Tag Archives: Performance

Ethnic Diversity Reduces “Groupthink,” Economic “Bubbles”

Despite progress in raising awareness about implicit bias and stereotypes, most people are less likely to trust recommendations and evaluations from people of different ethnic groups.

Sheen Levine

Sheen Levine

However, this bias may reduce the “herd mentality” that characterized price “bubbles” in U.S. housing and global financial markets, reported Columbia’s Sheen S. Levine, Evan P. Apfelbaum of MIT, Goethe University’s Mark Bernard, Texas A&M’s Valerie L. Bartelt, Edward J. Zajac of Northwestern, and University of Warwick’s David Stark.
They concluded that, “Diversity facilitates friction that enhances deliberation and upends conformity.”

Economic “bubbles” occur when the majority of traders, probably influenced by a type of  “groupthink,” set inaccurate prices.
This leads to a mismatch between market prices and true asset values.

Irving Janis

Irving Janis

Groupthink can occur when three conditions interact, according to Yale’s Irving Janis:

  • Group Cohesiveness
    • Deindividuation,” when group cohesiveness becomes more important than individual dissenting views,
  • Group Structure
    • Homogeneity of group’s social backgrounds and ideology,
    • Group insulation from feedback,
    • Lack of impartial leadership,
    • Lack of norms requiring systematic analysis and decision procedures,
  • Context
    • Stressful external threats,
    • Recent failures,
    • Decision-making difficulties,
    • Moral dilemmas.

      Scott E. Page

A wider range of viewpoints leads to less groupthink and more balanced decisions in a mathematical model developed by University of Michigan’s Scott E. Page and Lu Hong of Loyola University.

Diverse groups ran into fewer “dead ends” when they worked to develop solutions than homogenous groups comprised of individuals who tended to think similarly.

David A. Thomas

David A. Thomas

Likewise, additional experimental evidence by Georgetown’s David A Thomas and Robin J. Ely of Harvard confirmed that identity-diverse groups can outperform homogeneous groups.
Group errors depended on group member ability and member diversity, expressed in the formula:

Collective Accuracy = Average Accuracy + Diversity.

To test the impact of group diversity on market “bubbles,” Levine’s group constructed experimental markets in Singapore and Texas, USA, in which participants traded stocks to earn money.

Evan Apfelbaum

Evan Apfelbaum

More than 175 volunteers with backgrounds in business or finance were randomly-assigned to groups of six ethnically-homogeneous or ethnically- diverse participants.

Traders knew the ethnic composition of their groups, but they couldn’t communicate with each other.
In addition, their “trades” of dividend-paying stock during 10 rounds were anonymous.

Homogeneous groups set inflated selling prices, yet traders in those groups still bought the stock, resulting in increasing stock prices.

Mark Bernard

Mark Bernard

In contrast, traders in diverse groups refused inflated selling prices, so the stock price fell to approximately the price in an “ideal” market with “rational” traders.

When traders and other decision-makers come from similar ethnic, social, and attitudinal backgrounds, they tend to place undue confidence in others’ opinions, and tend not to subject them to rigorous analysis.

Valerie Bartelt

Valerie Bartelt

As a result, they may be more likely to accept prices and deals that deviate from actual underlying values.
Levine’s group concluded that “homogeneity…imbues people with false confidence in the judgment of coethnics, discouraging them from scrutinizing behavior.”

  • How do you mitigate “groupthink” in organizational decision-making?

RELATED POSTS:

Twitter  @kathryn.welds
Facebook Notes

©Kathryn Welds

Advertisements

Confident Cluelessness = The Dunning-Kruger Effect + Ignorant Bliss

Stav Atir

Stav Atir

Most 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, 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 based on having a clear rationale.
Williams’ team concluded, “Rule-based confidence is no guarantee of self-insight into performance.”

Justin Kruger

Justin Kruger

Another example is high confidence in financial acumen among people who filed for bankruptcy, suggesting that their confidence was not supported by their financial management skills.

