanced).
FIGURE 7 TEAM STATES MODEL
II., III shows negative situations where the opposite happens -

negative factors reinforce each other, driving the team to more
dysfunctional states.
- In the intermediate discontinuity no management support is
applied. And in the dysfunctional state, limited support may
be available but is ineffective and unable to resolve problems.
- The result is assumed to be chaotic, discordant team states
(dysfunctional) showing conflicts, unresolved issues and
reduced performance.
- Theoretically, it ends in a failed state of near zero productivity.
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TABLE 7 TEAM STATES
Team State Description of Team State

I Transition  Work group (WG1) is in a state of flux.
(D – E)  Productivity and Efficiency are low.
 Management initiates more support and resources for
the team.
I Functional  Management Quality and Effectiveness factors are on

the rise.
(E – F)
 Support systems and resources get ramped up in
response to situations.
 Management competence being exercised on the team
and/or in the team gradually builds up.
 Team enters functional state where performance levels

range from satisfactory to good.
I Advanced
 Team reaches outstanding performance
(F – G)
I,II Discontinuity  Support structures and resources are not being applied.
(C- D)  There is temporary stoppage of activity in the team.
II Dysfunctional  Characterized by reduced performance under reduced

(B – C) management support
II Failed
 Near zero productivity
(A – B)
TEAM STATE ANALYSIS©

Analysis tool that serves the following purposes
The Team States model analyzed the working and behavior of teams from
a state chart view, linking the behavioral dynamics to important factors-
Management quality and effectiveness; and also to Team productivity
and efficiency.
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Team State Analysis© is a method that can be exercised as part of

Situation Analysis, involving a study of team or group activities and
behavior. This lends itself more easily to system representation of the
work group or team in a work environment. It can relate the effect of
management and environmental factors to team dynamics; and enable
us to see how team dynamics in turn shapes these factors while taking
into account, performance and productivity.

Q1. Is providing greater focus on the solution areas as suggested here,
meant to be a comprehensive solution that will address all the problems?
That strikes us as too simplistic.
The solutions are meant to address key problem areas. By identifying
root causes, we aim to address problems within a fairly wide radius,
for further analysis and solution formulation.
Q2. Management practices already recognize the link between Employee

performance, Team effectiveness and overall Productivity. This approach
sounds the same?
The current push is for Management Effectiveness, aiming to
maximize productivity while enabling optimal work conditions. We
try to measure management effectiveness directly; as well as
through team and work group metrics (i.e. team dynamics,
productivity and a new construct provided here to capture
subterraneous factors- the Team State©).
And we know there are numerous solutions and techniques being
advocated today in Management, many already implemented and
many more being developed. This is a progressive and welcome
trend!
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But we find this question often left out- Is it enough if the “teams”
and “team players” keep training to perform better and better?
It is essential for the organization, but not enough. Improvements
need to focus on Management techniques too. This means the
Management and business Leadership have to be trained as well, on
optimized techniques (2006). And particularly in critical areas of
decision-making, situation assessment, change and control
mechanisms- the training has to be rigorous and advanced.
Q3. But there are solutions here that my company does not require. And
I don’t understand exactly where these solutions would fit!
We agree there is a risk of over-generalizing, given the sheer range of
work group types and companies. All methods are not expected to
apply to the same work group or environment. These solutions are
meant to address root causes behind typical work situations- from the
menu of proposed solutions you should find answers to some specific
questions.
The chart Work Environment Problems vs. Solutions will shed light on
where a particular solution fits on the map. You can also refer the
case examples we have provided. In general, this type of data can be
segmented based on Geography, Industry, Company size, and work
group coordinates (at Management level or other).
SUMMARY
In order to manage effectively, it becomes necessary to assess and
measure. But then, what methods of measurement can we apply to
people-related practices- an area known to be qualitative, driven by
psychology; steeped in ambiguity and subjective thought, shaped by
political behavior, and usually confused with other functional areas in a
company?
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Well, the Quality View is often the best place to start!

In the Quality chapter we had elaborated the rationale for stricter
quality in people management practices, which provided the basis for
examining Failure modes. We then discussed the types of failure
scenarios that organizations tend to encounter when it comes to
executing methods and processes for managing people.
This chapter on Metrics resumed the quality thread by listing the
metrics and measures that we need to consider. The E- Methodology and
an Effectiveness Index are introduced as stringent methods for the
purpose of measuring Management quality and effectiveness.
The E- methodology suggests that a management process/ method
will tend to show errors and defects even in standardized environments,
observed when the process/ method deviates from expected behavior in
some cases. These errors may not appear significant based on ordinary
metrics, “numbers” or “surface statistics” –such as volume, turnover or
coverage. But it can mean a severe reduction in actual Effectiveness,
making it important for the organization to track measure, and minimize
the errors.
In Case Example I, E- deals with issues that arise from defective
functioning of a Selection and Talent Evaluation process- resolving such
issues can translate to improvement in Manpower ROI.
The benefits of Effectiveness Indices in People Management are
discussed here, as a high level metric that should be applied to work at
the Industry level. Finally, Team State Analysis is recommended as a tool
for analyzing different conditions in the work environment, and for
adjusting management controls to derive optimum results.
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INFLUENCES IN THE WORK

ENVIRONMENT
Standard definitions of Influence describe it as- a power affecting a
person or course of events; a cognitive factor that tends to have an effect
on what you do. In Organizational Behavior (OB), Influence is accurately
viewed as- Influence exerted by sources of Power in the organization.
“Power bases” and the use of power as being legitimate (i.e. derived from
formal authority) or otherwise is another significant point that has been
brought up in OB theory.
In this chapter we recognize Influence as a means of communication –
including non-verbal, which drives thoughts and behavior in work and
business environments. As we know, influence can be exerted through
specified and tangible methods e.g. written or verbal instruction.
Furthermore, Influence effects also appear as unspecified but dominant
factors in management techniques, determining actions and outcomes.
Here we suggest an influence-oriented approach to analyze some
workplace scenarios (particularly relevant in current business
environments). And while staying aligned with existing definitions we will
provide greater focus on the effects of influence at a management level.
Our proposed Solutions will take an objective approach that incorporates
psychological elements, for managing these Influence effects.
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OVERVIEW
Definitions of Influence might have confused the workforce twenty years
ago; but with intelligence and awareness levels being so high in current
business environments, people know what it means.
However, most of this awareness remains submerged in the collective
psyche and not at a level that can be defined and effectively controlled by
management techniques; not even to the extent that other factors such
as Motivation or Perception have been.
Considering the significant role that Influence plays in driving business
environments and Management decisions, it is time to analyze this effect
further. As part of this effort we look at scenarios where influences work;
where they turn counterproductive; and what the limitations are.
TYPES AND LEVELS OF INFLUENCE
Power sources in the organization set up influences from higher levels to
drive work. If we classify them as legitimate, relevant and work enabling-
we still have many other types and levels of influence to deal with.
The typical work environment is driven by multiple influence levels.
Corporate influences drive strategic thought and action which in turn
generate influences, and so do Organizational policies. Corporate politics
is shaped by the interplay of competing power sources that exert
influences. Influence effects appear as an important factor in
Management and Leadership decisions.
Then there are influences that drive operational and tactical moves.
Work groups are impacted by these influences depending on their
position and purpose in the organization. From the other side of the
table, these formal or informal groups can take initiatives through
promotional efforts, meetings and other collaborative tactics; and this
does “influence people” in the work place- to a certain extent.
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Organizational, management and (internal) environmental influences

play a part in setting up the group dynamics. Team members are
influenced in terms of how they play and compete; to the extent that
individual and group behavior is now determined more by Influences
than personality traits.
Work environments are also impacted by External influences as
organizations interact with clients, business partners and various entities
in the external environment. Work groups can be subject to influences
arising from socio- cultural and economic factors. An advanced
environment may have successfully insulated itself from unnecessary and
extraneous influences; but a typical situation is more impacted by them.
The role of influence in Management decision making is of particular
importance. We consider decisions to be based on several factors-
analytical reasoning, subjective views, facts and informational inputs.
Standard rules and regulations come into play in this model, so does the
effect of influence. And as previously noted, these influences may be
legitimate or non-legitimate depending on what type of power source is
exerting them, and why.
In summary, Influences have an all pervasive effect in the
organization, impacting work environments in several ways.
Now, there are questions we need to ask in the context of
Management Practices.
As long as influences are aligned with objective assessments and
factual data there is no confusion. But- What if the driving influences
contradict objective reasoning and facts relevant to the decision? What
path should the decision maker take? What if influences in the work
environment are driving it toward dysfunctional and counterproductive
states? How should one respond?
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Some fundamental questions are discussed under Solutions in this

chapter; and later in Objective Decisions.
INFLUENCE -BASED TECHNIQUES
We now organize the preceding information to observe that the study of
Influences in Management involves a finer classification of these effects-
a) Influence based techniques that generate influences for various
purposes- all valid and legitimate e.g. work groups promoting
their ideas by setting up meetings and workshops; a company
building up its brand image and marketing its products; or
motivational speeches by the management.
These and many more, are recognized as valid tactics in the fields
of Public Relations, Marketing, Employee Relations, etc. as the
case may be. And because they work by generating and driving
influences we apply an abstract classification- these are Influence-
based; or Influence techniques.
Unfortunately, influences could also be generated as a means to
satisfy non-legitimate, self-serving and counterproductive ends.
Dysfunctional scenarios emerge here.
o For example, a group that indulges in rumor-mongering to
damage someone’s reputation- not based on any valid
rationale, nor can the power sources responsible, be
easily verified. Similarly, a group uses influential family
connections to push its “rivals” out of business.
o Another example- If we study Mind games as advanced
Influence techniques, there are distinctly positive and
negative examples to be found.
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b) The other aspect of Influences in management involves the

indirect effects of Influence on standard Management techniques.
From determining outcomes in decision making; to shaping team
dynamics, influences can play a significant role in driving
management practices- and we refer to these states as being
Influence-driven©.
Management practices being driven by the right level of valid
influence effects, is a positive sign.
o But dysfunctional scenarios could also arise in this
category. When Decisions making is entirely dominated by
various influences to the exclusion of performance based
and logical reasoning; or, negative and irrelevant
influences take on so much importance that they start
driving decisions and environmental dynamics.
Notwithstanding the high levels of standardization that exist in
modern management, negative influence tactics may persist. And given
the proliferation of power sources in the current business landscape, can
become dominant as counterproductive factors- unless active
management steps are taken.
It is important that management authorities take continuous steps to
analyze, control and minimize the dysfunctional effects of influence;
while being more aware, and optimizing the positive effects. Objective
Management techniques enable them to do that.
STRENGTHS AND LIMITATIONS OF INFLUENCE TECHNIQUES

As discussed, there can be positive and negative influences at work. And
the effect of influences can be work-enabling or disabling depending on
the situation.
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First, the positive and work-enabling. As stated earlier, legitimate

requirements for driving fast-paced work and collaboration are being met
in organizations through Influence-based techniques.
These techniques also enable organizations to build up the work
culture.
 For example, in order to foster a culture of growth and
innovation a company applies influence techniques to
“program” work groups into higher levels of creative thinking.
And initiatives are launched to promote these groups.
But on the downside, Management techniques that react to
influence effects alone, in the absence of factual and objective techniques
can be misled to follow practices that give rise to imbalances.
 In the race to promote creativity the Management pays
exclusive attention to hiring and promoting the creative
stereotype, neglecting fair and unbiased performance
assessments for the rest.
RATIONALE
Next we explore reasons in further detail as to why Influence techniques
turn out to be so counterproductive -
1) Not all power sources associated to influences are valid or conducive
to productivity and efficiency. As we examine the gamut of influences
we observe that even non-legitimate influences can enter into work
environments and management decisions.
a. Groups with self-serving or non-legitimate political motives can
exert counterproductive effects; creating influences that flout
best practices, moral and ethical codes.
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b. Ultimately, it is up to the quality and effectiveness of

management techniques to screen these effects and determine
how important a role such influences should play.
2) Though it serves as a tool to drive work, exerting influence cannot be
regarded as an intelligent management technique, per se. The
following points provide the logical basis of this argument -
a. Influences cannot assess the difference between dysfunctional
and progressive states.
b. Influences do not resolve conflicts.
c. Influence-driven thinking is not always mindful of
performance or quality.
d. Stated differently- Influence comes from power, and not all
power sources can be validated as being performance and
merit-focused.
Given these drawbacks in the application of influence, it becomes
a concern when it emerges as the dominant factor driving
management action and decisions. And in cases where active
management techniques are not available, Influence effects can
start driving the work environment!
3) Influence-driven decisions© tend to propagate imbalances in the
work environment. This view is based on the following arguments:-
a. Decisions dominated by influence factors tend to remain
unchanged irrespective of the situation.
b. Because (i) objective techniques are not being applied to
accurately assess situations and (ii) influence-driven thinking is
not sensitive to situational parameters, the end result is an
environment all the more resistant to improvement.
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c. Subject to the same influences, these decisions tend to

“follow the beaten path” even though facts/events in the
situation may demand some change. Alternatively, they may
become erratic and lack consistency, as changes occur in the
influences being exerted.
d. In either case, if there is no intelligent assessment behind it
the decisions are not going to be effective.
e. This can lead to imbalances such as- positive or negative
stereotyping at work. In extreme cases, the same people keep
getting promoted or demoted to spectacular highs or lows,
regardless of their actual benefit to the organization.
f. The result is people being excessively over-valued and over-
rewarded many times over; without an accurate assessment
of their skills, competencies or performance.
g. Negative stereotypes lead to the opposite situation- a person
is compulsively and repetitively under-valued regardless of
effort.
h. Techniques such as Objective Situation Assessment should
work to clarify these situations objectively, and correct such
domino effects in people management!
i. Another effect is repetitive thought and behavior patterns in
the work environment. Here, the same influences propagate
the same behavior across different work situations, giving rise
to “parallel situations”. We consider the previously discussed
replication problems to be linked to influence effects.
j. Negative influences can lead to harmful stress and
psychological problems.
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The Figure - Effects of Influence in the Business Environment- Pros & Cons
examines the benefits vs. pitfalls of allowing influence effects to become
dominant factors that control and guide managerial decision making and
other management practices.
1. Influences drive work and collaborative effort at

all levels.
2. Minimizes the need for explicit communication
to supervise or instruct at every point.
3. Saves time and cost overhead to specify logic for
decision-making at every step.
4. Positive/ progressive influences can help to build
the right organizational and work culture
5. Supports confidentiality of information.
1. Work environments can be impacted by

counter-productive and Negative
influences .
2. Largely unspecified, beyond the reach of
standard Management checks, Quality
control or Change Management.
3. Fosters groupthink, followership, inertia
4. Stifles active "out-of-box" decision making.
5. Influence-driven decisions are not alert to
changes in the situation; lack quality and
performance focus.
6. Builds resistance to change.
7. Negative/ counterproductive influences can
stifle growth & innovation
FIGURE 8 EFFECTS OF INFLUENCE IN THE BUSINESS ENVIRONMENT- PROS & CONS
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SOLUTIONS
When power sources exert influences, there should be valid and
legitimate reasons for it. Influences can be exerted only if certain
conditions are met. It also means that Influence techniques should pass
certain standards that are relevant to the situation.
If we now examine the influences behind a management decision or
situation for validity and correctness-
One rule of thumb is that, influences that arise from policies and
strategic initiatives at higher levels of the organization are bound to be
valid and productive; and at lower levels, it is the influences based on
standards, guidelines and rules that are valid. This allows us to
understand when decisions are driven by valid and positive influences,
and when they are not.
Problems do arise when the organizational standards are not well-
defined or are absent. And in these cases, relevant meta- models do need
to be applied. For example, Ethical standards- to work with intelligent
decision making and management techniques.
Under-standardized environments will invariably require the decision
maker to overcome the effects of irrational and negative influences. One
solution is to apply objective management techniques. How to manage
progressively in less standardized environments through objective
techniques- is among the challenges taken up in this book.
Now we return to the challenge in decision making- “What path
should the decision maker take, when influences contradict facts?”
The technique being proposed is Optimal Influence Selection©. It is
meant to work at a psychological level, to correct or prevent imbalances
caused by the effects of influence.
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OPTIMAL INFLUENCE SELECTION©

The best practice suggested here is for the decision maker to be aware of
all influences around the situation; to develop enough rationality and
objectivity to filter out counterproductive influences, and allow decisions
to be driven by those influences that are factual, relevant and work-
enabling. Facts should take priority; however, analysis of contradictory
influences to the extent possible, can lead to more accurate results.
Optimal Influence Selection© enables balanced decision making in
tangible terms; and can be supported by formalized methods that include
objective situation assessment.
To explain the terms in the above definition- The meaning of factual

and work-enabling should be obvious. Relevance is determined by what is
relevant to the current work situation. For example, Cultural views are
not relevant to the work situation unless specifically required.
It is expected that Management decision makers at all levels would be
able to apply this method. Alternatively, a specialized people
management resource can be positioned to provide guidance.
MANAGING ENVIRONMENTAL EFFECTS
Solutions at the level of decision making and situation assessment play a
crucial role in controlling influence effects; however, improvements
should not stop at the “micro-level”. This approach should be
institutionalized as part of strategic initiatives that involve formalized
change and control.
A work environment on the mid to advanced scale may already have
the capability to adjust its environmental controls. In these cases, it is a
question of actively exercising management methods at operational and
strategic levels. To enable this, top down initiatives are essential.
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Problems arising from- dependence on informal methods, decision

ambiguity, under standardization and under management- these are the
areas to watch out for, where influence effects tend to grow unchecked.
Provided a Management process/ method is designed per quality
standards; and with potential failure modes taken into consideration, it
can work to control influence effects. This holds true especially in
corporate governance, and areas that involve the establishment and
management of frameworks and standards.
As discussed, multiple levels of Influence effects are involved in the
organizational environment. We have analyzed these effects from the
viewpoint of how they affect work environments.
The impact of influence on management techniques such as
Managerial Decision Making was considered. We noted that influences
can be generated in the internal and external business environments.
It is important to note however, that our discussion did not include
in-depth analysis of Influence effects or Influence-driven dynamics at
higher levels. There are bound to be some differences in the way
Influence effects impact Leadership levels in the organization, but that is
not within the current scope of analysis.
MENTAL MANAGEMENT IN WORK PLACES

Fifty years from now, will work groups function on a more mental
wavelength, and be managed more mentally (if at all)? Or, given the
advancement in Communication infrastructure, will there be more
specified and verbalized communication?
This is an important question to ponder when defining management
techniques!
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The answer would depend on the type and level of the work group
being considered, among other factors. But it is a question that applies to
current environments and also to future management practices; and
given its association to Influences, is prominently featured here.
We view mental management as a focused and advanced form of
Influence-based techniques; however in this case the objective of the
exercise is usually valid and relevant to the situation; and also
constructive. For example, it can be applied to guide people at work, or
to provide mental training and conditioning.
Let’s examine current trends. In advanced business environments,
the ability to follow complex instructions mentally, and at a higher level-
practice advanced mental techniques, is viewed as a sign of distinction.
Work groups pride themselves on being able to manage on a more
mental wavelength, with a certain elitist snob value associated to it!
In the author’s view- complex mental functions do indicate high
levels of intelligence, required especially for Management and higher
functions in the corporate environment. Moreover, these practices
require Thought Leadership.
There are of course, different types of intelligence and ability- this
happens to be one, and like other competencies, can be improved with
training and experience.
All things considered, the view is that mental management will grow,
in line with increasing mental abilities. Future business environments
could see even more complex mental functions evolving. At the same
time, scientific and medical advancement will enable more clarity in our
mental processes.
On a parallel track, methods of explicit communication being such a
Technology-intensive area will also be developed.
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We’re sure it all sounds good and satisfactory so far, but there are a
few points to consider. First, scientific advances may never be absorbed
efficiently into management practices, unless these techniques see
higher levels of refinement.
Second, the aptitude to manage and function on the mental plane
may well be a superior one. But translating this to Management
effectiveness and competency -is a critical area that needs to be worked
on and enhanced. To work with advanced mental techniques we need
checks and balances to actively guide these practices.
Let’s say an advanced work group has managed itself mentally for a
few years. But can they take in new ideas and new people efficiently?
Does the group respond actively to abnormal situations, applying formal
methods and specified communication when required? Have mental
techniques led to superior skills as expected or- just created a perpetually
insular clique?
Specialized solutions are required. Management Techniques must be
developed to work on the mental plane- techniques that are dynamic, can
deal with the psychological intricacies of mentally driven environments,
and are not just experiential, but can detect problems and make required
changes at that level.
Recognizing the need of the hour, there are two methods suggested
in this book - optimal influence selection© and objective decision review
(ODR) © (next chapter).
These methods are meant to respond to some problematic side-
effects in mental management that may emerge in dysfunctional modes-
e.g. mindset and bias problems.
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BUILDING CAPABILITIES AT WORK

We list below the capabilities that work environments practicing mental
techniques should have, and be prepared to exercise in response to
situations. Only then can a work group and its Management claim to have
truly arrived!
 Logically explain and validate the thought processes for decision

making, and other management functions.
 Apply formal, objective methods and active management
 Have methods to detect and correct dysfunctional modes
 Switch between states efficiently
But we do not recommend making these techniques too structured,

rigid or constrained as their unique characteristics should be preserved
while building required capabilities. Level of capability should achieve
effective functioning while being able to minimize the dysfunctional
effects.
MENTAL PROGRAMMING
Mental Programming is a related field- widely written about by experts,
and so is Neuro Linguistic Programming (NLP). In general, there is greater
awareness of the immense benefits of mind-focused techniques, a
progressive trend.
Even traditional practices like Meditation acquire an added
dimension when viewed in this light! Healing techniques from around
the world- including Breath control exercises that strengthen the mind
with proper guidance- can help the individual cope with Influence effects
and maintain high performance levels.
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SUMMARY
Powerful and all pervasive as Influence effects are in the organization, it
was observed that – with positive effects achieving management
objectives as expected, there can be negative effects that lead to
dysfunctional conditions.
As a first step we observe that trying to remove Influence effects
entirely, is an unrealistic goal. Organizational influences drive the work
and work dynamics; and Influence techniques of varying complexity have
become a part of organization culture.
But counterproductive influences can also take many forms. That
makes it necessary for the management to contain and minimize the
adverse effects. As part of the solution, we noted that there should be
valid bases and legitimate reasons for exerting Influence.
Advanced mental techniques in management present an exciting
opportunity to be met with advanced solutions. Some practical guidelines
to managing influences as discussed in this chapter-
 The Negative effects of Influence in business and work environments
should be controlled from higher levels. Therefore it requires top-down
initiatives in addition to micro-level management.
 Setting up formal standards and specifications where required, can
reduce unnecessary influences.
 Improvement can be achieved through optimized techniques -e.g.

