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Strategic Management:
Lecture 1: Saturday on June 8, 2013
Importance of values in decision making:
The great philosophy Aristotlesays that excellence is an art won
by training and habituation.
e are what we repeatedly do. !xcellence then is not an act" but
a habit# . In this context,
values are standard which we strike to achieve. Values are
practical habits that enable us as
individual to live, be successful and achieve happiness. Many
people have conflicting values
which prevent them from acting with clarity and self-confidence.
ur focus on values that grow
from our belief that idea matter and that an individual!s
character is of critical significance.
$here are ten primary values which must be followed by decision
makers.
%. &ecision must be based on reality:
If we want to be better, we must act within the context of
reality. "usiness and an individual often
make series of mistakes by making decisions based on what they
wish was so, or based on theory
which in compatible to reality. The foundation for #uality
decision making is a careful
understanding of the facts. There is a fundamental difference
between the laws of nature $reality%
and man-made laws. The law of gravity is the law of gravity. The
existence of the law of gravity
does not mean that man cannot build an airplane. &owever, an
airplane must be created within the
context of the law of gravity.
'. &ecision must be based on reasons(
Mankind has specific means of survival, which is his ability to
think, his capacity to reason
logically from the facts of reality as presented to his five
senses. ' lion has claws to hunt. ' deer
has swiftness to avoid the hunter. Man has his ability to think.
This is the only one natural source
human mind. (lear thinking is not automatic. It re#uires
intellectual discipline and being with
sound premises based on fact. )e cannot all be genius, but each
of us can develop the mental
habits that ensure when making decision we carefully examine the
fact and think logically
because our ob*ective is to make the best decision to accomplish
our goals. +ational thinking is a
learnt skill which re#uires mental focus and fundamental
commitment to improve the clarity of
our mental process.
). &ecision must be based on independent(
'll employees are assumed to use their individual minds to make
rational decision. In this
context, each of us responsible for what we do and who we are.
(reativity is only possible with
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independent thinking. )e learn a great deal from each other.
Team work is an important.
&owever, each of us thinks alone. ur minds are not
physically connected in this regard.
ach of us must make an independent *udgment of fact based on our
capacity or think logically
because each of us is responsible for our own action. ach of us
is responsible for our success or
failure. 'll human progress is based on creativity because it is
source of positive change.
(reativity is only possible to an independent thinker.
(reativity is not *ust *udging different but
doing something better. To be better, the new method process
must be *udged by its impact on
the whole organiation
*. $he &ecision must be +roductive:
/roductivity means profitability which is the main ob*ective of
every business organiation.
/rofitability is the difference means the cost and the market
price of the product which going to
produce and sell. The high profitability in the long run is must
for organiation its shareholder,
employees and society. The productive people are those who want
to crate, produce and
committed to turning thoughts into actions and to improve
economic well-being of organiation.
,. $he &ecision must be honest:
"eing honest is simply being consistent with reality. To be
dishonest is to be in conflict with
reality which will therefore self-defeating. ' primary reason is
that individual fail in because they
become disconnected from reality pretending that facts are other
then they are. To be honest does
not re#uire that we know everything. 0nowledge is always
contractual and man is not omniscient.
&owever we must be responsible for saying what we means to
say and meaning what we say.
Lecture 2: Sunday June 9, 2013
-. $he &ecision must be integrity:
Integrity of business organiation individual originates from
certain principles. )hich they follow
in the decision making process. /rinciples are based on reality.
)e must act consistently with our
principles and never think compromising against them. /rinciples
provide well-conceived
concepts which leads to our long term success and happiness.
Violating our set principles will
always lead to failure.
. $he &ecision must be fair and /ustice:
Individual should be evaluated and rewarded ob*ectively 1for
better or loss2 based on their
contribution. Those who contribute the most should receive the
most. The single most significant
way in which employees evaluated their managers is determining
whether the manager is *ust and
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fare. mployees become extremely unhappy when they perceive that
a person who is not
contributing is over rewarded or strong contributor is under
rewarded. If we do not reward those
who contribute the most, thy will leave the *ob and the
organiation will be less successor. If there
is no reward for superior performance, the average person will
not be motivated to maximie his
productivity. 3iscrimination on the bases of race, color and sex
must be prohibited but people
should be discriminated on the bases of competency performance
and character. Individual must
be *udged individually based on his personal traits not
membership of any group.
0. $he &ecision must be +ride:
/ride is the psychological reward we earn from living by our
values, that is from being *ust,
honest, having integrity, being an independent thinker, being
productive and rational. 'ristotle
believed that 4earned5 pride $not arrogance% was the highest of
virtues, because it presupposed all
the others. 6triving for earned pride simply reinforces the
importance of having high moral
values. ach of us must perform our work in a manner as to be
able to be *ustly proud of what we
have accomplished.
1. $he &ecision must be Self !steem 2Self Motivational3:
)e expect our employees to earn self-esteem from doing their
work well. )e expect and want
our employees to act in their rational, long-term self-interest.
)e want employees who havestrong personal goals and who expect to
be able to accomplish their goals within the context of
our mission. ' necessary attribute for self-esteem is
self-motivation. )e have a strong work ethic.
)e believe that you receive from your work in proportion to how
much you contribute. If you do
not want to work hard, work somewhere else.
%4. $he &ecision must be $eam work and Supportiveness:
)hile independent thought and strong personal goals are
critically important, our work is
accomplished within teams. ach of us must consistently act to
achieve the agreed-upon
ob*ectives of the team. )ork is complex and its need integrated
effort among many people to
accomplish important tasks. )hile we are looking for
self-motivated and independent thinking
individuals, these individuals must recognie that almost nothing
can be achieve without the help
of their team members.
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