ORGB in the News 3
WSJ: CEO Shadows Workers to Learn ‘Nitty-Gritty’ Details
I like this well written piece at so many levels: in many respects you tie in key themes of the
course and do so in a seemless way. You show how it has impacted your behavior today in a
learning group and how it might impact your behavior as a leader in the future.
Congratulations.
A
--Larry Stybel
Prof. Stybel
ORGB3201
November 30, 2016
For my third and final OB in the News submission, I chose a Wall Street Journal article
titled, CEO Shadows Workers to Learn ‘Nitty-Gritty’ Details. In this article, the author, Rachel
Feintzeig, examines a CEO’s employee shadowing project at a scaling software company called
Gusto. This ties directly into the core objective of this course – how to get work done with and
through other people. Throughout this paper, I will examine the parallels between the article and
our coursework, especially as it relates to open versus closed system thinking, the effect of
replacing CEOs (i.e. Starwood), the significance of retaining an insurgent culture, and how these
concepts tie into effectively getting work done with and through other people.
In summary, the article discusses how the CEO and cofounder of Gusto, Joshua Reeves,
fosters open system thinking to understand the ‘nitty-gritty’ work that goes on at the company.
Miller 2
Gusto provides payroll and benefits software to businesses and currently employs 350 people
across two cities. As is common with a scaling startup, Reeves found himself focused
predominately on delegating and managing people. His role often consisted of signing new
employee offer letters and reviewing job descriptions, which he acknowledges, can cause a
disconnect. So, in October, he decided to start a new project and engage with employees on the
front lines. His plan is to shadow one employee each week on each of the 37 Gusto teams (from
software engineering to design to social media). Reeves stated, “The goal is to get in the weeds”
and has even tackled the role of a receptionist, which he claims to be his favorite yet. As a
receptionist, he engaged with roughly 75 employees in an hour at the desk, many of which he
didn’t know by name or whether they even worked at the company. He plans to revisit this
rotation every three weeks in hopes that the experience will make him appear more accessible
and “human” to fellow employees. While employees may be intimidated by the idea of a CEO
working beside them at first, it is an interesting project with great potential. In my eyes, it’s an
opportunity to share his aspirations, appreciations, and reinforce the company’s values.
Reeves can also use this opportunity to evaluate the personalities of the people in his
organization. As we examined in class discussion, an effective way to understand personality is
to search for recurring themes. Good!!
This can likely be applied throughout the entire organization as well – since Reeves will
be engaging with so many professionals on so many different levels of the company, he can use
this project to identify themes in the personalities of his employees and evaluate the company’s
culture. He can then use his findings to evaluate how these personality trends and the company’s
culture might influence the behaviors of the people throughout the organization. This also ties
into our discussion on the replacement CEO for Starwood, Steve Heyer. Good connection.
Miller 3
Rather than expressing humility and spending time on the front line like Reeves, Heyer would
only stay in the St Regis hotels during his travels as CEO. This disconnect can cause CEO’s to
lose sight of the peripherals and ignore the importance of an open system perspective.
At first thought, the concepts explored in the article draw close connections to the book
How to Win Friends and Influence People by Dale Carnegie. Carnegie urges readers to approach
management and social interactions using positive psychology. One of the most prominent and
recurring themes is the importance of appreciation. Reeves exemplifies the importance of
appreciation, humbling himself as an employee on all 37 teams throughout the company he
cofounded. As Reeves works beside his employees, he puts himself in their shoes, and asks
questions about their roles and how they might improve existing processes. In doing so, he
encourages his employees to be innovative and acknowledges that it’s healthy to ask questions.
Seeing his company from this perspective (at each level of the organization) expresses humility
and empathy, which enables him to better understand what motivates them. This same theory is
explored by Carnegie in ‘Part Four: How to Change People’ of How to Win Friends and
Influence People. Carnegie implores readers to ask questions instead of giving direct orders, and
asserts that acknowledging one’s own mistakes primarily serves as an expression of humility and
empathy, which helps convince others to change their own behaviors. As aforementioned,
Reeve’s actions accentuate these qualities, which I believe will better enable him to connect with
his employees/organization and will serve as leverage in his motivational pursuits.
For additional secondary research, I examined a study on charismatic leadership and
influencing employee behaviors. The study concludes that “a charismatic leader’s envisioning
behavior influences followers’ need for achievement, and the leader’s empathic behavior
stimulates followers’ need for affiliation.” Reeves exemplifies both envisioning and empathic
Miller 4
behavior as an innovator and humbled CEO through his new project. To dive deeper into this
research, I reached out to a managing partner at Hightower Advisors, David Emma. David
played several years of professional hockey, captained the Boston College Eagles, and
represented the United States on the 1992 Olympic ice hockey team in France before starting his
career at Hightower, a scaling financial services company that serves high net worth individuals.
I presented David with the preceding quote on charismatic leadership and asked how it has
played a role in his career both as a professional athlete and financial advisor. During our
discussion, it was evident that David has found this to be an essential component of his athletic
and career successes, and explained that he has upheld these behaviors in all of his pursuits. He
associated envisioning with setting lofty goals, being passionate, and doing whatever it takes to
succeed. This reminded me of the insurgence mentality that is shared by many successful
founders, like Steve Jobs. Yes.
He then explored the importance of empathy, especially on a small scale as he’s worked
with many small teams. David explained that on smaller teams, it is easier to recognize the
behaviors of those around you, hold your peers accountable, and monitor culture. As Reeves
explained in the article, his role as CEO of a 350-employee company has led him to become
detached from the business as a whole. Reeves, however, has launched this new project in an
effort to better identify with his employees on the front line.
Through my research and understanding of the article CEO Shadows Workers to Learn
‘Nitty-Gritty’ Detail, I’ve recognized three focal points that will better enable me to get work
done with and through other people – empathy, humility, and innovation. To practice empathy, I
will begin by getting involved in charity and the community. I feel this will be an uplifting and
Miller 5
equally humbling experience that will improve my ability to empathize with others. To practice
humility, I will ensure that I hold myself accountable and admit mistakes openly (also further
developing my ability to empathize). That’s good and that’s behavioral
To give a practical example, I am experiencing first-hand how empathy and humility can
improve the output of the collective group through a project I’m working on now. As two
members of my group continually demean our fourth member’s ability to contribute, I have
found great reward in utilizing positive psychology to appreciate this member’s efforts and
willingness to learn throughout the semester. I feel the positive reinforcement has empowered
him to continually put in a strong effort as he strives to be a value-adding member of our team.
