1. Managing Individual Differences Assessing Personalities

2. Alan Mulally CEO, Ford The Demanding Cheerleader Dan Akerson CEO, GM Management by Barking Sergio Marchionne CEO, Chrysler Management by Walking Around “gives hugs and means it… no blame thrower but no soft touch either… has swept aside a culture of politicking and back-covering among Ford executives” “A gruff former naval officer with a frosty demeanor…doesn’t do hugs.” Shook up bureaucracy at GM but analysts “worry about the effect of all that ordering- about on morale... [wrong] approach to take with unions/dealers” “constantly on the move, dressed casually in a dark sweater (he says he buys them in bulk)… frequently pops up at Chrysler’s and Fiat’s factories to fix things on the spot– for good or ill, a micromanager”

3. Paul Ekman http://www.cio.com/archiv e/120104/faces.htmlhttp://www.cio.com/archiv e/120104/faces.html The face is like a penis? Can one learn about true intentions by looking at discrepancies between spoken words and body language?

4. Why Does Personality Matter in the Contemporary Workplace? If this were 1965 [you] would have gone to work for a company, donned a blue suit, sat in your office and kept your head down; the particulars of your personality wouldn’t have mattered much. The culture of most companies out there today is such that you will not get a social script, blue suit, and organizational chart. You are expected to be part of a fluid team, flexible and innovative, to work with shifting groups in the absence of hierarchy. The workplace doubles as a rec room: The particulars of your personality matter a great deal. What is personality? –Motivations, skills, preferences, patterns of if..then responses (learned or hardwired?)

5. Key Challenges What is personality, and what is its relation to behavior? Is personality in the eye of the beholder? What of self-fulfilling prophecies? What’s an appropriate scientific measure of personality? Is it valid? Is it reliable? How does one distinguish the influence of personality on actions from that of culture on actions? Is personality destiny?

6. History in Brief Earliest work: Personality as inner essence. Freud/Jung: Influence of early experience on later personality; structure of personality; role of sub- conscious and collective conscious. Skinner: Focus on observable behaviors; operant conditioning.

7. Personality Today Walter Mischel (1960s): Key influence of situation on behaviors Current focus: -Behavior as function of disposition and situation -More recent work looking into the link between biology and personality (resurrection of social darwinism?) -The Big 5; Self- monitoring

8. Impressions Don’t Manage Themselves © Michael E. Wasserman, 2010 8

9. The Blank Slate? We all harbor theories of human nature: we use them to persuade, threaten, inform, love, deceive. We also use them to manage people in the workplace. The human mind has no inherent structure; it is malleable and can be shaped by socialization, culture, etc.? John Locke’s empiricism vs. modern genetics

10. 10 The Blank Slate? Personality Predicts Brain Response During Cognitive Tasks Kumari, Ffytche, Williams, and Gray (2004), The Journal of Neuroscience

11. The Opacity of Behavior? Why can’t we simply divine intent and motivation from observed action?

12. The War for Talent Hire those with the highest IQs/those from the “best” schools? -Correlation between IQ and job performance is around.1 -At school, most things are about “working by yourself. If you work with someone else, it’s called cheating….in the real world, everything you do involves working with people.” Assessing workplace ability: notoriously difficult: how do you assess performance when someone is moving too fast for a meaningful assessment? The story of Lou Pai at Enron: Is talent something separate from performance?

13. The Talent Myth The very best companies have leaders who obsess over talent. Recruit stars; reward disproportionately; push them into upper management track:”bet on the natural athletes” “The only thing that distinguishes Enron from competitors is our people, our talent. We hire very smart people and we pay them more than they think they are worth.” Ken Lay Differentiation and Affirmation: A (challenge and handsomely (>2/3) reward), B (encourage and affirm), or C (shape up or ship out). How should talent be assessed? Intelligence and intrinsic qualities or raw experience and past performance? What’s wrong with obsessing over talented employees? Is “talent” a fixed endowment, or can it be developed/wasted? Is the system is only as strong as its strongest stars vs. the system is the star: Enron vs. P&G

14. 14 Success: Social Capital or Human Capital? * Slide adapted from Borgatti & Mehra’s 2006 talk at the Sunbelt Conference Personality Network Structure Performance

15. 15 THE STRUCTURE OF SUCCESS…

17. 17 Niccolo Machiavelli

25. Benefits of PI? Guidance on what kinds of sales people and branch managers to hire (more high As and Bs instead of high Ds) Insight into self: “I realized how different I was from most of our people”; and “how similar the management team was to me”; Paul Lacy (lower A and higher D): a valuable asset Mark Ain: Venturer; Paul Lacy: Specialist; Decker: authoritative salesperson, etc.

