“Harmony is a constant stream of evolution,
a constantly changing vocabulary and syntax.”
Rogers Sessions
©2007 Parris, Wolfe & Associates
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects of Discord in the
Organizational Structure
Financial and Human Asset Costs
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Effects of Discord in the Organizational Structure
Harmonizing: Strategy, People, and Process
Business
Strategy
Harmony
Process
Internal
Environment
With the business spheres in “harmony” corporate assets and resources are
enabled to perform at optimum levels.
3
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Effects of Discord in the Organizational Structure
"Harmony" in an Organization
• When an organization has “harmony” there is:





Open and honest communication
Strong work ethic combined with strong team spirit
Respect for each other
Healthy / productive conflict
productive debates
People work towards the same strategic goals
Strategies are properly implemented because of
strengthened interpersonal infrastructures; increasing
overall productivity.
©2007 Parris, Wolfe & Associates
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Effects of Discord in the Organizational Structure
Business
Strategy
Harmony
• Cultural tone of an organization
Internal
Environment
Process
• Human Resource Structure - an
entity's people.
When analyzing the HR structure we look at;
• the social work environment in which people operate
• their integrity and ethical values, and
• if talent and capacities are correctly being used.
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5
Effects of Discord in the Organizational Structure
Impact of Human Resource Discord on:
Business
Strategy
• Organizational Work Culture
Harmony
Process
• Human Resource Succession
Planning
Internal
Environment
• Operation Costs
• Effects on your Employee’s
Health
• Effects on your Workforce
6
©2007 Parris, Wolfe & Associates
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects of Human Resource Discord on the
Organization’s Work Culture
Macro Level
 Inhibits the owners/CEO’s positive work values and
principals from being replicated throughout the company
 Creates a distance between the main decision maker
and the Organization’s workforce
 Creates illusion of betrayal by senior management
7
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects of Human Resource Discord on the
Organization’s Work Culture – cont’d
Mezzo-Level
 Erodes employees trust and loyalty towards senior level
management
 Dissolves level of confidence in senior management’s
leadership capabilities
 Creates an environment of undermining and espionage
between workforce and management
8
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects of Human Resource Discord on the
Organization’s Work Culture – cont’d
Micro-Level
 Creates silos within business units and teams
 Weakens and dissolves inter-company support networks
• Lessens knowledge-sharing and team-learning
behaviors
 Diminishes the workforce’s contributions of creativity,
decision making, and risk taking behaviors
9
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Internal
Environment
Effects of Discord in the Organizational Structure
Organization’s Work Culture: illustration where undermining and espionage is occurring
• Mistreatment from co-worker/management
Employee Trust/Loyalty Diminished
Leaves
• Employees speak negatively about
poor leadership and management
Impacts Corporate Integrity
• New desirable talent avoids
employment with company
• Employee reveals proprietary information
Impacts Corporate Intelligence
• Undermines risk management
Disgruntled
Employees
Stays
• Strategy not implemented through
employees actions
Impact Strategic Planning
• Impedes “process”
• Workforce speaks negatively about
experiences to others in industry
Impacts Company Branding
• Company develops negative reputation
10
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects of Human Resource Discord on
Succession Planning
If a discordant individual is conducting employee performance
reviews, decision makers may receive biased information that
impedes succession planning.
As a result:
1. Decision makers may be shielded from identifying proactive
and valuable resources/assets.
2. Improper promotions / demotions hinder succession planning
strategies
3. Improper performance reviews hinder corporate & employee
development
11
©2007 Parris, Wolfe & Associates
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Internal
Environment
Effects of Discord in the Organizational Structure
Discordant individual is conducting evaluations and reviews - impedes Succession Planning &
impacts strategic planning
Senior Management / Manager
(Discordant Individual)
Inaccurate Team Evaluations
Impacts Strategic Planning
• “DM” shielded from
identifying valuable
employees.
• “DM” not able to assess
organizations actual
capacities
Access to direct
communication with
Decision Maker
(DM)
Poor Performance Reviews
Impacts Succession Planning
• Improper promotions /
demotions hinder succession
planning strategies
• Loss of talent access;
innovative and creative
thinkers leave from lack of
opportunity
Impacts Human Resources
• Improper performance
reviews hinder:
• Corporate growth
• Team’s confidence and
esteem development
• Employee development
• Workforce motivation
12
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Operation Costs:
Discord in the HR Structure
Internal
Environment
Effects of Discord in the Organizational Structure
When HR assets are inappropriately managed, the
business incurs hidden operation cost.
- a recent survey of 9,000 federal employees indicated that 42
percent of female and 15 percent of male employees reported
being harassed within a two-year period, resulting in a cost of
more than $180 million in lost time and productivity.
