Personality Traits in the New Reality: Changes in the Selection & Assessment of Management and Leadership Potential Final thesis EMBA6, 2008 – 2009 by Nynke Doorenbos & Maarten Paul Eurelings Thesis Supervisor Prof. Dr. Lidewey E.C. van der Sluis Second Reader Dr. Rob Blomme Nyenrode Business Universiteit, December 2009 Table of Contents The Preface ........................................................................................................................ 3 Managerial summary .......................................................................................................... 4 Introduction ....................................................................................................................... 6 Immediate causes ........................................................................................................................ 6 Objectives .................................................................................................................................... 7 Structure of this thesis................................................................................................................ 7 1. Theoretical Background ................................................................................................. 9 1.1. Definitions ............................................................................................................ 9 1.2. Literature Research .............................................................................................. 12 1.2.1. Big Five Personality Traits ................................................................................ 12 1.2.2. Big Five Personality Traits & Leadership .......................................................... 18 1.2.3. Derailing Personality Traits ............................................................................... 21 1.2.4. Derailing Personality Traits & Leadership ......................................................... 28 1.3. Research question ................................................................................................ 29 1.4. Conceptual Model ............................................................................................... 30 1.5. Expectations of research...................................................................................... 31 2. Methodology ................................................................................................................ 34 2.1. Sample ................................................................................................................. 34 2.2. Sample Results..................................................................................................... 34 2.3. Means .................................................................................................................. 35 Literature Research .................................................................................................... 35 Survey Design & Measurement .................................................................................. 35 Procedure................................................................................................................... 38 3. Results.......................................................................................................................... 39 4. Discussion .................................................................................................................... 47 4.1. Results Research Questions ................................................................................. 47 4.2. Linking Results to expectations ........................................................................... 53 4.3. Recommendations for Further Research.............................................................. 54 4.4. Limitations .......................................................................................................... 55 5. Conclusion ................................................................................................................... 58 5.1. Research Results .................................................................................................. 58 5.2. Managerial Implications ....................................................................................... 61 6. References .................................................................................................................... 62 7. Appendices .................................................................................................................. 66 Appendix A: Questionnaire and Results ..................................................................... 66 Appendix B: List of Participating Organizations ........................................................ 94 2 The Preface When writing a thesis for the second time, you think that you are wiser and better equipped to do the job. So, taking lessons from the first time around, you start well ahead of time and live under the impression that all will be fine. And then suddenly you wake up and time has run out. And the whole “it is thesis time” repeats itself. Oh joy… We have had sharp discussions, meaningful exchanges of ideas, painstaking library search days, happy moments, moments of sheer frustration and some moments with plenty of wine. Yet, we believed in our idea and the usefulness of our study and we kept faith in ourselves as individuals and as a team. It has been a great and interesting journey researching a very contemporary topic, of which we are sure, more shall be heard of in the future. First and foremost, we would like thank Lidewey van der Sluis for her guidance, time, wisdom and sternness. To our second reader and safe haven in times of stress, Rob Blomme, thank you. Furthermore we would like to show our appreciation to our parents, Jan en Betty Doorenbos and Martin and Paula Eurelings, as they always stood by us, even in difficult and “grumpy” times. We are done. Not just with the thesis but also with our MBA of which the thesis was a last but nonetheless challenging assignment. O, and have we mentioned that we are loving it.? Bubbles, here we come! Nynke Doorenbos & Maarten Paul Eurelings “It has been wisely said that the world is not interested in the storms you encountered, but in whether you brought the ship in safely” (Norman Augustine in Managing the crisis you tried to prevent, HBR, Nov-Dec 1995). 3 Managerial summary The objective of this research is to acquire insight into the possible effects of the New Reality on those Talent Management processes which deal with selecting and assessing (potential) management and leadership talent based on certain personality traits, within organizations in the Netherlands. Related questions are to which extent personality traits used in these selection and assessment processes are recognized as desirable in organizations and if the use of the personality traits has altered over the past two years. And also, do organizations use these personality traits in the design of management- and leadership profiles and have these profiles and other Talent Management processes changed recently or are the excepted to change. In order to acquire insight into these questions, an empirical study was designed. We designed the questionnaire with the theory about personality traits and the New Reality in mind. It must be noted that the questionnaire is not based on existing validated questionnaires. The overall survey was executed to acquire insight in the perception of respondents regarding the current situation regarding the selection and assessment of (potential) management and leadership talent within organizations, therefore a practical study. It was decided to conduct the study among Dutch organizations in the segments forprofit, not-for-profit, and government. Important to consider is that the economic crisis and emerging New Reality shook many organizations to their foundations. We have observed that in many organizations this upheaval has lead to less than desirable effects. To name a few: a procrastinating attitude while waiting for things to come, ego-centered behavior combined with keeping the cards close to ones chest, decrease of (true) teamwork and even sabotaging others to get ahead. This is not totally illogical as employees, and managers to no lesser extent, feel uncertain about their position within the organization. Results of our research show that The New reality has indeed had an impact on the way management and leadership profiles are designed and the talents are assessed. Evaluations and assessments have become stricter. Much to our surprise, the Big Five seem to have become more important in light of the New Reality, whereas Derailing Traits, in spite of 4 many researches and support for this theory, are not yet incorporated in Talent Management processes. Keywords: Personality, Big Five, Derailing Traits, Talent Management, Talent Management Effectiveness, Talent Profiles, Talent Management Processes. 5 Introduction Introduction Immediate causes “The history of the world is the biography of great men” according to historian Th. Carlyle in 1907. He claimed history is shaped by the forces of good leadership. The same applies to organizational history. Businesses are lead by people and it is people who make decisions and therefore create value. The better the leader and people an organization employs, the better it will perform. This is where Talent Management can and should play a meaningful role. Talent Management means different things to different people. Nevertheless, it certainly contains the following elements: attract, indentify, develop, deploy and retain talents within an organization. Whilst Talent Management is of key importance, from an organizational point of view, it often suffers from “short-termism” e.g. the obsession with short term performance. And while many companies may have Talent Management processes in place, those practices may well have failed to adapt to the changing needs of organizations in the rapid changing world of today. And there will be changes. HR professionals in general and Talent Management specialists in particular are facing challenging times. There are massive demographic shifts: the Baby Boomers will start to retire en mass in 2011 and organizations will have to prepare for the wishes of the workforce of tomorrow: generation Y. Furthermore, organizations in the West will have to cope with the enormous growth of the Eastern markets and the associated consequences. And last but not least, the talent process to identify the future leaders has become a much more strategic process (Harvard Business Review, 2007). Important aspects within Talent Management are the process of selecting, assessing, engaging and developing the organizations‟ management and leadership talent. Currently there is much debate on the issues of integrity, bonus culture, the huge ego of (top) managers at the expense of the organization, sustainability of today‟s business models and risk management. It would seem that, in order to accommodate a transition to face the challenges ahead, the profile of tomorrow‟s managers and future leaders will have to change. 6 Introduction Objectives If we take a closer look at Talent Development as such, we see that character, personality traits, skills, knowledge and context all contribute to the development of an individual. In the study, Stand in het Land 2009, which researched the state of affairs concerning Talent Management in the Netherlands (Van der Sluis, 2009), it is stated that professionals in the Netherlands believe that personality traits, ambition, intelligence, skills, and knowledge of an individual together determine if an individual is considered to be a talent. The study specifically notes that of the aforementioned factors, personality traits weigh the heaviest. Also in literature, personality and character traits of managers and leaders within organizations are of growing importance compared to the more traditional functional and technical competencies. This is a trend that has also been picked up by academic research with a focus on the positive personality traits, the “Big Five” and the negative personality traits, the “Derailing Traits”. Therefore, it would be interesting to discover if, due to the current economic situation, also referred to as the „New Reality‟, the rise of scandals, and questionable ethical behavior of managers in the recent past, the processes that deal with talent selection and assessment have changed. as to be able to address the challenges ahead accordingly. Have organizations thought about what kind of management and leadership talents they need in the future? Have organizations adjusted the profile for their (potential) management and leadership talents? Have specific personality traits increased in importance if they are deemed necessary for the survival of the organization in the (near) future? Is there a strategy in place for these long term issues based on new insights provided by recent discussions in relation to the economic meltdown? These are the questions we would like to research in this thesis. Structure of this thesis Over the years, much has been written and researched with regard to personality traits. Our first step therefore is to conduct an extensive literature research in Chapter 1 „Theoretical Background‟. We will explore the evolution and current insights of scientists on personality traits e.g. the Big Five and Derailing Traits; their development, their relationship to leadership, and their usefulness in the selection and assessment of management and leadership talent. Our findings of the literature research together will lead to the Research 7 Introduction Question, stated in section 1.3. The purpose of these research questions is to find answers to the objectives raised in the introduction. The Conceptual Model and Expectations of Research will be explained in the remainder of this first chapter. In the beginning of Chapter 1 we will start with a set of definitions of concepts used in this thesis. In order to gather data in support of our research objective, a questionnaire consisting of 75 questions has been sent out to Talent Management / HR professionals, line- and (top-) managers in the Netherlands. .In Chapter 2 „Methodology‟, we will present our sample choice. In 2.2 the Means will be discussed e.g. which tools were used to conduct our survey, and why specifically these constructs were chosen. In 2.3 „Procedure‟ it will be explained which sources were consulted, how data was analyzed en by which methods. The research findings of our survey will be discussed in Chapter 3 „Results‟. We will answer the research questions in Chapter 4 „Discussion‟, based on these findings and the literature research findings as described in Chapter 2. Subsequently Recommendations for Future Research will be given as will the Limitation to the current research be explained. Finally we will conclude this thesis with Chapter 5 „Conclusion‟. Managerial Implications will be included in this chapter. 8 Theoretical Background 1. Theoretical Background 1.1. Definitions In this first section we briefly explain some of the concepts and definitions used in our thesis. The Big Five and Derailing Traits are not included in this first section as we will devote extensive attention to both concepts in the following sections. Assessment: according to Britannica assessment is the process of gathering and documenting information about the achievement, skills, abilities, and personality variables of an individual in light of a certain function or job profile. An assessment can include interviews, physiological tests, role playing exercises and the observation of behavior. The objectives of an assessment include: to learn more about the competencies and deficiencies of the individual being tested; to identify specific problem areas and/or needs; to evaluate the individual's performance in relation to others; to evaluate the individual's performance in relation to a set of standards or goals; to provide organizations with feedback on vocational and organizational fit; to evaluate the impact of psychological or neurological abnormalities on learning and behavior; to predict an individual's aptitudes or future capabilities. On the validity of assessment tools used in organizations we would like to say the following. Research on personality within organizational settings has established that personality measurements which focus on occupational criteria such as, but not limited to management potential scales, are fine predictors of organizational standards such as training proficiency and knowledge acquisition, job performance, counterproductive behavior, organizational commitment, and management and leadership potential. Personality measures can be based on the Big Five, criterion focused, occupational personality questionnaire or alternative models (Ones & Viswesyaran, 2001, Salgado, 2005). Personality measures have been widely used in organizational decisions of professionals. Primarily these measures are used in personnel selection but also in training processes, personnel development programs, and establishing competence profiles. The use of 9 Theoretical Background assessments and assessment centers are specifically very popular in the Netherlands when compared to other European and western societies (Van Muijen, 2008). Career Success: the real or perceived achievements individuals have accumulated as a result of their work experience (Judge et al., 1995). Intrinsic career success is the individuals‟ own subjective reaction to his or her career. Extrinsic career success is objective and observable in terms of salary, number of promotions and / or occupational status. Both intrinsic and extrinsic career success are only moderately correlated. Human Resource Development (HRD): the development of human recourses and therefore the development process of individuals within organizations. This increase of human capital can be viewed from the organizational level or the individual level. If one looks at HRD from a responsibility point of view, there are the corporate HRD programs, including Talent Management programs that facilitate this development of employees. There is also a growing tendency to hold employees responsible for their own personal development and growth, and therefore their own employability (Van der Sluis, 2007). Leadership: “Leadership involves persuading other people to set aside for a period of time their individual concerns and to pursue a common goal that is important for the responsibilities and welfare of a group” (Hogan, Curphy & Hogan, 1994). Leadership emergence: whether, or to what degree an individual is viewed as a leader by others (Hogan et al., 1999). A “within the group” phenomenon – the leader will usually emerge from within a group (Mann, 1959). Leadership effectiveness: how well a leader facilitates “the movement of a group of people toward a common goal or objective” (subjective rating) as well as the consequences of the leaders‟ actions i.e., team outcomes, achievements (more objective) (Hendricks & Payne, 2007). A “between groups” phenomenon. Note that both these concepts tend to become blurred in practice, especially when measured perceptually. Transactional leadership: a leadership style characterized by the fact that leaders like to maintain the status quo, reward effort and emphasize commitment. Based on reinforcement and exchange (“if you work well I shall reward you well”). 