No successful businessman has ever made his fortune without the dedicated help of his employees. The realization of almost every idea requires the intelligent work and cooperation of all involved. An ambitious executive must know how to summon the best from those around him, regardless of the pressure or lack of it. This is an essential skill that seems to come naturally to some, but can also be learned.
The secret ingredient that makes all the difference in business—the use in management of applied psychology based on common sense, namely that the primary function of management is to obtain results through people. Consequently, sound management psychology will motivate, direct, encourage and, in those exceptional instances where management is in the hands of exceptional individuals, inspire people so they will achieve the results that make possible the attainment of given objectives.
Example
An executive who seeks to achieve results through the people who work under his direction must himself demonstrate at least as high a standard of performance as he hopes to get from his subordinates.
Integrity
It should be obvious that the integrity of management personnel is a decisive factor in creating a sound management psychology that will work with subordinates, superiors, equals, customers and anyone else with whom executives or their company has contact.
Responsible Participation
In dealing with employees, it is essential they be given recognition as human beings, as individuals. Nothing achieves this more effectively or establishes a healthier mental and emotional climate among workers than what has been termed “responsible participation.”
Unquestionably, financial reward is the principal motivation that causes people to work. However, this is not the sole motivation. For the majority of people—even though they may not admit or even realize it—work satisfies a distinct psychological need. The need is most fully satisfied, and the worker is motivated to do his best, if he can feel, as Roger Falk puts it, “that he is participating responsibly, whether alone or in a group, in an enterprise the over-all objectives of which he can understand.”
Employee Problems
Sound management psychology calls for continuing interest in all employee problems, even personal ones. This does not mean management should pry into any employee’s private affairs. It does mean that management should lend a sympathetic ear—and, where reasonable, provide assistance—to an employee with personal problems.
Fairness
Management must be fair to its employees, stockholders, customers and suppliers. Executives should not play favorites among their subordinates or customers. Stockholders are entitled to somewhat more than an even break. Suppliers cannot be treated capriciously. Salaries and wages paid to workers should be fair and equitable; promotions should be made on the basis of merit. The psychological impact of unfairness is likely to be shattering to the individual; failure to be fair at all times means just that for management: failure.
Trust
Among other things, fairness to employees implies trust. The feeling that he is not being trusted damages—and frequently destroys—employee morale and performance. No worker can be contented and productive if he senses that management distrusts his competence or distrust him personally.
* Source: How to Be Rich by J. Paul Getty