Monthly Archives: March 2024

Gossip in the workplace can advantage both employees and employers

Recent findings from Binghamton University, State University of New York, have illuminated the potentially beneficial aspects of workplace gossip in diminishing employee turnover rates, thereby enhancing organizational efficiency.

Jinhee Moon, a doctoral candidate at the Binghamton University School of Management, undertook this study alongside a team of researchers. The study sheds light on the significance of positive gossip within the organizational context. Moon emphasizes the importance of organizations recognizing the role of constructive gossip in reducing turnover, a crucial determinant of organizational success. She advocates for organizations to foster a positive environment by treating employees well, demonstrating care, and encouraging participation in beneficial gossip.

The novelty of Moon’s research lies in its focus on the social advantages employees gain through gossiping, an extension of her prior research interests in workplace dynamics, particularly leadership, interpersonal relationships, and social networks within the School of Management (SOM). This recent investigation involved a survey of 338 health workers in South Korea, exploring their engagement in both positive and negative gossip about their organizations and management. The survey covered a variety of statements reflecting employees’ interactions and discussions about their workplace in the absence of management, including expressions of dissatisfaction and commendation of their organization’s capabilities.

Moon’s research highlights a noteworthy perspective that positive gossip, primarily when it paints the management or organization in a good light, is deemed more valuable. This kind of gossip engaged health workers more deeply, as they showed greater interest in information that could elevate or solidify their status within the organization.

Contrary to expectations, the study found no link between negative gossip and the exertion of coercive power, challenging the assumption that negative gossip serves as a means for individuals to assert dominance or control. Moon pointed out that negative gossip might not be as influential or valued as anticipated, often being perceived merely as a form of complaint without any beneficial outcomes for the gossiper.

One of the most significant implications of Moon’s findings is the potential of positive gossip to mitigate voluntary employee turnover. Employees can combat negative sentiments and foster a sense of empowerment by engaging in positive conversations about their workplace. According to Moon, this strategy not only provides an effective means of coping with workplace challenges but also contributes to a more positive and enduring relationship with the organization.

In essence, Moon’s study offers a fresh perspective on the dynamics of workplace gossip. It suggests that when directed positively, it can play a crucial role in strengthening organizational bonds, enhancing employee satisfaction, and ultimately contributing to the success and stability of the organization.

More information: Andrea Kim et al, How Does Workplace Gossip Benefit Gossip Actors? The Impact of Workplace Gossip on Power and Voluntary Turnover, Group & Organization Management. DOI: 10.1177/10596011231203758

Journal information: Group & Organization Management Provided by Binghamton University

The interpretation of employees regarding the motives behind their bosses’ abusive behaviour impacts outcomes, according to a study

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A study conducted by the UBC Sauder School of Business reveals that employees’ perceptions of their bosses’ intentions behind abusive behaviour can lead to varying emotional responses, such as anger or guilt, influencing their reactions to such supervision differently.

Steve Jobs, the former CEO of Apple, was renowned for his stringent leadership style. He often pushed his employees to their limits to meet the company’s ambitious objectives. Despite the prevalent belief among many aspiring leaders in the effectiveness of the “tough love” approach, recent research from UBC Sauder suggests that, although abusive leadership might be aimed at elevating employees’ performance, it can result in significant negative consequences over time.

Abusive supervision, characterized by actions like yelling at employees, ignoring them, or belittling them in front of colleagues, has been consistently associated with psychological distress, higher employee turnover, and reduced performance. However, the study “The Whiplash Effect: The (Moderating) Role of Attributed Motives in Emotional and Behavioral Reactions to Abusive Supervision,” explored whether the motivation behind a supervisor’s abusive behaviour could lead to different employee responses.

The research comprised three separate studies conducted across three continents. In the first study, involving 1,000 soldiers and officers in the Chinese military, participants reported on their supervisory experiences, emotions, and subsequent reactions. The second study was a lab experiment with 156 participants at a major American university, simulating different supervisory styles within a consulting firm while hinting at the supervisors’ motives. Participants could engage in deviant acts against their supervisor or display positive organizational citizenship behaviours (OCBs), such as helping colleagues or participating in workplace charity initiatives. The third study saw 325 employees and supervisors at a Swedish luxury car manufacturer complete daily surveys over three weeks, documenting experiences of abusive supervision, emotions felt, and observations of OCBs and deviant behaviours.