10 Theoretical Background Transformational leaders: a charismatic leadership style characterized by the fact that leaders like to alter the status quo, energize and delegate responsibilities and tasks to followers and or employees. Based on responding effectively to the (changing) environment and intrinsic motivation (De Hoogh, Den Hartog & Koopman, 2004). New Reality: the economic crisis as we have experienced the last two years is creating new realities for people and financial management. In popular literature this is referred to with the term New Reality. The challenge for organizations lies in successfully adjusting to this new economic situation. Economists are debating the question of recovery. But what will this recovery look like? There seems to be some consensus on the fact that this recovery will be modest and the economy will not return to the robust but illusionary economy of around 2005. In the short run, recovery is likely to be weak and it seems that both consumers and businesses are changing their spending patterns only to adjust to a new and more realistic picture of their wealth (Roubini, 2009, New York University). Personality, Character and Intelligence Personality traits: traits that an individual is born with but that can still be somewhat tweaked as his/her life progresses and grows in maturity. Examples include: introvertedness, extrovertedness, seriousness, agreeableness, etc. Character: is something an individual develops throughout his or her entire life through moral and immoral decisions. Examples include: integrity, honesty, loyalty, politeness, etc. Intelligence: general mental ability, falls in neither of the above two categories. Talent Management and Talent Management processes: the process of attracting, identifying, developing, deploying and retaining talents within an organization. Laying off employees is sometimes also part of the definition, but that is disregarded for the purpose of this research. Talent Management is usually a part of the larger HRD department or HR practices within an organization. Talent Management practices and processes include performance management schemes, the area of leadership development, workforce planning including identifying talent gabs, and at times it will also include recruiting new talents. 11 Theoretical Background 1.2. Literature Research The obvious fact that people have personalities has actually been acknowledged and documented in past research. Furthermore, this personality matters as it has a predictive and explanatory value when related to work behavior (Goldberg, 1993). Research has also shown that, next to the importance of general mental ability (intellect), managers, when hiring new talent, value individual personality traits almost at the same level as the intellectual abilities (Dunn et al., 1995). This seems completely logical as no manager would like to hire someone who does not care about the results (low on Conscientiousness), or is insecure and acts hostile (high on Neuroticism). Because of this advancement in the research and improved ways of assessing personality traits, there exists a lot of evidence that personality traits as such can be positively or negatively related to job performance, and, more specifically, to management- and leadership performance. In the remainder of this chapter we will first examine the literature that deals with the positive side of personality, the Big Five personality traits and their relationship to leadership within organizations. In the second part we take a closer look into the dark side of personality traits, the Derailing Traits, and their relationship to leadership. 1.2.1. Big Five Personality Traits Background The first model, that later would grow into what is now called the Big Five, has been around since 1936. Allport and Adbert‟s classifications provided an initial structure regarding a personality traits lexicon. The Big Five as such, which originally was discovered in analysis of English personality adjectives (Goldberg, 1990) has since then also been supported by studies in several other cultures (racial and ethnic groups) and languages including German, Czech, Italian, Filipino and Dutch (Hofstee & De Raad, 1991). The latter being of specific importance for our research, since questionnaire will be conducted in the Netherlands. The title, the “Big Five” was chosen to emphasize that each of these factors is extremely broad. All traits cover several but distinct lower level and more specific traits as can be seen 12 in table Theoretical Background below. Factor Scale People high on scale People low on scale Extraversion Warmth Gregariousness Assertiveness Activity friendly; affectionate prefer company of others forceful; tends to lead energetic crave stimulation formal; reserved prefer to be alone lets others lead laid back little need for thrills less exuberant Agreeableness Conscientiousness Neuroticism Openness Excitement Seeking cheerful; optimistic Positive Emotions Trust disposed to trust others frank; Straightforwardness ingenuous Altruism generous, considerate deferential in Compliance conflicts humble; self-effacing Modesty Tender sympathetic mindedness Competence feels capable, effective Order neat Dutifulness principled; scrupulous diligent; Achievement purposeful Self-Discipline ability to motivate self cautious Deliberation Anxiety Angry tense; apprehensive frustrated; Hostility angry Depression hopeless Self-Consciousness sensitive to ridicule Impulsiveness low self-control Vulnerability poor coping with stress Fantasy vivid imagination Open to Aesthetics likes art and beauty Open to Feelings many emotional states willing to try Open to Actions new things intellectually curious; Open to Ideas open-minded Open to Values skeptical of others not candid guarded self-centered prefers competing conceited; arrogant hardheaded feels inept unorganized casual about duties lackadaisical procrastinates; quits hasty calm; relaxed easygoing not easily dejected rarely feels inferior resists temptations feels immune to stress prosaic dislikes art and beauty blunt affect change is difficult narrow range of ideas dogmatic Table 1: Descriptions of People High and Low on the Five Factor Scales (Costa and Widiger, 1994 ) The scales in table 1 represent more specific personality traits, which Costa and other researchers commonly refer to as facets. Each facet is in its own determined by another eight items (not mentioned in the table). Therefore each trait (or „construct‟ in research language) is measured with 48 items, and the combinations of items are endless. As can be expected in any hierarchical representation, information gets lost as one moves up the hierarchical levels. Critics of the model state that it does not provide a complete theory of personality (Block, 1995; Eysenck, 1997). This criticism is correct as the Big Five model was never intended to be an „answer to all‟ theory. It is an empirically based phenomenon, not a psychological theory of personality. These five dimensions where derived after conducting thousands of surveys, each consisting of hundreds of questions. The five traits emerged when the data on how various personality traits are correlated within people were analyzed using the statistical method factor analysis. The underlying correlations are probabilistic and therefore exceptions are of course possible. Rather than being a complete theory, the Big 13 Theoretical Background Five model has been developed to account for the structural relations among personality traits. The model is primarily descriptive, emphasizes regularities in behavior and focuses on variables rather than on individuals. It is not based on one particular theory but simply on a common language. One has to be aware that there are many aspects of personality that are not included to fall within the Big Five as personality trait in the language of psychologists has a much narrower meaning than in every day usage. Motivation, emotions, self-concepts, autobiographical memories, and life stories are a few of the other elements that may have theoretical or empirical relationships with the Big Five traits, but they are conceptually distinct. For this reason, even a very comprehensive profile of an individual‟s personality traits can only be considered a partial description of their personality (Srivastava, 2009). Keeping the above in mind, the Big Five have been generally and internationally accepted by now as a useful hierarchical representation of personality traits (Saucier & Goldberg, 1998; John & Srivastava, 1999). The model established a common taxonomy in the field of personality trait research. Its enthusiasts go as far as to consider the Big Five the “Rosetta Stone of character”, the solution to a scientific problem whose roots date back to antiquity (Mohberg, 1999). It must be noted that the Big Five (lexically based) is not exactly the same as the “Five Factor Model” (FFM), a model that has been build around a questionnaire assessing the Big Five called the NEO-PI-R, developed by Costa and McCrae in 1992. However, even researchers agree (Goldberg, 1993; Mohberg, 1999) that since the findings of the FFM and the Big Five are virtually identical and both sets of five factors are almost similar, these two terms can be used interchangeably. We will consequently refer in this thesis to the more colloquial term, the Big Five, at all times. Big Five In literature many different names have been used for the factors which make up the Big Five. The first one, Openness to experience is also referred to as intellect, imagination and culture. Other descriptions for Conscientiousness include ambition, need for achievement, dependability, task interest and constraint. Extraversion has also been labeled surgency, 14 Theoretical Background dominance, assertiveness, capacity for status, social presence, and sociability. The Agreeableness factor may appear as likable, friendly compliance, need for affiliation, and love. Finally, other terms used for Emotional Stability include self-acceptance, selfconfidence, achievement via independence, satisfaction and (in reverse) neuroticism (Hogan, Curphy, & Hogan, 1994; Salgado, 2005). When considering the bright side of personality, a popular way of referring to the Big Five personality factors is the anagram OCEAN (Costa & McCrae, 1992), which stands for: E. Extraversion (energy and enthusiasm) A Agreeableness (altruism and affection) C Conscientiousness (control and constraint) N Neuroticism (negative affectivity and nervousness) O Openness (originality and open-mindedness) The factor N is also commonly referred to as Emotional Stability. At this point we have a list of traits that make up the Big Five of which one appears socially neutral: Extraversion, three that seem praiseworthy: Conscientiousness, Agreeableness and Openness, and the last one that which looks more like a vice then a virtue: Neuroticism. When looking at the assessment of the Big Five traits the following should be taken into account. Under normal circumstances, it holds when testing general mental abilities (intellect), the higher the test score the better. However, the same rule does not apply to test scores regarding personality. For example, it may very well be possible that both very high and very low scores are contra-indications for success as a manager. This applies to both the Big Five as to the Derailing Traits to be discussed in 1.2.3. To take it one step further, extreme ends of each scale are associated with psychological disorders (Widiger et al., 1992). Below we will take a closer look at the Big Five including the implications of high and low scores. Extraversion Extraversion is characterized by positive emotions, and the tendency to seek out stimulation and the company of others. Extravert individuals are often perceived as full of energy and having a high engagement with the external world. They tend to be enthusiastic, action-oriented individuals who like to talk when in groups, assert themselves, and draw 15 Theoretical Background attention to themselves. However, they tend to be bad listeners. Those individuals with lower scores tend to be quiet, low-key, deliberate, less involved in the social world, and withdrawn. Introverts simply need less stimulation than extraverts and prefer to spend more time alone. These individuals do not have the ambition to be in a prominent position. They find it hard to get started and need some persuasion. Agreeableness Agreeableness is the tendency to be compassionate and cooperative rather than suspicious towards others. People with high scores on Agreeableness have an optimistic view of human nature. They value getting along with others and are generally considerate, friendly, generous, helpful, and willing to compromise their interests with others. On the other side they tend to avoid conflicts, are compliant, obedient, and find it difficult to determine their own boundaries. Individuals with low scores are strongly focused on their own interest, can be difficult to work with, show little empathy, and might be distrustful. They find selfinterest more important than getting along with others. They can be skeptic, suspicious, and uncooperative. Conscientiousness Conscientiousness is a tendency to show self-discipline, act dutifully and be persistent, to have high standards, to be well organized and to aim for achievement. The trait shows a preference for planned rather than spontaneous behavior. In addition, individuals with high scores are regarded positively by others as intelligent and reliable. The flipside is that they tend to be very stringent and work strictly according to (own) rules, are inflexible and rigid. Individuals with low scores do not attend to details and are not so well organized and therefore seen as chaotic. They may take their responsibilities somewhat lightly, careless and are generally unreliable. Yet, they will also be flexible and adaptive. Emotional Stability (Neuroticism) Individuals with high scores on Emotional Stability can be described as secure and generally relaxed even under stressful conditions. They will act on facts, not on feelings, are usually not personally affected or responsible, might come across as insensitive, and work strictly on the basis of rationality. They are less emotional reactive. Those who score low on Emotional Stability tend to be insecure and may act impulsively on their emotions. They tend to be more perceptive of the feelings of others. At the same time they feel less able to 16 Theoretical Background cope with stress, are less capable of handling themselves in difficult situations, they are vulnerable and can be moody. Note that Emotional Stability and Neuroticism will be used interchangeable in this thesis as quotes from research findings will be leading and researchers use these terms interchangeable. The reader is advised to be aware that both are opposing in the personality spectrum (this means that a high score on Emotional Stability equals a low score on Neuroticism) Openness to Experience Individuals who score high on openness in general have an appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of experience. The trait distinguishes imaginative people from down-to-earth, conventional people. Furthermore, they have broad interests and are very imaginative and insightful. They tend to be, compared to closed people, more creative, more aware of their feelings and are more likely to hold unconventional beliefs. People with low scores on Openness tend to have more conventional, traditional interests. They prefer the plain, straightforward, and prefer familiarity over novelty. They are conservative and not open to change. (Costa & McCrae, 1988, 1990, 1992; Goldberg 1990; LTP extracts1). Personality changes and differences Various studies which compared personality traits across different age groups and correlated tests scores over time illustrated that people‟s traits hardly change. In other words, people‟s personality traits remain quite stable during their adult years (McCrae & Costa, 1990). However, this has been rebutted by more recent meta-studies that showed that change actually does occur in all five traits at various points during a person‟s life; this is referred to as the maturation effect. This is an important finding for this thesis, as it is shown that in fact one can change if one is willing or forced to change (major life event). Levels of Agreeableness and Conscientiousness will usually increase over time. On the other hand the levels of Extraversion, Neuroticism and Openness tend to decrease (Srivastava et al., 2003). In a different research, Agreeableness was found to be the least stable trait while Conscientiousness was the most stable (Judge et all, 1999). It is important to keep in mind however, that these studies describe group effects which are affirmed by the individual. Individuals can and do change their patterns of behavior as a result of intervention programs (Heatherton & Weinberger, 1994), yet the latter (focusing on the 1 Large and well know assessment company in the Netherlands. 17 Theoretical Background individual versus commonalities within groups) falls out of the scope of this thesis. Last but not least are the sexual differences. Research shows that women time and time again report higher on Agreeableness and Neuroticism whereas men repeatedly score higher on Extraversion and Conscientiousness. What is interesting is that these differences between the sexes increase in wealthy, healthy and mostly egalitarian cultures, such as the Netherlands (Costa, Terracciano & McCrae, 2001; Schmidt et al., 2008). 