Excellent
Finally, to stay innovative, I will continue to be proactive in asking questions and
iterating on existing processes where efficiencies might be realized. It is my hope that this
curiosity and innovative thinking will also foster insurgency, a trait I hope to uphold as an
aspiring entrepreneur.
Works Cited
Carnegie, Dale. How to Win Friends and Influence People. New York: Simon and Schuster,
1981. Print.
Choi, Jaepil. "A motivational theory of charismatic leadership: Envisioning, empathy, and
empowerment." Journal of Leadership & Organizational Studies 13.1 (2006): 24-43.
Miller 6
Feintzeig, Rachel. "CEO Shadows Workers to Learn ‘Nitty-Gritty’ Details." The Wall Street
Journal. Dow Jones & Company, n.d. Web. 30 Nov. 2016.
B:
I am delighted to give you an “A.” You tackled a VERY important topic
in organization behavior and a timely one too. You used a great
secondary research article (Pfeiffer) to suggest another tack. You did
primary research. And you came up with specific things you would do
Monday morning.
My own perspective is similar to yours with one exception. You didn’t
examine the nature of the corporate strategy. If the goal is to rapidly
build up a company and then sell to a strategic buyer, then I could see
that you don’t want to be dependent on people as much as you are
focused on systems and technology.
At the same time, this research may be a matter of how the research
was designed. “People are our most important resource” conflict with
the equally powerful cliché, “No one is indespensible in a well run
compahy.” The fact that culture comes in second suggests that this
might be an artificat of the research: culture depends on attracting,
retaining, and motivating the right people. And I think you point this
out.
Well done, B. I’m proud of you
--Larry Stybel
I, Robot 2
B
11/30/16
ORGB 3201
Larry Stybel
We’ve all seen the movies, it starts with the simple tasks and next thing you know, the
robots have taken over the Earth. A new study done by the Korn Ferry Institute, when surveying
800 Chief Executives and other top leaders of global firms, “two-thirds said they believe
technology will create greater value in the future than their workforce will, and 44% believe
that automation, artificial intelligence and robotics will make people ‘largely irrelevant’”
(Weber). While the traditional logic states that people are the company’s greatest asset, they
didn’t even make the top five most important to executives. “When asked to rank their
business’ most valuable asset, leaders said technology matters above all,” showing a clear shift
in the thought process of our global leaders (Weber). They are placing more faith in the
advancements in technology than they are in the advancement of the human mind. More
specifically, executives believe that back-office infrastructure and customer-facing or product
tech technology is the most valuable, followed by culture, inventory, and R&D. While they are
correct on the culture aspect, this type of logic leads to companies failing in the long run once
their technology is outdated. They are underestimating the impact that implementing this
technology and eliminating people would have on the culture. Also, executives are starting to
become too driven by measureable metrics and not focused enough on the value each
employee adds. They have “become bullish on assets like technology because it is easier to
measure the impact of a software program than an employee” and their “desire to immerse
themselves in technology suggests they have grown frustrated with managing people” (Weber).
They lack the motivation and leadership skills to properly manage their workforce, and rather
than fixing the actual problem, they are trying to replace it with technology. As Jean-Marc
Laouchez, a global managing director at Korn Ferry, states “Paying attention to technology
alone ignores the fact that people are needed to make the best use of technology. Companies
may spend money on a software system, but the differentiator is what you do with it, and
that’s about people” (Weber). While technology can supplement and enhance a company’s
competitive advantage, employees still remain the most valuable asset to a firm. The company
culture is the lasting differentiator and remains constant even when technology becomes
outdated. For that reason, keeping employees properly trained and motivated is crucial to
maintaining a successful business. I read this study too. It is a very disturbing attitude and one
that I see in my practice. I agree with your perspective.
In the next five years, customer-facing technology and products are going to be the
most prized assets, according to the executives surveyed. It is not a surprise then, that
“information technology (IT) has long been recognized as an enabler to radically redesign
business processes in order to achieve dramatic improvements in organizational performance”
(Chen). Implementing IT that aligns with your company goals can greatly improve the business
process, making it easier to navigate and more efficient to use. One technology that many
companies are implementing is the Customer Relationship Management (CRM) system. These
systems are “not merely technology applications for marketing, sales and service, but rather,
when fully and successfully implemented, a cross-functional, customer-driven, technologyintegrated business process management strategy that maximizes relationships and
encompasses the entire organization” (Chen). CRM Systems have the ability to transform a
company's interactions with their customers and make the process of personalizing their
offering to each customer much easier. They “have resulted in increased competitiveness for
many companies as witnessed by higher revenues and lower operational costs” while
“managing customer relationships effectively and efficiently boosts customer satisfaction and
retention rates” (Chen). It is clear that implementing this type of technology can be extremely
beneficial for a company. However, more often than not, executives who decide to implement
these systems don’t understand what it actually entails to make sure they are serving their
intended purposes. They are implementing these systems without giving the employees the
necessary training to use them effectively, essentially making the systems useless. As leaders,
they should be setting the example for their employees, but are not doing so.
While these systems are meant to retain customers and make their experience as
simple as possible, many don’t like the new technological aspect. “Although these
developments have benefited customers, there is also evidence of increasing customer
frustration in dealing with technology-based systems” because of the many glitches, failures
and trouble understanding that can occur (Parasuraman). When “more than a dozen
technology-related focus group interviews with customers of companies in a variety of sectors”
was conducted, there was a consistent “notion that customers have positive feelings,” such as
convenience, efficiency and enjoyment, “as well as apprehensions about technology,” such as
security concerns, impersonalization and lack of control (Parasuraman). In a survey I conducted,
11 people disagreed with the statement, “I enjoy dealing with technology based systems over
individuals” with 5 people strongly disagreeing, 2 feeling neutral, 3 agreeing and 4 strongly
agreeing. These studies suggest that not everyone is ready to make the adjust to a more
technology based environment. Many prefer their information, preferences and habits not be
stored in company databases that could potentially be breached. Not only do these new
technologies have imperfections, but they will not be a competitive differentiator between
companies.