Michael H. Harrison, Ph.D
Harrison Psychological Associates
(Orlando Business Journal March 2002)
14
©2007 Parris, Wolfe & Associates
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Internal
Environment
Effects of Discord in the Organizational Structure
The below Illustration of hidden operation cost are taken from an independent case
study by Dr. Dan Dana: “Cost of Conflict”
HR Discord between four employees in a six month period
1. Distracted Team/Employee Time
$28,000
2. Opportunity cost of Distracted / Unproductive time
$14,000
3. Impact of Diminished Decision Making
$120,000
4. Terminated/Resigned employees
$50,4001
5. Employee Restructuring
$8,000
6. Intellectual and Property theft/damage
$0.002
7. Diminished Motivation
$11,200
8. Unproductive Work Time
$1,792
9. Employee Health Costs
$1,120
Total cost of only one conflict
1
2
$234,512
Assumes one of the $40k employees resigned; conflict played typical role.
Illustration makes conservative assumption that this factor did not incur cost.
15
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Effects on Employee Health
Mental and Physical
Internal
Environment
Effects of Discord in the Organizational Structure
Effects on Individual and Team Health: Mental and Physical
The effects of mistreatment extend beyond direct targets to include witnesses;
impacting the financial resources allocated for health benefits, insurance and sick
leave.
General Health Questionnaire (GHQ ) and Occupational Stress Indicator (OSI)
instruments enable us to assess the mental and physical results of stress.
• GHQ results; scores of 4 and above are level which may imply need
for screening for psychiatric treatment.
• Occupational Stress Indicator (OSI) scores measure physical
symptoms of neurological stressors
17
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Internal
Environment
Effects of Discord in the Organizational Structure
Effects on Individual and Team Health: Mental and Physical – cont’d
44
45
39
40
34
35
The findings show “Currently” bullied are
well above the need for psychiatric
treatment.
30
25
20
Bullying and Health Outcomes
15
10
5.6
5
3.7
2.8
0
Currently
Bullied
Previously
Mental (GHQ score)
Witness
Bullying
Occasionally
Bullied
(Rarely/monthly)
Regularly Bullied
(Weekly/Daily)
Mental
GHQ Score
5.45
6.68
Physical
OSI score
43.26
46.34
Physical (OSI score)
18
©2007 Parris, Wolfe & Associates
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• n=553
• UMIST - Destructive Conflict and Bullying at Work, Sponsored by the British Occupational Health Research Foundation (BOHRF); April 2000; By Helge Hoel &
Cary L Cooper; Manchester School of Management.
Atonal Team Environment:
Effects on your Workforce, Operation Cost,
Productivity and Customer Service
Internal
Environment
Effects of Discord in the Organizational Structure
Effects on your Workforce
When inappropriate work behavior is allowed to continue;
 The disruptive individual targets more employees
resulting in decreased employee self-esteem, health, and productivity
UMIST
60
UNISON
54.9%
50
40
31.2%
31.2%
30
20
11.2%
14.8%
Research shows:
 One individual most often is NOT
the only target.
 Entire workgroups report being
mistreated and bullied.
10
0
Individual
Individual and
Everyone in work
several other workgroup
colleagues
20
©2007 Parris, Wolfe & Associates
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Canada: 416-548-4237
UMIST n= 5,288 UNISON n=761
UMIST - Destructive Conflict and Bullying at Work, Sponsored by the British Occupational Health Research Foundation (BOHRF); April 2000; By Helge Hoel & Cary L Cooper;
Manchester School of Management. (2nd numbers based on UNISON, 1997 study via UMIST study)
Internal
Environment
Effects of Discord in the Organizational Structure
Effects on your Operation Cost
Macro
• Loss of competitive edge
• Loss current and future profitability
Mezzo
• High turnover of employees
• Replacement costs
• New/post-employee training cost
Micro
• Distracted time cost
• Higher rate of sick time & benefits
usage
• Insurance premiums increase
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Canada: 416-548-4237
21
Internal
Environment
Effects of Discord in the Organizational Structure
Effects on your Productivity and Customer Service
Diminished Production and Productivity Levels
• Lost production time results in lower productivity;
• Employees report they loose work time “due to rude workplace behaviour
directed toward them.”1
• Organizations who manage people well, outperform those who don't by 30 to
40%.2
A Weakening of Customer Service Quality:
• Customer service suffers when employees are harassed at work:
• Their loyalty diminishes
• They view the company as not protecting them from the disruptive
employee, as a result, the other employees take frustrations out on clients.3
©2007 Parris, Wolfe & Associates
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1. American Psychological Association; survey of 1,500 workers, 750 said they lost time from work: “due to rude workplace
behaviour directed toward them.”