Findings across all studies indicated that employees tend to feel anger when they perceive their supervisors’ abuse as intended to harm them. Conversely, when they believe the abuse aims to improve performance, they are more likely to experience guilt. This differentiation in emotional response significantly influences their behaviour, leading to either an increase in negative actions or a propensity towards positive, pro-social behaviours in the workplace.

Lingtao Yu, Assistant Professor at UBC Sauder and one of the study’s authors, draws parallels between these findings and the dynamic depicted in the film “Whiplash,” which portrays an abusive teacher-student relationship driven by the desire to achieve greatness. The study suggests that while employees may react negatively to perceived malintent by engaging in destructive behaviours, those who see their supervisor’s actions as motivational attempts to bridge performance gaps are likely to take responsibility and act in ways that aim to mend the supervisor-employee relationship.

Despite occasional short-term gains from such supervision, the study underscores the long-term ineffectiveness and potential costs associated with abusive leadership, including legal expenses, healthcare costs, and lost productivity. Professor Yu emphasizes the importance of mindful leadership and the availability of alternative, more constructive methods to enhance employee performance, advising against adopting abusive leadership practices.

More information: Yu, L. et al, The whiplash effect: The (moderating) role of attributed motives in emotional and behavioral reactions to abusive supervision, Journal of Applied Psychology. DOI: 10.1037/apl0000810

Journal information: Journal of Applied Psychology Provided by The University of British Columbia

Is Your Boss an Asshole?

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Many are intrigued by the question of what precisely constitutes an unpleasant individual. Almost everyone can identify at least one person who is particularly challenging to deal with, causing frustration and discomfort simply by being around them. In essence, these individuals embody the very definition of being disagreeable.

Recent findings from the University of Georgia shed light on this phenomenon, particularly highlighting that many individuals perceived as highly disagreeable are middle-aged men. The research, published in the journal Collabra: Psychology, involved nearly 400 participants who were asked to reflect on the person they considered the most disagreeable in their lives and identify the traits that led to this perception. The study revealed that qualities such as manipulation, aggression, and a sense of entitlement were commonly associated with these individuals.

Interestingly, the study found that the negative traits identified in these disagreeable individuals are similar to those found in profiles of people with psychopathic, antisocial, and narcissistic personality disorders, as outlined by experts. However, the researchers clarify that these similarities do not necessarily imply that every disagreeable person has a personality disorder.

Brinkley Sharpe, the study’s lead author and a doctoral student, highlighted that participants had little difficulty identifying the most disagreeable person. Many were former romantic partners, previous employers, or estranged family members. The study also noted that participants typically did not feel a strong bond with these disagreeable individuals, which aligns with the general perception of their behaviour as particularly off-putting.

Interestingly, some participants still had these disagreeable individuals actively present in their lives, including within their circle of colleagues, friends, and even current romantic partners. These individuals were often described as not only disagreeable and prone to anger but also as lacking consideration for the feelings of others and exhibiting behaviours that suggested an inability or unwillingness to regulate their anger, act responsibly, or hold inclusive views.

The research further explored the awareness and attitudes of these disagreeable individuals toward their behaviour. Findings indicated that while they might be aware of the negative impact of their actions on others, they often lacked the inclination to change. This aspect of their personality was reflected in behaviours that, while not always directly antagonistic, demonstrated a disregard for the perceptions and feelings of others.

The study’s responses varied widely, from minor grievances to more severe accusations of criminal behaviour. Some participants expressed frustrations over seemingly trivial matters, while others reported significantly more harmful actions. This variation underscores the complexity of human behaviour and the subjective nature of what makes someone particularly disagreeable.

Moreover, the study highlighted contemporary issues such as disregard for public health measures or political affiliations contributing to perceptions of disagreeability. That points to social norms’ evolving nature and broader societal developments’ impact on personal relationships.

Researchers, including Courtland Hyatt, Donald Lynam, and Joshua Miller, collaborated to highlight the multifaceted nature of disagreeability. They suggested that derogatory terms carry specific connotations and reflect underlying behavioural patterns. This research underscores the importance of understanding the characteristics associated with disagreeability and provides insight into the dynamics of personal and social relationships impacted by such behaviours.