26. The Big Five Personality Dimensions Intellectual, imaginative, curious, broad minded 1) Openness to experience Relaxed, secure, unworried 5 ) Neuroticism/Emotional stability Dependable, responsible, achievement oriented, persistent 2) Conscientiousness Trusting, good natured, cooperative, soft hearted 3) Agreeableness Outgoing, talkative, social, assertive 4) Extraversion Characteristics of a Person Scoring Positively on the Dimension Personality Dimension

27. Myers-Briggs Attitudes ExtraversionIntroversion Action Reflection Perceiving Functions SensingINtuition Objective evidence Abstract evidence Judging Functions Thinking Feeling Detached Empathetic Ambassador Functions Judging Perceiving Closure Open-ended - Preferred modes of action (not aptitude), like being left or right handed. Type (one or the other) not trait (matter of degree). -93 forced choice questions used to categorize into one of 16 possible types. (e.g., ENFP; ISTP; etc.)

28. Sample Questions from MBTI You are almost never late for your appointments YES NO You like to be engaged in an active and fast-paced job YES NO You enjoy having a wide circle of acquaintances YES NO You feel involved when watching TV soaps YES NO You are usually the first to react to a sudden event: the telephone ringing or unexpected question YES NO 89% of the Fortune 100 use the MBTI http://en.wikipedia.org/wiki/Myers-Briggs_Type_Indicator http://www.humanmetrics.com/cgi-win/JTypes2.asp

29. MBTI INFJ: “The counselor” I: 11%; N: 88%; F: 75%; J: 1% I= Introvert; N=Intuitive; F=Feeling; J=Judging -Contribute to others’ welfare -Like jobs requiring solitude -Also like interacting non-superficially with people -Exert influence behind the scenes - Attuned to values and seeking unique identity Examples: Sidney Poitier, Alec Guiness, Carl Jung 1.5% of the US population is INFJ http://www.humanmetrics.com/cgi-win/JTypes2.asp

30. Problems with Psychometric Tests Forced choice questions (but we’re often in the middle: continuous not binary) Assumes that who we are is consistent; but in fact it depends, it varies depending on other factors (e.g., preference for type of boss depends upon type of job) Personality: A consistent pattern of behavior– but this pattern may vary across situations Very low test-retest consistency (Jung: “every individual is an exception to the rule”; “…a parlor game”) Adaptive unconscious versus constructed self: which self are we tapping. Two steps removed: personality trait  behavior  test Test for global personality traits or local behaviors related to the specific role you are trying to select for?

31. Why do Firms Use these Tests? (Despite the fact that they are potentially invalid) Speed of processing Desperate need to anticipate, understand, and resolve interpersonal issues Self-fulfilling prophecies “Hawthorne” effects

32. Praendex and PI index Uncover behavioral styles to help managers understand their own and others’ behaviors PI index: approx. 80 words (e.g., shy, helpful): pick ones you see as desirable. A– Dominance (unassuming belligerent) [motivated by money vs. encouragement) B- Extraversion (shy/secretive friendly/sociable) [motivated by prestige and status vs. prefer to work alone/want to show competence) C- Patience (impatient/restless unresponsive/lazy) [need for security and routine] D- Formality/conform to rules (detail oriented rebellious/sloppy) [like to know what’s expected; structure and certainty; versus “do your own thing”] “The behavior of most individuals is remarkably consistent: a person tends to respond in the same way to particular stimuli” PI index not perfect predictor; must control for relevant factors, such as education, experience Tool for pre-employment screening; promote awareness of self and others;