More than 25,000 people rated their financial knowledge, 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 “teleological propositions are a default explanatory preference” among humans, and could explain their presence in myth and religion across cultures.

As a result, most people hold a positive view of their capabilities even when faced with contrary evidence.
However, some groups, such as women, may hold an unrealistically modest view of capabilities despite affirming feedback.
These biases in self assessment point to 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

Twitter:  @kathrynwelds
Facebook

©Kathryn Welds

 

 

 

Comparative Rankings May Reduce Gender Bias in Career Advancement

Iris Bohnet

Iris Bohnet

An “evaluation nudge” is a decision framing aid that may reduce biased judgments in hiring, promotion, and job assignments, according to Harvard’s Iris Bohnet, Alexandra van Geen, and Max H. Bazerman.

Alexandra van Geen

Alexandra van Geen

They recommended that organizations evaluate multiple employees simultaneously rather than each person independently.
This approach differs from “Stack Ranking” (“Rank and Yank”), advocated by GE’s Jack Welch and critiqued by many.

Multiple simultaneous evaluations are frequently used for hiring decisions, but less frequently when considering employee candidates for developmental job assignments and promotions.

Max Bazerman

Max Bazerman

Bazerman and Sally B. White, then of Northwestern with George F. Loewenstein of Carnegie Mellon demonstrated preference reversals between joint and separate evaluation.

George F. Loewenstein

George F. Loewenstein

Lack of comparison information in separate evaluation typically leads people to rely on internal referents as decision norms. These internal criteria may be biased preferences, according to Princeton’s Nobel laureate Daniel Kahneman and Dale T. Miller of Stanford.

Dale T. Miller

Dale T. Miller

Lack of comparative referents also can lead evaluators to rely on easily calibrated attributes, found University of Chicago’s Christopher K. Hsee.
Both of these mental shortcuts can systematically exclude members of under-represented groups.

Christopher K. Hsee

Christopher K. Hsee

Another problem is the “want/should” battle of emotions and preferences, outlined by Bazerman and Ann E. Tenbrunsel of Notre Dame, with Duke’s Kimberly A. Wade-Benzoni in their provocatively titled article, “Negotiating with Yourself and Losing.”

Ann E. Tenbrunsel

Ann E. Tenbrunsel

They argue that the want self” tends to dominate when deciding on a single option because there’s less information and less need to justify the decision.
In contrast, the more analytic “should self” is activated by the need to explain decision rationales.

Kimberly Wade-Benzoni

Kimberly Wade-Benzoni

Bohnet’s team asked more than 175 volunteer “employees” to perform a math task or a verbal task, then 554 “employer” evaluators (44% male, 56% female) received information on “employees’” past performance, gender, and the average past performance for all “employees.”

“Employers” were paid based on their “employees’’” performance in future tasks, similar to managerial incentives in many organizations.
Consequently, “employers” were rewarded for selecting people they considered effective performers.
Based on information about “employee” performance, evaluators decided to:

  • “Hire” the “employees,” or
  • Recommend the “employees” to perform the task in future, or
  • Return “employees” to the pool for random assignment to an employer.
Keith E. Stanovich

Keith E. Stanovich

The Harvard team found that “employers” who evaluated “employees” in relation to each other’s performance were more likely to select employees based on past performance, rather than relying on irrelevant criteria like gender.

Richard F. West

Richard F. West

In contrast, more than 50% of “employers” evaluated each candidate separately without reference to other “employees,” selected under-performing people for advancement.
Only 8% of employers selected under-performers when comparing “employees” to each other, and multiple raters for multiple candidates also tended to select the higher performing “employees.”

Team Bohnet suggested that people have two distinct and situation-specific modes of thinking, “System 1” and “System 2,” illustrated by University of Toronto’s Keith E. Stanovich and Richard F. West of James Mason University.

