Tag Archives: Angelo Kinicki

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Study: Humble CEOs Good for Business

Forget the stereotypes of arrogant, macho leaders who don’t care about anyone else’s opinion. A new study from the W. P. Carey School of Business at Arizona State University shows humble CEOs significantly benefit a company and its management — likely more than the blowhards who think it’s their way or the highway.

“Humble CEOs are more open to making joint decisions and empowering others,” says Professor Angelo Kinicki of the W. P. Carey School of Business, one of the study authors. “Their behavior positively affects both top and middle managers, who then exhibit higher commitment, work engagement, job satisfaction and job performance. We see a trickle-down effect that seems to influence the company overall.”

The new research published in Administrative Science Quarterly comes from Kinicki, Anne Tsui and David Waldman of the W. P. Carey School of Business, as well Amy Ou of the National University of Singapore, Zhixing Xiao of George Washington University, and Lynda Jiwen Song of the Renmin University of China.

They interviewed the CEOs of 63 private companies in China. They also created and administered surveys measuring humility and its effects to about 1,000 top- and middle-level managers who work with those CEOs. The researchers specifically chose China because they needed a context in which CEOs would display a wide variety of humility levels. However, they believe the findings will generalize to many companies in the United States.

“Our study suggests the ‘secret sauce’ of great, humble managers,” explains Kinicki. “They are more willing to seek feedback about themselves, more empathetic and appreciative of others’ strengths and weaknesses, and more focused on the greater good and others’ welfare than on themselves.”

Kinicki says leadership behavior normally cascades downward, so it’s likely humility at the top effects just about everyone at a company. He points out a few examples of humble CEOs making news:

* Tony Hsieh of Zappos is a Harvard graduate, who helped boost his company to more than $1 billion in gross merchandise sales annually. He also helped drive Zappos onto Fortune’s “100 Best Companies to Work For” list, with innovative customer- and employee-pleasing policies, such as “The Offer,” where new employees are offered one-month’s salary to leave the company if they’re not dedicated and happy.

* John Mackey of Whole Foods has shown concern for the greater good through his advocacy of organic food and spearheading his company’s move to become the first grocery-store chain to set standards for humane animal treatment. He also announced in 2006 that he was chopping his salary to $1, putting caps on executive pay, and setting up a $100,000 emergency fund for staff facing personal problems.

* Mary Barra of General Motors has faced severe criticism for problems created at the company before she took the helm in January. However, she has been quick to apologize and maintain that she’s moving from a “cost culture” to a “customer culture” at GM. She has promised to do “the right thing” for those affected by recent recalls and the problems that led to them.

Kinicki knows some people may be surprised by the study results, but he summarizes, “It’s time we understood that humility isn’t a sign of weakness or lacking confidence, but rather, a good thing that can benefit us all.”

The full study is available at http://asq.sagepub.com/content/59/1/34.full.pdf+html.

Baby Boomer Bust

Baby Boomers Bust

Companies get ready as boomers start leaving the work force

The catchy term many are using to describe the impending exodus of baby boomers from the work force sounds like the title of a science-fiction film: “The Brain Drain.

But there’s nothing fictional about it. The oldest baby boomers, a group that includes more than 78 million Americans born between 1946 and 1964, began qualifying for early Social Security benefits this year. Some may choose to work beyond the traditional retirement age and others could stay on for financial reasons, but the eventual departure of baby boomers will have a serious impact on corporate America.
This might be a particular concern in upper-management ranks, where positions are most likely manned by older, more experienced personnel and a talent pool of capable replacements is thin.

“The issue is simply that our population is getting older and the birth rates aren’t equal to the aging of the population,” says Angelo Kinicki, an Arizona State University management professor, author and consultant. “You’re going to have more people exiting than you will have entering (the work force).”

Despite this demographic shift, recent surveys from Ernst & Young and Monster Worldwide agree that few corporations are properly prepared for the challenges ahead.

“What’s going to happen here is as baby boomers retire, you’re going to have a lot of people who have knowledge that are leaving the work force,” Kinicki adds.

Kinicki says it’s vital to create systems for transferring knowledge from seasoned employees and senior executives down to lower levels through the organization.
“I’d say the more progressive companies are engaging in what we call knowledge-management programs,” Kinicki says.

But, according to a 2007 Monster study titled “Building and Securing an Organizational Brain Trust in an Age of Brain Drain,” few companies have taken such steps.

While trying to determine the level of awareness companies have of the coming brain drain and what they’re doing to prepare for it, Monster found that only 20 percent of firms had a formal strategy in place to manage and preserve organizational knowledge.

Monster concludes that “the absence of such planning leaves a valuable asset exposed to a competitive market. Firms must not only recognize the value of knowledge but actively manage and protect it.”

Kinicki says several companies in Arizona, such as Intel, APS and Honeywell, have taken a proactive approach.

One corporation that has been especially innovative is Avnet Inc., a Phoenix-based Fortune 500 company that is one of the world’s largest distributors of electronic components, computer products and technology services.

Lynn Monkelien, vice president of learning and development, says Avnet is very cognizant of the imminent retirement of baby boomers.

“(We) have started looking at all kinds of ways that we can start to manage this transition period,” she says.

Among those is a multiple-tiered program that uses top-level management to teach classes for those viewed as future leaders.

Consider the Global Organizational Leadership Development, or GOLD, program. It does more than just cover particular subjects. Managers are able to expose students to their own experiences, while studentsget a chance to build relationships with senior leaders, paving the way for future coaching and mentoring.

“I think the real benefit is going to come as we start to replace some of the oldguard with the new guard,” Monkelien says.

The company also places great importance on succession planning, according to Linda Biddle, Avnet’s vice president for talent development. Avnet’s goal is to create a steady flow of people at all levels of the organization ready to take on new roles.

“Avnet is always thinking ahead, trying to predict what things are going to impact our business from a technology standpoint, from a process standpoint and, also, from a people standpoint,” Biddle says. “What we’re trying to do is not be reactionary — we’re trying to be proactive.”

Arizona Business Magazine February 2008