Tag Archives: Performance

Fewer US Employees Have Workplace Friendships Compared with Other Countries

Workplace friendships positively affect task performance, yet Americans claim fewer friendships at work than employees in other countries.
The result could be competitive disadvantage for U.S. companies in world markets.

Karen Jehn

Karen Jehn

Teams composed of friends outperformed acquaintance groups in decision making and effort tasks, reported University of Melbourne’s Karen A. Jehn and Priti Pradhan Shah of University of Minnesota.

Likewise, workplace friendships and coworker support were associated with more effective performance in a meta-analytic study of more than 160 groups with nearly 78,000 employees by David A. Harrison of University of Texas and colleagues.

Even employees’ perceptions of workplace friendship opportunities directly affected job involvement and job satisfaction.

Christine M. Riordan

Christine M. Riordan

These perceptions indirectly affected organizational commitment and turnover intent among more than 170 employees in a small electric utility, reported Adelphi University’s Christine M. Riordan and Rodger W. Griffith of Ohio University.

Olenka Kacperczyk

Olenka Kacperczyk

However, fewer than one-third of Americans reported having a close friend at work, one indicator of employee engagement according to The Gallup Organization.
More importantly, workplace friendships have significantly declined over the past 3 decades in the U.S, but continue to be strong social connections in Polish and Indian organizations, found MIT’s Olenka Kacperczyk with Jeffrey Sanchez-Burks, and Wayne E. Baker of University of Michigan in an unpublished working paper.

Jeffrey Sanchez-Burkes

Jeffrey Sanchez-Burkes

They conducted surveys across the U.S., Poland, and India and determined that less than one-third of Americans reported inviting their closest colleagues to their homes, compared with two-thirds of Polish participants and nearly three-quarters Indian employees.

The discrepancy between groups for spending longer off-work time with workplace friends is dramatic:  Just under half of Indian survey volunteers reported going on vacation with closest co-workers, whereas one-quarter of Polish workers and only 6% of Americans said they shared a holiday with colleagues.

Richard Nisbett

Richard Nisbett

Americans were also significantly less concerned with social interactions during work tasks, compared with Mexican and Mexican-American participants, found University of Southern California’s Jeffrey Sanchez-Burks with Richard E. Nisbett and Oscar Ybarra of University of Michigan.

Oscar Ybarra

Oscar Ybarra

After volunteers from each cultural background watched a four-minute video of two people working together, Mexicans and Mexican Americans more accurately recalled social and emotional group content.

Mexicans and Mexican Americans also preferred workgroups with a strong interpersonal orientation, and said that group work performance could be improved by focusing on socio-emotional elements.

Robert D. Putnam

This focus on socio-emotional performance more greatly influenced group task success than the group’s ethnic composition.
This suggesting that Americans’ trend toward social disengagement, described as ‘bowling alone’ by Harvard’s Robert D. Putnam, could undermine their productivity.

Adam Grant

Adam Grant

One explanation for national differences is that in the U.S., long-term employment is less secure than in countries with labor protection statues.
As a result, people can’t expect to stay indefinitely in one role, so remain detached to prepare for voluntary or involuntary job changes.
In fact, Wharton’s Adam Grant argued that “We view co-workers as transitory ties, greeting them with arms-length civility while reserving real camaraderie for outside work.”

Some observers attribute interpersonal disengagement to newer models of working, such as telecommuting and working remotely.

Ravi S. Gajendran

Ravi S. Gajendran

However, evidence from more than 45 studies of at least 12,000 employees that “telecommuting had no generally detrimental effects on the quality of workplace relationships,” particularly when people came to an office at least half the time, according to University of Illinois’s Ravi S. Gajendran and David A. Harrison of University of Texas.

Even if workplace relationships don’t become friendships, brief encounters can be high-quality connections characterized by respect, trust and mutual engagement.

Jane Dutton

Jane Dutton

These interactions energize both parties, posited University of Michigan’s Jane E. Dutton, and may address potential decreases in employee engagement and collaborative productivity.

-*To what extent do you have strong workplace friendships?

-*How have you seen workplace friendships affect work quality and productivity

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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 or 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, so 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). but not for female analysts.
This suggests 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 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 positions with employers.

Women capable of executive roles at these Wall Street firms may remain in analytical roles because promotion to General Manager roles depend 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 women should have equal opportunities to fill network holes and increase their possibility of advancement.

However, Burt 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.

