The similarity between tipping and bribery


Countries where people are used to giving tips to waiters, cabdrivers, hairdressers, etc., tend to have the highest rate of corruption as well. Yes, Brazil is one of the leaders in the list, as well as Venezuela, Argentina, Colombia, India, Egypt and Turkey. In the other extreme there are countries such as New Zealand, Island, Denmark and Sweden.

The finding is from a study published in the magazine Social Psychological and Personality Science by Magnus Thor Torfason and Francis J. Flynn, from Harvard University, with Daniella Kupor, from Standford University. The researchers tried to prove that tipping and bribery are not actions so distinct as it seems for many at first sight.

Continue reading

Posted in Public administration and regulation, Consumer behavior | 1 Comment

It is giving that you take

Every time there comes a new wave to stimulate the creativity of employees, and, almost always, the results are inconsistent. Offering cool and challenging tasks, freedom to come and go and an office with charming furniture and with snooker and table tennis tables not necessarily make people more inventive and productive. Even less prizes and bonus, which, if misplaced, may lead to a work environment overly competitive and corrupt.

In the paper “The Necessity of others is the mother of invention: intrinsic and prosocial motivations, perspective taking, and creativity”, published at Academy of Management Journal, Adam M. Grant, from University of Pennsylvania, and James W. Berry, from University of North Carolina at Chapel Hill, say that nothing has really worked so far because the motivations for creativity do not come from within the individual, but from the outside. Only when we stop being selfish and become emphatic with other’s necessities is that we can visualize innovative solutions.

Continue reading

Posted in Organizational behavior, Organizations and human resources | 2 Comments

The illusions of magical management

Researcher at Harvard Business School, Rakesh Kurana decided to investigate why organizations often make mistakes when choosing their CEOs, especially in most dramatic moments. In his book Searching for a Corporate Savior: The Irrational Quest for Charismatic CEOs, Kurana reveals that boards prefer outsiders when searching for a new CEO because they know too much about the insiders to consider them potential saviors.

It is an illusionary effect, but that attracts as much as a magician who takes the rabbit out of the hat. As long as we do not know – and do not want to know – exactly how was the trick, we will continue to go to the spectacle. The same way, as long as we do not know – and do not what to know – exactly how an organization reached certain results, we will continue to believe that its leader possesses a supernatural power.

In the May edition of Journal of Management, there is a curious study about the attribution of mystical talents to successful professionals, by Maia J. Young, from University of California, Michael W. Morris, from Columbia University, and Vicki M. Scherwin, from California State University. According to the authors, it is common that leaders are judged by what psychologists and anthropologists call “magical thinking”.

Intuition, talent and charisma are the mysterious powers that we think successful people have. Intuition, because the leader reaches answers spontaneously rather than through analytical processes. Talent, because it is an innate gift. Charisma, as it comes from Greek “divine favor”.

Continue reading

Posted in Organizational behavior, Communications, Organizations and human resources | 2 Comments

The usefulness of useless expressions


Not a long time ago, reengineering and downsizing were fashionable expressions in management. Nowadays, we have resilience, benchmark, empowerment, core business, stakeholder, synergy, bottom line, think outside the box, brainstorm, entrepreneurship. Words like these have been demonized and ridiculed – target, for instance, of comic strips Dilbert, which satirize office life. However, it is impossible to find a business speech that does not employ at least one of them. If everybody is so critical, why do those terms continue to dominate business language?

The answer is in a paper by Robert Cluley, from British University of Nottingham, recently published at academic magazine Organization Studies. Cluley identified three functions of the called buzzwords: they help ones to show authority to others, they allow managers to seem not responsible for their acts and they serve as an euphemism to discussions about sensitive issues.
Continue reading

Posted in Organizational behavior, Communications, Organizations and human resources | 1 Comment

Poor of those who think time is money


In 1748, American Benjamin Franklin wrote, in an essay titled “Advice to a Young Tradesman”, that “time is money”. Today commonplace, the statement by Franklin was a novelty in the beginnings of the Industrial Revolution. When each performed an occupation for own account, the day journey was not necessarily governed by the pressure of productivity. The hours spent out of work were not perceived as lost time.

But Franklin came with a new concept, known among economists as “cost of opportunity”. He said: if a worker can earn ten shillings a day, but decides to spend half of the day abroad, he not only will spend the sixpence used in his diversion, but he will also throw away five shillings, or half of what he would have earned if, instead of “idleness”, he had chosen to work the whole day.

Since then, the notion that time is valuable and scarce, in the economic sense of the term, intensified. Management practices routinely relate time and money, either by a direct form of payment by hour of work or by indirect means such as requiring and measuring results in certain periods.

