Entrepreneurial Behavior Instructional Material PDF

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES COLLEGE OF BUSINESS ADMINISTRATION DEPARTMENT OF ENTREPRENEURSHIP INSTRUCTIONAL MATERIAL FOR ENMA 20013: ENTREPRENEURIAL BEHAVIOR Compiled by: MARY ANNE C. AURE, MBA Name of Faculty Table of Contents 4 Course Overview:..............................................................................................................................4 Lesson 1: The Nature of Organization as a Social System.............................................................5 Introduction:......................................................................................................................................5 Learning Objectives:.........................................................................................................................5 Course Materials:...............................................................................................................................6 Organizational Behavior (OB)...........................................................................................................6 Characteristics of Entrepreneurial Behavior:.....................................................................................7 Approaches to the study of Entrepreneurial Behavior:......................................................................7 Models of Entrepreneurial Behavior:................................................................................................8 Role and Importance of Entrepreneurial Behavior:......................................................................... 10 Activities/Assessments:.................................................................................................................. 10 Lesson 2: Individual Behavior........................................................................................................ 11 Introduction:.................................................................................................................................... 11 Learning Objectives:....................................................................................................................... 11 Course Materials:............................................................................................................................. 11 Motivation Theories........................................................................................................................ 12 Maslow’s Hierarchy of Needs......................................................................................................... 13 Two-Factor Theory......................................................................................................................... 14 Activities/Assessments:.................................................................................................................. 15 Lesson 3: The Interpersonal Skills................................................................................................. 16 Introduction:.................................................................................................................................... 16 Learning Objectives:....................................................................................................................... 16 Course Materials:............................................................................................................................. 16 Developing Your Interpersonal Skills.............................................................................................. 18 Activities/Assessments:.................................................................................................................. 22 Lesson 4: Communication Skills.................................................................................................... 23 Introduction:.................................................................................................................................... 23 Instructional Material for Page 1 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Learning Objectives:....................................................................................................................... 23 Course Materials:............................................................................................................................. 23 Types of listening........................................................................................................................... 24 Body Language.............................................................................................................................. 25 Other Communication Skills........................................................................................................... 29 Presentation Skills.......................................................................................................................... 29 Writing Skills................................................................................................................................... 30 Personal Skills................................................................................................................................ 30 Activities/Assessments:.................................................................................................................. 30 Lesson 5: Public Speaking.............................................................................................................. 33 Introduction:.................................................................................................................................... 33 Learning Objectives:....................................................................................................................... 33 Course Materials:............................................................................................................................. 33 Activities/Assessments:.................................................................................................................. 36 MIDTERM Examination.................................................................................................................... 37 Lesson 6: Persuasion and Negotiating Skills................................................................................ 38 Introduction:.................................................................................................................................... 38 Learning Objectives:....................................................................................................................... 38 Course Materials:............................................................................................................................. 38 Activities/Assessments:.................................................................................................................. 43 Lesson 7: Assertive Entrepreneur.................................................................................................. 44 Introduction:.................................................................................................................................... 44 Learning Objectives:....................................................................................................................... 44 Course Materials:............................................................................................................................. 44 Being Passive................................................................................................................................ 46 Being Aggressive........................................................................................................................... 47 Activities/Assessments:.................................................................................................................. 47 Lesson 8: Resolving Conflict.......................................................................................................... 49 Introduction:.................................................................................................................................... 49 Instructional Material for Page 2 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Learning Objectives:....................................................................................................................... 49 Course Materials:............................................................................................................................. 49 There are three main types of conflict............................................................................................. 50 Resolving Conflict.......................................................................................................................... 51 Activities/Assessments:.................................................................................................................. 53 Lesson 9: Supervisory Behavior.................................................................................................... 56 Introduction:.................................................................................................................................... 56 Learning Objectives:....................................................................................................................... 56 Course Materials:............................................................................................................................. 56 Types of Leadership....................................................................................................................... 57 The Formation of Values................................................................................................................ 58 Kinds of Values.............................................................................................................................. 58 Lesson 10: Environmental Adaption and Organizational Effectiveness...................................... 60 Introduction:.................................................................................................................................... 60 Learning Objectives:....................................................................................................................... 60 Course Materials:............................................................................................................................. 60 Organizational change................................................................................................................... 60 Planning and Executing Change Effectively................................................................................... 62 Kotter’s Eight-stage Process for Change........................................................................................ 64 Activities/Assessments:.................................................................................................................. 66 FINAL EXAMINATION...................................................................................................................... 68 Course Grading System.................................................................................................................. 