He explained 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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Group “Intelligence” Linked to Social Skills – and Number of Women Members

Anita Wooley Williams

Anita Wooley Williams

A group’s “general collective intelligence factor” is related to social and communication skills, not to the average or maximum individual intelligence of group members, found Carnegie Mellon’s Anita Williams Woolley, Christopher F. Chabris of Union College, with MIT colleagues Alex (“Sandy”) Pentland, Nada Hashmi, and Thomas W. Malone.

Instead, group intelligence was most closely associated with:

Christopher Chabris

Christopher Chabris

More than 695 volunteers completed an individual I.Q. test, then collaborated in teams to complete workplace tasks including:

  • Logical analysis,
  • Coordination,
  • Planning,
  • Brainstorming,
  • Moral-ethical reasoning.
Alexander Pentland

Alexander Pentland

Teams with higher average I.Qs performed similarly to teams with lower average I.Qs on collective intelligence tasks.

Simon Baron-Cohen

Simon Baron-Cohen

Each participant also completed a measure of empathy  and social reasoning based on identifying emotional states portrayed in images of people’s eyes.

This instrument, Reading the Mind in the Eyes , was developed by University of Cambridge’s Simon Baron-Cohen, Sally Wheelright, JacquelineHill, Yogini Raste, and Ian Plumb.

Reading the Mind in the Eyes

Sally Wheelright

This ability to infer other team members’ emotional states correlated with team effectiveness in solving workplace tasks, but not with extraversion and reported motivation.

Teams that performed best in online and face-to-face situations, also demonstrated stronger social and communication skills:

  • Accurate emotion-reading, empathy, and interpersonal sensitivity,
  • Communication volume,
  • Equal participation.

David Engel

High-performing teams excelled in inferring others’ feelings even if conveyed without visual, auditory, or non-verbal cues while interacting online in a study by Wooley’s team collaborating with MIT’s David Engel and Lisa X. Jing.

These studies demonstrate that teams may increase task performance when members have well-developed “Emotional Intelligence,” social insight, and communication skills rather than the highest measured IQ.

  • How do you enhance a work group’s collective intelligence in performance tasks?

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

Claude Steele

Claude Steele

Stereotype threat occurs when prevailing but often-inaccurate concepts of a group’s typical behavior are activated among these group members.
This experience is associated with reduced scores on standardized test performance for women and African Americans in numerous studies by Stanford’s Claude Steele and Joshua Aronson now of NYU.

Joshua Aronson

When Steele and Aronson elicited “reactance” (resistance) to these stereotypes, women’s and African Americans’ performance improved more than when the researchers activated a positive shared identity.

Anthony Greenwald

Anthony Greenwald

Stereotypes can be invoked by implicit primes, which led both men and women to confirm gender stereotypes even when they explicitly disavowed stereotypes, found University of Washington’s Anthony Greenwald and Mahzarin Banaji, then at Yale.
However, when evaluators focused on tasks, including judgment challenges about members of a stereotyped group, judges were less likely to render discriminatory decisions.

Laura Kray

Laura Kray

In contrast, both women and men showed stereotype reactance — the tendency to behave in contrast with the stereotype in negotiation tasks — when stereotypes were elicited with explicit primes, reported University of California, Berkeley’s Laura Kray, Leigh Thompson of Northwestern and Columbia’s Adam Galinsky.

Stereotype threat can be advantageous to men when negotiating with women, who are stereotypically considered less skillful negotiators.
Unlike Steele’s finding, Kray’s team observed performance-equalizing effects of activating a shared identity that transcends gender.

Gordon Moskowitz

Gordon Moskowitz

People can dissociate themselves from prevailing stereotypes with contrast primes, according to Lehigh University’s Gordon B. Moskowitz and Ian W. Skurnik of University of Utah.
They differentiated:

Standard-of-Comparison Prime, which produces greatest contrast by citing an extreme illustration.
This strategy relies on perception and requires less cognitive effort.

Set–Reset Prime, which typically uses trait descriptions, and produces greatest contrast when moderate rather than extreme.
This approach requires significant mental effort.

Ryan P. Brown

Ryan P. Brown

Even men are not immune to stereotype threat.
Male participants “choked” when performing after a positive male stereotype was activated by University of Oklahoma’s Ryan P. Brown and Robert A. Josephs of University of Texas. 
Similar to women’s performance decrements in response to negative stereotype threat, Brown and Josephs hypothesized that men’s performance was 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 reactance.
In addition, it’s valuable to refer to a shared identity that transcends the stigmatized group identity.
Eliciting contrast effects through examples and trait descriptions is another way to diminish the impact of stereotype threat of performance.

 

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

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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?

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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”?

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Useful Fiction: Optimism Bias of Positive Illusions

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

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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?

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