ENTR 30013: Entrepreneurial Behavior: Instructional Material FOR

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF BUSINESS ADMINISTRATION

DEPARTMENT OF ENTREPRENEURSHIP
INSTRUCTIONAL MATERIAL FOR
ENTR 30013:
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
Lesson 3: The Interpersonal Skills .............................................................................................................. 16
Introduction: ...................................................................................................................................................... 16
Developing Your Interpersonal Skills ........................................................................................................... 18
Lesson 4: Communication Skills .................................................................................................................. 23
Introduction: ...................................................................................................................................................... 23
Instructional Material for

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ENTR 30013: ENTREPRENEURIAL BEHAVIOR /mahca
Types of listening ............................................................................................................................................ 24
Body Language ............................................................................................................................................... 25
Other Communication Skills .......................................................................................................................... 29
Presentation Skills .......................................................................................................................................... 29
Writing Skills .................................................................................................................................................... 30
Personal Skills ................................................................................................................................................. 30
Lesson 5: Public Speaking............................................................................................................................. 33
Introduction: ...................................................................................................................................................... 33
MIDTERM Examination .................................................................................................................................... 37
Lesson 6: Persuasion and Negotiating Skills ........................................................................................... 38
Introduction: ...................................................................................................................................................... 38
Lesson 7: Assertive Entrepreneur ............................................................................................................... 44
Introduction: ...................................................................................................................................................... 44
Being Passive .................................................................................................................................................. 46
Being Aggressive ............................................................................................................................................ 47
Lesson 8: Resolving Conflict ........................................................................................................................ 49
Introduction: ...................................................................................................................................................... 49

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There are three main types of conflict. ........................................................................................................ 50
Resolving Conflict ........................................................................................................................................... 51
Lesson 9: Supervisory Behavior .................................................................................................................. 56
Introduction: ...................................................................................................................................................... 56
Types of Leadership ....................................................................................................................................... 57
The Formation of Values ............................................................................................................................... 58
Kinds of Values ............................................................................................................................................... 58
Lesson 10: Environmental Adaption and Organizational Effectiveness ........................................... 60
Introduction: ...................................................................................................................................................... 60
Organizational change ................................................................................................................................... 60
Planning and Executing Change Effectively ............................................................................................... 62
Kotter‘s Eight-stage Process for Change .................................................................................................... 64
FINAL EXAMINATION ...................................................................................................................................... 68
Course Grading System .................................................................................................................................. 71
References: ........................................................................................................................................................ 71

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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 disc
ussing. We have explicitly
linked ent repreneurship 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 r eflect on the personal aspects involved in
transforming an innovative idea into an entrepreneurial product.

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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;

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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).

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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:
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.

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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
employeremployee 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.
• 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.

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• 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.

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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?

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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.

• 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;

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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

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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 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

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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-
ofmotivation.html

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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?

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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.

• 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

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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

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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
solutionoriented. 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

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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
nonverbal 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.

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• 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 selfconfidence.
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.

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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,

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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.]
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?

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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.

• 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
misunderstanding another party‘s request or intention, or overlooking information that may be crucial
for making better business decisions.

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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.

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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.

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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.

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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.

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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.

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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.

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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.
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.

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Always or Never or
Nearly Always Often Sometimes Rarely Hardly Ever
I am often thinking of something witty to Always or Never or 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.
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
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
are going to say.
I make eye contact with others while Always or Never or listening.

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

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Always or Never or
I get bored with conversations easily -

Always or Never or most people have nothing
interesting to
say.
I decide whether or not to listen based on

Always or
Never or
the speaker‘s appearance and how they
talk.
When I have something to contribute to a

Always or Never or conversation, I'll interrupt the
speaker to
make my point.
I offer verbal signals while listening,

Always or
Never or
things like, ‗Go on… ‘ or ‗Uh huh‘ to
encourage the speaker to continue.

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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.

• 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.

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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

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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

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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.
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?

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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.

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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.

• 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.

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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,

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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

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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.

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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.

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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.
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?

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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.

• Know the difference passive, aggressive and assertive; and
• Use the technique to improve communication skills in general
Course Materials:
Effective communication is an essential aspect of success in business and completing transactions in

an efficient manner.
There are many ways to communicate in business, some better than others. By using passive
techniques, we show that we come from a place of receptivity and agreement. Aggressive techniques
demonstrate that we come from a place of dominance and demand. The preferred way to do business
– one that has the strongest positive impact on getting our needs met – is through assertive
techniques. Assertive techniques get the point across in a professional manner that is both easily
received and understood.

