Category Archives: Career Development

Career Development

Reputation Affects Women’s Promotion, Earnings

Lily Fang

Lily Fang

Sterling Huang

Men gain greater reputation and job performance benefits from professional connections than women with equivalent or better education and job skills, according to INSEAD’s Lily Fang and Sterling Huang of Singapore Management University

Lauren Cohen

Lauren Cohen

Fang and Huang examined U.S. equity analysts’ alumni connections with senior officers and board members of up to eight companies, using an approach pioneered by Harvard’s Lauren Cohen, and Christopher Malloy with Andrea Frazzini, of AQR Capital Management.

Christopher Malloy

They considered analysts’:

  • Year-end earnings per share (EPS) forecasts,
  • Buy – sell stock recommendations from 1993 to 2009,
  • Price impact of their recommendations,
  • Selection to “All America Research Team” (AA) by Institutional Investor magazine during the same period.
    This recognition is based on the institutional investors’ subjective evaluation of each analyst’s industry knowledge, communication, responsiveness, written reports, and related skills.
Andrea Frazzini

Andrea Frazzini

Forecast accuracy is one of the least important selection criteria,.
As a result, skillful analysts may be overlooked as an “All America” member if they are not visible and well-regarded by decision-makers.

Connections directly contributed to male analysts’ likelihood of being named to the  “All America Research Team” (AA).
This relationship did not hold for female analysts, suggesting that investors subjectively value male analysts’ connections but not those of female analysts.
This difference leads to significant financial consequences for male and female analysts because those awarded the AA title earn around three times more than those without.

About 25% of women and men analysts shared a school tie with a senior officer or board member in the firms they cover, and these connections significantly improved men’s forecast accuracy more than women’s.
These connections also improved the impact of male analysts’ stock recommendations, measured by market reaction to their buy and sell calls.

Female analysts with a connection to a female executive at firms they covered had a highly significant improvement in accuracy ranking, yet male analysts with a male connection experienced almost twice as much accuracy improvement.

Herminia Ibarra

Herminia Ibarra

This significantly different impact of similar connections early in women’s and men’s careers could explain gender gaps that exist throughout long-term career trajectories.
This finding supports Herminia Ibarra’s similar results for men and women in an advertising firm, where men capitalized on network ties to improve their employment positions.

Women who are capable of executive roles at these Wall Street firms may remain in analytical roles because promotion to General Manager roles depends on subjective evaluations by current decision makers, who are usually men.

Fang and Huang concluded that despite mandated protections against gender discrimination in the U.S, men and women may be evaluated using different subjective criteria, even with the benefit of social connections.
This leads to differential career advancement for women and men.

Ronald Burt

Ronald Burt

These career-related social connections, or social capital, are affected by legitimacy, reputation, and network structures, argued University of Chicago’s Ronald Burt.
He noted that “holes” in a social network are entrepreneurial opportunities to add value, and Burt argued that women should have equal opportunities to fill network holes and increase their possibility of advancement.

However, he noted that “entrepreneurial networks linked to early promotion for senior men do not work for women” because women are not accepted as legitimate members of the population of highly promotable candidates.

Burt opined that women and minorities who succeed despite this disadvantage gain access to social capital by leveraging the network of a legitimate strategic partners.
This economic analysis may explain the powerful advantage of sponsors for women and minorities in the workplace.

-How do you identify and fill “structural holes in social capital networks”?

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©Kathryn Welds

Nothing to Lose: Effective Negotiating Even When “Powerless”

Michael Schaerer

Most negotiators prefer to have a “fall back position.”
However, having no alternatives and less power than co-negotiators can improve outcomes, found INSEAD’s Michael Schaerer and Roderick Swaab with Adam Galinsky of Columbia.

Alternatives enable negotiators to gain concessions from co-negotiators because they have a BATNA – Best Alternative To a Negotiated Agreement, defined by Harvard’s Roger Fisher and William Ury.