1.2.2. Big Five Personality Traits & Leadership Big Five and job performance The ability to predict leadership effectiveness has intrigued many scientists and numerous research studies have focused on leadership as a phenomenon. As leaders often perform well in their jobs a connection can be made here with job performance which was the first domain to be studied by researchers in combination with the Big Five. Do any of the traits of the Big Five enhance job performance? The answers are both affirmative and mixed (Moberg, 1999). It was found that Conscientiousness is overall important and relates positive to all performance criteria and therefore being the only general predictor of job performance. Extraversion on the other hand was only a valid predictor for jobs that required social interaction like sales or management; interaction geared towards influencing others and obtaining status and power. Additionally, Agreeableness and Openness to Experience were found to be good predictors of mentoring on the job, working well in teams, influencing, the ability to adapt to change, and learning new skills (Barrick & Mount, 1991) (see table 2). Extraversion Stability Agreeableness Conscientiousness Openness Professionals -.09 -.13 .02 .20 -.08 Police Officers .09 .10 .10 .22 .00 Managers .18 .08 .10 .22 .08 Sales people .015 .07 .00 .23 -.02 Skilled workers .01 .12 .06 .21 .01 Table 2; personality and job performance (Barrick & Mount, 1991). A different study done in the same year came to slightly different results where Agreeableness followed by Openness to Experience were found to be most strongly related to job performance (Tett, Jackson & Rothstein, 1991). Other scholars agree that both Conscientiousness and Agreeableness are the most important to succeed at one‟s job 18 Theoretical Background (Moberg, 1999; Williams et al., 1995). Later research has focused on Emotional Stability (or Neuroticism) where this trait was found to be one of the two “general predictors”, next to Conscientiousness, a trait that all scholars seem to agree upon. The other three personality traits, Extraversion, Agreeableness and Openness to Experience are in their own right also valid predictors for job performance but only under certain conditions; so for specific jobs or specific qualifications (Barrick et al., 2001) which support the facts stated above concerning Extraversion and sales/ managerial roles. Therefore matching traits with certain job criteria can add significant value to an organization. Big Five and career success Continuing on this line of thought are the studies which look at the Big Five in relation to career success, and specifically extrinsic success: income and occupational status. Here the general findings are that Conscientiousness positively predicts extrinsic career success. Low Agreeableness and Neuroticism, and high Extraversion and Openness also relate positively to extrinsic career success (Judge et al., 1999). When turning this around it means that a high score on Agreeableness negatively influences extrinsic success and therefore is negatively related to management potential. Or as Hogan and Hogan (2003) note: in the “getting along” performance, the personality traits Emotional Stability (low on Neuroticism), Conscientiousness and Agreeableness are the best predictors. But more interesting, when looking at “getting ahead”, the best indicators are a facet of Extraversion, Ambition, the trait Emotional Stability and again, Conscientiousness. Big Five and Leadership A more recent meta-analysis study supported the trait theory of leadership (Judge et al., 2002) and stated when using the Big Five to predict leadership emergence the multiple correlation was .53 and with leadership effectiveness this was .39. Overall, Extraversion was the most consistent correlate of leadership, both to leadership effectiveness as leadership emergence, although the latter showed the strongest relationship. This seems logical as dominant and sociable people are likely to attract attention to themselves within groups. Second in correlation strength were Conscientiousness and Openness. Conscientiousness was most strongly related to leadership emergence. The explanation can be found in the organizing and facilitating activities by these individuals, which may allow them to emerge. As for Openness, this trait is the least understood of all Big Five as it has 19 Theoretical Background not related to many criteria used in research so far. Only the facets creativity and social attitudes which belong to Openness stand out as relations have been found between these facets and research criteria. Yet the trait Openness as such did correlate with leadership, the reason is unknown. On the whole, Agreeableness was the least relevant Big Five trait to relate to leadership. Again, this would make sense since agreeable individuals tend to be passive and obedient which makes them less likely to surface in a group as a leader. Finally, Neuroticism showed no significant relation to leadership emergence nor to leadership effectiveness, and therefore serves as a poor predictor of leadership. The study concludes with the warning that many situational or context factors can moderate the validity of personality traits in predicting leadership. Because as to the why and how personality affects leadership, this remains unanswered. Big Five and Leadership in Context A study that in fact incorporated the context into their research has been executed by De Hoogh, Den Hartog and Koopman in 2004. In this research they examined the relationships between the Big Five and leadership behavior and whether the work environment (dynamic or stable) moderates this relationship. A distinction was made between Transactional leaders (maintain status quo, rewarding effort and commitment) versus Transformational leaders (or charismatic leaders; set to change the status quo, energize and delegate to followers, to respond effectively to the environment). Conclusion of the researchers was that Agreeableness and Conscientiousness were both positively related to both types of leadership (especially transactional) in a stable environment. However, in a more dynamic work environment both traits were rated less to transactional and transformational leadership styles. The latter conclusion could be contributed to the fact that sticking to regulations and being compliant rather than grasping opportunities reflect negatively on the perception of leadership in dynamic environments. Openness was found to correlate positively only in the combination transformational leaders in a dynamic work environment. In a stable environment transformational leaders who question the status quo and try to find new opportunities to reach goals are perceived as too unsettling. The same result applied to Neuroticism. Leaders who scored relatively high on Neuroticism were rated more charismatic in dynamic work environments compared to stable environments. A more emotionally charged individual might take a stand to change the status quo and by doing so inspire others to follow (Cable & Judge, 2003). Note that as 20 Theoretical Background stated above, previous research that did not take the context into account did not find a relationship between Neuroticism and leadership (Judge et al., 2002). This implies that context is an important variable in assessing leadership. Extraversion is the last trait to be discussed here. Contrary to the researchers‟ expectations they found no relationship between Extraversion and Transformational leadership, regardless of the context. This finding contrasts other research findings that certainly do link Extraversion to charismatic leadership and most strongly in challenging environments (Ployhart et al., 2001; Bono & Judge, 2004). It seems useful to add here that research moreover found that the relative “strength” or “weakness” of an environment plays a role in personality and behavior. When situations are perceived as exceptionally strong, people will react in the same way, irrespective of their individual personality trait make-up. Thus the relationship between personality and actual behavior decreases in strong situations. Continuing this line of reasoning, the validity of personality traits in predicting behavior or performance has found to be stronger when a situation or environment is labeled as “weak” (Barrick & Mount, 2005). To conclude the literature search on leadership and the Big Five, a natural leader, defined in Big Five terms (yet old style or transactional) is resilient (thus low on Neuroticism), outgoing, persuasive and energetic (high on Extraversion), a visionair (high on Openness), dedicated to the goal (high on Conscientiousness) and competitive (low on Agreeableness). Nevertheless, by now we know that it is a game of trade offs and that the environment or work context plays a substantial role as well in determining which leadership style fits with a particular organization. In the next paragraph we move on to examine the literature on Derailing Traits and their connection to leadership. 1.2.3. Derailing Personality Traits Background The crisis did not just happen to us, it was caused by people. Businesses are run by people. The better theses people are, the better an organization will perform. With the rise of corporate scandals and ethical breaches and due to the global recession much attention has been given to the mistakes that contributed to this financial and economic crisis. Giving attention to these faux pas may help in preventing them in the future. Yet a lingering leadership crisis continues to haunt the corporations of today. An old saying in the 21 Theoretical Background executive world is that an executive is hired on competence but fired on personality (Fernandez Araoz, 1999). In the last decade, one-third of Fortune 500 CEOs lasted fewer than three years. Failure rates among top executives range from 30 to 75 percent. Over half of first-time general managers stumble, some never to recover (Kornferry Institute, 2009). Freud was one of the first people to think and write about self-defeating behaviors, but his exclusive focus on understanding these behaviors from a purely intra-psychic viewpoint limits the applicability to leadership (Benson & Campbell, 2007). In this research, the definition of Derailing Traits given by Lombardo, Ruderman & McCauley (1988) will be used. Derailment in a managerial or executive role is defined as being involuntarily plateaud, demoted, or fired below the level of anticipated achievement or reaching that level only to fail unexpectedly. Derailing or dark side characteristics of personality are personality manifestations that are between the range of normal personality and more severe mental disorders (Benson & Campbell, 2007). However, derailment should not be confused with the fact that chances of managers to be promoted to a next level role, while climbing the organizational pyramid, declines. This situation also leads managers to reach their peak below the top level in the organization, but this is not a form of management derailment (Van Zyl, 2000). To better understand dark side personality traits and reasons for derailment, it is useful to look at these factors in their own right rather than simply as low scores on the indicators of success like for instance the Big Five model does (Lombardo, Ruderman & McCauley, 1988). Historically, research on the cutting face of psychology and (talent) management was focused on abilities, skills and positive character traits as predicting factors of professional achievement in general and specifically managerial achievement (Lombardo et al., 1988). The before mentioned Big Five assumes that high scores on indicators of success will be a predictor of behavior. Even though the Big Five is not seen by everyone the most comprehensive representation of personality, it has been the model of choice for the vast majority of personality related research (Benson & Campbell, 2007). In the first half of the 1980‟s a common belief arose that Derailing Traits should have to be studied separately and in their own right in order to get a better understanding of reasons for derailment (Lombardo et al., 1988). 22 Theoretical Background One of the pioneers in this area was Bentz (1985), who conducted in depth interviews with derailed managers. His conclusion was that many executive level failures lacked one or more of the managerial skills needed at these levels (e.g. administrative skills, disciplined judgment, ability to deal with a large scale organization), and that derailed managers were highly skilled individuals who possessed one overriding personality characteristic that flawed their careers (see table 3). In a different study, two groups of managers were compared, who all looked very promising at the start of their careers, but of which only half proved to be successful, and the other half derailed. From this comparative study, they concluded that three factors play a role in derailment: 1) an early strength that has turned into a weakness, 2) a deficiency such as an inability to work with peers, and 3) plain bad luck (McCall & Lombardo, 1983). Some believe that failed leaders posses bad judgment, cannot build teams, have troubled relationships, and cannot manage themselves or learn from their mistakes (Hogan, Hogan & Kaiser, in press). However, other sources are less definite and proclaim that derailment is not necessarily the end of a manager‟s career. After derailing in one organization, managers are able to become successful in other organizations, or in their own startups (Morrison, White & Van Velsor, 1992). More recent studies have shed light on the reasons that underlie managerial derailment. They claim that derailors tend to cling to past habits and resist change. The reason for the fact that they rely on their greatest strengths from the past is that they have been visibly rewarded for doing things their way (Denton & Van Lill, 2006). Therefore, they also conclude that the organization plays an important role in the derailment of managers in the form of target settings and reward systems. 23 Theoretical Background Reasons for Executive Failure & Derailment Bentz McCall & Lombardo 1. Lack of administrative skill, often masked by a strong personality 1. Specific performance problems with the business 2. Failure to shape events (e.g. Being reactive and tactical 2. Insensitivity to others: an abrasive, intimidating, bullying style 3. Cold, aloof, arrogant 3. Inability to deal with the scope and scale of large organizations 4. Failure of leadership (e.g. didn't face up to subordinate performance problems; couldn't build cohesion 5. Lack of disciplined judgment (e.g. Overly emotional; intellectually limited) 4. Betrayal of trust 5. Overmanaging - failing to delegate, or build a team 6. Overly ambitious – thinking of the next job, playing politics 7. Failing to staff effectively 8. Unable to think strategically 6. Lack of knowledge of the business 9. Unable to adapt to a boss with a different style 7. Overriding personality defect 10. Overdependent on an advocate or a mentor 11. Miscellaneous skill deficiencies 12. Burned out Table 3: Reasons for executive failure & derailment (Lombardo et al., 1988). The very elements that made the organization successful, and that promoted the managers‟ behavior, unfortunately also become a part of the problem. As can be seen in table 4, not only the character and behavior of the derailed manager is analyzed, but also the role of the organization, thus the context in which individuals derail. In the situation, in which the organization requires different capabilities of the manager or executive, behavior can be labeled as derailment (Denton & Van Lill, 2006). A striking difference between men and female derailors was revealed by research of Morrison et al. They concluded that men have significantly greater problems with relationships than women. Also, men are more sensitive to poor performance as a cause of derailment. Yet, women are more often than men overly ambitious and want too much, possibly in order to prove that they can make it in a “man‟s world” (Morrison et al., 1992). 24 Theoretical Background Table 4: The Derailment process: from early strengths towards eventual derailment (Denton & van Lill, 2006). Why are Derailing Traits important? The primary reason for the interest in derailing traits is the associated cost of a derailing manager. The cost of a derailed manager, in the form of recruiting, selecting and training new ones, „golden parachutes‟, lost intellectual and social capital, missed business objectives and destroyed employee morale, can mount to figures of around $500,000 (ed. Adjusted for inflation this equals around $1 million these days) (Lombardo et al., 1988; Hogan, Hogan & Kaiser, in press; Gentry, Mondore & Cox, 2007). Stated in another way, derailment of managers or executives can cost an organization more than 20 times an executives‟ salary, in some cases amounting to millions of dollars (Gentry et al., 2007). Especially lowered 25 Theoretical Background moral and organizational reputation loss is a phenomenon of today‟s recession. And since approximately 30 to 50% of high potential managers and executives derail at least once during their career, organizations should really take this threat serious (Lombardo & Eichinger, 1995). Management derailment on all levels is as important a characteristic as the ones for managerial success, since management derailment can be detrimental to managers‟ work or welfare, their company, as well as those around the managers (Gentry et al., 2007). This is supported by Hogan, who claims that in organizational climate surveys, about 75 percent of working adults report their immediate boss as the cause of most of their work-related stress (Hogan, 2007). Also, bad leaders are seen as a major health hazard since they impose enormous medical costs on society, and degrade the quality of life of many people (Gentry et al., 2007). Derailing Traits Different dimensions were used by researchers in the field of derailing traits. As early as 1983 McCall and Lombardo summarized the ten most common causes of leadership derailment (see table 3). Other dark side personality traits mentioned in literature are for instance Excitability (under pressure managers become volatile and unpredictable), Skepticism (managers are suspicious, argumentative, and full of distrust), Cautiousness (managers will drag their feet and resist change and innovation even when it is clear things need to change), Reserved (insensitive to others, tactless and cold), and Arrogance (refusal to acknowledge failure, errors or mistakes; self centered) (Najar, Holland & Van Landuyt, 2004), but this is by no means an exhaustive summary. For the purpose of our research, we chose to use the five derailing trait dimension, as defined by Benson & Campbell (2007). Benson & Campbell have made a comprehensible overview of the most important dimensions that have been used over the years (see table 5). 26 Theoretical Background Table 5: Summary of HDS dimensions, DSM-IV themes, and GPI derailing leadership dimensions (Benson & Campbell, 2007). The five Derailing Traits from GPI, Ego-centered, Intimidating, Manipulation, Micro-managing, and Passive-aggressive, can be viewed as leadership performance determinants that may result in short-term business successes, but ultimately erode trust and support from those around the manager and lead to long-term interpersonal problems that make it difficult to achieve organizational goals through the collective effort of the group, becoming dysfunctional in the long-term (Benson & Campbell, 2007). The derailing dimensions are explained below. Ego-centered An ego-centered manager sees himself as the center of all, and forms the object and norm of all experience. He or she is primarily concerned with his or her own needs and advantage to the exclusion of colleagues. The behavior of these managers is often labeled as selfish and self absorbed. The needs, feelings and achievements of others are ignored, and the manager‟s personal agenda is disguised as the organizational agenda. Decisions are based on what is best for the ego-centered manager, his or her favorite subordinates, friends and business partners. (“I often wonder how others would manage without me”). Intimidating An intimidating manager manages people based on fear. As a result, employees feel insecure and inhibited to express ideas and ask questions. This will prevent employees from acting in the organization's best interests. Intimidating managers tend to unbalance people around them by making innuendos, not too subtle remarks, and non-playful teasing. They respond to perceived threats by losing control and feel that their outbursts work for them. They tend to use threats, censor communications, dislike accountability and transparency, act by double standards, and criticize others openly and publicly for their poor performance. 27 Theoretical Background Manipulation A manager that manipulates has a tendency to deceive and manipulate peers, subordinates or management for personal gain. He or she has, and uses, the ability to change others‟ feelings and behaviors to get them to think, feel and act as desired. “People can serve as excellent tools for getting what is wanted or needed”. Micro-managing A micro-managing manager seems not to trust his subordinate staff and wants to check and control each and every aspect of a person‟s task or a situation by paying extreme attention to small details, resulting in decrease of productivity. The micromanager monitors and assesses every step and avoids delegation of decisions. Micromanagers see this management style as structured and/or organizational. “Delegation weakens the power of a leader”. Passive-aggressive A passive-aggressive manager tends to show passive, sometimes obstructionist resistance to following through with expectations in work situations. This can manifest itself as learned helplessness, ambiguity, procrastination, stubbornness, resentment, sullenness, sulking or deliberate/repeated failure to accomplish requested tasks for which one is (often explicitly) responsible. It is a defense mechanism coming from an (often suppressed) inability to express anger, and is more often than not only partly conscious. It is a form of covert behavior and veiled or disguised by actions that appear to be normal. Due to their own lack of insight into their feelings the passive aggressive manager often feels that others misunderstand him or, are holding him to unreasonable standards if he is confronted about his behavior. “There are times when I say I will cooperate when I know I will not”. (Robie, Brown & Bly, 2008) 1.2.4. Derailing Personality Traits & Leadership Lately there is quite some coverage of scandals due to leadership failure in the media. Therefore, one would assume that the topic of management/ leadership derailment has a long history of study. However, this is not the case (Benson & Campbell, 2007). As derailment is hard to see separate from leadership, in the afore section much references were already made to the Derailing Traits in relation to leadership. 