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Assertive communication tactics are those that best serve business dialogue. By communicating
assertively, business leaders are able to be both well-received and understood. Timing, word choice,
body language and levels of clarity all must be tweaked to ensure assertiveness. Effective
communication is not only about what to say; it‘s important to know when to say it – or when not to.
Tactful timing strategies serve to enhance one‘s credibility.
Assertiveness depends on word choice: assertive sentences are short and to the point. Rather than
making an aggressive attack, assertive language revolves around the self. For best results, firmly
state your position and begin with an I-statement before going on to involve others: ―I believe this
memo should be rewritten before it‘s sent to all departments. What do you think?‖
Again, we communication 80 percent of our meaning through body language, whether we mean to or
not. Therefore, we must practice assertive body language – relaxed arms, open palms, smooth facial
expressions, attentive eyes, a hip-width stance – in order to ensure our message is the one we
intend.
Without clarity, much of our intended message may be lost. Communication is impossible without it.
Speaking in such a manner as to allow our message to be understood the first time ensures we save
time and money by reducing redundancy and workload.
Assertiveness is being forthright, positive, insistence on the recognition of one's rights.

Assertiveness means standing up for your personal rights - expressing thoughts, feelings and beliefs
in direct, honest and appropriate ways.
It is important to note also that:

By being assertive we should always respect the thoughts, feelings and beliefs of other people. Those
who behave assertively always respect the thoughts, feelings and beliefs of other people as well as
their own. Assertiveness concerns being able to express feelings, wishes, wants and desires
appropriately and is an important personal and interpersonal skill. In all your interactions with other
people, whether at home or at work, with employers, customers or colleagues, assertiveness can help
you to express yourself in a clear, open and reasonable way, without undermining your own or others‘
rights.

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Assertive behavior includes:
• Being open in expressing wishes, thoughts and feelings and encouraging others to do likewise.
See our page on Managing Emotions.
• Listening to the views of others and responding appropriately, whether in agreement with those
views or not. See our page on Active Listening.
• Accepting responsibilities and being able to delegate to others. See our page on Delegation
Skills for more.
• Regularly expressing appreciation of others for what they have done or are doing. See our
page on Gratitude and Being Grateful.
• Being able to admit to mistakes and apologise.
• Maintaining self-control. See our page on Self-Control for more.
• Behaving as an equal to others. See our page on Justice and Fairness to explore further.
Being Passive
Responding in a passive or non-assertive way tends to mean compliance with the wishes of others
and can undermine individual rights and self-confidence.
Many people adopt a passive response because they have a strong need to be liked by others. Such
people do not regard themselves as equals because they place greater weight on the rights, wishes
and feelings of others. Being passive results in failure to communicate thoughts or feelings and
results in people doing things they really do not want to do in the hope that they might please others.
This also means that they allow others to take responsibility, to lead and make decisions for them.
When you respond passively, you present yourself in a less positive light or put yourself down in
some way. If you constantly belittle yourself in this way, you will come to feel inferior to others. While
the underlying causes of passive behaviour are often poor self-confidence and self-esteem, in itself it
can further reduce feelings of self-worth, creating a vicious circle.

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Being Aggressive
By being aggressive towards someone else, their rights and self-esteem are undermined.
Aggressive behaviour fails to consider the views or feelings of other individuals. Those behaving
aggressively will rarely show praise or appreciation of others and an aggressive response tends to put
others down. Aggressive responses encourage the other person to respond in a non-assertive way,
either aggressively or passively.
There is a wide range of aggressive behaviours, including rushing someone unnecessarily, telling
rather than asking, ignoring someone, or not considering another's feelings. Good interpersonal skills
mean you need to be aware of the different ways of communicating and the different response each
approach might provoke. The use of either passive or aggressive behaviour in interpersonal
relationships can have undesirable consequences for those you are communicating with and it may
well hinder positive moves forward.
It can be a frightening or distressing experience to be spoken to aggressively and the receiver can be
left wondering what instigated such behaviour or what he or she has done to deserve the aggression.
If thoughts and feelings are not stated clearly, this can lead to individuals manipulating others into
meeting their wishes and desires. Manipulation can be seen as a covert form of aggression whilst
humour can also be used aggressively.
You may find that you respond differently — whether passively, assertively or aggressively — when
you are communicating in different situations. It is important to remember that any interaction is
always a two-way process and therefore your reactions may differ, depending upon your relationship
with the other person in the communication. You may for example find it easier to be assertive to your
partner than to your boss or vice versa. However, whether it is easy or not, an assertive response is
always going to be better for you and for your relationship with the other person.
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 Speak without repeating
Students must find a short (300-500 word) transcript of a typical interaction between a customer and
an agent. Invite one of the learners to read out the transcript with you, with you reading the customer‘s
side. With a highlighters and ask them to highlight four words spoken by the agent in their transcript.
They should highlight longer words rather than common words like ‗you‘, ‗and‘, or ‗it‘.
Their challenge is now to read through the transcript again, without using any of the words that they
have highlighted. They will have to find new ways to get the same message across by rephrasing the
conversation. Do this once in front of the class, and then pair the agents off to do it together.
This task gets trainees thinking on their feet, and strengthens the adaptability of their vocabulary

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Lesson 8: Resolving Conflict
Introduction:
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.
Interpersonal conflict is a fact of life and can arise in almost any sphere, from organisations through to
personal relationships. Learning to resolve it effectively, in a way that does not increase your stress
levels, is therefore important for everyone. Those with good conflict resolution skills generally help
organisations and groups to work more effectively.