New technology has the ability to improve a company’s business process while making it
easier for employees and customers to maximize their experience together. However,
technology itself is not a lasting differentiator that is going to give the company a competitive
advantage. In this day-in-age where “product life cycles are shortening and new-product
introductions are coming much more rapidly, relying on a static product technology for success
is increasingly problematic” (Pfeffer). Companies can’t rely on technology as much as they used
to because another company can invent a better product or create a better process that makes
the previous one obsolete. A perfect example of this happening was General Motors in the
1980s. They decided to invest “heavily in technology to automate its factories in the 1980s…
[and] spent some $40 billion for modernization and new facilities, in the process substituting
fixed costs for variable costs. In fact, GM spent enough money on capital equipment to have
purchased both Honda and Nissan. Unfortunately, it did not get much for that investment”
(Pfeffer). Their sales remained stagnant because “while making enormous investments in
technology, research, and state-of-the-art marketing, many of today's managers continue to
ignore the single most important factor in achieving and maintaining competitive success:
people” (Pfeffer). They are forgetting the very assets that put them in position to be able to
make those types of investments. Skilled and motivated employees are necessary in order to
operate the technology and maximize the returns. Dave Fields, a senior audit associate at
KPMG, shared that “many accounting firms have implemented new software intended on
making the audit process more concise and organized. However, this software is designed with
auditor’s in mind, so someone who doesn’t understand the terminology won’t be able to use
it.” Executives need to realize that “the source of competitive advantage is shifting from
technology, patents, or strategic position to how a company manages its employees” because
they are the ones who really get the job done, not the technology (Pfeffer). Because of the
“continuous innovation and [need for] rapid response to market and technological changes,”
the necessity for “a workforce that delivers superior performance” is stronger than ever
(Pfeffer). If executives neglect to recognize how valuable their employees are, they run the risk
of leaving their company vulnerable to changes in technology and a decrease in company
morale.
To run a successful company and create a distinct competitive advantage, executives
need to “rely not on technology, patents or strategic position, but on how they manage their
workforce” (Pfeffer). Company culture is a lasting differentiator that is hard to duplicate,
whereas technology can be replicated easily once it becomes available. Getting rid of your
employees in favor of technology would completely diminish the culture and leave any
remaining employees feeling insecure about their futures. According to the article, “nearly twothirds of respondents said they ‘see people as a bottom-line cost, not a top-line value
generator,’” which is the exact logic that leads to a culture of insecurity and fear (Weber). As
we learned in the Southwest Airlines case, when employees are thought of as an asset that the
company seeks to maximize, it can create a unique competitive advantage that becomes a
driving force for the business. Alexandra Koza, an associate at Accenture, believes that culture
is especially important at consulting firms. She said “many consulting firms offer the same
services and have similar results, so the differentiator is how the employees interact with their
clients. Clients are looking for a culture that mirrors their own” because they will work in closer
harmony. These executives fail to realize is that “culture, how people are managed, and the
effects of this on their behavior and skills are sometimes seen as the "soft" side of business,
[and are] occasionally dismissed” for more derivative measures (Pfeffer). While culture and
other front-line metrics are hard to measure, they are extremely critical to the overall success
of the business because they are impossible to copy. This is what differentiates a company from
the others. When it is done well, it turns customers into fans and employees into advocates,
becoming a tool to market their business without any additional capital. Furthermore, “it is
rather ironic that the application of artificial intelligence… is becoming a popular topic
[because] If intelligence is so helpful in its artificial form, then why have the benefits of the real
intelligence been overlooked so far” (Pfeffer). The executives who want to eliminate the need
for employees are disregarding the fact that human interaction and intelligence is necessary for
establishing a culture that is suitable for the business. Without the employee's, the company is
left a shell of itself, relying on machines to think and interact with each other better than
humans can. Executives need to consider that their “ability to obtain the benefits of... this
technology… depends on your ability to implement it more rapidly and effectively. This almost
inevitably involves the skill and motivation of the work force” (Pfeffer). The executives are
blaming their employees for a lack of production that they think technology can fill, when in
reality, it is the culture they are creating along with their failure to motivate that is the problem.
For employees to thrive within a company, executives need to foster an environment
that fully motivates their employees, trains them to perform their tasks proficiently and
positively reinforces their work. Since large “investments in specialized technology [are] not a
substitute for skill in managing the workforce; it actually makes the work force even more
crucial for success” (Pfeffer). According to the article, bosses seem to have “grown frustrated
with managing people” and think spending on technology will fix problem (Weber). Rather,
executives should be focused on ways to motivate their employees effective and “achieving
success by working with people, not by replacing them or limiting the scope of their activities”
(Pfeffer). In the survey I conducted, 12 people People. It might help to know the backgrounds
of these people, e.g. I assume a junior at NEU would not necessarily have the same scores as a
55 year old CEO of a Fortune 500 company.
strongly agreed that a superior’s motivation effected their performance, with 1 strongly
disagreeing, 1 disagreeing, 3 feeling neutral and 8 agreeing (Exhibit 1). If employers invested in
training programs rather than technology, then employees would feel as though they are being
given the opportunity to grow both within the firm and professionally. My survey results
showed that 12 people strongly agreed that they were properly trained for their job, with 7
people agreeing and 2 feeling neutral (Exhibit 1), allowing them to correctly do their work. With
training, employee efficiency would drastically increase as well as opportunities for more
responsibilities and the advancement of their career. For example,
When the Shenandoah Life Insurance Company spent some $2 million to
computerize its processing and claims operations in the early 1980s, it found that it got
almost nothing for its expenditure—it still required 27 working days and 32 clerks in
three departments to handle a policy conversion. Only after the company changed
how it organized and managed its work force—relying on semi-autonomous teams of 5
to 7 people, upgrading training and skills, and paying more for the more responsible
and more skilled workers—did case-handling time drop and service complaints
virtually disappear. By 1986, Shenandoah was processing 50% more applications and
queries with 10% fewer employees than it did in 1980. (Pfeffer)
Clearly, training employees can lead to equal, if not more, production than new technology can.
The logic of “people are messy” compared to technology is more of a testament to an
executive's ability to lead rather than the employees themselves (Weber). They are thinking as
task oriented leaders, only worrying about the performance and not the employee’s
satisfaction. If they became more people oriented leaders, there would be a mutual respect
and trust between the employer and employee. To reassure employees that their work is
progressing in the right direction, executives need to use positive psychology in recognizing
employees when they have achieved their goals. Great leaders are able to use all of these
methods to make sure employees are performing up to standard even when they leave the
company. While “the success that comes from managing people effectively is often not as
visible or transparent” as investment in technology, it is more beneficial for the company
staying successful in the long term (Pfeffer).
While many executives are starting to think technology is becoming more valuable than
their workforce, they are greatly underestimating the areas which create the company’s
success. Technology can only supplement the business process when it is implemented
correctly and put into the hands of well-trained employees. The culture that an executive
establishes is a lasting differentiator while new technology comes and goes. By motivating and
empowering employees, employers are building a company that can withstand changes in
technology and remain competitive. This type of thinking “entails seeing the work force as a
source of strategic advantage, not just as a cost to be minimized or avoided” (Pfeffer).