objective decision making and situation analysis- to discern and
overcome imbalances caused by Influence effects.
 With Optimal Influence Selection©, decisions are made in a state of
“heightened awareness” where influences are not allowed to control
entirely; such decisions are fact-based and rational. The idea is to not
be swayed by negative and counterproductive influences.
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OBJECTIVE DECISION MODELS

Decision Models offer many benefits in the area of Human Resources and
People Management to support Management decision-making. Here the
focus is on Objective Decision Models to improve people management
decisions in work places.
A Decision Review Model (ODR) is suggested as suitable for certain

decision making scenarios; and in the next chapter we discuss a Decision
Making Process. Initial sections in this chapter include topics published
online by the author in 2007 and 2011.
EXISTING SITUATION
Managing work environments is a lot more complex these days—there is
more movement and fluctuation in work groups; changes at all levels
ranging from the team to organizational restructuring. Yet the methods
that go into managing people remain subjective and undefined to a great
extent. (2007)
It is relatively easier to measure the efficiency of business/ technology
decisions, since the results are quantifiable. It is possible to track in detail
how and why the Manager logically decided on an IT strategy; and it is
statistically possible to see where the strategy failed to deliver ROI.
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In contrast, aspects underlying people management decisions remain

largely unspecified. Much of it is conducted at a purely psychological
level, making it a challenge to calibrate and measure its effectiveness.
To overcome this gap, Management Decision Systems must keep pace,
and reflect the increasing complexities in workplace dynamics (2007). It
should be possible to set up more advanced methods that Managers can
follow to evaluate people management decisions accurately; and to allow
balanced, active and optimized decisions.
LIMITATIONS OF CURRENT ENVIRONMENTS

The following situations refer to instances where- first, decisions are
subject to many intangible or subjective factors and cannot be verified;
and second, where decisions are not being made or decision making is
too slow.
Influence and Psychological factors

While a few areas such as Performance Evaluation and Skills Assessment
are structured and support analytical decision making, psychological and
intuitive factors still play a large part in people related decisions.
Lack of specification underlying people-related decisions makes this a
notoriously difficult area to handle. It is often a nebulous area between
where quantitative reasoning ends and psychological or intuitive
elements take over.
Work environments today have elaborate IT systems, frameworks, and
procedures set up to manage the workforce. But in practice, the decision
making process regarding people is affected by any number of
unspecified and intangible factors.
It is not just established rules, procedures and corporate policy at work.
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But also multiple levels of organizational Influences; group dynamics;

the Decision maker’s mindset; personality and subjective considerations;
judgment and intuition. As a result none of these decisions can be
examined in sufficient detail.
Due to the lack of specification of decision criteria and realistic Decision
Models there remains a high level of ambiguity; which makes it difficult
to verify the thought process and implementation of best practices
expected in these decisions.
The Manager should be able to specify- How did I make this decision–
What were the criteria? Is it a scientifically sound decision? Or was it
blindly driven by environmental influences, personality and group
dynamics, perhaps intuition? Or maybe it was nothing more than “Office
politics?”
In a completely dysfunctional scenario, it’s anybody’s guess! The
decision maker gets influenced by external factors not relevant to a
situation, without realizing it. Inability to understand how he or she has
arrived at a decision is indeed an alarming situation!
The decision maker should be aware of exactly what factors have
shaped a decision. Being able to verify the ‘people decision’ based on
objective criteria is a firm step toward introducing quality and
effectiveness.
Another concern- people management decisions often have political
connotations, with a perceived risk in some decision outcomes. When
this becomes the dominant characteristic- it is political factors that shape
decisions more than legitimate factors such as performance and other
objective criteria. As previously discussed in Influences, decision making
should be optimized to check the counterproductive effects of influence.
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Active vs. Passive Styles of Decision Making

Decision-Making styles have been defined in management as part of
studies in Leadership behavior e.g. Autocratic, Consultative, Group. We
define below- a separate classification for decision making, based on how
the decision maker responds to problems or situations.
Active Decision styles involve effective and efficient decision making
in timely response to situational requirements; and application of
optimized decision techniques.
Consider a different scenario where Decision making has taken a
passive backseat- no active decisions are being made. In a self-driven
work group, the task of making a decision actually falls on the group, to
be based on collective decisions or by proxy team leads. Work teams
facing conflict situations are allowed to “resolve themselves”.
Passive Decision styles may seem to work on the face of it, especially
for advanced self-managing work groups. But by having relinquished
control to the self-resolving powers of the group, the Manager may let
this pattern take over as a habit; and stop making decisions even when
required.
This is where dysfunctional scenarios emerge.
Instead of the Manager driving the group, it is group dynamics that
drive a management decision (or lack of it). This shows how “groupthink”
in one’s work group can drive it up or down. And if the Management will
not intervene with active decisions, it becomes the dominant influence
that drives decision making, instead of the other way round.
Decisions and actions become entirely “reactive” even when it is
“active” decisions that need to be made. It only leads to greater inertia,
and propagates sluggish decision-making.
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Decisions about people are not actively made, but follow implicitly in
the wake of “like” or “dislike” dynamics around them. Performance and
merit-based factors are gradually pushed back.
CHALLENGES IN MANAGEMENT DECISION MODELING

As previously argued, people management decision making suffers from
being too subjective and inaccurate on many counts.
In contrast, optimized decision-making processes and well-defined
methods can significantly improve the management of work
environments, translating to a huge jump in corporate workplace
productivity. Familiar problems like high attrition, sluggish decision-
making and inertia across the organization can be reduced.
Similar to the subjective decision and passive decision scenarios
described earlier, we may encounter dysfunctional situations in the
workplace that can be rectified through Analytical decision making.
Situation assessment is one aspect of it, while Decision Models are an
important element of decision making in business.
Decision Models are a logical representation of how a decision is
made. They show the logical sequence of thought/action; what are the
factors are to be considered in the decision and how decision outcomes
are determined.
And the following problems are typically encountered while
formulating any type of Decision Model-
Uncertainty, different types of biases, contradictions and ambiguities,
lack of complete knowledge regarding decision variables and their
relationships, elements with non-deterministic behavior, unforeseen
events and inaccurate assumptions. It is also a known fact that Decisions
involve the element of heuristics.
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In this regard People Management problems pose a tough challenge

for applying Decision Models to enable advanced decision making.
Problems like under-specification of decision variables will play a
significant role when devising any algorithm to model such Decisions.
Reasons for this can be summarized as:-
 People related decisions involve subjective factors, and decision
components cannot be specified easily.
 There are unspecified environmental and organizational
influences driving these decisions.
 In certain cases decisions regarding people are made quickly and
“intuitively”; for example, when handling rapidly changing team
structures and transitions.
 Under time and resource constraints only part of a given decision
process/method will apply objective and efficient methods. In
sharp contrast, other phases or parts of the decision making
remain ad hoc, unstructured and ambiguous.
 There is less demand for quantitative and accurate decision
models in People Management; unlike Financial Management,
Capital markets, IT/Software and certain other fields where
decisions are expected to be modeled quantitatively.
DECISION MAKING MODELS AND CONCEPTS

Based on selected research and reference material, this section has listed
some prominent ideas and concepts that stand out in a highly specialized
discipline. They have stood the test of time as milestones and signposts in
academic thought; and also worked in their practical application to real
problems in business and other fields.
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Concepts listed below have been included for their relevance to the
current topic and only provide a snapshot of prominent methods from a
historical viewpoint. This is not intended to be an all-encompassing study.
OVERVIEW OF EXISTING DECISION MODELS

The requirement for Decision Making Models in specialized areas of
Management has long been recognized. Given a particular problem, one
would likely find a wide variety of Decision Models to choose from, to
support Managerial Decisions in that area.
There are Deterministic and Probabilistic Models, highly structured
and approximate models, quantitative and qualitative models. Of course,
there are still many areas in Management that would benefit from new
models and rigorous quantitative methods.
Based on the theory of formal decision methods, the final Decision
Model is arrived at based on the cycle of Formulation, Evaluation and
Appraisal.
Decision Analysis 2 is an advanced field that offers many methods,
visual and analytic decision support tools such as Decision Trees and
Influence Diagrams. These can formally represent decisions and address
important aspects of their application.
Robust Decision making (that has its origins in the Robust Design3
philosophy) takes uncertainty into account. As far as possible the
uncertainty is then controlled or eliminated from the final decision, in the
process of reaching the best possible choice.
An optimal decision is one that leads to the best outcome compared
to all decision alternatives.
2
Coined by R.A. Howard, 1964
3
Popularized by G. Taguchi
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In case of uncertainty in outcomes, the optimal decision maximizes

the expected utility.
Decision making under Uncertainty has been written about
extensively as a quantitative model. It involves taking informational
inputs, setting up alternative courses of action with associated
consequences; then choosing and implementing a selected course of
action. It can be represented as a Decision Tree.
In decision theory, the Normative or prescriptive analyses of
Management decisions involves the application of formal logic. Here
Axiomatic rules are prescribed for making the “best decision”. In contrast,
Descriptive theories describe how people actually make decisions in the
real world.
Step-wise descriptions of the Decision making process have been
proposed in many forms. The six-step Rational Decision Making Model
consists of a series of steps starting with Problem Definition, then
identifying the decision criteria, attaching weights to criteria, generating
possible alternatives and concluding with Computation of the Optimal
decision.
Bounded Rationality 4 and Intuitive Decision Making are regarded as
two of the most important ideas in decision making.
As part of research findings in Computers and Operations Research
there are many Mathematical models and techniques to represent
Objective Decision Making problems, including Multiple- Criteria Decision
Analysis (MCDA). Multi-Criteria Decision Making (MCDM) is a highly
developed discipline with many methods, that classifies problems as
Multi-criteria evaluation and Multi-criteria design problems.
4
H. Simon (1957)
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Models and Frameworks for Evidence Based Reasoning have been

proposed over the years, especially in Healthcare and Education.
Deconstructing decisions is another approach adopted in the Legal field.
Weighted Decision Criteria matrices exist as a popular technique for
structured decision making. Based on these elements a final score is
calculated for each decision alternative. Various models have also
emerged for building or validating decision criteria in specific domains.
Finally, we find some remarkable insights where psychology has been
applied. An idea applicable to organizations in the context of decision
making is Historical Precedents, set up when past decisions influence
current decision making. The role of various Biases in decision making has
been recognized.
OBJECTIVE DECISION MODELS

Some key solutions—Implementing new decision models to assist
management in objective decision-making and a more quantitative
evaluation of decisions. If developed to equal the advancement in other
areas, workplace problems caused by ambiguous decision making can be
drastically reduced.
Decision Models can enable significant improvements in critical areas
of people management. Given the event and environmental information,
Objective Decision Models serve as an objective aid to the decision
process.
Objective Decision-enabled People Managers would practice
“evolved” and balanced management. Their skills are “lean” and
constantly alert to the work group’s requirements, with the freedom to
discard subjective and irrelevant influences. Decisions and results are
based on scientific and measurable techniques and it is possible to
measure the efficiency and quality of people management decisions.
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The following Models in the area of Decision Making are proposed:-

a) Objective Decision Review Model ©
b) Active Decision Process Model©
The above models were proposed by the author in a White Paper -

Objective Decision Models for People Management, published online in
December 2011 (still online, but not viewable since January 2012).
ODR SOLUTION APPROACH ©

 Gain focus on the Decision Maker’s Thought Process and mindset
 Apply techniques to analyze and evaluate the Decision.
IMPLEMENTATION
The Objective Decision Review (ODR) Model may seem bizarre to the
reader and different from mainstream decision techniques that one reads
about. We should clarify that Objective Decision Review is essentially a
psychology-based model aimed at bringing higher level of clarity,
tangibility and transparency in people related decisions and actions
through a step-wise analytical review.
The ODR can be easily incorporated into any structured (and no
doubt, more familiar) Decision Making processes as demonstrated in the
Active Decision Process© in the following chapter. The model can also be
applied for Activity and Behavior Analysis.
It consists of two steps- a) Decision Criteria validation and b) Decision
outcome validation that may be done in sequence or in parallel.
The Active Decision Process is a process model meant for action-
oriented decision making. As we see later it also serves as a framework to
include other management tools and techniques including objective
assessments.
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OBJECTIVE DECISION REVIEW (ODR) ©

The Objective Decision Review (ODR) suggests a method and model for
the decision maker to review and verify the optimality of a people
management decision.
It can be regarded as a structured thought process that provides a
method to refine and improve each decision or activity based on
scientific principles, logical and analytical reasoning; and management
best practices.
The term Objective as applied here refers to the method as being fair,
clinical, unbiased and non-subjective. (It is not concerned with the
decision type as single or multi objective).
CASE STUDY II - DYNAMIC TEAM FORMATION

In a company the Project Manager has to quickly select employee
candidates to create a high profile Project Team for the Project
Management Office (PMO).
Expected Selection Criteria
- Initial Selection criteria are to be based only on Performance and
Skills; thereafter the Manager has to finalize candidates he
considers the best fits for the project.
The Management must select an optimal mix from a large employee
pool in the department. Resumes in the employee database have been
scanned. Employees were then screened through interviews and group
discussions. Data includes results from Skills assessments and past
Performance Appraisals.
These results are taken into account for the objective evaluation
phase that concludes with a Short list of ten (10) passed candidates.
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Given the number of employees available in each skill area, several

choices are possible even after short listing. Since the objective testing
phase has completed, short listed candidates need to be finalized within
a short time span- the final list cannot have more than three (3)
candidates. The assumption is that a quick decision can be made at this
point, possibly Intuitive. Specific criteria have not been provided to make
the final selection.
Actual Selection Criteria
- As per stated objectives, scores from the objective evaluation were
considered to form the initial ranked shortlist. The Manager then
decides the final selection based on the following criteria-
(i) The most popular and visible candidates are selected first.
(ii) Employees belonging to well integrated but informal peer groups
are selected in preference to those who have had problems fitting
into peer groups.
(iii) The company has adopted an aggressive Women Empowerment
program. The percentage of women selected is higher.
(iv) The company has adopted an aggressive Equal Opportunity and Non
Discrimination program. The Manager is conditioned to follow it
strictly; and therefore believes he has shown no preference to any
particular group or classification.
(v) By personality the Manager is traditional, conservative and dislikes
people he perceives as being somewhat disruptive or insubordinate.
He discards a few candidates who have displayed such behavior in
the past. Though it was within acceptable limits he still views it as a
risk.
TABLE 8 RANKED CANDIDATES
candidate a b c d e f g h I j
Objective 1 2 3 4 5 6 7 8 9 10
Rank
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OBSERVATIONS
The above can be categorized as a part Objective and part Intuitive
decision process. The decision was made under time constraints with
only a part of it open to objective analysis. It also has subjective
components based on the decision maker’s perception and opinions that
do appear in the final decision making phase.
Other determining factors that may have played a part are not
considered because they are intangible and could not be specified.
APPLICATION OF OBJECTIVE DECISION REVIEW TO E XAMPLE

If we now model the decision based on the different factors that have
shaped it (in this case, the decision by the Manager to select or not select
a candidate) the actual selection criteria that emerge- are as shown in the
Objective Decision Review Model (Figure 10) in this section.
As the decision was made quickly and this phase of decision making
was not based on structured methods, the Manager now wants to
analyze and “error check” his decision- as a step toward quality control.
Based on a process of Self-Assessment or- in other cases, Guided
Decision Making, the Manager in charge of the Dynamic Team Creation
exercise will now subject each decision that he made to a detailed
review. Starting with the question “Why did I finalize this Candidate?” the
decision review (ODR) session is held.
This is done after the decision is made but preferably, before it is
officially implemented. Refer Figure: Steps in Objective Decision Review that
follows.
DECISION CRITERIA VALIDATION

The Review effort should first specify the Decision objective(s) that all the
remaining steps need to be aligned with.
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Next, the Review should take a comprehensive view of all decision

variables and components as shown in the Objective Decision Review
model.
We need to understand all factors that drive the actual selection
criteria, and objectively weigh their importance which is the purpose of
ODR. It models the decision based on the different factors that have
shaped it (in this case, the decision by the Manager to select or not select
a candidate).
R ATIONALE
 It was previously assumed that in order to decide candidate selection,
the Manager can base his decision solely on the Performance
Appraisal, Skills Assessment and other Test results.
 However, as the model suggests- in the real world, people related
decisions during unstructured phases are not based simply on specified
data and rules.
 The actual decision will include unspecified factors, a few of which can
be considered best practices valid and relevant to the decision; while
others are irrelevant or subjective and should be excluded or
minimized.
 In work environments it is not possible to completely specify or control
all factors that influence behavior, decisions and actions. Yet in order
to improve the decision it is necessary to have a clear incisive
understanding of these components, especially the dominant factors.
Even if the objective assessment phase of decision making was highly

accurate and reliable the effects of environmental factors, influences and
the decision maker’s mindset cannot be ruled out in other phases that
are unstructured or informal. According to the real world scenario
described in this model, a degree of non-factuality and subjectivity would
appear in many cases.
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Figure 9 Steps in Objective Decision Review (ODR)
Make Decision Analytical Review

Show result as
of Decision
{Criteria-Weight }
Attach Factuality,
6 Finalize Decision Relevance to
criteria
5 b)
Yes
Adjust {
Criteria- 5 Examine Result for
Optimal? Decision
Weight } Optimality
- How did I make this decision?

- What Criteria have I used?
- What was the Motive for it?
- How much Importance have I given
this Criterion?
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Specified
Factual Relevant
Motive Criteria Weight 0<= x <= 1 0<= y <= 1
Decision Performance Appraisal 1 1

40
Rules Skills Assessment
Womens Empowerment 10 1 1
Policy
Equal Opportunity
Influence Popularity 1 0
0
#1 Visibility
Influence Peer Acceptance

Team Integration 15 1 0.5
#2 Group Dynamics
Influence Organizational 1 0.8
13
#3 Influences
1 1
Analytical Analytical Reasoning 15
Unspecified
Subjective Opinions 1 0.2

Subjective 5
e.g. Potentially Disruptive
Intuition Hunches 2 0.1 0.1
Figure 10 Objective Decision Review Model
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Therefore any effort to improve decisions has to consider on the one

hand, improvements in structured decision support tools (in this case, the
performance appraisal and skills assessment) and on the other hand, get
a more detailed objective view of dominant factors that go toward
making the decision.
Design of structured components- i.e. skill tests and performance
appraisals- is not within scope of this study which focuses on the final
phase of decision review. Where there are unstructured decisions
appearing within the structured parts- e.g. during Performance Appraisal,
the ODR can be applied there as well.
One expects that with improving design, accuracy and reliability of
objective decision aids, the room for subjectivity will reduce, though the
perfect decision state is difficult to realize in practice.
Criteria, Weights and Motives
The Model in Objective Decision Review Model represents the deconstructed

Decision having multiple layers composed of a motive and associated
decision criteria. The weight or importance given by the decision maker is
attached to each motive-criterion.
Decision Criteria shown in the model pertain to a typical selection
decision. There can be changes in Criteria with the situation and decision
type. Motives are considered to be formed by rules and procedures,
policy, influences, subjective considerations, analytical observations and
intuition.
The same generic motives are expected to appear in most people
management scenarios. Based on the depth of analysis being done, a
decision may involve only a few dominant motives e.g. rules + influences
+ subjective factors or influences + intuition. This is considered sufficient
for our purposes.
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To summarize, the Decision is based on various weighted criteria, each

associated to a motive.
Following the Decision Review, the next step involves further
examination of each Motive-Criteria-Weight based on certain attributes
to determine if an optimized decision can be made. These attributes help
us to assess the importance of a set of criteria.
The attributes are:-
a) Factuality to check if the criteria are supported by factual data
i.e. evidence in written or verbal form,
b) Relevance to check if the criteria are relevant to the decision
being made.
Criteria and Motives, Weights and the Factuality and Relevance
ratings that are assigned, tell us about the decision problem and the
situation. A Hiring decision would therefore be different in these
respects- i.e. criteria, and importance given to the criteria- from a
decision to transfer a candidate. And these assignments would be
common for all candidates.
DECISION OUTCOME VALIDATION

Once the criteria and weights are finalized, a score has to be calculated
for each candidate based on how they rated against the valid criteria.
The decision outcome validation may involve a re-calculation of results
due to changes in criteria, their re-prioritization and/or changes in the
validity of information used to decide the outcomes.
MAIN STEPS
At this point, we pause to summarize the Steps involved in the Objective
Decision Review based on a Use Case.
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TABLE 9 USE CASE FOR OBJECTIVE DECISION REVIEW
Goal(s) To verify the optimality of a Decision through structured

Review based on the ODR model
Pre-condition  Decision maker has made a decision.
 Decision objective(s) and related problem(s) have
been formulated e.g. Dynamic Team Formation- To
finalize three candidates from a shortlist for our
Project Management Office
 Decision Maker
Actor(s)
 Resource(s) to guide the decision maker through the
review (optional)
Organization; process related to which decision is
System
being made i.e. Selection and Hiring for the PMO
 Information and structured assessment tools that
formed parts of the objective decision making, if any
Rules and are available e.g. Performance Appraisal, Skills
Dependencies Assessment.
 For structured assessment we applied a separate
Objective Evaluation Component based on Rules.
 We assume the initial Objective Evaluation phase to

shortlist candidates was performed correctly.
 This decision process involved factual inputs and
structured assessments for the objective evaluation;
Assumption but other parts of it were open to ambiguous
unspecified factors and therefore, subject to the
decision maker’s mindset and thought process.
 Other assumptions and constraints that apply to ODR
are listed in the following section.
 Decision must be reviewed quickly. If the preliminary
Constraints decision took 30 minutes. The ODR process should
take no more than 5- 15 minutes.
 Management received complaints that the selection
Trigger(s)
contradicted results from Performance Appraisals.
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Goal(s) To verify the optimality of a Decision through structured