• Know the three (3) different types of conflict;
• Use and apply different conflict strategies; and • Resolve conflict
smoothly and effectively
Course Materials:
Peace in the workplace begins with us. Rather than reacting defensively to an unpleasant office
environment, we should avoid taking any negativity personally and work toward an ideal situation
instead. Resolution can be achieved through assertive communication, making an effort to
understand others, and establishing healthy boundaries.
By communicating assertively, we avoid making those around us defensive. We can address

problematic behavior without creating bad feelings by tackling the issue with an assertive message.
It‘s

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important to both create boundaries concerning what we will and won‘t tolerate and to communicate
those boundaries with others. If those boundaries are crossed, we must be willing to protect them in a
constructive manner – through assertive communication.
When a conflict arises, we should seek to understand our role in it as well as that of others. By
understanding our own role in a conflict, we can better work toward a resolution. By seeking to
understand the conflict from the perspective of others, we can better reach a compromise.
Interpersonal conflict is broadly defined as a conflict between two or more people. Chambers
English
Dictionary defines conflict as ―a violent collision: a struggle or contest: a battle: a mental struggle‖.
Interpersonal conflict may therefore start with a simple disagreement. To become ‗conflict‘, however,
those involved must escalate it beyond that disagreement to something considerably more.
In a work situation, interpersonal conflict is generally defined as what happens when one person or
group of people prevents, or attempts to prevent, another person or group from achieving their goals.
The first step to conflict resolution is to decide what strategy you are going to use to address it.
However before you can do that, you need to identify the root source of the conflict, and therefore its
type.
There are three main types of conflict.

1. Personal or relational conflicts are usually about identity or self-image, or important aspects of
a relationship such as loyalty, breach of confidence, perceived betrayal or lack of respect.
2. Instrumental conflicts are about goals, structures, procedures and means: something fairly
tangible and structural within the organisation or for an individual.
3. Conflicts of interest concern the ways in which the means of achieving goals are distributed,
such as time, money, space and staff. They may also be about factors related to these, such
as relative importance, or knowledge and expertise. An example would be a couple
disagreeing over whether to spend a bonus on a holiday or to repair the roof.

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Resolving Conflict
It is important to emphasise that dealing with conflict early is usually easier, because positions are not
so entrenched, others are less likely to have started to take sides, and the negative emotions are not
so extreme. The best way to address a conflict in its early stages is through negotiation between the
participants.
Later on, those in conflict are likely to need the support of mediation, or even arbitration or a court
judgement, so it is much better to resolve things early. There are five main strategies for dealing with
conflicts, all of which can be considered in terms of who wins and who loses.
5 Strategies for Dealing with Conflict

1. Compete or Fight
This is the classic win/lose situation, where the strength and power of one person wins the conflict. It
has its place, but anyone using it needs to be aware that it will create a loser and, if that loser has no
outlet for expressing their concerns, then it will lead to bad feeling. This strategy is probably best only
used where little or no further contact is necessary between the individuals or groups concerned.
2. Collaboration
This is the ideal outcome: a win/win situation. However, it requires input of time from those involved to
work through the difficulties, and find a way to solve the problem that is agreeable to all. This may be
hard work, especially if the positions have already become entrenched, but it is also likely to be the
best possible starting point early in a conflict situation.
3. Compromise or Negotiation
This is likely to result in a better result than win/lose, but it‘s not quite win/win. You could call it a
noscore draw. Both parties give up something in favour of an agreed mid-point solution. This
effectively results in a solution that pleases nobody very much, but hopefully will not offend or upset
anyone too much. It takes less time than collaboration, but is likely to result in less commitment to the
outcome because it is nobody‘s preferred option.

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4. Denial or Avoidance
This is where everyone pretends there is no problem. This strategy is used surprisingly often and can
be quite effective. It is particularly helpful if those in conflict need time to ‗cool down‘ before any
discussion, or if the conflict is unimportant and will simply resolve itself given time.
However, it cannot be used if the conflict won‘t just die down. Under these circumstances, using this
strategy will create a lose/lose situation: there will still be bad feeling, but no clearing the air through
discussion. It results, in Transactional Analysis terms, in ‗I‘m not OK, you‘re not OK‘. This can result in
serious stress for those involved.
5. Smoothing Over the Problem

On the surface, harmony is maintained but, underneath, there is still conflict. This is similar to the
situation above, except that one person is probably OK with this smoothing, while the other remains in
conflict, creating a win/lose situation again. It can work where preserving a relationship is more
important than dealing with the conflict right now. It is, however, not very useful if one person, or
others outside the conflict, feel that the situation must be resolved.
Essential Skills for Handling Conflict

There are a wide range of useful skills for handling conflict. Possibly the most important is
assertiveness. You need to be able to express your views clearly and firmly, but without aggression.
One model to use is ‗Describe the situation, Express your feelings and Specify what you want done‘,
but for more information, and ideas for developing your assertiveness, see our Assertiveness section.
It is also helpful to think about how you communicate about the situation. When you want to talk about
the effect of the conflict or the other person‘s behavior, it is most effective to use ‗I‘ statements. In
other words, you should explain the effect of particular behaviors or actions on you.
You also need to practice active listening to ensure that you fully understand the position of those
involved in the conflict. This is true whether you are an active participant or a potential mediator.
Check out our page on Active Listening for more information.