Keith Stanovich-Richard West System 1- System 2 ThinkingThese cognitive patterns can lead evaluators to select incorrect decision norms, leading to biased outcomes.

Decision tools like the “evaluative nudge” decision-framing can reduce bias in hiring and promotion decisions, leading to a more equitable workplace opportunity across demographic groups.

-*What other evaluation procedures can reduce unconscious bias in performance appraisal and career advancement selection processes?

Related Posts:

Twitter:  @kathrynwelds
Facebook

©Kathryn Welds

Intrinsic Motives, not Positive Consequences Linked to Achieving Goals, Career Performance

Amy Wrzesniewski

Amy Wrzesniewski

Sustained effort toward a goal may be intrinsically motivated by personal commitment to a larger “mission.”
At the same time, goal-seeking activity may be extrinsically motivated by external rewards, counteracting intrinsic motivation’s positive impact on effective career performance.

Xiangyu Cong

Xiangyu Cong

This complex interaction of internal and external motives was investigated among more than 10,000 people admitted to the United States Military Academy (“West Point”) by Yale’s Amy Wrzesniewski, Xiangyu Cong, Michael Kane, Audrey Omar, and Thomas Kolditz, with Barry Schwartz of Swarthmore.

Michael John Kane

Michael John Kane

Wrzesniewski’s team considered the long-term impact of holding both intrinsic motives (desire to serve and protect citizens) and extrinsic motives (have a respected career) for attending West Point cadets on:

-Promotion to commissioned officer rank,

-Extending officer service beyond the minimum required period of 5 years,

-Selection for early career promotions.

Audrey Omar

Audrey Omar

Cadets who were intrinsically motivated were more likely to accomplish these goals.
However, those who also reported extrinsic motivation were less likely to achieve these career distinctions.

Richard Koestner

Richard Koestner

A meta-analytic review of nearly 130 experiments by University of Rochester’s Edward Deci and Richard Ryan with Richard Koestner of McGill confirmed the undermining effects of extrinsic rewards on intrinsic motivation from childhood through adulthood.

Mark Lepper

Mark Lepper

People may report less intrinsic motivation when extrinsic rewards are available, a phenomenon called the “overjustification hypothesis”  by Stanford’s Mark Lepper, David Greene, and Richard Nisbett of University of Michigan.

Clark McCauley

Clark McCauley

People typically view their work as being intrinsically or extrinsically motivated in a typology that differentiated

Job, mostly extrinsically motivated,

-Career, some intrinsic and extrinsic motivation,

C-alling, intrinsically motivated by fulfillment from the work itself, resulting in greater satisfaction and better performance than the other two orientations, according to Wrzesniewski’s work with Schwartz, collaborating with Bryn Mawr’s Clark McCauley and Paul Rozin of Penn.

Paul Rozin

Paul Rozin

These results  empirically support guidance to find meaning in work rather than to focus on positive consequences of goal achievement.

Thomas Kolditz

Thomas Kolditz

This is especially relevant because the U.S. Military employs extrinsic motive appeals in marketing messages to recruit cadets, suggesting that military services provides “money for college,” “career training,” and enables members to “see the world.”

However, extrinsic motives tend to be associated with less career recognition and tenure than those who find meaning in the organization’s mission.

-*How do you increase intrinsic motivation when extrinsic motivation may seem more appealing?

-*What elements make your work “a calling”?

Related Posts:

Twitter:  @kathrynwelds
Facebook

©Kathryn Welds

Developing “Big 8” Job Competencies

George Hallenbeck

George Hallenbeck

Better job performance is associated with eight capabilities known as “The Big 8”, according to Korn-Ferry International’s George Hallenbeck, in the Leadership Architect® Library of Competencies:

• Dealing with Ambiguity,
• Creativity,
• Innovation Management,
• Strategic Agility,
• Planning,
• Motivating Others,
• Building Effective Teams,
• Managing Vision & Purpose.