71 References:...................................................................................................................................... 71 Instructional Material for Page 3 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Course Overview: There are different definitions of ‘the entrepreneur’ and the concept of ‘entrepreneurship’. Researchers and writers often seem to pick the definition that best fits the area they are discussing. We have explicitly linked entrepreneurship to the capability for exploiting successfully innovative ideas in a commercially competitive market. Leaving to one side the fact that individuals working in the public and non-profit sectors can be very enterprising, in historic and policy making terms entrepreneurship refers to business behavior related to innovation and growth. For our purposes, entrepreneurs may be broadly defined as people who manage a business with the intention of expanding that business by applying some form of innovation and with the leadership and managerial capacity for achieving their goals, generally in the face of strong competition from other firms, large and small. The overall aim of this course, therefore, is to provide you with opportunities to consider and reflect on the personal aspects involved in transforming an innovative idea into an entrepreneurial product. Instructional Material for Page 4 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 1: The Nature of Organization as a Social System Introduction: Human Behavior is generally concerned with the thoughts, feelings, emotions and actions of the people working in a business and/or enterprise. It is said that the success of any enterprise primarily depends upon the efficiency and the effectiveness of the entrepreneur and the effectiveness of entrepreneurs depends primarily upon its human skills and how well he understands the needs and desires of the people working in the enterprise. This means that Entrepreneurial Behavior is directly concerned with the understanding, prediction and control of human behavior in enterprises and/or b usinesses. Throughout this module, you’ll find the information needed to enhance your knowledge to how best to establish a reputation as an Entrepreneur in today’s fast-paced and highly competitive business environment. Please watch the link provided for a short introduction as it demonstrates the basic concept of the course subject. https://www.youtube.com/watch?v=2XcfqCNKNGs Learning Objectives: After successful completion of this module, you should be able to: Define Organizational Behavior and understand Job of Entrepreneurs; Describe and understand Entrepreneurial Behavior; Identify the different Characteristics of Entrepreneurial Behavior; and Learn the Approaches to the study of Entrepreneurial Behavior; Instructional Material for Page 5 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Course Materials: Organizational Behavior (OB) is defined as the systematic study and application of knowledge about how individuals and groups act within the organizations where they work. As you will see throughout this book, definitions are important. They are important because they tell us what something is as well as what it is not. For example, we will not be addressing childhood development in this course—that concept is often covered in psychology—but we might draw on research about twins raised apart to understand whether job attitudes are affected by genetics. Those who study organizational behavior—which now includes you—are interested in several outcomes such as work attitudes (e.g., job satisfaction and organizational commitment) as well as job performance (e.g., customer service and counterproductive work behaviors). A distinction is made in OB regarding which level of the organization is being studied at any given time. There are three key levels of analysis2 in OB. They are examining the individual, the group, and the organization. For example, if I want to understand my boss’s personality, I would be examining the individual level of analysis. If we want to know about how my manager’s personality affects my team, I am examining things at the team level. But, if I want to understand how my organization’s culture affects my boss’s behavior, I would be interested in the organizational level of analysis. OB matters at three critical levels. It matters because it is all about things you care about. OB can help you become a more engaged organizational member. Getting along with others, getting a great job, lowering your stress level, making more effective decisions, and working effectively within a team…these are all great things, and OB addresses them. The following were the top five personal qualities/skills: 1. Communication skills (verbal and written) 2. Honesty/integrity 3. Interpersonal skills (relates well to others) 4. Motivation/initiative 5. Strong work ethic It is ariculated that the definition of Entrepreneurial Behavior is a subset of entrepreneurial activities concerned with understanding, predicting and influencing individual behavior in entrepreneurial settings (McAdam and Cunningham, 2019). Instructional Material for Page 6 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Characteristics of Entrepreneurial Behavior: 1. Behavioral approach to management: Entrepreneurial Behavior represents the behavioral approach of management. It emerged as a distinct field of study because of the importance of human behavior in enterprise. 2. Cause and effect relationship: Human Behavior is generally taken in terms of cause and effect relationship. It provides generalization that entrepreneurs can use to anticipate the effect of certain activities on human behavior. 3. A branch of social sciences: Entrepreneurial Behavior is greatly influenced by other social sciences viz., psychology, sociology and anthropology. 4. Three levels of analysis: Entrepreneurial Behavior is the study of three levels of analysis i.e. individual behaviour, inter-individual behavior and the behavior of organizations. 5. A science as well as an art: The systematic knowledge about human behavior is a science and the application of behavioral knowledge and skills is an art. 6. A body of theory, research and application: Entrepreneurial behaviour consists of a body of theory, research and application which helps in understanding the human behaviour in organisation. 7. Beneficial to both enterprise and individuals: A reasonable climate is created so that employees may get much needed satisfaction and the entrepreneur may attain its objectives. 8. Rational thinking: Entrepreneurial behavior provides a rational thinking about people and their behaviour. The major aim of entrepreneurial behavior is to explain and predict human behavior in enterprise. 9. Human part of enterprise: It focuses on people, their desires and needs. It is the systematic study of the action of the action and attitudes of people working in enterprise. 10. Change part of enterprise: It points to the need for change in human behavior with change in technology and other fields of environment. Approaches to the study of Entrepreneurial Behavior: Instructional Material for Page 7 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca 1. Human resources approach: Entrepreneurs should provide active support to workers by threating them part and parcel of the unit. Entrepreneurs should provide opportunities and encouragement to workers to work under loose supervision 2. Contingency approach: According to this approach, there is no single way to handle the human resources under all conditions. The behaviors or methods successful in one situation may fail in other situation. 3. Productivity approach: Productivity means the numerical value of the ratio of output to input. Higher the value of this ratio, greater is the efficiency and effectiveness of the entrepreneur. 4. System approach: According to system approach, an enterprise is a powerful system with several subsystems which are highly and closely interconnected. Any action taken to solve the problem in one subsystem will have its effect on the other subsystems also. Thus, this approach gives the entrepreneur a way of looking at the enterprise as a whole, whole group, and the whole social system. Models of Entrepreneurial Behavior: 1. Autocratic model: The basis of this model is the power of the boss. Maxweber defined power as, “the probability that one actor, within a social relationship, will be in a position to carry out his own will despite resistance.” The essential feature of this model are as follows: Enterprise with an autocratic environment is authority oriented. Under autocratic model, the employee’s orientation is obedience to the boss, they need not be respectful to him. The autocratic model has been successful in some situations where the workers are actually lazy and have a tendency to shirk work. The leadership in an autocratic model is negative 2. The custodial model: This model overcomes the shortcomings of the Autocratic model. The insecurity and frustration felt by the workers under the autocratic model sometimes led to aggression frustration. There was a need to develop a model which will improve the employer- employee relations. Some of this important features of this model are as explained below: The success of the custodial model depends upon the economic resources because this model emphasis the economic reward & benefits. The employees depends upon unit rather than their boss. Instructional Material for Page 8 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Under this model, the employees are satisfied & happy and they are not strongly motivated. The main benefit of this model is to bring security & satisfaction to the employees. 3. The supportive model: The supportive model has originated from the ‘Principals of supportive relationships’. The main features of this model are as follows: The supportive model depends on leadership instead of power or money. The leader assumes that the workers will take responsibility, make their contribution and improve themselves, if given a chance. It should be the duty of the entrepreneur to support the employees’ job performance. This model takes care of the psychological needs of the employees in addition to their subsistence and security needs. 4. The collegial model: The dictionary meaning of collegial is a body of persons having a common purpose. The main features of this model are as follows: This model creates a favourable climate in the unit as the workers feel that they are the partner in the enterprise. This model inculcates the team spirit in an unit. In this model, the workers have job satisfaction, job involvement, job commitment. 