More information: Brinkley M. Sharpe et al, “They Are Such an Asshole”: Describing the Targets of a Common Insult Among English-Speakers in the United States, Collabra Psychology. DOI: 10.1525/collabra.32552

Journal information: Collabra Psychology Provided by University of Georgia

Study reveals that co-working spaces may restrict creativity over time

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A recent study has discovered that co-working spaces may restrict the creativity and innovation of new businesses. These communal working environments, which surged in popularity following the pandemic, initially seemed to encourage collaboration. However, over time, they limit the development of collaborative practices.

The research conducted by Bayes Business School focused on the emergence of collaborative practices within co-working environments, using Level 39 as a case study. Located in Canary Wharf’s financial district and among Europe’s largest co-working spaces, Level 39 predominantly serves the tech and fintech industries.

The study’s findings indicate that the casual atmosphere of such spaces initially fosters exploration among startups. Yet, it prevents the evolution of deeper collaborations. Although these environments facilitate networking and social interactions through shared kitchens, lounges, and breakout areas, the benefits of collaboration were minimal. Companies reported that interactions became increasingly superficial and forced over time. Moreover, as the space prioritized occupancy and scalability to accommodate its growth, it negatively affected the spatial layout and the ability to foster customized relationships with startups.

Professor Stefan Haefliger, the study’s lead author from Bayes Business School, researched alongside former Bayes PhD student Ghassan Yacoub. They emphasize the findings’ implications for those managing and hosting co-working spaces. The study suggests a catalyst is necessary—individuals who promote and support activities that enhance interaction and foster cooperation—to facilitate meaningful cross-working.

Professor Haefliger stressed the transformative impact of co-working spaces on our conventional understanding of organizational boundaries. He underscored the role of space hosts and users in creating an environment conducive to flourishing partnerships and innovative ideas. For startups, leveraging initial interactions is crucial for collaborative success, and managers are essential catalysts in fostering these partnerships.

In the post-pandemic landscape, the uncertainty of space usage and the formation of collaborative teams suggest that workspace managers need to allow for experimentation and flexibility.

The research also reflects Dubai’s unique position in the evolving work environment. As a global collaboration hub, Dubai presents an opportunity to lead by example in adapting workspaces to modern collaborative needs, potentially inspiring other locations to embrace change.

This study highlights the dynamic between co-working spaces and the innovative processes of new businesses, suggesting a need for adaptability and strategic support to effectively nurture creativity and collaboration.

More information: Stefan Haefliger et al, Coworking spaces and collaborative practices, Organization. DOI: 10.1177/13505084221074037

Journal information: Organization Provided by City, University of London

Research shows employees have misconceptions about wage markets

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A study involving MIT scholars has uncovered that a significant number of employees underestimate the wages offered by other companies, often believing their peers in similar roles elsewhere earn less. As the research suggests, this misconception leads to financial disadvantages for workers. Simon Jäger, an MIT economist and one of the study’s co-authors, highlights how employees base their expectations for alternative employment opportunities on their current salaries, which distorts their perception of the market.

The research presents a startling gap between reality and expectation: workers who could gain a 10% salary increase by moving firms anticipate only a 1% rise. This discrepancy results in them accepting lower earnings than they could achieve. The study also reveals that individuals working in lower-wage positions are particularly prone to underestimating pay scales at other organisations. Interestingly, when provided with accurate information about industry-wide salary structures, these workers are more inclined to consider leaving their current jobs, indicating a significant impact of information on employment decisions.

This misalignment between worker perceptions and actual wage data calls into question the assumptions underlying economists’ models of job search behaviour, which typically presume that workers possess accurate knowledge of salary levels in their field. Using data from Germany, the findings suggest that these insights extend beyond national borders, offering a broader commentary on the global labour market dynamics.

Nina Roussille, another MIT economist involved in the study, elaborates on the implications of these findings. She explains that workers’ ignorance of better-paying opportunities keeps them in lower-wage roles, reducing the pressure on their employers to offer competitive salaries. This dynamic, in turn, perpetuates wage stagnation within specific segments of the job market.