Roger Fisher

Roger Fisher

When an alternative is weak, it can undermine negotiating outcomes more than having no alternative because it establishes an “anchor point” based on competing options.

Anchoring is a frequent cognitive bias characterized by overvaluing one piece of information, according to Hebrew University’s late Amos Tversky and Daniel Kahneman of Princeton.

William Ury

William Ury

Negotiators usually anchor on the value of alternatives when making a first offer, and people with weak alternatives generally make lower first offers than those with no alternative.
“Lowball” first offers based on few or poor alternatives usually undermine a negotiator’s final outcome.

Professional athletes and their agents provide examples of negotiating better deals when they have no “back up” offers and “nothing to lose,” so they can set ambitious anchor points.

Amos Tversky

Amos Tversky

In a separate study, Schaerer and team asked a hundred people whether they would prefer to negotiate a job offer with a weak alternative or without any alternative.
More than 90 percent of participants preferred an unattractive alternative offer, confirming the popular assumption that any alternative is  better than no alternative.

Another of Schaerer’s lab studies asked volunteers to imagine selling a used music CD by The Rolling Stones.
Participants were randomly assigned to three groups which received different information about their negotiation situations:

  • No offers (no alternative),
  • One offer at USD $2 (weak alternative),
  • A bid at USD $8 (strong alternative).
Roderick Swaab

Roderick Swaab

Volunteers in each group proposed a first offer, and rated the degree of power they felt.
Not surprisingly, people with the strong alternative felt the most powerful and those with no alternative felt the least powerful.

However, people with a weak alternative felt more powerful than those with no alternative, but they made lower first offers, signaling less confidence than participants with no alternative.
Having any alternative can help people feel powerful but can undermine negotiation performance.

Schaerer’s team explored this paradox by pairing a  “seller,” who offered a coffee mug during a face-to-face meeting, and a potential “buyer.”

Adam Galinsky

Adam Galinsky

Before the meeting, the seller received a phone call from “another buyer,” who was actually a confederate of the researchers.
For half of the “sellers,” the potential buyer either made a low offer or declined to bid.

“Sellers” without an alternative offer said they felt less powerful, but made higher first offers and received significantly higher sales prices than negotiators with an unattractive alternative.

In another situation, half of the “sellers” concentrated on available alternatives (none, weak, or strong) and the remaining negotiators focused on the target price.

Volunteers with unappealing alternatives negotiated worse deals than those with no options when they focused on alternatives.
“Sellers” avoided this pitfall by concentrating on the target price.
These findings support the benefit of focusing on the goal when alternatives are weak, and the power of first-offer anchors.

Negotiators with non-existent or unappealing alternatives can beware of making cautious first offers when they feel powerless.
Instead, negotiators can set audacious goals and make an ambitious opening offer because they have the benefit of “nothing to lose.”

  • How do you overcome lowball anchoring when you have few negotiation alternatives?

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©Kathryn Welds

Positive Thinking, Mental Contrasting Plus WOOP to Improve Performance

Gabriele Oettingen

Gabriele Oettingen

Positive thinking without implementation strategies is ineffective wishful thinking, found NYU’s Gabriele Oettingen.
She advocates a “Mental Contrast” process by considering obstacles and potential ways to manage them, using a mnemonic WOOP:

  • Wish,
  • Outcome,
  • Obstacle,
  • Plan.
Andreas Kappes

Andreas Kappes

Oettingen and University of London colleague Andreas Kappas noted two less effective approaches to goal engagement:

– Indulging by thinking about the desired future state without ways to overcome obstacles

– Dwelling by thinking about the present reality without future goals and ways to achieve them,

People who use these approaches are less committed to their goals than those who use Mental Contrast, even when chances of success were good in interpersonal relations, academic achievement, professional achievement, health, life management experiences.

Mental Contrast was an effective self-regulatory technique when coupled with Implementation Intentions (MCII) to improve achievement, interpersonal, and health habits.