Executives need to stop thinking from a closed system perspective, only thinking about the
employees and the bottom-line, and think from an open system perspective, considering
various stakeholders like the employees, the company’s future, and customer relationships. On
Monday morning at 8 AM, I would attend motivational speaker seminars to make sure I am
using the best methods of motivating my employees to achieve their potential. OK that is very
specific!
Also, if I was to implement any new technology, I would hold a training session with all of my
employees to learn how to use it properly. That’s specific.
I would tell my employees “if they have any questions on how to use the technology to its
fullest potential, please reach out to me so we can step up further training” and follow up
periodically to make sure it is being used how it is intended. Overall, technology can greatly
improve many business operations, but it is the employees that are crucial in driving the
businesses competitive advantage.
Exhibit 1
Survey of 25 random participants, population age 18-23, male/female, all majors
On a scale of 1-5 (1=strongly disagree; 5=strongly agree), I enjoy dealing with technology
based systems over individuals.
1
2
3
4
5
5
11
2
3
4
On a scale of 1-5 (1=strongly disagree; 5=strongly agree), the training I received properly
prepared me for my job.
1
2
3
4
5
0
0
2
7
16
On a scale of 1-5 (1=strongly disagree; 5=strongly agree), a managers motivation effects my
performance.
1
2
3
4
5
1
1
3
8
12
Bibliography
Chen, Injazz J., and Karen Popovich. "Understanding Customer Relationship Management
(CRM)." Business Process Management Journal 9.5 (2003): 672-88.
Parasuraman, A. "Technology Readiness Index (Tri): A Multiple-Item Scale to Measure
Readiness to Embrace New Technologies." Journal of Service Research 2.4 (2000): 307-20.
Pfeffer, Jeffrey. "Competitive Advantage Through People." California Management Review 36.2
(1994): 9-28.
Weber, Lauren. "CEOs No Longer Say 'People Are Our Greatest Asset,' According to New
Report." The Wall Street Journal. Dow Jones & Company, 17 Nov. 2016.
Congratulations, C.
A
I’m proud of you.
See my detailed comments below.
--Larry Stybel
C
Professor Stybel
Organizational Behavior
11/21/2016
Performance Bonus for Teachers: a Gift or a Curse?
You do not need an empirical study to know that people like to make more money.
Money as compensation is a great incentive to get people to do work, but are all types of
compensation an effective way for motivating people to get work done? An article in the Gaston
Gazette (from Gaston County, North Carolina) addresses a new teacher performance pay policy
that passed. The policy states that teachers who teach the same subject in the same school district
will be eligible for an up to $2,000 bonus based on student performance; however, not all
subjects are eligible for this performance bonus. The policy is aimed at improving teacher
retention in major subjects such as Math, Sciences, and English. The purpose of this paper is to
explore the effects, whether positive or negative, of the policy implementation on a teacher’s
motivation to work.
First, I wanted to look at the direct effects of the policy on the people that have the
potential to earn the bonus. I wanted to explore the teachers’ perspective of the effects of a
performance bonus system and how the implementation of a program would motivate them to
work harder in order to achieve the designated goal. To look into this I conducted an anonymous
survey of 28 current teachers (14 Male and 14 Female with various degrees of teaching
experience) and asked them “On a scale from 0 (Not likely at all) – 10(Extremely likely), how
likely are you to be motivated to work harder by a $2,000 bonus based on student performance.”
This is very good, C.
The mean score for this question was 5.964, which can be interpreted to mean that teachers are
mostly neutral about the question but somewhat likely to be motivated a bonus as seen by the
frequency chart below:
This idea is further supported by a study about a different program in North Carolina where there
was a performance bonus of $1,800 for teachers in low-performing schools and the retention rate
of teachers following the implementation of the bonus. In the study, Charles T. Clotfelter,
Elizabeth J. Glennie, Helen F. Ford, and Jacob L. Vigador found that retention rates for Math
and Science teachers (programs in which the bonus was implemented) rose from 62% to 65% in
the year following the implementation of the policy (76). One of the Male respondents of the
survey had commented that “Any time there is a bonus situation on performance, everyone
would work twice as hard to achieve their bonus.” Interesting perspective. Glad you found this
study. Was a 62 to 65% retention significant?
Additionally, I wanted to look if there was a difference in the motivation levels based on level of
income, believing that a lower income teacher would be more influenced by a $2,000 bonus
because it would represent a higher percentage gain in their salary. To do this I ran an Analysis
of Variances (ANOVA) on the scores reported for how motivated the teacher is by the bonus
based on the reported level of income of each respondent. Wow, that is very cool.
My sample size was relatively small to be doing this type of analysis, so the results must be
taken with a grain of salt good point
; however, I discovered that the means for the $40,000 - $49,999 income bracket and the $50,000
- $59,999 income bracket were higher than the mean of the $70,000 - $79,999 income bracket
(statistically significant at the 10% level). Excellent
This means that the respondents with lower levels of income were more motivated by a bonus
than that of the groups with higher income brackets. Thus with all this in mind, there appears to
be a positive motivating factor to performance bonuses amongst teachers eligible for the bonus.
However, despite the slight above neutral motivation from a performance bonus in the
survey question, when asked if they had any other comments about the teacher compensation
structure and how it motivates you to get work done, the comments were overwhelmingly
different from the survey question about the bonus as a motivating factor. The overarching theme
of the comments were that money is not the reason that the teachers are doing their jobs. One
quote that stood out to me was “If you love teaching, a $2,000 bonus isn't an incentive to "work
harder". If you're a good teacher, your students are already performing where they should be and
you're doing everything you can to help them do that.” One teacher even mentioned that “as long
as teacher compensation is a reasonable living wage that would support a family and children,
then incentivized compensation is unnecessary and may have unforeseen effects.”
These “unforeseen effects” were what lead into my second question, Excellent.
“On a scale from 0-10, how likely is a performance bonus to lead to grade inflation
amongst colleges in order to achieve the designated goal.” This question had a mean response of
6.61 which means that the teachers believe that their colleagues are fairly likely to grade inflate
in order to achieve this bonus. The frequency chart shown below depicts a very significant issue
of immoral behavior due to the bonus structure: another variation of the same thing: if the test is
a standard test, how likely is it that teachers will teach classes focusing on how to do well on the
test rather than how to get an appreciation of the subject matter?