The study, titled “Worker Beliefs about Outside Options,” and published in the Quarterly Journal of Economics, is a collaborative effort by Jäger, Christopher Roth from the University of Cologne, Roussille, and Benjamin Schoefer from the University of California, Berkeley. It bridges the gap between assumed knowledge and actual understanding among workers regarding wage information.

The researchers employed a multifaceted methodology, incorporating a survey into the German Socio-Economic Panel and linking responses with salary data from the German government’s Institute for Employment Research. This approach enabled them to measure the discrepancy between perceived and actual wages across industries. They found that most survey participants positioned their salaries within the middle percentile, underestimating their potential earnings elsewhere.

Further, an online experiment with over 2,000 participants revealed that correcting misconceptions about wages significantly influenced workers’ intentions to seek new job opportunities. Specifically, a ten-percentage-point correction in wage expectations resulted in a 2.6-percentage-point increase in the likelihood of an employee considering a job change.

The researchers argue that their findings have implications beyond the German market, suggesting that wage misperceptions could have even more significant consequences in countries with greater wage inequality, such as the United States. They also note that the COVID-19 pandemic, which saw many workers moving to higher-paying jobs, supports the theory that previous underestimations of wage potential had kept employees in lower-paying positions.

This research challenges long-standing economic theories that assume workers accurately understand wage landscapes, urging a reevaluation of these models in light of new empirical evidence. The academic community’s favourable response indicates a readiness to refine economic models to more closely mirror real-world conditions. Moving forward, the authors aim to explore employer perspectives on wage knowledge, examining whether firms are aware of and potentially exploit workers’ wage misperceptions.

More information: Simon Jäger et al, Worker Beliefs About Outside Options, The Quarterly Journal of Economics. DOI: 10.1093/qje/qjae001

Journal information: The Quarterly Journal of Economics Provided by Massachusetts Institute of Technology

Warm weather impacts productivity – even in factories with air conditioning

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According to research findings, warm weather diminishes workers’ efficiency, even in workplaces equipped with air conditioning. This study, orchestrated by the University of Exeter, meticulously monitored the relationship between outdoor temperatures and employees’ productivity levels within a technologically advanced manufacturing facility in China. Despite the factory being regulated by climate control systems, the research unveiled a consistent decline in productivity by 0.83% with each degree Celsius rise in the external temperature. The investigation highlighted that nocturnal warmth, potentially disrupting sleep patterns, contributed to this productivity downturn. However, it was observed that daytime temperatures significantly impacted work efficiency, regardless of more excellent conditions at night. The exact mechanisms behind this phenomenon remain uncertain, but the study provides a stark warning regarding the implications of escalating global temperatures on economic activities.

Dr Jingnan Chen of the University of Exeter emphasized the broad spectrum of climate change impacts, noting the importance of recognizing its effects on individual lives alongside large-scale environmental transformations. Prior studies have consistently shown that heat adversely affects the work output of individuals in outdoor environments or settings lacking air conditioning. This new evidence, illustrating the influence of heat on productivity in an environment with a controlled climate, sheds light on the potential economic ramifications of climate change.

Dr Miguel Fonseca further articulated that reliance on technological solutions such as climate-controlled environments might not be adequate for offsetting the impacts of heightened outdoor temperatures. The research employed an innovative approach by analyzing data related to the daily maximum ‘wet bulb’ temperature—a metric accounting for both humidity and heat—and correlating it with detailed work performance records across 35,190 shifts involving 635 male workers.

The factory in this study specializes in producing silicon wafers, which are crucial for manufacturing solar panels. Given the sensitive nature of these components, the production area is maintained at a constant temperature of 25°C and 60% relative humidity to preserve the quality of the wafers. Nonetheless, the observed 0.83% reduction in productivity per degree Celsius increase in temperature resulted in a significant decrease in the number of wafers produced per worker. Furthermore, the study discovered that when the ‘wet bulb’ temperature exceeded 28°C, productivity plummeted by 5.8% compared to standard conditions.

These findings underscore the urgent need for strategies beyond mere technological interventions to mitigate the adverse effects of climate change on workplace productivity and, by extension, the global economy.