Review based on the ODR model
E.g. A candidate with good skills was not selected and a
complaint was submitted. Following this, Management
has established guidelines to review these decisions.
Steps Listed below- Steps in Objective Decision Review (ODR)
Analytical Review of decision- starts by reviewing the problem
and decision objective(s). Then, asking the question “Why did
1
I make this decision?” back track to examine the unspecified
Criteria that went into it.
List the Criteria and analyze to understand the importance

2
given to them.
3 Attach Factuality and Relevance to Criteria.
Examine for decision optimality- Can these criteria and

4
weights be justified based on facts and relevance?
If initial thinking was sub-optimal, correct the criteria and

5.a
weights where required.
If initial thinking is verified as optimal, proceed with the
5.b
decision.
6 Finalize the Decision
7 Calculate the final outcomes- i.e. objective scores.
Related A thought process is tracked in the attached example, based

references on Case Example II- Dynamic Team Formation
Appendix-
Case Example II - ODR Score Calculation

Case Example II - ODR Review Session
Case Example II – ODR Post Review Results
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ASSUMPTIONS & CONSTRAINTS

 This model does not exactly map the way our neurons work to
process information (though that may be a scientific reality!). That
makes it a conceptual model rather than a physical one.
 Nor does it completely capture all aspects of the psychology- See
the next ODR Thought Process which presents a simplified view.
 As discussed, it emphasizes awareness of unspecified decision
criteria. Accordingly, Review discussions should focus on Criteria
and the importance of each.
 In business decisions and workplace environments, motives are
usually about understanding various influences that affect
decisions. They also involve adherence to ethics codes and best
practices established through Organizational policies and high
level standards. Normally, the Management would have
awareness of these factors.
 Certain situations may involve in-depth analysis of underlying
motives. For example in case of contradictions, with fact-based
observations contradicting other criteria.
 We assume the decision maker is capable of objectively self-
assessing his/her own decision as required in this method. If not,
s/he should be guided in the process by an expert.
 It is not possible to specify everything in the work environment
i.e. all factors that drive behavior, actions and decisions cannot be
verified and specified. But the idea is to understand them enough,
to achieve optimized error-free standards in response to
situations.
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ODR THOUGHT PROCESS

 The introspective thought process involved in ODR can now be
viewed more tangibly. It is considered to involve backward
chaining in parts with elements of logical inference and
deduction.
 To model it (shown below), the decision is represented as a
hypothesis. Then we follow an inferential reasoning process to
draw conclusions. The conclusions should bring us back to the
same place i.e. the hypothesis. Or in a fuzzy way, roughly the
same place, with tolerance specified.
 When making the decision or reviewing it, actual processing of
facts, events and data will involve a more complex interplay.
There will be pattern matching, types of mental mapping and
associations, with many of these elements recognized in
psychology. A simplified model is shown below.
FIGURE 11 ODR THOUGHT PROCESS
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 Inferences can be fact-based, involving valid premises. Parts of it

could also be wrong- involving fallacies, bias, over-generalization
and misconceptions. These are the parts we want to detect and
minimize, while validating the parts that work.
 The reasoning process involved- is not just about a person freely
thinking his/her own thoughts! Decisions in business
environments are guided by organizational influences and
environmental factors, and so are decision reviews.
 As discussed earlier, it becomes a problem when the above
factors dominate to the point of ignoring contradictions and best
practices. So we do expect that if decision reviews are being held,
it should be done in a state of professionalism, fair play and
heightened awareness.
 “I made a firm decision, and now it would hurt my reputation to
find it was wrong”. Yes, Confirmation bias may interfere as
decision makers will tend to justify their own decisions. But as ODR
is supposed to be held before the decision is official, publicized or
finalized, it pre-empts any embarrassment. In fact, it will help the
decision maker build a reputation for making reliable and well-
considered decisions.
 The model applies Weights mainly for relative criteria ranking.
 In actuality, brain impulses that process these unspecified criteria,
will involve more complex factors - in addition to logic and
analytical reasoning. These considerations may be relevant when
formulating a psychological model.
 The current model is considered accurate enough for practical
application.
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SETTING FACTUALITY AND RELEVANCE FOR ODR DECISION CRITERIA

Refer Objective Decision Review Model
This section explains how x and y ratings are determined for Factuality and
Relevance attributes in the Decision Review Model.
 Here are the common rules- The decision will consider only factual
and relevant criteria i.e. x >= 0 and y >= 0.
 Weight i.e. importance of a criterion should be proportionate to
(factuality*relevance).
 This version of the model allows fractional x and y values to be
assigned.
(i) Criteria based on Decision Rules (in this case, the Selection rules that
form the Objective Evaluation component) are both factual and relevant
to the decision. (x = 1, y = 1)
(ii) Influences may or may not be relevant to a decision. And the influence
may or may not have a factual basis.
a. Popularity and visibility are personality traits. In certain cases, can
be considered to assess leadership provided the job role requires it.
In this case it is not considered relevant.
b. Moreover, Popularity/ visibility are governed by irrelevant forces
such as cultural or gender based preferences, which is misleading.
For example, people from dominant cultures or influential peer
groups always get the popularity vote. Therefore based on a. and b.
it reduces to- not relevant (y = 0).
c. Popularity/ visibility is considered factual. Usually, it does not
appear as a tangible metric that is explicitly written or spoken; but
psychological and behavioral models can be applied to distinguish
high, medium and low popularity. (x = 1)
(iii) Influence #2 point to work-environmental influences generated by peer
pressure, competitive forces and other group/team dynamics.
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Similar to (ii), peer acceptance and team integration indicate aspects of
team/group behavior.
a. Relevant- Team integration skills of the candidate are relevant for
this situation- as the project role requires it.
b. Importance of Team skills should be weighed carefully, depending
on role requirements.
c. As peer acceptance may be driven by culture bias or similar
imbalances existing in the work environment it loses its
effectiveness as dominant selection criteria; hence considered
partly relevant. (y = 0.5)
d. For Team skills unlike the previous traits, it is easier to judge in
tangible forms, possibly expressed as written feedback from co-
workers or superiors. If such data exists in this particular case, it can
be regarded as factual. (x = 1)
(iv) The company has established various stated policies including Women’s
Empowerment, Equal Opportunity and Non- Discrimination. Since these
motives are supposed to be officially integrated into decision making
and can be specified at any point, they are both factual (x = 1) and
relevant (y = 1). The weight or importance attached to each policy or
standard can be examined further if required.
(v) Motives ruled by subjective considerations e.g. potentially disruptive-

indicate the decision maker’s personality, ego, emotions and mindset.
a. They include “like” and “dislike” propensities (“I selected this
candidate because I like him”) also prejudices and stigmas. Ideally,
the decision maker is expected to exclude them from objective
decision making. In practice, the decision maker should be aware of
it and filter it out of the decision. (y = 0)
b. Perception is also classified as subjective. The Manager’s perception
of individual performance can be influenced by his own personality.
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c. Are subjective opinions based on fact? They could be to some
extent. (x = 1, y = 0.2)
(vi) Influence #3 refers to internal organizational influences that the
Manager is expected to follow. They are mostly factual (in this case, the
company has a highly developed knowledge base describing its
organization culture, governance, structure and processes).
Since these are high level influences, direct relevance to the current
mid-level decision is limited. (x = 1, y = 0.8)
(vii) The decision maker may choose to add his/her own analytical
reasoning. This can be regarded a valid step. In fact, it should be
encouraged in decision making as it would add value in situations that
have insufficient information. An example thought process below-
a. “Appraisal and Skills assessment for this candidate does not reveal
this trait. But I have observed that s/he has outstanding ability to
handle stress, based on which s/he will add value to this project
therefore I select him/her” (x = 1, y = 1)
b. The role of Intuition cannot be ruled out and in this model it
denotes the “unknown element” that is beyond facts or reasoning.
Intuition is accommodated with limited relevance, though we know
it is not directly based on facts. (x = 0.1, y = o.1).
Decision Motives
Rules Policy Influence
Subjective Analytical Intuition
15% 2%
5% 40%
28%
10%
FIGURE 12 DECISION MOTIVES

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FINAL STEPS IN THE ODR DECISION REVIEW

 Factuality and Relevance are added for each Motive- Criteria
based on the review.
 Weight associated to criteria should be proportionate. For
optimality, a higher weight is attached to highly factual and
relevant criteria; and less or no importance given to non-factual
and irrelevant criteria. Any major deviations from this should lead
the reviewer to re-think the concerned decision motive-criteria.
 The reviewer re-considers the importance of criteria and in case
of any change- re-ranks the candidates to compute the final score.
This represents the optimized decision outcome.
 Refer Case Example II - ODR Score Calculation for all calculations.
Candidates are re-ranked to determine the final outcome.
 As discussed, the idea and purpose of this model is to review
actual decision criteria, understand the importance given to
unspecified criteria and re-prioritize them if required, keeping
best practices in mind.
 For weights and outcome (score) calculations- Outside the
criteria-based analysis that the model is centered on, post-review
weights and score calculations can apply more advanced
mathematical models. Illustrated in Appendix is a Weighted Rank
and Ratings based calculation.
 Objective scores are those obtained from structured assessments-
i.e. performance appraisal and skills assessment. The given case
assumed that objective evaluation was already done in a separate
module preceding the unstructured phase of decision making.
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 In certain cases, the result of a decision review session may also

lead to a re-calculation of the objective scores e.g. -if the selection
rules were found to be incorrectly formulated.
Refer Objective Decision Factuality Relevance- It can be seen from the case
example that--
a) Popularity/Visibility influences were initially given high weights
though they are not factual and only partly relevant.
b) Subjective view had entered the picture though it had limited
relevance.
c) Peers and Team integration skills were given high importance
proportionate to factuality/relevance. However, in case the
specified rules (Performance Appraisal, etc.) have also considered
it (as a KPI) the same trait may assume excessive importance,
which should be avoided.
d) In cases where the same criteria dominate, we should examine if
the situation demands it? Or, if we balance this against new
criteria e.g. innovation potential of the candidates, can we achieve
more optimality in terms of a better performing project team?
e) In a situation having fewer decision rules and procedures, other
motives can start to dominate. So we have ego-driven or
influence-driven decisions. The latter may be observed in work
environments subject to many influences.
f) We see that the case example decision mapped below- is
dominated by decision rules, influences and policy. Subjective
criteria were initially considered important; but the Review
identified this as non-factual and irrelevant to the decision. The
decision is now objective and optimized.
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Weight Factuality*Relevance
40
15 13 15
10
1 1 0.8 5 1 2 0.01
0 0 0.5 0.2
FIGURE 13 OBJECTIVE DECISION FACTUALITY RELEVANCE
DETERMINING OPTIMALITY
How is Optimality decided in the Objective Decision Review?
We follow the mathematical definition for optimality, considering a

people management decision to be optimal if it maximizes the expected
utility or value. For example, the selected candidate should meet
expectations of work output.
The premise of the ODR model requires that decision making be
objective i.e. based on verifiable facts and logical reasoning; with criteria
that are valid and relevant to the problem. It should also be unbiased.
Organizational best practices, fair practices and standards should be
taken into account; and if these are not defined at the organization level,
then we refer the industry standards and ethical models. In general, one
can assume that People Management best practices are called into play .
The resulting state of the decision is therefore “Fair, objective and

optimized”- as our Methodology requires it to be.
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The following check points should be included to assess the decision:

 Has excessive weight/ importance been given to invalid,
irrelevant or subjective criteria?
 Is the decision being driven by influences that are mostly
irrelevant?
 Are there contradictions of any kind?
For example, Performance Appraisal has rated the candidate as
hard-working and efficient. But for some reason he keeps getting
rejected.
The ODR review indicated that the decision-maker, being
susceptible to work-environmental influences, had attached a
high importance to peer acceptance. And the candidate was
getting rejected due to low team integration. In this case,
influences contradict the decision rules i.e. factual data.
(i) Further analysis and examination should be undertaken to
resolve such conflicts.
 Are there imbalances of any kind?

(i) Historical precedents may lead to positive stereotypes. For
example, factual data and past performance of the candidate
has been positive for the past few years. This influences
decision makers to automatically “pass” him/her every time
without doing an objective assessment.
(ii) There can of course, be negative stereotypes and biases that
also need to be filtered out.
 In addition to the simple examples provided above, the high level

of complexity in people management situations can result in
many other types of contradictions and imbalance scenarios.
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PURPOSE AND BENEFITS OF OBJECTIVE DECISION REVIEW (ODR)

Having reached here, it should be clear that ODR requires a special
thought process in which some introspection and/or other think aloud
techniques are involved.
It enables the decision maker to—
 Understand all elements that have shaped the decision or action
including tacit and unspecified variables; thereby building a layer
of increased awareness in the decision making.
 Repeated review sessions enable the decision maker to gradually
train and condition the mind to making optimized decisions
regarding people, even under time constraints.
 Decisions in the work environment are no longer dominated by
subjective bias or unnecessary political influences.
 With the heightened clarity, awareness and control that self-
assessment provides, the decision maker is free of a compulsive
“follower” mentality. We are no longer compelled to make the
same “safe” decisions that others have made.
 Evaluating the optimality of a decision- can bring out
contradictions and anomalies in decision making where the facts
contradict subjective criteria, as discussed earlier. After detecting
such conflicts, it prompts the decision maker to re-decide, based
on best practices.
 Can be applied to accurately understand trends and patterns in
individual decision making styles or behavior. For example, are
these decisions dominated by subjective factors or analytical
reasoning?
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 Next time, what type of decision is this person likely to make, or

this type of situation likely to involve?
 Trends and patterns that emerge in individual or group decision
making style can be used to determine the probabilities of
different outcomes in Uncertainty models.
 Allows us to differentiate clearly between distinct criteria such as
Influence and Intuition; so that appropriate weights i.e.
importance can be assigned to each. Often, there is a fine line
between two criteria e.g. subjective views and influence. Further
study and analysis can clarify such points.
o A Psychology-derived rule that we suggest here- subjective
views are a function of the individual decision maker; whereas
Influences being a function of the organization culture and
internal or external environmental factors, are expected to
affect all decision makers in the environment.
ROLE OF BUSINESS AND WORK ETHICS

Most companies have set up policies and rules at various levels to deal
with Ethics. Specific implementation depends on the company type, size
and culture. At the organization level, this can manifest in the form of
Corporate Policies and Ethics Codes. At employee level, there are ethical
and compliance codes of conduct to follow.
Each department in the company may have set up its own Ethics
related regulations. Beyond the generally stated ground rules, an entity’s
adherence to these rules can be judged based on moral principles or
notions of right vs. wrong.
Similar to other corporate policies, one is expected to apply Ethics in
decisions and it can affect or influence the decision directly and
indirectly.
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The view forwarded here is that once formally established, Ethical

codes would most likely appear as a valid and relevant organizational
influence. They can also form part of decision rules and procedures
and/or be considered a distinct policy motive. The decision maker may
include Ethics-based reasoning as part of Analytical reasoning.
ROLE OF INFLUENCES
In the current decision model, Influence is considered distinct from
standard rules and regulations, policy and subjective views.
To clarify, the decision model focuses on influence as an intangible,
unspecified driver of thoughts and behavior. Tangible driving forces such
as rules and policies that exist as specified data are represented
separately. Subjective concerns and intuition are also treated separately.
Influence driven effects other than stated policy, rules or subjective views
that can affect decisions are shown as Influence motives.

Q1. I’m a really good Manager, and I am not convinced that people
decisions are so subjective or ambiguous. Besides you have not provided
any research data.
We agree there are “good” Managers with advanced management
capabilities, but hold the view that they tend to face too many
barriers due to the average standards around them. We have not
conducted any specific surveys to generate statistical data for this
book.
We urge you to please consider the following questions-
- Does your organization support you in taking “risky” decisions
with regard to people?
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How many decisions do you see being made, say in a week or month-
that are not directly part of any structured or elaborate procedures
such as Performance Appraisal; but are still required, and have some
significance in determining the change/reward/growth prospects of
people, in the near to long term?
- Of these decisions, how many would you say were driven
entirely or partly by influence based factors?
- How many of these decisions gave you a sense of “political
correctness” and therefore, seemed correct? Are there
situations where it seems more appropriate to not make
decisions at all?
- Do you have tools and methods to examine these decisions
(or, situations that demand decisions) - on the work floor,
quickly and without too much filework?
- How many instances can you recall, of people simply
following each other’s behavior in terms of decision making?
Q2. The ODR Reviews where you adjust the criteria- that seems over-
controlling.
Well, the premise of our arguments was that a certain level of quality
control is required in decision making.
When faced with unstructured ad-hoc situations, ODR introduces a
more principled and objective approach. Criteria are adjusted to suit
the problem, for all candidates.
But it is not designed to be over-controlling on the decision maker.
As the example shows, the decision maker is free to modify and add
valid, relevant criteria to gain more accuracy. It should further be
noted that -- the outcomes are not being controlled.
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The point is- people decisions appear as a significant micro-level

factor that permeate all business and work practices. The aim of this
exercise is to encourage positive development in these areas.
The reader must understand that people situations don’t provide the
decision maker much guidance on what criteria to apply; and yet
there are so many factors that impinge on real-time decision making.
So either you have a seasoned Manager who starts out with a highly
aware, objective and balanced approach (in which case, a 5-minute
DIY ODR should suffice); or in more typical cases, has to train his/her
approach to get to that state- and ODR can enable that.
Q3. This model sounds the same as Evidence Based Reasoning (EBR)?
The ODR model is for validating criteria and outcomes - specified and
unspecified, that drive work/business decisions and actions. It is
expected to add value in unstructured or informal phases.
ODR itself is a formal method incorporating a thought process/logic
module to process factual and relevant information. In principle and
practice- it is not limited to an evidence-based thought process. For
instance, it also argues the necessity to minimize or filter out “noise”,
i.e. the influence of some counter-productive factors.
Argument patterns are similar in some aspects between EBR and the
ODR thought process. However, the current model has been devised
separately and “ground up” to answer management requirements.
The author, who wrote a Business Plan in the year 2000 to popularize
Artificial Intelligence (AI) working with a “diagnostic thought
process”, Knowledge base and Rules Engine for troubleshooting in
work/business environments- is aware of EBR, and will consider
inclusion of such EBR-based computational models in ODR execution.
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Some noteworthy points on ODR-

 For criteria validation, we have considered factuality and relevance
foremost for evaluating the given information (in this case, the
decision criteria).
 For outcome validation which may consider information from
different sources for calculating outcomes, more elaborate
frameworks for checking this data in terms of factuality and other
parameters can be applied as part of ODR.
SUMMARY
The Objective Decision Review (ODR) © Model should demonstrate how
elements of Management Psychology and Organizational Behavior can be
integrated with Mathematical modeling techniques to create more
realistic models in the People Management domain.
In addition, constructing workable models would allow relevant logic
from new fields to reinforce these methods, and answer future
requirements in Managerial Decision making.
The Problem
 People management decisions are not examined in sufficient detail. In a
dysfunctional situation, the Manager does not even understand how he
or she has reached a decision; or what factors are driving it!
The ODR Solution©
 Our quest for better decision-making led us to the Objective Decision
Review (ODR) - the Manager in this case, has the capability to
“selectively” consider only relevant and legitimate criteria/other factors.
 As part of the method developed to make active and balanced
decisions, s/he has conditioned herself to be aware of all factors,
understood their relevance and how to prioritize them, and has the
disciplined awareness to follow an influence or discard it.
 The ODR model can also be applied for Activity and Behavior Analysis, to
better understand Behavior patterns.
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9
ACTIVE DECISION PROCESS
A step-wise Active Decision Making Process Model is proposed for
application in areas of HR/ People Management.
Previous sections studied the objective vs. subjective aspects of decision
making; situation assessment and other techniques at a granular level.
We now bring them together, to work as parts of a decision making
process- this is meant to provide a framework in which other methods
and tools should fit in as well- ranging from regular to advanced
algorithms.
This process can be viewed in two ways- first, a conventional approach
that involves a regular decision process that the reader may have read
and applied in various forms; second, it is an enhanced “action-oriented”
version- suggested particularly in scenarios that can be visualized as
starting from an “Action”.
The proposed Action is thrown out like a projectile, its final mark to be
determined by Impeding and Supporting factors; and other criteria set up
in the process framework.
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OVERVIEW
In Active Decision Trajectory, we see the process starts with the Action (or
Objective). Remaining steps in the decision process establish the problem
boundaries, constraints and action incentives, essentially leading to the
point where the pros and cons of taking this action can be thrashed out
with maximum accuracy.
Score
Take
Solutions Action
and
Situation Decision
Assessment Analysis
Action
Considered
Trigger
FIGURE 14 ACTIVE DECISION TRAJECTORY
STEPWISE DESCRIPTION
ACTION/ OBJECTIVE FORMULATION

Indicates the Objective or, a formed Action for which the decision is to be
made. The Objective in conventional cases usually refers to Decision
objective. In the current Action model it is the action that we expect to
take, based on a final decision.
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TRIGGER
We take note of the Trigger- an event that caused this process to initiate,
whether based on formal procedures or spontaneously.
SITUATION ANALYSIS AND A SSESSMENT

The Situation Assessment involves formulating a Problem statement,
preparatory data gathering and situation analysis to understand the
supporting and impeding factors for action.
Decision makers would have to answer these questions- Why do we
need to take this Action? What Problem(s) or Issue(s) is this Action going
to solve? Can we first understand the entire situation clearly? What do we
stand to gain by this action, and what are we up against?
In other words- Does the situation merit action? Does it merit a decision?
STEPS
1. Formulate the Problem Statement—From a Management perspective,
what are the major Conflicts(s) or Problem(s) in the existing situation
that will be resolved by taking action. We can also include here,
related problems that will be resolved by this decision.
2. Assemble relevant information- Events, Facts and Data to support

situation analysis until the current point.
3. List the Supporting vs. Impeding factors with focus on the main Action
to be taken.
4. List the Resources involved in Decision making.
5. List what Actions if any, have been taken so far.
6. Take a Preliminary look at decision factors and solutions. A more

detailed evaluation is undertaken at the Decision Analysis step.
This exercise will help us construct solutions and criteria for the next
phases to follow. A number of tools can be applied here including
Situation Analysis (SWOT).
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The Objective Situation Analysis described earlier is meant to work

for this type of analysis; to better understand the pros and cons involved.
This helps to determine the level and intensity of action required.
Quantitative Evaluation of Supporting vs. impeding factors
This can be undertaken for greater accuracy – impeding and
supporting factors are listed separately based on structured and intensive
analysis sessions. Each factor is associated to positive or negative points
based on its impact. If the total is above an acceptable target, the process
can proceed.
If it falls below target, the decision group can take a call at this point
to skip a more intensive evaluation and/or propose alternate actions,
stating valid reasons. These observations will go into the solution
formulation and following steps.
SOLUTION F ORMULATION
Decision makers have to fix a “main solution” before entering into a more
detailed analysis. If the Action passes the Analysis step, it is this solution
that will be taken up.
Since the Action is formed as a few words or a short phrase, the
Solution should convey more details about how the decision will be
implemented. It may comprise a detailed description of the Action being
considered, or it may be in the form of a specific Solution.
A list of Alternate solutions should also be considered and ranked, in
case the main Action fails. These are secondary, fallback options that may
not have the same impact as the main Action but would resolve the
problem(s) in the situation to some extent.
The Solution Formulation step requires creative solutions for which
the decision making group can apply any combination of proven
techniques, for example- Brainstorming, Prioritization.
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To summarize, this effort can be viewed from three angles- Decision,

Action and Solution, mainly to understand the levels and corresponding
tools of analysis. Active Decision elements can be structured for the
following purpose:-
 To consider an Action for resolving a problem/ issue.
 To decide on a particular course of Action.
 To consider proposed Solution(s) to be implemented based on the Decision.
FIGURE 15 ACTIVE DECISION ELEMENTS
Action Decision Solution
• Supporting vs. • Decision Criteria • Pay-Off

Impeding Factors
• Cost vs. Benefit
• Decision
• Action Outcomes Outcomes • ROI
DECISION ANALYSIS
Following levels of Analysis can be undertaken here-
 Analysis based on Action Outcomes- Prepare Decision Tree(s); other
outcome-based algorithms can be applied.
 Analysis based on Decision Criteria- a variety of tools is available to
formulate decision criteria.
 Analysis based on proposed Solutions- Related methods are Pay-Off
Analysis, and ROI. A Cost Benefit analysis may also be done from the
Solution perspective.
CALCULATE SCORE
This is the criteria evaluation step. A Composite score can be calculated
or it can be viewed separately.
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IS THE RESULT ACCEPTABLE ?