He analyzed more than 1500 ratings on this 360 degree assessment, and found that just 12% of executives possessed four or more of “The Big 8.”
None of these organizational leaders demonstrated more than six of these competencies, though they consistently showed more than individual contributors.
This suggests that although executives demonstrate more of critical leadership capabilities than non-leaders, the vast majority have significant room for professional development.

Daniel GolemanExecutives and individual contributors who had more of “The Big 8” competencies also had more of “Career Staller and Stopper” behaviors.
Bold individuals who demonstrate persistance may effectively execute, but may run afoul of key stakeholders and influencers.

Self-Awareness and Self-Management, identified in Daniel Goleman’s framework for Emotional Intelligence, may be a key to balancing between the Big 8’s performance enhancing impacts while mitigating their potential drawbacks in stalling careers.

-*What have you found the most important job competences among organizational leaders and those preparing for future leadership roles?

Related Posts:

Twitter: @kathrynwelds
Facebook Notes:

©Kathryn Welds

Laptop Note-Taking leads to “Shallower Cognitive Processing” than Manual Notes

Pam Mueller

Pam Mueller

Taking notes by hand enhanced understanding and recall more than taking on a laptop computer in a study by Princeton’s Pam Mueller and Daniel Oppenheimer of UCLA.
Volunteers who hand-wrote notes performed better on factual and conceptual questions about the content than those who took notes on a laptop computer.

Mueller and Oppenheimer differentiated two types of note-taking:

Virpi Slotte

Virpi Slotte

More “superficial” information processing is linked to less accurate text comprehension, found University of Helsinki’s Virpi Slotte and Kirsti Lonka.
In addition, shallow processing is associated with lower performance on integrative and conceptual understanding, reported Clemson University’s Brent Igo, Roger Bruning of University of Nebraska, and Victoria University’s Matthew McCrudden.

Kirsti Lonka

Kirsti Lonka

Participants viewed 15-minute TED Talks or recorded lectures while capturing handwritten notes typed on a laptop computer.
Next, volunteers completed two 5-minute distractor tasks and a reading span task to test working memory.

Roger Bruning

Roger Bruning

By that time, 30 minutes had elapsed since the end of the lecture, and participants answered questions about the content:

  • Factual-recall, such as “Approximately how many years ago did the Indus civilization exist?”
  • Conceptual-application, like “How do Japan and Sweden differ in their approaches to equality within their societies?”

Mueller-Oppenheim Question TypesVolunteers who took notes on a laptop were more likely to record verbatim notes and showed poorer performance on factual-recall questions and conceptual-application questions.

Even when participants were explicitly instructed to “take notes in your own words and don’t just write down word-for-word what the speaker is saying,” people using laptops recorded more verbatim notes than manual note-takers, and their comprehension performance did not improve.

Matthew McCrudden

Matthew McCrudden

A similar study included a significantly longer delay between the lecture with note-taking and the comprehension test,.
Half the participants reviewed their handwritten or laptop notes for 10 minutes before the test and the other volunteers answered test questions without reviewing material.

Daniel Oppenheimer

Daniel Oppenheimer

Findings confirmed that people who paraphrase content demonstrate greater content comprehension, enabled by  slower processing with manual note-taking.

Taking notes on a laptop computer enables users to transcribe information at higher speeds, and drawbacks include:

  • Shallower information processing,
  • Decreased conceptual understanding,
  • Reduced factual recall,
  • Distraction in multi-tasking on email or social media.

-*How do you maintain increase comprehension and retention when taking notes using a laptop computer?

RELATED POSTS:

Twitter @kathrynwelds
Google+
Facebook

©Kathryn Welds

“Emotional Contagion” in the Workplace through Social Observation, Social Media

Emotions can be “contagious” between individuals, and can affect work group dynamics.

Douglas Pugh

Douglas Pugh

Emotional contagion is characterized by replicating emotions displayed by others, and differs from empathy, which enables understanding another’s emotional experience without actually experiencing it, according to Virginia Commonwealth University’s S. Douglas Pugh.