33. Kronos and the P.I. Index: A Classic Story of a Growing Organization What problems arose as Kronos went from being a small startup to a (pre-public offering) company with $30 million in annual sales? (Today: 3400 employees; taken private in 2007) Describe Mark Ain’s personality: What kind of a manager was he (before Praendex)? What problems prompted Mark to bring Praendex into the picture? What are the theories underlying Praendex’s approach to personality assessment? Do you buy into their views? Why or why not? What kinds of benefits did Kronos gain from the use of personality testing? Would you recommend a product like Praendex to companies? Why or why not. http://www.kronos.com

34. Mark Ain and Problems before Praendex Mark Ain: –Founded company in ’77; by ’90, –B.S., MIT; MBA, Rochester (OB) - “I was always interested in what made organizations and people tick” - “I always knew that I wanted to do my own thing” - Early years: “did everything” - People thought: “I made decisions from the hip”; too involved in everything - “My philosophy was the best argument would win.’ - “I assumed this was a good way to operate because I was comfortable operating in this mode” -Hired Garret Lewis as COO in ’86; by ’90 let him go Question: “Could my management team handle higher level of responsibility? Should I look for another COO?”

35. Kronos after PI The PI gave us a framework to understand our own and others’ behaviors. It gave us a language to talk about things in a non-threatening way; it legitimated talk about these things; and it provided an analytical lens to make sense of these issues. Mark Ain started delegating more: realized he was different; delineated responsibility; stopped second-guessing everyone. Paul Lacy: from curmudgeon to valuable player (who thinks differently than others– implementation oriented guy) Created a set of common goals: Everyone is now paid based on the company’s (not department’s) performance plan Instituted a “communications committee” made up of a mix of people so Paul wouldn’t have to do the communicating. Went public on June 5, 1992 (offered at $56 million)

36. Human Analytics: Big Data Meets Human Resource Management

37. Human Analytics Being adopted by leading firms, such as Google, P&G, Intel… Early 20 th century: Apple catchers in Philadelphia won the job. “Nothing in the science of prediction and selection beats observing actual performance in an equivalent role.” Peter Capelli By end of WWII: severe shortage of talent… the rise of formal selection/hiring systems (IQ tests, math tests, vocabulary tests…)… the rise of the HR specialist/psychologist Today the process is adhoc: Legal regulations (1964 anti-discrimination act; constant job switching

38. Wasabi Waiter: New Recruitment Tool Games are fun, and powerful. Embrace the psychology of play to reliably predict job performance. Immerse your candidates in the world of a fast-paced sushi restaurant, and short-list quickly based on how well they play. The game reveals key personality traits and skills including: Efficiency – how well do they process, prioritise and respond to information? Social intelligence – do they respond appropriately to social cues? Conscientiousness – do they try hard to get things right? http://www.onetest.com.au/home/WasabiWaiter-LP

39. Concerns About The Rise of Human Analytics “Should the ideas of scientists be dismissed because of the way they play a game? Should job candidates be ranked by what their Web habits say about them? Should the “data signature” of natural leaders play a role in promotion? Concern: Will we cede one of the most subtle and human of skills, the evaluation of the gifts and promise of other people, to machines? What if the models get it wrong? Will some people will never get a shot in the new workforce.” Source: Don Peck writing in The Atlantic, Dec. 2013

40. But Aren’t We Already Biased? Attractiveness (large breasts but not too large?) Age Gender (Julie Landsman playing French horn for the Met: blind auditions in orchestras) Race: who is a more promising candidate? John or Jamal? Personality: “Survey of some 500 hiring managers, undertaken by the Corporate Executive Board, a research firm, 74 percent reported that their most recent hire had a personality “similar to mine.” Similarity attracts… The role of the unconscious mind…

41. The Art of Virtual Persusaion

42. Women and Glass Ceiling Are people less worried about appearing sexist than racist? Catalyst (2006): At nation’s largest 500 companies: –women are 50% of managers, but only hold 15.4% of senior exec. jobs, down from 16.4% in 2005 –women received 48% of law degrees, but account for only 17.9% of partners –in 2007, the median pay for women was.82 percent of that for men. Outperform: go beyond expectations Develop style with which men are comfortable (Marlyn Monroe or Iron Maiden) Seek out challenging assignments Find mentors

43. The Significance of Numbers for Social Life Simmel (1950) Kanter (1977): relative proportions; not a matter of innate biological differences, or even of culture; it’s a structural issue of relative proportions. Tokens: Treated as “representatives of a category, as symbols rather than as individuals.”