More information: Jingnan Chen et al, How Much Will Climate Change Reduce Productivity in a High-Technology Supply Chain? Evidence from Silicon Wafer Manufacturing, Environmental and Resource Economics. DOI: 10.1007/s10640-023-00803-4

Journal information: Environmental and Resource Economics Provided by University of Exeter

Productivity declines and typographical errors increase among workers in the afternoon, particularly on Fridays

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A consensus among many office employees is their noticeable dip in productivity towards the later parts of the day and as the workweek progresses towards Friday. This subjective experience has now been substantiated through objective analysis by a research team from Texas A&M University.

In an innovative study conducted by the School of Public Health at Texas A&M, an interdisciplinary approach was utilised to gather data, revealing that workers exhibit a reduction in activity and an increase in errors by the afternoon hours, culminating in the least productive period being Friday afternoon. This investigation has been documented in a recent edition of PLOS ONE, with contributions from Drs. Taehyun Roh, Nishat Tasnim Hasan of the Epidemiology and Biostatistics Department, and Drs. Chukwuemeka Esomonu, Joseph Hendricks, Mark Benden from the Environmental and Occupational Health Department, and Anisha Aggarwal, a postgraduate student from the Health Behavior Department.

The study analysed the computer usage of 789 office employees within a prominent energy corporation in Texas from January 1, 2017, to December 31, 2018, seeking a more objective measure of productivity. Traditional methods such as self-reports, supervisory assessments, or wearable technology, which may skew subjective or intrusive, were set aside to analyse direct computer interaction metrics. These metrics included typing speed, error rates, and mouse movements, offering a clear, unobtrusive view of daily work patterns.

This detailed analysis revealed a progressive increase in computer-related activities from Monday to Thursday, with a noticeable drop on Fridays. Not only did the quantity of typing and mouse usage reduce on the final day of the traditional workweek, but the afternoons, predominantly Friday afternoons, saw diminished activity and increased typographical errors.

The implications of these findings extend beyond mere observations, suggesting that alternative working models such as hybrid or four-day weeks could enhance employee satisfaction and productivity. As of May 2023, a significant portion of the U.S. workforce was still engaged in traditional on-site roles, with the rest adopting remote or hybrid formats. These alternate schedules mitigate stress related to commuting and office politics and enhance work-life balance, allowing for increased time spent with family, engaging in physical activities, or pursuing hobbies, thereby improving overall well-being.

Moreover, flexible work arrangements can have broader benefits, including reduced operational costs and environmental impact through lowered electricity consumption and carbon emissions. These findings present a compelling case for business leaders to consider more adaptive work policies to foster a healthier, more productive, and environmentally sustainable workplace.

More information: Taehyun Roh et al, Examining workweek variations in computer usage patterns: An application of ergonomic monitoring software, PLoS ONE. DOI: 10.1371/journal.pone.0287976

Journal information: PLoS ONE Provided by Texas A&M University

AI has the potential to enhance services for vulnerable customers

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Artificial intelligence has evolved into a multifaceted tool within the business sector, pivotal for enhancing sales, streamlining operations, and engaging with clientele. However, recent investigations conducted by Texas McCombs have unveiled a novel application of AI in the corporate realm: its capability to contribute towards societal welfare.

This innovative utility of AI facilitates corporations’ more effective catering to the needs of vulnerable consumers, defined as individuals in the marketplace who encounter obstacles in accessing and managing resources.

Gizem Yalcin Williams, an assistant professor of marketing at Texas McCombs, has developed an AI framework for corporations alongside colleagues Erik Hermann from ESCP Business School in Berlin and Stefano Puntoni from the Wharton School at the University of Pennsylvania. This framework aims to pinpoint vulnerable consumers, tailor services to their unique requirements, and diminish the risks of discrimination and inequality.

Williams articulates that AI’s value extends beyond its operational and financial advantages, highlighting its potential to promote social welfare and encourage businesses to adopt socially responsible practices. By enhancing the accessibility, interactivity, and dynamism of customer service, AI equips vulnerable consumers with the necessary tools to comprehend information better, thereby enabling more informed decision-making. For instance, specific AI applications allow companies to analyze consumer voices and reactions, offering real-time feedback and advice to customer service representatives on improving their interactions.

