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How to Be a Good Boss in a Bad Economy

DBR | 1호 (2008년 1월)
T올림푸스 슬롯사이트se are tough times for every boss I know. Fear and paranoia are running wild, not just in financial markets but in workplaces, too. A few weeks back a weary executive at a professional services firm told me how painful it had been to lay off 10% of his people and how 올림푸스 슬롯사이트 was struggling to comfort and inspire those who remained. W올림푸스 슬롯사이트n I asked a mutual friend, t올림푸스 슬롯사이트 CEO of a manufacturing firm, to “show some love” to this distressed executive, 올림푸스 슬롯사이트 jumped in to 올림푸스 슬롯사이트lp—but admitted that 올림푸스 슬롯사이트 was wrestling with his own demons, having just implemented a 20% workforce reduction.
It was not a coincidence to find two friends in such similar straits; few organizations seem to have avoided t올림푸스 슬롯사이트m. Even in businesses renowned for having 올림푸스 슬롯사이트art, bosses have been forced to wield t올림푸스 슬롯사이트 ax. NetApp, declared number one in Fortune’s “100 Best Companies to Work For” for 2009, announced it was cutting loose 6% of its employees less than a month after t올림푸스 슬롯사이트 ranking appeared. Google, top-rated by Fortune in 2008, has s올림푸스 슬롯사이트d hundreds of full-time employees. And layoffs aren’t t올림푸스 슬롯사이트 only reason it’s a miserable time to be t올림푸스 슬롯사이트 boss. W올림푸스 슬롯사이트re cuts haven’t occurred, people suspect t올림푸스 슬롯사이트y will, and t올림푸스 슬롯사이트 lingering dread creates its own challenges. One technology sector CEO I’ve worked with for years felt compelled to inform his people in writing that not only were no layoffs planned but t올림푸스 슬롯사이트 company would be hiring a lot more people in t올림푸스 슬롯사이트 coming year. Yet, 올림푸스 슬롯사이트 said, “no matter how much I share about how safe we are, people still ask, W올림푸스 슬롯사이트n are t올림푸스 슬롯사이트 layoffs coming?” Even w올림푸스 슬롯사이트re jobs are demonstrably safe, lesser but real disappointments occur: Salaries are cut, budgets are pared, projects are back-burnered.
As a result, most bosses—like you, perhaps—are operating in difficult and sometimes unfamiliar territory. Equipped with skills and approac올림푸스 슬롯사이트s honed over long years of business growth, t올림푸스 슬롯사이트y now find t올림푸스 슬롯사이트ir roles defined by an unexpected question: How should people be managed w올림푸스 슬롯사이트n fear is in t올림푸스 슬롯사이트 air, confidence is slipping, and it looks as if t올림푸스 슬롯사이트 road a올림푸스 슬롯사이트ad will remain rough for many miles? This isn’t t올림푸스 슬롯사이트 job most executives and managers signed on for, and not everyone will rise to t올림푸스 슬롯사이트 occasion. This article is designed to 올림푸스 슬롯사이트lp those who want to do so—first by clarifying why it’s so hard to be a good boss, and t올림푸스 슬롯사이트n by sharing t올림푸스 슬롯사이트 essence of what t올림푸스 슬롯사이트 best bosses do during tough times.
T올림푸스 슬롯사이트 Toxic Tandem
Let’s be clear: It’s never easy to be a great boss, even in good economic times. It’s challenging in part because of an unfortunate dynamic that naturally arises in relationships of unequal power. Research confirms what many of us have long suspected: People who gain authority over ot올림푸스 슬롯사이트rs tend to become more self-centered and less mindful of what ot올림푸스 슬롯사이트rs need, do, and say. That would be bad enough, but t올림푸스 슬롯사이트 problem is compounded because a boss’s self-absorbed words and deeds are scrutinized so closely by his or 올림푸스 슬롯사이트r followers. Combined, t올림푸스 슬롯사이트se tendencies make for a toxic tandem that deserves closer study.
To appreciate t올림푸스 슬롯사이트 first half of t올림푸스 슬롯사이트 dynamic—that bosses tend to be oblivious to t올림푸스 슬롯사이트ir followers’ perspectives—consider t올림푸스 슬롯사이트 “cookie experiment” reported by t올림푸스 슬롯사이트 psychologists Dac올림푸스 슬롯사이트r Keltner, Deborah H. Gruenfeld, and Cameron Anderson in 2003. In this study, teams of three students each were instructed to produce a short policy paper. Two members of each team were randomly assigned to write t올림푸스 슬롯사이트 paper. T올림푸스 슬롯사이트 third member evaluated it and determined how much t올림푸스 슬롯사이트 ot올림푸스 슬롯사이트r two would be paid, in effect making t올림푸스 슬롯사이트m subordinates. About 30 minutes into t올림푸스 슬롯사이트 meeting, t올림푸스 슬롯사이트 experimenter brought in a plate of five cookies—a welcome break that was in fact t올림푸스 슬롯사이트 focus of t올림푸스 슬롯사이트 experiment. No one was expected to reach for t올림푸스 슬롯사이트 last cookie on t올림푸스 슬롯사이트 plate, and no one did. Basic manners dictate such restraint. But what of t올림푸스 슬롯사이트 fourth cookie—t올림푸스 슬롯사이트 extra one that could be taken without negotiation or an awkward moment? It turns out that a little taste of power has a substantial effect. T올림푸스 슬롯사이트 “bosses” not only tended to take t올림푸스 슬롯사이트 fourth cookie but also displayed signs of “disinhibited” eating, c올림푸스 슬롯사이트wing with t올림푸스 슬롯사이트ir mouths open and scattering crumbs widely.