If the total score for a proposed action/ solution passes a certain pre-
determined limit, and other criteria are satisfied, the Action has
“passed”- the decision analysis concludes. The Decision can be made to
implement the main Solution.
If it falls below the acceptable limit, various alternative solutions have to
be considered to progress or mitigate the situation. In that case the
decision analysis and later steps would have to be revisited.
 Note that quantitative evaluation of supporting and impeding factors
was done in the Situation Analysis step. The purpose was to determine
the feasibility of proceeding with the considered Action; also, based on
the assessment of opposing factors, to help determine the direction it
should take as reflected in the proposed solutions.
 In the current step where another quantitative evaluation is involved,
the purpose is to zone in on the best solution.
EVALUATE ALTERNATE ACTIONS

Total score for the main Action was not enough to take action. Proceed
to consider Alternate Actions then perform Decision Analysis.
MAKE DECISION
Make Decision to take Action by implementing the main (or finalized)
Solution.
DECISION REVIEW
Subject the Decision to a Review. There are existing methods that can be
for verification of Decisions. The Objective Decision Review (ODR) Model
finds application here among others.
FINISH
Process completed
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i. The above Process is meant to be dynamic and action-oriented
but also structured. It does involve systematic decision making,
logical reasoning and intensive analysis.
ii. Decision tools shown in the Case Example- i.e. Decision Tree and
Decision Table would be familiar as standard tools.
iii. More advanced tools can be incorporated, as explained in the
next section.
FUTURE ENHANCEMENTS
 We know a lot more is possible in the area of Decision Tools. There
have been leaps and bounds of Academic advancement in automating
Decision logic; with some of it incorporated into IT/ Software
applications including HRMS. Rule based systems and Artificial
Intelligence (AI) are significant examples.
This chapter was about a decision process framework; and in general,
the theme of this book has been analysis of Management methods
with not much space given to decision tools or automation potential.
The aim was to draw attention to aspects of applied Management
that have seen comparatively less advancement so far- e.g. people
related decisions.
Automation is only one part of the solution to the problems we
considered, that too a challenge that comes in at a later stage. Before
automation, we should first analyze the problem area, how to
improve it at a Management level; and acquire more focus on the
type of functional methods and Business models that will work here.
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Certain solutions may require a Behavioral or Psychological model. In

other cases a mathematical model can straightaway be formulated or
adapted. It is only after the above steps, that specific solutions for
automation and decision tools can be considered. And that will
require a more specialized treatment, and a separate book.
Relevant subject areas were mentioned in the Road Map we drew up
initially. For now, we hope to have brought out the ins and outs of
each problem area sufficiently. It should prompt the reader to think
creatively in terms of all the tools and automation solutions possible!
 This Framework can accommodate different types of Models.
It is expected that behavior based models will work with statistical
and mathematical models to augment the overall quality and
effectiveness. For example, a model that predicts performance would
apply behavioral as well as analytical methods.
CONCLUSION
The Active Decision Making Process Model has been described in this
chapter. Case Example III is now taken up as an example to demonstrate
application of the Active Decision Process.
SUMMARY
Structured process models are widely applied in Decision Making; and
the Active Decision Process is one. It differentiates itself in being Action-
oriented and quantitative. It also provides a versatile framework in which
more specialized decision tools can be incorporated.
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CASE EXAMPLE III – INTRA COMPANY TRANSFER

The Feedback process with a score is better than a purely qualitative one;
and one where negative feedback is dealt with constructively is better
than one where abnormal situations are ignored.
The following steps track the value chain for an evolving process.
1
“Until last year we had a qualitative feedback system in our
company. It was later enhanced into a comprehensive point-
based survey format that provides a 360 degree Feedback”
mechanism.
At critical points, there needs to be sufficient guidance for progressing to next

steps. Advanced HR systems have a lot of data, information, frameworks and
processes. But even then points of discontinuity will arise.
2 “The enhanced Feedback process provided a negative score

from an Employee, complaining about lack of growth and
job satisfaction. The next Appraisal is eight months away;
there are no other procedures to address such situations in
the interim. So what should we do with this feedback?
mechanism.
Discontinuities cannot be avoided entirely to begin with. On the positive side,
it is at these points that constructive changes and innovative methods can be
introduced, to progress activity to the next step.
3 “At that point we decided to consult HR. We applied a

formal methodology for Grievance Handling that HR
already had in their knowledge base”.
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Formal structured methods can help manage such points of discontinuity and
accelerate activity to the next step.
4 “Discussions conducted as part of grievance handling

revealed- the Employee is feeling a complete lack of growth
and wants to change over to the R&D department; in line
with his career aspirations and where he believes his real
talent and strengths are. We happened to note that
conflicts in his team seemed somewhat high; however the
team productivity is good”
But inertia will tend to creep in at every step; even if advanced frameworks
and methodologies are in place.
5 “Unfortunately this move to R&D would be an exception if

we allowed it now. So we discussed with the employee and
he was told that this move would have to wait until next
year”
Change may happen anyway, as change attempts are initiated ad hoc and
informally by involuntary change agents.
6 “The employee has been sending more communication to

Management, insisting on the change. He claims the move
will be beneficial all round, a major value add for the
company; and is ready to justify that if given a chance. I
understand he has joined a special R&D group in the
company that he helped create, and plans to give
presentations to the team on relevant topics…”
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But informal change mechanisms are not so effective when there is less or no
official support.
7
“We communicated the situation to Management and
recommended further action. That’s all we could do, we had a
project deadline to meet!”
Change is generally regarded as risky and time consuming; even when the
changes being sought are only at a micro-level.
8
“The Manager chose not to take any action. He was too
involved in project-specific issues and said he does not have
time to look into this further”.
So this ‘people issue’ remains in a nebulous area that nobody wants to deal
with!
“Oh No, this untimely issue came back to us! But it’s not
9
really our responsibility. We’re not sure who he can talk to
now, perhaps HR? I mean it doesn’t seem so important, but
I hate to disappoint this person….Sorry, got to rush off. I
have a project meeting to attend.”
…Should we stop here?!

The page does end here; but the case example thread will resume as the
Active Decision Process and supporting methods will be put to work- to
resolve this problem effectively!
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FIGURE 16 ACTIVE DECISION PROCESS
Objective/ Action
Trigger
Examine
Situation Analysis & Assessment Supporting
vs.
Impeding
Solution Formulation Factors
Decision Analysis-
- Examine Action Outcomes
- Examine Decision Criteria
- Examine proposed Solutions
Evaluate Score for

proposed Action
No
Is the result Analyze Alternate

Acceptable? Actions
Yes
Make Decision
Finish Review Decision
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TABLE 10 ACTIVE DECISION PROCESS – CASE EXAMPLE III
Step Case Example activity

Action/
(Action) Transfer the Resource A to the R&D department
Objective
Email sent by candidate A to his Manager requesting a Transfer out of his current
Trigger
department to R&D
a. Resource A has been communicating grievances to the HR Dept. and

Management over lack of job satisfaction in the current role. This
situation has been on hold for the past two months.
b. A’s Manager had communicated to HR that he does not support a
Transfer. Specific reasons were not provided.
c. A’s annual Appraisal that was held four months back indicates a
satisfactory score.
d. Decision makers- Current Manager, HR Management, R&D Management
e. No other action has been taken so far.
Weight Weight
Supporting factors Impeding factors
(1-5) (1-5)
R&D requires talent. If Effort required to
candidate can actualize conduct impromptu
Situation his potential there, it assessments and 2
4
Analysis and would be a significant interviews in the middle
Assessment value-add. of the year
Candidate is not in the

Candidate’s Manager has
middle of any work
2 chosen not to take part 3
assignments in his current
in decision making
role
Faced with continued lack

of interest and
2
motivation, the candidate
might leave the company
Quantitative evaluation of Supporting vs. Impeding factors-

1. Acceptable Range : 5 <= supporting total and -5 => impeding total
2. Result: Supporting Total= 8, Impeding Total= -5, therefore the outcome
is considered Acceptable and we can proceed to the next step.
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Main Solution-
a. Arrange a Skills Assessment Test and Department Interview for
candidate.
b. If the score and outcome is acceptable, then HR along with R&D
Management will take all factors into account and make a decision.
Solution c. Decision making will involve a short 2-Level structured selection method
Formulation that HR normally applies for R&D selections.
d. If outcome from above activities is positive, HR will initiate the formal
Transfer process.
e. Alternative Actions-
1. Reject the Transfer request
2. Defer decision until next Appraisal.
Level I Decision Criteria are formulated for the initial objective component-
1. Skills Assessment Test Result (Pass/Fail and %age score)
Decision Tools for Outcome Analysis and Selection-

a. Based on Skills Assessment Test Results data from previous years, the HR
department has a Model to help predict future performance levels of a
candidate in the new R&D role.
b. The Model is represented as a Decision Tree with Expected Performance
Outcomes for Test Results.
c. E.g. if candidate Passed with Test score > 80%, there is 60% probability of
performing well.
Else if Pass with < 80% the probability of High performance is 40%.
Decision
d. Given its approximate nature, this is considered a secondary
Analysis
supplemental aid in the final selection.
e. Rule-based criteria are structured as a Decision Table to be incorporated
in the next step of Selection at Level II.
Level II Decision Criteria are formulated for the final semi-objective component-
1. Skills Assessment Test Result from Level I.
2. Result of R&D Department Interview (Recommended/ Not
Recommended)
3. Whether Candidate has undertaken relevant initiatives in R&D over the
past three years.
4. Any other noteworthy Achievements.
5. Decision Rules outcome- this will process all the above criteria.
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Calculate Resource A. has passed Skills Assessment with 78% (Pass< 80% group) and been
Score Recommended through Interview. In addition, has also taken a few R&D initiatives.
Is Result
Yes.
Acceptable?
Make As per the Selection criteria and rules, this provides a Strong case for Selection. HR
Decision will initiate Transfer process for Resource A. in collaboration with R&D.
Examine
Alternate N/a
Actions
Review Decision Review is held. Resource A’s performance will be checked regularly in the
Decision new R&D role and Training provided as required.
Finish Completed.
FIGURE 17 DECISION TREE
 A Predictive Performance Model with statistical distribution of candidate

Performance levels.
 Estimates have been calculated based on data from past three years
 Data consists of applicant Skills Assessment results correlated with post-hire
Performance Appraisals.
 Refer Case Example III – Action Decision - Decision Table for Hiring/
Selection Rules.
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10
SITUATION ANALYSIS
Workplace and Business management situations often require situation
analysis that should be rapid but reliable. An accurate and objective
analysis, if conducted at various points of assessment or discontinuity,
will lead to considerably better management. The Objective Situation
Analysis model is designed and discussed as a versatile technique for a
range of requirements.
From marketing strategy to application in other fields including HR-
Situation Analysis techniques are an invaluable tool for Management
analysis. Prominent models including the SWOT, PEST Analysis, 5Cs and
Porter model come to mind.
By enabling analysis of macro and micro-level environmental factors
these frameworks help the management identify opportunities, diagnose
problems and formulate solutions along the planning process. Ultimately,
it ensures that initiatives and decisions are headed in the right direction.
The above models will continue to work for high level situation analysis in
and out of the organization. In this chapter we have derived a small-scale
variant of the above for “problem analysis” of workplace situations. It is
this level of analysis - typically, centered on the individual or workgroup-
that we are concerned with.
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REQUIREMENTS FOR SITUATION ANALYSIS IN THE WORKPLACE
Ad-hoc, impromptu situation analysis is currently required for so many
day to day situations that we seldom identify it as a formal method. It is
in fact a crucial part of management process/ methods such as grievance
handling, performance evaluation, conflict resolution and interventions.
Current levels of Analysis for the management of environments often
stop at the surface, in the face of perception and influence effects. In-
depth analysis is wrongly assumed to involve lengthy and cumbersome
procedures, and as a result remains cursory. Not being formally
commissioned, it often ends up being too unstructured. Dysfunctional
scenarios can fail to take note of important factors for analysis, suffering
from the same drawbacks as decision making.
There is need for a “problem analysis framework” to analyze
situations quickly and accurately in work environments. The following
requirements should be considered-
a. Not too standardized but logical and comprehensive. Can size up
situations and formulate solutions without requiring an elaborate
or lengthy process.
b. A formal method that involves in-depth analysis without weighing
too heavily on time and resources.
c. Can incorporate regular tools and methods. For example, Event-
Time Series and Trend Analysis.
d. Can apply business models and organization standards as part of
the analysis e.g. Performance and Productivity standards.
e. Should be able to fit in more “unconventional” models- e.g.
Ethical models, Organizational policies, Behavior patterns and
various trends that we encounter in workplace situations.
f. Should support “quick hit” micro-level analysis.
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g. Should be prepared to analyze all aspects of dysfunctional
situations. This can include contradictions and conflicts, effects of
influence, biases, stereotyping and other issues.
h. Situation analysis alone will not suffice in many cases. Therefore it
should interface or link to other specialized methods to effectively
resolve a problem. E.g. consider a situation assessment and
analysis of work group morale that feeds its results into a macro-
level SWOT.
i. Design should be futuristic. Currently, the thought process
involved in these problems is not easily represented in
Computational form. But if Situation Analysis frameworks are
designed to accommodate advanced algorithms it will allow
technical solutions (e.g. those involving AI tools) to be easily
incorporated. Cognitive and Computational models could also
play a part.
j. Can work as a rapid troubleshooting methodology for workplace
situations.
GOALS OF SITUATION ANALYSIS

With further reference to the requirements outlined above, situation
analysis relevant to HRM and People Management could be in response
to any of these demands-
 To resolve a problem or conflict.
 To clarify the situation and formulate a plan prior to making
decisions and taking action (refer chapter Active Decision Process).
 Situation Assessment - to gather information and understand a
situation for a number of reasons e.g. planning resource
requirements, locating business opportunities or to introduce
growth and innovation.
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SITUATION ANALYSIS THOUGHT PROCESS
The thought process involves an inquiry into the situation keeping the
problem and objectives in sight. Analysis is based on the factuality and
relevance of information; and the truth of arguments for and against. As
stated before, micro-analysis should be possible, while keeping the ‘big
picture’ in mind, in the form of business models and best practices.
STEPS IN THE SITUATION ANALYSIS

The following outlines key steps in Situation Analysis in line with standards-
 Understand the Problem

 Formalize Objectives and Scope
o Why is this Analysis being done?
o What type of Analysis is required?
o What are the scope and objectives?
o What Environmental and Situational parameters are to be
considered?
 Devise a Framework for Analysis and Evaluation
o What are the steps involved in the plan of action-
The modus operandi?
o What information is required?
o How will the end results be obtained and applied?
 Implement the Framework
o Gather relevant Information
o Formulate Solutions where required
 Document the Findings
 Conclusion
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FRAMEWORK DESIGN CONSIDERATIONS
The assumption is that no matter how subjective or vague the problem, it
can be logically represented for analysis. Typically, we have to work with
limited time and resources to find a solution, taking all factors into
account.
Good design hinges on-
a) Identifying what type of analysis will work best for a situation.
For example, the given case example requires a framework for
Evaluation of talent (leadership) in a team.
b) Analysis Frameworks can be designed for a wide range of
requirements- from problem diagnosis; to just answering
questions and collecting information about a problem.
c) All aspects of the problem should be accurately represented. In
the Evaluation case example- this is done by forming
Statement(s) that need to be verified. Complex problems can
involve a series of statements or composite statements.
d) Based on what factors is a situation being assessed or analyzed?
In this case we represent them as Criteria (for selection). For
other types of analysis- in place of criteria we could have topics
based on which to organize the information and findings. In some
cases Key Performance Indicators (KPIs) will work better. All
situational factors should be considered when building these
Criteria or other indicators.
OBJECTIVE SITUATION ANALYSIS MODEL©

We now apply the Objective Situation Analysis© model - designed to
address the requirements, goals and design considerations in previous
sections.
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STRUCTURAL ELEMENTS OF ANALYSIS
a) This multi-dimensional model breaks the statement into logical
elements- situation parameters, objects, attributes, activities,
criteria, environmental factors, analysis and projection. It
provides a Structural basis for information processing and
verification.
b) Situation parameters should be established at the start to define
the problem context and boundaries.
c) The above elements can be viewed from a behavioral approach-
Having established situation parameters for a given problem
(statement) we retrieve information about an individual (the
object) and his/her behavioral traits (attributes) relevant to our
criteria.
d) Then we study the object’s activities (behavior); perform the
analysis and reach conclusions (analysis) along with future
estimates (projection). The analysis and findings are structured
based on certain criteria or key topics (criteria).
ENVIRONMENTAL FACTORS
a) Micro and Macro Environmental Factors will enter into the
analysis-for example, while investigating events or diagnosing
problems in the workplace.
b) To work in the context of People Management situations we
have formulated a list of Micro Environment factors, assuming
Macro factors follow the PESTLE model.
c) The effect of these factors on situational facts/events should be
considered; and the possible reverse impact of the situation on
some of the micro-level factors; as well as the interplay among
factors.
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MEASUREMENT TOOLS AND TECHNIQUES
An open and flexible set of standard tools and techniques can be applied
to process information for each structural element. For example, existing
Evaluation techniques such as Management by Objectives (MBO)5 for
preparing the criteria. Depending on the type of analysis being conducted
we may require Key Performance Indicators (KPIs) or other Behavior-
based categories. The table Objective Situation Analysis Examples I shows
how this is works in the Case Example.
MICRO ENVIRONMENTAL FACTORS
The following Micro Environmental Factors have been identified for the Objective
Situation Analysis model
 Organizational Strategy
 Standards, Regulations and Guidelines
 Organizational Resources
 Organizational Culture
 Management Structure
 Performance and Productivity Evaluation Tools
 Management Practices- Quality and Effectiveness ꝉ
 Influences ꝉ
 Working Conditions ꝉ
The above factors have been included after researching relevant theories
in Organizational Behavior (in particular, the Impact of External Factors
on Work Group Behavior) as well as general reference material. Factors
that we considered more relevant for people management situation
analysis have been added to the above list ꝉ.
5
Any existing or traditional methods in the organization that provide information to verify
the performance criteria may be leveraged for this purpose
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ANALYSIS AND PROJECTIONS
Analysis- This information represents the output from Situation Analysis.