28 Theoretical Background Derailing characteristics are magnified through the lens of leadership. Everyone has a bright side and a dark side. Yet, derailors are often noted in advance, but frequently overlooked or forgiven because of the individual‟s high potential or because their strengths were highly valued (Denton et. al., 2006). Interpersonal flaws coexist with an individual‟s well developed set of social skills. Managers that Michael Jackson, Chairman and CEO of AutoNation, describes as “High-performing money-makers whose risk profile would keep you up at night”. A study from 2008 shows the dilemma very clearly. The results suggested that high scores on Derailing Traits will typically lead to higher predicted levels of performance (Robie, Brown & Bly, 2008). Most assessments and evaluations of good leadership focus only on successes and positive attributes. The problem is that derailed executives are also usually described as being smart and ambitious individuals, often with outstanding track records and possessing few flaws. Of course only up to the point they fail. Failure is less about lacking the “right stuff” but more about also having the “wrong stuff”. Failed managers usually have what it takes for success but also possess something that potentially can sabotage or derail their careers. Successful managers will however try to mask their derailing traits and others only notice these tendencies after extended exposure to the manager (Hogan, 2001). There is hope though, since management derailment is not a permanent curse. Managers can better their lives and get themselves off the path that causes derailment. They can do so by becoming aware of triggers of potential derailment, such as too much work, major life/ career transition, or boredom. And they should also try and find out whether there is a fit between their personal type or preferences and their current environment (Gentry at al., 2007). It is also suggested that Human Resource professionals will be playing a more prominent role in guiding managers to maintain the correct balance in their livers and thereby preventing the causes of derailment (Denton & Van Lill, 2006). 1.3. Research question Based on the literature research and the evolution and current insights of scientists on the Big Five and Derailing personality traits section in 1.2 we have come to the following research question. 29 Theoretical Background The research objective of this thesis is to acquire insight into possible effects of the New Reality on those Talent Management processes which deal with selecting and assessing (potential) management and leadership talent, based on certain personality traits, within organizations in the Netherlands. In order to realize this objective, we consider the following related research questions: (1) To what extent are the Big Five personality traits deemed desirable, stimulated, and recognized in organizations? Has the significance of these traits in organizations changed due to the New Reality, and is their significance expected to change in the future? (2) To what extent are Derailing Traits deemed undesirable, stimulated, and recognized in organizations? Has the significance of these traits in organizations changed due to the New Reality, and is their significance expected to change in the future? (3) In light of the new reality, have organizations altered the design of their management and leadership profile, and have they changed the selection and assessment processes accordingly? (4) Have Talent Management processes in general been aligned with the New Reality? 1.4. Conceptual Model The following simple and combined conceptual model frames the research objective stated in the previous section (see figure 1). In the top part we examine the perceived importance and use of both the positive personality traits (Big Five) and the negative personality traits (Derailing Traits) in organizations. Also we examine the perceived changes in importance of these traits in light of the New Reality. For the purpose of this research we will refer to the New Reality meaning the new financial reality that emerged due to the recent financial crisis. In the second part, we examine if the financial crisis and the subsequently emerged New Reality have had an influence on the way (potential) management and leadership talents are being selected and assessed. We would like to find out whether the design of management and leadership profiles and the assessments have changed at all. 30 Theoretical Background Figure 1; Conceptual Model 1.5. Expectations of research We hope that the research will at least render a response rate of 10 percent (average response on surveys is 4 to 6 percent). As we are sending the questionnaire to professionals mostly within the HR practice we expect them to be somewhat acquainted with the personality trait theories. Most probably they are familiar with the Big Five and we also expect respondents to have heard of Derailing Traits. Due to their line of work we assume that all respondents have insight in Talent Management processes within their own organization, and therefore insight into any alterations that might have taken place over the last two years. 31 Theoretical Background Important to consider is that the economic crisis and emerging New Reality shook many organizations to their foundations. We have observed that in many organizations this upheaval has lead to less than desirable effects. To name a few: a procrastinating attitude while waiting for things to come, ego-centered behavior combined with keeping the cards close to ones chest, decrease of (true) teamwork and even sabotaging others to get ahead. This is not totally illogical as employees, and managers to no lesser extent, feel uncertain about their position within the organization. Overall, trust is low and the atmosphere daunting. Of course this does not apply to all companies but it is a strong reality at many organizations, even if (top) management does not (want) to see or even deny these developments. We believe the current reality within organization to be important when considering the personality traits. Big Five We expect these five traits being; Openness, Conscientiousness, Extraversion, Agreeableness and Openness to Experience, to be well entrenched in the processes relation to selection and assessment in organizations. The traits represent standards of behavior that we believe will be shared by respondents and be affirmed on organizational level. Due to the situation many organizations find themselves in, we expect to encounter a significant difference between the value that respondents attach to the Big Five personality traits and the actual situation within their organization (the actual level that managers show these traits). Furthermore we anticipate that organizations will find high levels of Big Five personality traits of increased importance in the future as a result of the New Reality in which organizations find themselves. Finally, we assume that the financial crisis has had no significant influence on the importance of the Big Five within organization. This due to the fact that we believe that these traits are already entrenched in organizations and in widely used their selection and assessment procedures. Derailing Traits As stated before, we believe that most respondents will be acquainted with the existence of the theory regarding the Derailing Traits. In this second part of the survey we expect to find a bigger discrepancy between desired behavior and the actual situation. We believe that most organizations will not find many of the five Derailing Traits, that we chose to investigate, desirable. Yet, the low scores on desirability of the Derailing Traits that we 32 Theoretical Background expect to receive might not correspond with the actual situation due to the organizational climate as described earlier. The importance of assessing for the presence of Derailing Traits in (potential) management and leadership talent might be clear to the respondents. Yet on the same notion we expect respondents to reject the very existence of the Derailing Traits within their organizations, which might not reflect the brutal reality. Therefore we expect managers to show relative high levels of the Derailing Traits and we do not really expect HR professionals to already work with the knowledge they have or have recently acquired concerning Derailing Traits, not even after all the media attention on the various causes of the financial crisis. Or in other words, the concepts of Derailing Traits will not yet be used in the selection and assessment of (potential) management and leadership talent. Finally, we anticipate that organizations will find low levels of derailing personality traits of increased importance in the future, and we believe that the financial crisis has had a significant influence on the attention for negative effects of Derailing Traits within organizations. Changes in Talent Management Processes The question that remains is whether companies have altered their Talent Management processes as a result of the financial crisis and / or the New Reality they find themselves in. We expect that only a small amount of organizations will actually have implemented any practical changes. Also, we expect that few organizations have altered their selection or assessment process to include reviews for Derailing Traits: a grim basic assumption. We make this grim assumption because we believe that most organizations are not ready yet for this kind of action concerning their selection and assessment processes for several reasons. Organizations live in a time of survival and in times of survival, development of employees does not have the highest priority. It is as simple as that. In many articles written about Talent Management in the last year it can be read that the crisis is a perfect time to reevaluate a company‟s Talent Management processes and work on increasing job performance. However, we believe that the reality is generally less clear and that many organizations direct their attention and investments elsewhere. There might be a new consciousness concerning Talent Management and its importance, but we do not believe that organizations have put this into practice by altering or aligning their Talent Management processes and/or the personality profiles of their desired (future) leaders to match the New Reality. If anything, we believe that Talent Management is generally neglected at the expense of other activities within organizations in the current New Reality. 33 2. Methodology 2.1. Sample For the research a group of 347 client contacts of the Powerhouse Competing for Talent of the Nyenrode Business Universiteit were sent an invitation to participate in the research by email. In the email, there was a link to the digital questionnaire. The invited contacts all work in an HR/ Talent Management role or general management role. The organizations contacted are in the segments for-profit, not-for-profit, and government, and in all different sectors. Although all companies are Netherlands-based, some are daughter companies of American companies. A list of some of the companies can be seen in Appendix B. A link to the survey was also posted on the website LinkedIn, on two communities of HR professionals. 2.2. Sample Results Of the group of professionals that were approached, 64 filled out the questionnaire, resulting in a response rate of 18.4 percent. An additional 26 responses were rendered through the link to the questionnaire on the website of LinkedIn, bringing the total number of responses to 90. Of these 90 responses, 67 surveys were filled out completely. The remaining 23 responses will be excluded from the data analysis. Concerning the functions of the respondents within their organizations, we can say that more than half (55.2%) are HR/ Talent Management professionals. Just under a quarter (23.9%) of the respondents has a general management role. Most respondents (44.8%) were between 36 and 45 years of age. Almost 70 percent (68.7%) of the respondents has attained a University degree or higher. And the split between male and female respondents was almost fifty-fifty, with a gravitation towards males (58.2%). Most of the organizations the respondents work at belong to the category Business Services (43.3%), followed by Financial Services (14.9%) and Government (11.9%). What is striking is that 23% of the organizations have less than 50 employees and 32 percent more than 5000. These are big numbers at the extremes. This is also reflected in the yearly revenue: 18.9% has less than €1 million, and 46.7 percent over €50 million. 34 Methodology None of the respondents was younger than 25 years of age. The years between 25 till 35 are represented by18%. Most respondents are between 36 and 45 years, followed by 25% in the age of 46 to 55. Only 12 percent was older than 55 years of age. Regarding education, one respondent typifies him or herself as a Chartered Accountant. Of the other respondents 30% has a higher vocational education, 50 percent has completed higher education and 19% has completes a post higher education course. 2.3. Means Literature Research For Chapter 1 „Theoretical Background‟ the databases of the Nyenrode Library were used for the process of locating suitable empirical studies. Searches were performed by using search terms such as “Big Five”, “Five Factor Model”, “Leadership Assessment”, “Derailing Traits”, “Personality Traits”, “Dark side traits” and “Management Derailment”. Further, we specifically looked up researches that were quoted in articles by Barrick, Benson, Costa, Goldberg, Hogan, Judge, McCrae, Robie and Saucier. Survey Design & Measurement The objective of this research is to acquire insight into the possible effects of the New Reality on those Talent Management processes which deal with selecting and assessing (potential) management and leadership talent based on certain personality traits, within organizations in the Netherlands. Related questions are to which extent personality traits used in these selection and assessment processes are recognized as desirable in organizations and if the use of the personality traits has altered over the past two years. And also, do organizations use these personality traits in the design of management- and leadership profiles and have these profiles and other Talent Management processes changed recently or are the excepted to change. In order to acquire insight into these questions, an empirical study was designed. We designed the questionnaire with the theory about personality traits and the New Reality in mind. It must be noted that the questionnaire is not based on existing validated questionnaires. The overall survey was executed to acquire insight in the perception of respondents regarding the current situation regarding the selection and assessment of (potential) management and leadership talent within organizations, therefore a practical study. It was decided to conduct the study among Dutch organizations in the segments for35 Methodology profit, not-for-profit, and government. The reason for this is that a cross-section of Dutch industry will most likely suppress any industry specific trends that would bias the data. In the creation of the questionnaire, attention was paid to the sequence of questions and the overall layout. The former to make sure that the most important information was retrieved in case the respondents would stop filling out the questionnaire; the latter, to lower the error chances. The questionnaire was constructed in the online program Surveymonkey. This enabled us to send it in digital format to possible respondents. The original survey was stated in the Dutch language, a translation can be found in Appendix A. The questionnaire consists of a total of 75 questions divided over four parts: I. Introduction Questions II. Positive Personality Traits; Big Five III. Negative personality traits; Derailing Traits IV. Organization & Policy In part one, respondents are asked to give some information about the company they work for, such as the sector, the amount of employees and an estimation of yearly revenue. Also some personal information was asked, such as gender, age, and role within their organization. Here the Sample group is defined. For part two and three the questionnaire is based on personality traits theory and specifically the theory around the Big Five and Derailing Traits. We used the OCEAN model of the Big Five as defined by Costa and McCrae in 1992. Looking at the Derailing Traits the GPI derailing leadership dimensions theory of Benson and Campbell (2007) was used as reference. Six statements relating to each of the ten personality traits are presented to the respondents: 1. Within my organization the personality trait is seen as desirable / undesirable 2. Within my organization the personality trait is stimulated 3. Within my organization managers and executives show high levels of the personality trait 4. Within my organization it will be increasingly important that managers and executives show high / low levels of the personality 36 Methodology Due to the financial crisis: 5. the personality trait has increased in importance within my organization / the attention for the negative effects of the personality trait has increased within my organization (according to me) 6. the personality trait has increased in importance within my organization / the attention for the negative effects of the personality trait has increased within my organization (according to my organization) These questions are framed using a seven-point Likert scale. The seven points on the Likert scale are stated as Totally disagree, Disagree, Somewhat disagree, Neutral, Somewhat agree, Agree, and Totally agree. The statements that precede the seven-point Likert scales are deliberately stated very positively to provoke the respondents into giving their true opinion. We use the same positive approach in the part about derailing traits. While constructing the questionnaire, we discussed extensively whether this would stimulate socially desirable answers. However, our conclusion was that since the questions concerned the respondents‟ organizations and not themselves or their own personal behavior, the chance of stimulating socially desirable answers was minimal. Finally, part four focuses on the design, organization and recent alterations in policies and Talent management processes within the respondents‟ organizations. Some of the statements in this section are stated as open questions and some by means of the sevenpoint Likert scale. Questions regarding the strategic importance of Talent Management, whether or not the importance has increased over the last two years, on which basis management and leadership talent is identified, whether the Big Five and Derailing Traits are used in selection and assessment processes, who within the organization bears the responsibility of Talent Management, whether profiles and the assessment of management and leadership potential have altered due to the financial crisis and if so, what changes have occurred. Section four ends with the two open questions about what aspects concerning personality traits are underexposed and what extra information respondents would like to share with their organization in order to optimize Talent Management. 