While this is unfortunate, it is not surprising. A study by Lisa D. Ordonez and David T Welsh
about setting goals and how it can lead to unethical behavior states that “Goals can lead to more
risk taking, reduce cooperation and increase deception” and that “people performing poorly on a
task were more likely to cheat” (1). This cheating could mean students getting grades they do not
deserve just so a teacher can achieve a bonus.
Furthermore, another issue that arises from setting goals, according to the Ordonez and
Welsh study, is that excessive stress can formulate as a result of difficult goals (1). This is further
supported by a study by Herbet G. Heneman III and Anthony T. Milanowski about teachers’
attitudes about performance bonuses. The study produced several outcome groups that came as a
result of the performance bonus, two of which were “Stress,” where excessive stressed resulted
as an outcome because teachers were unable to achieve their goal, and “Sanction,” where
teachers were actually reprimanded for not achieving the goals. Both of these outcomes were
extremely undesirable to teachers and have produced low support for performance bonus
structures if they have faced this outcome in the past (11). So while the bonuses reward the
teachers and motivate them to achieve the goal, the bonus could also demotivate the teachers that
won’t be able to achieve the goal because they do not feel that it is worth it to put the effort if
they aren’t going to see the return. Very well put.
The article also addresses that some teachers are against the bonus pay policy because
their subjects that they teach are not credential-bearing to earn the bonus. Returning to the
Clotfelter, Glennie, Ford, and Vigador study, the retention rate for teachers who do not receive
the bonus because of the subject they teach is not eligable actually falls as a result of the bonus.
In this study, the retention rate fell from about 67% to 65% for teachers in English and History,
courses that did not receive the bonus (77). The inclusion of bonus structure for some teachers
and not for others has negative effects such that the teachers who are not eligible for the bonus
feel undervalued and are more likely to leave. To explore this further, I wanted to see if teachers
were willing to change subjects in order to earn the bonus to see how that may affect retention
rates within subjects. I asked the survey respondents, “On a scale from 0-10, how likely would
you be to teach a different subject if that subject offers the bonus.” The mean score of the
question was 3.11 meaning that the teachers are not very likely to change subjects just because of
the bonus. The frequencies of responses are shown below:
The majority of respondents responded with a neutral state (a score of 5) or not likely at all (a
score of 0) which leads me to believe that teachers are not willing to change subjects just for the
bonus. However, this does then show that the teachers that are leaving is because they are not
eligible for the bonus and feel undervalued. Yes…….and it also could be that history teachers
do not have the competence to teach a course in math. There is a substantive amount of material
that need to be learned. Numerical skill is one part of the brain; language is another….
If I were a county legislature in Gaston County, I would have voted against this policy.
Well that’s behavioral! Good for you.
To me, there seems to be more negative consequences than positive. While it was a found to be a
strong motivating factor amongst those who are eligible to receive the bonus, it was found to be a
detractor amongst those teachers who were not eligible for the bonus. On top that, the presence
of the bonus has been shown to cause stress amongst teachers who are unable to achieve the
bonus, which could negatively impact work performance. When judging teachers based on
student performance, you have to consider that not all teachers are working with students who
are willing to work. Thus a teacher working with disenfranchised youth may not be able to
achieve their goals because of the level of effort the students are willing to give. This could cause
the teacher to feel undervalued and potentially resign thus negatively impacting teacher
retention. Furthermore, the presence of a bonus could lead to immoral behavior amongst the
teachers eligible for the bonus such that grade inflation may occur. Students with these teachers
could unfairly receive higher grades than they deserve and could struggle in the future due to
lack of preparation. With all these in mind, a bonus pay system does not seem like the best
option to motivate teachers to perform. Similar to the Herzberg Model, compensation is a
hygiene factor and not a motivating factor. Teachers expect to receive a certain salary so they
can live; however, if that salary is not present then compensation is a massive dissatisfier. One
teacher had quoted, “My personal intuition is that as long as teacher compensation is a
reasonable living wage that would support a family and children, then incentivized compensation
is unnecessary and may have unforeseen effects,” which shows that a bonus pay is not a strong
motivating factor unless the pay is not meeting the needed hygiene level. Due to this, rather than
the original proposed policy, I would recommend instituting a new policy which raises teachers’
salaries to a more livable level of income. If teachers do not need to worry about how to make
means due to their salary they will be more satisfied and retention rates will rise. Thus I would
not support the current policy as I do not see it improving teacher retention and performance all
around, but I would suggest a policy to raise teacher salaries in an effort to meet the hygiene
factors the teachers need to be satisfied. T
here is SO much I liked about how you handled this paper, C. Well done! You did a quality job
and staged a nice recovery from the other paper!
This obviously did not impact your grade, C, but you can also apply an open systems versus
closed systems perspective. If you look to raise scores in math and science and just look at it
form that closed system perspective, then the system might make sense. If you examine this
from an open systems perspective you have to take into account the demoralization of English
and history teachers. But that is a small issue in the context of a great paper, C. Congratulations.
Works Cited
Clotfelter, Charles T., Elizabeth J. Glennie, Helen F. Ladd, and Jacob L. Vigdor. "Teacher
Bonuses and Teacher Retention in Low-Performing Schools Evidence from the North
Carolina $1,800 Teacher Bonus Program." Public Finance Review 36.1 (2008): 63-87.
Sagepub.com. Web. 21 Nov. 2016.
Heneman, Herbert G., III, and Anthony T. Milanowski. "Teachers Attitudes About Teacher
Bonuses Under School-Based Performance Award Programs." Journal of Personnel
Evaluation in Education. Kluwer Academic Publishers, 199. Web. 21 Nov. 2016.
Ordonez, Lisa D., and David T. Welsh. "Immoral Goals: How Goal Setting May Lead to
Unethical Behavior." Science Direct. Psychology, 17 June 2015. Web. 21 Nov. 2016.
Wildstein, Eric. "State Approves Bonus Pay for Teachers." Gaston Gazette. Gaston Gazette, 13
Nov. 2016. Web. 21 Nov. 2016.
Appendix A: The Survey
Q1 Thank you for taking the time to take this survey. This survey is designed to have a look into
teacher's compensation and to understand a teacher's perspective on how a performance-based
incentives affect a teacher's motivation. There are only 4 questions and 3 demographic questions and
should only take you about 2-3 minutes to complete. Some of the questions may contain information
that you may not be comfortable to attach your name to an answer, but your absolute honesty is very
important to this study. Because of this, the survey will be completely anonymous and your names will
never be requested. However, to like into other factors regarding the situation, demographic
information will be requested if you are comfortable with sharing this information. If you accept these
conditions please select "I accept" below and you will be moved on to the questions. If not, please select
"I do not accept" and the survey will be completed.