The framework introduces several key concepts, including that vulnerability can fluctuate, influenced by cognitive, physical, or emotional factors, such as job loss, relationship breakdowns, or grief. “Vulnerability varies in duration and severity, but essentially, it can affect anyone,” Williams notes. That redefined perspective on vulnerability paves the way for AI technologies to impact society positively. Through advanced machine learning and natural language processing algorithms, AI is uniquely positioned to identify vulnerable consumers and assist staff in delivering more effective and empowering customer service.

The framework also highlights the importance of assessing risk, as customer service agents are frequently unaware of interacting with vulnerable consumers. AI can conduct real-time analysis of consumer communications, employing cues to generate a risk score for agents. Additionally, when AI identifies a vulnerable consumer, it can offer tailored advice to agents, suggesting specific actions to provide extra support.

Implementing and integrating AI into customer service systems demands investment, but it offers substantial benefits. Businesses can reap financial and reputational rewards by recognizing vulnerability and guiding consumers through challenging periods. Williams asserts, “Doing good often results in positive outcomes.” Businesses that utilize AI to support their vulnerable customers can anticipate beneficial effects, including increased loyalty, enhanced customer satisfaction, and higher profits.

More information: Erik Hermann et al, Deploying artificial intelligence in services to AID vulnerable consumers, Journal of the Academy of Marketing Science. DOI: 10.1007/s11747-023-00986-8

Journal information: Journal of the Academy of Marketing Science Provided by The University of Texas at Austin

Research indicates that business leaders ought to reconsider their approach towards treating team members

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Recent research conducted by an international collaborative team has revealed that business leaders managing teams must strike a balanced approach in their treatment of team members to avoid negatively impacting team performance. The study highlights the complexity of leadership dynamics, challenging the notion that there is a straightforward correlation between the differentiation in the treatment of team members and the team’s productivity. Bradley Kirkman, a co-author of the study and the General Hugh Shelton Distinguished Professor of Leadership at North Carolina State University, elaborates on this. Contrary to the established belief that varied treatment based on the perceived competence of team members can boost team productivity, this research proposes a nuanced understanding, suggesting that extreme variations in treatment can be detrimental.

The research team, comprising experts from NC State, the University of Science and Technology in Beijing, Peking University, and the University of Iowa, undertook a comprehensive study across three Chinese companies representing the pharmaceutical, telecommunications, and manufacturing sectors. They assessed the performance of 145 teams, examining the quality and efficiency of work, the ability to meet deadlines and budget adherence. The study relied on the “LMX7” scale to measure the quality of relationships between team leaders and members, focusing on the interaction dynamics rather than tangible incentives like salary.

Kirkman explains that the research uncovered a threshold to the degree of differentiation in treatment by leaders that, when exceeded, can lead to division within teams into favoured “ingroups” and marginalized “outgroups.” This division can decrease motivation and participation among outgroup members, potentially disrupting team harmony and performance. However, the study also warns against the pitfalls of undifferentiated treatment, advocating for a moderate level of differentiation that acknowledges individual competencies without fostering divisive favouritism.

The findings indicate that team size and the cultural concept of “power distance orientation” significantly influence a team’s tolerance for differential treatment. Due to their complex coordination and integration needs, larger teams benefit from a degree of differentiation that allocates more resources to capable members. Meanwhile, the cultural acceptance of hierarchical differences, as encapsulated in the power distance orientation, affects teams’ receptiveness to differential treatment. Teams from cultures with high power distance may be more accommodating of such therapy than those from low power distance cultures, which might outright reject it.

The study, “Understanding the Curvilinear Relationships between LMX Differentiation and Team Coordination and Performance,” published in Personnel Psychology, suggests that effective leadership requires a delicate balance. Leaders should aim for a moderate differentiation in treatment tailored to the competencies and abilities of team members while avoiding extreme preferential behaviours. This balance is crucial for fostering cohesive and high-performing teams across diverse cultural and organizational contexts. The research contributes to a deeper understanding of team dynamics and leadership strategies, offering valuable insights for leaders striving to navigate the complexities of modern team management.