In the paper “The economic evaluation of time: Organizational causes and individual consequences”, published at Research in Organizational Behavior, Jeffrey Pfeffer, renowned professor at Standford University, and Sanford E. DeVoe, specialized in the relations between money and time at University of Toronto, show how the concept of productive time contaminated our life – and not only at work.
Continue reading

Posted in Organizational behavior, Organizations and human resources | 3 Comments

When the pack itself takes care of the wolves

This is for those who defend that institutions created by the private sector can replace the government in regulation and fiscalization of their activities: a study just published at Administrative Science Quarterly shows how, when markets are left alone, who dictates the rules are the strongest participants. Negative consequences of the unequal power distribution is not restricted to a matter of social (in)justice. If auto-regulation benefits only those who command, the rest of companies or professional classes may become so weakened to the point of bringing the whole industry into disrepute in a moment of crisis. That is, those who exclude sink with those excluded.

This effect is clearly visible in the banking industry, which thrives on customer confidence. Researchers Lori Qingyuan, from University of Southern California; Jiao Luo, from University of Minnesota; and Paul Ingram, from Columbia University, performed an analysis of the New York Clearing House Association (NYCHA) performance, an institution founded by commercial banks that replaced Central Bank in financial market regulation in Manhattan during 60 years, from 1853 to 1913. This period of free market, that succeeded two pioneer experiences of introducing Central Banks in United States, was chaotic: the average lifespan of a bank during this era was five years, and about half of all banks failed.

Continue reading

Posted in Public administration and regulation, Finance | 2 Comments

Responsible, willing, creative, persevering…and loser. Why?


Autonomy, responsibility and meaning make workers happier and more productive. Truth? To some extent, say Jason R. Pierce and Herman Aguinis, from Indiana University, in a paper that was published in the February edition of Journal of Management. In excess, the effect is the opposite: people feel exhausted by the effort and skills required to do the job without a strict supervision.

Pierce and Aguinis point out that, in organizations, variables accepted as leading to positive results actually may lead to negative outcomes. The explanation is that it does not exist a linear relation between cause and effect, but a curvilinear one, in shape of an inverted U. There is an inflection point from which what was good turns into bad. It is impressive the quantity of examples that the researchers were able to collect, based on many studies, to testify the aphorism “too much can be worse than too little”. Here are some of them:

- Not always responsible, organized, persevering and goal oriented people will produce more, and better. Take yourself seriously can be paralyzing, as well;
- Assertive leaders may press too much their subordinates and cause damage to their performance;
- Entrepreneurs who plan a lot often do not reach success, either because they become overconfident or because they are inflexible;
- Companies that have a rapid growth fail, because they risk dangerously or because they get out of control;
- Companies that diversify by activities or by regions my reduce risks and increase efficiency, up to a point when this strategy is counterproductive.

Continue reading

Posted in Organizational behavior, Organizations and human resources | 1 Comment

When humor hurts at work

Studies show how humor improves work journeys and help people produce more and better. But, let’s face it, there are many types of humor: good humor, black humor, self-deprecating humor, and, if you do a search on the Internet, you will find many others. In the professional environment, humor can either motivate employees to work with pleasure as become a weapon in the hands of chiefs to depreciate their subordinates – who will not have the opportunity to retaliate in the same level.

The study “Am I the only one this Supervisor is Laughing at?”, from Yuanyuan Huo e Ziguang Chen, from University of Hong Kong, and from Wing Lam, from The Hong Kong Polytechnic University,  published at Personnel Psychology, has the merit of showing this negative side of humor. The researchers interviewed 243 employees at four manufacturing companies from a Chinese IT corporate. Firstly, the employees themselves answered the questions. To check if a different point of view would lead to a different result, six months later the same questionnaire was applied to employees’ spouses.

Continue reading

Posted in Organizational behavior, Organizations and human resources | Leave a comment

Evidence that financial analysis is biased

In the last financial crisis episodes, bank analysts’ image has been put into question. Are they unbiased when suggesting which shares investors should buy, keep or sell? Or do they elaborate their recommendations based on pressures from other bank areas, such as treasury and underwriting, which take profits pushing some papers to clients?

A recent study, published at Journal of Accounting, Auditing & Finance, give evidence that, yes, it is highly probable that investment analysts do not think only in the well-being of their clients when evaluating shares from companies listed on the stock exchange. If there is no regulation to restrain interaction between research department and other parts of the bank, analysts will make more buying recommendations than they should.

Continue reading

Posted in Finance | 1 Comment

CEOs stay together to fool the press

CEOs defend each other to avoid negative reports in the press about them. A study published at Administrative Science Quarterly investigated what 367 CEOs from the largest American companies declare to journalists just after the release of negative financial numbers of other firms from the same industry. The researches reached the conclusion that CEOs usually take out the blame from their pairs, even if they are competitors, and attribute the guilt regarding the bad performance to external factors related to the industry or the economy.

The authors of the research, James D. Westphal, Sun Hyun Park, Michael L. McDonald, and Mathew L. A. Hayward, from different American universities, observed that CEOs adopt an implicit practice of reciprocity. One CEO that received support in the past from other CEO feels indebted and decides to defend him to journalists, even if he believes that his fellow is responsible for the bad earnings.

Continue reading

Posted in Communications | 2 Comments