Issue link: https://www.e-digitaleditions.com/i/57338
"EVEN IF AN INEFFECTIVE LEADER EXHIBITS DEMOTIVATING BEHAVIOR, CONSENSUS AMONG THE WORK GROUP HELPS BUFFER THE LEADER'S NEGATIVE IMPACT. EMPLOYEES CAN BOND OVER IT AND LAUGH ABOUT IT." —Michael Cole, Texas Christian University, Fort Worth salaries, highlighting the value of their internal control expertise; but they also received even greater bonus reductions if mistakes were made. The same held true for CFOs who were also members of a com- pany's board of directors. "Anecdotal evidence suggests that in the wake of Sarbanes-Oxley, companies are looking for CFOs with more technical experience in accounting and auditing," says Rani Hoitash. "We found that companies are holding higher expectations for those CFOs and punishing them when material weakness disclosures increase." The complete study, "The Effects of Internal Control Quality, CFO Characteristics, and Board of Direc- tor Strength on CFO Annual Com- pensation," can be found on www. ssrn.com. Consistent Leadership, Content Employees A recent study finds that, under certain conditions, employees who share similar perceptions of their organiza- tion's leadership are happier overall, whether they see their leaders as effective, ineffective, or even terrible. The study was conducted by man- agement professors Michael Cole of the Neeley School of Business at Texas Christian University in Fort Worth and Arthur Bedeian of Loui- siana State University's Ourso Col- lege of Business in Baton Rouge. The researchers surveyed 828 U.S. Air Force personnel across 27 occupational groups, asking questions related to four styles of leadership: transformational (lead- ership via motivation, intellectual stimulation, and other rewards); contingent-reward reinforcement (leadership via rewards and punish- ments); management by exception (leadership based on punishment and negative feedback); and laissez- faire (a leadership void with little guidance or support). Cole and Bedeian found consen- sus among employees about trans- formational and laissez-faire leader- ship boosted work commitment and decreased the likelihood of burnout. Lack of consensus had the opposite effect. Consensus about contingent- reward reinforcement and manage- ment by exception, however, did not exhibit the same results and may warrant further study, says Cole. "Certain leadership behaviors influence teams as a whole, which in turn influence each team member's personal commitment to the organi- zation," says Cole. "Even if an inef- fective leader exhibits demotivating behavior, consensus among the work group helps buffer the leader's negative impact. Employees can bond over it and laugh about it." That kind of sup- port network keeps a bad situation from becoming even worse, he notes. The researchers advise leaders to avoid adding or removing team members on well-functioning teams, to avoid creating unnecessary disrup- tions and conflict. In addition, when there is a change in leadership, the departing supervisor should discuss the team's values and operating styles with the new leader early on. Cole and Bedeian hope that their study helps business leaders recog- nize the importance of developing consistent leadership patterns, so that all employees perceive them- selves as being on equal footing. "There is value to leaders, organi- zations, and employees in creating consensus among group members about leadership behaviors," says Cole. "It strengthens team stability and efficiency, and reduces conflict, stress, and anxiety." The study, "Leadership Consensus as a Cross-Level Contextual Modera- tor of the Emotional Exhaustion- Work Commitment Relationship," was published in the October 2007 issue of The Leadership Quarterly. Greater Health Literacy Reduces Hospital Visits Research from the UCLA Anderson School of Management indicates that a little health literacy can go a long way toward reducing visits to the emer- gency room. Medical professionals who offer basic health care training to new parents can clear out their waiting rooms—and save Medicaid millions of dollars annually. The study, "Ensuring Ariella Herman Positive Health Outcomes in Head Start Children and Families," was con- ducted by the Johnson & Johnson Health Care Institute at the Ander- son School. It tracked 9,240 Head Start families enrolled in a health literacy program that impacts nearly 20,000 children in 35 states. Researchers found that visits to a hospital ER or clinic dropped by 58 percent and 42 percent, respectively, when parents opted to treat their children's fevers, colds and earaches at home. Moreover, parents who were better informed and able to handle their children's health needs saw a 42 percent drop in missed workdays (from 6.7 to 3.8); their children missed 29 percent fewer school BizEd MARCH/APRIL 2008 57