Some credit can be given to Volkswagen for admitting that their emissions cheating scandal was the result of “a chain of errors that were allowed to happen” by a “climate of fear” created by management. However, the focus should be on that culture of intimidation, rather than the notion that the cheating was allowed to happen due to poor organizational management between R&D and implementation of new technologies. While that is certainly a contributing factor, the heart of the scandal is why employees didn’t come forward and blow the whistle sooner, and what cultural elements existed at VW to encourage immoral behavior. VW still has a lot to answer for, and business leaders should be taking notice of the possible results of a psychologically unsafe workplace. See more on the press conference at the New York Times.
Cleaning Up After Volkswagen
Volkswagen is expected to update the world on its internal investigation the emissions-regulations scandal this week. However, as this article puts it, VW has been “responding to each new revelation [of misconduct] with denial, feigned ignorance and weak apologies.” It seems almost impossible that a company as large as VW with such a glaring moral and practical issue can shrug it off so nonchalantly. Such behavior is very typical of a harmful corporate culture that is hoping against hope that the scandal will simply ‘go away.’ What VW should focus on, in addition to keeping its internal investigation as objective as possible, is a cultural shift towards openness, transparency and accountability. See the New York Times for more.
Response to "You're Fired! How to Get Rid of Workplace Bullying"
This is an informative overview on workplace bullying. The ending suggestion that more focus should be placed on collective bargaining as a solution to workplace bullying does not address the full scope of the issue, however. First of all, while I’ve found in my research that 74% of workplace bullying is done by a manager onto a subordinate, the idea that all bullying is perpetrated by bosses is not true in every case. Secondly, business leaders should be asking themselves why their employees want to organize, and work to eliminate problems in workplace culture based on the answer to that question. Read the full article at The Guardian.
The Secret to Sustaining High Job Performance?
The suggestions that employees invest in building their emotional self-awareness and core mental energy needs are interesting. However, what this New York Times article does not touch upon is the importance of workplace culture in maintaining a psychologically safe workplace. The Harvard Business Review research cited in the, that 60% of employees do not feel that their core needs are met at work, is staggering, but more emphasis should be placed on environmental factors rather than individual ones.
At Wells Fargo, How Far did Bank's Sales Culture Go?
The appalling actions allegedly taken by Wells Fargo employees, such opening fake accounts or predatory client targeting, were driven by a sales-focused corporate culture gone too far. Managerial emphasis on short-term goals created enough pressure for employees to resort to unethical strategies to avoid being reprimanded or fired. Situations like the one at VW, and now Wells Fargo, beg the question – why don’t more employees blow the whistle? The truth is that while employees may partake in immoral practices, the corporate culture that encourages them is rooted in the management style of the company’s leaders. Check out this Wall Street Journal article, and my blog post from May when these allegations first arose, for more information.
After the Mizzou Protests, Students Ask Themselves: Now What?
I also want to ask – “Now what?” – in regards to the Missouri student protests. The grievances of the students are valid, and as a former student activist and undergraduate student body president, I’m sympathetic. However, I worry about how these protest tactics would translate when enacted in a work environment. Prejudice exists in the workplace, but the protest tactics used by these students would get them fired, rather than instituting a positive change in thinking. We should be focusing on teaching college students about influencing change through compromise, and equipping them to better create psychologically safe spaces in the business environments they’ll be entering. If college is supposed to prepare students to enter the workforce, then this is one area where universities are leaving them woefully underprepared. Read more on the Missouri Protests' impact on students at NPR.
Leading Through Praise, Not Fear
“This is something I really believe: People don’t take the opportunity to say nice things about their colleagues to others, or to the people themselves.” This is a very true commentary on the way workplace environments are not structured to support employees, coming from a leader who clearly knows that positivity is a better motivator than indifference. Read more about Carmelyn P. Malalis at the New York Times.
The 80 Hour Workweek Doesn't Truly Work
In psychologically safe workplaces, there should be no ambiguity and subjectivity in how employees are measured: the quality of work should trump the hours put in. Valuing time above quality is a precarious management trend, as research shows that employees who work 55 hours or more per week are at a higher risk of stroke than those who work shorter hours. Read more on this here.
Is Valeant Pharmaceuticals the Next Enron?
Companies where employees may be forced into engaging or witnessing illegal, unethical activities often have toxic environments for workplace well being. If the criticisms being leveled against Valeant are true, it would be unsurprising to discover a poisonous corporate culture at play. For more on the unhealthy work environment at Enron, check out the documentary “Enron: The Smartest Guys in the Room.” Read more on Valeant here.
Cooking the Books in Bunches
When corporate wrongdoing is considered the norm, companies are better able to rationalize bad behavior and culture. When a corporation is revealed to be up to no good, like the recent Volkswagen scandal for example, the rest of the industry takes notice. For this reason, whistle blowers need to be supported by corporate culture, so that industry-wide practices can be above board both ethically and legally. Read more at the New York Times.