However Mentally Contrasting was less effective when perceived chances of success were low.
This approach led to disengagement from goals.

In this case, Indulging in the future goal fantasy or Dwelling only in the present reality both maintained goal commitment.

Probability of Success-Mental Contrast-Indulve-Dwelling

In another study, volunteers who spent more time imagining working in a “dream job,” but who also had lower expectations of achieving this goal, received fewer job offers and lower starting salaries, found Oettingen and Doris Mayer of University of Hamburg.

They differentiated the motivational impact of:

  • Positive expectations for future success, which predicted high effort and successful performance,
  • Positive fantasies when the probability of success is low, which didn’t increase effort.

Mental Contrasting helped people disengage from unfeasible goals like rehabilitating an ended relationship or achieving an unattainable professional identity.
When chances of success are low, people can use Mental Contrast to move on to more feasible goals.

When facing controllable and escapable tasks, people benefitted from Mentally Contrasting fantasy with reality.
However, when facing tasks that cannot be mastered such as terminal illness, Indulging in positive fantasies enabled people to maintain a positive outlook.

Volunteers increased performance when they linked a negative personal attribute (“impulsivity”) with its positive element (“creativity”).

Timur Sevincer

Timur Sevincer

Participants showed greater effort-based creativity than those who were given no information or told that there’s no association between impulsivity and creativity.

This “silver lining theory” increased performance and enabled people to manage perceived negative attributes.

Mentally Contrasting a desired future (such as excelling in an intelligence test and writing an essay) with a present reality also increased physiological energization measured by systolic blood pressure and grip strength.

This energy activation from mental processes can increase effort to perform an unrelated task, concluded University of Hamburg’s A. Timur Sevincer and P. Daniel Busatta collaborating with Oettingen.

Philip Daniel Busatta

Philip Daniel Busatta

Coupling Mental Contrasting with Implementation Intentions (MCII) helped economically-disadvantaged children convert positive thoughts about future outcomes into effective action, found University of Pennsylvania’s Angela Lee Duckworth, Teri A. Kirby of University of Washington with NYU’s Anton Gollwitzer and and Oettingen.

Teri Kirby

Teri Kirby

Student volunteers learned to compare a desired future with potential obstacles, then developed if–then implementation intentions to potential outcomes.

More than 75 U.S. urban middle school 10 year olds were randomly assigned to learn either MCII or a Positive Thinking strategy as a control comparison.

Student volunteers who applied MCII tools to their academic goals significantly improved their report card grades, attendance, and conduct, suggesting the value of Mental Contrasting to enhance goal commitment and realization.

Mental Contrasting can increase motivation, particularly when coupled with Implementation Intentions.
An exception occurs when the probability of successfully achieving goals is low.
In those cases, Indulging or Dwelling strategies are more effective in maintaining goal motivation.

  • How have you seen Mental Contrasting and considering your probability of success to manage your motivation and performance?

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©Kathryn Welds

Activate Women’s, Minorities’ Stereotype Threat Reactance to Enhance Performance

Claude Steele

Claude Steele

Stereotype threat occurs when expectations of a group’s typical behavior are activated among group members, resulting in reduced scores on standardized test performance for women and African Americans.

Joshua Aronson

When Stanford’s Claude Steele and Joshua Aronson now of NYU, helped women and African Americans participants resist these stereotypes, participants’ performance improved more than when the researchers activated a positive shared identity.

Anthony Greenwald

Stereotypes can be invoked by “implicit primes” even when people explicitly disavowed stereotypes, found University of Washington’s Anthony Greenwald and Mahzarin Banaji, then at Yale.
However, when volunteers focused on tasks, including judgment challenges about members of a stereotyped group, participants were less likely to render discriminatory decisions.

Laura Kray

Laura Kray

Both women and men showed resisted stereotypic behavior in negotiations when stereotypes were elicited with explicit primes, reported University of California, Berkeley’s Laura Kray, Leigh Thompson of Northwestern and Columbia’s Adam Galinsky.
In this case,  activating a shared identity helped participants resist gender stereotypic expectations in negotiation performance.