2. Canada’s Safety Council
3. Orlando Business Journal
22
Resolving Discord
in the
Organizational Structure
Internal
Environment
Effects of Discord in the Organizational Structure
Discord in the Organizational Structure
Discord and negative dissonance in the work environment impacts not only the
target but also:
• Organizational Work Culture
• Human Resource Succession Planning
• Operation Costs
• Employee Mental & Physical Health
• Team Environment
24
©2007 Parris, Wolfe & Associates
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Canada: 416-548-4237
Internal
Environment
Effects of Discord in the Organizational Structure
Resolving Discord in the Organizational Structure – cont’d
When an organization identifies and successfully addresses these issues
inside of their workforce they:
• Increase communication, productivity, and production
• Preserve a positive work culture
• Instill a sense of trust and accountability of senior management
• Create a work culture that incubates innovative and creative teams
who share knowledge and are solution oriented
• Retain desirable talent and limit turn-over cost
25
©2007 Parris, Wolfe & Associates
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Canada: 416-548-4237
Internal
Environment
Effects of Discord in the Organizational Structure
Resolving Discord in the Organizational Structure – cont’d
Business
Strategy
Harmony
Process
Internal
Environment
When the three business spheres are “retuned” into harmony, resources are
stimulated into performing at optimum levels.
26
©2007 Parris, Wolfe & Associates
[email protected]
Canada: 416-548-4237
“Our mission is to encourage organizations to
strengthen their interpersonal infrastructures”
Parris, Wolfe & Associates’ consultants each have specific areas of
expertise, and years of experience to back up their knowledge.
We work directly with senior management and production staff to
facilitate team building, and resolve intra-office discord and dissonant
Human Resource issues prevalent in a company
To learn about our services please visit
www.businessaccountability.com
or call us directly.
Parris, Wolfe & Associates
416-548-4237
Thank you for your time
Tamara Parris & John Wolfe
Internal
Environment
Effects of Discord in the Organizational Structure
Sources
1.
2003 Report on Abusive Workplaces; by Gary Namie, Ph.D.; October, 2003. The Workplace Bullying &
Trauma Institute (WBTI)
2.
UMIST - Destructive Conflict and Bullying at Work, Sponsored by the British Occupational Health
Research Foundation (BOHRF); By Helge Hoel & Cary L Cooper; Manchester School of Management;
April 2000.
3.
Harrison Psychological Associates; Workplace bullying's high cost: $180M in lost time, productivity;
Orlando Business Journal - March 15, 2002 by Liz Urbanski Farrell; March 2002
http://orlando.bizjournals.com/orlando/stories/2002/03/18/focus1.html?t=printable
4.
UNISON (1997) Bullying at work: Bullying survey report. London; by UNISON.; 1997
5.
Bullying at work: Epidemiological findings in private and public organisations. European Joumal of Work
and Organizational Psychology, 5, 185–201.; by Einarsen, S. Skogstad, A.; 1996
6.
The incidence of workplace bullying. Journal of Community and Applied Social Psychology, 7, 249–255.;
by Rayner, C.; 1997
7.
Bullying in the Workplace. by Canada’s Safety Council; September 2000; http://www.safetycouncil.org/info/OSH/bullies.html
8.
Proudfoot Productivity Report, An international study of company-level productivity. by Proudfoot
Consulting; 2006
9.
Dana Measure of Financial Cost of Conflict; by Dr. Dan Dana 1999, 2006
10.
FASTOH project, Queensland University of Technology, Australian Maritime Safety Authority; 1996
28
©2007 Parris, Wolfe & Associates
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Internal
Environment
Effects of Discord in the Organizational Structure
Appendix
Internal
Environment
Effects of Discord in the Organizational Structure
Appendix 1
GHQ-12 Items
•
•
•
•
•
•
•
•
•
•
•
•
Able to concentrate
Lost much sleep
Playing useful part
Capable of making decisions
Under stress
Could not overcome difficulties
Enjoy normal activities
Face up to problems
Feeling unhappy and depressed
Losing confidence
Thinking of self as worthless
Feeling reasonably happy
The General Health Questionnaire (GHQ) screens for non-psychotic disorders and is available in the following versions: GHQ-60: the fully detailed
60-item questionnaire, GHQ-30: a short form without items relating to physical illness, GHQ-28: a 28 item scaled version – assesses somatic
symptoms, anxiety and insomnia, social dysfunction and severe depression, GHQ-12: a quick, reliable and sensitive short form – ideal for research
studies
•created by Dr. David Goldberg & used world wide
30
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Internal
Environment
Effects of Discord in the Organizational Structure
Key elements of OSI scores
(Occupational Stress Indicators)
Sources of Pressure
at Work
•
•
•
•
•
•
Factors intrinsic to the job
Managerial role
Relationships with others
Career and achievement
Organisational structure
Home/work interface
Sources of Job
Satisfaction
• Achievement, value &
growth
• Job itself
• Organisational design
• Organisational processes
• Personal relationships
Mental and Physical
Health
• Mental ill health
• Physical ill health
31
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Australian Maritime Safety Authority, 1996