44. The Psychology of Tokenism Visibility (tokens capture disproportionate share of attention) Polarization (exaggeration of differences) Assimilation (Tokens attributes are distorted to fit preexisting generalizations)

45. Friendship Network at an Ivy League University in 1988

46. Friendship Network in The PhD Project in 2001

48. Homophily Over Time for Men and Women

49. Promoting Diversity in Corporations AVON: –Awareness training; –Formed Multicultural Participation Council, which includes CEO; –Developed diversity training program (teams sent to Morehouse college) Xerox: - recruitment and retention: “a corporate value and formal business objective”; -Xerox balanced Work Force Strategies: set goals for minority representation; - Encourage support networks

50. The Business Rationale for Diversity (also called the access and legitimacy perspective) It makes legal and economic sense: Nondiscrimination is the law: –Coca Cola (race discrimination) –Home Depot (gender discrimination) –Texaco (race discrimination) –US Govt. (in 2000, $508 million case; women who were refused employment with US Information Agency) –Walmart (gender discrimination: class action lawsuit on behalf of 1.6 million employees: statistical analysis showed Walmart paid less to women and gave them fewer promotions: 70% employees female: only 30% are managers) Little choice: Changing demographics (Blacks: 10%; Hispanics: 18%; Asian: 20%) Customers diverse, then employees should be diverse Enhanced group and organizational performance? Diversity= richer ideas and learning; employee attraction and retention

51. Eight Preconditions for Making Shift to Integration-and-Learning 1.Leadership must understand that diverse workforce will embody different perspectives and approaches to work, and must value variety of opinion and insight. 2.Leadership must recognize both learning opportunities and the challenges that the expression of different perspectives presents. 3.The organizational culture must create expectation of high standards of performance for everyone. 4.Organizational culture must stimulate personal development. 5.Organizational culture must encourage openness. 6.Organizational culture must make workers feel valued. 7.Organization must have a well articulated and widely understood mission. 8.Organization must have a relatively egalitarian, non bureaucratic structure

52. Are Concerns Over Diversity Irrelevant in the Contemporary Pluralistic World? Gender remains an issue at top: –France approved a new law in 2010 that would force companies to increase the number of women serving on boards of directors by 40% by 2016 –Norway forced companies to increase female board representation to 40%: businesses howled. –Potential cost: lost experienced people (but all male boards perform very well (LVMH, French luxury goods company, mostly female customers; but almost entirely male board) –Potential gain: social justice; more creative? less groupthink? –Where to find qualified women with experience in core business?

53. Marshall Goldsmith Do you think that Goldsmith is providing a useful service? Do you buy his “recipe”? Why or why not? http://www.marshallgoldsmith.com/Page.as px?PageID=2http://www.marshallgoldsmith.com/Page.as px?PageID=2 http://www.marshallgoldsmithlibrary.com/ci m/BusinessWeek.phphttp://www.marshallgoldsmithlibrary.com/ci m/BusinessWeek.php

54. Marshall Goldsmith Do you think that Goldsmith is providing a useful service? Do you buy his “recipe”? Why or why not? There are no selves, only behaviors Not behaviors, perceptions Self is an illusion “Easier to get un-f*ed up than to understand why you’re f*ed up, so just get un-f*ed up” Recipe: Apologize, reject excuses, declare dependence

55. What to do? Manufacture liking: –Promote familiarity –Redefine similarity –Foster bonding: the Sherif experiments/outward bound Leverage the likable: –Affective hubs: identify; protect Work on the jerks: Reassess contribution Socialize and coach Reposition (independent role)