Gordon Moskowitz

Gordon Moskowitz

People can separate themselves from prevailing stereotypes with contrast primes, by providing examples that contradict a stereotype, found Lehigh University’s Gordon B. Moskowitz and Ian W. Skurnik of University of Utah.

Ryan P. Brown

Ryan P. Brown

Men from majority groups also can experience stereotype threat, found University of Oklahoma’s Ryan P. Brown and Robert A. Josephs of University of Texas. 
Male participants performed less effectively after a positive male stereotype was activated as a comparison criterion.
Men’s performance was also undermined by “pressure to live up to the standard.”

Robert A Josephs

Robert A Josephs

People can manage stereotype threat by explicitly mentioning the stereotype to activate resistance.
In addition, people can focus on a shared identity that transcends the stigmatized group identity, and identifying examples that contradict the stereotype.

  • How do you manage stereotype threat for yourself and others?
  • How effective have you found activating stereotype reactance?

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©Kathryn Welds

“Precise” Offers Provide Negotiation Advantage

Malia F Mason

Malia F Mason

Opening negotiation offers typically “anchor” the discussion and shape settlement values.
Many people make opening offers in “round” numbers like $10 instead of “precise” numbers like $9.
However, “round number offers” were less effective than “precise” offers in negotiations, found Columbia’s Malia Mason, Alice J. Lee, Elizabeth A. Wiley, and Daniel Ames.

Y Charles Zhang

Y Charles Zhang

Negotiators can improve their outcomes by specifying offers in precise values.
Precise first offers more potently anchored the negotiation range than round number proposals, and people who proposed precise offers were perceived as more confident, credible, and “well-informed” regarding actual value.

Norbert Schwartz

Norbert Schwartz

Similarly, consumers have less confidence in precise estimates when they doubt the communicator, found University of Michigan’s Y. Charles Zhang and Norbert Schwarz of University of Southern California.

A drawback of precise offers is that some co-negotiators perceive them as “inflexible.
Despite this risk, people who received precise offers generally made more conciliatory counter-offers, leading to smaller adjustments and more favorable final settlements.
Precise offers also led to better final deals even when the negotiator opened with a less ambitious precise offer.

Martin Schweinsberg

Martin Schweinsberg

Another benefit of precise offers is that they are less likely to be seen as aggressive or greedy by a co-negotiator, according to INSEAD’s Martin Schweinsberg collaborating with Gillian Ku and Madan M. Pillutla of London Business School’s and Cynthia S. Wang of Oklahoma State University.
Ambitious first offers may lead an impasse or stalled progress toward settlement if a negotiation partner takes offense or walks away from talks.

Gillian Ku

Gillian Ku

This risk of stalled negotiation increases if negotiators see themselves in a lower-power position and receive an extreme offer.
These negotiators can be more willing to end negotiations,

Manoj Thomas

Manoj Thomas

Precise offers may obscure their actual value, found Cornell’s Manoj Thomas and Vrinda Kadiyali with Daniel H. Simon of Indiana University.
Buyers underestimated the size of precise prices, particularly under uncertain conditions:  U.S. homebuyers paid more when list prices were precise, and volunteers said they would follow this strategy in buying a home.

Vrinda Kadiyali

Vrinda Kadiyali

Precise offers provide some of the benefits of favorably anchoring negotiation discussions while reducing risks of “offensive” extreme offers.

-*How effective have you found “precise” opening offers in achieving your negotiation goals?

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©Kathryn Welds

Women’s Self-Advocacy: Self-Promotion and Violating the “Female Modesty” Norm

Corinne Moss-Racusin

Corinne Moss-Racusin

Some women experience anxiety when required to showcase their accomplishments and skills.
At the same time, they also understand that self-promotion, personal marketing, and “selling yourself” can be required to be achieve recognition and rewards at work.