37 Methodology Procedure An email was sent to a sample of 347 client contacts of the Powerhouse Competing for Talent containing a link to the online questionnaire. Also, the questionnaire was posted on LinkedIn (www.linkedin.com) on two communities of HR professionals. Instructions for filling out the survey were provided and it was clearly explained what the purpose of the study was. In an introductory letter, signed by Professor doctor Lidewey van der Sluis, it was explained that the Powerhouse Competing for Talent of the Business Universiteit Nyenrode was conducting a research in the field of Talent Management. It was explained that results would enable us to have a better understanding of current state of Talent Management processes in relation the New Reality. The program Surveymonkey kept track of the amount of responses and monitored that respondents filled out the questionnaire only once. This ruled out the possibility of sabotage. Respondents were asked to fill out the questionnaire within three working days after receiving it. After three days a reminder was sent out to those people in the sample that had not yet filled it out. Using SPSS 15.0, the received data was analyzed in several ways. First of all an exploratory factor analysis was conducted. An inventory was made of all answers. Of the statements with a seven-point Likert scale, the mean and standard deviation were calculated. Subsequently, frequency-based tables were developed using ordinal variables (the distance between the scales is not set), as the data consisted of measured perceptions. 38 Results 3. Results In this chapter, the results of the questionnaire will be presented. A total of 90 questionnaires were received after a period of two weeks from the mailing of the initial invitation to participate. Of these, 67 were completed and therefore useful in statistical processing. The results that can be seen in Appendix A, the results should be interpreted as follows. Look for example at the results of question 8. Here it says: N = 67, Minimum = 2, Maximum = 7, Mean = 6.04 and Standard Deviation = 0.960. This means that 67 people filled out the question; the lowest score was 2, tantamount with „Disagree‟; the highest score was 7, tantamount with „Totally agree‟; the average score was 6.04, which means that on average people „Agreed‟ with this statement; and finally, a Standard Deviation below 1 indicates that the responses were quite uniform. In other words, the respondents chose similar answers. Table 6 shows the mean scores of the questions relating to the Big Five and the Derailing Traits in our survey (questions 8 till 57, see appendix A). Desirability Stimulated Show Future Crisis 'respondent' Crisis 'organization' Big Five Openness Conscientiousness Extraversion Agreeableness Emotional Stability 6,04 5.96 5,19 5,10 5,76 5,31 5,66 4,93 4,85 5,12 4,72 4,96 5,10 5,16 4,87 6,27 5,91 4,96 4,67 5,69 4,55 4,70 3,99 3,76 4,66 4,57 4,78 4,15 3,93 4,66 Derailing Traits Ego-centeredness Intimidation Manipulation Micro-managing Passive-aggressive 5,45 5,97 5,10 5,18 5,96 2,67 2,12 2,57 2,94 2,27 3,82 2,87 3,57 4,09 2,99 5,54 5,97 5,45 5,75 5,70 4,06 3,45 3,61 3,55 3,72 4,10 3,52 3,69 3,60 3,72 Table 6: Mean scores All other tables used in the following section discussing the personality traits are frequency based and the variables are ordinal (the distance between the scales is not set). The responses „totally disagree‟, „disagree‟ and „somewhat disagree‟ are grouped together as „disagree‟. The responses „somewhat agree‟, „agree‟ and „totally agree‟ are grouped together as „agree‟. The answer „neutral‟ is mentioned separately. The total sum of „disagree‟, „neutral‟, and „agree‟ make a hundred percent. 39 Results Positive Personality Traits: “Big Five” Openness Disagree Within my organization the personality trait is seen as desirable. 4 Within my organization the personality trait is stimulated 9 Within my organization managers and executives show high levels of the personality 23 trait Within my organization it will be increasingly important for managers to show high levels of the personality trait in the future. Due to the financial crisis the personality trait has increased in importance within my organization; According to individual respondent 28 At organizational level 17 Neutral 3 9 9 Agree 93 82 68 3 97 22 32 50 51 Conscientiousness Disagree Within my organization the personality trait is seen as desirable. 4 Within my organization the personality trait is stimulated 6 Within my organization managers and executives show high levels of the personality 16 trait Within my organization it will be increasingly important for managers to show high 2 levels of the personality trait in the future. Due to the financial crisis the personality trait has increased in importance within my organization; According to individual respondent 17 At organizational level 14 Neutral 2 11 12 Agree 94 83 72 9 89 22 27 61 59 Extraversion Disagree Within my organization the personality trait is seen as desirable. 8 Within my organization the personality trait is stimulated 16 Within my organization managers and executives show high levels of the personality 17 trait Within my organization it will be increasingly important for managers to show high 83 levels of the personality trait in the future. Due to the financial crisis the personality trait has increased in importance within my organization; According to individual respondent 29 At organizational level 24 Neutral 15 24 9 Agree 77 60 74 15 68 41 46 30 30 Agreeableness Disagree Within my organization the personality trait is seen as desirable. 88 Within my organization the personality trait is stimulated 12 Within my organization managers and executives show high levels of the personality 9 trait Within my organization it will be increasingly important for managers to show high 32 levels of the personality trait in the future. Due to the financial crisis the personality trait has increased in importance within my organization; According to individual respondent 37 At organizational level 28 Neutral 12 15 15 Agree 76 73 76 28 50 37 45 26 27 40 Results Emotional Stability Disagree Within my organization the personality trait is seen as desirable. 3 Within my organization the personality trait is stimulated 12 Within my organization managers and executives show high levels of the personality 17 trait Within my organization it will be increasingly important for managers to show high 4 levels of the personality trait in the future. Due to the financial crisis the personality trait has increased in importance within my organization; According to individual respondent 18 At organizational level 13 Neutral 11 19 24 Agree 87 69 62 12 84 26 29 66 58 Ego-centeredness Disagree Within my organization the personality trait is seen as undesirable. 12 Within my organization the personality trait is stimulated 76 Within my organization managers and executives show high levels of the personality 49 trait Within my organization it will be increasingly important for managers to show low 11 levels of the personality trait in the future. Due to the financial crisis the attention for the negative effects of the personality trait has increased in importance within my organization; According to individual respondent 32 At organizational level 25 Neutral 5 14 10 Agree 83 10 41 12 77 30 37 38 38 Intimidating Disagree Within my organization the personality trait is seen as undesirable. 12 Within my organization the personality trait is stimulated 85 Within my organization managers and executives show high levels of the personality 69 trait Within my organization it will be increasingly important for managers to show low 4 levels of the personality trait in the future. Due to the financial crisis the attention for the negative effects of the personality trait has increased in importance within my organization; According to individual respondent 45 At organizational level 39 Neutral 3 6 9 Agree 85 9 22 9 87 32 49 23 22 Manipulating Disagree Within my organization the personality trait is seen as undesirable. 23 Within my organization the personality trait is stimulated 73 Within my organization managers and executives show high levels of the personality 46 trait Within my organization it will be increasingly important for managers to show low 10 levels of the personality trait in the future. Due to the financial crisis the attention for the negative effects of the personality trait has increased in importance within my organization; According to individual respondent 36 At organizational level 33 Neutral 7 12 15 Agree 70 15 39 11 79 40 39 24 28 Negative Personality Traits: “Derailing Traits” 41 Results Micro-managing Disagree Within my organization the personality trait is seen as undesirable. 14 Within my organization the personality trait is stimulated 62 Within my organization managers and executives show high levels of the personality 36 trait Within my organization it will be increasingly important for managers to show low 3 levels of the personality trait in the future. Due to the financial crisis the attention for the negative effects of the personality trait has increased in importance within my organization; According to individual respondent 41 At organizational level 39 Neutral 15 15 17 Agree 71 23 47 15 82 34 40 25 21 Passive-aggressive Disagree Within my organization the personality trait is seen as undesirable. 3 Within my organization the personality trait is stimulated 83 Within my organization managers and executives show high levels of the personality 64 trait Within my organization it will be increasingly important for managers to show low 5 levels of the personality trait in the future. Due to the financial crisis the attention for the negative effects of the personality trait has increased in importance within my organization; According to individual respondent 36 At organizational level 36 Neutral 7 7 10 Agree 90 10 26 15 80 40 40 24 24 Organization & Policy In this section we will touch upon those results that are of influence on, or directly related to the research objective. The remaining results can be found in Appendix A. (Q58) Respondents find Talent Management of great strategic importance. 6,4 6,21 6,2 6,19 6 5,82 5,8 5,6 5,42 5,4 5,2 5 According to me According to Talent Management/ HR According to Linemanagement 42 According to Topmanagement Results (Q59) The majortiy of respondents believe that the importance of Talent Management in their organization has increased over the last two years. 70,0 59,7 60,0 61,2 58,2 50,0 44,8 47,8 38,8 40,0 34,3 32,8 30,0 20,0 7,5 10,0 7,5 4,5 3,0 Accourding to me According to Talent Management/ HR According to Linemanagement increased styed the same decreased increased styed the same decreased increased styed the same decreased increased styed the same decreased 0,0 According to Topmanagement (Q61) Within 66 percent of the organizations the Big Five personality traits are not used while assessing management and leadership potential. If organziations do pay attention to the Big Five personality traits, Emotional Stability receives the most attention (40%) and Agreeableness the least (23%). 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% Em ot io 43 No na lS ta bi lit y en es s Ag re ea bl on Ex tra ve rs i en t io us ne ss Co ns ci O pe nn es s 0,0% Results (Q62) Within 78 percent of the organizations the Derailing Personality Traits are not used while assessing management and leadership potential. Within organziations that do pay attention to the Derailing Traits, Passive-aggressive behavior receives the least attention (11%). om No e Pa ss i icr ve -a gg re ss iv an ag in g n M M an ip ul at io id at io n In tim Eg oce nt er ed ne ss 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% (Q 68) Within 80.6 percent of the organizations the profile of management and leadership talents have been altered to reflect a more desirable profile due to the financial crisis. (Q69) The most important changes included the adjustment of; competencies, leadership accountability, decision making, focus on positive personality traits and more business sense eg. business development. (Q 70) Within 79.1 percent of the organizations the evaluation of management and leadership talents have been changed since de the start of the financial crisis. (Q71) The most important changes in the evaluation included; stronger task orientation, more focus on performance and results, and stricter profiles. 44 Results (Q72) Within organizations the following alterations to Talent Management processes have taken place due to the financial crisis: 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% Other Budgets have been adjusted Content of leadership programs Number of assessments of managers Method of assessment of current 0,0% (Q73) Which alterations have taken place? (grouped results) 73.a) The method of assessment of current employees on top functions: Now assessments are conducted, as opposed to no assessments before Hiring of an external agency Stricter review of talents and on results People stay longer in a certain function New profile, added competencies and assignment/ work with „must haves‟ on the basis of experience and competencies 73.b) the number of assessments of new hires: Amount of assessments has increased enormously Less new hires / less nr. of assessments Less assessments (because of the costs / is not standard anymore) 73.c) the number of assessments of managers within the organization: There were less management roles available More assessments take place These decreased because of less new hires Less people attended leadership programs, those programs did not change though 45 Results 73.d) the requirements of new hires: Focus on people that make a difference; more attention for leadership qualities No concessions concerning the desired profile / has become stricter Added competencies / specific knowledge is demanded versus generic profile 73.e) the content of leadership programs: Adjusted on finance, risk management, resilience, trust Focus on management in times of crisis and personal leadership Are more focused on customer-orientation, both internal and external More focused on desired behavior, capabilities and decision making New Management Development program is focused on practice These trainings have been cancelled 73.f) the content of trainee program: New trainee program has been developed in preparation of economic recovery 73.g) budgets have been adjusted: more or less budget is available: Less budget is available (6) Budget for education, development, and recruitment have diminished to 0 (2) Less, but leadership programs have more participants More (2) 46 4. Discussion 4.1. Results Research Questions In this chapter we will answer the research questions stated in Chapter 1. For this purpose we have interpreted the results of our research. Research Question 1: To what extent are the Big Five personality traits deemed desirable, stimulated, and recognized in organizations? Has the significance of these traits in organizations changed due to the New Reality, and is their significance expected to change in the future? Openness: Respondents agree on the fact that Openness is a desirable personality trait within their organization (93%) and that in the future this trait will become more and more important (97%). The trait is stimulated however managers are rated relatively low on the actual high levels of Openness, 68% of the respondents agree that managers have a high score. Scores relating an increased importance of Openness due to the financial crisis both show more or less the same mean (4.55 and 4.57). The financial crisis has led to an overall increased importance of the personality trait Openness within organizations, 50 percent „agrees‟ that there is a positive relationship. Conscientiousness: Respondents agree on the fact that Conscientiousness is not only desirable (94%) but also highly stimulated (83%) within their organizations. Managers are rated relatively low on the actual high levels of Conscientious behavior, 72 percent agree that managers have a high score. At same time respondents reckon that this personality trait will become increasingly more important in the future, with the highest score of all personality traits (89%). The financial crisis has led to an increased importance of the trait Conscientiousness within organizations, 60 percent „agree‟ with the statement. 47 Discussion Extraversion: Overall, the personality trait Extraversion scores relatively high values on all six questions, yet scores lower in comparison to traits. A deviation is also found looking at the Standard Deviation which are more substantial here for all answers and also in comparison to the other Big Five traits. Thus, respondents are not totally on the same wavelength where Extraversion is concerned looking at the answers on the first four statements. Also, when looking at the statement that Extraversion has increased as a result of the financial crisis the answers are spread. However, overall it can be stated that due to the financial crisis Extraversion has not increased substantially in importance as only 30 percent agrees with the statement. Agreeableness: The statements about desirability, stimulation, and managers show high levels are all rated around a „agree‟ and „somewhat agree‟ (75% overall). However, the question about the increased importance of Agreeableness in the future stands out with only 50 percent of the respondents agreeing that the importance will increase in the future. So do the answers to the statements about the increasing importance of the personality trait due to the crisis were the center of gravity lies both times at „neutral‟. Overall, as with Extraversion, it can be stated that due to the financial crisis Agreeableness has not increased substantially in importance. It seems that there is some discrepancy between what on one side is deemed important and desired, and on the other hand has changed in importance. Emotional Stability: Respondents „agree‟ on all the questions that the trait Emotional Stability is a desirable (87%), it is stimulated within the organization (69%), and that in the future this trait will become more and more important (84%). Current managers demonstrate high levels of Emotional Stability, yet compared to other traits the score is relatively low, with 62 percent the lowest of all Big Five traits. Scores relating to an increased importance of Emotional Stability due to the financial crisis both have exactly the same mean (4.66). However the gravity point differs, as far as the individual responded is concerned, 66 percent „agrees‟ that due to the crisis Emotional Stability has increased in significance while looking at the organization level, 58 percent is in agreement. Overall all Big Five personality traits are deemed desirable within the corporate world with high scores between 76 and 94 percent. 