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The Bright Side and Dark Side of Personality: How does this affect job performance and how can we manage this? Richard Brady, C Psychol Chief Executive Officer Mentis, UK & Middle East www.mentis-consulting.com What’s Life About? Freud: Overcoming your neurosis. Jung: Overcoming your neurosis. Maslow: Overcoming your neurosis. Hogan's: Getting along and getting ahead. 2 Socioanalytic Theory Group Living Animals Needs Get Along Get Ahead Find Meaning Hogan & Hogan, 2001; Hogan, 2007 3 Socioanalytic Theory These needs are met through interactions at work Social contact (get along) Status and power (get ahead) Gain purpose for their lives (find meaning) 4 What is Personality? Two Perspectives Perspective 1: From the Inside Personality from the inside, or actor’s view, is defined in terms of a person’s identity. How a person sees him/herself Defined by hope, dreams and aspirations Difficult to measure Difficult to study Not always reflected in behaviors 5 What is Personality? Two Perspectives Perspective 2: From the Outside Personality from the outside, or observer’s view, is a person’s reputation. Defined in terms of traits (e.g., calm, ambitious, careful, etc.) Reflects how a person’s behavior has been evaluated after repeated interactions with others Used to predict a person’s performance Easy to study -- most of what we know about personality and job performance is based on observer’s perspectives 6 Why Personality Matters World-wide research of employment issues General Reasons People Fail Poor fit with job Poor fit with organisation General Reasons Managers Fail Inability to build and motivate a team Inability to develop or adapt Poor working relations Lack of vision or “big picture” No strategic execution 7 HPI HBRI HDS MVPI Hogan inventories concern dimensions that are crucial for getting along and getting ahead: Hogan Personality Inventory (HPI) concerns strengths that enhance an individual’s career characterises the person at his/her best Hogan Development Survey (HDS) concerns dysfunctional dispositions that can derail a person’s career these tendencies appear when people let down their guard—fatigue, illness, frustration Motives, Values, Preferences Inventory (MVPI) concerns personal drivers and fit with organisational culture Cost of a New Hire Year 1 Costs of a $50,000 Employee Salary Bonus at 30% Benefits at 40% Recruitment / Placement at 25% Selection Process at 10% Relocation at 15% Development / Training at 50% Total Cost of New Hire $ $ $ $ $ $ $ 50,000 15,000 20,000 12,500 5,000 7,500 25,000 $ 135,000 Year 1 Costs run between 1.8 and 2.5 Times Base Salary It is expensive to make a mistake 10 Personality & leadership Two Views of Leadership Leadership is either a function of circumstances (Enron) Or leadership is a function of personality (GE) We believe leadership is related to personality How to Define and Evaluate Leadership Leadership should be defined in terms of the ability to build and maintain a high performing team Leadership should be evaluated in terms of the performance of the team relative to the other teams with which it competes This is rarely done Implicit Leadership Themes People want to see four things in their leaders: Integrity: keep their word, don’t play favorites Decisiveness: make good decisions quickly Competence: be good at the business Vision: explain why it matters Good to Great Themes Characteristics of CEOs of Fortune 1000 companies with 15 years sustained superior performance: – Amazingly persistent – Humble Competency Models: I Every well-run organization has a competency model. Every competency model contains the same four themes: Intrapersonal skills: Interpersonal skills: Able to build and maintain relationships, compassion, empathy, humility Business skills: Integrity, emotional stability, self-control Analyzing data, allocating resources, forecasting budgets Leadership skills: Vision, empowering staff, being a good role model Competency Models: II Any competency model can be translated into an assessment model: Competency Theme Intrapersonal skills Interpersonal skills Business skills Leadership skills Assessment Dimension Adjustment, Prudence Interpersonal sensitivity Cognitive ability Ambition, Inquisitive Personality and Leadership Research shows overwhelmingly that personality (reputation) can be defined in terms of five broad dimensions: 1. 