During the last few decades, research has proven the importance of trust in work environments and its effect on employee satisfaction and turnover rates. While studies have shown how trust impacts employees, little is known about what leads managers to build trust with subordinates.
New Research Finds Top Managers Can Save Firms Millions in Taxes
Each year, the majority of public companies in the United States pay 20 to 40 percent of pretax income to the government in the form of income taxes. Since every dollar paid to Uncle Sam is a dollar that cannot be reinvested within an organization, paying taxes could be considered an inefficient utilization of resources.
Whether it’s negative performance feedback or massive employee layoffs, bad news in an organization is almost a daily phenomenon. Despite its frequent occurrence in organizational processes, the delivery of bad news remains one of the most difficult tasks facing leaders. The challenge for most leaders with delivering bad news is often caused by an emotional reaction or undeveloped skill set. While existing literature discusses the impact of bad news on an organization, until now there has been little research on how managers can most effectively deliver bad news.
Professionals – such as doctors, lawyers, and financial advisors – face conflicts of interest (COIs) when they have a personal, and often financial, interest in giving biased advice. Requiring COI disclosure has become a popular way to try and protect consumers from biased advice, but previous research has shown that mandatory disclosures have little impact on advice recipients, and may even lead advisors to give more biased advice. However, virtually all of the prior studies questioned the effectiveness of COI disclosures that advisors were unable to avoid.
McDonough School of Business Assistant Professor Chris Long recently received the Best Applied Paper award at the International Association of Management and Business Conference. The paper is titled, “Investigating the Information Processing Capacities of Organizational Controls: A Computational Modeling Perspective.” His research on “Establishing Channels to Cooperation: How Managers Combine their Efforts to Apply Control and Demonstrate Their Trustworthiness” also was a finalist in the Best Overall Paper category.