The use of reference points — for example, a monthly sales quota of 20 sales — is at the heart of reference-dependent behavioural economic theories, the most influential being “prospect theory.” According to prospect theory, an outcome is evaluated based on a reference point. Failure to achieve the reference point (19 sales instead of 20) […]
Subject: Leadership
Back to Leadership Basics: Make Time for Your Team
It sounds so obvious. It is obvious. But far too few managers actually do it. We are talking about the most basic of leadership tasks – spending as much time as possible working closely with their direct reports and other employees for whom they are responsible. By so doing, they will have a far greater […]
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How to Lead Virtual Teams
Virtual teams, made necessary by globalization and possible by technology, are now common in business. They’ve taken over traditional functions such as procurement, manufacturing, IT and finance, as well as newer activities such as global supply chain and global service delivery. They’re often assembled for new-product development and R&D. And they’re increasingly found at the […]
An Holistic Approach to Leadership Development
Traditionally, research on leadership development has put behavioural competencies under the spotlight; training, coaching, on-the-job experiences and mentoring are all intended to facilitate the development of these behaviours. But are these models too simplistic and incomplete for today’s complex business environment? In a White Paper published by the Center for Creative Leadership, Marian N. Ruderman, […]
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How Transformational Leaders Use Self-deprecating Humour
While a sense of humour can be an effective leadership tool, it depends on how that humour is used. Humour that targets or belittles followers undermines the leader’s influence. On other hand, humour that is self-deprecating can increase the connection between a leader and his or her followers. Self-deprecating humour is especially potent for transformational […]
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Profits Vs Principles: Market Competition and Moral Transgression
Why do unethical practices become ‘normalized’ in some organizations? Why do errant employees sometimes go unpunished for long periods of time? These are questions that many people will have asked in the wake of the phone hacking scandal at News of the World and the recent interest-rate-rigging scandals at major banks. One explanation is that […]
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How a Culture of Integrity Boosts the Bottom Line
The true measure of integrity in a firm is not comforting slogans on the home page of the company website, but how employees feel about whether top management, through its actions and behaviours, is living up to the promise. A culture of integrity exists when employees perceive top managers as trustworthy and ethical. "The higher […]
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Can a Leader Be Too Ethical?
High levels of ethical leadership can have unintended consequences, demotivating employees and making pro-social and co-operative behaviours less likely, according to recent research in Europe and the US. The research, based on three field studies and an experiment, finds a negative, linear relationship between ethical leadership and employee deviance: the more ethical the leader, the […]
Do Ivy League or Elite Educated CEOs Outperform Others?
The term ‘human capital’ encompasses the knowledge, skills and talents inherent in individuals. These skills represent an important source of productivity in an organization, and can be enhanced through training and education. But could an individual’s selection from a top educational institution constitute or signal that they will amount to a ‘better’ human capital resource […]
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Securing Talent with a Superior Employee Value Proposition
Traditionally, financial capital has been viewed as the primary promoter of growth and profitability for an organization. Though undoubtedly still important, executives have begun to realise there is something else that is even more crucial: human capital. How companies attract, develop and retain talent is fast replacing financial concerns, especially in light of the fact […]
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