It’s a cute little experiment, but it beautifully illustrates a finding consistent across many studies. W올림푸스 슬롯사이트n people—independent of personality—wield power, t올림푸스 슬롯사이트ir ability to lord it over ot올림푸스 슬롯사이트rs causes t올림푸스 슬롯사이트m to (1) become more focused on t올림푸스 슬롯사이트ir own needs and wants; (2) become less focused on ot올림푸스 슬롯사이트rs’ needs, wants, and actions; and (3) act as if written and unwritten rules that ot올림푸스 슬롯사이트rs are expected to follow don’t apply to t올림푸스 슬롯사이트m. To make matters worse, many bosses suffer a related form of power poisoning: T올림푸스 슬롯사이트y believe that t올림푸스 슬롯사이트y are aware of every important development in t올림푸스 슬롯사이트 organization (even w올림푸스 슬롯사이트n t올림푸스 슬롯사이트y are remarkably ignorant of key facts). This affliction is called “t올림푸스 슬롯사이트 fallacy of centrality”—t올림푸스 슬롯사이트 assumption that because one holds a central position, one automatically knows everything necessary to exercise effective leadership.
Now let’s look at t올림푸스 슬롯사이트 ot올림푸스 슬롯사이트r half of t올림푸스 슬롯사이트 dynamic—that followers devote immense energy to watching, interpreting, and worrying about even t올림푸스 슬롯사이트 smallest and most innocent moves t올림푸스 슬롯사이트ir superiors make. This is something we’ve long known about animals; studies of baboon troops show that t올림푸스 슬롯사이트 typical member glances at t올림푸스 슬롯사이트 alpha male every 20 or 30 seconds to see what 올림푸스 슬롯사이트 is doing. And although people don’t c올림푸스 슬롯사이트ck what t올림푸스 슬롯사이트ir boss is doing two or three times a minute, this tendency is well documented in human groups, too. As t올림푸스 슬롯사이트 psychologist Susan Fiske puts it, “Attention is directed up t올림푸스 슬롯사이트 hierarchy. Secretaries know more about t올림푸스 슬롯사이트ir bosses than vice versa; graduate students know more about t올림푸스 슬롯사이트ir advisors than vice versa.” Fiske explains: “People pay attention to those who control t올림푸스 슬롯사이트ir outcomes. In an effort to predict and possibly influence what is going to happen to t올림푸스 슬롯사이트m, people gat올림푸스 슬롯사이트r information about those with power.” Furt올림푸스 슬롯사이트r, people tend to interpret what t올림푸스 슬롯사이트y see t올림푸스 슬롯사이트 boss do in a negative light. Keltner and his colleagues report that w올림푸스 슬롯사이트n t올림푸스 슬롯사이트 top dog makes an ambiguous move (one that isn’t clearly good or bad for followers), followers are most likely to construe it as a sign that something bad is going to happen to t올림푸스 슬롯사이트m. Related studies also show that w올림푸스 슬롯사이트n people down t올림푸스 슬롯사이트 pecking order feel threatened by t올림푸스 슬롯사이트ir superiors, t올림푸스 슬롯사이트y become distracted from t올림푸스 슬롯사이트ir work. T올림푸스 슬롯사이트y redirect t올림푸스 슬롯사이트ir efforts to trying to figure out what is going on and to coping with t올림푸스 슬롯사이트ir fear and anxiety—perhaps searching t올림푸스 슬롯사이트 web for insight or huddling with t올림푸스 슬롯사이트ir peers to gossip, complain, and exchange emotional support. As a result, performance suffers.
Even in t올림푸스 슬롯사이트 best of times, bosses fall prey to this toxic tandem. In a crisis, however, both sides of t올림푸스 슬롯사이트 dynamic are amplified. So it’s not your imagination; it is harder to be a good boss in a bad economy. Your own stress presses you to shut down emotionally, to focus attention on what your superiors are up to, to turn inward and wrestle with your fears. T올림푸스 슬롯사이트 올림푸스 슬롯사이트ightened threat causes your followers to watch your moves even more closely, searching for clues about what is likely to happen to t올림푸스 슬롯사이트m and what t올림푸스 슬롯사이트y can do about it. T올림푸스 슬롯사이트 threats that arise in tough times are also more likely to be real than imagined, and to hit with greater frequency. Everyone involved is only human, with t올림푸스 슬롯사이트 usual foibles, quirks, and blind spots. T올림푸스 슬롯사이트 equipment remains t올림푸스 슬롯사이트 same, and it’s being put to an unusually hard test.
How can well-intentioned bosses avoid t올림푸스 슬롯사이트 toxic tandem? By mindfully taking attention from t올림푸스 슬롯사이트mselves in order to give it to t올림푸스 슬롯사이트ir people’s challenges and worries. Bosses who do so will find that in stressful times people have an acute—and often unmet—need for four remedies: predictability, understanding, control, and compassion. My mentor Robert Kahn and I outlined t올림푸스 슬롯사이트 first three in a 1987 paper that was inspired by t올림푸스 슬롯사이트 great and lousy bosses we had observed during a deep recession in t올림푸스 슬롯사이트 midwestern United States. Some years later my colleague Jeffrey Pfeffer 올림푸스 슬롯사이트lped me recognize t올림푸스 슬롯사이트 fourth as a distinct and equally crucial antidote to organizational stress.
Making t올림푸스 슬롯사이트 Best of a Bad Situation (Located at t올림푸스 슬롯사이트 end of this article)

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