Gender norms about “modesty” can contribute to women’s discomfort in highlighting their accomplishments.
These implicit rules advocate that women:

  • hold a moderate opinion of their skills,
  • appear humble and avoid pretentiousness,
  • disclaim personal responsibility for success,
  • accept personal responsibility for failure.
Laurie Rudman

Laurie Rudman

In contrast, many American men proactively showcase their skills, and observers see self-promoting men as “competent,” “capable,” and “confident.”
And men who do not advertise their successes generally experience “backlash” like women who self-promote, according to Skidmore’s Corinne Moss-Racusin, Julie Phelan of Langer Research Associates, and Rutgers’ Laurie Rudman.
This suggests that anyone who behaves contrary to expected gender stereotypes may be less favorably evaluated and advance more slowly in careers.

Marie‐Hélène Budworth

Women from cultures that value cooperation, collaboration, and collective accomplishment face limited career advancement if they conform to these norms in self-promoting work cultures, found York University‘s MarieHélène Budworth and Sara L. Mann of University of Guelph.

Deborah A. Small

Deborah A. Small

Likewise, women who adhere to implicit “female modesty” expectations are less likely to ask for promotions and salary increases.
This reluctance contributed to women’s long-term pay disparity according to University of Pennsylvania’s Deborah A. Small, Linda Babcock of Carnegie Mellon University, University of Maryland’s Michele Gelfand and Hilary Gettman.

Peter Glick

Peter Glick

However, if women violate “modesty norms,” they can experience discrimination in hiring, promotion, and wages, reported Rutgers’ Rudman and Peter Glick of Lawrence University and other adverse interpersonal consequences, according to Yale’s Victoria Brescoll.

Mark Zanna

Mark Zanna

People who violate norms typically experience physical arousal including discomfort, anxiety, fear, nervousness, perspiration, increased heart rate, noted University of Waterloo’s Mark Zanna and Joel Cooper of Princeton.

However, if participants attribute this physical activation to “excitement” rather than norm violation, they were more likely to:

  • Engage in self-promotion,
  • Express interest in self-promotion,
  • More effectively describe their accomplishments.
Jessi L Smith

Jessi L Smith

Despite women’s – and some men’s –  career “double bind,” people can consciously communicate more effectively about their successes, demonstrated in studies by Montana State University’s Jessi L. Smith and Meghan Huntoon.

More than 75 women wrote sample essays for a merit-based scholarship valued up to USD $5,000.
One group was composed essays about their own accomplishments whereas another group wrote about another person’s accomplishments.

Andrew Elliott

Andrew Elliott

They also completed Achievement Goal Questionnaire – Revised by University of Rochester Andrew Elliot and Kou Murayama of Tokyo Institute of Technology to evaluate “performance approach” and “performance avoidance.”

The laboratory contained a black box described as a “subliminal noise generator.”
Half the volunteers were told the box produced “inaudible but potentially uncomfortable ultra-high frequency noise,” and they were later asked to evaluate “the effects of extraneous distractions on task performance.”
The remaining participants received no information about the black box.

Victoria Brescoll

Victoria Brescoll

Women who could attribute their experience to the “noise generator” produced higher-quality, more convincing descriptions of their achievements, measured by being awarded significantly higher scholarships prizes.
These women also said they were more interested in the task, which is typically associated with greater intrinsic motivation to showcase personal accomplishments.

In contrast, women who violated the “modesty” norm without reference to the “noise generator” said they:

  • Reported less interest in describing their achievements,
  • Negatively evaluated their performance,
  • Produced lower-quality essays,
  • Were more likely to report fear of failure.

Women perceived as displaying their accomplishments in essays were negatively evaluated by judges, who awarded significantly less to people wrote about their own accomplishments rather than about someone else’s.

Leon Festinger

Leon Festinger

One “workaround” for this self-promotion double bind is to reciprocally advocate for colleagues.
This strategy highlights colleagues’ accomplishments as organizational policies evolve to encourage everyone’s self-promotion.
An example is Google’s self-nomination process for advancement and promotion, coupled with reminder emails to submit self-nominations.