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It is also helpful to understand and recognize emotion in both yourself and others. Emotions are never
good or bad, but simply appropriate or inappropriate. A useful skill in managing conflict is to be able to
help others recognize when particular emotions are inappropriate, and when it is likely to be fine to
express them. For more, look at our pages on Managing Emotions and Understanding Others. You
might also find it helpful to read our pages on Emotional Intelligence.
One particular part of emotional intelligence which is likely to be particularly useful is empathy. This is
the skill of being able to put yourself in other people‘s shoes, and supporting those involved to do the
same.
Finally, in handling conflict both as a direct participant and as a potential mediator, it is important to
know your limitations. If you reach a point where you don‘t feel confident that your intervention is
going to help, then it‘s OK to step back and ask for help. Sometimes you might need to involve
someone else, such as a trained mediator, and that‘s fine. It is much better to ask for help than to step
in and make matters worse.
Individual activities:
 Use the ‘Welcome, Overcome, Question’ technique for objection handling.
One of the hardest things for a new agent to learn is how to get past an objection. Particularly in
service roles, helping a customer without totally giving in to them is one of the most important lessons.
A popular approach is the WOQ technique: Welcome, Overcome, Question. It teaches the agent to
engage with the objection, counter it, and take control of the situation. A WOQ response to an
objection around pricing would look something like this:
Welcome – I appreciate you raising this with me…

Overcome – Our pricing reflects a competitive offer with no hidden costs…

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Question – Have you used a service like this before…?
Gather real objections you‘ve encountered for the group to practise with.
 Ask students why they should empathise
Empathy is vitally important to how contact centres run. The ability to support a customer‘s emotional
needs can be even more important than finding them a quick solution. It‘s tough to teach, though, and
agents can understandably have trouble empathising with the large numbers of people they interact
with. What‘s more, empathy is most important in situations where it is hard to achieve – with difficult
customers.
Come up with some scenarios where a customer is being rude or uncooperative. Write them out like
this: ―Mrs A has called to complain about her direct debit. She is very impatient because_______.‖
The student‘s job is to imagine a reason for Mrs A‘s impatience, such as ―She is very impatient
because she recently lost her job.‖
The aim of this lesson is not to help agents guess the causes of stress in customers‘ personal lives.
Instead, it helps agents to remember that all customers have stress factors to deal with, and that they
still need to be treated even-handedly.

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Lesson 9: Supervisory Behavior
Introduction:
Leadership is the art or process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of group goals. It is the relationship in which one person
influences others to work on related tasks. It is a managerial activity that maximizes productivity,
stimulates creative problem solving and promotes morale and satisfaction. It is the art and process of
getting people do or not do certain activities. It is the central function of managing any organization.
In social science literature, leadership appears in three meanings: 1) attribute of a position; 2)

characteristics of a person; and 3) category of a behavior. Studies of leadership have produced
theories involving traits, situational interaction, function, behavior, power, vision and values, charisma,
and intelligence, among others.

• To discuss Understanding the Leadership Process;
• To Develop leadership skills; and
• To know how to Acquire and use power in organization
Course Materials:
Leadership is the ability to consistently deliver extraordinary results by making decisions about values
and resources. It is also the capacity for setting strategy – allocating scarce resources in a
differentiated manner that leads to sustainable results.
Leadership is perceived and described as any or a combination of the following elements:

• As an act or behavior As personality and its effect
• As an effect of interaction As an attribute of a position

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• As an exercise of influence As an art
• As a form of persuasion
• As an act of inducing compliance
• As a power relation
• As a focus of group processes
• As an instrument of goal achievement
• As an initiation of structure
• As a differentiated role
Types of Leadership
1. Transactional Leadership
Managers using the transactional leadership style receive certain tasks to perform and provide
rewards or punishments to team members based on performance results. Managers and team
members set predetermined goals together, and employees agree to follow the direction and
leadership of the manager to accomplish those goals. The manager possesses power to review
results and train or correct employees when team members fail to meet goals. Employees
receive rewards, such as bonuses, when they accomplish goals.
2. Transformational Leadership
The transformational leadership style depends on high levels of communication from management to
meet goals. Leaders motivate employees and enhance productivity and efficiency through
communication and high visibility. This style of leadership requires the involvement of
management to meet goals. Leaders focus on the big picture within an organization and delegate
smaller tasks to the team to accomplish goals.
3. Transcending Leadership
A variant of transforming relationship, is a dynamic leadership in the sense that leaders throw
themselves into a relationship with followers who will feel ―elevated‖ by it and often become more
active themselves, thereby creating new cadres of leaders. Transcending leadership is leadership
engaged.
4. Reform Leadership
One that seeks change through gradual
means. A reformer is ―an insistent exclusivist particularist.‖