I accept
I do not accept
Q4 On a scale from 0-10, how likely are you to be motivated to work harder by a $2,000 bonus based on
student performance:
0
1
2
3
4
5
6
7
8
9
10
Q8 On a scale from 0-10, how likely is a performance bonus to lead to grade inflation amongst colleges
in order to achieve the designated goal:
0
1
2
3
4
5
6
7
8
9
10
Q9 On a scale from 0-10, how likely would you be to teach a different subject if that subject offers the
bonus:
0
1
2
3
4
5
6
7
8
9
10
Q10 Please provide any additional comments, if any, about teachers' compensation structure and how it
motivates you to get work done:
Q5 Please Indicate your gender:
Male
Female
Prefer not to say
Q6 Please indicate how many years of teaching experience you have (please write N/A if you prefer not
to say):
Q7 Please indicate your salary:
Under $40,000
$40,000 - $49,999
$50,000 - $59,999
$60,000 - $69,999
$70,000 - $79,999
Over $80,000
Prefer not to say
Appendix B: Survey Results
Bonus as a Motivating Factor:
MotivatedByBonus
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
0
3
10.7
10.7
10.7
1
1
3.6
3.6
14.3
2
1
3.6
3.6
17.9
5
7
25.0
25.0
42.9
6
4
14.3
14.3
57.1
7
3
10.7
10.7
67.9
8
3
10.7
10.7
78.6
10
6
21.4
21.4
100.0
28
100.0
100.0
Total
Descriptive Statistics
N
Minimum
MotivatedByBonus
28
Valid N (listwise)
28
Maximum
0
10
Mean
Std. Deviation
5.96
3.144
Bonus Causes Grade Inflation:
GradeInflation
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
0
2
7.1
7.1
7.1
5
9
32.1
32.1
39.3
7
6
21.4
21.4
60.7
8
4
14.3
14.3
75.0
9
4
14.3
14.3
89.3
10
3
10.7
10.7
100.0
28
100.0
100.0
Total
Descriptive Statistics
N
Minimum
GradeInflation
28
Valid N (listwise)
28
Maximum
0
Mean
10
Std. Deviation
6.61
2.558
Change Subjects to Earn Bonus:
ChangeSubjects
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
0
9
32.1
32.1
32.1
1
2
7.1
7.1
39.3
2
3
10.7
10.7
50.0
3
1
3.6
3.6
53.6
4
1
3.6
3.6
57.1
5
6
21.4
21.4
78.6
6
2
7.1
7.1
85.7
7
2
7.1
7.1
92.9
8
2
7.1
7.1
100.0
28
100.0
100.0
Total
Descriptive Statistics
N
Minimum
ChangeSubjects
28
Valid N (listwise)
28
0
Maximum
Mean
8
Std. Deviation
3.11
2.833
Gender:
Gender
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Males
14
50.0
50.0
50.0
Females
14
50.0
50.0
100.0
Total
28
100.0
100.0
Years of Experience:
Experience
Cumulative
Frequency
Valid
Valid Percent
Percent
2
2
7.1
9.1
9.1
3
1
3.6
4.5
13.6
4
1
3.6
4.5
18.2
5
2
7.1
9.1
27.3
7
2
7.1
9.1
36.4
8
1
3.6
4.5
40.9
11
1
3.6
4.5
45.5
14
1
3.6
4.5
50.0
15
3
10.7
13.6
63.6
16
2
7.1
9.1
72.7
17
1
3.6
4.5
77.3
20
3
10.7
13.6
90.9
21
1
3.6
4.5
95.5
22
1
3.6
4.5
100.0
22
78.6
100.0
6
21.4
28
100.0
Total
Missing
Percent
System
Total
Salary:
Salary
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
$40,000 - $49,999
6
21.4
21.4
21.4
$50,000 - $59,999
6
21.4
21.4
42.9
$60,000 - $69,999
3
10.7
10.7
53.6
$70,000 - $79,999
8
28.6
28.6
82.1
Over $80,000
5
17.9
17.9
100.0
28
100.0
100.0
Total
ANOVA of Motivation by Bonus based on Salary:
Multiple Comparisons
Dependent Variable: MotivatedByBonus
LSD
90% Confidence Interval
Mean Difference
(I) Salary
(J) Salary
$40,000 - $49,999
$50,000 - $59,999
1.000
1.685
.559
-1.89
3.89
$60,000 - $69,999
2.833
2.064
.183
-.70
6.37
$70,000 - $79,999
4.083*
1.576
.016
1.38
6.79
Over $80,000
1.033
1.768
.564
-2.00
4.06
$40,000 - $49,999
-1.000
1.685
.559
-3.89
1.89
$60,000 - $69,999
1.833
2.064
.384
-1.70
5.37
$70,000 - $79,999
3.083*
1.576
.063
.38
5.79
.033
1.768
.985
-3.00
3.06
$40,000 - $49,999
-2.833
2.064
.183
-6.37
.70
$50,000 - $59,999
-1.833
2.064
.384
-5.37
1.70
$70,000 - $79,999
1.250
1.976
.533
-2.14
4.64
Over $80,000
-1.800
2.132
.407
-5.45
1.85
$40,000 - $49,999
-4.083*
1.576
.016
-6.79
-1.38
$50,000 - $59,999
-3.083*
1.576
.063
-5.79
-.38
$60,000 - $69,999
-1.250
1.976
.533
-4.64
2.14
Over $80,000
-3.050*
1.664
.080
-5.90
-.20
$40,000 - $49,999
-1.033
1.768
.564
-4.06
2.00
$50,000 - $59,999
-.033
1.768
.985
-3.06
3.00
$60,000 - $69,999
1.800
2.132
.407
-1.85
5.45
$70,000 - $79,999
3.050*
1.664
.080
.20
5.90
$50,000 - $59,999
Over $80,000
$60,000 - $69,999
$70,000 - $79,999
Over $80,000
*. The mean difference is significant at the 0.1 level.
(I-J)
Std. Error
Sig.
Lower Bound
Upper Bound
Appendix C: Quotes from Q10
Respondent #4 – Female Teacher with 5 years teaching experience making $50,000 - $59,999 salary
Bonuses would great but would not be fair to teachers working with disenfranchised youth and in
underprivileged areas. Educator performance goes beyond money. They have to care, and be invested in
the students. I would work the same because I work in a school where the students do well. I have
worked in schools where the students don't do well and it is often outside of the control of the teachers,
and the teachers were excellent at their jobs; yet they would get blamed. So, simply put, teachers and
educators need to get paid more, not paid bonuses for student performance. Just more In fact, I often
feel educators in inner city areas, working with disenfranchised youth, etc. should get paid more than
educators in otherwise "regular" settings because they deal with so much more (behavior, violence,
neighborhood issues, poverty, hunger, etc.)