Projections- This includes forecast and projections. Different Forecasting
techniques, regression analysis and predictive models can be applied to
generate a Projection or other type of forecast. From the people
management perspective, a forecast or prediction can mean- for
example,
 Predicted benefits of implementing an improved category of people
management methods.
 Estimate of future Management Effectiveness from the application of a new
management method; and as a function of organizational factors
 Expected future performance of a Team as a function of team dynamics and
management quality and effectiveness.
FIGURE 18 OBJECTIVE SITUATION ANALYSIS MODEL
Projections
Analysis
Micro and Macro
Environmental
Factors
Micro and Macro

Environmental
Factors
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Figure 19 Objective Situation Analysis Model – Structural Basis
Element Purpose
Organization, Environmental and other input parameters

Situation
relevant for analysis E.g. Industry, Company size, Work group
Parameters
level or Team type
Object Object(s) of Analysis E.g. An individual or Work Group
Attributes or variables that provide information about an

Object - that we study and measure as part of the analysis.
Attribute
E.g. Candidate background information, Personality and
Behavior traits; psychological factors.
Relevant tasks and events being studied. This includes-

 Past events and activities that lead up to the present
Activities
situation
 Current events and activities
Criteria or KPI are required for certain type of Analysis.
Criteria
Criteria can be nested and have sub-criteria.
Micro and Macro-environmental Factors would appear as

Causal factors in the situation and also be impacted by it. E.g.
Environmental
We analyze an Event to see if it agrees with Organization
Factors
guidelines. And this event can influence the behavior of other
groups in the environment.
The final Analysis with Recommendations, Findings and

Analysis Conclusion. In certain cases it is accompanied with a future
analysis, as explained below.
An estimate of the future benefits or negative effects of

Projection situation activities and related information. Predicted or
projected outcomes should be based on scientific techniques.
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APPLICATION TO CASE EXAMPLE I
Objective Situation Analysis is applied to the problem described in Case
Example I- Leadership Development Program.
PROBLEM AND SCOPE

In this case a few (5) candidates were missed out of from a Leadership
Development selection process. We need to examine whether they were
actually eligible and measure as far as possible, the severity of error in
each case. “Error” implies the error of not selecting the candidate.
We assume severity of the selection error can be measured by –
a) Assessment of how the selection process was applied for the
missed candidates. Was it as per standards? In what ways did it
differ from its application for other candidates?
b) Solution-based Analysis and Assessment of whether the missed
candidate is actually eligible.
DIAGNOSIS
The existing selection process involves a structured, objective component
followed by an unstructured phase of evaluation. Selection Rules in the
structured component were built on measurable decision criteria- i.e.
candidates’ marks from the highest qualification; and years of work
experience.
Following the initial Rule-based assessment, the next step was an
unstructured phase that sought to answer the question “Has this
candidate demonstrated outstanding leadership potential?”
Final Selection was based on (i) whether a candidate passed the
structured component and (ii) satisfied various criteria applied by
decision makers in the second phase- to judge leadership potential.
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We find the structured component was executed as expected for all
candidates, with two out of the five getting high passing scores. And as
per the process rules, the passed candidate names were forwarded to the
next phase for assessment of leadership potential.
Part of the problem appears in the second phase of selection- where
the unstructured criteria and selection logic were not specified or
validated. This is where high levels of ambiguity and bias crept in. And
when candidates complained about not being selected, this point was not
easily verified through the existing system of evaluation.
OBJECTIVES
Objectives of Objective Situation Analysis© for Case Example I are identified as follows-
 We want to formulate valid Decision Criteria to transform the

unstructured phase into a more accurate and reliable evaluation
component.
 We want to arrive at a quantitative measure of Leadership ability
that will answer the question- Is the given candidate eligible
based on the improved criteria to assess Leadership potential?
 We want to assess the magnitude of error involved in excluding
the candidate, as revealed in the above steps.
 We want to locate any other problem areas in the concerned
method/process for further improvement.
FRAMEWORK
In this case our Situation Analysis framework will apply an intensive
Dynamic Evaluation technique. The plan of action will involve the
following steps.
i. Assess candidate background and information to determine
eligibility based on the existing (structured) Rule-based
component.
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ii. Apply a more robust Dynamic Evaluation technique for analyzing
and evaluating “leadership potential” (i.e. to replace the
previously unstructured phase).
iii. Determine eligibility based on the above procedure.
iv. Conclude the process with an overall quantitative score.
FIGURE 20 OBJECTIVE SITUATION ANALYSIS FRAMEWORK
DYNAMIC EVALUATION TECHNIQUE

To answer the requirement for action-oriented analysis methods and
arrive at solutions in a short time frame- a Dynamic Evaluation technique
is suggested here. This specialized evaluation module will link to other
parts of the Situation Analysis framework.
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It is meant to perform accurate objective evaluation in unstructured cases
where -
 There are no preexisting structured criteria- this necessitates
dynamic criteria building.
 Qualitative statements need to be verified.
 Information is not provided in an objective or structured format.
D YNAMIC E VALUATION P ROCESS S TEPS
In this case we are responding to a grievance. We have just a couple of

days to resolve the problem.
Key Steps of the Dynamic Evaluation process are discussed. Except for the
Dynamic Criteria Formation, these are common steps that would apply to
most types of Objective Situation Analysis.
S TATEMENT F ORMULATION
a) Represent the situation or problem to be analyzed as a
Statement- relatively simple in the current case but complex
situations can arise.
I NFORMATION S OURCES
b) Even if existing information sources are minimal or ill-defined (or
in some cases too many) we should know where to look. We may
need to back track and check facts at several points.
D YNAMIC C RITERIA F ORMATION

c) Criteria formulation is important for certain types of Analysis e.g.
for Evaluation purposes as in current example, and in general for
Selection decisions.
d) We apply validated models to parts of the analysis and draw
inferences. For example, the case example invokes Time Series,
Event Timeline and Trend analysis as we want to examine the
candidate’s activities over a period of time.
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e) The Knowledge base here is not necessarily a tangible data
source. It may be tacit knowledge which gets duly recorded in
course of the analysis.
I NFERENCE E NGINE
f) An Inference may not simply follow information/ fact. Often,
checking one fact leads to another in an investigative chain of
facts and events. En route we run it through our relevant models,
standards and behavior patterns. Inferences may contradict each
other; and many such thought routes are possible.
g) In simplified terms for this model an iterative cycle is shown
between searching for information and drawing inferences.
S UPPORTING AND I MPEDING F ACTORS

h) Supporting and impeding factors are identified - based on our
observation of relevant activities and/or knowledge of the
situation. These can also be understood as fact-based and
relevant Arguments to support or contradict the Statement.
i) Based on the observed impact of each, a rating is attached to the
Supporting or Impeding factor. A rating score is especially
required in cases where candidates need to be re-ranked based
on a final score.
M ATCHING C ONTRADICTORY A NALYSES

j) We do need to check the analysis result i.e. conclusion against
other results to minimize incorrect inferences.
k) If two results i.e. inferences are contradictory we need to analyze
why- Have any facts been missed out? Is the reasoning flawed?
Where has the subjective bias crept in?
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l) Logical matching of contradictory views enables us to filter out
perception and subjective factors. This process should be based
on fair play and best practices.
m) Finally, one of the results wins; or if both are incorrect we might
seek more information and arrive at an entirely different result. It
can take a few iterations to reach the correct conclusion.
R ESULT OF D YNAMIC E VALUATION

n) The result of Dynamic Evaluation is finalized in quantitative terms;
containing the (existing) objective and (new) dynamic evaluation
components.
 Candidate A is found to be eligible, with a score of 80% (objective
component) + 3 (enhanced evaluation component). The same candidate
had been rejected in the existing process. In quantitative terms, rejection
implies that the candidate was found to be 0% eligible. However, the
candidate is found to be at least 80% eligible based on the improved,
verifiable Evaluation technique.
 Candidate E qualified; but is borderline when it comes to leadership

potential.
 Other candidates did not qualify based on the objective component.
o) The above result feeds into the Post Evaluation Assessment of the
current Framework for further processing
M EASUREMENT T OOLS AND T ECHNIQUES

p) Again refer the It is
Objective Situation Analysis Examples I and II-
noted that Event Timelines can prove to be most suitable for
situations involving high levels of ambiguity and indeterminate
causal factors.
q) Monitoring and observation are only recommended within certain

limits, to understand the situation and are not meant to be
oppressive.
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FIGURE 21 Dynamic Evaluation Process
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TABLE 11 OBJECTIVE SITUATION ANALYSIS EXAMPLES I
Statement to be Object(s) of Analysis Attribute(s)

Evaluated
- Candidate - Intelligence and Aptitude

levels of candidate
This Candidate has
Situation Parameters - Personality Traits linked to
demonstrated
outstanding Leadership
Leadership potential - Present level and
- Relevant aspects of
designation of candidate
individual Behavior
- Job Role details
- Candidate information from

available sources e.g.
Measurement Tools - Relevant information Feedback, Assessments,
and Techniques (A) from available sources. Questionnaires
- Man Analysis, Task Analysis
Activities -
Criteria and Rules
Activities/Behavior to be examined Criteria

- Voluntary tasks and Initiatives, - Leadership ability
- Contributions by candidate to the Sub Criteria
Organization that are indicative of
- Voluntary Tasks, Initiatives
Leadership
- Contributions
Action Outcomes
Rules to track activities -
- Observed or Expected benefits from
above activities - Undertaken in the past year.
- Beyond regular work tasks.
- Provided tangible benefits
Measurement Tools & Techniques (B) Measurement Tools & Techniques (C )

- Event Timeline and Analysis - of - KPI, Critical Success Factors for
relevant activities undertaken by establishing Leadership Criteria
candidate in the past year.
- Methods to analyze benefit from Activities
- Trend Analysis e.g. Earned Value, Outcome Analysis
- Monitoring and Observation of - Objective Decision Review (ODR) ©
candidate activities
- Management by Objectives
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TABLE 12 OBJECTIVE SITUATION ANALYSIS EXAMPLES II
Statement to be Object(s) of Analysis Attribute(s)

Evaluated
- Teams, work groups and - Group Dynamics

individuals in the given
- Team Dynamics
work environment
- Personality traits of
This is a friendly work
Situation Parameters individual group
environment members
- Organization Level
- Coordinates of given work
Environment
- Relevant information
Measurement Tools - Relevant information from about work groups and
and Techniques( A) available sources. members from available
sources.
Activities Criteria and Rules
Activities/Behavior to be examined Criteria-

- Behavior and Interactions among - Socializing and friendship skills
relevant members and groups.
Rules to track activities -
- Networking skills of groups and
- Activities occurred in the past year.
members.
- Can be intra-group, inter-group or
- Formal and informal events that groups interpersonal
participated in, indicative of friendship
and socializing.
- Response of work groups to new
entrants and visitors
Measurement Tools & Techniques (B) Measurement Tools & Techniques (C)
- Event Timeline and Analysis – relevant - KPI
activities undertaken by teams and
- Balanced Scorecard
groups in a given time frame
- Objective Decision Review (ODR) ©
- Trend Analysis
For Projection
- Team State Analysis©
- Delphi Method
- Monitoring and Observation of
candidate activities - Other Forecasting techniques
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POST EVALUATION ASSESSMENT

What parts of the process did not work as planned?
 While the rule-based objective component worked as expected; it was
the later unstructured phase that showed higher deviations in decision
making and process execution.
 Leadership evaluation criteria were solely based on abstract high-level
standards; and lacked enough specification to ensure uniform
implementation.
What parts did work as planned?
 Phases downstream that involved Issues management and resolution
were observed to function as expected.
Recommendations for Issues Resolution
 Steps to be taken to conclude the issues involving corrected scores for
eligibility- specifically, for inducting candidate A in the Leadership
Program.
 Management should involve the other four candidates in some capacity-
-though not strictly eligible, they did show interest and motivation to
advance their careers. Being left out of important development
programs can negatively impact candidate morale and motivation-
observed as critical factors in people management. Therefore, positive
reinforcement should be provided by understanding each candidate’s
aspirations; and setting him/her on a guided track to individually
develop their skills and competencies.
Recommendations on Selection Process
 Process steps, rules and guidelines should be formulated for consistent
error-free execution in future.
 Selection criteria should be specified even for abstract terms such as
“leadership potential”.
 The decision model, process and a decision review method should be
agreed upon by all decision makers and stakeholders.
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 Formalized methods at various phases of analysis can include standard
best practices and quantitative models widely available in industry- e.g.
ranking of candidates. Refer Objective Situation Analysis Examples II.

Q1. This Framework also sounds the same as Evidence Based Reasoning?
This situation analysis framework- designed ground-up for micro-level
management situations, can incorporate advanced “technical” algorithms
based on EBR, or EBR as part of ODR. Note that we earlier mentioned
‘Computational models and AI’ precisely with this in mind. There are
many insightful thought process/logic models out there, and growing- a
welcome trend! However, the purpose of this framework goes beyond
the logic module, for which we defined other constructs- i.e. micro-level
factors, tools/techniques & information sources for this type of analysis.
SUMMARY
In people management processes we come across instances of high
fluctuations in quality and efficiency between different functional
components of the same system/ process. This can happen for example-
if parts of the process are managed differently based on varying
standards. Outlined earlier as a failure mode, it is a trend that re-
appeared in our current improvement effort for Case Example I.
The Objective Situation Analysis model was designed to provide a
Structural Basis of elements based on which information can be gathered
and processed. Also discussed as part of this model were the Micro
Environmental Factors considered relevant for people management; and
an Analysis Framework. The case example applied the Objective Analysis
framework by extending the analysis to a modular Evaluation technique.
Similarly, there are many other types of models and measurement tools
that can be applied as part of Situation Analysis.
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11
CHANGE AND CONTROL

As workplaces go through evolutionary and revolutionary change cycles,
some problems will be resolved and many won’t- they will be left to
resolve themselves, or for the next decade to resolve. But the new
decade will bring an onslaught of stranger, tougher problems to deal
with—and we’ll wish we were better prepared with solutions, today!
If you start searching for Management techniques that enable action by
applying logical and rational methods in the face of persistent inertia and
inaction, you can’t miss OD Interventions- they actually have “breaking
status quo” on their agenda! Feeling thrilled but a bit worried, you delve
deeper; and find that it’s about controlled and managed change based on
best practices, to achieve clear goals for sustainable improvement.
Organizational Development (OD) is a planned, systematic, top-down
approach at the organization level that can apply any of several change
techniques. And to this, OD practitioners have added a fascinating array
of techniques over the years.
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Change and Control is presented as a prelude to the next chapter,

dedicated to OD and Interventions. We start with a discussion of
problems that demand advanced change and control methods.
With regard to Management controls, the Controlling steps in the
Management Process and the Types of Control have been recognized in
Organizational Behavior (OB).
Authors in this vast field have provided remarkable insights into
various aspects of current workplaces- Team types; legitimate vs.
illegitimate political behavior, formation of coalitions and many more
concepts. So we do see the frameworks are there; but workable change
and control is still challenged by a lack of advanced techniques in the
presence of dysfunctional scenarios. Problem Areas outlined below point
to the need for more effective Change and Control Mechanisms - in
Management.
PROBLEM AREAS
1) Over utilization of Informal Methods in Management
When people seek changes in their work environment and encounter
resistance, they tend to form informal groups and “fight” or agitate
for these changes. For example, they fight for promotions, rewards,
business opportunities or better working standards based on a mix of
competitive and political tactics.
 These tactics serve as informal methods initiated by the
individuals/groups fighting for the change or reward. When the
“fight” is politically correct organizations do not discourage it. As
it helps to build more competitive environments it is even
encouraged. So where is the problem?
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 The problem is in over dependence on informal methods which is

ineffective and may even be counter-productive. This may lead to
under-utilization of the formal methods and structures; resulting
in a gradual corrosion of the systems and processes© that exist
to manage and respond to changes in the organization.
 If people are constantly forced to “lobby” for basic improvements
at work e.g. fair and merit-driven promotions- it follows that
efficient appraisals will never happen through formal and
standardized processes.
 Therefore, a drawback in making people “fight for change/
reward” relying on informal methods is that- Management
systems and resources, standards and performance-driven
criteria, even Ethical rules- are not exercised enough. These
issues are examined in detail in the next chapter- Interventions.
2) Management of Environmental Problems
The fast-paced, high-competition environments of today often result
in uncontrollable and imbalanced dynamics in the work environment.
Management of environmental dynamics is therefore required; and
should work to correct extreme imbalances where a host of negative
effects are likely to arise.
 If allowed to run its own course, an environment may reach a
chaotic and counter-productive state—that only timely guidance
and active management controls can rectify.
 In contrast to the above states, the work environment may suffer
from sluggishness and inertia.
3) Load Balancing and other problems in Team dynamics
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Challenges in the work environment often extend to the management

of Team dynamics. Team members have to manage themselves. This
may not pose a problem where an “advanced” team knows how to
recover from sluggish or discordant states. But in other cases- it can.
 On the downside- we find abnormal workload distributions and
stress.
 Lack of load balancing techniques at work indicates some people
have to work much harder for less reward. To a point it adds to
the competitiveness; beyond this, continued management inertia
will have negative and counterproductive effects— “victims” are
created (a term HR studies are familiar with)
 Teams take longer transitioning to higher states of productivity;
there is inefficient integration of new entrants and new skills;
people who face greater resistance to integration through no
fault of theirs, have to work harder at it- spending more time and
effort on tasks.
 Possibly the worst effect of the above is that performance and
quality of work get sidelined as team members engage in
increasingly political behavior to play and compete. Over time,
this degrades the work culture.
 Management theory does consider important aspects of Team
formation and its stages of development. But we need more
practical tools to assess team dynamics, minimize imbalances and
transition quickly – not to over-control, but to guide the team
along optimal paths.
Scope for Innovation
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 A large part of existing HRM knowledge in these areas is

observational or experiential i.e. an Event is recognized after it
occurs. What if we wanted to go beyond observation? (Can you
pre-configure the team dynamics for higher performance?)
 There are times we need to accurately predict failure modes;
then, actively intervene and make just the right level of changes!
 OB theories provide a great foundation to build on- A significant
example is in OB’s deft recognition of various aspects of “power
struggles” and organizational politics. But where are the
advanced management techniques to detect, contain and control
these effects at work? To detect and minimize political influences
in situations that do not require them?
 And What If- we wanted to implement adventurous new
solutions to correct abnormal or exceptional situations? Let’s say
you’re the Manager, with a brand new idea in management. You
get a flash of inspiration, perhaps to manage team dynamics
better- does your environment allow you to develop your idea
and apply it?
o Or, you’re the Manager who wants to break out of
calcified patterns and make the right decisions for people
who deserve it. Does your organization provide formal
methods for you to enable it?
That means we need the space for out-of-the-box solutions as
well. As this question concerns Management Innovation, it is
better answered in the chapter Innovation Cycles.
In summary, the importance of having alert, intelligent and efficient

change and control methods cannot be overstated. Whether in the
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internal or external environment, it involves the capability to break

people out of negative patterns; it involves detecting negative dynamics
at multiple levels and transitioning to positive states, the ability to
contain counterproductive environmental dynamics- and implementing
all this in a timely manner.
4) Under- Managed Environments
The effects discussed so far are caused when level of management
controls is not correct. Where the problem involves under-
management, this is examined in the following section.
MANAGEMENT CONTROLS
The idea of Self-Managed teams has been gaining popularity over rigid
hierarchical structures. Its positive aspects were discussed in an earlier
chapter. Self-Management allows us to analyze scenarios where some
controls are situated within the team (in contrast to outside).
The point of this discussion is however, not to study team types and
structures but the types and levels of Management control applied on
them. In general, we can say that controls and authority structures
should be suited to the team, and optimized based on the work situation.
In order to further analyze Management controls and related
methods for change- on a different scale we define Active vs. Passive
modes of Management. (Not to be confused with similar terms in the
Investment world).
Note that we had previously defined Active and Passive styles with a
focus on Decision making. Here, in the larger context of Management
modes- decision making style plays a part along with other methods that
need to be considered.
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Adaptive Management6 is a known technique developed over the

years-- recognized as an “iterative process” that involves robust decisions
and improvement through learning. There are characteristics in the
Active mode defined here, that are similar to Adaptive Management.
Based on the level of Management controls and related factors, we have
identified the following modes -
 Active management- Management methods and controls are
actively applied as and when required.
 Passive management- Active management is not applied, and
may be required or not.
 Under-management- A dysfunctional side to Passive does emerge
where active controls are required -but not being applied. These
are situations having under-management.
ACTIVE MANAGEMENT
 The management is prepared to manage situations to keep them
functional, healthy and work-conducive at all times.
 Active Management is associated with an Active decision-making
style. It is alert to the work group or team’s requirements. This
author first wrote on the importance of active decisions in an
online publication in 2007.
 Active Decisions are made at critical points, with discontinuity
and imbalances being corrected when required.
 Active is also iterative, and involves a learning -based
improvement (Adaptive style).
6
Holling (1978), Walters (1986)
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 Negative side effects from over-management are avoided and so

is the risk of imposing oppressive conditions.
PASSIVE MANAGEMENT
 Theoretically, this is a complementary mode to Active. The
management controls in this case are dormant; and management
does not play an active role.
 For a situation like this to be functional in practice, it may be
considered a “special” case.
o For example, it could be a pre-planned phase- where roles
and responsibilities have been planned out in advance to
handle day to day operations on a temporary basis.
 We would not recommend it as a preferred or optimal state; only
observing that Passive styles can be functional in certain cases.
UNDER-MANAGEMENT
 These are dysfunctional situations that arise from ineffective
Management controls- where management attention is required
but not being applied correctly.
 For example, the team does not get sufficient guidance on goals;
abnormal work distributions are overlooked and so are other
problems including conflicts.
 Decision making is slow; and decisions are not made for the most
part.
SUMMARY
As discussed, achieving the right balance between under-management
and over-management would involve:-
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 Active Management- associated with Active decision-making in

people management.
 Real time application of suitable change and control mechanisms
- not for many or most, but all those who require and deserve it -
including the 5% or other percentage of the workforce that tend
to get missed out.
 Objective techniques including situation assessment to get a
complete unbiased view, based on which to apply Management
techniques.
 In contrast to Active, there is Passive Management and Under-
Management that involve Passive styles of decision making.
 The former (Passive Management) may be a functional state
where active decisions are not being made, but neither are they
required.
 Possibly because this is compensated by positive factors such as
successful self- management- as a result of which, team
efficiency and effectiveness remain high.
 The latter (Passive decision making in Under-Managed situations)
is a clearly dysfunctional state where decisions are required, but
not being made.
 Situation Analysis should clarify the question of whether
decisions are “required” or not, in a given situation.
 We consider Interventionist change process as a Management
solution area to address the challenges specific to change and
control. It is among the many structured methods that can be
customized and applied for people management. These methods
may also be viewed from the Change Management perspective.
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In the next chapter we will consider relevant aspects of intervention and

group behavior to devise a method- the Guided-Objective-Intervention©.
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12
0
INTERVENTIONS
We first discuss relevant aspects of OD Intervention as a tool for planned
and active change in organizations. An overview of OD Interventions
involves significant concepts including a study of resistance to change.
Next we focus on informal methods of change in current work
environments, examining side effects and limitations. Finally, an
optimized method – the Guided Objective Intervention© is designed
based on a combination of existing techniques.
OD INTERVENTIONS
OD Intervention refers to a structured activity that is performed for an
organization by individuals or groups based on a goal or objective, such
as improving the performance of a work group.
OTHER DEFINITIONS
Every action that influences an organization's improvement program in a
change agent-client system relationship can be said to be an intervention.
(Johnson, 1976)
Intervening in the system aims to resolve difficulties, remove hurdles and
provide momentum to increase the effectiveness of the organization.
(Dwivedi)
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PURPOSES OF OD INTERVENTION
Organizations apply interventions for many purposes. The following key
points have been recognized--
 Performance and Productivity Improvement
 Improving Employee and Organizational Effectiveness
 To foster open communication, trust and confidence in intra group
and inter-group relationships. This may involve changing mindsets
and perceptions that would come into play as group influences.
 To encourage participative management by increasing employee
involvement and participation in the management process.
MORE APPLICATIONS
 Depending on the strategy adopted for intervention, the focus may
be on the Learning process, the Human element or other areas. The
impact of intervention would be felt accordingly- for example, in the
people management process.
 Crisis Intervention- It can play a significant role in crisis management
where following a rapid diagnosis, active measures have to be
implemented in a short time frame.
 Situation Assessment mechanism- the company surveys a situation to
assess the feasibility of change.
 Control and Improvement of Processes- the process breaks out of
outdated patterns and controls, transitioning into more effective
dynamics as optimized controls are applied.
 To support Innovation and Problem solving.
 Optimized Decision making is based on complete unbiased
information provided through interventions.
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ELEMENTS AND TYPES OF OD INTERVENTION

The following elements are found in a typical Intervention Process-
1. Change Agent(s) is the Intervener

2. Change or Intervention Target(s)
3. Organization stakeholder(s)
4. Client System
5. Intervention Goal(s)
6. Intervention Participant(s)
7. Units of Change
In practice, Interventions may be directed at the individual, group or
organization level. Methods for classifying them vary, with some that are
not too rigid. It can be based on what type of process it targets or the
type of work tasks involved in target group(s).
The following activities can be viewed as forms of intervention- Team
building, Coaching, Mentoring, Large Group Interventions, Performance
appraisal, Downsizing, TQM, Leadership development, Training,
Questionnaires and Kaizen.
It covers a wide range of initiatives planned by the company including
Process Improvement, Re-Engineering and Management Consulting
projects, Corporate Social Responsibility (CSR) and Placement.
Classifications of OD Intervention based on the type of process it
targets (Cummings & Worley)-
1. Human Process
2. Techno-structural
3. Human Resource
4. Strategic
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THE OD PROCESS
OD Process Steps 7 outlines the steps in a generic OD Change
process; hence it is applicable for OD Interventions.
FIGURE 22 OD PROCESS STEPS
Problem Evaluation and

Identification Feedback
Data Collection Follow Up
Intervention
Diagnosis Planning &
Implementation
CURRENT APPLICATION
We regard Interventions to be a solution area based on which
structured change and control mechanisms that involve HRM and
Human process can be applied among others. It is important to note
that these interventions are supposed to work both at team and
Management level.
In the context of people management practices we envision Change
Interventions working in the following ways.
 As a change mechanism focused on the Management level. For
example, Training the management in optimized decision
techniques.
7
Reference: various sources
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 Exercised as part of Management practices that involve people.

