Applied Mathematics 1413 Lecture Notes - Jack Welch

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Published on 23 Sep 2012
School
Western University
Department
Applied Mathematics
Course
Applied Mathematics 1413
Professor
Page:
of 3
MOS 1021
Evidence-based HRM
HRM links to social science
Disciplines like Psychology and Economics, have provided much of the evidence-base on which the
practice of HRM rests
Also, the analytical and conceptual “habits of mind” acquired in studying these disciplines are very
portable
Essence of evidence-based management
DECISION
Source: Briner, Denyer & Rousseau (2009)
Interference with learning Beliefs derived from prior experience
We may be motivated to believe particular things, for a variety of reasons (ego defense, preferred
conclusions, etc). When we hear something inconsistent with our beliefs, we may be inclined to reject it.
We never really know how representative our experiences our, therefore we should probably treat our
beliefs about people at work as hypotheses, and constantly update them in light of new evidence.
Private theories
Our sense of how the world works Commonsensical Transparent May be falsified, but we don’t tend
to do so. Example:
From a planetary motion perspective, why are there seasons?
Rynes test
What is the gap between management beliefs/ practice and the best of what we know about managing
people at work, from the social sciences?
30 questions: agree, disagree, it depends/ too close to call
We’ll look at a subset of these questions now.
Leadership
An extroverted personality is the key determinant of leadership effectiveness (3).
Leadership
An extroverted personality is the key determinant of leadership effectiveness (3).
Outgoing personality is an asset for leadership; but intelligence is even more important
Training contributes to effective leadership behaviours (Barling et al., 1996)
Integrity tests
Although there are “integrity tests” that try to predict whether someone will steal, be absent, or
otherwise take advantage of an employer, they don’t work well in practice because so many people lie on
them (6).
Sample items Clear purpose:
“Do you believe that most people would cheat if they thought they could get away with it?”
Veiled purpose: Do you think taking chances makes life more
interesting?”
APA guidelines; all tests do not work equally well
Integrity tests
Although there are “integrity tests” that try to predict whether someone will steal, be absent, or
otherwise take advantage of an employer, they don’t work well in practice because so many people lie on
them (6).
Validity of these tests is substantial (.41), even if people distort their responses.
Performance feedback
Most managers give employees lower performance appraisals than they objectively deserve (8).
Performance feedback
Most managers give employees lower performance appraisals than they objectively deserve (8).
Leniency is much more common than stringency; political reasons, sympathy
Training designed to eliminate rater errors often introduces new errors, reduced accuracy
More on performance feedback
For feedback to be successful, it should start with the positive and then move to the negative (13).
More on performance feedback
For feedback to be successful, it should start with the positive and then move to the negative (13).
Giving feedback is difficult; many managers are avoidant.
Problem of ego threat associated with verbal feedback.
Defensiveness interferes with planning for performance improvement
Dialogic approach, starting with inquiry into recipient’s performance
Motivation and incentives
People believe that others are more motivated by money than they are (16).
Motivation and incentives
People believe that others are more motivated by money than they are (16).
Heath (1999) and the extrinsic incentives bias, in multiple experimental studies
Heath
Study 1: An experiment, n= 74 MBA at Chicago
-.30
Self
Predictions about Ees
Actual results of Ees
Learning Skills Feel good Pay Worthwhile
Pay Security Benefits Praise Feelgood
.22
Skills Worthwhile Learning Benefits Security
Teams
Teams with members from vastly different functional areas are likely to reach better solutions to
complex problems than teams from one area (23).
Teams
Teams with members from vastly different functional areas are likely to reach better solutions to
complex problems than teams from one area (23).
Cross-functional teams bring information from their external networks to bear on problems
Working together may help reconcile background differences
Teams (cont’d)
Large teams are more effective than small teams (24).
Teams (cont’d)
Large teams are more effective than small teams (24).
6 is an optimal number; balances diversity of opinion against process costs
Harder to use social sanctions to hold people accountable in larger groups
HPWS
A cluster of aligned HR practices has greater impact on organizational productivity than any individual
practice (29).
HPWS
A cluster of aligned HR practices has greater impact on organizational productivity than any individual
practice (29).
High performance work systems include ee participation in decisions, HR practices that support and
enhance ee skills, and aligned incentives
Huselid (1995) study, links bundles of HR practices to org performance
Performance evaluation
The use of forced ranking in performance evaluation systems improves company productivity (30).
Performance evaluation
The use of forced ranking in performance evaluation systems improves company productivity (30).
Popularized by Jack Welch/ GE Problem of applying this technique to teams or
work units in which the sample size is too small
Can be useful in periods of rapid organizational change, but problems of demoralization, lack of
cooperation may arise
Takeaways
In social science, and under Evidence-Based Management, a major problem is “how do we know what
we know?”
Knowing what works, and under what circumstances, is a source of competitive advantage that you are
already building.

Document Summary

30 questions: agree, disagree, it depends/ too close to call. Interference with learning beliefs derived from prior experience. We may be motivated to believe particular things, for a variety of reasons (ego defense, preferred conclusions, etc). When we hear something inconsistent with our beliefs, we may be inclined to reject it. We never really know how representative our experiences our, therefore we should probably treat our beliefs about people at work as hypotheses, and constantly update them in light of new evidence. Private theories: our sense of how the world works commonsensical transparent may be falsified, but we don"t tend to do so, example: Rynes test: what is the gap between management beliefs/ practice and the best of what we know about managing people at work, from the social sciences, we"ll look at a subset of these questions now. Leadership: an extroverted personality is the key determinant of leadership effectiveness (3).