5. Other models: a. Normative models: The normative models seek to find out that what should be done to produce optimum result. b. Empirical models: The empirical models describe the activities that the employees actually perform. c. Ecological models: Models which deal with the changes which take place in the environment & which understand the complexities of environment are ecological models. d. Non- Ecological models: Non- ecological models assume stability in the environment & that everything will remain the same. e. Ideographic models: The models that are developed to deal with specific cases or unique situations are called ideographic models. f. Nomothetic models: These models deal with general situations. These are concerned with theory building on the macro level basis. Instructional Material for Page 9 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Role and Importance of Entrepreneurial Behavior: i. Understanding human behavior: Entrepreneurial behavior plays an important role to develop full knowledge about the behavior of employees. ii. Predicting human behavior: Entrepreneurial behavior also help in predicting the future employee behavior. This would allow them to take preventive actions. iii. Control and direct behavior: Entrepreneurial behavior assists entrepreneur to direct and control the human behavior to build successful enterprise. iv. Entrepreneurial effectiveness: It helps in better use of raw material and other resources to improve the quality of work in the enterprises. v. Motivation: Entrepreneurial behavior helps the entrepreneurs to identify the needs and requirement of the employees. vi. Better human relations: Entrepreneurial behavior also help in maintaining cordial human relations in the enterprise. It assists in find out causes of industrial conflict Activities/Assessments: Essay. Please answer the following reviewing concepts. 1. Do you think that profit maximization is the main motivation to entrepreneurial behavior? 2. Does profit have to be the main motivation of a successful business owner? 3. What alternatives or additional motives can you identify? Instructional Material for Page 10 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 2: Individual Behavior Introduction: Our behavior at work often depends on how we feel about being there. Therefore, making sense of how people behave depends on understanding their work attitudes. An attitude refers to our opinions, beliefs, and feelings about aspects of our environment. We have attitudes toward the food we eat, people we interact with, courses we take, and various other things. At work, two particular job attitudes have the greatest potential to influence how we behave. These are job satisfaction and organizational commitment. Learning Objectives: After successful completion of this module, you should be able to: Understand the effect of behavior has on yourself, other people and organization; To know Learning and Reinforcing; To Understand the perceptual process; and To discuss the motivation process Course Materials: Job Attitudes, Behaviors, and Ethics People prefer to work in companies that have an ethical environment. Studies show that when an organization has a moral climate that values doing the right thing, people tend to be happier at work, more committed to their companies, and less likely to want to leave. In other words, in addition to increasing the frequency of ethical behaviors, the presence of an ethical climate will attach people to a company. An ethical climate is related to performing citizenship behaviors in which employees help each other and their supervisors, and perform many behaviors that are not part of their job descriptions.Leung, A. S. M. (2008). Matching ethical work climate to in-role and extra-role behaviors in a collectivist work-setting. Journal of Business Ethics, 79, 43–55; Mulki, J. P., Jaramillo, F., & Locander, W. B. (2006). Effects of ethical climate and supervisory trust on salesperson’s job attitudes and intentions to quit. Journal of Personal Selling & Sales Management, 26, 19–26; Instructional Material for Page 11 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Valentine, S., Greller, M. M., & Richtermeyer, S. B. (2006). Employee job response as a function of ethical context and perceived organization support. Journal of Business Research, 59, 582–588. If people are happy at work and committed to the company, do they behave more ethically? This connection is not as clear. In fact, loving your job and being committed to the company may prevent you from realizing that the company is doing anything wrong. One study showed that, when people were highly committed to their company, they were less likely to recognize organizational wrongdoing and less likely to report the problem to people within the organization. Work attitudes are our feelings toward our company and job. Job satisfaction and organizational commitment are related to many outcomes of interest, such as absenteeism, performance, and turnover. Therefore, companies track feelings toward work and try to create more positive attitudes. The main behaviors that contribute to organizational effectiveness are job performance, citizenship behaviors, absenteeism, and turnover. These behaviors are affected by a complex blend of personality and situational factors. Motivation Theories What inspires employees to provide excellent service, market a company’s products effectively, or achieve the goals set for them? Answering this question is of utmost importance if we are to understand and manage the work behavior of our peers, subordinates, and even supervisors. Put a different way, if someone is not performing well, what could be the reason? Job performance is viewed as a function of three factors and is expressed with the equation below.Mitchell, T. R. (1982). Motivation: New directions for theory, research, and practice. Academy of Management Review, 7, 80–88; Porter, L. W., & Lawler, E. E. (1968). Managerial attitudes and performance. Homewood, IL: Dorsey Press. According to this equation, motivation, ability, and environment are the major influences over employee performance. Motivation is one of the forces that lead to performance. Motivation is defined as the desire to achieve a goal or a certain performance level, leading to goal-directed behavior. When we refer to someone as being motivated, we mean that the person is trying hard to accomplish a certain task. Motivation is clearly important if someone is to perform well; however, it is not sufficient. Ability2—or having the skills Instructional Material for Page 12 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca and knowledge required to perform the job—is also important and is sometimes the key determinant of effectiveness. Finally, environmental3 factors such as having the resources, information, and support one needs to perform well are critical to determine performance. At different times, one of these three factors may be the key to high performance. For example, for an employee sweeping the floor, motivation may be the most important factor that determines performance. In contrast, even the most motivated individual would not be able to successfully design a house without the necessary talent involved in building quality homes. Being motivated is not the same as being a high performer and is not the sole reason why people perform well, but it is nevertheless a key influence over our performance level. Maslow’s Hierarchy of Needs Abraham Maslow is among the most prominent psychologists of the twentieth century. His hierarchy of needs is an image familiar to most business students and managers. The theory is based on a simple premise: Human beings have needs that are hierarchically ranked.Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50, 370–396; Maslow, A. H. (1954). Motivation and personality. New York: Harper. There are some needs that are basic to all human beings, and in their absence nothing else matters. As we satisfy these basic needs, we start looking to satisfy higher order needs. In other words, once a lower level need is satisfied, it no longer serves as a motivator. The most basic of Maslow’s needs are physiological needs4. Physiological needs refer to the need for food, water, and other biological needs. These needs are basic because when they are lacking, the search for them may overpower all other urges. Imagine being very hungry. At that point, all your behavior may be directed at finding food. Once you eat, though, the search for food ceases and the promise of food no longer serves as a motivator. Once physiological needs are satisfied, people tend to become concerned about safety needs5. Are they free from the threat of danger, pain, or an uncertain future? On the next level up, social needs6 refer to the need to bond with other human beings, be loved, and form lasting attachments with others. In fact, attachments, or lack of them, are associated with our health and well- being.Baumeister, R. F., & Leary, M. R. (1995). The need to belong: Desire for interpersonal attachments as a fundamental human motivation. Psychological Bulletin, 117, 497–529. The satisfaction of social needs makes esteem needs7 more salient. Esteem need refers to the desire to be respected by one’s peers, feel important, and be appreciated. Finally, at the highest level of the Instructional Material for Page 13 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca hierarchy, the need for self-actualization8 refers to “becoming all you are capable of becoming.” This need manifests itself by the desire to acquire new skills, take on new challenges, and behave in a way that will lead to the attainment of one’s life goals. ERG theory, developed by Clayton Alderfer, is a modification of Maslow’s hierarchy of needs.Alderfer, C. P. (1969). An empirical test of a new theory of human needs. Organizational Behavior and Human Performance, 4, 142–175. Instead of the five needs that are hierarchically organized, Alderfer proposed that basic human needs may be grouped under three categories, namely, existence, relatedness, and growth. Existence9 corresponds to Maslow’s physiological and safety needs, relatedness10 corresponds to social needs, and growth11 refers to Maslow’s esteem and self actualization. Two-Factor Theory Frederick Herzberg approached the question of motivation in a different way. By asking individuals what satisfies them on the job and what dissatisfies them, Herzberg came to the conclusion that aspects of the work environment that satisfy employees are very different from aspects that dissatisfy them.Herzberg, F., Mausner, B., & Snyderman, B. (1959). The motivation to work. New York: John Wiley; Herzberg, F. (1965). The motivation to work among Finnish supervisors. Personnel Psychology, 18, 393–402. Herzberg labeled factors causing dissatisfaction of workers as “hygiene” factors because these factors were part of the context in which the job was performed, as opposed to the job itself. Hygiene factors12 included company policies, supervision, working conditions, salary, safety, and security on the job. To illustrate, imagine that you are working in an unpleasant work environment. Your office is too hot in the summer and too cold in the winter. You are being harassed and mistreated. You would certainly be miserable in such a work environment. However, if these problems were solved (your office temperature is just right and you are not harassed at all), would you be motivated? Most likely, you would take the situation for granted. In fact, many factors in our work environment are things that we miss when they are absent but take for granted if they are present. These are just some of the Motivation Theories to consider in taking the entrepreneurial process. We can find more in https://saylordotorg.github.io/text_organizational-behavior-v1.1/s09-theories-of- motivation.html Instructional Material for Page 14 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Activities/Assessments: You are a department manager in an advertising agency. The employees of the department have recently completed an attitude survey. Three employees in your department reported that they were harassed by senior people in the department and they are experiencing a hostile work environment. You do not know who these people are, but you feel that you need to do something. The surveys were filled out confidentially, and employees were assured that their identities would not be revealed to management. You feel that you can identify who they are because the person in HR who administered the survey is a friend of yours and that person can tell you the demographics of the employees, which would help you identify them. 1. Should you ask for the identity-revealing information? What are the advantages and disadvantages of finding out the identity of these people? 