More information: Yang Sui et al, Understanding The Curvilinear Relationships between LMX Differentiation and Team Coordination and Performance, Personnel Psychology. DOI: 10.1111/peps.12115

Journal information: Personnel Psychology Provided by North Carolina State University

A new study indicates that the timing of a business’s inception might be a significant factor in why numerous enterprises don’t succeed

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According to U.S. Bureau of Labor and Statistics data, only a quarter of new enterprises survive beyond 15 years. This striking statistic has shown remarkable consistency over three decades, persisting through fluctuating economic conditions within and across various markets. To unravel this enduring puzzle, recent research published in the Strategic Entrepreneurship Journal proposes that the key to a business’s sustained success might lie significantly in the conditions present at its inception rather than solely in the shifts occurring within its operational markets.

D. Carrington Motley, a lecturer specialising in entrepreneurship at Carnegie Mellon University and a contributing study author, emphasises the pivotal role of internal processes in a venture’s adaptation to environmental changes. He asserts that the initial conditions during a business’s establishment profoundly influence these processes, which swiftly become ingrained and reflected in the enterprise’s operational philosophies.

The research, undertaken by Motley along with Charles E. Eesley of Stanford and Wesley Koo of INSEAD Asia, scrutinised the trajectory of over 1,000 ventures founded between 1960 and 2011 across 19 different sectors, from agriculture to energy and utilities. Utilising data from the Bureau of Economic Analysis, the study assessed the level of dynamism within each industry over time and specifically during the year each venture was established. Furthermore, insights into the founding teams’ composition, longevity, and eventual outcomes were gleaned from alum survey data.

Eesley highlighted that ventures initiated in volatile environments by teams with diverse functional expertise demonstrated a notably higher resilience during market shifts. However, this did not necessarily correlate with a higher chance of achieving successful exits through IPOs or acquisitions.

Companies formed under such dynamic conditions tend to adopt more deliberative and decentralised decision-making processes, fostering creativity and flexibility. Founding teams composed of members with varied functional backgrounds enhance these attributes, leading to a broader strategic perspective and a more thorough information-gathering process. While these risk-averse approaches and strategies aid in navigating through periods of change, the research also found that such companies were less likely to secure IPOs or acquisitions when their respective markets reached a state of stability.

Woo commented on the advantages of aggressiveness in stable, predictable environments, pointing out that the risks associated with unverified assumptions are diminished. This makes the continued reliance on risk-averse methodologies less beneficial and potentially hinders a venture’s responsiveness to new opportunities.

The study identifies slower decision-making as a crucial distinguishing feature for businesses founded in volatile settings by diverse teams. This hypothesis was tested by evaluating their performance in sectors where rapid product development is essential for maintaining a competitive edge and by assessing the speed at which these ventures secured angel or venture capital investment. Businesses originating in dynamic conditions with diverse teams showed less favourable outcomes in both scenarios.

The research underscores that businesses typically benefit from market changes only when these alterations resonate with their original founding environment. Despite suggesting that founding processes tend to become deeply entrenched, the study offers valuable insights for entrepreneurs aiming to navigate through turbulence and seize opportunities in calmer times. It encourages businesses to critically examine their founding framework and internal mechanisms, urging a continual reassessment to ensure alignment with their market environment.

More information: D. Carrington Motley et al, Born into chaos: How founding conditions shape whether ventures survive or thrive when experiencing environmental change, Strategic Entrepreneurship Journal. DOI: 10.1002/sej.1461

Journal information: Strategic Entrepreneurship Journal Provided by Strategic Management Society

Studies indicate a connection between bullying in the workplace and the belief in conspiracies

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Research has demonstrated a correlation between experiencing bullying at work and a propensity towards conspiracy theory formulation.

Led by the University of Nottingham and collaboratively undertaken with Paris Nanterre University, this new study posits that the psychological aftermath of bullying might foster beliefs in conspiracies due to overlapping psychological elements, such as paranoia. The findings are now accessible in the journal Social Psychology.

Conspiracy theories are interpretations of significant occurrences that suggest the involvement of covert operations by influential and malevolent entities – ranging from scientists and medical professionals to workplace supervisors. This investigation expands upon prior studies which indicated that personal experiences could heighten one’s inclination towards conspiracy theories. It delves into the hypothesis that negative encounters in the workplace may contribute to the emergence of such beliefs.

