CHAPTER 6 INTERPERSONAL SKILLS Managing human beings and their relationship is a major determinant of the success and failure

e of managers. Today, managing technologies has become much easier than managing people. Infact, people management is the greatest challenge that managers face today. A manager who is technically very competent but incompetent interpersonally is unlikely to succeed in the long run. People skills / soft skills have become supremely important for managers to successfully manage their organizations and do well in their careers. Soft skills for every hard-nosed professional Behavioural training experts say there are several soft skills are required in these circumstances. Some of them include: Interpersonal skills Team spirit Social grace Business etiquette Negotiation skills Behavioural traits such as attitude, motivation and time management Soft skills is a sociological term relating to a person's "EQ" (Emotional Intelligence Quotient), the cluster of personality traits, social graces, communication, language, personal habits, friendliness, and optimism that characterize relationships with other people. Soft skills complement hard skills (part of a person's IQ), which are the technical requirements of a job and many other activities. (Hard skills are specific, teachable abilities that may be required in a given context, such as a job or university application. A person's soft skill EQ is an important part of his or her individual contribution to the success of an organization. Particularly those organizations dealing with customers faceto-face are generally more successful if they train their staff to use these skills. Screening or training for personal habits or traits such as dependability and conscientiousness can yield significant return on investment for an organization. For this reason, soft skills are increasingly sought out by employers in addition to standard qualifications. It has been suggested that in a number of professions soft skills may be more important over the long term than technical skills. The legal profession is one example where the ability to deal with people effectively and politely, more than his or her mere technical skills, can determine the professional success of a lawyer.

People with good soft skills are able to:

Participate in a team Teach others Provide services Lead a team (leadership) Negotiate Unite a team amidst cultural differences Motivate Employ decision-making skills Employ problem-solving skills Engage with others Maintain meaningful conversation (discussion/debate) Build lasting relationships with diverse personality types

Hard skills are essential core skills that one needs to get the job done. Hard skills are also known as threshold skills or entry-level skills. Although, hard skills land us our first job, but soft skills help in building a career. Examples of hard skills include:

Work experience Educational skills Technical skills

Managers without adequate soft skills will struggle to retain both, customers and employees who are continually demanding more & more. Various Interpersonal Skills A. Negotiation: Negotiation is a process in which one party agrees to exchange a product or service with another party in return for something. Negotiations are common in day-to-day life. In an organizational context, the most common example of negotiations is that of collective bargaining between labor unions and management. Management may agree to increase the wages of workers by a certain amount on the condition that workers improve their productivity. Other examples of negotiations include the talks that take place between managers and subordinates, sales people and customers and purchasing professionals and suppliers.

Two widely used approaches to negotiation are distributive bargaining and integrative bargaining. Distributive Bargaining: This approach involves dividing a fixed amount of resources among negotiating parties. The significant feature of this method is that it operates under zero-sum condition if one of the parties to the negotiations gains a certain amount in the bargaining process, the other party suffers an equivalent loss. For e.g. when a purchasing officer of an organization is contacted by a raw material supplier, the supplier may quote a price, which is not acceptable to the purchaser. The purchaser will then negotiate with the supplier over the price. If the purchasing officer manages to reduce the price by Rs. 5 per kilogram, the supplier will have to forgo Rs. 5 per kilogram from his profits. Thus, this is a form of a win-lose or zero-sum situation for the purchasing officer and the supplier. Another example of distributive bargaining is that of labor management negotiations over wages. Since the total resources available to the organization are fixed, every additional rupee bargained for and obtained by the workers reduces the money available to the management for other uses. Therefore, each party bargains aggressively and treats the other party as a rival or competitor. Integrative Bargaining: This approach is based on the assumption that there exist one or more solutions to a problem that could result in a win-win situation. This is in contrast to the distributive bargaining approach, which assumes that there can be no solution that satisfies both parties and if one party has to win the other has to lose (Win-Lose situation). An integrative bargaining approach is always preferable to a distributive bargaining approach since it helps develop long-run relationships between the parties. The negotiation Process: (Students r required to explain all points given below properly in detail on their own. Not mentioned here in the notes in detail. Preparation and Planning

Defining Rules

Clarification and justification

Bargaining and problem solving

Closure and implementation 1) Preparation and Planning: Understand the nature and background of the conflict The circumstances that have led up to the negotiation situation Identify the goals that the negotiator wants to achieve for his party. Attempt to identify the goals that the other party is seeking to achieve through the process. Develop a strategy accordingly. 2) Defining Rules: After arriving with a strategy, define basic rules and procedure to be followed in the process In case of several members during the process, a leader is identified who will represent the process. The issues to be taken up and the time limit to be maintained should also be decided Strategy to be adopted in case there happens to be a deadlock over any issue. 3) Clarification and justification: After presenting the list of demands, both parties try to clarify their doubts if any with regards to demands. They may also present documents in support of their position. This stage, which involves the justification of their demands by both parties, is not necessarily confrontational. 4) Bargaining and problem solving: Be ready to listen to the opposite party. Understand their concern.

 Avoid using words and phrases that can aggravate the situation and make it difficult to resolve the conflict. 5) Closure and implementation: Both parties arrive at an agreement that is mutually acceptable. It is formally written and signed by both the parties. Implement the outcome. NEGOTIATION OUTCOMES / RESULTS Negotiation outcomes are sometimes favorable or unfavorable to the two opponents. Both the parties may lose, both may win, one of them may lose and the other one wins. Thus, the Negotiation can have four outcomes: 1. Win / Win:

Win / Win is a frame of mind and heart that constantly seeks mutual benefit in all human interactions. Win / Win means that agreements of solutions are mutually beneficial, mutually satisfying. With a win / Win situation, all parties feel good about the decision and committed to the action plan. Win / Win outcome sees life as a cooperative arena. Win / Win is a belief in the Third Alternative. It is not your way or my way; its better way, a higher way. 2. Win / Lose:

One alternative to Win / Win is Win / Lose, it says, If I Win, you lose. This approach is authoritarian approach in the organization, during solving of the Negotiations. I get my way, you dont get yours. People trying to solve the conflict using this approach are prone to use position, power, credentials, possessions, or personality to get their way. 3. Lose / Win: Some people are programmed the other way Lose / Win. I lose you Win. Negotiations solved this way, gives a way to the opposite person and the self looses here. 4. Lose / Lose: Here, both the parties are at lost. Both parties loose during solving of conflict. This situation arises generally when 2 people are determined, stubborn and egoinvested. Both side suffers lose. E.g. if an employee in the pharmaceutical organization who was the only one who knew an important formula is fired, not only the employee loses the job but the organization also loses an important employee. So, both sides emerge as losers. Strategies of a negotiator:

Depending on the level of concern the negotiator has for one's own outcomes and for the outcomes of others, the negotiator may adopt one of the following five strategies: (1) Compromising: This strategy aims at finding a middle ground. Often the person 'gives away something in exchange for something else. A person using this strategy has a moderate degree of concern for one's own interests and the interests of others. There is no clear outcome when this strategy is used. (2) Forcing: This is an aggressive and dominating strategy aimed at achieving one's personal goals at the expense of others. This style of conflict resolution reflects a high concern with one's own interests but low concern with the interests of others. (3) Avoiding: In this strategy the negotiator has little concern for one's outcomes as well as those of others. The individual physically and mentally withdraws from the conflict. This often results in a lose-lose outcome. (4) Smoothing: In this strategy the negotiator is more concerned with others outcomes than one's own outcomes. The participant does not mind giving the other side whatever they want. The negotiator deliberately seeks a solution that is beneficial to the other side even though it may not be in his best interests. (5) Confronting: In this strategy the negotiator participant faces the conflict head-on and aims at a solution that is mutually satisfactory. The negotiator strives to find a solution that is acceptable to both the parties. This strategy seeks to maximize the outcomes for both the sides. This strategy is also known as problem solving or integrating. B. Assertiveness: Are you a human doormat? Do you say "yes" when you mean "no"? Do you keep your opinions to yourself for fear of upsetting or starting an argument with others? Find out if you stand up for yourself as much as you should with this test. Assertiveness is the ability to formulate and communicate one's own thoughts, opinions and wishes in a clear, direct and non-aggressive way. Assertiveness is the ability to express ones feelings and assert ones rights while respecting the feelings and rights of others. Assertive communication is appropriately direct, open and honest, and clarifies ones needs to the other person. Assertiveness comes naturally to some, but is a skill that can be learned. People who have mastered the

skill of assertiveness are able to greatly reduce the level of interpersonal conflict in their lives, thereby reducing a major source of stress. How Does Assertiveness Compare to Other Behavior? Sometimes people confuse aggressiveness with assertiveness, seeing that both types of behavior involve standing up for ones rights and expressing ones needs. The key difference between the two styles is that individuals behaving assertively will express themselves in ways that respect the other person. They assume the best about people, respect themselves, and think win-win and try to compromise. In contrast, individuals behaving aggressively will tend to employ tactics that are disrespectful, manipulative, demeaning, or abusive. They make negative assumptions about the motives of others and think in retaliatory terms, or they dont think of the other persons point of view at all. They win at the expense of others, and create unnecessary conflict. What Are the Benefits of Assertiveness? Assertiveness affects many areas of life. Assertive people tend to have fewer conflicts in their dealings with others, which translates into much less stress in their lives. They get their needs met (which also means less stressing over unmet needs), and help others get their needs met, too. Having stronger, more supportive relationships virtually guarantees that, in a bind, they have people they can count on, which also helps with stress management, and even leads to a healthier body. Contrasting with this, aggressiveness tends to alienate others and create unnecessary stress. Those on the receiving end of aggressive behavior tend to feel attacked and often avoid the aggressive individual, understandably. Over time, people who behave aggressively tend to have a string of failed relationships and little social support, and they dont always understand that this is related to their own behavior. Ironically, they often feel like victims, too. Passive people aim to avoid conflict by avoiding communication about their needs and feelings, but this behavior damages relationships in the long run. They may feel like victims, but continue to avoid confrontation, becoming increasingly angry until, when they finally do say something, it comes out aggressively. The other party doesnt even know theres a problem until the formerly passive individual virtually explodes! This leads to hard feelings, weaker relationships, and more passivity. What Does Assertiveness Look Like? Here are some common scenarios, with examples of each style of behavior: Scenario A: Someone cuts in front of you at the supermarket.

An aggressive response would be to assume they did it on purpose and angrily say, Hey, jackass, no cuts! A passive response would be to just let the person stay in front of you. An assertive response would be to assume that they may not have seen you in line, and politely say, Excuse me, but I was in line. Scenario B: Your friend, who can be quite verbose (talkative), calls you to share her bad day. Unfortunately, you have a lot of work to do and dont have time to talk. An aggressive response would be to become angry that she obviously doesnt respect your time, cut her off, and sarcastically say, Oh, get over it! I have my own problems! A passive response would be to let her talk for as long as she needs, and figure that your deadline can suffer; she needs your help. An assertive response would be to listen for a minute or two, and then compassionately say, Wow, it sounds like youre having a tough day! Id love to talk to you about it, but I dont have the time right now. Can we talk later tonight? C. LEADERSHIP Leadership is the capacity to translate vision into reality Leadership is another important variable in interpersonal behaviour in the organization. The word leadership is widely used by politicians, businessmen, social workers etc. We define leadership as the ability to influence a group towards the achievement of goals. The source of this influence may be formal, such as that provided by the possession of managerial rank in an organization. Since management position comes with some degree of formally designated authority, a person may assume a leadership role simply because of the position he or she holds in the organization. But not all leaders are managers; nor, all managers are leaders. Just because an organization provides its managers with certain formal rights is no assurance that they will be able to lead effectively. We find that non-sanctioned leadership-that is, the ability to influence that arises outside the formal structure of the organization-is often as important or more important than formal influence. In other words, leaders can emerge from within a group as well as by formal appointment. Leadership and Motivation are closely related. A good leader always motivates his followers and encourages them to complete the assigned task and to obtain positive results. He provides right guidance, which leads their efforts in the positive direction. It is very much important for a leader to be a good motivator. A person can remain a leader only so long as the followers accept him. This is the case with authoritarian leader too. Adolf Hitler was the undisputed leader of Nazi Germany.

But when the World War II began to turn against Germany, attempts were made on his life. He had lost much of his influence over the Germans. Characteristics of leaders 1. Group of followers: A leader has a group of followers who follow them. A leader and his followers are complementary to each other. Without followers leadership cannot be imagined. 2. Influence behaviour: Leadership envisages the idea of influence. He should be able to influence the behaviour of his followers for achievement of certain goals. 3. Common Goal: Both leader and his followers should have common goal to pursue. A leader is not a good leader, if he tries to deviate the concentration of his followers from actual goal. TYPES OF LEADERSHIP / LEADERSHIP STYLE Leadership style refers to the style a leader uses while supervising his subordinates. In other words, the behaviour the leaders exhibits during supervision of subordinates is known as leadership style. Style comprises two main aspects of leaders: first, their assumption about subordinates and second: their behaviour while interacting with their subordinates. A change in leaders behaviour is achieved by first changing his assumption about people and then changing his attitude about people. Leadership style is very much useful because, only a properly selected leadership style leads to achievement of goals and brings success to the organization. There are four types of leadership styles. They are as follows: a. Style based on authority retained: This is the classical approach to classifying the leadership styles and is useful even today. Styles in this approach are classified depending on how much authority is retained by the leader versus how much he delegates to the subordinates. There is a three-way classification of this style, which is as follows:
1. Authoritarian Style: This style involves retention of full authority by the leader.

Leader decides, decision is passed on to subordinates, instructions about the implementation of decision are given and subordinates are expected to do what the leader has told them to do. Assuring that the leader is competent, the advantage of this leadership style is that tasks are efficiently completed, since there is no opportunity to waste the time. Problems: Here the workers are made aware of what to do, but why? No one of them knows, perhaps. Second, workers following leader directions lose initiative and avoid responsibility for any error.

2. Participative Style: There are 3 related types of participative leaders: consultative,

consensual and democratic.

2.2.

2.3.

Consultative: Leaders solicit opinions from group before making a decision, yet they do not feel obliged to accept the groups thinking; they make it clear that they alone have final authority to make final decision. Consensual: Leader encourages group discussion on an issue and then makes a decision that reflects the general agreement of group members. Leaders delegate more authority to group than do the consultative ones. This leads to delay in decision-making. Democratic: Leaders confer final authority on group. They function as collectors of opinion and take a vote before making a decision. Democratic leaders delegate full authority to subordinates.

Advantages of Participative Style: Its effective where group comprises competent and motivated members who want to get involved in making decisions and giving feedback to leaders. Employees feeling of self-worth and satisfaction are increased because the leader conveys a sense of confidence in employee judgement. Employee participation in decision-making improves the quality of decisions because when more people think about problem it is likely that a better solution will be found. b. Style based on Task Versus People Emphasis:

Another standard way of classifying leadership styles is based on the relative concern the leader places on the task to be performed vis--vis the people performing the task. A leader who places greater emphasis on the task performance tends to exhibit the following behaviours: Organizing and defining the roles of the group members. Explaining what activities each has to do and when, where and how tasks are to be accomplished. Establishing well-defined patterns of organization, channels of communication and ways of task accomplishment. A leader who places greater emphasis on people tries to gain their relationship by exhibiting such behaviours as: Establishing channels of communication. Extending psychological support to them. Developing mutual trust.

 Developing empathy for them. Depending on task emphasis or people emphasis, 4 combinations are possible as shown below: A brief description of each style follows: High-Task and Low-Relationship: A high-task and low-relationship leader emphasizes showing employees how to get the task accomplished and spends minimum time giving psychological support. This style may be effective where the employees are inexperienced with the work to be performed. The high-task and low-relationship style may also be well suited to situations where seasonal help is involved. Seasonal employees may be unfamiliar with the task and these require direct guidance on performing the work priority. A high-task and low-relationship leader is not necessarily rude or discourteous. The leader simply focuses on work rather than people. High-Task and High-Relationship: This leader spends considerable time showing people how to get the work accomplished and providing them psychological support. The High-Task and High-Relationship style is considered generally useful because it results in high productivity and personal satisfaction. A more critical look at this style would suggest that it works best in situations where people need an active and involved leader. High-Relationship and Low-Task: A leader using the High-Relationship and Low-Task style gives employees much encouragement and support but a minimum of guidance about the task accomplishment. In some situations employees need more psychological support rather than technical instructions. This style is suitable for such situation. Low-Relationship and Low-Task: A leader using this style is neither here nor there. It is essentially a free-rein style. Subordinates are given considerable freedom in performing their work. They are also given very little psychological support, encouragement and praise. They are; therefore, free to run their own show. When subordinates are highly skilled and psychologically mature, this style can be effective. 3. Style based on Assumptions about people

Depending on what assumptions a leader makes about his followers two styles may be distinguished. This two-way classification is based on Mc-Gregors famous Theory X and Theory Y (more in detail in the next session). In short, it may be stated that Theory X leaders are autocratic. They distrust people and believe in close supervision and tight control over the subordinates. Theory Y leaders are participative, they trust subordinates and allow them to participate in decision-making. WORK TEAM: A group whose individual efforts result in a performance that is greater than the sum of the individual inputs. Says Stephen Robbins. A group whose members have complementary skills and are committed to a common purpose or set of performance goals for which they hold themselves mutually accountable. Says Greenberg and baron A work team generates positive synergy through coordinated effort. Their individual efforts result in a level of performance that is greater than the sum of those individual inputs. The use of teams is becoming increasingly popular these days. Gregory Moorhead defines a team as a small number of people with complementary skills who are committed to a common purpose, common performance goal, and an approach for which they hold themselves mutually accountable. Difference Between Work Groups and Work Teams: Although the teams and groups are often used interchangeably, they do not mean the same. A work group is a collection of two or more people who interact with one another in such a way that the other influences each person. These individuals need not have a common goal. For e.g. people working under a common supervisor are said to compromise a work group. The members of a group do not produce a synergy that would result in an overall consolidated performance greater than sum of individual performances. On the other hand the members of a team are committed to a common objective and work together to produce a synergy whose outcome is greater than the sum of individual contribution. In other words, a team is a group that has a common goal. A group is a group that interacts primarily to share information and to make decisions to help each member perform within his or her area of responsibility. While a team is a group whose individual efforts result in a performance that is greater than the sum of those individual inputs. Team members have to possess three types of skills to achieve the teams goal.

 Technical or functional skills to carry out job. Good interpersonal skills to understand each others interest. Problem-solving and decision-making skills. Types of teams Following are the different types of teams, which are most likely found in an organization. 1. Problem solving teams:

A group of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and work environment. These teams are known as problem-solving teams. Members offer suggestions about improvement of work methods. Only in rare cases these teams are given the authority to implement any of the suggestions of their own. 2. Self-managed work team:

Problem solving teams did not go too far due to its limitation on implementing their suggestions. This led to experimentations with truly autonomous teams that could not only solve problems but implement solutions and take full responsibility for outcomes. Self-managed work teams are groups of employees (10-15 numbers) who perform highly related or interdependent jobs and take on many of the responsibilities of their former superiors. Duties include activities such as planning and scheduling of work, collective control over the pace of work, making operating decisions, and taking decisions on problems. Fully self-managed teams select their own members. Self-managed teams have grown due to changes in management practices. Several large corporations such as Xerox, Hewlett-Packard, Pepsi, p & g, and general motors use such teams. 3. Cross functional teams:

Here, employees from about the same hierarchical level, but from different work areas, which come together to accomplish a task. Such team represents an effective way of handling the different types of tasks needed for completing large projects.

Many organizations have used cross-functional teams. One of the earlier cases was a task force team (a temporary cross-functional team) created by IBM in the 1960s. The team was made up of employees across departments in the company to develop highly successful system 360. All major automobile manufacturers, including Toyota, Honda, general motors, and ford etc used such teams. Even boing 777 jumbo jets were designed by cross-functional teams. Cross-functional teams are an effective means of bringing together experts from different disciplines within an organization to develop new ideas, and coordinate complex projects. How to create team The need for teamwork has been felt in many organizations over past many years. Although creating a team is not an easy task, the importance of team also cannot be denied. At the stage of creation, organization required right combination of skilled people who are willing to work together. Certain guidelines can be used for creating work teams. The guidelines suggest the process that is involved in creating the team. Following is the model by J.R. Hackman, which provides useful guidelines as to how to design work teams effectively: 1. Prework: the first and the important stage of creating an effective team is to find whether a team should be created?, is it beneficial to create a work team and get the work carried by several individuals? Another important issue is, whether the subordinates can do the work individually or whether a team would be more beneficial? It is also important that creating a team results in getting the work done in more creative and insightful ways. 2. Making available proper resources: after completing the pre-work conditions, the team should be provided with proper resources. The managers must make sure that the team has proper condition to carry out. Resources include material resources in terms of money, and other equipments and human resources such as skilled people. In the absence of such skills the team is likely to fail. 3. Forming and building the team: the stage can be very well explained as follows:

a. Clarification: clarifications regarding who are the members of the team and who are not. There should not be any ambiguity and frustration among members.

b. Acceptance: members should accept the teams overall purpose. If they do not do so, the team is likely to fail. c. Responsibilities: members should clearly know their responsibilities. The members should know what is expected out of them. 4. Provide ongoing assistance: the managers should provide required support and assistance to the team members. The assistance is difference from direct intervene in routine functioning. This can be done by removing obstacles that the team encounters during its functioning. This is done for e.g. By removing or replacing uncooperative members, ensuring regular supplies of their requirements, etc. Turning individuals into team players 1. Selection: proper care should be taken while selecting team members. All team members must have basic requirements pertaining to the task, which is to be completed, and for which a team is formed. 2. Training: training is an unavoidable part of any successful team. Although the team members are expected to have some basic knowledge about the task to be performed, but training in form of work shops or seminar always helps employees to learn latest skills. Also it helps employees to solve their doubts, improve their communication, and increase other practical skills which are required at different level of a mission. 3. Rewards: the system of reward should be redesign from time to time and should be design as per the requirements of individuals. Reward encourages the employees and increases cooperation. The reward should strike a fine balance between individual performance and team performance. Barriers to effective teamwork Insufficient time to build an effective team. Unrealistic or unreal goals and objectives. The team does not think the task is worthwhile. The team leader is not accepted by the others or is not competent. The team members are dissatisfied and are given little credit for their achievement.

 Team members who are not compatible with other team members. Why do some teams fail? / Unsuccessful teams A team leading to success all the time is a very optimistic picture. In spite of proper care in the beginning teams can and often do fail. A balanced view to the advantages and limitations of a team is always expected while forming a team. The main threats to team effectiveness are unrealistic expectations. Such expectation leads to frustrations. In turn, frustrations make people abandon teams. Managers as well as members of the team can be victims of unrealistic expectations. Common mistakes with teams by management Preparing weak strategies and following poor business practices and expecting from teams not to get affected out of this. Poor experience by one team not transferred to another team. Ambiguous roles, vague assignments. Improper training. Poor staffing of teams. Lack of trust. Mistakes by team members No acceptance of their roles Trying to do too much at a time. Conflict among members about difference in work styles Resistance to do things differently Poor interpersonal skills (aggressive, win-lose attitude) Lack of trust.

COMMUNICATION SKILLS (TRANSACTION ANALYSIS):