Psychology of management

6. Preparedness to accept failure and considering adverse factors 
Activity of any enterprise marching in step with progress is strewn with roses, but with 
very sharp thorns. That is why alongside with clear goals and decisive actions on their 
achievement a manager should be prepared for misfortunes and failures. By such mistakes (s)he 
learns not to subject him/herself to trials by stresses. 
7. Transformation of plenaries power into authority power 
In the base of this transformation and one’s own authority shaping are always the processes 
of relationships and communications. As the barriers may pose the actions of manager 
him/herself which can destroy authority: purposeful lies, unethical behavior, treats, or unjustified 
compulsion. Not infrequently one day of such actions may destroy the power of authority that 
had been forming for many years. Without this power one has to solve tasks relying only on 
force and plenaries. But formal leadership methods do not promote authority. 
8. Mastering knowledge 
The concept of intellectual organization is based onorganizational knowledge on which 
rest its abilities to change in order to survive. Organizational knowledge is multiplied and 
developed by means of each employee’s knowledge, including the spectrum of principles, 
factors, skills, methods, and rules which ensure organization’s business activity and its personnel 
potential. The structure of organizational knowledge contains practical, theoretical, strategic, 
commercial, and production knowledge. It comprises the organization’s intellect founded on the 
information technologies, decision technologies, and the speed of innovations perception. 
9. Self-education and education of managerial personnel. 
It is impossible to increase a manager’s business activity without increase of professional 
knowledge. Besides, special knowledge gets morally outdated. Scientific and technological 
progress becomes systematic in character and changes in one area of knowledge cause 
considerable corrections in another one. While estimating the current state of education one can 
see that it needs deep and wide renovating. 
A great role in increasing business activity is played by self-education, self-development, 
and self-improvement. Self-sufficiency and responsibility transform from conditions of 
personality’s development into criteria of not only self-administration, but also into those of 
personnel management. Thus, speaking of American management of 1990ies, there was a 
fashionable concept of continuous self-education and self-development.