48 Discussion All traits are stimulated within organizations (60 – 83%), where Extraversion scores the lowest (60%). Managers show high levels of the Big Five (62 – 76%) where Emotional Stability scores the lowest and Agreeableness the highest. For all traits it is said that in the future it is important that managers and executives in organizations show high levels of the Big Five personality traits. Agreeableness stands out with the lowest scores of only 50 percent and Openness for its high score of 97 percent. Finally, the attention for the traits Openness, Conscientiousness and Emotional Stability has increased due to the financial crisis. The attention for the traits Extraversion and Agreeableness has not altered due to the financial crisis. Research question 2: To what extent are Derailing Traits deemed undesirable, stimulated, and recognized in organizations? Has the significance of these traits in organizations changed due to the New Reality, and is their significance expected to change in the future? Ego-centeredness: There is quite some support as for the statement that Egocenteredness is seen as an undesirable trait within organizations (83% „agree‟ with an average mean but high Standard Deviation). Consensus is also found in the answers if Egocenteredness is stimulated by the organization, only 9 percent „agree‟ with this statement. The statement that within the respondents‟ organizations, managers show high levels of Ego-centeredness is answered very divers. The minimum score was „totally disagree‟, the maximum score was „totally agree‟ and the gravity point was „slightly agree‟ with a relatively high Standard Deviation of 1.714, indicating that the opinions concerning this statement varied substantially. Consensus again that in the future a low level of Ego-centeredness is will be of increasing importance, 43% „agree‟ with this statement. We conclude that overall the financial crisis has not led to a overwhelming increased attention to the negative effects of Ego-centeredness but scores „neutral‟ with advocates at both sides; 29 percent „disagree‟ and 38 percent „agree‟. Intimidation: An overwhelming number of respondents agree on the fact that Intimidation is an undesirable personality trait (85% „totally agree‟ but note that 12% 49 Discussion disagree is some manner) and that in the future it will become increasingly important that managers show low levels of Intimidation (87% „agree‟). The results show that 68 percent of respondents „disagree‟ with the statement that managers in their organizations show high levels of Intimidation. Respondents do seem to agree on the fact that the attention for the negative effects of Intimidation has not really grown due to the financial crisis as most have answered „neutral‟ or on the „disagree‟ side. Manipulation: More or less the same results as with Intimidation are found here. The undesirability of the personality trait scores 70 percent on „agree‟. The results show that on average respondents „disagree‟ with the statement that managers in their organizations show high levels of Manipulation (46% „disagrees‟ but note that a total of 39 percent answers between „slightly agree to totally agree‟). High is the support for the statement that in the future it will become increasingly important that managers show low levels of Manipulation (79% „agrees‟). Respondents do seem to agree on the fact that the attention for the negative effects of Manipulation has not really grown due to the financial crisis as most have answered „neutral‟ or on the „disagree‟ side. Micro-managing: Again, most support is found for the statements that in the future it will become increasingly important that managers show low levels of Micro-managing in the future, 82 percent „agrees‟. The results also show that current managers do actually show high levels of Micro-management (47% „agree‟). The trait is certainly not encouraged by organizations (except for 23%). Respondents believe that there is no special attention for the negative effects of this personality trait due to the financial crisis. Passive-aggressive: Also for this derailing trait goes that an overwhelming amount of respondents agree on the fact that Passive-aggressive behavior is undesirable (90%) and that in the future it becomes increasingly important that managers show low levels of Passive-aggressive behavior (80%). Of the respondents 64 percent believe that management in their organization show low levels of Passive-aggressiveness. The influence of the financial crisis on the attention for the negative effects of this trait is not strong. Only 24 percent of the respondents believe there exists a relationship whereas 40 percent answers „neutral‟, and another 36% believe the crisis has had no influence. 50 Discussion Overall, respondents agree that the five mentioned Derailing Traits are deemed undesirable within their organizations with high scores on „agree‟ ranging from 70 – 90 percent. Derailing Traits are hardly to not stimulated at all within organizations, averaging are around 10 percent. Only Micro-managing stands out with 22 percent. The answers to the statement if managers show high levels of Derailing Traits vary quite a bit. According to 24 percent of the respondents, managers in their organizations show high levels of Intimidation and Passive Aggressiveness. The traits Ego-centeredness, Manipulation and Micro-managing score substantially higher (respectively 41, 39, and 47%). Moving on however, respondents believe that for all Derailing Traits it is important that in the future managers and executives in organizations show low levels of the Big Five personality traits (77 – 82%). Overall, the attention for all five mentioned Derailing Traits has not really increased due to the financial crisis, scores lie between 21 and 25 percent where Ego-centeredness stands out a little with 38 percent. In comparison to the Big Five, Derailing Traits evoke more varied responses, as can be seen from the relative high Standard Deviations. Also 77.6 percent of the respondents indicate that the assessments of management and leadership potential do not include any elements of Derailing Traits. The rest indicates that Micro-managing (16.4%), Intimidation, Manipulation (both 14.%), Ego-centeredness (13.4%), and Passive-aggressive (11.9%) are indeed tested. Research Question 3: In light of the new reality, have organizations altered the design of their management and leadership profile, and have they changed the selection and assessment processes accordingly? A mere 19.4 percent of the respondents indicate that their organization has changed the management and leadership profile in light of the New Reality. This leaves over 80 percent of the organizations that did not change the profile (yet). Respondents are very unanimous in their ideas about where the responsibility for decisions about desired management and 51 Discussion leadership profiles lies: 60 percent say top management, followed by 20 percent that say HR/ Talent Management. For the group that indicated that their organization have indeed changed the management and leadership profiles, this is in line with reality, since it was indicated that the changes had been made indeed mainly by top management, HR and the Board of Directors. Respondents that reported that their organization indeed has changed the management and leadership profiles, indicate that the profiles have become broader, including elements such as the ability to make decisions, accountability, and performance related measures. The tools used to monitor and assess management and leadership talents are HR tools and methods (47,8%), Talent Management system, and Performance Management system (both 37,3%). The final category „Other‟ (23,9%) mainly consisted of personal assessments of HR professionals or line managers. Another striking fact is that line management, even though they seem the ones to be in closest contact with the talents, have very limited responsibility in deciding on the profile of desired management and leadership talent. The data leads us to conclude that line management is merely executing what is decided on a higher level. Research Question 4: Have Talent Management processes in general been aligned with the New Reality? Almost 21 percent of the respondents indicate that the evaluation of management and leadership talent has changed within their organization in light of the New Reality. Again, it was mainly top management and HR/ Talent Development that altered these evaluations. The changes consisted mainly of stricter performance related evaluations. In almost 30 percent of the respondents‟ organizations the budgets for Talent Management activities have been adjusted. Most respondents indicate that the budgets for education, development, recruitment, and leadership programs have decreased, and in a couple instances even totally dissolved. A few respondents indicate though, that budgets have increased. 52 Discussion Over 20 percent of the respondents indicate that the requirements for new hires have changed, and that the content of leadership programs has changed. The selection of new hires has become stricter, in a sense that they seem only to be hired when they explicitly contribute to the continuation of the organization. This means they either have to bring aboard certain specialist knowledge or capabilities in making the organization more lean and transparent. This is in line with the changes in the leadership programs. The participants of these programs are also trained on customer-orientation, transparency and personal leadership. Only in 10 percent of the respondent organizations has the nature of the assessments of both new hires and current employees changed. Some organizations nowadays have become stricter in their assessments, while in other organizations fewer assessments take place, because of a decreased amount of new hires and movement within the organization, or because of restricted budgets. 4.2. Linking Results to expectations First and foremost, we expected the New Reality to have an impact on organizations. More specifically, on the way management and leadership profiles are designed and the talents are assessed. From our research we conclude that the vast majority of the respondents agree that over the past two years the importance of Talent Management in general has increased. The desired management and leadership profiles have altered due to the financial crisis. Also, the evaluation of management and leadership talents has changed. Though we have only limited insight in the exact changes. Overall, assessments have become stricter and there is more focus on task-related competencies. Considering the fact that the Big Five is generally seen as a standard for personality trait tests, we expected that the importance of these traits was not really affected by the New Reality. It turned out this was not the case. In fact the attention for three of those positive personality traits has increased. In particular the attention for the traits Openness, Conscientiousness, and Emotional Stability has increased in light of the New Reality. The attention for the traits Extraversion and Agreeableness has remained neutral. This does not totally coincide with the literature linking the Big Five to leadership as Extraversion is the 53 Discussion trait most correlated to leadership and during our research we also found that managers and executives showed high levels of Extraversion. In light of the New Reality, we expected the importance of Derailing Traits to have increased. However, much to our surprise, this was not the case. It seems that these traits have not yet been incorporated in Talent Management processes, even though the Derailing Traits theory is quite established. Nevertheless, respondents recognize underline the importance of Derailing Traits. These traits are seen as highly undesirable, but are not yet dealt with. Finally, we expected the Talent Management processes to have changed. In fact, since organizations seem to be in survival mode, we presented the grim expectation that Talent Management programs would have to cope with decreased budgets and a lack of interest from top management, due to more important challenges. The results show that Talent Management is regarded to be of strategic importance. Nevertheless, theory and practice are far apart, since in most cases budgets are cut, development programs are killed, and the expectations of talents have increased. 4.3. Recommendations for Further Research Recommendation for further research could be many as so much is still unknown about personality traits and to the why some individuals show certain behavior and why others do not. Furthermore the influence of the crisis is still under exposed. We hope that our thesis and discussion will be noticed and that it may serve as a starting point for further research. For one, it would be interesting to determine in which situations personality traits become under pressure. It is known that under stress an individuals‟ behavior can change. Little research has been done to personality traits and crisis situations. Only some information is available of the behavior we actually see, the top of the iceberg. However, what kind of behavior and why is hidden under water is largely unknown. Leadership behavior in crisis times for instance. We touched upon it in this thesis but more research into the effects of context and culture of an organization versus the nurture or disapproval of personality traits is desirable. Do 54 Discussion organizations practice what they preach? Or do they secretly endorse certain counterproductive behavior that could be gathered under Derailing Traits. DT. This is especially import as the culture can enhance or counteract certain behavior as currently the lion share of most talent development takes place on the job. A second item we touched on are the differences between the sexes. The reasons for women to derail are different than those for the men. Women tend to score higher on both Agreeableness and Neuroticism (Big Five) and tend to be overly ambitious (potential derailor) and men score high on Extraversion and Conscientiousness (Big Five) and tend to have greater problems with relationships and handle poor performance badly (potential derailors). Especially in the Netherlands this is of importance as in this society the differences tend to be larger. It puts women in a back seat position as the traits Extraversion, low on Neuroticism and Conscientiousness are the strongest predictors of career success. Furthermore women are more prone to be overly ambitious to make it in a “mans world”, a contemporary discussion that has not been solved yet within the Netherlands. Thus when building assessment tools we suggest that these findings should be incorporated, further researched so assessment tools could be adjusted. To further on the current research at hand, if organizations have not altered their Talent Management processes or even cut spending in the area the question can be asked why organizations have done this. Especially as Talent Management is deemed of strategic importance to many. Overall, we have done a research into the „what‟, „how‟ and „perception‟. The Next step would be looking at the „whys‟. A whole new area of research all together. 4.4. Limitations A number of limitations pertain to this study. First of all, we would like to mention that the time provided for our research was limited. As a result, the used questionnaire is not validated as is common in scientific studies. We have tapped our own creativity in constructing a questionnaire. Secondly, we would like to draw attention to the fact that, though not all-embracing, the Big Five represents an excepted taxonomy of personality characteristics. The Derailing 55 Discussion Traits, as defined by McCrae & Costa (1990) that were used in our research to contrast the Big Five. Though there is more and more support for the legitimacy of Derailing Traits, it is impossible to treat them as a scientific equal measure of personality traits as the Big Five. Furthermore, even though we ourselves assessed the chances to be minimal, the research may be biased by the fact that respondents were inclined to give socially desirable answers. In our opinion the chances of the latter to happen would increase if the questions would have inquired about an individual‟s own behavior instead of assessing the perceptions of respondents. Since most research in the field of derailing traits has been among management levels, we might wrongfully have neglected the consequences of derailment among non-management employees. Logic dictates however a focus on management levels, as the effects of derailment tend to be bigger and thus costlier. For the purpose of this research, we have drawn conclusions about the desirability of testing potential managers and executives on their tendencies to derail. This research has focused on both positive and negative personality traits as a predictor for (future) leadership and management potential, and possible derailment. All other factors that might influence the success of potential managers and executives, such as general mental ability (intelligence) and personal fit with the organization, lay mostly outside the scope of this research, although we did touch up them in the thesis for clarification purposes. As another limitation, we would like to mention that some manager may be very skilled in hiding their derailing traits. Especially in the case of a manager or executive that displays passive-aggressive behavior it can take quite a while before this becomes clear to HR/ Talent Management professionals. It may thus be interesting to further research the extent to which hidden derailment influences the success of organizations. This study has been limited as to the „whats‟ and „hows‟ and the perception, not the „why‟s‟. That is a whole new area of research all together. Finally, we belief that the focus on organizations only located in the Netherlands may have influenced the results of the research. Though this influence of national culture may also 56 Discussion have been slightly mitigated by the fact that the participating organizations are of mixed origin. 57 Conclusion 5. Conclusion 5.1. Research Results Big Five and Derailing Traits The Big Five have become a standard in testing positive personality traits and form a good starting point to have a closer look at leadership (substantial relation between the Big Five and leadership). For all traits it is said that in the future it is important that managers and executives in organizations show high levels of the Big Five personality traits. Agreeableness stands out with the lowest scores of only 50 percent and Openness for its high score of 97 percent. It is concluded that the attention for the traits Openness, Conscientiousness and Emotional Stability has increased due to the financial crisis. After having reviewed the literature on the Big Five we strongly recommend to keep using the Big Five in the future when assessing for management and leadership potential. Having said that, the Big Five as such might be too broad to offer all conclusive answers. In recent years researchers in the field of personality traits and assessment have recognized that dark side personality traits deserve attention as well, and should not be regarded as simply low scores on the Big Five. For instance, traits and facets that are generally seen as contributors to leadership success include extraversion, conscientiousness (achievement), agreeableness, self confidence, diplomacy and integrity. A lack of some of these traits or an extreme preference can be problematic and potentially lead to derailment. Thus, again also looking at the substantive body of literature evidence, we conclude that assessments on the basis of the Big Five, can or even better, should be complemented by the Derailing Traits dimensions. This is not in line with the responses of on questionnaire, where it is stated that the attention for all five mentioned Derailing Traits has not really increased due to the financial crisis. Furthermore, from the results of our survey we learn that in comparison to the Big Five, Derailing Traits evoke more varied responses, as can be seen from the relative high Standard Deviations. Even though some derailing personality traits are seen as only slightly undesirable, there is strong support for the fact that low levels of these derailing traits become more important in the future. 