Managing Business Through Human Psychology - “A Handbook for Entrepreneur” by Ashish Bhagoria - HTML preview

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Better Control through Psychology

Controlling is the process where the entrepreneur develops an effective control over the resources, workflow and quality. To implement control over the operations of the organization we have to develop a system. For effective control we must understand the human psychology when we control people. Human psychology accepts control but revolts against being ruled. We must make the team understand that the entrepreneur has to be in command of the system and doesn’t want to rule the people. Objective of control process is to get the desired results. The desired result becomes a challenge for the entrepreneur and the staff because they cannot understand how the desired result would come. Also it’s confusing for the staff to know, what is the expectation of the management? Therefore to make it easier for the staff to perform we must develop standards, formulations and benchmarks.

Human psychology works better when there is a comparison. Once there is comparison between two things, thinking process becomes fast and vision becomes clear. This brings clarity in thoughts and hence the result becomes measurable. For this we must set benchmark while assigning tasks. Through benchmarks we set the minimum acceptable level of the quality of work. This in turn makes it easier for the staff to work because then they can compare the work and would be able to set their targets.

To reach the benchmark we have to create standards within the process which should be measurable. By setting standards within the process we ensure that there is uniformity in execution of the work. This uniformity helps us in comparison and measuring the deviation between the desired result and actual output. When we observe deviation in output we know that the process has not been followed as per the standards. In case of deviation people usually get into blame game and arguments. But, when a process is developed using measurable standards, we can go back to review the whole process and trace the point where deviation from the accepted standards happened. This way instead of wasting time in blame game, we can focus on the root cause and rectify it from there. Since, we can trace the standard followed in every step of the process, controlling becomes better and easier. This process helps the staff to work better since they know the standards to be followed and also they can compare and evaluate their own work.

For example, when we have to get our house painted we have to choose a shade of color. Every time the painter manually mixes the colors with estimate to get the shade, we see deviations. But, nowadays paint companies have set standards and benchmarks and have come up with shade cards. All we have to do now is to choose the color code from the card that we want to paint on our house. To get the exact shade they have formulation for mixing the colors. So we get the exact same shade, every time when we need it.