2. 3. 4. 5. Adjustment – core self-esteem Ambition – social potency Interpersonal Sensitivity – social charm Prudence – conscientiousness and rule-following Inquisitive – curiosity and vision Dimensions of Managerial Incompetence (HDS) MOVE AWAY FROM Excitable: Erratic emotional outbursts Cautious: Risk averse, won’t make decisions Skeptical: Mistrustful and vindictive Reserved: Poor communicator, insensitive to morale issues Leisurely: Passive-Aggressive meanness MOVE AGAINST Arrogant: Narcissistic feelings of entitlement Mischievous: Careless about commitments Colorful: Manages by crisis to be center of attention Imaginative: Bad ideas and decisions MOVE TOWARDS Diligent: Over-controlling micro-manager Dutiful: Too concerned about pleasing superiors Leadership and Business Unit Performance A recent and definitive meta-analysis (Harter, Schmidt, & Hayes, 2002) shows five important things: 1. The personalities of managers directly influence employee satisfaction. 2. When employee satisfaction is high, positive business outcomes result. 3. When employee satisfaction is low, negative business outcomes result. 4. The link between leadership and unit performance is mediated by staff morale. 5. People don’t quit organizations, they quit their boss. Executive profiling & job performance Correlations Mentis recommendation rating & Expert panel rating n 50 r 0.46 † Mentis competency rating and Expert panel rating Customer Focus Delivering Results Change & Innovation Self Management & Personal Development Planning & Organising Problem Solving & Decision Making Business Awareness Working with Others Communicating & Influencing Leadership, Mgt & Coaching Composite competency rating 20 41 33 13 24 24 14 17 46 46 48 NA -0.28 -0.31 NA NA NA NA NA -0.14 -0.16 -0.33 † scales are in opposite direction, hence negative correlation ** Significant at 1% level of confidence * Significant at 5% level of confidence NA Cases are too small to warrant analysis Note - correlations not corrected for restriction of range sig ** * * NS NS ** Personality & individual contributors HIRE BETTER EMPLOYEES Fortune 25 Telecommunications Company 8 weeks: Attrition rate decreased from 25.7% to 5.9% Stable or increased performance trends 14 weeks: Attrition rate decreased from 27% to 14% (nearly 50% lower), with savings over $750,000 Employees selected with assessment earned company $50,000 more per pay period than those 30not selected by assessments % Turnover Rate Results - 1 25 20 Hired without Assessments 15 Hired with Assessments 10 5 0 8 we e k s 14 we e k s Results - 2 HIRE BETTER EMPLOYEES Study Design 18,000 new hires Bottom-line Problems 1,012 new hires terminated (Voluntary and Involuntary) Excessive Absences 40% Job Abandonment 7% 506 assessed with the Hogan Personality Inventory Misconduct 46% 506 (matched sample) were not assessed Training Performance 12% Job Performance 71% Participants were tracked for 1 year Failure to Return from Leave 77% Termination data was collected Job Dissatisfaction 35% Those assessed demonstrated significant reductions in incidents across all bottom-line indicators Better Opportunity 29% Incident Reduction Results - 3 SAFETY CONCERNS Bottom-line Problems 4,388 participants 2,194 assessed with the Hogan Personality Inventory Incident Reduction Preventable Accidents 67% Unreported Accidents 50% Dishonesty / Theft 24% 2,194 (matched sample) were not assessed Fighting 100% Improper Conduct 58% Participants were tracked for 2 years Insubordination 80% Bottom-line problem data collected Excessive Absences 22% Frequent Tardiness 29% Those assessed demonstrated significant reductions in incidents across all bottom-line indicators Inefficiency 40% Refused Drug / Alcohol Test 83% Failed Drug Test 57% PIPELINE DEVELOPMENT Job-Level Candidate Entry-Level Lead Supervisor Manager Director Person A Ready with Difficulty Ready with Development Poor Fit Poor Fit Poor Fit Person B Ready with Difficulty Ready Now Poor Fit Poor Fit Ready with Difficulty Personality & Teams Thank you Questions please?