58 Conclusion Including the Context However, complementing management and leadership assessment with Derailing Traits is not enough. When testing on the presence of personality traits it would be wiser to test at facet level where the facets are linked to the existing context or the desired context by the organization ordering the assessments. After all, studies do show that successful managers are implicated with, and often depend upon organizational structure (do they possess the right traits to flourish in this particular environment?) and organizational success (are they able and allowed to flourish in this particular environment?). Context can relate to dynamic or stable work environments. Context is also relevant when considering present management and leadership potential in an organization. Many situational factors exist that may moderate the validity of personality in predicting leadership or leadership derailment. After all, many performance problems are related to changed aspirations and goals of the individual or to a change of direction initiated by the organization or professional circumstances. An example of the latter is the recent financial crisis. In the past we have seen that the context allowed managers to derail; the world was their playground and recent crisis was caused by people. Today, in the days of the New Realty, other contextual changes might cause derailing behavior as these are challenging times for leaders to live up to the organization‟s expectations. Personality traits contribute to leadership effectiveness. The estimates range between 45 to 80%, but as to the exact extent researchers disagree. These are very high numbers, especially when considering that loads of information can be retrieved beforehand by using well adjusted assessment tests. These are all compelling reasons to test future and present managers in an organization. This will pay off because, if and when (potential) derailors understand their behavior and the impact this behavior has on the organizational effectiveness, this can help them avoiding to derail. There might be limits to what individuals are able to do about their causes to fail. Nevertheless, if people are made familiar with their tendencies they are better prepared to counteract these effects. For instance, the behavior of clinging on to past habits is usually very counterproductive but the individual will mostly be unaware of the associated negative side effects. People can actually change if they are willing to. Intervention programs can change behavior patterns. Thus, the traits one possesses are not carved in stone. 59 Conclusion But the pendulum also swings the other way. A leaders‟ traits can also change the situational context! Therefore having a „bad apple‟ working within a team can actually change the work environment. Moreover, traits that make for successful leaders are likely to be the same traits that help companies to be successful in reaching their goals. Therefore, an organization will always be better off assessing and selecting management and leadership talent that possess the right traits for the context of an organization, whether these traits should be conscientiousness, openness or high on extraversion. This makes for more compelling reasons for companies to assess on both sets of personality traits when individuals join the organization but also when already employed by the organization. The latter also because managers are quite skillful in hiding their derailing traits and others (mostly the subordinates are the first to notice!) only notice these tendencies after extended exposure to such a manager. Human Resource professionals and especially those working within the field of Talent Management will have to play a more prominent role in guiding new hires and managers to maintain the correct balance in their lives. Healthy balanced minds are a prerequisite for good leadership and therefore organizational success. And it will decrease the potential of derailment. A very useful tool in doing this successfully is the tool of assessment. This assessment can be done while entering the company but also for present employees, managers and leaders. In addition, choice of assessment methods should be aligned with the overall aims of the assessment and management wishes. This could either be assessing personality once when joining the organization but can also be used in development programs (such as critical evaluation or problem solving) and or support the development of task-related competencies related (such as particular communication or team skills). We also conclude that the assessment can only be successful when there is a clear description of the desired management and leadership profile. However, even a very comprehensive profile of an individual‟s personality traits can only be considered a partial description of their personality. Therefore we strongly recommend building in the factor Context and, if possible, the differences between the sexes while assessing on both the positive and dark side personality traits. Yet at the same time, we recommend to use other (assessment) tools to evaluate an individual‟s capabilities and fit with a certain job-role and or organization. In the end, when measuring traits there is really no way getting around both the Big Five and Derailing Traits anymore. 60 Conclusion 5.2. Managerial Implications Managers and executives in today‟s organizations should be able to work well with people across all levels and be willing and able to change their management styles when needed. Such a leader must have empathy and a high degree of self-management. It is hard though, to just recognize the ones that have a tendency to derail. Not only should HR/ Talent Management play an active role in facilitating all their organization‟s employees to have a good work-life balance, they should also recognize derailment tendencies of managers in an early stage, preferably before it really happens. Both successful and derailed executives are bright, are identified early and have outstanding records of achievement, have few faults, are ambitious and willing to sacrifice. We would therefore recommend organizations to also test candidates for management- and leadership roles to be subjected to Derailing Traits tests, such as provided by Hogan Assessment Systems (Hogan, 2007b). Apart from possible large financial savings, this will also lead to higher levels of employee satisfaction. Even though discharging managers is the most common way of handling situations of failure, this may not be the best solution. When recognized early, managers and executives that are on the path of derailment can still be saved. And with them, all the money the organization initially invested in the training of the particular executive, and his or her potential successor. 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A Description of the DSM-III-R and SDSM-IV Personality Disorders with the Five Factor Model of Personality. Washington D.C.: American Psychological Association. Wolfe, I.S., (2008, October). Shedding light on the Dark Side of Personality, Business2Bussiness. 65 7. Appendices Appendix A: Questionnaire and Results Thank you for participating in this research survey concerning the influence of the financial crisis on Talent Management processes and more specifically, on the criteria involved when recruiting, selecting and developing management and leadership talent and the associated desired profile. This survey consists of four parts and will take a maximum of 15 minutes of your time. Please indicate to which extent you agree with the following statements or to which degree these statements apply to your organization. In the interest of the research we ask you to first answer a few general questions. Your answers will be treated with confidentiality. I – INTRODUCTION QUESTIONS Question 1) What type of function do you hold? Talent management / HR Linemanagement Topmanagement Other 20,9% 6,0% 55,2% 17,9% „Other‟ consisted of: Coach Coach/ Sr. Consultant Commercial Manager Corporate Finance Professional Top manager HR Manager France & Benelux Line manager and Talent Management/ HR 66 Manager Management Development Organization Consultant Senior Consultant/ Specialist Strategy Consultant Trainer/ Coach/ Consultant Psychologist Appendices Question 2) In what line of business do you work? 50 Percent 40 30 43,3% 20 10 14,9% 11,9% 9,0% 9,0% 6,0% 0 Retailtrade 3,0% 1,5% Financial Services Industry IT 1,5% Not for profit „Other‟ consisted of: Energy Logistics & Transport Education & Research Pharmaceutical industry Transport „As broad as possible‟ 67 Government Technical Business Services Other Appendices Question 3) How many employees does your organization consist of? Question 4) What is your organization’s yearly turnover? 60 50 Percent 40 30 55,2% 20 10 14,9% 10,4% 6,0% 6,0% 4,5% 3,0% 0 Less than € 1 €1 to €5 million million €5 to €10 million €10 to €20 million 68 €20 to €30 million €30 to €50 million More than €50 million Appendices Question 5) What age bracket applies to you? Question 6) What is your highest completed education? 50 Percent 40 30 49,3% 20 29,9% 10 0 19,4% 1,5% Other Higher Vocational Education (HBO) Higher Education (WO) „Other‟ consisted of: Chartered Accountant 69 Higher Education (WO+) Appendices Question 7) What is your gender? Male Female 41,8% 58,2% 70 Appendices II - POSITIVE PERSONALITY TRAITS ‘THE BIG FIVE’ Questions 8 - 12: OPENNESS Openness definition: individuals that score high on the personality trait Openness possess a inquisitive nature / have interests in a broad range of subjects and a lively fantasy, and are open to new experiences. Descript ive Statistics N Within my organiz ation the pers onality tr ait OPENNESS is s een as des irable. Within my organiz ation the pers onality tr ait OPENNESS is s timulated. Within my organiz ation Manager s and Ex ec utives s how high lev els of OPENNESS. Within my organiz ation it will be inc reasingly important that Managers and Ex ec utiv es s how high lev els of OPENNESS. Due to the financ ial c risis the personality trait OPENNESS has inc reas ed in importance within my organiz ation (acc ording to me) . Due to the financ ial c risis the personality trait OPENNESS has inc reas ed in importance within my organiz ation (acc ording to my organiz ation). Valid N (listwise) Minimum Max imum Mean Std. Deviation 67 2 7 6,04 ,960 67 2 7 5,31 1,339 67 1 7 4,72 1,277 67 4 7 6,27 ,750 67 1 7 4,55 1,743 67 1 7 4,57 1,530 67 Openness 60,00% 50,00% Totally disagree 40,00% Disagree Somewhat disagree 30,00% Neutral Somewhat agree Agree 20,00% Totally agree 10,00% 0,00% Q1 Q2 Q3 Q4 Q5 71 Q6 Appendices Questions 13 - 17: CONSCIENTIOUSNESS Conscientiousness definition: individuals who score high on the personality trait Conscientiousness are careful, serious, responsible, orderly and are well organized and want to achieve set goals. D escriptive Stat istics N Within my or ganiz ation the pers onality trait C ON SC IENTIOU SN ESS is s een as desirable. Within my or ganiz ation the pers onality trait C ON SC IENTIOU SN ESS is s timulated. Within my or ganiz ation Managers and Ex ec utiv es s how high lev els of C ON SC IENTIOU SN ESS. Within my or ganiz ation it w ill be inc reas ingly important that Managers and Ex ec utiv es s how high levels of C ON SC IENTIOU SN ESS. D ue to the financ ial c risis the pers onality trait C ON SC IENTIOU SN ESS has inc reas ed in importanc e w ithin my organiz ation (ac c ording to me) . D ue to the financ ial c risis the pers onality trait C ON SC IENTIOU SN ESS has inc reas ed in importanc e w ithin my organiz ation (ac c ording to my organization) . Valid N (lis twis e) Minimum Max imum Mean Std. Dev iation 67 3 7 5,96 ,960 67 3 7 5,66 1,095 67 2 7 4,96 1,284 67 3 7 5,91 1,026 67 1 7 4,70 1,528 67 1 7 4,78 1,555 67 Conscientiousness 60,00% 50,00% Totally disagree 40,00% Disagree Somewhat disagree 30,00% Neutral Somewhat agree Agree 20,00% Totally agree 10,00% 0,00% Q1 Q2 Q3 Q4 Q5 72 Q6 Appendices Questions 18 - 22: EXTRAVERSION Extraversion definition: individuals who score high on the personality trait Extraversion like to draw attention to themselves, have a dominant presence, are active and energetic. Descriptive Statist ics N Within my organiz ation the pers onality trait EXTRAVER SION is s een as des ir able. Within my organiz ation the pers onality trait EXTRAVER SION is s timulated. Within my organiz ation Managers and Ex ecutiv es show high lev els of EXTRAVER SION. Within my organiz ation it will be incr eas ingly important that Managers and Ex ecutives s how high lev els of EXTRAVER SION. Due to the financ ial c risis the pers onality trait EXTRAVER SION has inc r eas ed in importance within my or ganiz ation (ac c ording to me). Due to the financ ial c risis the pers onality trait EXTRAVER SION has inc r eas ed in importance within my or ganiz ation (ac c ording to my organiz ation). Valid N ( lis tw is e) Minimum Max imum Mean Std. Dev iation 67 1 7 5,19 1,294 67 1 7 4,93 1,407 67 1 7 5,10 1,383 67 2 7 4,96 1,296 67 1 7 3,99 1,441 67 1 7 4,15 1,438 67 Extraversion 50,00% 45,00% 40,00% Totally disagree 35,00% Disagree 30,00% Somewhat disagree 25,00% Neutral Somewhat agree 20,00% Agree 15,00% Totally agree 10,00% 5,00% 0,00% Q1 Q2 Q3 Q4 Q5 73 Q6 Appendices Questions 23 - 27: AGREEABLENESS Agreeableness definition: individuals who score high on the personality trait Agreeableness are described as trustworthy, compassionate, pleasant to work with, conflict averse and willing to compromise their interests. Descriptive Statistics N Within my organiz ation the personality tr ait AGREEABLENESS is s een as des irable. Within my organiz ation the personality tr ait AGREEABLENESS is s timulated. Within my organiz ation Managers and Ex ecutiv es s how high lev els of AGREEABLENESS. Within my organiz ation it will be inc reasingly impor tant that Managers and Exec utiv es show high lev els of AGREEABLENESS. Due to the financ ial cr is is the pers onality trait AGREEABLENESS has inc reas ed in importanc e within my organization (ac cording to me). Due to the financ ial cr is is the pers onality trait AGREEABLENESS has inc reas ed in importanc e within my organization (ac cording to my organiz ation). Valid N (lis twise) Minimum Max imum Mean Std. D ev iation 67 2 7 5,10 1,269 67 1 7 4,85 1,317 67 2 7 5,16 1,109 67 2 7 4,67 1,364 67 1 7 3,76 1,538 67 1 7 3,93 1,428 67 Agreeableness 50,00% 45,00% 40,00% Totally disagree 35,00% Disagree 30,00% Somewhat disagree 25,00% Neutral Somewhat agree 20,00% Agree 15,00% Totally agree 10,00% 5,00% 0,00% Q1 Q2 Q3 Q4 Q5 74 Q6 Appendices Questions 28 - 32: EMOTIONAL STABILITY Emotional Stability definition: individuals who score high on the personality trait Emotionally Stability are described as being emotional robust also in stressful situations, act on the basis of facts and not on the basis of feelings, en have a healthy doses of self confidence. D escript ive Statistics N Within my organiz ation the pers onality tr ait EMOTION AL STABILITY is s een as des irable. Within my organiz ation the pers onality tr ait EMOTION AL STABILITY is s timulated. Within my organiz ation Manager s and Ex ec utiv es show high lev els of EMOTION AL STABILITY. Within my organiz ation it w ill be inc r eas ingly important that Manager s and Ex ec utives s how high lev els of EMOTION AL STABILITY. D ue to the financ ial cr is is the pers onality tr ait EMOTION AL STABILITY has inc reas ed in importanc e within my organiz ation ( ac c ording to me). D ue to the financ ial cr is is the pers onality tr ait EMOTION AL STABILITY has inc reas ed in importanc e within my organiz ation ( ac c ording to my or ganiz ation) . Valid N (lis tw is e) Minimum Maximum Mean Std. Dev iation 67 2 7 5,76 1,074 67 2 7 5,12 1,343 67 2 7 4,87 1,278 67 2 7 5,69 1,157 67 1 7 4,66 1,647 67 1 7 4,66 1,553 67 Emotional Stability 50,00% 45,00% 40,00% Totally disagree 35,00% Disagree 30,00% Somewhat disagree 25,00% Neutral Somewhat agree 20,00% Agree 15,00% Totally agree 10,00% 5,00% 0,00% Q1 Q2 Q3 Q4 Q5 75 Q6 Appendices III - NEGATIVE PERSONALITY TRAITS ‘DERAILING TRAITS’ Questions 33 - 37: EGO-CENTEREDNESS Ego-centeredness definition: Ego-centeredness is the decreased ability to sympathize with feelings or the perspective of others, centralizing one‟s own vision and needs and assuming that that vision is shared by others. D escriptive St atist ics N W ithin my orga niz ation the per s onality tra it EGO-C EN TER ED N ESS is s een as und es irable. W ithin my orga niz ation the per s onality tra it EGO-C EN TER ED N ESS is s timulated. W ithin my orga niz ation Manag ers and Ex e c utiv e s s how high lev els of EGO-C EN TER ED N ESS. W ithin my orga niz ation it w ill be inc re as ingly important that Man ager s and Ex ec utiv es s how low lev els of EGO-C EN TER ED N ESS. D ue to the financ ial c ris is the atte ntion for the neg ativ e effec ts of the per s onality tr ait EGO-C EN TER ED N ESS has inc r eas ed w ithin my or ganiz ation (ac c ording to me). D ue to the financ ial c ris is the atte ntion for the neg ativ e effec ts of the per s onality tr ait EGO-C EN TER ED N ESS has inc r eas ed w ithin my or ganiz ation (ac c ording to my o rgan iz a tion) . Valid N ( lis tw is e) Minimu m Max imum Mean Std. De v ia tion 67 2 7 5,45 1,407 67 1 7 2,67 1,429 67 1 7 3,82 1,714 67 1 7 5,54 1,374 67 1 7 4,06 1,774 67 1 7 4,10 1,643 67 Ego-centeredness 60,00% 50,00% Totally disagree 40,00% Disagree Somewhat disagree 30,00% Neutral Somewhat agree Agree 20,00% Totally agree 10,00% 0,00% Q1 Q2 Q3 Q4 Q5 76 Q6 Appendices Questions 38 - 42: INTIMIDATING Intimidating definition: This management style is characterized by fear and the attack is used to justify one‟s own vision. By using threats others are brought out of balance. Descript ive Statistics N Within my organiz ation the tendency to INTIMIDATE is s een as undesirable. Within my organiz ation the tendency to INTIMIDATE is s timulated. Within my organiz ation Manager s and Ex ec utives s how high lev els of INTIMIDATION. Within my organiz ation it will be inc reasingly important that Managers and Ex ec utiv es s how low lev els of INTIMIDATION. Due to the financ ial c risis the attention for the negative effec ts of INTIMIDATION has inc reas ed within my organiz ation (ac c ording to me). Due to the financ ial c risis the attention for the negative effec ts of INTIMIDATION has inc reas ed within my organiz ation (ac c ording to my organization). Valid N (listwise) Minimum Max imum Mean Std. Deviation 67 1 7 5,97 1,487 67 1 7 2,12 1,472 67 1 7 2,87 1,705 67 1 7 5,97 1,291 67 1 7 3,45 1,654 67 1 7 3,52 1,599 67 Intimidation 60,00% 50,00% Totally disagree 40,00% Disagree Somewhat disagree 30,00% Neutral Somewhat agree Agree 20,00% Totally agree 10,00% 0,00% Q1 Q2 Q3 Q4 Q5 77 Q6 Appendices Questions 43-47: MANIPULATING Manipulating definition: This management style is aimed at forcing one‟s own way unto others, deceive and manipulate individuals and their feelings in order to gain a superior position and power. Descriptive Statistics N Within my organiz ation the tendenc y to MAN IPULATE is s een as undesirable. Within my organiz ation the tendenc y to MAN IPULATE is s timulated. Within my organiz ation Managers and Ex ecutiv es s how high lev els of MANIPULATION . Within my organiz ation it will be inc reasingly impor tant that Managers and Exec utiv es show low lev els of MANIPU LATION. Due to the financ ial cr is is the attention for the negativ e effec ts of MANIPULATION has inc reas ed within my organiz ation (ac c ording to me). Due to the financ ial cr is is the attention for the negativ e effec ts of MANIPULATION has inc reas ed within my organiz ation (ac c ording to my or ganiz ation). Valid N (lis twise) Minimum Max imum Mean Std. D ev iation 67 1 7 5,10 1,892 67 1 7 2,57 1,578 67 1 7 3,57 1,708 67 1 7 5,45 1,500 67 1 7 3,61 1,576 67 1 7 3,69 1,607 67 Manipulation 45,00% 40,00% 35,00% Totally disagree 30,00% Disagree Somewhat disagree 25,00% Neutral 20,00% Somewhat agree Agree 15,00% Totally agree 10,00% 5,00% 0,00% Q1 Q2 Q3 Q4 Q5 78 Q6 Appendices Questions 48-52: MICRO-MANAGING Micro-managing definition: this management style is characterized by the inability to delegate or trusting a task to someone else, primary force is lack of confidence. D escriptive St at ist ics N Within my organiz ation the tendenc y to MIC RO-MANAGE is s een as undes irable. Within my organiz ation the tendenc y to MIC RO-MANAGE is s timulated. Within my organiz ation Managers and Ex ec utiv es s how high levels of MIC RO-MANAGEMENT. Within my organiz ation it w ill be inc reas ingly important that Managers and Ex ec utiv es s how low levels of MIC RO-MANAGEMENT. D ue to the financ ial c ris is the attention for the negativ e effec ts of MIC RO-MANAGEMENT has inc reas ed w ithin my organization (ac c ording to me). D ue to the financ ial c ris is the attention for the negativ e effec ts of MIC RO-MANAGEMENT has inc reas ed w ithin my organization (ac c ording to my organiz ation). Valid N (lis twis e) Minimum Max imum Mean Std. Dev iation 67 1 7 5,18 1,651 67 1 6 2,94 1,660 67 1 7 4,09 1,840 67 1 7 5,75 1,295 67 1 7 3,55 1,569 67 1 7 3,60 1,457 67 Micro-managing 50,00% 45,00% 40,00% Totally disagree 35,00% Disagree 30,00% Somewhat disagree 