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5. Revolutionary Leadership
One who seeks complete, pervasive, profound and radical transformation of the entire social,
economic or political system.
6. Visionary Leadership- Moves people toward shared dreams.
7. Coaching Leadership- Connects what a person wants with the organizational goals.
8. Affiliative Leadership- Creates harmony by connecting people to each other.
9. Democratic Leadership- Values people‘s output and get commitment through participation.
10. Pacesetting Leadership- Meets challenging and exciting goals
11. Commanding Leadership- Soothes fear by giving clear directions in an emergency.
The Formation of Values

Our character and personality are molded through the attitudes and behavior of the people who raise
us, whether they‘re our parents or other relatives. Their behaviors determine in large part what will
subsequently become our most important beliefs and principles.
First we learn to appreciate things that fulfill our basic needs, but we value especially those people
that provide them to us. Their behavior towards us becomes the main reference of what is valuable.
Values are often confused with habits, and many parents hope that school will form the values that
were not instilled at home. This is not possible, because school does not fulfill the basic needs of
life… that is the responsibility of those who raise us.
We can speak of universal values, because ever since human beings have lived in community, they
have had to establish principles to guide their behavior towards others. In this sense, honesty,
responsibility, truth, solidarity, cooperation, tolerance, respect and peace, among others, are
considered universal values.
Kinds of Values
1. Personal Values

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These are considered essential principles on which we build our life and guide us to relate with other
people. They are usually a blend of family values and social-cultural values, together with our own
individual ones, according to our experiences.
2. Family Values
These are valued in a family are considered either good or bad. These derive from the fundamental
beliefs of the parents, who use them to educate their children. They are the basic principles and
guidelines of our initial behavior in society, and are conveyed through our behaviors in the family,
from the simplest to the most complex.
3. Social-Cultural Values
These are the prevailing values of our society, which change with time, and either coincide or not with
our family or personal values. They constitute a complex mix of different values, and at times they
contradict one another, or pose a dilemma.
4. Material Values
These values allow us to survive, and are related to our basic needs as human beings, such as food
and clothing and protection from the environment. They are fundamental needs, part of the complex
web that is created between personal, family and social-cultural values. If exaggerated, material
values can be in contradiction with spiritual values.
5. Spiritual Values
They refer to the importance we give to non-material aspects in our lives. They are part of our human
needs and allow us to feel fulfilled. They add meaning and foundation to our life, as do religious
beliefs.
6. Moral Values
The attitudes and behaviors that a society considers essential for coexistence, order, and general
wellbeing.

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Lesson 10: Environmental Adaption and Organizational Effectiveness
Introduction:
As much as individual and team level factors influence work attitudes and behaviors, the
organization‘s structure can be an even more powerful influence over employee actions.
Organizational structure1 refers to how the work of individuals and teams within an organization is
coordinated. In order to achieve organizational goals and objectives, individual work needs to be
coordinated and managed. Structure is a valuable tool in achieving coordination, as it specifies
reporting relationships (who reports to whom), delineates formal communication channels, and
describes how separate actions of individuals are linked together.

• To illustrate Culture and its Effects of the organization;
• To examine The individual and the Factors effecting the environment;
• To construct managerial decision and manage environmental change; and • To
develop Effective Organization
Course Materials:
Organizational change
is the movement of an organization from one state of affairs to another. Organizational change can
take many forms. It may involve a change in a company‘s structure, strategy, policies, procedures,
technology, or culture. The change may be planned years in advance or may be forced upon an
organization because of a shift in the environment. Organizational change can be radical and alter the
way an organization operates, or it may be incremental and slowly change the way things are done. In
any case, regardless of the type, change involves letting go of the old ways in which work is done and

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adjusting to the new ways. Therefore, fundamentally, it is a process that involves effective people
management.
Organizational change is often a response to changes in the environment. Organizations may realize
that as the workforce gets older the types of benefits they prefer may change. Work arrangements
such as flexible work hours and job sharing may become more popular as employees remain in the
workforce even after retirement. As the workforce rapidly ages, it also becomes possible that
employees who are unhappy with their current work situation will choose to retire, resulting in a
sudden loss of valuable knowledge and expertise on the part of organizations. Therefore,
organizations will have to devise strategies to retain these employees and plan for their retirement.
Finally, a critical issue is finding ways of dealing with age-related stereotypes, which act as barriers in
the retention of these employees.
Sometimes change is motivated by rapid developments in technology Such change is motivating