For example, management of team dynamics, and optimized
methods for selection, hiring and placement.
 For devising more effective, faster and structured change and
control mechanisms. For our purposes we consider interventions
that can be applied on the work floor through shorter, micro-
level cycles.
 For introducing improvements in existing change methods. For
example, the method of Guided-Objective-Interventions©
designed here, minimizes the adverse effects of informal
methods by introducing formal methods in the process.
 For assessing the resistance to change initiatives in people
management areas.
A GENERAL VIEW
The intervention word is defined in one source as, “Interference so as to
modify a process or situation “. Intervention can be understood as a
guided, structured process that requires initiative, involves assessment
and systematic diagnosis, and finally benefits all participant groups.
In a world caught between the necessity and avoidance of change,
this technique provides methodical ways to prepare, adjust, implement
and absorb it. One could say that with intervention performed correctly,
you can’t go wrong! This observation refers primarily to HRM and Human
Process interventions.
As expected, there are risks associated with wrongly conducted
interventions; but then the worst-case scenario is no more than an
ineffective waste of time. We can see the benefits even in such cases, in
terms of the learning and situational awareness one has gained.
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BARRIERS TO INTERVENTION
Resistance to OD Interventions is indicated by various factors. In order to
plan a successful intervention the nature and strength of these barriers
should be assessed.
RESISTANCE TO CHANGE
Types of Organizational Change have been classified as Developmental,
Transitional and Transformational (Ackerman).
Just as Change can happen at the individual, group and organization
level, resistance to it can be felt at these levels and must be dealt with.
Intervention resistance can be gauged from the same factors that enter
an impending change scenario. For example, the need to overcome slow
learning curves and team inertia prior to a group training exercise. Refer
Figure- Potential Sources of Change Resistance8
Figure 23 Potential Sources of Change Resistance
8
Reference: Various sources
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BUY-IN FROM ORGANIZATIONAL STAKEHOLDERS

The organization must make a decision to launch an OD intervention.
Problem Identification being the first step in this Process, awareness and
acknowledgement of the problem would encounter resistance unless the
pressure for change is so high that it cannot be ignored.
Following this the management may enter a decision making process
with the objective of deciding whether to have an Intervention. Possibly
starting with the business proposal, an end-to-end analysis of the
proposed intervention plan would be undertaken. It can be expected to
include feasibility studies, a risk assessment, and various decision models
e.g. a cost benefit analysis and ROI. A consensus would have to be
reached and approval obtained from all stakeholders; for example, in
strategic cases- from all the departments.
As suggested in this book, the above is a critical step; likely to
encounter resistance from sources at the management and organization
levels. The degree of efficiency, collaboration, alignment and on the
other hand- inertia in the client organization would play a major role. A
decision-friendly culture and an active decision making environment
would work to minimize “decision resistance”.
We observe that the forces that resist (or, support) change in the
organization can exist almost entirely as intangible factors- i.e. influence
or culture effects, or informal practices. An organization that starts
considering Change, is still considering an abstraction in the initial stages.
It is when the organization agrees to more formal methods such as
intervention that it agrees to visible and measurable instances of change.
When structured methods to confront and assess resistance are enabled,
along with stakeholder participation, and formal methods required to
implement them are available- it can lead to tangible change.
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FACTORS THAT SUPPORT OD INTERVENTION

Forces that lead to Organizational Change can be found in the internal
and external environment. While some factors including structural inertia
only work against, others such as group dynamics can push for or against
change.
E XTERNAL F ACTORS
External factors are known to trigger significant changes and
corresponding OD interventions- E.g. Globalization, Economic and Market
conditions, Technology changes, Competition, Government policies,
Industry practices, Rules and regulations.
I NTERNAL F ACTORS
Internally, there are positive or negative factors that can lead to Change
Intervention as listed below.
i. Crisis
An organization facing a crisis must take firm action to manage it. Thus crises
act as a powerful though undesirable change driver.
ii. Reduction in Performance and Productivity

An adverse impact on profitability can alert the management to various
problems; and trigger initiatives for example- cost-cutting measures, identifying
new revenue streams, improving sales and marketing operations or diagnosing
and correcting other internal problem sources.
iii. Discoveries and Innovation

In the reverse of scenario ii- a dramatic rise in productivity or a new product
discovery can also trigger intervention, as one would want to standardize and
market the innovation.
iv. Human Resource and Workforce factors

Employee related changes may be initiated to curb attrition, retain talented
employees and develop employee relations.
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INTERNAL TRIGGERS FOR CHANGE

There are internal causal factors that can lead to change; though not as
high impact and in these cases an intervention may not take place. In
many cases they are ineffective as the change is not allowed and may not
happen. We focus on these mainly to analyze problematic areas related
to informal methods in contemporary work groups.
A BNORMAL E NVIRONMENTAL D YNAMICS
Consider dysfunctional work environments characterized by- Low

performance, friction and negativity, with uncontrollable or disruptive
processes. In an actively managed work environment, conditions
approaching the above state would be observed, assessed and corrected
promptly.
INFORMAL METHODS OF CHANGE IN THE ORGANIZATION
Modern business environments are more encouraging of employees who
want to “speak out” about problems. Rather than enforcing a culture of
fear they want to improve communication. In progressive cases,
Management may even work in parallel to evolve solutions to employee
problems and institutionalize the successful ideas that emerge from it.
In spite of these positive trends, it is not uncommon to find instances
where problems get ignored completely; or attempts for change or
reward only encounter inertia and consistently negative reactions. In
cases where change resistance is high and change is not being allowed,
groups and individuals may fall back on other unplanned options.
From time to time, people have to “fight” for the changes they seek,
for lack of more structured or formalized methods. In the process, they
may act as change agents. A contemporary situation considered here, is
when they agitate or push for the changes or rewards they want through
various legitimate tactics.
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This refers to political tactics as well as competitive work tasks, and

other initiatives- all of which may be regarded as intensified efforts
toward getting the organization and/or decision maker(s) to make the
required changes in their situation; and this may entail a positive
reinforcement or reward. We will refer to these as change attempts©-
that take place within the organization or outside- in the vicinity of
Management decision systems.
There are many such instances of people getting into groups and
playing- whether to compete and/or to satisfy some goals(s). “Play
tactics” regarded here as behavior that typically involves a mix of formal
and informal methods. Different examples of change attempts are
provided-
(i) An employee feels that s/he is due for a promotion; but appraisals are not being
held correctly; nor are his /her grievances being addressed. So s/he joins an
informal group and “plays harder” (but work output may remain the same for
lack of management support).
(ii) Feeling victimized, a team member agitates to improve his working conditions.
(iii) A struggling Entrepreneur pitching a business plan considered too “disruptive”
encounters excessive resistance, barriers and inertia. Then gradually forms
partnerships. The group continues making efforts for support and funding.
(iv) Feeling trapped in the wrong job, an Executive tries for better placement in a
particular industry, applying a mix of job applications, training and networking.
(v) In Case Example III an employee wanted to change his Department but faced
inertia and lack of management interest. He then initiated efforts to make the
change himself by networking, joining an informal support group and working
out other tactics.
An individual may push for change/reward (i) alone; or (ii) resort to

radical or illegitimate behavior or (iii) form a coalition. In the (i) case
unless a coalition is formed in due course, the individual may give up the
change attempt. In the (ii) case the radical action would be actively
discouraged and hence short-lived.
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Strange as it may seem, organizations permit such change attempts.

Individuals and influential groups are allowed to play for change, even in
well-managed environments. Organizational justification for it could be
based on the view that these are potentially functional conflicts and
known to have positive effects. They can be found in a variety of
environments ranging from dysfunctional to those having moderate-to-
highly efficient management processes and controls.
C OALITION F ORMATION
We observe that the individual is usually an ineffective change trigger

when working alone, but there can be exceptions. The change agent(s)
may push for change by forming coalitions or informal groups. It is these
legitimate change coalitions that tend to survive though there may not
be much organizational support for the changes they seek.
As it is not regarded an official or formal change mechanism and
usually has no direct involvement from Management, the coalition may
not lead to any tangible changes, especially in change attempts that have
less support for their demands.
The difference between types of change coalitions should be
clarified. In general, coalitions are known as informal and temporary
groups that get formed for different purposes. For example, they may
involve change projects including initiatives driven and supported by top
Management. In such cases, they are expected to work toward the
change while overcoming some resistance.
In contrast, the change coalitions considered in this situation are just
groups with considerably less power and influence; who start with no
direct support for their initiatives; making it necessary for them to agitate
for change or reward, constructively.
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There could be other coalition types, for example Task-based. This

section dealt with coalitions that seek some change i.e. change coalitions.
P OSITIVE EFFECTS OF I NFORMAL M ETHODS OF C HANGE
1. Increased levels of competition

2. Fosters Team building, networking and better integration
3. Initiates the possibility of slow, gradual and incremental changes
4. Coalitions can mobilize influences in the process of change
D RAWBACKS OF I NFORMAL M ETHODS OF C HANGE
There are several drawbacks to a situation where only informal methods

are available as a means to effect constructive changes:-
i. It is informal and lacks management involvement. In the presence of too
many environmental controls, a constructive intervention will never
happen or at best, happen slowly. Note that in such cases the
organization has not planned for the change at any step.
ii. Instead of resorting to the change management processes that most
companies should have in place, one is habituated to take the route of
informal methods. As a result official change mechanisms never get
applied to work as they should. Formal decision processes and systems-
for appraisals, promotions, placement or any other- remain sluggish and
out of sync. A clear case of under-utilized management resources!
iii. A dominant part of coalition and informal play tactics tend to be
political in nature, in the context of organizational politics; therefore it
encourages political behavior.
iv. The quality of work is impacted since the focus is now on the play, with
emphasis having shifted away from the change itself, to the dynamics of
playing for change.
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v. Influential groups playing against each other can “win” simply by
mobilizing more support. Criteria based on work, merit and even ethics
are often pushed back.
vi. Moreover, it can lead to high stress for individuals and also reduce job/
effort satisfaction. Risk-to-reward ratios are high. In many cases, these
individuals and groups only serve as involuntary change agents.
vii. Waste of effort in cases where organizations are not prepared to
recognize the value of these efforts in terms of its positive effects.
viii. Informal tactics can perpetuate as repetitive behavior patterns and
habits.
The conclusion is that while informal methods of change in people
practices do play a part in current work environments; and may lead to
gradual and incremental improvement, dependence on these methods
results in reduced effectiveness and has various drawbacks. The value of
informal methods exists, but is limited; and its detrimental effects should
be minimized. In contrast, exercising formal structures and methods to
resolve problems in the organization provides maximum business value.
M ETHODS OF P LAY
Do we “work for play” or “play for work”? The main benefits and
drawbacks of informal methods of change as discussed above, apply to
play tactics as well. But this is such a ubiquitous behavior in business and
work environments that it merits detailed analysis.
In the corporate world, letting change happen by letting opposing
groups play against each other any which way they like- this seems to be
an accepted and standard behavior that determines important outcomes.
From changes to decision making, crucial aspects of management depend
on it. But is this an optimal path? How effective is it really, in work
environments?
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Is there a dysfunctional side to over dependence on informal

methods of play as a means to achieve objectives?
On the positive side, it should work very well in dynamic
environments with fair play and “healthy” working conditions. It can
drive competitiveness and creativity, propelling business and team skills
to greater heights. When participants have high degrees of freedom and
are self-driven as in more developed work environments, it could be a
substitute for active management controls and formal methods.
One of the main success factors for Play tactics- is the high visibility
of all participants regardless of their personal resources or financial
position. When all opinions for and against- can be heard loud and clear
in the decision process, it means every change attempt goes through a
rigorous and dynamic process of healthy competition and cross-
examination. This provides an inbuilt quality control.
Even with less overt controls and passive management conditions,
we could see progressive changes happening and situations resolving
themselves, in these more dynamic environments.
Unfortunately, there are commonly observed dysfunctional aspects
to play tactics that work in parallel. The above conditions are what we
assume to be in advanced conditions. In reality, play standards on an
average turn out to be biased and overly political. Fair standards to
govern play tactics in the work and business environments, are not
always there. As a result it’s not fair and free competition that drives the
game- in many cases, it is mediocrity.
When sufficient rules, methods and structures are not provided to
enforce fair play- it becomes a negative factor that undermines the
effectiveness and quality of management.
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Specifically, the following dysfunctional scenarios emerge-

 Lines are often blurred between right vs. wrong methods of play.
 Methods to differentiate valid play from power play tactics are not
available. Wrong methods that involve –for instance, rumor mongering
or harassment tactics- only add to the negativity and adversely affect
working conditions.
 When people have to keep playing in situations with “no rules”- under
these conditions more influential groups can play using any type of
methods to influence the game.
 And when dominant groups are allowed to drive the game, their
methods may not be legitimate or valid. Nonetheless, they would still
have tangible impact in determining outcomes and enabling changes.
R ECOMMENDATIONS
The issues discussed above are pervasive, given the extent of disparities
in society. All the same, Modern Management must ensure that these
trends are controlled and checked by actively applying management
methods and processes.
The conclusion is that excessive dependence on play tactics in the
absence of rules can result in sub optimal outcomes. For the purpose of
supporting fair play conditions, Active controls are required to analyze
and check the validity of play tactics.
INFORMAL METHODS OF CHANGE IN THE EXTERNAL BUSINESS ENVIRONMENT
This section takes a brief look at Informal Methods of change in the
external environment and involves some arguments that are common to
those just discussed.
Work environments within the organization are usually too
structured to allow extreme imbalances. But now we consider play tactics
in the vicinity of management systems.
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Efforts such as Job Hunting; Placement search; Entrepreneurial

pitches; Business and Industry Networks- i.e. situations taking place in
the Organization Extranet or External Micro-Environment.
These are efforts to enable Management decisions while working
from outside the organization, but within the sphere of authority of
potential decision maker(s) and stakeholders in one or more
organizations.
A tricky question that emerges in such cases (often left unanswered)
- when a change attempt is external to the organization, who are the
decision makers? Our answer is, it would be the stakeholders and
management for the system or process responsible for decisions and
action in that situation; and the organization(s) officially being requested
for the change/reward.
These efforts are likely to be impacted by the wrong methods of play
and lead to the following observations.
 Since Organization Management is involved to the extent of making
decisions and applying management methods not just internally but
also in the vicinity, it follows that best practices should be actively
applied toward fair play conditions- both internally and in the vicinity.
 For example, Entrepreneurial efforts tend to start as informal coalitions,
often in the external environment. With the recent growth of
entrepreneur networks and organizations it is expected that standards
and formal methods should be applied by them, in these situations.
INFORMAL METHODS OF CHANGE IN THE SOCIAL ENVIRONMENT

Informal change attempts and coalitions are formed in socio-political
environments. In these situations, it is possible that formal management
structures are not available or functional, therefore initiating change
informally is the only option.
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The following observations are made-

i. In order to trigger social change in the absence of officially functional
support structures, people have no recourse but to agitate by forming
groups.
ii. One can understand this is how coalition patterns originated in the first
place. But again, it is not the best change solution when it comes to
workplace and business environments.
We resume the thread on Organizational Change to state that change
methods in the organization should not merely copy social change
methods, but provide role models for the external world. Business and
work environments are supposed to provide more structured and
efficient solutions in this regard.
This view can be generalized to say that as more structured and
formal methods are introduced in any environment- including the
organization extranet- the dependence on informal methods should
reduce. As stated previously, the concerned organization(s) should start
working their systems and processes that are set up for active decision
making, assessment, feedback and other best practices.
THE GUIDED OBJECTIVE INTERVENTION©

Guided-Objective--Intervention© is essentially an interventionist Change
process designed to be an interactive and adaptive combination of
change techniques. The following key characteristics are identified for it:-
STRUCTURAL COMPONENTS
A. Initial Change Coalition or Individual
B. Organizational Stakeholders and Management
C. Supporting groups
D. Obstructing groups
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BENEFITS AND DIFFERENTIATORS

1. Reduces informal methods in a change attempt, introducing optimum
levels of formal mechanisms for management.
2. The method implies that by default, Interventions must be introduced
at some point in the lifecycle of a concerted effort for change.
3. It involves the following success factors-
a. Timely action being a critical success factor for an effective
change, the method places a time constraint on the change
attempt based on which the conflict cannot be prolonged.
b. Management involvement- another success factor is also
introduced, by actively involving the stakeholder(s) and
Management at critical points.
c. Effectiveness of management process/method being applied
figures as the third success factor.
4. By participating in change attempts, the Organization is able to grow
and improve its formal systems and processes including decision
making.
5. Involves application of objective techniques through unbiased
assessments.
6. Value and benefit to organization are important factors in Decision
making; so are the contributions, performance and merit of change
agents- those making an effort for change/reward.
7. Designed as a lean process that minimizes time and resource wastage;
under-management and indefinite conflicts are avoided.
8. Demands higher activity and diligence from main participants as
follows.
i. The Coalition or Individual must actively make constructive efforts
for the change/reward.
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ii. Organizational stakeholders would typically include concerned
levels of Management. They must periodically assess the situation
to determine if it merits Change Intervention and then provide it in
meritorious cases.
iii. Other participants are- Supporting and obstructing groups that may
be formal or informal, internal or external.
iv. This configuration should of course be compliant with standards,
rules and regulations.
v. Participant groups play secondary roles in supporting or impeding
the change attempt.
vi. It is not expected to be a static system as coalitions can grow or
contract; and secondary groups may undergo changes. In a
progressive scenario, support groups are likely to grow.
FIGURE 24 CHANGE ATTEMPT SCENARIO
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TABLE 13 MERITS OF GUIDED OBJECTIVE INTERVENTION IN A CONFLICT SITUATION
Unguided Change Attempt through Guided Objective Intervention

Informal Methods
Change attempts caught up in positive Guided-Objective Intervention methods

conflicts or potentially functional enable the organization to enhance the
conflict situations play a significant role positive effects and optimize its goal(s),
in the organization and also in the without suppressing or ignoring these
external business environment conflicts
Can continue indefinitely Places time constraint for effective

resolution
No Management involvement Improves quality and decision making by

involving the Management
May bypass formal change mechanisms Assessment and intervention must exercise
in the company best practices, organizational processes and
formal change mechanisms
The situation may wind down into a Places optimal checks and controls on the
stagnant state or in rare cases, spiral situation while allowing progress.
into uncontrollable, disruptive states
Lack of organizational support can lead Management involvement will ensure that
to discouraging the growth and any ideas and contributions forwarded by
innovation potential in the group trying group members in course of this process are
for change. duly recognized and encouraged, not
suppressed.
Organizational stakeholders may not act Stakeholders are forced to act and make
or may remain indecisive on a matter decisions on outcome(s) based on a
indefinitely formalized schedule. This drastically reduces
bureaucratic and autocratic inertia.
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INTERVENTION PROCESS STEPS

i. We start by examining similar dynamics in the unguided situation- the
change initiator(s) having failed at an initial change attempt due to strong
resistance in the organization then enter a functional conflict. S/he may
form a change coalition. Secondary supporting and obstructing groups may
enter at this point or later.
ii. The conflict involves the individual or coalition pushing forward, logically
arguing and exerting influences to enable the change. Initially some or all
the Organization stakeholders push back against the change, finding
logical arguments and driving influences against it.
iii. Guided Objective Intervention starts at this point. The organization takes a
continuous observation and monitoring stance; and conducts interactive
short assessments of the situation based on best practices. The initial
objective is to check for intervention feasibility.
iv. Assessment points are scheduled based on a planned schedule or at signs
of progress in the group’s efforts. An assessment is expected to be brief
but accurate and should take up minimal time and resources.
v. The organization may find based on valid assessment criteria that the
situation, though working to benefit the environment, is still not ready for
intervention. So it is deferred; the conflict is allowed to resume and the
monitoring/ observation phase also resumes until the next assessment.
The coalition gets post-assessment feedback that it may use to adjust its
tactics, and improve the quality of its effort.
vi. Else, instead of v. if the conflict passes assessment, it gets the green signal
for an intervention to be conducted.
vii. Else, instead of v. if the conflict is evidently sub-standard and a waste of
resources, the coalition is asked to conclude the conflict based on valid
reasons.
viii. Having entered the intervention phase, this would include steps to check
the value and feasibility of the change in detail, applying the required
expertise and authority to make objective decisions for or against.
ix. In meritorious cases the intervention will enable decisions based on which
the change/reward can be implemented.
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x. In the sub-standard ‘fail’ case the intervention will not permit the change.
It may instead provide counseling, or training to raise the standards to
required levels.
xi. Unlike previous scenarios in which a conflict can continue indefinitely, here
the organization must compulsorily, at some point—either a. reward or b.
conclude the conflict and in either case, conduct a formal assessment
applying objective management techniques.
a. “Reward” would be in the form of positive reinforcement. The
coalition will get an intervention to decide whether not the
change goal(s) should be satisfied.
b. In certain cases the conflict may continue even after the change
goal(s) are implemented through intervention, providing all key
participants agree. For example, a few group members work well,
and pass the assessment while others are sub-standard. The
former get their change goal(s) implemented through
intervention; while the others revert back to trying for it.
c. Concluding it would end the conflict entirely.
xii. The method does accommodate the possibility of an individual initiating
the change attempt. Though not a coalition at the start, the individual may
gather support at a later stage. Therefore,
a. Some or all phases including the intervention can involve only one
person agitating for change.
b. Assessment and decision criteria should not be based on whether
it is an individual or a group, but on the value provided by the
group/individual and benefits of the proposed change.
xiii. The process is not isolated and can interface with other existing processes
in the organization. For example, intervention starts by providing
counseling sessions then connects to the existing Training function; and
routes back into the intervention to assess post-training results.
xiv. Refer Lifecycle of the Guided Objective Intervention©.
xv. In case of Coalition formation, this intervention method may also be
termed Coalition-Intervention in work and business environments.
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FIGURE 25 LIFECYCLE OF GUIDED OBJECTIVE INTERVENTION©
xvi. Refer the Appendix for Case Example III – Guided Objective
Intervention that demonstrates the real world application of the
Guided Objective Intervention to effecting a positive change.
a. Note that while Case Example III was previously resolved
through an Active Decision Process, that dealt with a scenario
where the candidate had passed the first round of situation
assessment.
b. What if the candidate did not pass based on existing standards,
but still demonstrated substantial merit? That is an alternate
path considered in the Intervention problem.
As we can see, this method provides a constructive alternative to the

“Shoot the horse, or let it die!” tactics that we occasionally find in the
corporate world.
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Q1. Are you saying it is wrong for people to “play”? In most parts of the
corporate world, that is how people work! That’s how things get done. It
is considered a normal part of work behavior. How can you change that?
We agree that “playing” is standard behavior in the corporate world.
We all play harder for change, growth or reward. However,
management must realize that “play tactics” have their place.
Making people “play” through their problems is not the answer to
every situation.
When people work there will be abnormal situations, imbalances,
conflicts and crisis. So when the play goes wrong, as it will at some
point—leading to excessive conflict and imbalances; in other words,
when it’s not working anymore- is the Management prepared to deal
with it?
Management techniques are definitely required in modern work and
business environments- To diagnose such problems; intervene if
required; and restore the balance with active controls. Provided
these methods are available in a given environment, we agree that
play tactics can work well.
SUMMARY
At the end of an entire chapter on Change mechanisms, we risk spoiling
the show by pointing out some contradictory arguments- just to place the
whole Change issue in perspective.
For all the endless hype surrounding that formidable buzzword-
Change! We know there are situations where in-depth or extensive
Organizational Change is not required at all. Over the years, Management
thought has built up the prospect of Change to such great heights- that
people remain in perpetual awe.
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Management hesitates to implement it, even for situations that
require only micro-level or mid-level changes. But this mindset only
makes it more difficult for people to get things done!
This is where accurate Situation Analysis and Decision techniques can
help identify where the change is required, what type and on what scale.
And even when required – may not always involve advanced
Management solutions. This type of scenario was discussed under
Workarounds and Natural Responses, though we do recommend that
active techniques be exercised in parallel. There are other situations
where incremental improvement may prove more effective than
specialized solutions.
In many cases- there will be Change Attempts that trigger a series of
events; and at some point the Organization must take a constructive
view. Suitable Management initiatives taken at critical points will
determine the outcomes- does this path lead to prolonged waste of time
and effort, unnecessary political behavior, and unfair methods of play?
Or, to higher and better working conditions made possible through
intelligent management initiatives?
A flexible approach to enabling the best outcome when faced with
change attempts- was provided in this chapter that we defined as Guided
Objective Intervention.
The current approach seeks to implement change as a toolbox of
practical methods available to a Management level resource. The
Manager, conditioned to think objectively, can implement them to
address specific problems and situations- in time and on-demand.
Having reached the end of our Solutions chapters, the reader is now
advised to refer to the following table- a checklist that suggests the most
suitable prescriptive solution for a given work situation or problem at
various levels.
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TABLE 14 WORK ENVIRONMENT PROBLEMS VS. SOLUTIONS
Level(s) Problem Management Solution –

Method/Technique
Individual, Repetitive Patterns in The view is that constructive resolution

Group Events and Situations is possible as a result of individual
motivation to improve; but
organization(s) also have a role to play
in response to efforts by the individual
or group.
This concerns situations
where people get locked Solutions would involve a combination
into the same negative of change interventions, situation
patterns and keep facing analysis and active decision making as
frustrating situations in listed below-
their career that tend to
repeat themselves. - Individual Coping mechanisms
- Individual and Group Change
Attempts
- Situation Analysis to diagnose
negative patterns
- Interventions and Active Decision
making by concerned authorities
- Positive reinforcement should be
provided
- Active Decision Process to devise
solution strategies
- Activities and behavior may need
to be altered in tangible ways.
Work Type D - Environment is Requires management techniques to

Environment dynamic, energetic, self- gauge work environment conditions
driven and transition out of dysfunctional
states
Dysfunctional mode-
volatile, unstable, - Monitoring and observation to
turbulent, uncontrollable detect Dysfunctional states
- Active Controls to rectify
Dysfunctional states
- Interventions involving Situation
Analysis are an option
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Level(s) Problem Management Solution –
Method/Technique
Work Type S - Environment is Requires management techniques to

Environment disciplined, structured, gauge work environment conditions
organized and transition out of dysfunctional
states
Dysfunctional mode-
High Inertia, Passive - Interventions to understand
decisions Dysfunctional States
- Corrective measures may involve
Active Decision Process
Work Subjective and biased - Situation Analysis to diagnose

Environment, Decisions problems in Decision making
Team
- Objective Decision Review (ODR)
with Active Decision making
Work Prolonged Gridlocks with - Interventions to locate problems in

Environment, no clear direction or management process/system
Team guidance on problem
resolution - Situation Assessment and Analysis
- Corrective measures may involve a

combination of techniques
including Active Decision Process
Organization, We need to determine- If a - Situation Assessment and Analysis

Team particular situation is with Forecast/ Projections
headed in the right
direction with regard to
people practices?
This involves a Verification

step
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13
INNOVATION CYCLES
More than ever, theoretical Management seems out of sync with actual
work practices. You read a brilliant Management book that seems to
have all the answers for a better career; or, you hear about brave new
things being done in Newspapers and Management Conferences; but
then you go back to work and face a reality that is very different.
What are the factors that stand in the way of efficient adoption of new
management ideas and practices- first, for improvement purposes and
second, for innovation? Factors that work against efficient application of
management practices were discussed in previous chapters. Adoption of
new practices is another challenge that must be analyzed separately.
THE IMPROVEMENT CYCLE

There are situations that require small to mid-scale improvements. Let’s
say, you have a serious problem at work. Resolution of it requires some
improvement to be made at the management level.
A genuine problem or issue should of course be dealt with. Even if no
known methods are available and there is no historical precedent to fall
back on, it befits the company to find new ways to improve a situation
and rectify the problem. As discussed in the quality view, continuous
improvement should work inclusive of management practices.
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If the organization environment allows an improvement to be made,

it’s a positive sign. If not, we may either shrug it off; or see yet another
change attempt. We have examined previously, how the nodal
authorities responsible for decision making should take timely action in
such situations.
In an alternate scenario, it could be that you- an employee/
professional, have a really wonderful idea or concept that you want to
apply in your company or industry. Note, this is an idea for improvement
in Management. This could be a new business model, or maybe the
design for an industry-level Placement process.
You take it to your superiors and/or any authorities you know, and
hope that it will trigger some action. At that point, there may be
legitimate reasons why the concerned organization does not have the
bandwidth to incorporate it. The most obvious being- the idea is not
relevant, and not required in the given environment. It may be
incompatible with their organizational culture and objectives.
Another reason is the perceived “risk” factor. It could be viewed as
interference to work routines and existing practices. And we agree that it
may not be possible to introduce new management ideas beyond a
certain limit. The stability of work and business-focused practices will
usually take priority.
But here’s a reason that’s clearly invalid- the company does not have
formal methods to examine or adopt the idea, and therefore it gets
rejected based on subjective opinions, mental blocks and stigmas! This is
a dysfunctional state, as methods for objective evaluation of a new idea
should be available. (Of course, it does pose a resource challenge in
terms of people management for certain segments, where there is no
dedicated “R&D department” to screen a management idea.)
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Nevertheless, organizations should have formal methods in place to

examine an idea and process it further. It is important for HRM
authorities to be open to new ideas, though it may not seem politically
correct to start with. In course of absorbing new ideas, it is equally
important to apply fair methods, giving due credit to the initiators or
change agents behind an idea for improvement.
What if the organization does take up the idea but not in the right
way? Another distinctly dysfunctional situation arises, if it gets
implemented only for some people in the organization, while some
others are left out. We could be looking at a failure mode with steep
variations!
Recognizing the worth of management improvement and innovation
in Policy Formulation- this will make it convenient for the organization to
develop these requirements as part of management methods, and
respond efficiently to new ideas.
At the end of this discussion, we may be left with a potentially
constructive concept/idea in management, but it’s going nowhere! Let’s
say, Organizations in the immediate vicinity are not interested in taking it
up.
So what do you do? You’re not exactly positioned for the high-tech
Startup scene! And doing a Ph.D. just to float your management idea is a
bit of a stretch!
The above points reveal constraints that can work against absorbing
new ideas and solutions for management improvement. The supply chain
for new Management ideas and improvements may hit several road
blocks in terms of efficient absorption and adoption. And this is where we
require an Innovation cycle for management practices.
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THE MANAGEMENT ADOPTION CYCLE

Looking briefly at the adoption life cycle for Management concepts, we
see that many practices and techniques evolved by just “happening” at
work, and gaining popularity as they proved to be successful. Then as
they entered the mainstream they were gradually institutionalized and
standardized in more places.
We see that it often starts with an Innovation cycle intrinsic to the
company- that in certain cases expands to a wider scale. There could be a
promotional phase of raising awareness of that practice at industry level;
followed by adoption in other companies; and then as one would hope-
actual application to problems.
There are also Adaptation cycles at work here, where it is necessary
to take a Management concept and adapt it to fit a particular
organization, environment, industry and other application parameters.
It is important to note that adoption rates for Technology ideas tend
to be faster, and these days, also optimized. In comparison, successful
Management ideas are formulated
and institutionalized over a longer time
frame.
In general, we observe that the
time between the first innovation and
its adoption in the mainstream as an
industry standard, has been longer for
management practices. The Principles
of Lean Management that originated
with lean manufacturing in the Toyota Production System (TPS) in the
1930’s (some concepts a few years earlier or later) - saw waves of
popularity in the 1980’s and 1990’s as it entered the mainstream.
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How fast a management concept is implemented in Industry has

largely depended on raising awareness through Publications, Books, and
Conferences. And it often takes a series of waves to popularize and evolve
these concepts.
Important as these methods are, we need still more standardized
processes to enable improvement or innovation on demand. We need
Industry-level solutions to accelerate adoption rates of Management
ideas and practices. Ideas that may not be as big as Lean, but do have
practical value.
THE EXTERNAL ENVIRONMENT

In the external environment, we do find pockets of advanced
Management knowledge and development. Academic and Research
Institutes are known to collaborate with Industry on various projects.
There are highly influential HRM and People Management
Organizations and Networks that generate waves around prominent
management ideas and concepts.
These high profile HRM Platforms i.e. Conferences and forums-- are
probably among the more effective mechanisms that exist today. They
support the absorption of management practices in Industry; and
facilitate the exchange and dissemination of HR knowledge among
participant groups.
THE ROLE OF LEADERSHIP

HR Conferences are no doubt a progressive trend, but we would like the
Business Leaders and HR Leaders to walk the talk- maybe another cliché,
but an imperative in this field. Let’s keep in mind that it’s relatively easy
in HRM and People Management, to talk about it and do nothing more.
(Just as it’s easy to write about it, and leave it at that!).
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While the Leadership must talk about visionary concepts in order to

motivate, build momentum and raise awareness, there needs to be a
commitment to have it implemented as well.
It’s also about management ideas and theories being left to float at
the top! As we know, there are progressive Management ideas being
forwarded by experts from industry and academia. These do need to be
implemented on the work floor, applied for people who deserve it and in
situations that require it.
THE NEED FOR MANAGEMENT INNOVATION

Since the IT revolution in the 1990’s and High Tech innovation cycles that
followed into the 21st century, the complexity of processes, services and
infrastructure surrounding the “Tech” growth pockets has jumped
dramatically.
In contrast, Management theory and practice has lagged in several
areas, creating a need to understand and develop Management solutions
to approach the level of advancement in Science & Technology.
o Management concepts and paradigms that formed the basics

of applied Management in the 20th century will- in many
cases, no longer serve the purpose!
o New ideas and thought processes are required to meet the
21st century challenges. (A point previously brought up by this
author in a 2007 online publication “Clinical Decisions in
People Management”).
o Unless the above discrepancy is addressed, increasing gaps
between Management and other growth areas will create a
web of tangible problems.
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Bottlenecks in the talent supply chain and under-utilization of

manpower, talent and skills; lack of effective placement techniques; lack
of verifiable checks to stabilize uncontrollable and dysfunctional work
environments; lack of change techniques to enable growth and
innovation; continued over-dependence on archaic management
practices; and sub-optimal decision making.
These are but a few examples that come with a potential loss of 20-
30% in workplace productivity. A situation in direct contrast to
organizations that are savvy in advanced Management solutions, and
prepared to apply them!
THE INNOVATION CYCLE

Many organizations have intrinsic innovation processes, a progressive
trend. The view is that added focus is required to develop Management
solutions in the external environment. This would enable Management
solutions to be made available to companies based on standardized
cycles.
We now outline the challenges and opportunities ahead, on the path
to Management Innovation. In Solutions we explore possibilities at a
generic level. As these are Industry level initiatives requiring
collaboration among different stakeholder groups, a study and
assessment will be required to arrive at more focused conclusions.
CHALLENGES
 The mainstream approach to HRM and People Management has
limited scope for critical, offbeat or “out-of-the-box” thinking. In
companies, work-related concerns take precedence.
 We need to develop and optimize processes for efficient adoption
of management practices; and allow for innovation in parallel.
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OPPORTUNITIES
 Formalized methods that support efficient innovation cycles- are
required to develop solutions in People Management, as well as
other areas of Management.
 Where innovation is not immediately relevant to the workforce
in organizations, it should be undertaken in parallel, and
externally.
 Added focus on management innovation at Industry level can
support companies in their demand for Management solutions
that arise in the course of their business.
 Network-based initiatives e.g. Conferences and Events should in
general be open to new ideas and less insular. In this regard we
require Platforms for ideas exchange that can accommodate a
more “experimental” approach.
 Management ideas can provide exciting opportunities for
entrepreneurship!
SOLUTIONS
 Networks that can evolve as sub-systems and work as innovation
hubs. Functioning alongside or as part of the mainstream
networks we brought up earlier, they will provide alternate
platforms of a more innovative and “experimental” nature.
 The main net and sub-networks reinforce each other to increase
the effectiveness of ideas and solutions in their respective
geography and industry.
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 The Figure - Management Practices Innovation is a snapshot of

concerned parties that would be involved in a typical “innovation
process” though it would vary in different cases. Only a skeletal
view at this point, but it should illustrate the importance of a
well-connected innovation hub.
1
Not discounting the possibility that configurations of this type may exist, or
exist in part. In which case, this view corroborates their role as Innovation Hubs.
Client/
Organizations
and Industry
Mgmt
Management
Research/
Consulting
Educational
Firm
Institution
Mgmt
Innovation Sub
Network
HRM/ PM HRM/ PM
Network or Expert
Organization
Management
Idea
(Initiator)
Figure 26 Management Practices Innovation Hub
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14
THE FUTURE MANAGER

We are about to go wandering into Sci-Fi territory, but not too far! The
idea is to get some futuristic concepts in science and hi-tech together
(currently being written about, but still in R&D and not gone mainstream
yet), and see how it can work for people management (with some “new
new” creative extrapolation from our side)!
In the year 2000, the author wrote a Business Plan for applying Artificial
Intelligence (AI) software for troubleshooting in IT and Business
environments. Later in 2009, submitted a write-up on the application of
Intelligent Software Agents (ISA) working in Human Resources and People
Management to support managerial decision-making. In the same spirit
of adventure we now delve into some more exciting possibilities- let’s see
how far we can throw!
Device s for Brain Map ping and Measurem en t
The first Idea concerns a new application area for emerging technology-
devices related to mapping and measuring brain activity. Currently, rapid
advances are being made in devices to understand brain functions and to
measure brain activity and impulses. Now…Where do we see this being
applied in Management?
249 | P a g e
 Decisions, of course! Digitally deconstructing a decision to enable

real-time analysis. It can help us see whether a decision is made of
logical or emotional components, providing more specific and
quantitative measures to analyze decisions.
We’d still need a technique like ODR to process the results of decision
“mapping”, but have more tangible scientific data to guide us.
Intel l i gent Sof tw are and Roboti c A gent s
The definition of Intelligent Software Agents (ISA) or “Intelligent Agent”

applied here is that of complex software to automate and assist the tasks
and thought process in a selected area. It would be capable of problem-
solving, reasoning and information processing; and would possess the
general features of an Intelligent Agent which is- goal-oriented, reactive
and autonomous behavior, along with persistence and collaboration.
This is an area with growing specializations, and we can expect to
find Intelligent Agents with “expertise” of different kinds- from intelligent
software to robots. This software may be in addition to or an alternate to
Artificial Intelligence (AI). It could form part of a Distributed Multi-Agent
system with motor and sensory capabilities to interact with the
environment. Based on existing classification of autonomous agents,
there are Robotic Agents; in contrast to ISA’s that are recognized as
Computational Agents.
We get into “Robot” ground as intelligent agents become
“mechanical or virtual”, typically engaged in automatically operated
mechanical or electro-mechanical activity. Popular definitions recognize
robots as “machines that perform tasks to replace human effort”, the
tasks being repetitive and complex. On the other hand, Agents that exist
only in software form- are referred to as Bots.
250 | P a g e
Future-Tech for People Management
Automation of human activity and thought processes is evolving rapidly.

Various categories of Intelligent Software Agents have been recognized
and implemented- ranging from Chess players; to internet bots for web
shopping and other “virtual assistants”. One can expect Software Agent
technology to grow significantly in complexity and application.
The potential benefits of Intelligent Agents are now being written
about extensively. Their immense value for information gathering and
analysis in the face of rising information overload is gaining attention.
This author had highlighted the use of Expert Systems as IT diagnostic
aids for troubleshooting, in 2000.
While that scenario required a knowledge base to be created for it,
now we can see next-gen decision support systems that dynamically
maintain their own knowledge! These agents would explore the
environment, gather required information from various sources, creating
and maintaining their knowledge base as inputs for decisions making.
We regard Self-searching bots as one such category with practical
application in simpler forms e.g. web crawlers for information gathering.
There are also self-learning bots out there.
We envision a more advanced version of the above, as in
Troubleshooting Bots©. This robot will “machine learn” its way through
an entire application, system or process- absorbing the information that
exists in various forms- i.e. code, the help manuals, issues logs. These
agents will organize their knowledge in suitable formats, and then be
able to diagnose and troubleshoot any problem in and around that
application! It will be dynamic, so if any changes occur in the
environment it can self-update.
251 | P a g e
And if you’re wondering where people management comes into all

this, it does- as we explain presently.
When it comes to People Management, a Software Agent-Enabled
System is still a new concept for IT. Current HR Management systems are
not “intelligent agents”, are not autonomous or reactive. But in future,
ISA-enabling selected HR and People Management functions in work
places can prove to be extremely effective and efficient.
We see Intelligent Software Agents being applied in new areas-- to
support managerial decision-making and related functions e.g. situation
analysis.
Take the troubleshooting robot- HR and People Management
process/ methods need troubleshooting just like IT applications. The type
of decision models and information sources would differ in people
management situations. Instead of coded software, the knowledge would
be extracted from documented policies, standards, best practices,
operating guidelines and rules.
In fact, any data related to the working of a management process/
method, including information extracted from the work environment
including team states, can be recorded.
When an issue is logged, the Troubleshooting Bots© will model the
problem and analyze the situation objectively, using background
knowledge as a reference. Thus it “runs” the situation- which may be
modeled as a pattern of events, through rule sets and models to see if it
fits in with established rules and standards! Even Ethical models and
other best practice models could be accommodated.
In this context, the Objective Situation Analysis algorithm outlined
previously can be programmed into bots that specialize in- Situation
Analysis!
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Principles of HR, Management, Organizational behavior, Computer

Science, Robotics, AI, Cognitive Science, and Psychology should be
applied to devise objective techniques and models for decision-making
and evaluation. Many techniques are already being implemented, but in
pockets. This exercise would combine them into well-defined
comprehensive methods to program the ISA technology.
Robot Managers
Robots are being designed to take on increasingly complicated human

tasks, e.g. they can perform surgery, security and military operations;
there are housekeeping and domestic robots. Internet Bots are being
used for many purposes such as Search
and Gaming.
But it may still sound incongruous to
apply Robotic Agents in a people-centric
role. Isn’t people management
supposedly based on human
understanding, personality and
emotional factors? How could a robot
replace that? Or, is people management
“automatable” too?
The possible uses of Robots in the workplace are being speculated on
with some intellectual curiosity but also skepticism, as one might expect.
The view forwarded here is that where people management suffers
from being subjective and biased, Robots can of course guarantee 100%
objectivity. As argued previously, real-time decisions tend to have
unspecified and irrational components, whereas Robots can make 100%
objective decisions.
253 | P a g e
We see them adding practical value –as Assistant Managers, helping