25,00% Neutral Somewhat agree 20,00% Agree 15,00% Totally agree 10,00% 5,00% 0,00% Q1 Q2 Q3 Q4 Q5 79 Q6 Appendices Questions 53-57: PASSIVE-AGGRESSIVE Passive-aggressive definition: This management style is characterized by touchy and stubborn behavior that is shown by means of resistance, procrastinating, putting things off till later of simply deliberate/repeated failure to accomplish requested tasks for which one is responsible but feels that these tasks are unreasonable. D escript ive St atistics N Within my orga niz ation PASSIVE- AGGR ESSIVE behav ior is s een as undes ira ble. Within my orga niz ation PASSIVE- AGGR ESSIVE behav ior is s timulated . Within my orga niz ation Manager s and Ex ec u tiv es s how hig h lev els of PASSIVE- AGGR ESSIVE behav ior . Within my orga niz ation it w ill be inc r eas ingly imp ortant that Manage rs and Ex ec utiv es s how low lev els of PASSIVE- AGGR ESSIVE behav ior . D ue to the financ ial c r is is the attention for the negativ e effec ts of PASSIVE- AGGR ESSIVE behav ior has inc reas ed w ithin my or ganiz ation (ac c ording to me). D ue to the financ ial c r is is the attention for the negativ e effec ts of PASSIVE- AGGR ESSIVE behav ior has inc reas ed w ithin my or ganiz ation (ac c ording to my org aniz a tion). Valid N (lis tw is e) Min imum Max imum Mean Std. D ev iation 67 1 7 5,96 1,261 67 1 7 2,27 1,523 67 1 6 2,99 1,647 67 1 7 5,70 1,404 67 1 7 3,72 1,650 67 1 7 3,72 1,613 67 Passive-aggressive 60,00% 50,00% Totally disagree 40,00% Disagree Somewhat disagree 30,00% Neutral Somewhat agree Agree 20,00% Totally agree 10,00% 0,00% Q1 Q2 Q3 Q4 Q5 IV - ORGANIZATION & POLICY 80 Q6 Appendices Question 58) Within my organization, Talent Management is of great strategic importance: (seven point Likert scale) 6,4 6,21 6,19 6,2 6 5,82 5,8 5,6 5,42 5,4 5,2 5 According to me According to Talent Management/ HR According to Linemanagement According to Topmanagement Question 59) Over the last two years, the importance of Talent Management in my organization has: (Closed question) 70,0 59,7 60,0 61,2 58,2 50,0 44,8 47,8 38,8 40,0 34,3 32,8 30,0 20,0 10,0 7,5 7,5 4,5 3,0 Accourding to me According to Talent Management/ HR According to Linemanagement increased styed the same decreased increased styed the same decreased increased styed the same decreased increased styed the same decreased 0,0 According to Topmanagement Question 60) My organization identifies management- and leadership potential on the basis of: 81 Appendices (Multiple answers possible) O th er Po As te se nt ss ia m l en tr es Pe ul rs ts on al it y tra it s Am bi tio Se n lfkn ow le dg Pe e rs ev er an Co ce m pe te nc ie s Ap pe ar an ce Pe rfo rm an ce 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% „Other‟ consisted of: Behavior Cultural fit Geographic mobility and the drive and possibility to work long hours Personal click Education Extracurricular activities For certain performance you need certain skills Question 61) Does your organization, while assessing management- and leadership potential pay attention to the personality traits of the Big Five? If so, please indicate below which traits are used in the assessment? (Multiple answers possible) 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% Em ot io 82 No na lS ta bi lit y en es s Ag re ea bl on Ex tra ve rs i en t io us ne ss Co ns ci O pe nn es s 0,0% Appendices Question 62) Does your organization while assessing management- and leadership potential pay attention to the Derailing personality traits? If so, please indicate below which traits are used in the assessment? (Multiple answers possible) om M No e Pa ss i icr ve -a gg re ss iv an ag in g n at io M an ip ul id at io n In tim Eg oce nt er ed ne ss 90,0% 80,0% 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% Question 63) My organization is actively involved in trying to retain management and leadership talents. (seven-point Likert scale) Descriptive Statistics N My organization is actively involved in the development of management and leadership’s talents. Valid N (listwise) 67 Minimum Maximum 1 7 Mean 4,76 Std. Deviation 1,750 67 Question 64) My organization is actively involved in the development of management and leadership’s talents. (seven-point Likert scale) Descriptive Statistics N My organization is actively involved in the development of management and leadership’s talents. Valid N (listwise) 67 Minimum Maximum 1 7 67 83 Mean 5,25 Std. Deviation 1,608 Appendices Question 65) Within my organization the following internal processes and policies focus on the development of management and leadership talents: (multiple answers possible) 70,0% 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% „Other‟ consisted of: Exit policy Line management Not applicable Other Strategic management Talent Management & HR policies Training and development policies Management development policies Moving up & appointment processes Recruitment & selection processes 0,0% Not entirely Personal preferences Question 66) Within my organization the following tool(s) is (are) used to monitor management and leadership talents: (multiple answers possible) 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% Performance management system Talent management system HR tools & methods Other „Other‟ consisted of: General feeling Discussion Individual coaching, assessment interview, performance interview, development interview 84 Appendices Inventory of leadership talent through yearly Round Tables On individual basis Personal discussion and coaching Personal assessment Regular discussions between employee and manager Via HR discussion cycle Self assessment and assessment by colleagues Not applicable Not (2x) Unknown Question 67) Within my organization is the following department(s) is (are) explicitly responsible to decide on desired management and leadership profiles: 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% 0,0% Talent Management Line management & HR Top management „Other‟ consisted of: The group, we are all partners Top management responsible for HR HR/ TM advises top management, who will eventually decide Line management and Talent Management together Not applicable 85 Other Appendices Question 68) Within my organization the profile of management and leadership talents has been altered to reflect a more desirable profile due to the financial crisis. Yes No 19,4% 80,6% Question 69) If you have answered Question 68 affirmative, please fill out the following questions. Otherwise please proceed to Question 70. 69.a) Who or which department has altered the profile(s) as described in Question 68? Top management (4 times) HR (3 times) Board of Directors and HR (2 times) Board of Directors and Leadership development 69.b) At which level of the organization have the profile(s) been altered? Top management (5 times) Top management and line management (2 times) Higher and middle management (2 times) Top 200 level (new leaderships profile under construction which will serve as a reverence point for all management roles) More focus on profile middle management, also on influences from environment e.g. management, market, self reflection 86 Appendices 69.c) What are the most important changes to the profile(s)? Shift in focus to managing people in the market; processes should be supporting instead of leading Ability to make decisions More focus on ability to make decisions, ability to connect and personal leadership Competences adjusted Functional competencies; positive personality traits Leadership accountability More conscientiousness, more business sense More focus on business development / acquisition More result driven, broader scope (more responsibility within organizational levels) Addition of competencies No changes in desirable behavior Under construction Unknown 69.d) „Other‟ consisted of: This is not addressed, I do not know the details Question 70) Has the evaluation of the management and leadership talent(s) in your organization changed since the start of the financial crisis? Yes No 20,9% 79,1% 87 Appendices Question 71) If you have answered Question 70 affirmative, please fill out the following questions. Otherwise please proceed to Question 72. 71.a) Who or which department has altered the evaluation of management and leadership talent(s) as described in Q70? Top management (8 times) Top management in consultation with HR (2 times) 71.b) At which level of the organization have the evaluation(s) been altered? Top management (5 times) Middle management (2 times) Line management Specialists Not yet, is being debated 71.c) What are the most important changes to the evaluations(s)? Stricter as a result less people are seen as exceptionally talented More focus on results, broader scope (more responsibilities in certain management levels), more action if people do not perform Leadership, accountability / consequence management More critical, more focus on performance and results Strong task orientation Able to simplify processes and commercial activities in order to be more transparent to customers More entrepreneurship needed 71.d) „Other‟ consisted of: This is not addressed, I do not know the details Question 72) Within my organization the following alterations to Talent Management processes have taken place due to the financial crisis: The method of assessment of current employees on top functions The number of assessments of new hires The number of assessments of managers within the organization The requirements of new hires The content of leadership programs The content of trainee programs Budgets have been adjusted No changes „Other‟ 88 Appendices 60,0% 50,0% 40,0% 30,0% 20,0% 10,0% Other Budgets have been adjusted Content of leadership programs Number of assessments of managers Method of assessment of current 0,0% Question 73) If you have answered Question 72 affirmative, please indicate which alterations to Talent Management process have taken place. Otherwise please proceed to Question 74. 73.a) The method of assessment of current employees on top functions. Now assessments are conducted, as opposed to no assessments before Hiring of an external agency Stricter review of talents People stay longer in a certain function New profile and assignment/ work with „must haves‟ on the basis of experience and competencies Periodical review of management in combination with possible changes in assignment Stricter on results and keeping promises Added competencies 73.b) the number of assessments of new hires Amount of assessments has increased enormously Less new hires Less assessments because of the costs Changed selection procedure; assessment is not standard anymore Recruitment targets have decreased, but assessment is the same 73.c) the number of assessments of managers within the organization There were less management roles available 89 Appendices More assessments take place These decreased because of less new hires Less people attended leadership programs, those programs did not change though 73.d) the requirements of new hires Focus on people that make a difference; more attention for leadership qualities No concessions concerning the desired profile: both personal as factual personality traits Added competencies Has become stricter Demands on new personnel have increased during the crisis Focus is more on the outside world and the business Specific knowledge is demanded instead of a more generic profile, which is „learnable‟ Being able to take task responsibility in the broad field of people management, operational management concerning personnel policy 73.e) the content of leadership programs Adjusted on finance, risk management, resilience, trust Focus on management in times of crisis and personal leadership Are more focused on customer-orientation, both internal and external More focused on desired behavior More focused on learning- and change capabilities More focused on transparent decision making New Management Development program is focused on practice Is under construction These trainings have been cancelled 73.f) the content of trainee program New trainee program has been developed in preparation of economic recovery Is under construction None 73.g) budgets have been adjusted: more or less budget is available Less (5) All budgets have been adjusted downward Budget for education, development, and recruitment have diminished to 0 Less, but leadership programs have more participants Budgets for education and recruitment have diminished Development budget has changed More (2) 90 Appendices Question 74) What aspects concerning personality traits of management and leadership talents are underexposed in your organization (according to you)? Empathy Balance None, there is already too much being expected Reciprocal evaluation Personal attention, friendliness, balance Result-orientation, decisiveness and guts Self-knowledge, working in and as a team People-orientation, situational leadership Technical knowledge Visionary leadership Making the connection with people/ talents, driven by interest in people Authenticity, trust, listening Ambition, potential for growth, recognition of talent Humane traits such as friendliness, sympathy, that make an ordinary manager a people manager. There is enough formal attention for this, but the informal culture annuls this. Authenticity, emotional stability Emotional stability Creativity, innovation, and giving constructive feedback Learning and innovative ability, style-flexibility Ability to self-reflect, impact of own behavior on others, relationship management, Responsibility, authenticity. Ability to handle Power and Politics, people management, being fair and straight Ability to investigate, creativity Creativity, extraversion Balance Attention for the human being: accept and stimulate out-of-the-box thinking Make self-regulation by employees possible, personal flexibility of secondary benefit program, ability to balance work and life, people-orientation of management. Openness, respect Communication, individual coaching The Big Five and Derailing Traits are not recognized and mentioned as such On a daily basis we stress the importance of character traits and in that sense also all traits in one team. Motivation, motivators, energy, vision on relationships and performance, etc. On the basis of the questionnaire, at least the Big Five Serving management is in design phase but must still be realized Ego-centrism The more soft/ feminine traits are undervalued. I am a supporter of diversity in leadership styles in the organization. Make more specific profiles of functions within the organization Listening For Talent Management a leadership style of trust is required (not control), forms of strategy and vision, looking ahead and stating clear goals, team development 91 Appendices Giving sincere feedback, looking for tension and stretch in development The role of developer, the role of a leader who doesn‟t mind that his employees will eventually pass him by Stimulating exemplary behavior Question 75) What extra information would you like to provide your organization with in order for the organization to be able to optimize Talent Management? Practice what you preach More training on the Big Five More systematic in evaluation and more intervision on difficult courses Select on the basis of the mentioned traits and training in this field Make it a USP Focus on Talent Development of employees More attention for employee, create more open seats at the top. In the Board of Directors of our organization there are only external directors. None comes from the organization itself, which is a bad thing More focus on medium- to long term thinking (opportunities and threats) 1)The basis of Talent Management should be to really know the talents. 2) Talent Management should be capable of guiding talent and to stimulate in „surprising choices‟ 3) Talent Management should be able to advise top management on possible matches by really knowing the talents. Engage in discussions and have faith Consider setting up Talent Management seriously I would like to formalize and optimize the positions of HR and Talent Management in order to ban the old boys‟ network Secure authenticity Don‟t just talk about talents, but do something with the results. Also when a pandemic as H1N1 comes by. Just continue Give managers the opportunity to serve the market as they see fit: stimulate innovation and creativity. Manage when necessary, instead of too loose of too tight. Learning, as managers, that giving constructive feedback is a chance to develop people. Safe environment: making mistakes is allowed as long as people learn from them. Dare to take risks: dare to experiment by place less obvious people in certain positions. Top management should take ownership of key talent. Mobility should be increased. Design frameworks for Talent Management, develop a structure/ policy and career paths from low to high and from high to low. Research open and creative among employees. Start for example with an earlier obtained competence test also for the people who are not openly ambitious. Create consciousness about talents (also horizontal talents: specialists). Teach people to talk, listen and research. Do not judge on the basis of clinical competence tests and allow people their imperfections. The individual can learn and always has imperfections. Judging someone in an early stage does not allow learning to take place (for example in strict competence management followed by an evaluation. 92 Appendices More attention for concrete behavior of managers Let attracting, developing and flow of talent be part of the evaluation criteria of line management. Look at the self development of employees and stimulate it in favor of the organization. Throw away all systems and technocracy because the organization can hide itself behind that. Reserve jobs for talents on all levels Start formalizing Talent Management (goals, policy, responsibilities and budget). Let go of micro-management and do not bring bad experiences from the past concerning talents into the future. Select on the basis of personality traits and not on competencies. However, for this it is necessary to take certain daring steps: ability and drive to evaluate on behavior instead of function-related criteria. These days, diversity within the organization is less about the balance male-female, native-immigrant, but more in the field of background and education. People are still somewhat suspicious about people that went to university. This makes it hard to acquire and keep talents within the organization. Strong focus on top talent for top positions and linking development to strategy of the company. More focus on the organization and less on oneself More diversity, which means more attention and appreciation for soft skills: selfreflection, empathy, friendliness, openness, and serving management. Spend more time and attention on it Record agreements, be open about possibilities Evaluate managers on the attention they give to the coaching and development of their employees. More guts in the evaluation and mobility of employees Talent Management is not just about following a training, it is much broader. Dare to differentiate Get to know each other even better! The role of developer, the role of a leader who doesn‟t mind that his employees will eventually pass him by Stimulating example behavior You have reached the end of the questionnaire. Thank you very much for your cooperation! 93 Appendices Appendix B: List of Participating Organizations (mogen we de bedrijven dan wel noemen in onze thesis) ABP Investments ABN Amro (4) Adstrat Ahold AWVN Bernhoven Boertien British Petrol Cat Chestnut Communicum Compagnon Courtesty Masters Ebbinge Functiemediair Gemeente Amersfoort ING (3) Hofp.nl In the Picture Communicatie Koninklijke Landelijke Politie Dienst KPN Planet Manpower MCA Medimmune Minitsterie van Defensie Nederlandse Spoorwegen Openbaar Ministerie Ormit (2) Philips Price Waterhouse Coopers Protiviti Randstad Rembrandt FO Royal Dutch Shell Siemens Stork TNT Post Tracks Universiteit Twente Van der Pool Van Gansewinkel VGZ IZA Vitae (2) Yacht 94