corporations to rapidly change their technology. Sometimes technology produces such profound
developments that companies struggle to adapt. A recent example is from the music industry. When
CDs were first introduced in the 1980s, they were substantially more appealing than the traditional
LPs. Record companies were easily able to double the prices, even though producing CDs cost a
fraction of what it cost to produce LPs. For decades, record producing companies benefited from this
status quo. Yet when peer-to-peer file sharing through software such as Napster and Kazaa
threatened the core of their business, companies in the music industry found themselves completely
unprepared for such disruptive technological changes. Their first response was to sue the users of
file-sharing software, sometimes even underage kids. They also kept looking for a technology that
would make it impossible to copy a CD or DVD, which has yet to emerge. Until Apple Inc.‘s iTunes
came up with a new way to sell music online, it was doubtful that consumers would ever be willing to
pay for music that was otherwise available for free (albeit illegally so).
Globalization is another threat and opportunity for organizations, depending on their ability to adapt to
it. Organizations are finding that it is often cheaper to produce goods and deliver services in some
countries compared to others. This led many companies to utilize manufacturing facilities overseas,
with China as a popular destination. For a while, knowledge work was thought to be safe from
outsourcing, but now we are also seeing many service operations moved to places with cheaper
wages. For example, many companies have outsourced software development to India, with Indian
companies

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such as Wipro Ltd. and Infosys Technologies Ltd. emerging as global giants. Given these changes,
understanding how to manage a global workforce is a necessity. Many companies realize that
outsourcing forces them to operate in an institutional environment that is radically different from what
they are used to at home. Dealing with employee stress resulting from jobs being moved overseas,
retraining the workforce, and learning to compete with a global workforce on a global scale are
changes companies are trying to come to grips with.
Changes in the market conditions may also create changes as companies struggle to adjust. For
example, as of this writing, the airline industry in the United States is undergoing serious changes.
Demand for air travel was affected after the September 11 terrorist attacks. Also, the widespread use
of the Internet to book plane travels made it possible to compare airline prices much more efficiently
and easily, encouraging airlines to compete primarily based on cost. This strategy seems to have
backfired when coupled with the dramatic increases in the cost of fuel. As a result, airlines are cutting
back on amenities that were taken for granted for decades, such as the price of a ticket including
meals, beverages, and checking luggage. Some airlines, such as Delta Air Lines Inc. and Northwest
Airlines Inc., have merged to deal with this climate, and talks involving other mergers in this industry
continue.
It is natural for once small start-up companies to grow if they are successful. An example of this
growth is the evolution of the Widmer Brothers Brewing Company, which started as two brothers
brewing beer in their garage to become the 11th largest brewery in the United States. This growth
happened over time as the popularity of their key product—Hefeweizen—grew in popularity; the
company had to expand to meet demand, growing from the 2 founders to 400 employees in 2008
after Widmer Brothers merged with Redhook Ale Brewery to become Craft Brewers Alliance Inc. The
newly formed company has five main departments, including Operations, Sales, Marketing, Finance,
and Retail, who report to the CEO. Anheuser-Busch Companies Inc. continues to have a minority
stake in both beer companies.
So, while 50% of all new small businesses fail in their first year
Planning and Executing Change Effectively
How do you plan, organize, and execute change effectively? One of the most useful frameworks in this
area is Kurt Lewin‘s three-stage model of planned change.Lewin K. (1951). Field theory in social

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science. New York: Harper & Row. The assumption is that change will encounter resistance.
Therefore, executing change without prior preparation is likely to lead to failure. Instead, organizations
should start with unfreezing22, or making sure that organizational members are ready for and
receptive to change. This is followed by change23, or executing the planned changes. Finally,
refreezing24 involves ensuring that change becomes permanent and the new habits, rules, or
procedures become the norm. John Kotter, a Harvard University professor, wrote a book in 1996 titled
Leading Change in which he discussed eight steps to changing an organization.Kotter, J. P. (1996).
Leading change.
Unfreezing Prior to Change

Many change efforts fail because people are insufficiently prepared for change. When employees are
not prepared, they are more likely to resist the change effort and less likely to effectively function
under the new system. What can organizations do prior to change to prepare employees? There are a
number of things that are important at this stage.
Create a Vision for Change

In successful change efforts, the leader has an overall vision for the change.Herold D. M., Fedor D.
B., Caldwell, S., & Liu, Y. (2008). The effects of transformational and change leadership on
employees‘ commitment to a change: A multilevel study. Journal of Applied Psychology, 93, 346–357.
When this vision is exciting and paints a picture of a future that employees would be proud to be a
part of, people are likely to be more committed to change. For example, Toyota is a master of kaizen,
or continuous improvement. They also follow the philosophy of kakushin, or revolutionary change, as
needed. Regardless of the nature of the particular change, there is an overall vision for the company
that justifies and explains why change is necessary ―to build the dream car of the future.‖Stewart, T.
A., & Raman,
A. P. (2007, July–August). Lessons from Toyota‘s long drive.
Communicating a Plan for Change

Do people know what the change entails, or are they hearing about the planned changes through the
grapevine or office gossip? When employees know what is going to happen, and when and why, they
may conquer their discomfort with change. Research shows that those who have more complete
information about upcoming changes are more committed to a change effort.Wanberg, C. R., &
Banas, J. T. (2000). Predictors and outcomes of openness to changes in a reorganizing workplace.