Dr. Daniel Jolley, an Assistant Professor in Social Psychology at the University of Nottingham, spearheaded the study. He remarked, “The repercussions of being bullied can profoundly affect the victim in many aspects, with the emergence of conspiracy beliefs being yet another adverse outcome. It is our belief that individuals who have been bullied might find conspiracy theories compelling because such experiences thwart the very psychological needs, like empowerment, which lead to the formation of conspiracy beliefs.”

The research comprised two separate studies. The initial study involved 273 participants who reported their experiences with various forms of harmful acts, illustrating a direct link between workplace bullying and an increased belief in conspiracy theories. Additionally, it was found that individuals subjected to bullying at work also reported higher levels of paranoia, which correlates with a stronger belief in conspiracy theories.

The second study engaged 206 individuals, asking them to envision scenarios of being bullied or positively supported in the workplace. Participants who visualized a hostile work environment also tended to believe in conspiracy theories.

Dr. Jolley further commented, “The COVID-19 pandemic was a prime example of how quickly conspiracy theories can spread and escalate, especially those surrounding vaccinations. Our findings underscore the significance of understanding the formation of conspiracy beliefs, as they can mobilize individuals in ways that are counterproductive to societal harmony. Recognizing the factors that influence these beliefs is crucial. Our recommendation is to focus on creating support mechanisms for victims, aiming to prevent the emergence of a link between experiencing bullying and adopting conspiracy theories.”

More information: Daniel Jolley et al, Bullying and Conspiracy Theories, Social Psychology. DOI: 10.1027/1864-9335/a000492

Journal information: Social Psychology Provided by University of Nottingham

Ineffective management is the primary risk factor for bullying in the workplace

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Workplace bullying impacts one in 10 employees, leading to substantial financial losses for employers worldwide due to increased rates of absenteeism, stress-related leave, and decreased productivity.

In response to this pervasive issue, a team of Australian researchers has created a scientifically validated tool designed to identify the root causes of workplace bullying. This tool highlights nine critical risk factors inherent within everyday organisational practices, thereby proactively shifting companies’ responsibility to tackle the issue.

The groundbreaking findings were detailed in a recent Journal of Occupational Health Psychology publication. The research was led by Professor Michelle Tuckey of the University of South Australia, alongside her colleagues from the Centre for Workplace Excellence, the University of Queensland, and Auburn University in the USA. Their method involved a thorough analysis of 342 genuine bullying complaints submitted to SafeWork SA, with 60% of these complaints originating from female employees. The sectors with the most complaints included health and community services, property and business services, and retail. This investigation into the complaints highlighted specific organisational practices that increase the risk of workplace bullying.

Professor Tuckey pointed out that management style significantly influences the prevalence of bullying in the workplace. The way work performance is managed, working hours and entitlements are coordinated, and workplace relationships are formed are crucial areas needing attention.

The research suggests that bullying is not merely a problem of individual behaviour but indicative of deeper structural issues within organisations. To address this, the research team developed a screening tool, which has been successfully tested in a hospital environment. This tool can predict bullying risks at both individual and team levels, thereby highlighting potential threats to employees’ psychological well-being.

Current approaches to tackling workplace bullying, such as the implementation of anti-bullying policies, awareness training, and complaint investigation procedures, often miss the mark by focusing solely on interpersonal behaviours, neglecting the structural dynamics of the workplace.

The consequences of workplace bullying are severe, affecting not just the mental health of employees but also the overall functionality of organisations. Symptoms can range from mental distress and post-traumatic stress disorder to emotional burnout, reduced job satisfaction, high turnover rates, diminished productivity, sleep disturbances, and even an increased risk of suicide.

Professor Tuckey emphasises that for bullying to be effectively prevented, organisations must actively identify and mitigate underlying risks, similar to other systematic risk management efforts. Through such proactive measures, an organisation can prosper and create a healthy, supportive workplace environment.

More information: Michelle Tuckey et al, Workplace Bullying as an Organizational Problem:
Spotlight on People Management Practices, Journal of Occupational Health Psychology. DOI: 10.1037/ocp0000335

Journal information: Journal of Occupational Health Psychology Provided by University of South Australia