When people redefine showcasing their professional accomplishments as “part of the job,” they tend to perform more effectively and experience less cognitive dissonance.

  • How do you manage the norm against women “bragging” and showcasing their accomplishments?

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©Kathryn Welds

Confident Cluelessness = The Dunning-Kruger Effect + Ignorant Bliss

Stav Atir

Stav Atir

Many people overestimate their own expertise, and do not recognize their own incompetence.
It’s called the Dunning-Kruger effect and has been demonstrated for people’s overestimates of their skills in grammar, emotional intelligence, logical reasoning, firearm care and safety, debating, and financial acumen.

Emily Rosenzweig

Emily Rosenzweig

Cornell’s Stav Atir and  Emily Rosenzweig of Tulane asked volunteers if they were familiar with concepts like centripetal force and photon as well as fictitious terms including plates of parallax, ultra-lipid, and cholarine.

About 90% of participants claimed some knowledge of at least one of the nine fake concepts, and people who thought they were most knowledgeable also said they recognized more of the meaningless terms.

David Dunning

David Dunning

Atir and Rosenzweig concluded that poor performers lack insight about their lack of skill because they ”don’t know what they don’t know.”

Another study by University of California San Diego’s Elanor Williams, Justin Kruger of NYU, and Cornell’s David Dunning asked volunteers to complete a logical reasoning task, an intuitive physics problem, and a financial acumen challenge.

Elanor Williams

Elanor Williams

Some participants achieved perfect scores and expressed confidence in their answers, yet those who achieved no correct answers expressed the same degree of confidence as the most able performers.

Both high and low achievers made judgments based on intuitive “rules,” so they felt confident because they had a clear rationale.
Williams’ team concluded, Rule-based confidence is no guarantee of self-insight into performance.”

Justin Kruger

Justin Kruger

Similarly, people who filed for bankruptcy said they had high confidence in their financial acumen, though their financial management skills didn’t keep them solvent.

More than 25,000 people rated their financial knowledge and completed the 2012 National Financial Capability Study, conducted by the Financial Industry Regulatory Authority with the U.S. Treasury.
Of these, 800 respondents said they filed bankruptcy within the previous two years.

Bankruptcy filers achieved financial knowledge scores in the lowest third of respondents, but they rated their knowledge more positively than financially-solvent respondents.
Nearly a quarter of the recently bankrupted respondents gave themselves the highest possible rating, whereas only 13 percent of other respondents were equally confident.

Deborah Keleman

Deborah Keleman

Even 80 professionally-credentialed physical scientists at top universities provided a number of inaccurate purpose-driven (“teleological”) explanations about “why things happen” in the natural world.

Joshua Rottman

Joshua Rottman

When these professional scientists provided explanations under time constraints, they were twice as likely to endorse inaccurate rationales, reported Boston University’s Deborah Kelemen, Joshua Rottman, and Rebecca Seston.

Rebecca Seston

Rebecca Seston

Scientists were equally likely as humanities scholars to endorse inaccurate arguments despite most physical scientists’ rejection of purpose-driven explanations for natural phenomena.

These results suggest that most people hold pseudo-scientific explanations as “a default explanatory preference”, and could explain the attraction of myth and religion across cultures.

Most people hold a positive view of their capabilities even when faced with contrary evidence.
However, women may hold an unrealistically modest view of their capabilities despite affirming feedback.
These biases in self assessment suggest the importance of realistic recalibration of confidence, aligned with consensual feedback.

-*How do you minimize the risks of “Clueless Confidence”?

-*How can systematic underestimates of competence be reduced to increase “Realistic Confidence”?

Related Post:

Useful Fiction: Optimism Bias of Positive Illusions

Least Skillful Performers May Have Greatest Self-Delusions of Skill: Pointy-Haired Boss Effect

©Kathryn Welds