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Ensuring that top management communicates with employees about the upcoming changes also has
symbolic value.Armenakis, A. A., Harris, S. G., & Mossholder, K. W. (1993). Creating readiness for
organizational change. Human Relations, 46, 681–703. In any organization, many changes are done
on a daily basis, with some taking root and some disappearing after a short while. When top
management and the company CEO discuss the importance of the changes in meetings, employees
are provided with a reason to trust that this change is a strategic initiative. For example, while
changing the employee performance appraisal system, the CEO of Kimberly-Clark Corporation made
sure to mention the new system in all meetings with employees, indicating that the change was
supported by the CEO.
Develop a Sense of Urgency

People are more likely to accept change if they feel that there is a need for it. If employees feel their
company is doing well, the perceived need for change will be smaller. Those who plan the change will
need to make the case that there is an external or internal threat to the organization‘s
competitiveness, reputation, or sometimes even its survival, and failure to act will have dire
consequences.
Kotter’s Eight-stage Process for Change
Harvard Business School professor John P. Kotter proposed that companies should follow eight
stages when instituting change. Here is a summary of his suggested steps. 1. Create a sense of
urgency when introducing the change effort. 2. Build a coalition. 3. Create a vision for change and
make change a part of the vision. 4. Communicate a plan for change 5. Eliminate obstacles to change
6. Create small wins
7. Build on change 8. Make change a part of culture.
Refreezing
After the change is implemented, the long-term success of a change effort depends on whether
change becomes part of the company‘s culture. In other words, the revised ways of thinking,
behaving, and performing should become routine. For this reason, there are a number of things
management can do.
Publicize Success
In order to make change permanent, the organization may benefit from sharing the results of the
change effort with employees. What was gained from the implemented changes? How much money
did the

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company save? How much did the company‘s reputation improve? What was the reduction in
accidents after new procedures were put in place? Sharing concrete results with employees increases
their confidence that the implemented change was a right decision.
Build on Prior Change

Once results start coming, it is important to benefit from the momentum created by these early
successes by pushing for even more change. Following the philosophy of continuous improvement
may be a good idea here. Instead of declaring victory
Reward Change Adoption

In order to ensure that change becomes permanent, organizations may benefit from rewarding those
who embrace the change effort. The rewards do not necessarily have to be financial. The simple act
of recognizing those who are giving support to the change effort in front of their peers may encourage
others to get on board. When the new behaviors employees are expected to demonstrate (such as
using a new computer program, filling out a new form, or simply greeting customers once they enter
the store) are made part of an organization‘s reward system, those behaviors are more likely to be
taken seriously and repeated, making the change effort successful.
Make Change a Part of Organizational Culture

If the change effort has been successful, change will have become a part of corporate culture. In
other words, in addition to the changes in procedures, processes, or technology, the mindset of
people will also have changed. If change occurs only in superficial elements, it would be misleading to
declare change a success. For example, if a company institutes a wellness program emphasizing
healthy habits, rewarding employees for adopting healthy choices and providing resources to
maximize health, this change effort would be deemed a true success if valuing employee health and
well-being also becomes a part of the organization‘s culture. Creating a Web site, and printing
booklets and distributing them are all tools leading to this goal, but achieving the true goal also
necessitates a change in ingrained assumptions of management and employees putting work before
employee health and well-being.
Organizations can function within a number of different structures, each possessing distinct
advantages and disadvantages. Although any structure that is not properly managed will be plagued
with issues, some organizational models are better equipped for particular environments and tasks. A
change in the

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environment often requires change within the organization operating within that environment. Change
in almost any aspect of a company‘s operations can be met with resistance, and different cultures can
have different reactions to both the change and the means to promote the change. In order to better
facilitate necessary changes, several steps can be taken that have been proven to lower the anxiety
of employees and ease the transformation process. Often, the simple act of including employees in
the change process can drastically reduce opposition to new methods. In some organizations this
level of inclusion is not possible, and instead organizations can recruit a small number of opinion
leaders to promote the benefits of coming changes. Some types of change, such as mergers, often
come with job losses. In these situations, it is important to remain fair and ethical while laying off
employees. Once change has occurred, it is vital to take any steps necessary to reinforce the new
system. Employees can often require continued support well after an organizational change.
I. Imagine that you are a manager at a consumer products company. Your company is in
negotiations for a merger. If and when the two companies merge, it seems probable that some
jobs will be lost, but you have no idea how many or who will be gone. You have five
subordinates. One is in the process of buying a house while undertaking a large debt. The
second just received a relatively lucrative job offer and asked for your opinion as his mentor.
You feel that knowing about the possibility of this merger is important to them in making these
life choices. At the same time, you fear that once you let them know, everyone in the company
will find out and the negotiations are not complete yet. You may end up losing some of your best
employees, and the merger may not even happen. What do you do? Do you have an ethical
obligation to share this piece of news with your employees? How would you handle a situation
such as this?
II. Planning for a Change in Organizational Structure Imagine that your company is switching to a
matrix structure. Before, you were working in a functional structure. Now, every employee is
going to report to a team leader as well as a department manager.
• Draw a hypothetical organizational chart for the previous and new structures.
• Create a list of things that need to be done before the change occurs.
• Create a list of things that need to be done after the change occurs.
• What are the sources of resistance you foresee for a change such as this? What is your plan of
action to overcome this potential resistance?
•

Page 65 of 71
FINAL EXAMINATION
Subject Title: ENTREPRENUERIAL BEHAVIOUR

Subject Code: ENTR 20013
Semester: _______________________
Name: _________________________________
Score:______________
Year & Section: _____________________________ Date: _______________
Instructions: This is a 100-item examination so be sure to read each questions carefully.