2. How would you handle a situation like this now and in the future? Reading and Responding to Employee Blogs You found out that one employee from your company has created a blog about the company. Other current and ex-employees are also posting on this blog, and the picture they are painting is less than flattering. They are talking about their gripes, such as long work hours and below-market pay, and how the company’s products are not great compared to those of competitors. Worse, they are talking about the people in the company by name. There are a couple of postings mentioning you by name and calling you unfair and unreasonable. 1. What action would you take when you learn the presence of this blog? Would you take action to stop this blogger? How? 2. Would you do anything to learn the identity of the blogger? If you found out, what action would you take to have the employee disciplined? 3. What would you change within the company to deal with this situation? 4. Would you post on this blog? If so, under what name, and what comments would you post? Instructional Material for Page 15 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 3: The Interpersonal Skills Introduction: Interpersonal skills are the skills we use every day when we communicate and interact with other people, both individually and in groups. They include a wide range of skills, but particularly communication skills such as listening and effective speaking. They also include the ability to control and manage your emotions. People with strong interpersonal skills tend to be able to work well with other people, including in teams or groups, formally and informally. They communicate effectively with others, whether family, friends, colleagues, customers or clients. They also have better relationships at home and at work. This module provides an overview of interpersonal skills and how they are developed and used. It explains where these skills are important, including particular jobs that may require very good interpersonal skills. Finally, it discusses how you can start to develop your interpersonal skills further. Please watch https://www.investopedia.com/terms/i/interpersonal-skills.asp for a short introduction/summary of this module. Learning Objectives: After successful completion of this module, you should be able to: Understand the effect of behavior has on yourself, other people and organization; Develop your strengths and areas for development; and Gain co-operation and commitment from others. Course Materials: Interpersonal Skills – also referred to as people skills or soft skills – have to do with the way we interact with other people. Soft skills, therefore, are used both at and away from our place of business, whereas Instructional Material for Page 16 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca hard skills or occupational skills have to do with our ability to perform certain types of activities and tasks at work. These interpersonal skills are behavioral in essence and include the following competencies: 1. Communication skills 2. Ability to create rapport with others 3. Effective conflict resolution 4. Negotiation skills 5. Personal stress management 6. Persuasion skills 7. Team Building skills 8. Strategic thinking 9. Creative Problem solving The way individuals present these personal traits in their behavior is closely related to their level of “Emotional Intelligence,” a broader concept, which includes other aspects of personal behavior such as friendliness and optimism. Today, society come to realize that workplace performance can benefit from maximizing the potentials of different personality types within a team and that certain behavior can help move a company toward its goals. In more developed societies, we have come to realize that our soft skills serve to enhance our interactions with our friends, family, and clients and to help us improve our work performance and career prospects. Given that humans are social beings, the manner in which we interrelate with others and our ability to establish positive relationships have an enormous impact on our success in the different areas of our lives. This is especially important when a person is running a business and dealing with customers, suppliers, employees, investors, and others on a regular basis. How well we handle ourselves in these relationships and the way we are perceived by others could very well translate into events like landing a big client, successfully negotiating favorable financing terms and conditions with a lending institution, solving conflicts between employees, building effective teams, leaving a good impression with the media, and more. Take note that qualities such as appearing confident, being charismatic, remaining calm in tense situations, being able to clearly express your Instructional Material for Page 17 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca thoughts and expectations, and being a creative problem solver are personal traits that are very appealing to others, helping you become a leader in their eyes. People with improved interpersonal skills tend toward a positive attitude, making them more solution- oriented. Everyone enjoys doing business with those who can get the job done and get along with others at the same time. It is worth your while, then, to work on improving the soft skills of everyone within your organization, especially those who interact face-to-face with your clients and business partners, so that your company can reap the benefits. Developing Your Interpersonal Skills Good interpersonal skills are the foundation for good working and social relationships, and also for developing many other areas of skill. It is therefore worth spending time developing good interpersonal skills. We've all been developing our interpersonal skills since childhood, usually subconsciously. Interpersonal skills often become so natural that we take them for granted, never thinking about how we communicate with other people. If you have developed good habits, this is fine. However, it is of course also possible to develop bad habits, and then fail to understand why your communications or relationships are suffering. Improving and developing your interpersonal skills is best done in steps, starting with the most basic, but vital: 1. Identify areas for improvement The first step towards improving is to develop your knowledge of yourself and your weaknesses. You may already have a good idea of areas that you need to develop. However, it is worth seeking feedback from other people, because it is easy to develop ‘blind spots’ about yourself. You might also find it useful to do our Interpersonal Skills Self-Assessment. 2. Focus on your basic communication skills Listening is very definitely not the same as hearing. Perhaps one of the most important things you can do for anyone else is to take the time to listen carefully to what they are saying, considering both their Instructional Material for Page 18 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca verbal and non-verbal communication. Using techniques like questioning and reflection demonstrates that you are both listening and interested. When you are talking, be aware of the words you use. Could you be misunderstood or confuse the issue? Practise clarity and learn to seek feedback or clarification to ensure your message has been understood. By using questions effectively, you can both check others’ understanding, and also learn more from them. You may think that selecting your words is the most important part of getting a message across, but non-verbal communication actually plays a much bigger part than many of us are aware. Some experts suggest that around three-quarters of the ‘message’ is communicated by non-verbal signals such as body language, tone of voice, and the speed at which you speak. These non-verbal signals reinforce or contradict the message of our words, and are much harder to fake than words. They are therefore a much more reliable signal. Learning to read body language is a vital part of communication. 3. Improve your more advanced communication skills Once you are confident in your basic listening and verbal and non-verbal communication, you can move on to more advanced areas around communication, such as becoming more effective in how you speak, and understanding why you may be having communication problems. Communication is rarely perfect and can fail for a number of reasons. Understanding more about the possible barriers to good communication means that you can be aware of—and reduce the likelihood of—ineffective interpersonal communication and misunderstandings. Problems with communication can arise for a number of reasons, such as: Physical barriers, for example, being unable to see or hear the speaker properly, or language difficulties; Emotional barriers, such as not wanting to hear what is being said, or engage with that topic; and Expectations and prejudices that affect what people see and hear. There are also circumstances in which communication is more difficult: for example, when you have to have an unpleasant conversation with someone, perhaps about their standard of work. These conversations may be either planned or unplanned. There tend to be two issues that make conversations more difficult: emotion, and change. Instructional Material for Page 19 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Various emotions can get in the way of communicating, including anger and aggression, or stress. Few of us are able to communicate effectively when we are struggling to manage our emotions, and sometimes the best thing that can be done is to postpone the conversation until everyone is calmer. Difficult conversations are often about the need for change. Many of us find change hard to manage, especially if it is associated with an implied criticism of existing ways of working. 