Respondent #5 – Female Teacher with $70,000 - $79,999 salary
I think that as long as compensation is based on "check boxes" as in I did this and I did this, it won't
matter if we have extra compensation. We need to measure growth via qualify of teaching. And since
perception of grading scales is not concrete even within a department, I am a firm believer in pre and
post testing as well as standardized testing to a degree!
Respondent #6 – Female, 11 years of experience, $60,000 - $69,999 salary
Criteria should be specific for teachers and staff to receive bonus.
Respondent #8 – Female, 15 years of experience, $70,000 - $79,999 salary
If you love teaching, a $2000 bonus isn't an incentive to "work harder". If you're a good teacher, your
students are already performing where they should be and you're doing everything you can to help
them do that.
Respondent #9 – Male, 20 years of experience, $70,000 - $79,999 salary
Monetary compensation does not motivate me to work any more and any less.
Respondent #11 – Female, 20 Years, $70,000 - $79,999
I did not go into teaching to make money - I don't think good teachers do. Even if math or science
teachers made more money, I would still teach English, as it is my passion. I am also opposed to
connecting a bonus to student success on a specific test since some students are quite challenging (low
socio-economic backgrounds, learning disabilities). I would like the best teachers to be used for the
most challenging situations, so maybe a bonus for teachers opting for the more challenging situations?
On a different note, teacher salaries should be raised to compensate for the actual time committed to
work (planning and grading). I clearly work longer hours than my lawyer husband!
There can be discrepancies between how hard some teachers work and how effective those teachers
are. A program like National Certification could be a good tie to bonus pay for this reason.
Respondent #13 – Male, $50,000 - $59,999
Anytime there is a bonus situation on performance, everyone would work twice as hard to achieve their
bonus. At my last job, our yearly review was solely based on our performance and this was how your
percentage raise was decided.
Respondent #14 – Male, 3 years, $40,000 - $49,999
I do not feel there are any monetary incentives to do a better or worse job since it is solely based on a
step system which is a combination of education as well as years of experience. As long as you are a
teacher there are yearly bonuses that are essentially guaranteed regardless of performance, assuming
you don't do so poorly that you are fired. I believe a lot of the motivation of teachers comes internally,
and is not necessarily tied to money since there are not any monetary incentives currently.
Respondent #15 – Female, 14 years, $50,000 - $59,999
In my first teaching job, the school faculty and staff were evaluated across several measures (local and
national) by all stakeholders (co-workers, students, families, board, and administration). A monetary
bonus was determined by this process and awarded equally to all. This method made us feel valued and
rewarded while creating a community of improvement.
Respondent #21 – Male, 7 years, $50,000 - $59,999
My personal intuition is that as long as teacher compensation is a reasonable living wage that would
support a family and children, then incentivized compensation is unnecessary and may have unforeseen
effects.
Respondent #25 – Male, 20+ years, Over $60,000 - $69,999
For me, intrinsic rather than extrinsic motivation is key. If I see my students get excited about a lesson I
created, that goes much farther than just extra money.
Respondent #26 – Male, 25+ years, Over $80,000
Everyone likes to be paid more money. I would never grade inflate to get more money. I feel confident
enough in my teaching skills that I could help students achieve honest increases in performance.
I am certified in various subjects, so I would consider teaching a different subject, or additional class to
gain a bonus. I would not teach another subject if I were not qualified to do so.
S:
This was comprehensive, well thought out and well argued.
See my specific comments in the text.
A
--Larry Stybel
OB in the News 2016.11.21
For the second installment of OB in the News, I have chosen an article discussing the
reasoning behind recent front office changes for the NHL club, The Florida Panthers. The article,
posted on the reputable hockey news outlet Today’s SlapShot, discusses a surprising
restructuring following the most successful regular season in the franchise’s history. The hook –
all the motivating factors for the shakeup tie directly into improving the organization’s ability to
get work done with and through others.
Very nice.
If examined further, their decision is purely an organizational behavior one, and shouldn’t have
shocked hockey pundits around the world despite coming on the heels of a successful season.
Throughout the rest of this paper, I will be discussing the importance of placing individuals in
roles where they’ll find success, the ability for varying perspectives to improve decision-making,
as well as the relationship between team decision-making and success. All of which have come
to the forefront during our class discussions. Excellent summary. You are a clear thinker and an
excellent English writer. I’m impressed, given English is not your native language.
To summarize the article, the reporter, Wilke, interviewed the two recently promoted
Assistant General Managers (AGMs) for the Florida Panthers to gain a better understanding of
what so many people in the hockey world have been asking: why would a team, which finally
found a great deal of success, go through such a makeover? According to Werier and Joyce, the
AGMs, it all comes down to being structured for success. Joyce goes on to explain a main driver
was employing the same approach they have towards their athletes to the front office – playing to
individual strengths. As such, they felt it was necessary to move employees around so they
would be working from a place of strength. Another motivating factor was the resultant increase
in varying perspectives. Following the shakeup, the Florida Panthers will have one of the biggest
front offices in the league. The reason? According to Joyce, “the more dedicated and smart
people you put into a room to make those big decisions, the better those decisions are going to
be” (Wilke). Lastly, the team felt with the new internal structure, million dollar decisions would
have to go through a more extensive and, as a result, conclusive decision making process. Werier
himself states, their “decision-making process is a holistic one, with everyone playing a crucial
role”, with feedback starting at the bottom and working its way up (Wilke). While all this
internal shifting stunned hockey fans, it got me thinking – if sports can be boiled down to a
business, are these sound organizational behavior practices?
In the previously examined book, How the Mighty Fall: And Why Some Companies
Never Give in, Jim Collins discusses companies’ tendencies to deviate from their success by
violating what he has dubbed “Packard’s Law” during Stage 2 of decline. Here, the argument is
“no company can consistently grow revenues faster than its ability to get enough of the right
people to implement that growth” (Collins 55). One defining characteristic of “right” people
according to Collins is the need for responsibility and accountability rather than hiding behind
lines of bureaucracy (57). While the article doesn’t mention terms such as responsibility or
accountability, Joyce has the following to say about placing individuals in a position where they
are likely to succeed: “we try to play players to their strengths, and with this restructuring, we’re
trying to allow those in the front office to manage to their strengths as well” (Wilke). Personally,
I think this sentiment is really easy to relate to, regardless of the professional field. I know from
personal experience – whether it be taking specific roles in group projects or being assigned
certain type of work during internships – aligning work with interest and capabilities produces
the best results.