Adam D I Kramer

Adam D I Kramer

In addition to direct interpersonal contact, “viral emotions” can be transmitted through social media platforms without observing nonverbal cues, according to Facebook’s Adam D. I. Kramer, Jamie E. Guillory of University of California, San Francisco and Cornell University’s Jeffrey T. Hancock.
This finding suggests the significant impact of social media on workplace interpersonal relations and productivity.

Jeffrey Hancock

Jeffrey Hancock

Kramer’s team found that when positive emotional expressions in Facebook News Feeds were reduced, people produced fewer positive posts and more negative posts.
In contrast, when negative emotional expressions were reduced, the people reduced negative posts, indicating that people’s emotional expressions on a massive social media platform like Facebook influences others’ emotions and behaviors.

Sigal Barsade

Sigal Barsade

People in performance situations are influenced by observing others’ emotions.   
When participants observed positive emotions in a decision task, they were more likely to cooperate and perform better in groups, found Wharton’s  Sigal Barsade.

People who were more influenced by others’ emotions on R. William Doherty’s Emotional Contagion Scale also reported greater:

  • Reactivity,
  • Emotionality,
  • Sensitivity to others,
  • Social functioning,
  • Self-esteem,
  • Emotional empathy.

They also reported lower:

  • Alienation,
  • Self-assertiveness,
  • Emotional stability.
Stanley Schachter

Stanley Schachter

Individuals are more likely to be influenced by others emotions when they feel threated, which increases affiliation with others, according to Stanley Schachter‘s emotional similarity hypothesis.

Brooks B Gump

Brooks B Gump

Likewise, when people believe that others are threatened, they are more likely to mimic others’ emotions, found Syracuse University’s Brooks B. Gump and James A. Kulik of University of California, San Diego.

Elaine Hatfield

Elaine Hatfield

Women reported greater contagion of both positive and negative emotions on Doherty’s Emotional Contagion Scale.
Observers also rated these women as experiencing greater emotional contagion than men in research by Doherty with University of Hawaii colleagues Lisa Orimoto, Elaine Hatfield, Janine Hebb, and Theodore M. Singelis of California State University-Chico.

James Laird

James Laird

People who are more likely to “catch” emotions from other are also more likely to actually feel emotions associated with facial expressions they adopt, reported Clark University’s James D. Laird, Tammy Alibozak, Dava Davainis, Katherine Deignan, Katherine Fontanella, Jennifer Hong, Brett Levy, and Christine Pacheco.
This finding suggests that those with greater susceptibility to emotional contagion are convincing actors – to themselves and others.

Christopher K. Hsee

Christopher K. Hsee

Contrary to expectation, people with greater power notice and adopt emotions of people with less power, found University of Hawaii’s Christopher K. Hsee, Hatfield, and John G. Carlson with Claude Chemtob of the U.S. Department of Veterans Affairs.

Participants assumed the role of “teacher” or “learner” to simulate role-based power differentials, then viewed a videotape of a fictitious participant discussing an emotional experience.
Volunteers then described their emotions as they watched the confederate describe a “happiest” and “saddest” life event.
People in higher power roles were more attuned to followers’ emotions than previously anticipated.

The service industry capitalizes on emotional contagion by training staff members to model positive emotions, intended to increase customer satisfaction and loyalty.

James Kulik

James Kulik

However, customer satisfaction measures were more influenced by service quality than employees’ positive emotion, according to Bowling Green State’s Patricia B. Barger and Alicia A. Grandey of Pennsylvania State University.

Emotions can positively or negatively resonate through work organizations with measurable impact on measures of employee attitude, morale, engagement, customer service, safety, and innovation.

-*How do you intentionally model and convey emotions to individuals and group members?
-*What strategies do you use to manage susceptibility to “emotional contagion”?

RELATED POSTS:

Twitter @kathrynwelds
Google+
Facebook

©Kathryn Welds