4. Look inwards Interpersonal skills may be about how you relate to others, but they start with you. Many will be improved dramatically if you work on your personal skills. For example, people are much more likely to be drawn to you if you can maintain a positive attitude. A positive attitude also translates into improved self-confidence. You are also less likely to be able to communicate effectively if you are very stressed about something. It is therefore important to learn to recognise, manage and reduce stress in yourself and others. Being able to remain assertive, without becoming either passive or aggressive, is also key to effective communication. Perhaps the most important overarching personal skill is developing emotional intelligence. Emotional intelligence is the ability to understand your own and others’ emotions, and their effect on behaviour and attitudes. It is therefore perhaps best considered as both personal and interpersonal in its nature, but there is no doubt that improving your emotional intelligence will help in all areas of interpersonal skills. Daniel Goleman, the author of a number of books on emotional intelligence, identified five key areas, three of which are personal, and two interpersonal. The personal skills, or ‘how we manage ourselves’, are self-awareness, self-regulation, and motivation. In other words, the first steps towards understanding and managing the emotions of others is to be able to understand and manage our own emotions, including understanding what motivates us. The social skills, or ‘how we handle relationships with others’, are empathy and social skills. These mean understanding and feeling for others, and then being able to interact effectively with them. Instructional Material for Page 20 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Improving your emotional intelligence therefore improves your understanding that other people have different points of view. It helps you to try to see things from their perspective. In doing so, you may learn something whilst gaining the respect and trust of others. 5. Use and practise your interpersonal skills in particular situations There are a number of situations in which you need to use interpersonal skills. Consciously putting yourself in those positions, and practising your skills, then reflecting on the outcomes, will help you to improve. For example: Interpersonal skills are essential when working in groups. Group-work is also a common situation, both at home and at work, giving you plenty of opportunity to work on your skills. It may be helpful to understand more about group dynamics and ways of working, as these can affect how both you and others behave. Interpersonal skills may also be particularly helpful if you have to negotiate, persuade and influence others. Effective negotiations—that is, where you are seeking a win–win outcome, rather than win–lose— will pave the way to mutual respect, trust and lasting interpersonal relations. Only by looking for a solution that works for both parties, rather than seeking to win at all costs, can you establish a good relationship that will enable you to work together over and over again. Being able to persuade and influence others—again, for mutual benefit—is also a key building block towards strong interpersonal relations. Resolving and mediating in conflict scenarios can be a real test of interpersonal skills. Sometimes negotiation and persuasion are not enough to avoid conflict. When this happens, you need strong conflict resolution and potentially even mediation skills. Conflict can arise from poorly-handled interpersonal communications, and may be addressed simply by listening carefully to both sides, and demonstrating that you have done so. Finding a win–win situation is similarly important here, because it shows that you respect both sides. These skills may be thought of as advanced communication skills. Finally, problem-solving and decision-making are usually better when they involve more than one person. Problem-solving and decision-making are key life skills. While both can be done alone, Instructional Material for Page 21 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca they are often better for the involvement of more people. This means that they also frequently involve interpersonal elements, and there is no doubt that better interpersonal skills will help with both. 6. Reflect on your experience and improve The final element in developing and improving your interpersonal skills is to develop the habit of self-reflection. Taking time to think about conversations and interpersonal interactions will enable you to learn from your mistakes and successes, and continue to develop. You might, for example, find it helpful to keep a diary or learning journal and write in it each week.] Activities/Assessments: Please answer the following reviewing concepts. 1. What exactly are interpersonal skills? 2. How do we rate an entrepreneur’s “Emotional Intelligence”? 3. When did human relationships really begin to affect how we do business? 4. What accounts for the renewal of interest in interpersonal skills? 5. In what ways does possession of interpersonal skills translate into entrepreneurial success? Instructional Material for Page 22 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 4: Communication Skills Introduction: Communication, at its simplest, is the act of transferring information from one place to another. It may be vocally (using voice), written (using printed or digital media such as books, magazines, websites or emails), visually (using logos, maps, charts or graphs) or non-verbally (using body language, gestures and the tone and pitch of voice). In practice, it is often a combination of several of these. Communication skills may take a lifetime to master—if indeed anyone can ever claim to have mastered them. There are, however, many things that you can do fairly easily to improve your communication skills and ensure that you are able to transmit and receive information effectively. This module provides an introduction to communication skills. This will cover the essential area to enable you to navigate them effectively. Learning Objectives: After successful completion of this module, you should be able to: Use effective first impressions; Make best use of body language, listening and oral communication; and Familiarize oneself to the importance of communication Course Materials: As entrepreneurs, we use our communication skills all the time during our normal business activities. Communication is much more than the simple acts of speaking and listening. Effective communication skills allow business leaders to correctly assess situations, saving time and money. Through such interactions, it’s possible to create a positive company image, attracting more and better relationships, which in turn make business operations better, smoother and more profitable. When you are a business owner, the ability to communicate effectively will enable you to significantly reduce the risk of Instructional Material for Page 23 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca misunderstanding another party’s request or intention, or overlooking information that may be crucial for making better business decisions. Listening is not hearing; listening occurs when we do our best to attempt to understand what a speaker means to say. Of the three types of listening, only Active Listening guarantees that we are 100 percent involved in a speaker’s message. Through Active Listening, we become active participants, asking questions to ensure that we completely understand the message and firmly establishing ourselves as an active component in the conversation. We communicate 80 percent of any given message through body language. Mastering how we send and receive these physical messages is an essential component of establishing strong business relationships. It is important to keep an open mind when reading others’ postures and gestures, as many of these can have multiple meanings. Our own body language sets the tone for business discussions and lays the groundwork for others’ first impressions of us. Types of listening Passive Listening: When we are passive listeners, we are not really focusing on the speaker. We may be checking our emails, calendars, or phones while the other person is speaking. We may pretend to listen while we think about things on our current to-do list, or we can choose to ignore most of what is being said and selectively hear key phrases that we assume summarize the speaker’s message. Attentive Listening: When we are listening attentively, our level of involvement is higher. We offer our full attention to the speaker, focusing on the facts they are giving us as well as the feelings they are expressing as they speak. In this manner, we improve our understanding of the situation. Our posture and demeanor demonstrate that our focus rests upon the speaker. Active Listening: This occurs when our level of concentration and involvement is at 100 percent. Not only are we paying full attention to what is being said and demonstrating our interest, but we are also asking questions and committing to gathering the necessary information in order to ensure that we completely understand what the other person is saying. This is called Active Listening because it implies that we are taking personal Action to understand the message and to add to the conversation. Instructional Material for Page 24 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca The correct attitude required for active listening can be summarized with the following acronym: Look: Direct your body towards the speaker so you can look at him directly. Maintain eye contact but keep your gaze natural. Inquire: Ask questions in order to gather all the information necessary to gain a good understanding of the point the other person is trying to make. Summarize: Confirm that what you heard is indeed what was just said by summarizing it in your own words. This is important because clearing up any confusion in a timely matter will prevent further misunderstanding. Turn off distractions: Turn off your mobile phone or TV, look away from your computer, and make an effort to eliminate anything that can distract you from the conversation. Encourage: Let the speaker know you are interested in hearing more by giving him encouraging gestures, such as nodding, and making verbal acknowledgments. Neutralize your feelings: When you are listening, avoid becoming biased and judgmental. The goal is to gather information about the other person’s point of view in a thorough manner. If you let yourself become wrapped up in your personal beliefs so much that you cannot focus on what is being said, you may miss out on key information. You can express your personal opinion when it is your time to do so, but while you are listening, make an effort to keep your feelings neutral so you can focus your full attention on the speaker’s message. Body Language If what you are saying is contradicted by your body language, people tend to gravitate toward the message displayed through body language. Inspire confidence and drive business meetings toward a positive outcome with strong, open, and friendly body language. It’s important to understand how we use body language to communicate and to be aware of the impact our emotions have on our communications. Understanding how body language affects communication allows us to ensure our messages are understood as we intended. Instructional Material for Page 25 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Learning to read body language can be extremely helpful, too, as it provides clues to the speaker’s state of mind. Non-verbal signals are usually given without conscious effort, and can serve as helpful clues during interviews, speeches, discussions, and sometimes just general conversations. 