Managers with a host of activities. In the next few decades, we would like
to see Objective Robotic Aids having practical application to support
Managerial tasks such as Decision Making. Given the event and
environment information, the Manager Assistant- ISA then taps into its
knowledge base and rules, acting as an objective aid to human
management, assessment and decision processing.
It would incorporate learning and behavior-based agent technology
to continuously study and analyze human Management practices i.e. it
enables adaptive management in the real sense. This way the Human and
Robotic Agent iteratively reinforce each other’s standards. The result is
more accurate and reliable decisions and situation analysis.
However, there could be other areas where robots play the main role
as “managers”. After all, the more technical an environment, the more
easily the robot can take over. Industrial Robots are just one example,
where a whole assembly line is under robot management.
Objective decision support and Industrial/Technical roles aside, the
popular notion is that mankind will enter advanced phases where
machines start thinking “human”, which means robots can think
objectively and subjectively with psychological aspects. Even now, we see
fuzzy logic being incorporated into robot thinking- an initial step. More
exciting possibilities will be realized in the distant future.
Humanistic touches in robot technology bring up the topic of
Emotion-based sensors and effectors. Would you like having robots that
detect your emotions, and offer solutions to deal with problems such as
stress or other negative emotions?
As we all know, Biometric high-tech is set to play a major role in
office environments!
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Neuroscienc e and Ma nagement Psychology
Models for mapping the thought process and understanding behavior are
mostly descriptive. Current initiatives are aimed at gaining a complete
understanding of how this works in terms of brain functions. In future, we
think advances in Neuroscience and related
Medical fields will have such a complete
picture, that it will be possible to control
and optimize neurological processes. The
mechanics of Logical reasoning, creativity,
problem-solving and other types of thinking
will be de-mystified.
We don’t view control of brain functions as an oppressive tactic
provided the objectives and methods are ethical. As medical experts
would know, this is about progressive techniques- let’s say, you are a
creative person but when depressed, the creativity inexplicably dims. So
how about safely therapeutic methods that invoke Creativity on demand?
We discussed psychological side-effects briefly in a previous chapter,
in some cases caused by negative working conditions. Problems can
range from feelings of demoralization and stress induced anxiety to
severe burnout. As stated previously, it should not be left entirely for
coping mechanisms to resolve.
Neuroscience links behavior to brain function and this should lead to
a better understanding of individual and group behavior. Of course,
decoding workplace behavior may involve aspects of advanced
Psychology in addition to scientific insights.
So, the day will come when they can program our neural circuits to
think smarter and faster, neatly controlling our stress and emotions, and
this tech will be accessible to us all….Right?!
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High-Tech for Virtual Management
We discussed Selection, Hiring and Placement as functions that require

solutions, identifying them as areas where Management and Technology
advancement should be applied. A few more thoughts in this direction-
 High-Tech and better Infrastructure will make virtual Job Fairs and
online hiring even more popular; but let’s hope virtual decision
making can keep pace!
 The importance of Virtual People Management- Managing people
in cyber workspaces- should not be under-estimated. In fact, it
would be interesting to see it spawn a new sub-category of people
management practices- for virtual and distributed workspaces!
 Robust IT Applications for Recruitment/ Placement that enable
recruiters to handle 1000+ job applications and other heavy-duty
scenarios. © We mark this as a critical area that will only grow
more complex with time!
SUMMARY
Looking through a Futuristic lens we considered some exciting
possibilities where Science and Technology can add value to People
Management. As expected, amazing results can be achieved through
Science and Tech.
It should not however, be inferred that futuristic Technology can do it all,
and Management takes a backseat once again! Developing an intelligent
Management approach should be the first step. Management techniques
in selected areas will then prepare the ground to apply Science and High-
Tech innovations- in positive ways, and for greater benefit.
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REFERENCES
1. Decision Analysis (Wikipedia)
HTTP://EN.WIKIPEDIA.ORG/WIKI/DECISION_ANALYSIS
2. Rational Decision Making in Business Organizations (Herbert A.

Simon) The American Economic Review, Sep. 1979
3. Quantitative Techniques for Managerial Decisions (U.K.

Srivastava, G.V.Shenoy, S.C. Sharma)
257 | P a g e
LIST OF COPYRIGHTED INFORMATION

1. Team State © and Team State Analysis ©
2. Objective Decision Review (ODR) ©
3. Active Decision Process ©
4. Influence in work environments-
a. Influence-driven Decisions ©
b. Optimal Influence Selection ©
5. Change Attempt ©
6. Guided Objective Intervention ©
7. E- Metric and Methodology ©
8. Passive Environmental Replication ©, Situational Replication ©
9. Troubleshooting Bot ©, Recruitment application for 1000+ ©
10. Integrated Methodology of Objective Management Techniques ©
11. Formal vs. Informal Methods in Management ©
Copyright © 2013 by Shubhadha Iyer. All Rights Reserved. Ideas in

People Management has been created, written and published by
Shubhadha Iyer. This applies to all terms and models that are
specifically indicated in this document as original and copyrighted
material.
Unauthorized Copying or Reproduction prohibited.
258 | P a g e
CONCEPTS PROMOTED BY AUTHOR IN

PREVIOUS PUBLICATIONS (2003-2014)
1. Active and Objective Decisions in Management (2007)
2. Importance of “People Entrepreneurship”, “Small-scale ventures”

(2007)
3. Specialized People Manager Role requirements © (2007)
4. Advanced Training for people management (2007)
5. Optimized Candidate Driven Placement © (2007- 2012)
6. Identification of need “to maintain healthy working conditions” for

people (2007)
7. Arguments against “followership” culture (2010-2012)
8. Artificial Intelligence (AI) software for troubleshooting in IT and

Business (2000); Platform for Industry Experts (2000) and other
Plans (2000-2002)
The above terms and concepts- that have relevance to the field of business/
management, have appeared as part of prior work created, written (emails/e-
books/blogs) and self-published online by Shubhadha Iyer spanning about 12
years (2003 to 2014). Also indicated is the year of (online) publication and/or
the time a concept was officially written about and promoted by the author in
the business community. In addition to writing, the author has aggressively
promoted and argued for the adoption of these concepts with a phase of
heightened activity between 2004- 2010.
259 | P a g e
APPENDIX
CASE EXAMPLE I - EFFECTIVENESS OF LEADERSHIP SELECTION
Candidate Objective Dynamic Evaluation of Eligibility
missed out Evaluation Leadership Potential- (Actual)
from Score (%) Result linked to Ei
Leadership Objective Situation Analysis
Program (I) (II) (E= I + T)
Supporting Impeding Total
(+) (-) (T)
a 80 5 -2 3 80% +
3 (Supporting)
b 50 N
c 45 N
d 60 N
e 72 3 -3 0 72%
Average Error= 30.4%
S ELECTION P ROCESS R ULES
- Objective Evaluation Score (I) in the above table is calculated based on

Rule-based criteria (see next section: Rules for Objective Evaluation
component)
- If Objective Evaluation Score >= 70% from above, the candidate is moved
to second phase of selection which is to determine- Has the candidate
demonstrated outstanding Leadership potential?
- Eligibility in the above table is a composite based on Objective Score and

the result from evaluation of Leadership potential.
260 | P a g e
D YNAMIC E VALUATION – S UPPORTING AND I MPEDING O BSERVATIONS
Supporting/ Impeding Observations for Criteria Leadership Ability
Supporting (+) Rating Impeding (-) Rating
Candidate A was asked to

Candidate A initiated and volunteer for providing
organized Knowledge one-to-one mentoring for a
High Medium
Sharing sessions for the team new entrant last year, but
declined.
Candidate A presented a
White Paper in his area of
Medium
expertise at the Industry
Conference.
Candidate E has not taken

N/a
any leadership initiatives
Rating Scale based on Impact of Activity

4 Outstanding
3 High
2 Medium
1 Low
R ULES FOR O BJECTIVE E VALUATION COMPONENT

 If highest Education degree is Masters Level and/or PhD. then Experience
should be greater than 3 years; else if Education degree is Bachelors level
or Diploma then Experience should be greater than 5 years; Else candidate
is not considered.
 All Educational degrees should be from accredited institutes.
 All original documents pertaining to the above should be available on
request.
 Score = Marks from highest Education degree
 If Objective Score < 70% then candidate is not eligible.
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CASE EXAMPLE II - ODR SCORE CALCULATION
Total i = Weight Rules *(Objective rating) i + ∑ i
parameter Description
Total i Total score for a given candidate based on criteria

specified in Objective Assessment selection rules +
rating of criteria decided from ODR
Weight Rules Weight attached to Objective Assessment
Objective rating
Rating associated to the Objective score
Weight Weight attached to each Criteria outside of objective
assessment arrived at through decision review (ODR)
rating i Rating of each candidate i following decision review
(ODR)
EXPLANATION FOR ODR REVIEW SESSION

Refer Case Example II - ODR Review Session
 The decision maker asks questions to examine his/her own decision, followed
by the Responder who will answer it or probe further, seeking further
clarification from the decision maker.
 In a DIY ODR- the questioner and responder refer to the same person
subjecting a decision to a critical review. In other cases, this represents a more
structured Q&A dialogue between the decision maker and a guide/ facilitator.
 The Table should be read from left to right for each row, as the question is
asked, then clarified, followed by quantitative ratings for weight, factuality and
relevance assigned or modified for the identified criterion.
262 | P a g e
CASE EXAMPLE II - ODR REVIEW SESSION
Question/ Clarification Response Criteria Weigh Factua Releva
t lity nce
Candidate was
shortlisted after
Why did I select this having passed the Selection
40 1 1
candidate? skills assessment and Rules
performance
appraisal.
So have the other

candidates in the
shortlist.
S/he is very popular

What other criteria did I in the team.
Popularity 30 1 1
apply? (Influence-based
Criteria)
Is Popularity a valid Not really. But s/he

reason for this selection? does come across as
a good team player,
Team Skills
What type of Personality and Team skills are
do they require for this a generally positive
role? (Motive/Criteria) trait.
How much importance Fairly important, next

Team Skills
did I give to Team skills? only to the objective 15 1 0.5
(Integration)
(Weight) score.
Correct. We should
consider Team skills
But popularity and team
separately for all
skills are different. Team
candidates, whereas Popularity 0 1 0
skills are relevant to this
popularity is not
role; not Popularity.
relevant in this
selection.
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Question/ Clarification Response Criteria Weig Factua Releva
ht lity nce
The other candidates

ranked below this one, True. We need to re-
have good team skills rate all the candidates
too, enough to get the based on their Team Team Skills 15 1 0.5
work done. Though not skills as we agree this
as popular. One of them is a valid criterion.
has a higher score.
I still like this

What other criteria did candidate the best.
Subjective
you apply? I don't like the others.
(Subjective criteria)
I generally like good
"players"; people who
On what basis is this
have built up a Subjective
like/ dislike?
network in the
company.
That could be a positive

trait for certain
So it is not a valid
requirements. But this
criterion in this
job role requires Subjective 0 0 0
selection. I should
individual contributors
discard this.
who can deliver results.
However, it should be
noted that- “good
In that case we should Business Skills
players” often have
include business skills
business savvy. This
as a required trait for (part of
particular candidate is 5 1 1
the job; and rate for Analytical
good in this regard and
this candidate as well reasoning
it may be a value add
as others. component)
for this project, given
the type of domain.
264 | P a g e
Question/ Clarification Response Criteria Weight Factuality Relevan
ce
Candidate is not
Why did I reject this
fitting into the Team skills 15 1 0.5
other candidate?
Team.
This team is known to

be slow with integrating True.
people.
The appraisal (selection

rules) revealed that s/he
is innovative, likes to
But there were other
provide solutions. S/he Selection
problems in this 40 1 1
does not fit in; but is a Rules
case.
good performer and
problem solver
(Contradiction)
In his/her previous
team this candidate
sent several Potentially
What problems? 15 1 1
complaints to the Disruptive
Project Manager,
mostly irrelevant.
When was that? Three years ago
We need innovative
thinkers on the new
project. There are
We will minimize
unexpected problems
this criterion to 5%
that need to be
as it has less
confronted quickly. Potentially
relevance to the 5 1 0.2
Considering the Disruptive
present selection.
candidate has not
(noted as a Negative
repeated the same
trait)
behavior, we should be
able to discard that
incident.
Let us also add Yes. Will rate

Innovation
Innovation potential as candidates based on
(part of
a valid criterion in the this as a relevant 10 1 1
Analytical
final list, which the criterion with weight
Reasoning)
objective testing did not. of 10%
265 | P a g e
CASE EXAMPLE II - DATA AND RESULTS (NO REVIEW)
Table I: Selection variables without Review
Decision Criteria (No Review) Finalized
Candidates
Rank
(based Percentile
Candidate on based on Other criteria (this is a grey
Objective Objective zone- not sure exactly
score) assessment what went into this)
a 1 100.00%
b 2 88.80% √
c 3 77.70%
d 4 66.60%
e 5 55.50% √
f 6 44.40% √
g 7 33.30%
h 8 22.20%
i 9 11.10%
j 10 0.00%
CASE EXAMPLE II – ODR POST REVIEW RESULTS

(Rating Scale below, Results Next Page)
Candidate Rating Scale

5 Excellent
4 Good
3 Adequate
2 Needs Improvement
1 Bad
266 | P a g e
Decision Criteria (Post ODR Review) Post-
Review
Rank Criteria Review
Weight % Percentile Objective
(based on Total Score
for Criteria based on
267 | P a g e
score Team Business Negative (J)
Candidate Objective (Weight) Objective Innovation Total
Skills skills traits
assessme Assessment (E)
nt) (Obj. Rating)
∑Weight*
40 Rating*40/100 15 10 5 5 (J+E)
rating/100
a 1 100% (5) 2.0 3 3 -1 0.7 2.70
b 2 88.8% (4) 1.6 3 3 0.75 2.35
c 3 77.7% (4) 1.6 2 1 -1 0.35 1.95
d 4 66.6% (3) 1.2 2 5 0.8 2.00
e 5 55.5% (3) 1.2 4 1 0.7 1.90
TABLE II ODR POST REVIEW RESULTS

f 6 44.4% (3) 1.2 3 2 4 0.85 2.05
g 7 33.3% (3) 1.2 2 2 0.5 1.70
h 8 22.2% (2) 0.8 2 2 0.5 1.30
i 9 11.1% (2) 0.8 4 1 0.7 1.50
j 10 0% (1) 0.4 3 2 0.65 1.05

CASE EXAMPLE III – ACTION DECISION - DECISION TABLE
FIGURE 27 DECISION TABLE FOR SELECTION

R&D Other
Skills Test R&D Interview Hire Rule
Initiatives Achievements
Pass with score Recommended Yes N/a Strong
>= 80%
Pass with score Recommended Yes N/a Strong
< 80%
Pass with score Recommended No Yes Moderate
< 80%
Pass with score Recommended No N/a Moderate
>= 80%
Pass with Any Not N/a N/a Rejected
score Recommended
Fail (score < N/a N/a N/a Rejected
20%)
CASE EXAMPLE III – GUIDED OBJECTIVE INTERVENTION

Step Case Example activity
Action/
(Action) Transfer the Resource A to the R&D department
Objective
Trigger Email sent by A to his Manager requesting a Transfer out of his department to R&D
Situation Quantitative evaluation of Supporting vs. Impeding factors-

Analysis and Result: Impeding factors are found to dominate the situation. The main
Assessment action to Transfer the candidate does not have the required support.
a. The Active Decision Process has assessed the situation and recommends
an Intervention, as an alternate solution.
b. Guided Objective intervention will be initiated with immediate effect.
c. The purpose is to –
Solution
a. Motivate the candidate
Formulation
b. Provide individual attention to enable career aspirations based
on a planned schedule.
c. Provide counseling and training in selected areas to build up
the candidate’s competencies.
268 | P a g e
Guided Objective Intervention – steps for Case Example III
i. HR Management holds a discussion to assess the situation with

department stakeholders. They learn about the candidate’s efforts over
the past few months to prove his aptitude in the preferred job role
(R&D).
ii. The next assessment session is between HR and other departments to
understand their viewpoint regarding the situation. Some stakeholders
indicate their disapproval of the candidate’s job change as well as
skepticism regarding the utility of the Transfer. The candidate’s current
department (IT) does not want to participate.
iii. HR concludes their initial assessment by providing clear feedback to
candidate A- the outcome is not positive. He has not proven his R&D
competencies conclusively; and the company expects him to continue
working in his current role.
Guided Objective Intervention
iv. The candidate is not discouraged. He volunteers to contribute on R&D

assignments to prove his superior aptitude. He is motivated, and
confident of providing outstanding value to the company.
v. The Management seem impressed with his can-do; they do not
discourage him but do not commit to any decision. He is told they will be
tracking his progress. In the meantime, he must continue performing in
his present role.
vi. HR and R&D Management set up a plan of action for candidate A, based
on which the candidate will be given work assignments from R&D to
allow him to prove his aptitude. R&D will also provide some guidance for
the candidate to improve his skills. His performance on these R&D tasks
will be considered in the forthcoming performance appraisal, along with
his routine work.
vii. Candidate A diligently pursues the discussed course of action. In the
following weeks he takes up R&D assignments, and does a good job;
while completing his routine work. He works hard to complete his varied
tasks from both departments.
viii. A few months later, HR suggests a second assessment session as part of
the Intervention program schedule, to both R&D and IT stakeholders.
R&D is ready to join the discussion but IT declines, once again. HR
proceeds to hold a formal assessment with available participants. Unable
to reach a decision since all stakeholders did not participate, after the
assessment they resume the monitoring and observation phase.
ix. Candidate A’s demonstrated motivation, dedication and continued
efforts to prove his potential for R&D work, his ongoing performance in
the current role, and related factors are tracked by Management.
x. A few months later, it is time for the year’s performance appraisal.
269 | P a g e
xi. Based on Management by Objectives (MBO) practices, candidate A has
to enter the key performance areas for his work tasks, ahead of goal
setting. He finds that unlike last year, now he has tangible cross-
functional work output to enter from R&D to his credit.
xii. HR Manager has time to conduct one more brief assessment as per their
plan. And this time, all stakeholders participate.
xiii. The collaboration between HR, R&D and IT had drastically improved over
the last few weeks following discussions. IT Management and HR have
agreed to launch a collaborative project to enhance the HRMS with new
modules for Career Planning and Career Development. And R&D was
able to enhance their Testing/ Assessment process to incorporate more
key skills.
xiv. All parties attend this assessment discussion, agreeing that based on the
data, the situation indicates significant progress. The plan of action is
decided. (In effect, assessment has given way to intervention).
xv. HR will initiate the Job Transfer Workflow. It will go through the required
IT, R&D and other approvals. Workflow decisions will take into account
Performance Appraisal results and cross-functional tasks.
xvi. The Performance Appraisal was held as planned and the decision
outcome for the job change request was provided at the end of it.
xvii. The candidate’s transfer is approved. Career Development measures will
include mapping out a career path and tracking his performance in the
new Job role, in-house training on relevant skills and job rotation if
required.
The Intervention cycle took eight months from initial planning to

Finish conclusion. The change attempt was regarded as successful, for all
concerned.
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This work is protected by Copyright Laws. Any unauthorized duplication or

On the bright side, these are challenges that present opportunities

Think of this as a handy practical toolbox that a Manager can

People management practices are found to permeate the entire

In-depth academic analysis or reference to research data is avoided

HIGH IMPACT FUNCTIONS

MANAGEMENT TECHNIQUES IN FOCUS

When it comes to Decision Making we observe that management

STANDARDS FOR PEOPLE MANAGEMENT

 We should further note that in the external environment,

THE INTENDED AUDIENCE?

TOUGH QUESTIONS FROM A CRITIC!

Q1. Why is the current focus on People Management of all areas?

As an extensible ‘superset’, this people management approach will

Q2. Here’s the confusion. “People-centric techniques” usually conjure up

Let us clarify that as the term “people management” implies, it’s

Consider the Organization vs. individual – While companies want to

Working conditions or work conditions as referred to in this book include

OB models generally follow the behavioral science approach. One could

KEY RESULT AREAS

Challenges include- role requirements, defining measurable standards

PEOPLE MANAGER ROLE REQUIREMENTS

CHALLENGES FOR THE WORK GROUP MANAGER

CHALLENGES IN THE MINDSET

With rapid cycles of Business restructuring, expansion and

CHALLENGES IN THE WORK ENVIRONMENT

Dysfunctional scenario: Low performance and productivity conditions (D1)

The main purpose of the model is to demonstrate the many levels of

As we know, Metrics are readily available in customer-focused areas;

The above is a simple approach to start with. As more specific criteria

THE MORE FAMILIAR CHALLENGES

We know that selection often goes beyond skills testing. Multiple

Therefore placement figures as a high impact HR function for

But there are fluctuations, and one hopes that variability in

The Placement Challenges outlined below are generic, but we note

When faced with the fundamental quality question- Can a talented

To summarize the discussion on Hiring, Selection and Placement-

CUSTOMIZING FOR ENVIRONMENTAL DEMANDS

Discrepancies are evident especially with informal tactics in business

Here USA and India- offer an interesting study in contrasting people

HEALTH AND PSYCHOLOGICAL SIDE EFFECTS

Situation assessment of a given work environment will definitely lead

OVERCOMING ORGANIZATIONAL INERTIA

In some cases, the standards and approach to people management

THE ENTREPRENEURSHIP CHALLENGE

Now for the main argument- Specialized Management solutions are

 Management techniques should be prepared to detect and

FORMAL VS. INFORMAL METHODS IN MANAGEMENT

TOUGH QUESTIONS FROM A CRITIC!

 “Lemming think” has its limits in modern management and that

o What are its dysfunctional modes and how should the

 This is about applying methods that detect the errors caused by

 We could design an elaborate scorecard or framework to improve

THE QUALITY VIEW

d. The process/ method is rigid and inflexible; does not

ASSUMPTIONS AND TYPES OF FAILURE

The failures examined here are generalized but comprehensive and

a. A few people who deserved promotions were repeatedly

A standard Risk Analysis performed on standards and specifications

To minimize d. invariably, discontinuities do occur in processes so one

Analysis should be extended to examine how each Management

Near to Medium term – Visible Failure Impact

Long term – Insidious Failure Impact

V OICE OF THE R ADICAL

SELF-MANAGED WORK GROUPS