Good Pricing Decisions


Pricing decisions draw on many areas of marketing expertise. It requires a comprehensive understanding of the forces that shape the market, including competitive  interactions, technology and consumer psychology. Sometimes these forces interact and are likely to put downward pressure on prices, such as substitutes, technological advances, price-driven competition, customer experience, and changes in internal focus, such as sales forecasts. Customer makes it difficult to raise prices, as repeat customers’ ability to perceive incremental value of a company’s product or service diminishes over time, especially as substitute or competitive products emerge. Increased internal expectations in the form of expected sales increases or new budgets can send prices on a downward spiral. Customer price sensitivity may also serve  to keep prices in check, especially in the presence of available competitive substitutes or among a company’s marginal customers.

Even in a deflationary economy, there are opportunities for keeping prices from dropping or even for raising prices. However, customers must perceive that these enhancements deliver a genuine, meaningful benefit, or they will continue to seek lower cost alternatives.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Advertisements

People’s Self-Worth


When people fail, let them know their failure does not diminish their worth as a person or their worth to the organization. For some of your people, when you treat them in this way, you will be acting as the supportive, protective parent they never had. You will be the first person ever to provide them the luxury of being able to fail without being unduly chastised or degraded as a person.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Resistance to Change


Resistance to change may develop for a variety of reasons. A common one is that people do not know how to change or do not understand why it is important to do so; they may perceive their relative social economic status endangered or diminished. Another reason is that an individual might feel psychologically threatened, his self-concept endangered. Another important but often overlooked reason for some resistance is that the change involved is not a good idea. Not all change is good, and some resistance can be considered as being intelligent.

Resistance to change occurs often more for social process than for technical change reasons. Thus, it is important that change agents understand in depth the psycho-social aspects of a particular system so that they will know how people will be effected and perceive the contemplated change. People often resist any changes that alter their customary social and working relationships. For this reason, technical and staff personnel who are concerned with developing new approaches must be alert to considering more than just the technical or logical value of their proposed ideas. If they hope to gain successful implementation, they must also consider the important social relationship dimensions of the change.

Resistance can be countered by trying to remove the causes or reasons for it and/or by increasing the pressure for change. Which of these two general approaches to take must be determined situationally; there is no easy answer as to which is better, and combined approach is probably to be preferred.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Positive Thinking and Reality


We have seen positive-thinking political candidates on the eve of a landslide defeat still insisting they can sense victory in spite of the polls. Positive thinking alone will not guarantee top marks for a student on his upcoming final exam, if he has never studied or attended classes. Positive thinking that is unsupported by any cooperative actions can become simply wishful thinking.

On the other hand best-trained people will never win if they lack positive mental images, because the resulting lack of confidence will always distract concentration and diminish ability.

The same powerful principles of imagery apply to enhancing performances in the working world. Rather than taking untrained young graduates and plunging into stressful work situations, enlightened companies are first investing in the building of positive images to enhance performance and confidence. Imagined experiences can be as good as real ones in building up a store of confidence.

In any job, a style of language can set the tone for a positive or negative approach. The power of words in establishing an image has long been recognized by public relations and promotion experts. However, even more influential than the choice of words to sell products or concepts to large audiences is the impact of the wording of our internal communications, otherwise known as “self-talk.”

With so much of the economy based on service industries, the positive attitude behind every employee’s smile becomes an essential ingredient for success in the workplace. An individual who thinks positively and gravitates towards positive-thinking friends and colleagues, or a corporation that consciously nurtures a positive culture, will always outperform those who wallow in doom and gloom.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Incentives for Professional Employees


Professional employees are those whose work involves the application of learned knowledge to the solution of the employer’s problems. They include lawyers, doctors, economists, and engineers. Professionals reach their positions through prolonged periods of formal study.

Making incentive pay decisions for professional employees can be challenging. For one thing, firms usually pay professionals well anyway; for another, they’re already driven—by the desire to produce high-caliber work and receive recognition from colleagues. In some cases, offering financial rewards to people like these may actually diminish their intrinsic motivation—not add to it.

However, that’s certainly not to say that professionals don’t want financial incentives, particularly those in high demand jobs like software and systems developers for information technology firms. Many are offering benefits that are highly attractive to professionals, including better vacations, more flexible work hours, equipment for home offices, and improved pension plans.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Conducting an Interview


You may not have the time or inclination to create structured situational interviews. However, there are several things you can do to increase the standardization of the interview or otherwise assist the interviewer to ask more consistent and job relevant questions. They include:

  1. Base questions on actual job duties. This will minimize irrelevant questions based on beliefs about the job’s requirements. It may also reduce the likelihood of bias, because there’s less opportunity to ‘read’ things into the answer.
  2. Use job knowledge, situational, or behaviorally oriented questions and objective criteria to evaluate the interviewee’s responses. Questions that simply ask for opinions and attitudes, goals and aspirations, and self-descriptions and self-evaluations allow candidates to present themselves in an overly favorable manner or avoid revealing weaknesses. Structured interview questions can reduce subjectivity and therefore the chance for inacurate conclusions, and bias. Examples of structured questions include: (a) situational questions like, “Suppose you were giving a sales presentation and a difficult technical question arose that you could not answer. What would you do?”; (b) past behavior questions like, “Can you provide an example of a specific instance where you developed a sales presentation that was highly effective?”; (c) background questions like, “What work experiences, training, or other qualifications do you have for working in a teamwork environment?”; (d) job knowledge questions like, “What factors should you consider when developing a TV advertising campaign?”
  3. Train interviewers. For example, review laws with prospective interviewers and train them to avoid irrelevant or potentially discriminatory questions and to avoid stereotyping minority candidates. Also train them to base their questions on job-related information.
  4. Use the same questions with all candidates. When it comes to asking questions, the prescription seems to be “the more standardized, the better.” Using the same questions with all candidates can also reduce bias “because of the obvious fairness of giving all the candidates the exact same opportunity.”
  5. Use rating scales to rate answers. For each question, provide a range of possible ideal answers and quantative score for each. Then you can rate each candidate’s answers against this scale. This ensures that all interviewers are using the same standards.
  6. Use multiple interviewers or panel interviews. Doing so can reduce bias, by diminishing the importance of one interviewer’s idiosyncratic opinions, and by bringing in more points of view.
  7. If possible, use structured interview form. Interviews based on structured guides usually result in the best interviews. At the very least, list your questions before the interview.
  8. Control the interview. Limiting the interviewers’ follow-up questions (to ensure all interviewees get the same questions), using a larger number of querstions, and prohibiting questions from candidates until after the interview are other “structuring” techniques.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Previous Older Entries