Streamline Training & Documentation: Values Among Top Management: Perceptions vs. Reality

Tuesday, April 24, 2007

Values Among Top Management: Perceptions vs. Reality

A team of five researchers — Andrew J. Ward, Melenie J. Lankau, and Allen C. Amason of the University of Georgia's business school; Jeffrey A. Sonnenfeld of Yale's business school; and Bradley R. Agle of the University of Pittsburgh's business school — report in the Spring 2007 issue of the MIT Sloan Management Review that conflicts among top management tend to be driven by perception rather than reality.

Since we are hearing all the time that perception is what matters most in determining people's behavior, including many of the decisions they make, it is heartening to have evidence-based recommendations concerning how to mold perceptions constructively. Specifically, in the case of perception-driven conflict among a company's top management, the authors suggest the team make a point of:

Establishing a good atmosphere for their work together. I.e., keep misperceptions to a minimum by, for example, ensuring "frequent interactions that help to increase people's familiarity with each other so they become more relaxed about voicing dissenting points of view."

Understanding and managing perceptions. Start by conducting an audit of organizational values to "determine areas in which actual differences exist and help clarify conflicts that have emerged over incorrect perceptions." Then manage perceptions so that everyone is able to act in accordance with a clear understanding of the company's key values.

Investigating the gaps between perceptions of the CEO's values and reality. The authors cite Enron as an egregious example of a company where perception and reality were starkly discordant.

Taking action to correct serious misperceptions. This is essential in order to protect the company from a marked deterioration in its ethical tone and public credibility.

The authors' overarching advice is for top management teams to recognize the benefits of hashing out disagreements over how to address issues and solve problems (task conflict), while also recognizing, and therefore minimizing, the damage that arises from disagreements over individual, personalized matters (relationship conflicts).

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Labels: Collaboration, Conflict management, Organizational culture

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