That said, I didn’t just want to take my word for it so I created a Likert scale to question
students on whether or not they share the same sentiment that I do. Through the use of a Likert
scale I surveyed 25 students asking the following question: on a scale of 1-10, 10 being always 1
being never, how likely are you to ask a newly formed group on members’ strengths and
preferences before dividing responsibilities? The question produced the following results:
While there is a clear preference for determining strengths and interests in hopes of creating a
more efficient outcome, my data is likely somewhat skewed. While the first 10 people I surveyed
were phone calls to former classmates, where I marked down their responses on the chart, the
remaining 15 responses were students I came across in the library where I let them track their
own results. What I noticed was the first 10 results were more dispersed compared to the
remaining 15. This is an excellent and very, very, very important observation. I am glad you
noticed it. I am impressed you notice it. What do you make of it?
However, I still believe the overwhelming majority are more likely than not to ask the question
prior to determining deliverables. This sentiment is echoed by many students stating that in the
instances where they have refrained, they’ve ended up having to either redo someone else’s work
due to incompetence, or take on more responsibility than planned due to students failing to fulfill
their requirements.
Not only has the Florida Panthers been determined to place the right people in the right
seats, but these moves are also aimed at increasing the organization’s “bandwidth” and placing
“more dedicated and smart people” at the decision table (Wilke). According to researcher Sidle,
there is one important driver of good decision-making – debate. The paper discusses new
research which shows “group dissent can help uncover a decision-making challenge known as
hidden profiles”, which as the article explains are situations where team members may have
varying, integral information to solve the same problem (Sidle 74). In order to test the
hypothesis, a study was created to stimulate a hiring scenario where candidates answered
different sets of questions in order to produce hiring profiles. The conclusion was three-pronged:
disagreements during group discussions increased information sharing, increased the likelihood
of discovering hidden profiles, and decreased bias – all of which yield better results (Sidle 7475). This sentiment was echoed in the first few weeks of class when we discussed peripheral
vision. Much like car accidents, where an overwhelming majority occur at the side of the vehicle,
the lack of “peripheral vision” in a business context can be a great danger. Thank you for
bringing in a concept from the course!
As we learned in class, when the pace of business increases, firms are more susceptible to
overlook threats and make poor decisions. An effective way to combat this risk is to hear varying
perspectives, making sure all factors are being considered. An approach the Florida Panthers are
taking.
Another tactic they are using when making determinations is hearing feedback and
recommendations from different areas within their organization. Not only do they turn to the
large senior management group they’ve assembled, but they also reach out to lower ranking
members such as their head of development to better understand organizational needs. According
to authors Michailova and Husted, knowledge sharing hostility – lack of free flow of information
– decreases the efficacy of firms. While they focused specifically on Russian companies, the
findings are easily transferable. Consistent with an extremely high power distance ranking of 93
on the Geert-Hofstede scale, the authors observed Russian workers are unlikely to intervene in
the decision making process or offer suggestions for fear of disrespecting their managers or
showing disloyalty (Michailova and Husted 13-14). Making matters worse is the tradition of
secrecy that has come to characterize Russian companies. The combination of the two, results “in
a slow recognition of organizational problems”, according to the authors, and serious problems
may remain undisclosed (Michailova and Husted 14). Furthermore, the research goes on to argue
the power distance witnessed in Russian culture causes managers to treat information as a source
of power, which decreases the exploration for new ideas (Michailova and Husted 15). Lastly, the
authors argue the sense of power discourages the uses of discussions with others, especially
subordinates. This results in “a weak foundation for judgement” and cultivates a decision making
process focused on intuition and gut feelings as opposed to the Western fact-based approach
(Michailova and Husted 16). While the article I chose doesn’t examine differences between a
Russian and Western management style by any means, the impediment knowledge hostility has
on effective decision making is a clear explanation for some of the front office changes made by
the Florida Panthers. Nice.
Additionally, Werier’s comments regarding the level of cross-organizational input is
consistent with how the role of Baseball managers appears to be changing. Not only do they
receive feedback from scouts who they view as the “gatekeepers”, they also seek the help of their
head of development, their analysts, and sit down with some of their most renowned resources
with the goal of “just listening to any lessons they can share from their incredible careers about
how to improve a hockey team and how this transaction might impact our club” (Wilke). Once
they have synthesized all that information, they then present it to the General Manager and head
of hockey operations, who in turn bring it to ownership. This flow of information places a great
importance on communication skills – consistent with the baseball manager role. As we saw in
the Wall Street Journal’s “What Are Baseball Managers Actually Doing?”, one of their main
objectives these days is gathering information through the use of their communication skills to
make well informed decisions. Again, thanks for integrating some of the things we did in this
course into your paper!
The article quotes Los Angeles Angels manager Mike Scioscia saying, “if just one guy is making
the decisions based on what he knows, then he better be right 100% of the time, and nobody is.
You welcome that input, and it helps in your decisions” (Diamond). This is exactly what the
emphasis on power distance in Russian companies deters and what the Florida Panthers are
trying to solve through their recent restructuring.
Through reading this article, and more importantly as a result of my additional research,
specifically the juxtaposition of efficacy in decision-making between Russian and Western firms,
the free flow of information is integral to success. As a result, I would develop a three-pronged
approach to increase my ability of getting work done with and through others. First, I would have
mandatory weekly meetings with upper management. That’s behavioral.
The purpose of these meetings would be to hear varying perspectives and understand the
reasoning behind their actions. Second, in the event I was a Managing Director at an Investment
Bank, I would create a feedback system. Here, associates would be tasked with sitting down with
analysts to gain an understanding of possible inefficiencies in place, as well as to gauge whether
analysts are receiving the correct exposure. For example, are the analysts who excel at technical
work largely doing execution work, where their skills would be best deployed, or are they
focused on pitch work. Then, MDs would have the same discussion with associates. Once all
information has been aggregated, potential changes could be made to improve efficiencies or
redistribute work in a more adequate manner. Lastly, when it comes to hiring individuals as well
as doing annual reviews, I would make sure individuals are reviewed by various levels, and that
there is a roundtable of sorts where each individual involved in the process can voice their
findings. This in turn, should uncover hidden profiles, which will lead to better decision making
on the quality of people within the organization – people who are charged with driving firm
success.
Works Cited
Collins, James C. How the Mighty Fall: And Why Some Companies Never Give in. New York:
Jim Collins, 2009. Print
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