1. Keep the Bigger Picture in Mind Each gesture or posture makes its own suggestion of what it is being communicated. For example, clenched fists often communicate negativity. A smile is usually interpreted in a positive manner. However, some examples of body language can be interpreted in more ways than one: Crossed arms may suggest closed, defensive, or aggressive behavior. On the contrary, crossed arms may merely be a comfortable position – perhaps they indicate that the offending party is uncomfortably cold. If someone is playing with the rings on her fingers, she could be nervous, impatient, or simply oblivious of her own body’s movements. Restlessly shuffling feet could indicate anything from impatience to pain caused by uncomfortable shoes. When we are faced with ambiguous body language, the message we receive may not be what was intended. In the presence of such postures and movements, it’s best to keep an open mind. In other words, treat body language as one more clue in the communication process. The opposite is also true: we need to be aware of what our body language might be communicating to others. Clasping our hands may be comfortable, but if a potential business partner interprets that as nervousness, it may affect the relationship. We might think that a smile is hiding our disappointment, but is there a way that people can tell what is really going on despite our best cover-up efforts? 2. Body Language’s Top Secret You cannot entirely fake body language. Its impact may be minimized with awareness and self- control, but certain feelings tend to show through. Instructional Material for Page 26 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca At fifty-five, Jack had been working in the same position at his company for the ten years. His job was demanding and he was tired. During the past two years, several younger employees were hired. Their work ethic was very different from his. It was difficult for him to maintain his composure when their work failed to meet his expectations. Each time they made a mistake, he became angry. Although he never raised his voice, they could perceive his anger because the emotion would still come through in his body language – in his stance, the clenching of his hands, and the look in his eyes. He decided to take a communications class to improve his understanding of body language and learn techniques to control it. What he discovered was that his anger would be evident to the people around him no matter how hard he tried to manage his body language. He knew he had to learn about more constructive ways to deal with his frustrations because, as much as he tried, his true colors would show through. In short, people can see what you are not saying. Nevertheless, there are ways to manage your body language so that it contributes to your communications in a more positive manner. 3. First Impressions Something as simple as a handshake can create a lasting impression. A firm handshake will deliver the message that you are confident and strong. A weak handshake may leave the impression that you lack confidence or conviction. To help establish a good impression, delivering the right body language is essential. Eye contact, deliberate arm and hand gestures, slow and clear manner of speech, and a moderate to low tone will inspire confidence and leave others feeling good about meeting you for the first time. 4. Setting the Tone Body language often sets the tone of a conversation or discussion – an essential aspect of effective communication. Speakers will often make a conscious effort to use body language as an efficient way to control the conversation and promote positive communication. Good posture suggests a sense of confidence, while excessive hand and arm gestures give off an air of excitement or urgency. Direct eye contact lets the listener know the speaker is speaking directly to him. It also conveys honesty and interest, but, again, remember that there is a difference between maintaining eye contact and staring. Instructional Material for Page 27 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca When writing up a speech, most people pay close attention to word choice. It is equally important to consider what your body language will communicate – and what gestures to avoid. 5. Ten Ways to Use Body Language for Effective Communication a. Control the Emotions Behind It- One way to transform your body language into an effective communication tool is to understand and manage the emotions behind the message you wish to deliver. If you begin to feel angry, take a deep breath and a moment to collect yourself. Remember that if you give in to your anger, you are likely to say and do things you’ll regret later. If happiness and enthusiasm are what you want to communicate through body language, find where those emotions occur naturally and they will show through. b. Open Stance-A hip-width stance is the most welcoming. Feet too close together may demonstrate a closed nature or discomfort in standing. When the feet are too wide, the stance may suggest aggressiveness. Hip-width stance communicates balance and grounding. c. Arms by the Side- Arm usage can make or break a conversation. Too many gestures may decrease credibility or cause discomfort in your audience. Closed arms can communicate a closed, aggressive nature or suggest you are not open to the opinions of others. Placing the arms by the side of the body demonstrates a relaxed, open nature. You may need to practice this until it feels natural. d. Open Hands- Emotions are often expressed with hands. Highly active, fidgeting hands may suggest nervousness. Clenched hands or tense fists portray anger. A pair of clasped hands could reveal one’s insecurity. Open hands communicate openness, confidence, and relaxation. e. Good Posture- Standing straight communicates confidence more than anything else. Good posture requires thrown-back shoulders and an open chest. Arms should naturally fall at one’s sides. Our view of the world is much different with a straightened spine and a head held high. f. Shoulders Back-Shoulder position communicates quite a bit of information. Slumped shoulders may hint at insecurity or exhaustion. Shoulders that are straight and held back communicate confidence and openness. g. Lean Forward- Leaning toward your audience and into a conversation (but not too close!) will communicate trust, openness, and a desire to connect with others. They will feel that they are being heard and understood and therefore valued. This posture will create rapport, laying the groundwork for a relationship based on trust. Instructional Material for Page 28 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca h. Relaxed Face- The face reveals much about a person’s emotions. The mouth, cheeks, nose, eyes, and forehead all send messages to the person standing in front of us. Keeping the entire face as relaxed as possible allows people to perceive us as open and welcoming. When the forehead is wrinkled, eyes are narrowed, teeth are clenched, or nostrils are flared, an audience will be more likely to perceive aggression or negativity. i. Smile- There is no better way to convey a positive attitude than with a smile. However, for many, a perpetual smile doesn’t come naturally. In this case, awareness and practice must be implemented regularly in order to remind yourself to relax your face and give a friendly smile. Smiles provide the most impact when they are authentic and use the entire face, crinkling the eyes and raising the cheeks. j. Soft Eyes- As the famous saying goes, the eyes are the mirror to the soul. Conveying soft eyes can be tricky, but try to be aware of how much emotion and information your eyes express. Both the positioning of the facial muscles around the eyes (squinting, narrowing, widening), as well as the overall quality of the look given by the eyes themselves (shining, dull, unfocused), provide strong messages. Underlying emotions are most strongly conveyed through the eyes. Electronic communications – via email, texting, and social media – are the gold standard in business, but it’s important to understand when each mode is appropriate. Being able to master your communication skills will make you feel great. Imagine the pleasure of success when you are able to give a presentation confidently, negotiate deals to your satisfaction, marvel at how seamlessly and effectively your teams work together, and watch as your business consistently achieves its well- planned and communicated goals. Other Communication Skills Communication skills encompass far more than simple verbal and non-verbal communication, even in a wide range of circumstances. Presentation Skills Many of us only use presentation skills infrequently. However, there will probably be times in your life when you need to present information to a group of people, either in a formal or informal setting. Instructional Material for Page 29 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Presentations are far more than simply standing up in front of a screen and talking your way through a set of slides. They also include the ability to get your point across in meetings, both small and large, and even pitching your business idea to a potential investor. Writing Skills Communication skills are not limited to direct interaction with other people and the spoken word. The ability to write clearly and effectively is also key to communication. This set of skills should not be limited to journalists or professional authors. Poor written communication can be frustrating for the reader and potentially damaging for the author – would you buy a product from a website peppered with spelling mistakes, or full of incomplete or unclear sentences? Personal Skills Personal Skills are the skills that we use to maintain a healthy body and mind. But they can also enhance communication. For example, Improving Your Self-Esteem and Building Your Confidence can help you to feel more positive about yourself and your abilities - including your ability to communicate. And feeling positive is the first step to acting more positively, and therefore effectively. By having a deeper understanding of yourself and a more relaxed and positive outlook on life you are more likely to be charismatic, a trait that can further aid the communication process. Our page What is Charisma? explains this in more detail. Activities/Assessments: We may already have a good idea of areas that we need to develop. However, it is worth seeking feedback from other people, because it is easy to develop ‘blind spots’ about ourselves. You might also find it useful to do our Interpersonal Communication Skills Self-Assessment. Answer each statement honestly, thinking about your likely behavior. Instructional Material for Page 30 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Always or Never or Nearly Always Often Sometimes Rarely Hardly Ever I am often thinking of something witty Always or Never or to say in response while listening. Nearly Always Often Sometimes Rarely Hardly Ever Always or Never or I try to have the last word on a subject. Nearly Always Often Sometimes Rarely Hardly Ever When communicating with others, I pay attention to non-verbal signals - body Always or Never or language, facial expressions and Nearly Always Often Sometimes Rarely Hardly Ever gestures. I nod my head and use other gestures Always or Never or and facial expressions to show that I’m Nearly Always Often Sometimes Rarely Hardly Ever interested in what is being said. I finish people’s sentences for them, Always or Never or when they pause and I know what they Nearly Always Often Sometimes Rarely Hardly Ever are going to say. I make eye contact with others while Always or Never or listening. Nearly Always Often Sometimes Rarely Hardly Ever I will interrupt the speaker if I disagree Always or Never or with a statement they have made. Nearly Always Often Sometimes Rarely Hardly Ever I sit and listen with my legs and arms Always or Never or folded in front of me. Nearly Always Often Sometimes Rarely Hardly Ever Instructional Material for Page 31 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Always or Never or Nearly Always Often Sometimes Rarely Hardly Ever I get bored with conversations easily - Always or Never or most people have nothing interesting to Nearly Always Often Sometimes Rarely Hardly Ever say. I decide whether or not to listen based on Always or Never or the speaker’s appearance and how they Nearly Always Often Sometimes Rarely Hardly Ever talk. When I have something to contribute to a Always or Never or conversation, I'll interrupt the speaker to Nearly Always Often Sometimes Rarely Hardly Ever make my point. I offer verbal signals while listening, Always or Never or things like, ‘Go on… ’ or ‘Uh huh’ to Nearly Always Often Sometimes Rarely Hardly Ever encourage the speaker to continue. Instructional Material for Page 32 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 5: Public Speaking Introduction: The fear of public speaking, perhaps one of the most common fears, is nothing to be ashamed of. It’s important to overcome this fear, however, since public speaking is necessary in many areas of our life. Whether you’re acting as a salesperson, pitching to investors, or giving a pep talk to your employees, public speaking may be mandatory for your business goals. Fortunately, if you experience anxiety about public speaking, you’re not alone and there are many ways you can overcome your anxiety. Learning Objectives: After successful completion of this module, you should be able to: Use different tips/techniques; and Apply techniques to be an effective pubic speaker Course Materials: When it comes to public speaking, preparation is the main key to success. Know your subject matter so well that speaking about it comes naturally. Public speaking anxieties are exceedingly common. To beat them, avoid focusing on the negatives and practice positive self talk and visualization. Keep in mind that your audience isn’t likely to pick up on your butterflies. Be Prepared Do you know what most highly successful speakers have in common? They practice and prepare their presentations as if every time were the first. You have to admit, it is a terrible feeling to stand unprepared before an audience that expects an excellent speech. Being prepared is really about knowing the subject of your presentation so well that speaking about it comes naturally; there is no need for memorization because you know what you are talking about. Instructional Material for Page 33 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca In fact, memorizing your presentation word-for-word could actually hurt you. If you are distracted or interrupted, you may lose your train of thought, disrupting your speech. This may cause you to panic and to have an even more difficult time trying to remember what you were going to say next. Your audience may come to the conclusion that you lack authority on the subject matter and you will lose credibility. To avoid this situation, really aim to understand the points you want to explain. That way the cues you see on your presentation slides or note cards will only serve to guide your presentation by reminding you to follow your predetermined structure. It’s also worth mentioning that if you plan on using any props (projectors, laser pointers, survey tools, etc), it is useful to test them out before your presentation so you don’t run into any nasty surprises. Stay Positive Individuals with public speaking anxieties will often allow their insecurities to take over. Rather than making a habit of putting yourself down, practice positive self-talk. You may find that this practice greatly reduces your anxiety. Positive visualization is another tool that may help you get over your public speaking anxieties. Sitting down in a quiet place, closing your eyes and visualizing yourself giving a fantastic speech or presentation where everything goes perfectly may prove very beneficial. Try to be very detailed in your imagination in order to really feel the success of your presentation. Do this every day for a few minutes when you wake up and before going to bed in the days leading up to your scheduled speech. Tell a Story Everyone loves a good story. People have been telling stories long before one was ever written down. A story captivates like few other communication tools. You can tell stories in your business dealings, too. Doing so can be helpful when you have a difficult concept that you want people to fully understand or you want to sell an idea. After all, public speaking Instructional Material for Page 34 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca is largely about selling ideas, and the best way to connect with people is through their emotions. Storytelling can create that connection. How do you tell a business story? You can tell people a story about who you are, why you are here, and why the idea you are selling is good for them. Share something personal to create trust. Telling others about a personal flaw or something they may not know about you makes you, the business leader, more approachable and relatable. Inspire people with a vision of what could happen if you all worked together, painting a picture with your words. Draw all of their senses into the story so it becomes more vivid. Remember, though, that there is a difference between a story and a lie. Be authentic. Don’t be Self-Conscious If you’re like most people who suffer from public speaking anxiety, you probably worry that your discomfort is visible to others. While this is a common concern, it’s important to keep in mind that in most cases your fear is not visible to people in the audience. Even if you have the typical hand-shaking, knee-trembling, butterflies-in-your-stomach feeling, chances are your audience can’t tell at all. Constantly focusing on whether or not your audience is noticing your anxiety will only make you more nervous. If you do slip up in an obvious manner, just smile, make a quick humorous comment, and move on. When you deliver the rest of the presentation flawlessly, your audience won’t even remember what went wrong, and if they do, they’ll also remember how gracefully you handled yourself. Seek Professional Help In reality, public speaking anxieties are very common. As a result, there are a variety of public speaking courses and classes that can help you with your public speaking anxiety. In addition to being able to offer you more tips on how to reduce your public speaking anxiety, a good public speaking course will offer feedback and a safe place to practice your public speaking skills. As the saying goes, practice makes perfect. Not only that, but when you take a public speaking course, you’ll have the opportunity to meet other individuals with similar public speaking anxieties. Such a Instructional Material for Page 35 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca setting can provide not only an outlet for your fears, but also a fantastic form of emotional support. Even if your public speaking fears feel impossible to overcome, it’s important to remember that, as with so many other activities, effective public speaking is a skill that can be developed with the proper training, techniques, practice and attitude. Storytelling is a powerful communication tool; it helps you connect to others through shared emotions and experiences. This connection helps an audience to put trust in you. There’s no shame in experiencing public speaking anxiety, and there’s even less shame in seeking professional help to remedy the issue. A course or class in the field can do wonders to help improve confidence and enhance speaking skills. Activities/Assessments: Please answer the following questions. 1. Why is it important for business professionals to overcome their fear of public speaking? 2. What’s the most important component of success in public speaking? 3. Why is it so important to test out any props – such as laser pointers, survey tools, or projectors – beforehand? 4. Rather than letting public speaking anxieties take over, what techniques can serve to reduce anxiety? 5. How can telling a story during a speech benefit its outcome? Instructional Material for Page 36 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca MIDTERM Examination Subject Title: ENTREPRENUERIAL BEHAVIOUR Subject Code: ENTR 20013 Semester: _______________________ Name: _________________________________ Score: ______________ Year & Section: _____________________________ Date: _______________ I. Please answer the following questions and explain your answer. a. How do qualities and abilities such as charisma, staying calm in a pinch and being able to clearly express oneself affect others around us? b. Why is it important to create trust in business relationships? c. Why is it beneficial to look for signs of sharp interpersonal skills in potential new hires? d. In practical terms, how do effective communication skills benefit the business owner? e. How does a business benefit from its employees' enhanced communication skills? f. What is the difference between listening and Active Listening? g. What can a refined talent for active listening help business leaders accomplish? h. How does one use body language to convey interest? i. Is an audience likely to notice a speaker’s nervousness? j. How can taking a course in public speaking serve to reduce anxiety? Good luck and God bless. Instructional Material for Page 37 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 6: Persuasion and Negotiating Skills Introduction: Persuasion is one of the key communication techniques used in businesses around the world. It’s often employed to motivate others to come to an agreement or accomplish goals. Regardless of how big or small the issue, effective persuasion comes down to three things: knowing what you are talking about, knowing your audience, and being aware of subtle persuasion techniques. Learning Objectives: After successful completion of this module, you should be able to: Know the difference between persuasion vs negotiation; Use Subtle Persuasion Techniques; and Know and apply different steps involved in business negotiation Course Materials: For effective persuasion, know your subject matter, know your audience, and be aware of subtle persuasion tactics. Knowing all sides of a topic will help you achieve your desired ends. Having a good understanding of the audience helps a speaker understand how best to approach them. Subtle tactics provide an extra push for persuasion. Established persuasive techniques – such as playing upon others’ established beliefs or inviting silence – have been proven to enhance any persuasive argument. These may be subtle, but they’re powerful. There are many steps involved in business negotiation, but focus on these key items when working toward a win-win solution: k. Understand that the ultimate win-win may not be what you thought it was. In that situation, be prepared with alternatives. l. Be willing to walk away; when a win-win can’t be reached, walking away is often the best solution. Instructional Material for Page 38 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca m. Ask the right questions; understand what the other party wants from both a material and an emotional perspective. n. Finally, follow up, measure, and evaluate: the negotiation does not end with a handshake – that is often just the beginning. Know Your Subject Matter Exercising credibility is one of the best ways to persuade an audience. In other words, know your subject matter. Know more about the topic than do your objects of persuasion. Know the good, the bad, and the ugly. Know all sides and know how to use them in order to achieve your desired ends. Sometimes people think that in order to persuade someone to do something, they need to make an attractive offer. Attractiveness helps, but what helps more is to make understandable and relatable statements. If a person can understand the complete nature of a product, system, or decision and how it relates to them, they are more likely to be persuaded. Know Your Audience If you are trying to persuade someone in business, it’s not only important to understand the topic for persuasion, it’s also important to know who you are persuading. Everyone responds to various communication styles differently. For example, some people may respond to aggressive persuasion tactics and others may shut down when approached in such a direct manner. The best way to learn more about your counterpart is to ask questions. If possible, ask about your subjects’ likes and dislikes. Find out where they are from and a bit about their family life. Ask about their careers and favorite hobbies. Ask them about their goals and future ambitions. Get to know them well. Use Subtle Persuasion Techniques There are several techniques that will enhance any persuasive argument. These are subtle yet very powerful, and one may be all that’s necessary to persuade an audience. 1. Reach Out and Touch Them A brief touch on your subject’s arm creates a connection. Such a simple, brief gesture demonstrates trust on your end and has the potential to build his trust in you. In a 1980 study by Willis and Hamm, Instructional Material for Page 39 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca participants were asked to sign a petition. It was observed that 55 percent of those who had not been touched signed the petition. However, when participants were touched once on the upper arm, the number of petitioners went up to 81 percent. 2. Communicate Details with Caution Stay away from asking technical questions that may confuse or dissuade your audience. If a prospect knows something you don’t, it could reduce your credibility and negatively impact your ability to persuade. 3. Play upon Established Beliefs The shortest distance between two points is a straight line. If you can align your argument with your audience’s established beliefs, you are halfway to your goal. 4. Invite Silence Silence can create an uncomfortable moment during a discussion. Often when one person stops speaking, another will rush to fill the silence. Such an attempt to fill the silence might give you all the information you need to drive your point home. Methods of persuasion are used daily in business. Sometimes a request is small, sometimes big. Regardless of the request, it’s important to understand and employ key techniques to persuade effectively and encourage others to make your ideas their own. Build Stronger Relationships as You Negotiate Kristen was the manager of a retail store in the heart of a busy city. Her store was part of a retail chain that sold furniture to people who were in pain and seeking comfort. Each month, her store had to reach an established sales goal. Today was the last day of the month and the store was $3,000 short of its goal. Frustrated, she closed her eyes and wondered if it were even possible to get anywhere near the $3,000 mark. When she opened her eyes fifteen seconds later, the headlights of a yellow Hummer approached the store’s parking lot. They were back. Throughout the week, this couple had visited her store on numerous occasions, looking for a new bed. The wife was in extreme pain and desperate for a better Instructional Material for Page 40 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca night’s sleep. Kristen knew that the best bed for this couple would cost them over $4,000. If she sold the bed that night, she could achieve her sales goal. The couple owned a used car dealership 200 miles west of her store, but Kristen knew that selling the bed would require tough negotiation. She wanted the sale, however, and she was up for the challenge. Two hours later, the couple left the store. The bed had been ordered. Kristen had made the sale. Your Win Isn’t the Only Win In Kristen’s scenario, her obvious win was making the sale. She’d wanted to reach her sales goal no matter what it took, but she had learned in the past that getting the sale didn’t necessarily mean success. Kristen had negotiated sales in the past that she later wished had never happened – situations that had resulted in deliveries gone wrong and returned purchases.. A win-win indicates that each party gets what they need, not necessarily what they want, and Kristen knew she had to go into each negotiation with options. Options provide breathing room and create flexibility during negotiation. Often, having more than one solution to a negotiation creates a relaxing atmosphere, allowing negotiators to relax as a decision is reached. It’s an excellent idea to have between one and three alternatives prepared in addition to the ideal outcome. Researching those alternatives before the negotiation will only create a stronger argument and greater credibility. Kristen’s alternatives were to sell a less expensive bed, sell wedges and pillows that would provide similar support with an existing mattress, or not sell them anything at all. Why would not selling anything at all potentially create a win-win solution? Be Willing to Walk Away Desperation is never an attractive quality, but it is absolute poison to any negotiation. When someone is tied to a specific outcome and presents inflexible terms, the results could be catastrophic. Under duress, many people will come to a conclusion without bothering to consult their better judgment. If it doesn’t work out, worse problems and challenges may ensue. Alternatives are an important part of every negotiation. Simply walking away from a deal is sometimes the smartest alternative. During her negotiation with the elderly couple, Kristen knew that she had the option to lower the price as much as necessary. She still might have reached her sales goal, but she would have been sacrificing more than money: her integrity was at also at stake. Instructional Material for Page 41 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Kristen also knew that she was negotiating with a used car salesman – someone who negotiates for a living. If this business relationship continued past this meeting, it could require a lot of energy. The last time she had made a sale to a fellow salesperson, he’d kept her busy for months with complaints about his purchase. If she lost the sale, she might lose money, but she would retain peace of mind. Kristen realized it might be best to walk away altogether. Ask the Right Questions She didn’t need to walk away, though. Kristen had discovered long ago that asking the right questions was the secret to negotiating with a tough client. The more she inspired the couple to discuss what they needed and why, the more they sold themselves on the product. This holds true in any negotiable situation. When we get a real feel for what a client needs and wants, we can come more easily to a solution that fulfills both their needs and ours. We must learn what someone wants from both a material and emotional standpoint. Discovering the material standpoint is easy. The emotional standpoint can be ascertained by asking questions. It’s said that when someone expresses the desire to buy a car or house, he is actually in need of comfort and security. An employee might ask for a raise, but what she might really want is acknowledgement. These are the emotional needs behind the material ones. If we can find out the deeper desire behind what a potential client is asking, we will be better able to achieve our ideal outcome. In Kristen’s situation, the couple decided to go home and “sleep on it” before making a final decision. Kristen knew it was time to ask not just the right question, but the most important one: “After all of the time we’ve spent together, what could possibly change between right now and tomorrow morning?” The husband and wife turned around and said, “Sold!” Kristen made her sale; the couple got their bed. After two hours of negotiation that went long past closing time, Kristen managed to create a win-win situation. Follow Up, Measure, and Evaluate Negotiation does not end when an agreement is reached. In many ways, an agreement is merely the beginning. Once an agreement is reached, both parties must deliver Promises need to be kept. Communications must remain open. In many cases, money needs to change hands. Instructional Material for Page 42 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Once a negotiation is complete, it’s important to create a process to measure and evaluate the results. This way, both parties can evaluate how well each agreement was handled. When will a raise be given? How long will it take to determine financing? Should a follow-up meeting take place to determine overall satisfaction? Is further negotiation required? Can the outcome be measured by time or by dollars? For Kristen’s customers, it was two weeks before the bed was delivered. After those two weeks, there was an adjustment period, during which the couple questioned their purchase. Kristen stayed in touch with them over the next month to monitor whether or not the bed fulfilled their wants and needs. The customers kept their bed. Activities/Assessments: Please answer the following key questions/review: 1. Persuasion is most effective when this occurs: 2. How does asking questions benefit a persuasive argument 3. When making a persuasive argument, why is it a good idea to share complicated technical details with caution? 4. What can happen when you invite silence into a persuasive argument? 5. Why is it important to follow up, measure, and evaluate an agreement after it’s been made? Instructional Material for Page 43 of 71 ENTR 20013: ENTREPRENEURIAL BEHAVIOR /mahca Lesson 7: Assertive Entrepreneur Introduction: Assertiveness is a skill regularly referred to in social and communication skills training. Being assertive means being able to stand up for your own or other people’s rights in a calm and positive way, without being either aggressive, or passively accepting ‘wrong’. Assertive individuals are able to get their point across without upsetting others, or becoming upset themselves. Although everyone acts in passive and aggressive ways from time to time, such ways of responding often result from a lack of self-confidence and are, therefore, inappropriate ways of interacting with others. This lesson examines the rights and responsibilities of assertive behavior and aims to show how assertiveness can benefit you. Learning Objectives: After successful completion of this module, you sho

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