Answers should be in hand written. Strictly no erasures. Write legibly.
A. Identification. Write your answers on the blank provided before each number.
__________________________1. They have endless curiosity to discover new or different ideas.

__________________________2. This allow the entrepreneur to see things in a very positive and
optimistic light.
__________________________3. The surging passion that which drawn to find fulfillment in the
process of discovery.
__________________________4. Also known as ―Intuition‖, this connotes strong intestinal fortitude.
__________________________5. This conceptualize and designs a product that consumer find some
use for.
__________________________6. The ―technology originator‖
__________________________7. Harnesses the potentials of new products by creating the market
space for them.
__________________________8. This is have to do with the way we react with other people.
__________________________9. The ability to perform certain types of activities and tasks.
__________________________10. This is an example of interpersonal skills which compose of
listening, speaking, gestures, eye contact and body language.
II. Enumeration with a brief description. The description/explanation must be in your own
words. Two (2) points each.
A. What are the two (2) types of Entrepreneurial Skills?

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11.
12.
B. Enumerate the three (3) types of Entrepreneurial Mind.
13.
14.
15.
C. Name the three (3) types of Listening.
16.
17.
18.
D. What is the difference between:
19. Listening
20. Hearing
E. What is the difference between:
21. Persuasion
22. Negotiation
F. How will you manage conflict?
23.
24.
25.
G. Give the Seven (7) Barriers of Communication.
26.
27.
28.
29.
30.
31.
32.
H. Give atleast three (3) ways how to use Body Language effectively.
33.
34.
35.
Page 69 of 71
II. Essay. Explain/discuss each item. Ten (10) points each.
A. Integrity
B. Empathy in the Workplace
C. Validate Emotions
D. Be Part of the Solution
Good luck and God bless.
”For as he thinks in his heart, so is he”

-Proverbs 23:7
Instructional Material for Page 70 of 71

ENTR 30013 : ENTREPRENEURIAL BEHAVIOR
/mahc a
Course Grading System
Class Standing which includes: 70%
• Quizzes/Assessments
• Projects/Activities
Midterm / Final Examinations 30%

100%
Midterm Grade + Final Term Grade = FINAL GRADE

2
References:
Maura McAdam and James Cunningham. Entrepreneurial Behavior. Individual, Contextual and
Microfoundational Perspectives. 2019
Wang, Y., and J. Warn. 2018. Chinese immigrant entrepreneurship: Embeddedness and the
interaction of resources with the wider social and economic and context. International Small Business
Journal 36 (2)
Melissa Contreras. Interpersonal Skills for Entrepreneur. 2013
youtube.com/entrepreneurial behavior
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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF BUSINESS ADMINISTRATION

INSTRUCTIONAL MATERIAL FOR

Instructional Material for

Instructional Material for

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Instructional Material for

After successful completion of this module, you should be able to:

Instructional Material for

Organizational Behavior (OB)

It is ariculated that the definition of Entrepreneurial Behavior is a subset of entrepreneurial activities

Instructional Material for

1. Behavioral approach to management: Entrepreneurial Behavior represents the behavioral

Approaches to the study of Entrepreneurial Behavior:

1. Human resources approach: Entrepreneurs should provide active support to workers by

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Models of Entrepreneurial Behavior:

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i. Understanding human behavior: Entrepreneurial behavior plays an important role to develop

Essay. Please answer the following reviewing concepts.

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After successful completion of this module, you should be able to:

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Maslow’s Hierarchy of Needs

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Reading and Responding to Employee Blogs

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Please watch https://www.investopedia.com/terms/i/interpersonal-skills.asp for a short

After successful completion of this module, you should be able to:

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Developing Your Interpersonal Skills

1. Identify areas for improvement

2. Focus on your basic communication skills

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3. Improve your more advanced communication skills

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5. Use and practise your interpersonal skills in particular situations

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6. Reflect on your experience and improve

Please answer the following reviewing concepts.

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After successful completion of this module, you should be able to:

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1. Keep the Bigger Picture in Mind

2. Body Language‘s Top Secret

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4. Setting the Tone

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5. Ten Ways to Use Body Language for Effective Communication

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Other Communication Skills

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I am often thinking of something witty to Always or Never or say in

When communicating with others, I pay

attention to non-verbal signals - body Always or Never or language,

Name: ___________________ Score: