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The Spiraling and Spillover of Misconduct: Perceived Workplace Bullying, Subclinical Psychopathy, and Businesspersons’ Recognition of an Ethical Issue

Sean R. Valentine1 & Sheila K. Hanson2 & Gary M. Fleischman3

Published online: 31 August 2017 # Springer Science+Business Media, LLC 2017Case Study

Abstract Workplace bullying can potentially spiral into numerous counterproductive behaviors and negative organizational outcomes. Therefore, the purpose of this study was to determine the degree to which increased perceptions of workplace bullying were associated with stronger expressions of (subclinical) psychopathic traits and weakened ethical decision making. Data were collected from national and regional samples of selling and business professions using a self-report questionnaire that contained relevant mea- sures and an ethics scenario, and structural equation modeling was employed to investigate the proposed relationships. Findings indicated that perceived workplace bullying operated through psychopathy to influence the recognition of an ethical issue (or full mediation). The implications of these findings are discussed, along with the study’s limitations and suggestions for future research.

Keywords Workplace bullying . Spiraling . Psychopathy. Ethical decision making

Employ Respons Rights J (2017) 29:221–244 DOI 10.1007/s10672-017-9302-8

An earlier version of this study was presented at the 2016 Academy of Management Meeting, August 5–9, Anaheim, CA.Case Study

* Sean R. Valentinesean.valentine@mail.business.und.edu

Sheila K. Hansonsheila.hanson@business.und.edu

Gary M. Fleischman gary.fleischman@ttu.edu

1 Department of Management, University of North Dakota, 293 Centennial Drive, Mailstop 8377, Grand Forks, ND 58202-8377, USA

2 School of Entrepreneurship, University of North Dakota, Gamble Hall, Room 365H, 293 Centennial Drive, Stop 8363, Grand Forks, ND 58202-8263, USA

3 Rawls College of Business, Texas Tech University, Box 42101, Lubbock, TX 79409-2101, USA

 

 

In a typical workday, there are numerous motivations and opportunities for employees to mistreat each other. From less overt forms of misbehavior such as badmouthing, aggressive communication, and politicking to more serious types that include coercion, subversion, and sabotage, workplace bullying has emerged as a prevalent challenge in different organizations and professional environments (e.g., Aquino and Thau 2009; Hutchison et al. 2009; Lutgen- Sandvik et al. 2007; Mikkelsen and Einarsen 2001; Salin 2001). Bullying has even been explored in the academic environment given its frequency within the ranks of universities (Giorgi 2012; McKay et al. 2008; Zabrodska and Kveton 2013).

Research shows that a number of factors can cause such misbehavior. High performance expectations related to pay (Samnani and Singh 2014), stressful and/or chaotic workplaces (Baillien et al. 2011; Heames et al. 2006; Hodson et al. 2006), and limited resources can encourage individuals to be self-interested and competitive, and when these characteristics are coupled with low management oversight and/or power differentials (Hodson et al. 2006), interpersonal conflict and bullying can occur. A toxic, corrupt, or unethical work environment can also precipitate bullying (McKay et al. 2008; Hutchison et al. 2009; Valentine et al. 2015; Vickers 2014). Additionally, prior research identifies many negative outcomes of bullying such as poor work attitudes/responses, high stress/burnout, and decreased emotional, psychological, and physical well-being (Aquino and Thau 2009; Bowling and Beehr 2006; Giorgi 2012; Mayhew et al. 2004; Parzefall and Salin 2010).Case Study

A particularly destructive consequence of workplace bullying involves a spiraling effect that encourages targets to harm coworkers as a result of their own negative work experiences. According to Salin (2003, p. 1217), “…bullying can often be described as a self-reinforcing or spiraling process, building on vicious circles (cf. Andersson and Pearson 1999). In addition, bullying and other forms of anti-social behaviour may also cascade and spawn secondary bullying spirals, either through modeling or displacement (cf. Pearson et al. 2000).” Such misbehavior can also “spill over” from one area of a company to others as individuals interact with different employees (McKay et al. 2008). This implies that bullying can be repeated when it is experienced in a workplace impacted by negative employee interactions, even in other office domains. Professional and organizational contexts can exacerbate these problems with cultural characteristics that allow bullying to occur, be learned, and be reciprocated (i.e., excessive informality, preferences for aggressive behaviors/humor, and low morale), or by employing “hands off” or unfair leadership styles that fail to properly supervise the actions of employees (Boddy 2011; Harvey et al. 2009; Pilch and Turska 2015; Salin 2003). Conse- quently, certain occupations may be prone to such misconduct.

Harmful workplace behaviors appear to be significant concerns in the sales profession. The field of selling is often characterized by a variety of individual deviant behaviors, and according to Darrat, Amyx, and Bennett (2010, p. 239), this “…alarming prevalence of deviance among salespeople may be due, in part, to an inherent leniency toward deviant behavior within the sales industry.” Of particular relevance to this study are the acts of interpersonal deviance that can be exhibited by salespersons, which can include mistreating work associates, taking credit for other people’s contributions, and blaming others for negative outcomes (Jelinek and Ahearne 2006). Social undermining may also be a problem in the sales profession, behavior that includes “…intentional offenses aimed at destroying a salesperson’s favorable reputation, his or her ability to accomplish sales-related work, or his or her ability to build and maintain positive relationships with supervisors, coworkers, and customers as boundary spanners” (Yoo and Frankwick 2013, p. 80). In this sense, aggressive behaviors that harm coworkers have the capacity to spiral and spillover in the sales industry, as well as

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other occupations, thus adversely changing employees’ attitudes about what is considered acceptable conduct.

Negative bullying experiences that spiral out of control may also create a toxic work environment that harms an organization’s ethical context. For example, Power et al. (2013) determined that cultures emphasizing achievement and accomplishments may be more accepting of bullying, which could lead to a negative culture in which bullying becomes the norm. Furthermore, Giorgi et al. (2015) found a curvilinear relationship between bullying and job satisfaction, which suggests that increased exposure to bullying is related to (at some point) incrementally higher employee job satisfaction. Over time, bullying may not be viewed so negatively by employees, as they may perceive that some degree of bullying is necessary for high job performance.Case Study

These attitudinal changes are likely exhibited through a variety of antisocial and counter- productive tendencies. For instance, workplace bullying would seem to negatively impact how individuals prefer to interact with and treat their coworkers, setting the stage for the reciprocal and displaced mistreatment of others. In the organizational context, “it is contended that the external environment can contribute to the acquisition and maintenance of aggressive and bullying behaviors” (Harvey et al. 2009, p. 33). Past work also indicates that bullying experiences may encourage individuals to behave aggressively toward others (Hauge et al. 2009; Matthiesen and Einarsen 2007).

But what negative psychological processes motivate persons to bully others in response to their negative job interactions? The answer to this question likely resides within a group of personality traits that may be reinforced based on bullying experiences. According to Pilch and Turska (2015, p. 85):

In the case of the personality of perpetrators, the set of significant traits which may prove to be crucial for understanding the group specificity is the Dark Triad of personality (Machiavellianism, subclinical psychopathy, and subclinical narcissism) (Paulhus and Williams 2002). Despite their distinct difference, these traits are related by treating people like objects, manipulativeness, and lack of empathy, which favors undertaking of the activities classified as bullying (Baughman et al. 2012).

Of these three traits, psychopathy, which can motivate individuals to act ruthlessly and cold toward multiple target individuals, may be the most strongly associated with bullying because the two factors represent a common underlying set of negative behavioral tendencies that directly harm others (Baughman et al. 2012; Boddy 2011). While Machiavellianism and narcissism can lead to negative interactions with others, these traits may share comparatively weaker relationships with overt/serious forms of aggression such as bullying than does psychopathy (see for example Baughman et al. 2012; Pilch and Turska 2015), as well as be viewed as less undesirable (Rauthmann and Kolar 2012), possibly indicating that psychopathy is the most socially disruptive characteristic in the Dark Triad. Consequently, as a personality style psychopathy may be manifested through an “acting out” of negative tendencies that precipitate (and possibly reinforce) workplace bullying, thus encouraging a spiraling/spillover of misconduct in the workplace.

There is also reason to believe that the spiraling/spillover of bullying and the reinforcement of (subclinical) psychopathy personality styles negatively affect the ethical decisions that are triggered when employees are mistreated. Using multiple ethical lenses (i.e., deontology, utilitarianism, fairness, etc.), workplace bullying and the actions closely associated with psychopathy are unethical because organizations are ultimately harmed by a reliance on

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aggression as acceptable behavior (Boddy 2011; Harvey et al. 2009). These norms likely decrease individuals’ ability to make ethical decisions because they are impacted by a negative work environment and behavioral tendencies. Harvey et al. (2009) presented a framework for understanding bullying in international business, which highlights how the work context can encourage bullying and modify employees’ behavioral tendencies based on observed miscon- duct. These linkages suggest that unethical decision making is driving an increased willingness among individuals to mistreat others. It is known that:Case Study

…employees solve ethical dilemmas based on their individual characteristics, the organizational culture in which they are embedded and the resulting ‘realities’ of the work environment, and their relationships with others in the organization. If any of these elements deficient or aberrant behavior in nature bullying can occur. Moreover, if the situation is not adequately addressed by management, bullying can become an accepted ‘ethical’ behavior in global organizations (Harvey et al. 2009, p. 30).

Research also shows that traits such as Machiavellianism and psychopathy are associated with increased workplace bullying and other dysfunctional actions (Baysinger et al. 2014; Pilch and Turska 2015), which implies that employees’ ethical decision making and behavioral choices are compromised when they are subjected to bullying, and that similar misbehaviors can be prompted by the unethical reasoning associated with negative behavioral tendencies.

Given these issues and concerns, the purpose of this study is to investigate the degree to which workplace bullying, psychopathy, and ethical decision making are interrelated in organizations. While including these three factors in one study represents an ambitious effort, we believe that examining a more comprehensive model (instead of narrowing the scope of the investigation to just two variables) enables us to more effectively bring together distinct literatures and make a stronger contribution. In addition, the variables selected and relationships proposed more closely align with existing theory in the field of managerial ethics; for instance, many models of ethical reasoning indicate that decision making is influenced by both individual and contextual factors in an interactional sense (see Ferrell and Gresham 1985; Hunt and Vitell 2006; Jones 1991; Treviño 1986). It is therefore proposed that perceptions of organization-wide bullying encourage attitudes and behaviors consistent with psychopathy, which decrease the recognition that the mistreat- ment of a selling professional (presented in a sales scenario) is unethical. While the presence of reverse causation is certainly plausible (i.e., psychopathy ➔ workplace bullying), we posit that broad perceptions of a work environment characterized by bullying (as opposed to more immediate and negative target experiences) have the capacity to encourage employee behaviors related to psychopathy, which result in weak- ened ethical reasoning. As noted previously, we also contend that the selling profession is an appropriate context for exploring these linkages because it is adversely impacted by a variety of ethical issues (see Caywood and Laczniak 1986; Ferrell et al. 2007; Hoffman et al. 1991; Seevers et al. 2007; Serviere-Munoz and Mallin 2013; Tellefsen and Eyuboglu 2002; Wotruba 1990), including interpersonal conflict and deviant behavior that is closely related to workplace bullying (Darrat et al. 2010; Jelinek and Ahearne 2006; Yoo and Frankwick 2013). In addition, “…there is relatively little known about negative salesper- son behaviors” (Jelinek and Ahearne 2006, p. 327), and “…little work has explored salesperson negative or dysfunctional behavior and what causes this negative behavior” (Yoo and Frankwick 2013, p. 79), so investigating the proposed relationships within the selling context enables this study to make a more substantial contribution to the literature.

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This research is important and relevant for several reasons. First, it represents one of the first examinations of the possible connections among workplace bullying, subclinical psychopathy, and individual ethical decision making. Valentine et al. (2017) found, among other relationships identified, that bullying experiences were positively related to psychopathy, and that psychopathy was negatively related to the perceived importance of an ethical issue and ethical intention. However, this present study examines a broader, more culture-centric measure of workplace bullying, or bullying index, as well as a different component of ethical decision making, recognition of an ethical issue, to investigate the notion that negative social interactions in the workplace have the capacity to harm multiple stages of individual ethical reasoning. Similar to other culture-based measures, use of an index that taps employees’ perceptions of organization-wide bullying is particularly appropriate because, compared to more narrow measures of individual bullying experiences, it should provide a better gauge of the sociocultural norms (and subsequent misconduct) that occur throughout a company. Key to this investigation, perceptions of these behavioral norms should be better positioned to influence individuals’ decisions about how to think and behave from an ethical standpoint.Case Study

By exploring these key relationships, this study also has the potential to fill important theoretical and empirical gaps at the crossroads of the business ethics and management literatures. A number of perspectives such as social exchange theory (i.e., perceived psycho- logical contract breach, injustice, low organizational support) (Parzefall and Salin 2010), social learning theory (Harvey et al. 2009; Salin 2003), and Novak’s (1998) learning theory (Altman 2010) have been used to explore the proliferation of workplace bullying, and testing the study’s proposed relationships provides additional evidence that these theoretical lenses are useful tools for understanding why such aggression occurs in organizations. Additionally, providing evidence that perceived workplace bullying and reinforcement of subclinical psy- chopathy function in concert to harm ethical reasoning provides further understanding of how bullying can negatively spiral into other dysfunctional tendencies in the workplace. According to Parzefall and Salin (2010, p. 762), “to date very limited attempts have been made to understand the mechanisms and processes through which the experience of workplace bullying evolves and translates into negative reactions from targets and, above all, from bystanders. This is an important issue, as the experience of bullying ultimately influences evaluations of the employment relationship and its quality as a whole.” The following section presents the relevant literature and hypotheses.

Literature Review

Workplace Bullying and Psychopathy

Definitions of workplace bullying commonly revolve around negative verbal or nonverbal behaviors directed at target individuals, as well as the outcomes of these negative acts and harmful effects on victims (Einarsen et al. 1994; Saunders et al. 2007). Bullying may range from subtle comments to aggressive behavior. Less severe forms of bullying (e.g. snide comments) that occur frequently may be just as harmful as more serious bullying experiences (e.g. humiliation), where the perceptions of negative and inappropriate behavior cause harm (Baron and Neuman 1998; Saunders et al. 2007). Mayhew et al. (2004) determined that, similar to assault, even covert types of violent acts in companies such as bullying could cause emotional problems for victims.

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Beyond harming targets, bullies who perpetrate negative behaviors may influence others, including those who have witnessed the bullying (Samnani and Singh 2012). For instance, perceptions that bullying proliferates at work can negatively impact job satisfaction (Valentine et al. 2015). These connections imply that bullying might be learned experientially though negative work encounters and interactions (Altman 2010). As social learning theory suggests, modeling and imitating workplace bullying can help reinforce and spread negative effects (Salin 2003). Novak’s (1998) learning theory implies that experiences aid in the development of differing perceptions of workplace bullying, which can result in greatly varied reactions to it (Altman 2010). There may be significant motivations for witnesses of bullying to follow suit if they perceive that bullying yields positive rewards in the workplace (Boddy 2014). This may be particularly true if the organizational environment is viewed as a corrupt system that legitimizes the mistreatment of employees (see Hutchison et al. 2009; Vickers 2014).

Like bullies, psychopaths of all types (i.e., “clinical,” “subclinical,” “corporate,” “success- ful,” etc.) are also predisposed to cause harm to others (e.g., Boddy 2011; Hare 1994, 1999a, b; Stevens et al. 2012). Of all elements of the dark triad, psychopathy is often the most closely related with violent, dangerous, aggressive (O’Boyle et al. 2012; Rauthmann and Kolar 2012), and destructive workplace behavior (Boddy 2011). Psychopathy has been conceptualized as a disorder (Blair 2007; Lynam et al. 2007) that involves emotional dysfunction (e.g. an absence of empathy) and antisocial behavior (Blair 2007; Hare 1994, 1999a, b). Research into the etiology of psychopathy has distinguished two types (i.e., factors), including primary and secondary psychopathy (Yildirim and Derksen 2015). Primary psychopathy is considered a personal difference that is related to genetic origins, while secondary can be considered “an environmentally-contingent strategy,” leading to psychopathic behavioral expression (Yildirim and Derksen 2015, p.18). Subclinical levels of secondary psychopathy, partic- ularly the behavioral tendencies that are acted out in the corporate setting, are the focus of the current study.Case Study

Psychopaths, including those who exhibit subclinical levels of the characteristic and/or effectively function in companies, display a variety of potentially negative traits and behaviors such as an elevated sense of self-importance, shallow obsequiousness and charm, dishonesty, a charismatic and manipulative nature, decreased empathy, and an inability to accept personal responsibility for their misdeeds (e.g., Boddy 2011; Hare 1994, 1999b). In the general population, subclinical psychopathy, is estimated to occur at base rates of 5% to 15% (LeBreton et al. 2006), so the incidence is higher than clinical psychopathy traits and behaviors manifested at clinical levels (i.e. those individuals with diagnosable, severe impairment), which occurs at base rates of around 1% (Hare 1999a, b). The rare clinical levels of psychopathy may be most closely associated with Antisocial Personality Disorder, diagnosable only when sufficient criteria as found in the DSM 5 (APA 2013) are met. Even at subclinical levels, psychopathy is viewed as the most malicious of the Dark Triad (Rauthmann and Kolar 2012). Cognitive and neuropsychologists have identified the underlying neuropsychological mechanisms of the amygdala, which modulates emotional responses, and the ventromedial prefrontal cortex, which plays a role in reasoning through potential negative consequences of behavior (Boddy 2011; Carlson 2014). Both the amygdala and ventromedial prefrontal cortex interact in moral reasoning, and that process may be impaired in the case of psychopathy (Blair 2007). Dysfunction and antisocial behaviors are some of the other negative consequences associated with psychopathy (Hare 1994).

These counterproductive tendencies can create many challenges in the workplace. In particularly, subclinical/corporate psychopaths are known to get their way through bullying

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behaviors such as coercion, abuse, humiliation, aggression and fear tactics (Babiak and Hare 2006; Boddy 2011). Psychopathic bullies do not feel remorseful, guilty, or empathic in relation to their behavior, lacking insight; in fact, they may be unable or unwilling to control their behavior, even when more moderate behavior would ultimately be more advantageous (see Babiak and Hare 2006).

Like bullies on the playground in childhood, psychopathic tendencies and bullying behavior in the workplace may be connected. The notion of workplace psychopaths has gained traction to explain the incidence of workplace bullying (Caponecchia et al. 2012). The observable outcomes of bullying behavior and the attitudes and traits of subclinical psychopathy suggest theoretical overlap between bullies and subclinical psychopaths (Boddy 2011; Harvey et al. 2007). Boddy (2011) found a high positive correlation (r = 0.939) between corporate psycho- paths being in the workplace and the degree of perceived bullying (i.e. “witnessing unfavorable treatment of others at work”), which supported prior work demonstrating that individuals scoring high in measures of psychopathy were more likely to engage in bullying behavior (Nathanson et al. 2006). Certainly, bullies and psychopaths can be different individuals, yet there does seem to be considerable overlap between the two patterns/profiles. For example, Babiak and Hare (2006) found that around 29% of corporate psychopaths are also bullies. Further, Boddy (2014) evaluated the amount of bullying in organizations based on managerial type (i.e. “normal,” “dysfunctional,” and “psychopathic”) and determined that 35.2% of all bullying was related to corporate (i.e. subclinical) psychopaths.

Given this evidence, it can also be argued that exposure to workplace bullying may precipitate psychopathic tendencies in employees. The spiraling/spillover effect of bully- ing in organizations can create a culture that condones it, encouraging employees to learn and utilize such misconduct as an acceptable form of interaction with colleagues (e.g., Altman 2010; Harvey et al. 2009; Salin 2003). The negative social exchanges that are experienced when bullying is widespread can also create a prevailing perception among some individuals that equity, justice, and other ethical standards are not honored within a company (e.g., Parzefall and Salin 2010), thus encouraging them to adopt patterns associated with psychopathy for the purposes of self-benefit/interest. Taken together, these points lead to the following hypothesis:

Hypothesis 1: Stronger perceived workplace bullying is associated with increased psychopathy.

Psychopathy and Recognition of an Ethical Issue

While psychopaths who lack a conscience may experience legal problems, psychopaths who possess subclinical levels of psychopathy may work undetected and even successfully within the workplace (Boddy et al. 2010). Successful psychopaths can exhibit poor ethical decision making (Boddy et al. 2010), and when they preside in leadership and other positions of power, may negatively influence others (Boddy 2011). When leadership and management include subclinical psychopaths, modeling unethical behavior to employees is more likely (Boddy 2006). Subclinical psychopaths are known for maximizing their own wealth and power and can make impulsive decisions in their own self-interest without carefully considering the long- term impacts to the organization (Boddy 2006). Further, lacking conscience and a sense of morality, subclinical psychopaths are often unaware of the problems related to decisions that

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are “immoral, unethical, contrary to accepted codes of professional practice, or outright illegal” (Boddy 2006, p. 1470).

Ethical decisions should be particularly affected by patterns of psychopathy. The ethical decision-making process is typically conceptualized as a series of mental and behavioral steps that occur sequentially as employees face ethical dilemmas at work (see Ferrell and Gresham 1985; Ferrell et al. 2007; Hunt and Vitell 2006; Jackson et al. 2013; Jones 1991; Rest 1986; Treviño 1986; Wotruba 1990 for variations of the basic framework). Individuals first recognize that a situation contains an ethical issue before evaluating any potential problems; this first step is viewed as a critical component of ethical reasoning because it precipitates other more advanced stages of decision making (e.g., Rest 1986). The next step involves making judgments of the ethicality of a situation based on different paradigms such as equity, fairness, justice, and social expectations (see Rest 1986; Reidenbach and Robin 1990). Once formal- ized, these judgments lead into intentions to behave consistently with previous evaluations. The final step is behaving according to previous judgments and intentions (Jones 1991; Rest 1986). Research indicates that these steps hold true in many different ethical situations (e.g., Barnett 2001; Barnett and Valentine 2004; Robin et al. 1996; Valentine and Barnett 2007; Valentine et al. 2010).

Prior research suggests that the neuropsychological makeup of individuals with psycho- pathic tendencies makes them challenged to follow the steps of the ethical reasoning process (Blair 2007; Carlson 2014). Within the construct of subclinical psychopathy are the underlying belief systems that may compromise the ethical reasoning process. Subclinical psychopaths are known to admire clever scams, feel justified in doing whatever they can get away with and would agree with the statement: “For me, what’s right is whatever I can get away with” (Levenson et al. 1995, p. 153). In addition, Jackson et al. (2013) suggested in their framework of ethical decision-making dissolution that poor cognitive moral development, low ethical sensitivity, and a willingness to break rules among leaders, traits reflective of psychopathy, would negatively impact the recognition of ethical situations.

One study in particular provides compelling support for these relationships. Stevens et al. (2012) found that the link between psychopathy and unethical reasoning was mediated by the variable moral disengagement. In their study, a large sample of undergraduates reacted to four ethics vignettes based on typical organizational dilemmas (e.g., shortcuts in production, failing to highlight inaccuracies in financial documents, etc.) and were asked to indicate the likelihood that they would commit the unethical behaviors in the scenarios. As predicted, psychopathy was positively related to individuals’ self-reported willingness to commit unethical acts (Stevens et al. 2012). Given the positive relationship between psychopathy and unethical decision making, it follows that as levels of psychopathy increase, recognizing an ethical issue, the first step in the ethical decision-making process, would decrease. The following hypothesis is therefore proposed:

Hypothesis 2: Increased psychopathy is associated with decreased recognition of an ethical issue.

Workplace Bullying and Recognition of an Ethical Issue

Workplace bullying has significant effects on both targets and observers in the workplace. As mentioned earlier, bullies and psychopaths can be different people, but there appears to be a

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noteworthy overlap in expressed deviant behavior (Babiak and Hare 2006; Boddy 2014). Therefore, both victims and observers of this dysfunctional behavior are, over time, likely to incorporate these behaviors themselves and/or come to accept them as normalized organiza- tional behavior (Giorgi et al. 2015), which triggers the spiraling/spillover of misconduct.

A number of potential affective/attitudinal (e.g. job satisfaction and commitment), health/well- being (e.g. mental and physical health), and behavioral outcomes (e.g. performance) have been associated with bullying (e.g., Giorgi 2012; Nielsen and Einarsen 2012). Mayhew et al. (2004) found that violent acts at work such as bullying could precipitate severe emotional trauma in employees. Unfortunately, individuals may experience a constellation of these negative outcomes, which could fundamentally affect other work responses. Successful psychopaths who bully, and others who adopt similar behaviors, may focus on short-term gains in individual performance outcomes to rationalize their actions (Babiak and Hare 2006), while long-term cumulative impacts of bullying at the organizational level are likely to be detrimental to a company and its performance (Samnani and Singh 2012; Vega and Comer 2005). Giorgi (2012) indeed determined that workplace bullying was negatively related to a positive organizational climate.

When bullying spirals and/or spills over, there is reason to believe that ethical dissolution would result from an egoistic fixation on individual gains at the expense of others, and that these preferences can be driven by unethical corporate cultures, highly competitive workplaces, and social networks that allow and/or encourage dysfunctional behavior (Jackson et al. 2013). It has been proposed that bullying is a reflection of corruption in organizations (Hutchison et al. 2009; Vickers 2014), and a work environment affected by such corruption should function in a way counter to generally accepted ethical norms. According to McKay et al. (2008, p. 92):

Systematic bullying, hazing and abuse generally are identified with poor, weak or toxic organizational cultures. Cultures that are toxic have stated ethical values that are espoused but not employed, and other non-ethical values which are operational, dom- inant, but unstated. Such cultures thrive when good people are silent, silenced, or pushed out; when bad apples are vocal, retained, promoted, and empowered; and when the neutral majority remain silent in order to survive. Those who are most successful in such a toxic culture are those who have adapted to it, or adopted it as their own.

With regard to ethical decision making, deficits may occur in a person’s ability to recognize an ethical issue in situations where an unethical work environment motivates employees to adopt tendencies related to subclinical psychopathy and bully others. Given the constitutional features of lack of remorse, deception, unethical and antisocial behaviors (Neumann and Hare 2008), subclinical psychopathy may provide an explanatory mechanism in the pathway between workplace bullying and ethical reasoning. Social learning suggests that employees learn negative behavior (i.e. bullying) from their superiors (Bandura 2006; Boddy 2014). If those influential leaders and managers are both bullies and subclinical psychopaths, or they possess traits and preferences that are consistent with these behavioral patterns (disregard for rules, poor ethics, lack of consideration, short-term thinking; see Jackson et al. 2013), employees could also learn normative psychopathic responses to their decision-making at work, starting with ethical issue recognition. In essence, employees learn accepted workplace norms of deviant behavior (Giorgi et al. 2015) that manifests as insensitivity to ethical issues. Consequently, mediation is proposed in the following hypothesis:

Hypothesis 3: The relationship between perceived workplace bullying and recognition of an ethical issue is mediated (either fully or partially) by psychopathy.

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Method

Data Collection

Using contact information secured from a third-party commercial provider and a questionnaire containing ethics and employment-related items, data were collected from a national sample of 3000 selling and business employees.1 Once again, we contend that investigating issues relating to bullying and psychopathy are especially relevant to selling professionals because of their competitive, boundary spanning work environment that is replete with ethical dilemmas and interpersonal misbehavior (Darrat et al. 2010; Jelinek and Ahearne 2006; Valentine et al. 2015; Yoo and Frankwick 2013). A cover letter, questionnaire, and postage-paid return envelope were initially mailed to employees, and 95 questionnaires were received from this first wave of mailings. After a period of time spanning roughly three months, a second wave was mailed to the same individuals, and 43 forms were returned for a total of 138 questionnaires and a response rate of 4.73% taking into consideration ineligible forms.2 Based on an assessment of analysis of variance models, cross tabulations, and chi-square statistics (Armstrong and Overton 1977), differences were not identified across the two waves for the variables assessed in this study, leading to the conclusion that nonresponse bias was not problematic.

To obtain more information, data were also collected from a convenience sample of individuals employed at different organizations with locations in a southern area of the United States. The sampling frame was defined broadly to include individuals who participated in various organizational selling functions, but several other employees not involved in selling also completed the questionnaire. Subjects were provided a copy of the questionnaire, and in some cases, they were given extra copies so that additional coworkers could be recruited to participate. A total of 246 questionnaires were secured from this data collection round, which generated a total sample of 384 usable questionnaires. The answers provided on several sales demographic items indicated that well over 300 of these employees were engaged in selling as part of their jobs (made sales calls, had sales accounts, etc.).

The sample members had a mean age of 38.66 years. Almost 59% of individuals were male, nearly 71% were white, and just over 52% were married. Half of individuals had some college and slightly over 22% had a Bachelor’s degree. Almost 80% were employed full-time in their organizations, and their average job tenure was 8.21 years. Almost 41% were employed as sales/marketing managers, and just over 10% were general managers. Forty- four percent of firms operated in the wholesale/retail industry, over 15% operated in manufacturing/construction, and over 9% operated in services. Over 51% of companies employed fewer than 100 persons. These characteristics suggest that the combined samples provided a useful cross-section of businesspersons for this study, many of whom performed sales-oriented roles in their jobs.

Measures

Perceived workplace bullying was measured with the five-item Bergen Bullying Index (Einarsen et al. 1994). This scale provides a broad assessment of workplace misconduct,

1 The questionnaire was reviewed by two professors with strong reputations in business ethics and sustainability. 2 Our conjecture is that the low response rate was driven by the very sensitive nature of the study that required participants to reflect about bullying behaviors they may have experienced.

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and it demonstrates high internal consistency reliability with coefficient alphas ranging from .82 to .89 (Einarsen et al. 1994; Matthiesen and Einarsen 2007; Valentine et al. 2015). Sample items include “Bullying is a serious problem at my workplace” and “Bullying at my workplace reduces my work motivation.” Responses were provided on a seven-point scale anchored with 1 (Strongly disagree) and 7 (Strongly agree), and higher item values indicated increased perceptions of workplace bullying.

Subclinical psychopathy was evaluated with six items (see Valentine et al. 2017) taken from the primary subscale of the Levenson Self-Report Psychopathy Scale (Levenson et al. 1995; Lynam et al. 1999), which was developed for use with non-institutionalized populations with a coefficient alpha of .82 (Levenson et al. 1995). The overall self-report instrument consists of two subscales, primary and secondary. The primary scale is comprised of sixteen items and was designed to measure core affective and interpersonal features, while the secondary scale is comprised of ten items and was designed to assess socially deviant attitudes and traits. Items from the secondary psychopathy subscale, designed to assess impulsivity and a self-defeating lifestyle (Levenson et al. 1995), were not included on the questionnaire because this subscale is more associated with antisocial and criminal behavior (Smith and Lilienfeld 2013), often connected to clinical levels of psychopathy.

Responses on the sixteen items were given on a seven-point scale anchored by 1 (strongly disagree) and 7 (strongly agree); items were coded in a direction to show increased self-report psychopathy. Since the measure was being used to collect data from a unique, (mostly) sales- oriented population of business professionals, evaluation of the scale’s measurement properties was deemed necessary. Consequently, the final set of six items utilized were selected based on previous research (Valentine et al. 2017) and the results of two factor analyses using principal components extraction, with the final model producing a single-factor solution with loadings above .62, an eigenvalue of 3.19, and 53.15% of explained variance. Sample items of the scale are “I tell other people what they want to hear so that they will do what I want them to do” and “In today’s world, I feel justified in doing anything I can get away with to succeed.”

Similar to many other examinations of organizational ethics (e.g., Alexander and Becker 1978; Barnett 2001; Barnett and Valentine 2004; Reidenbach and Robin 1990; Valentine and Barnett 2007), this study relied on an ethical scenario to trigger subjects’ ethical reasoning (see Valentine et al. 2017). This particular scenario highlighted a situation in which a salesperson (Kim) is mistreated by a coworker (Jocelyn) who exhibits behaviors related to psychopathy and workplace bullying:

“Situation: Kim is a seasoned salesperson in an office supply firm that services many large corporate clients. A year ago, she was given several new sales accounts that had high potential, mainly because of her seniority in the sales department, as well as her popularity, easy-going nature, and preferences for teamwork (i.e., she sometimes gives sales leads away to help struggling associates). Unfortunately, she has been unable to sell enough merchandise to these new clients, and her current level of sales performance only “meets expectations” according to recent appraisals received from her sales manager. Jocelyn, a relatively new member of the sales department, subscribes to a different approach to selling that involves individualistic and assertive tactics, excessive networking with others, and impression management around important people, qualities that have often enabled her to get good sales leads and assignments and to effectively close deals. Jocelyn is upset because she thinks that Kim is not selling enough given her good sales leads, she’s too concerned about getting along with others, and she’s not

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political enough. Consequently, Jocelyn believes that Kim’s new accounts should be assigned to her to oversee and manage.

Actions: Jocelyn meets individually with members of the sales department to convince them that Kim’s new accounts should be assigned to her. While many disagree with Jocelyn, she convinces a core group of salespeople, including the sales manager, that Kim’s new clients should be given to her, which occurs during Kim’s next performance appraisal. Feeling empowered by this decision, Jocelyn begins to ignore, isolate, and criticize those who disagreed with her, while at the same time strengthening her relationships with those who supported her.”

Recognition of an ethical issue was measured with one item that asked respondents whether Jocelyn’s actions in the scenario involved an ethical issue, and responses were provided on a seven-point semantic differential scale anchored by 1 (“Completely disagree her actions involve an ethical issue”) and 7 (“Completely agree her actions involve an ethical issue”). Higher item scores indicated increased ethical issue recognition.3

Several variables were also included as controls in the analysis. Ethics research can be negatively impacted by socially desirable responding given issue sensitivity (Randall and Fernandes 1991). Strahan and Gerbasi (1972) developed and validated a shortened ten-item scale from the original 33 item Crowne and Marlowe (1960) social desirability scale. The scale was again validated by Fischer and Fick (1993). We employed this scale to assess socially desirable tendencies in subjects. Sample items are “I have never been irked when people expressed ideas very different from my own” and “I have never deliberately said something that hurt someone’s feelings.” Items were rated with a seven-point scale anchored by 1 (Strongly disagree) and 7 (Strongly agree) and coded so that higher scores showed increased social desirability. All item scores were added together and divided by the total number of items to obtain an overall composite score. The scale’s coefficient alpha was .64. In addition, a dichotomous variable indicating the type of sample (1 = national sample, 2 = regional sample) was also included as a control because multiple response differences were identified across these two groups. Finally, the hours of ethics training that individuals had received from their organizations in the last year was included as a control variable because training is thought to mitigate bullying and other counterproductive behaviors at work (Altman 2010).

Analysis

Using structural equation modeling and the AMOS software, the measurement characteristics of the focal constructs were evaluated. A measurement model containing the latent focal variables, the associated observed items, and the observed focal and control variables was specified in a confirmatory factor analysis (CFA). Composite reliability and variance-extracted scores were estimated for the latent focal variables using the associated observed item standardized parameters (Hair et al. 1998). The potential for common method bias was also assessed by specifying a single-factor model (Podsakoff et al. 2003); all of the observed items

3 While it is generally advisable to employ multiple-item measures rather than single-item measures, we were concerned with survey length and response-rate issues, thus prompting us to employ a more global single-item measure for recognition of an ethical issue. In support of this strategy, we cite Diamantopoulos et al. (2012, pp. 444–446), who contended that researchers are justified in employing single-item measures when 1) small sample sizes are expected due to budgetary and/or subject recruitment challenges, 2) the research is exploratory in nature, and 3) the construct is widely-understood and may therefore be meaningfully measured using a single item.

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and observed focal/control variables were loaded on one latent factor to determine whether such a model produced acceptable fit statistics and item loadings. Variable descriptive statistics and correlations were then estimated in SPSS using the observed control and focal variables, as well as the composite scores derived from averaging the relevant items for the latent variables; reliability statistics (coefficient alphas) were also evaluated. Finally, hypothesis testing was conducted in AMOS by specifying a full mediation structural model that contained the latent focal variables, observed items, and observed focal/control variables. A second partial medi- ation model was then specified by adding an additional constraint (a path between the independent and dependent variables) to the structural framework and determining whether there was a significant improvement in model chi-square.

Results

Confirmatory Factor and Single-Factor Models

The model fit statistics for the CFA were acceptable (see Table 1). In addition, the observed items were related to the latent focal variables (p < .001), and the standardized estimates were above .50 (see Fig. 1). There was a number of significant covariances, and the relationships were in the directions proposed. The composite reliability scores for workplace bullying and psychopathy were .88 and .82, and the variance-extracted estimates were .61 and .44. The variance-extracted estimates for the workplace bullying and psychopathy variables were higher than their associated squared correlation, which indicated reasonable discriminant validity (Fornell and Larcker 1981). The single-factor model did not produce acceptable fit statistics (see Table 1), which suggested that common method bias was likely not a concern.

Variable Descriptive Statistics, Correlations, and Reliability Statistics

Table 2 presents the variable information and correlations. The mean value for perceived workplace bullying showed that such misconduct was not overly prevalent, and the mean value for psychopathy indicated that individuals exhibited only moderate tendencies toward socially aversive behavior. The mean value for ethical issue recognition indicated that indi- viduals perceived only moderately that the scenario contained an ethical problem, and the mean value for social desirability indicated only modest tendencies toward impression man- agement. The correlations indicated that perceived workplace bullying was positively related to psychopathy (p < .01) and the national vs. regional sample variable (p < .10) (individuals in the regional sample scored higher in perceived workplace bullying). Psychopathy was

Table 1 Model fit statistics

Model x2 df p x2 / df NFI IFI CFI RMSEA

Confirmatory factor analysis 240.083 79 .000 3.039 .893 .926 .924 .073 Single-factor model 1382.840 90 .000 15.365 .383 .399 .391 .194 Full mediation structural model 241.037 80 .000 3.013 .892 .925 .924 .073 Partial mediation structural model 240.083 79 .000 3.039 .893 .926 .924 .073

Default models reported; x2 / df = relative chi-square, NFI normed fit index, IFI incremental fit index, CFI comparative fit index, RMSEA root mean square error of approximation; N = 384

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negatively related to recognition of an ethical issue (p < .05) and social desirability (p < .001) and positively related to the national vs. regional sample variable (p < .001) (individuals in the regional sample scored higher in psychopathy); the negative relationship between social desirability and psychopathy confirms the notion that individuals who score high in impression management (including individuals who exhibit traits consistent with psychopathy) will be reluctant to disclose any negative behavioral tendencies on a questionnaire. Sample type and social desirability were also negatively related (p < .05), with individuals in the regional sample scoring lower in social desirability than individuals in the national sample; sample type and hours of ethics training were positively related (p < .01), with individuals in the regional sample receiving comparatively more ethics training than individuals in the national sample. The multi-item scales had acceptable internal consistency reliability with coefficient alphas that were above .60.

Recognition of an

ethical issue

-1.94(-.03)

-.03(-.02) .03(.02)

National vs. -.05* (-.12) Social

.07(.03) regional sample desirability -.32*(-.14)

(control) (control)

.03(.06) -.44***(-.49)

1.88**(.15) .00(.00)

.09^(.09) Hours of .14***(.28)

ethics training

(control)

Perceived 1.45(.05) -.19(-.01) Psychopathy

workplace bullying (subclinical)

.12^(.10)

Pwb5 1.93***(.86)

1.00(.73) P(s)1

.94***(76) P(s)2

Pwb1 Pwb2 Pwb3 Pwb4 1.07***(.71) P(s)3 P(s)4 P(s)5 P(s)6

1.00(.55) 2.13***(.91) 2.18***(.95) .86***(.52) . .84***(.50) 1.00***(.60) 1.08***(.65)

Fig. 1 Confirmatory factor analysis; notes: *** p < .001, ** p < .01, * p < .05, ^ p < .10; N = 384; standardized parameter estimates and correlations presented in parentheses (); dotted lines represent control variables and relationships

Table 2 Variable descriptive statistics, correlations, and reliability statistics

Variable M SD N α 1 2 3 4 5 6

1. Perceived workplace bullying 2.84 1.88 373 .88 — 2. Psychopathy (subclinical) 2.05 1.11 372 .81 .17** — 3. Recognition of an ethical issue 4.18 2.30 362 — .03 −.12* — 4. National vs. regional sample (control) 1.64 .48 384 — .10^ .23*** −.02 — 5. Social desirability (control) 4.80 .87 364 .64 .08 −.42*** .01 −.12* — 6. Hours of ethics training (control) 7.72 25.57 331 — .04 −.02 −.03 .15** .01 —

***p < .001

**p < .01

*p < .05, ^ p < .10

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Structural Models

Figure 2 presents the results of the mediation analysis. The full mediation structural model had acceptable fit statistics (see Table 1), and the observed items were all related to the latent focal variables (p < .001). After controlling for the impact of sample type, social desirability, and hours of ethics training, increased perceived workplace bullying was associated with increased psychopathy (p < .01), which provided support for Hypothesis 1. Increased psychopathy was also associated with decreased recognition of an ethical issue (p < .05), providing support for Hypothesis 2.

The partial mediation structural model also had acceptable fit statistics (see Table 1), and the observed items were once again related to the latent focal variables (p < .001). After controlling for the impact of the three control variables, increased perceived workplace bullying was associated with increased psychopathy (p < .01), and increased psychopathy was also associated with decreased recognition of an ethical issue (p < .05). These findings provided further support for Hypotheses 1 and 2. The additional constraint between perceived

Recognition of an

ethical issue

-.00(-.04)

.11(.02) -.17(-.06)

National vs. -.05* (-.12) Social

regional sample desirability -.39*(-.17)

(control) (control)

.15(.07) -.57***(-.48)

1.88**(.15) .00(.00)

.13^(.10) Hours of .46***(.22)

ethics training

(control)

Perceived .00(.04) -.00(-.05) Psychopathy

workplace bullying (subclinical)

.13**(.14)

Full mediation structural model

Recognition of an

ethical issue

-.00(-.04)

.10(.02) -.20(-.08)

National vs. -.05* (-.12) Social

.11(.05) regional sample desirability -.42*(-.19)

(control) (control)

.15(.07) -.57***(-.48)

1.88**(.15) .00(.00)

.13^(.10) Hours of .46***(.22)

ethics training

(control)

Perceived .00(.04) -.00(-.05) Psychopathy

workplace bullying (subclinical)

.13**(.14)

Partial mediation structural model

Fig. 2 Mediation analysis; notes: *** p < .001, ** p < .01, * p < .05, ^ p < .10; N = 384; standardized parameter estimates and correlations presented in parentheses (); dotted lines represent control variables and relationships; parameter estimates associated with measurement model not shown

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workplace bullying and recognition of an ethical issue that was added to the structural model was positive and insignificant (p = .3295), and this path did not produce a significant change in chi-square (chi-square difference = .954, d.f. difference = 1, p > .30), which suggested that the full mediation structural model was the superior framework. Consequently, adequate statistical support was provided for Hypothesis 3, specifying that full mediation was present. Perceived workplace bullying operated through psychopathy to influence recognition of an ethical issue.4

Synopsis of Findings

Overall the findings provided additional insight and understanding regarding the complex relationships assessed. For example, Hypothesis 1 was supported, meaning that there was a positive association between perceived workplace bullying and subclinical psychopathy. This significant relationship suggests that employees with subclinical psychopathic tendencies are more likely to have experienced latent bullying, or vice versa. The results also supported Hypothesis 2, which proposed that employees with subclinical psychopathic tendencies exhibit weaker ethical reasoning. Therefore, such employees appear to be less likely to recognize an ethical issue when it arises compared to employees who do not possess such tendencies, probably because the unethical behavior in question is more consistent with behavioral norms of those with subclinical psychopathic tendencies. Finally, Hypothesis 3 focused on improving understanding of the complex interrelationship between perceived workplace bullying, sub- clinical psychopathic tendencies, and recognition of an ethical issue. Specifically, the findings underscored that the association between perceived workplace bullying and recognition of an ethical issue is fully mediated by psychopathy. Psychopathy appears to alter the relationship between bullying experiences and recognition of an ethical issue by both clarifying and governing the nature of the relationship between the two.

Discussion

The purpose of this study was to investigate the degree to which perceived workplace bullying, individual tendencies toward (subclinical/corporate) psychopathy, and ethical decision making are interrelated in business organizations. This inquiry is important because little is known about the complex interrelationships (Stevens et al. 2012) relating to how perceptions of bullying interact with psychopathy to influence the ethical reasoning, specifically ethical issue recognition. The study relied on a sample containing mostly sales-oriented professionals (supplemented with several other businesspersons) because the boundary spanning and highly competitive environment often found in the sales industry contains a variety of ethical challenges that may trigger bullying and other behaviors consistent with psychopathy (Darrat et al. 2010; Jelinek and Ahearne 2006; Valentine et al. 2015; Yoo and Frankwick 2013). This inquiry is especially concerned with the spiraling/spillover impact of bullying and psychopathy given the potential negative “ripple effect” that such negative deviance can advance in the workplace. This is important given that organization bystanders to bullying can be profoundly influenced by perpetrator-victim interactions (Lutgen-Sandvik et al. 2007; Parzefall and Salin 2010).

4 Full mediation was present because a significant relationship was not identified between perceived workplace bullying and ethical issue recognition in the presence of psychopathy.

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The results of this study have some bearing on the notion that workplace conflict is related to negative individual traits and decision making, which yields several important implications for managing incivility. The results indicated that persons who perceived increased bullying in the workplace and exhibited tendencies related to psychopathy were less able to recognize an ethical issue (related to this mistreatment of a work colleague) than were persons who perceived lower workplace bullying and did not possess traits consistent with psychopathy. Accordingly, employees susceptible to psychopathy may trigger or accentuate negative workplace activity, thus perpetuating a bully spiral or spillover. If one is unaware that an unethical dilemma exists, an individual is less likely to engage in appropriate moral reasoning to correct one’s own behavior, thus increasing the spiraling and/or spillover of misconduct. Therefore, individuals who exhibit subclin- ical psychopathy, manifested in deceitful charm, impression management, and the manip- ulation of others, appear to be more prone to unethical reasoning in bullying situations, making them more likely to perpetuate bullying due to a lack of ethical sensitivity.

Given these results, managers in both the sales industry and other professions must determine how to shield organizations from a reduced ethical work context. If the workplace is already affected by widespread bullying and other unethical behaviors, then they must determine how the damage can be arrested and reversed. Clearly, leadership must minimize bullying and psychopathy before they spiral and spill over. Our findings suggest that organizations with toxic behavioral norms, including bullying and psychopathy, may employ individuals who are less able to recognize ethical issues related to such misconduct. Furthermore, past work indicates that if these negative behaviors are tolerated in organiza- tions, the ethical context may eventually become toxic and viral in nature (Giorgi et al. 2015; Power et al. 2013). This is particularly true in cultures with a high-performance orientation, and where bullying and subclinical psychopathy are permitted to spread to a point that employees eventually perceive that such negative behavior is acceptable (Giorgi et al. 2015; Power et al. 2013). As stated previously, such an environment may exist within the field of sales (Darrat et al. 2010; Jelinek and Ahearne 2006; Yoo and Frankwick 2013). The lack of ethical awareness, a factor explored in this study, may be further exacerbated by an acceptance and tolerance of negative behaviors that are perceived to yield optimal perfor- mance. This chain of events could further trigger ethical denigration in a company and among salespeople that may ultimately lead to severe consequences. Therefore, if managers do not take action to mitigate concerns over such dysfunctional behaviors, organizations and their employees may ultimately be harmed.

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HBS Senior Lecturer Jill Avery and Professor Thomas Steenburgh (University of Virginia) prepared this case. It was reviewed and approved before publication by a company designate. Funding for the development of this case was provided by Harvard Business School and not by the company. Jill Avery has served as a paid consultant to HubSpot. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2018, 2019 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545- 7685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.Case study

J I L L A V E R Y

T H O M A S S T E E N B U R G H

HubSpot and Motion AI: Chatbot-Enabled CRM On September 20, 2017, HubSpot, an inbound marketing, sales, and customer relationship

management (CRM) software provider, announced that it had acquired Motion AI, a software platform that enabled companies to easily build and deploy chatbots to interact with their customers. Chatbots were pieces of conversational software powered by artificial intelligence that had the capability to engage in one-to-one chats with customers on their preferred chat platform, such as Facebook Messenger or WeChat. Fueled by pre-programmed algorithms, natural language processing, and/or machine learning, chatbots conversed in ways that mimicked actual human communication.Case study

Since its founding in November 2015, Motion AI had facilitated the building of 80,000 bots for brands including T-Mobile, Kia, Sony, and Wix, which were busy conversing with customers via 40 million total chat messages sent to date. The software was simple to use and enabled anyone, regardless of their level of technical knowledge, to build and manage a chatbot. The entire Motion AI team, including founder and CEO David Nelson, joined HubSpot following the acquisition.

HubSpot saw great potential for chatbots for its business-to-business (B2B) customers, who could use them to automate many of their customer interactions that were staffed by humans at the time of the acquisition. Unlike other automated customer service solutions, such as interactive voice telephone response (IVR) systems that were almost universally disliked for their robotic nature, chatbots were getting closer to passing the Turing Test, simulating a human conversational partner so well that it was difficult to sense when one was chatting with a machine. Thus, chatbots had the potential to enable a company to nurture and manage one-to-one customized relationships with prospects and customers efficiently at scale by making artificial intelligence the new frontline face of their brands.

Chief Strategy Officer Brad Coffey and Chief Marketing Officer Kipp Bodnar were responsible for working with Nelson to bring Motion AI’s technology into the HubSpot family of products. Before unleashing bot-building technology to its customers, HubSpot first needed to develop some best practices for the use of chatbots for CRM. Without proper instruction, Coffey worried that companies, in their rush to incorporate the newest marketing technology, would build bots that would do more harm to their brands than good. He prognosticated:

In the not-so-distant future, there’s a bleak, forsaken landscape. Civilization, absent. Communication channels, silent. All of the people have fled, terrorized by never-ending notifications and antagonizing messages. What could cause such a desolate scene? Bad

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bots. Okay, maybe that sounds a bit too much like the next superhero blockbuster. But it wouldn’t be the first time that brands abused a new technology until people were buried in spam up to their eyeballs.

He continued, “Five percent of companies worldwide say they are using chatbots regularly in 2016, 20% are piloting them, and 32% are planning to use or test them in 2017. As more and more brands join the race, we’re in desperate need of a framework around doing bots the right way—one that reflects the way consumers have changed.”

The Motion AI technology would be incorporated into HubSpot’s product over the next few months, so the team had little time to make some important decisions. First, they had to clearly assess the implications associated with the use of bots versus humans to create, nurture, and manage customer relationships, and determine whether and where bots were appropriate for use during marketing and selling processes. Second, they had to decide to what extent to anthropomorphize chatbots. How human-like should they be? Was a conversational user interface (UI) the desired solution, or would a more functional UI produce more efficiency for customers? How much should the bot embody the brand’s personality or mimic the conversational style of an individual user? Should users know when they were interacting with a bot, or could human-like bots create stronger relationships?Case study

Historically, HubSpot had “practiced what it preached,” using its own products to build its business. Coffey and his team had to consider whether to use chatbots to nurture and service its own customer relationships. Currently, a team of chat representatives worked to engage, nurture, and prime prospects for HubSpot’s sales team. Could they and should they be replaced with chatbots? Was HubSpot ready for bots to become the face of its brand to prospective customers?

HubSpot’s Acquisition of Motion AI

HubSpot was founded in 2006 as an inbound marketing software-as-a-service (SaaS)a solutions provider that helped primarily business-to-business (B2B) companies develop online content, attract visitors to the content, convert the visitors into sales leads, and finally acquire the visitors as customers. HubSpot’s software helped companies develop, host, disseminate, and analyze digital content to execute inbound marketing programs, a collection of marketing strategies and techniques focused on pulling relevant prospects toward a business and its products during a time when these prospects were actively searching for solutions.

In 2016, HubSpot’s revenues were up 49% to $271 million and were derived from 23,226 small and medium-sized business (SMB) customers (see Exhibit 1 for the company’s financials). The company was excited to expand its value proposition and reposition itself as a robust, multi-product growth stack platform that helped SMBs combine all of their marketing, sales, and customer success software solutions into one convenient and easy-to-use platform. The growth stack platform was premised on delivering a promise “to fuel your growth and build deeper relationships, from first hello to happy customer and beyond,” and included three product solutions:

• Marketing Hub: Grow your traffic and convert more visitors into customers. Prices ranged from $50/month for a starter package to $2,400/month for an enterprise solution.

a HubSpot’s software was sold via a software-as-a-service (SaaS) model, where users paid a recurring monthly fee to access the software.

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• Sales Hub: Drive productivity and close more deals with less work. Prices ranged from $50/month for a starter package to $400/month for a higher-end, professional solution.

• Customer Hub: Connect with your customers on their terms and help them succeed. As of September 2017, HubSpot was offering this product free with its other products.

At the heart of the new platform was the free CRM system that allowed companies to collect and analyze deeper insights on every contact, lead, and customer. A feature called “Conversations” empowered the CRM tool to collect customer conversations from Facebook Messenger, web chat, social media, email, and other messaging outlets into one cross-team inbox to help marketing and sales teams manage, scale, and leverage one-to-one communications with their customers across all conversation channels. With its acquisition of Motion AI, HubSpot was hoping to further power efficient and effective customer conversations for its clients by introducing chatbots that would better engage, convert, close, and delight their customers at scale. Said Bodnar:

Today’s buyers expect that conversations with a business happen where they are. That might be the website, but it could also be social media, Skype, Slack, or any messaging app. They expect that conversations are portable. Regardless of where a conversation gets started, it should be able to be transferred to any other channel seamlessly. A thread kicked off on live chat should be able to be passed to Facebook Messenger or email without data loss or crossed wires. And, they expect that conversations have context. Context shouldn’t leave with the person who fielded the initial inquiry. All of a customer’s historical interactions and information should be attached to a common record which populates instantaneously. We need new technology paired with automation to live up to our buyers’ expectations and make these types of conversations a reality.

The Market for Chatbots Chatbots were part of a wave of new artificial intelligence tools that were changing the way people

interacted with technology. Digital virtual assistants housed in a smartphone, desktop, or laptop computer, such as Apple’s Siri and Microsoft’s Cortana, had paved the way for person-bot communication. More recently, Amazon’s Alexa, which could be awakened at any time by a voice prompt that spoke her name, provided ambient virtual assistance to consumers in their home.

Unlike these virtual assistants, chatbots were less sophisticated and tended to specialize in executing simple tasks rather than providing omnipresent and wide-ranging functionality (see Exhibit 2). While the most advanced virtual assistants were powered by artificial intelligence, which enabled them to understand complex requests, personalize responses, and improve interactions over time, most bots in 2017 followed a simple set of rules programmed by a human coder who simulated a typical conversation. The coder programmed the bot to prompt a conversation by delivering a series of queries to a customer and then to answer the customer with canned responses triggered by simple if-then statements. Explained Derek Fridman, Global Experience Director at Huge, a digital agency that helped its clients build chatbots, “The illusion that HAL [the computer from the movie 2001: A Space Odyssey] is out there, and the machine is alive is just that: an illusion. There’s machine learning taking place and algorithms making decisions, but in most cases, we’re scripting sequences.”1

According to McKinsey & Company,2 technology companies spent between $20–$30 billion on artificial intelligence in 2016. The market for chatbots was estimated to be $1 billion and was expected to nearly double by 2020 and triple within a decade. A 2017 Forrester study3 claimed that worldwide, 57% of firms were already using chatbots or planned to begin doing so shortly, and 80% of businesses

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wanted chatbots in place by 2020. In the U.S., 31% of marketers already used chatbots to communicate with consumers, with 88% of them deployed on Facebook Messenger. After Facebook opened its Messenger platform to chatbots in 2016, 100,000 were created within the first year.4

Another 2017 study5 found that among companies using AI, the most common use cases were customer service (39%), marketing and sales (35%), and managing noncustomer external relations (28%). (See Exhibit 3 for examples.) It was estimated that in 2017, 60% of customer service support issues could be resolved by chatbots—and that number was expected to be 90% by 2020. Companies were finding that chatbots completed customer interactions at twice the speed and a fraction of the cost of human-provided telephone support. Oracle estimated that the cost of building a chatbot ran from $30,000 to $250,000 depending upon its sophistication. While chatbots were reportedly saving businesses $20 million per year in 2017, they were expected to help cut costs by more than $8 billion per year by 2022.

Chatbots and CRM HubSpot’s CEO, Brian Halligan, was excited by the potential, saying, “It’s impossible to ignore the

impact of chat and messaging, not just on the way B2B companies operate, but on society as a whole. We’re in the midst of a massive shift as businesses embrace this new platform and consumers come to expect more immediate, always-on communication from brands.” Coffey echoed his enthusiasm:

There’s no downplaying what bots could do. For brands and consumers alike, we have a chance to facilitate a new type of communication and commerce. Research would be convenient, purchases streamlined, and service personalized. A conversational interface, powered by bots, can facilitate a response that’s as fast as talking to a human, with the depth of a full website, and a simple texting-like interface that everyone is already accustomed to using.

Bots provided instant responses to customers’ needs without the stress of waiting in a call queue or having to call during business hours. Calling or emailing a company was quickly falling out of favor with consumers; TechCrunch reported that 9 out of 10 consumers wanted to use messaging to interact with companies. Because chatbots were deployed within messaging app platforms, such as Facebook Messenger, WhatsApp, and WeChat, customers could speak with a company and accomplish their task without having to leave their preferred chat interface and without the hassle of downloading yet another app to their smartphones or visiting a company’s website. Five billion active users accessed messaging apps each month, and their usage had surpassed that of social networks. According to Facebook, “convenience creates closeness . . . messaging makes commerce personal.”6 Research showed that 63% of people said chatting with a business made them feel more positive about the relationship, 55% were more likely to trust the business as a result of their chat conversations, and 53% were more likely to shop with a business they could contact via a messaging app.

HubSpot’s own research showed that consumers were showing greater interest in using messaging apps (see Exhibit 4). Explained Public Relations Manager Ellie Botelho, “Consumers want to be able to engage with a company when and where it’s personally convenient for them, meaning that businesses that are unable to respond quickly are leaving money on the table.” Added Coffey, “The way folks communicate externally is shifting towards messaging. Large companies manage these via live chats with an army of employees responding in real time. Few smaller companies can pull that off.”

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Delivering a Human Touch via Artificial Intelligence

A Preference for Humans?

By 2017, consumers could order a Domino’s pizza, hail an Uber, book a flight via Travelocity, and reorder their favorite lipstick from Sephora via chatbots, all without leaving Facebook Messenger. The B2C world was rapidly adopting chatbots as an efficient way to execute simple transactions with customers without devoting human resources to them and without forcing consumers to visit their websites or mobile apps. Chatbots could be deployed to help with many different types of customer interactions that were common in B2B customer relationships, such as booking meetings, qualifying leads, diagnosing problems, and providing customer service to solve them—but it was unclear whether B2B customers would be open to robotic rather than human support, as B2B customers were often more demanding than B2C customers. “It’s no secret that today’s consumers expect personalized, relevant, contextual, and empathetic brand interactions throughout the entire buying process,” proclaimed digital analyst PJ Jakovljevic.7 B2B customer relationships were often more complex, more relational, and less transactional, so they often required the deft touch of a highly trained consultative salesperson.

“Chat is good when powered by humans. Chat is awesome when powered by AI,” claimed Christopher O’Donnell, HubSpot’s Vice President of Product. Bodnar, however, wasn’t so sure, responding, “Automation is a funny thing. Too little is the enemy of efficiency. Too much kills engagement.” He continued:

Think about email. Automated email nurturing campaigns were the answer to individually following up with every single person who downloaded a piece of content from your website. In the name of efficiency, marketers queued up a series of emails via workflows to automatically deliver ever-more-helpful content and insights, gradually increasing the person’s trust in the company and stoking the flames of their buying intent. If at any time they had a question, they could respond to the email and get routed to a person who could help. But as the number of inbound leads skyrocketed, this system became untenable. The dreaded noreply@company.comaddress was the solution for scalability. Over time, this set the expectation with buyers that marketers didn’t want to have a conversation with them via email. Automation made us more efficient, but at the cost of relationships—ultimately defeating the purpose.

Then came live chat. Buyers were empowered to get answers to their questions in real time from a real person. Better yet, this interaction took place directly on the company’s website—where they were already doing their research. We started using website chat at HubSpot in 2013. Over the past four years, live chat has facilitated countless conversations between curious prospects and our business. But, just like what happened with email nurturing, at a certain point the system started to strain. According to our usage data, one in every 30 website visits results in a chat. For companies that receive thousands of website visits a day, trying to keep up is daunting. And, customers are again the ones suffering when companies can’t manage the demands of live chat.

Recent research found that 21% of live chat support requests go completely un- answered. Even if the buyer gets a response, they can expect to wait an average of two minutes and 40 seconds for it. I wouldn’t call this “live”—would you? Responding slowly (or failing to respond at all) on a channel advertised as “live” is a contradiction in terms. Forcing customers to wait after we’ve set the expectation of immediacy is unacceptable. We can do better. Today, we’re at the same inflection point we came to with email. What

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should companies do to accommodate the tidal wave of live chat conversations? Hiring an increasing number of chat coordinators clearly isn’t a scalable answer. If marketers are going to advertise “live” channels—we need to step up and deliver.

Consumer research offered conflicting opinions. While 40% of people claimed they didn’t care if they were serviced by a person or an AI tool as long as they were helped quickly and easily, 42% of people wanted a human agent to help answer complex questions and requests. Moreover, 75% of people didn’t think chatbots would be sufficient for complicated troubleshooting, and 90% felt they should always have the option to transfer to a live agent. Direct experience with existing IVR phone systems and online chat demonstrated that many consumers still preferred speaking with a live customer service representative in an instantaneously synchronous manner, pressing “0” for an operator in IVR phone systems, and bailing out of online chat conversations to dial in to a call center for help.

Botched Bots

Although bots were chatting with customers at astonishingly high rates in 2017, their record of success was less high-flying. Facebook reported that chatbots failed to serve customer needs 70% of the time. As another example, only 12% of bot interactions in the health care sector were completed without the need to pass off the customer to a human operator. Lamented Coffey:

Bots provide a scalable way to interact one-on-one with buyers. Yet, they fail when they don’t deliver an experience as efficient and delightful as the complex, multi-layered conversations people are accustomed to having with other humans. Too often, bots today don’t understand conversational context, or forget what you’ve said two bubbles later . . . . Consider why someone would turn to a bot in the first place. Of the 71% of people willing to use messaging apps to get customer assistance, many do it because they want their problem solved, quickly and correctly. And, if you’ve ever struggled to have Siri or Alexa understand what you’re asking, you know there’s a much lower tolerance for machines to make mistakes.

Despite rapid advances in artificial intelligence, most chatbots were still quite reactive and “dumb.” Programmed to only recognize a very limited set of commands, they had difficulty with back-and-forth conversation with humans. According to Tim Tuttle of MindMeld, “The opportunity is clear, but today most companies still have huge challenges building chat applications that actually work. The industry is in a state of shock at how hard this is.”8 Explained Sarah Guo of Greylock Partners, “Language is hard to model (and program) because it is so ambiguous. Similar sentences can have very different meanings; seemingly different sentences can have the same meaning. Humans are strange, unruly, unconscious, and inconsistent in their communication, but make up for that by being so flexible in their ability to understand imperfect, ambiguous communications from others—based on context.”9 While humans effortlessly dealt with this complexity of language, bots stumbled.

While advancements in machine learning were helping, AI required “big data” to be effective, said Robert C. Johnson, CEO of TeamSupport: “Accurate machine learning requires a huge number of data points and experiences to pull on. Without that volume, you really can’t do machine learning. In B2B interactions, you’re dealing with a lower volume of interactions but higher complexity, which can lead to higher error rates. Chatbots are good for B2C interactions where there’s a high volume and the value of each customer is not very high.”10 Bots also struggled to handle complex problem solving. Explained Daniel Polani of the University of Hertfordshire:

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There is an art to handling the exception, and good customer service is often about the unusual or unanticipated cases involving potentially angry customers. While chatbots can convincingly source answers to basic questions, AI isn’t yet smart enough to deal with the rare and exceptional examples . . . . Automated systems might be able to handle regular cases. But they can’t yet adapt themselves to exceptional circumstances or even recognize that the flexibility of human intervention is needed. And . . . some situations require not just human understanding and problem solving, but a level of compassion and empathy. A chatbot can be programmed to adopt a certain style of interaction, but that will still sound oddly out-of-place in unexpected or difficult contexts.11

However, much of the challenge of creating an effective chatbot derived not from the limitations of the technology, but rather from the difficulties associated with designing a conversational UI—one that anticipated the conversational flow that a bot would need to have with diverse customers. “The difficulty in building a chatbot is less a technical one and more an issue of user experience,” said Matt Harman, Director of Seed Investments at Betaworks.12 Proclaimed Bodnar, “We need conversational strategy and the automation of bots. This is what will make us more efficient, but more importantly, more effective for our customers. This is automation that creates relationships instead of frustration.”

Coffey believed that chatting with a bot should be like talking to a human that knew everything. But, Altimeter suggested, emotional intelligence was as important as IQ: “Detecting emotion, expressed in word choice or tone, [is] also critical to ensure that conversational experiences are satisfying for users.”13 A strong conversational UI could capture users’ attention through an engaging and evolving narrative that combined automation with intimacy. However, this required significant relational intelligence and the ability to perceive differential relational styles and trajectories. Clara de Soto of Reply.ai agreed, saying, “You’re never just ‘building a bot’ so much as launching a ‘conversational strategy’—one that’s constantly evolving and being optimized based on how users are actually interacting with it.”14 And this was difficult, explained David Shingy of AOL: “The challenge [with chatbots] will be thinking about creative from a whole different view: Can we have creative that scales? That customizes itself? We find ourselves hurtling toward another handoff from man to machine— what larger system of creative or complex storytelling structure can I design such that a machine can use it appropriately and effectively?”15 According to Advertising Age’s Annie Fanning:

Fully owning your conversational relationship with your customers requires building a brand-specific chatbot personality . . . you’ll need word nerds on both the front and back end to feed and teach your new baby chatbot. Not only does someone need to craft chatbot responses with personality (brand-guided voice and tone) but a writer/strategist/UX expert will need to think through the customer journey and provide sample customer input. To build an effective bot, every use case needs to be considered and a chatbot response written for every type of interaction you can think of . . . . This means knowing what your customers are asking, and how they [will] phrase their questions, is just as important as knowing how the bot will respond.16

Consumers were getting frustrated with many of the bots with which they interacted. Said one after interacting with travel-related bots, “Every experience I’ve had has been a total waste of time. I would love to hear at least one positive anecdote about using artificial intelligence.”17 Fanning cautioned marketers about the downside of bots, remarking, “When a chatbot guesses wrong and serves up content we didn’t ask for, it is at best hilarious, but at worst offensive and embarrassing.”18 Echoed USA Today, “These early days of . . . bots . . . are a cautionary tale. Technology may be good and getting better but nothing replaces a person. That’s unlikely to change for a while, and maybe ever.”19

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How Human Is Too Human?

As HubSpot looked ahead to a world of chatbots, one thing it needed to address was to what extent bots should behave like humans. Some were suggesting that companies should not disclose that customers were interacting with AI, but rather, allow them to assume that they were chatting with a live human in order to reap the benefits of human-built relationships. Said Beerud Sheth of Gupshup, a bot creation platform, “Chatbots are everywhere. Inside a messaging app, everything is just a thread. If you’re chatting with an entity, it could be a human or just as easily be a program. Businesses can now develop a whole range of services that to the user seem like just another user you’re messaging.”20 “People don’t even always know they’re interacting with bots. The whole thing only works when it’s just so easy that you don’t even think about the fact that it’s a bot,” said Matthew Hartman of Betaworks.21 Left to their own devices, humans had a tendency to interpret computer-generated conversation as coming from a person anyway, so customers often anthropomorphized chatbots, observed Arte Merritt, CEO of bot analytics platform Dashbot: “People think about bots for customer service, but they’re so much more . . . . Users treat the bots as people.”22 In a humorous example, the company x.ai humanized its meeting scheduling bot so well that customers were asking “Amy” out on dates, not realizing that “she” was an AI-driven personal assistant.23

This often led to an uncomfortable situation labelled “the uncanny valley.” While people generally preferred to engage with computer programs that were more rather than less human-like, their response to an anthropomorphized robot would abruptly shift from empathy to revulsion if the robot suddenly failed to act human enough. Explained Justine Cassell of Carnegie Mellon, “When a bot is clearly a bot, the person interacting with it generally knows how limited its functions are . . . The bot’s narrowly defined purpose guides the human that’s interacting with it. By contrast, a smooth-talking virtual assistant that tries to mimic human speech . . . can create different assumptions. The more human-like a system acts, the broader the expectations that people may have for it.”24

However, hiding the fact that a customer was interacting with a bot might make it awkward to manage the handoff from bot to human when things went wrong. The chatbots of 2017 were not ready to handle most customer interactions from start to finish; in fact, marketers reported that chatbots were able to conduct less than 20% of a consumer interaction before they had to pass the conversation off to a live customer service representative. Advised Bodnar, “Businesses need to help bots and human service reps to ‘tag team.’ When a complex question arises, the right technology can loop in a human chat coordinator, and provide a unified record of everything that’s happened in this interaction as well as the customer’s entire history. This way, the context never gets left behind in the handoff between bot and human, or the switch from one communication channel to another.”

Thus, HubSpot had to decide whether to advise its customers to build their apps with a human-like conversational UI or a more utilitarian, non-human, “get things done efficiently” functional UI. People in the digital age had already been trained to use functional UIs such as search and menu-driven systems, which were efficient and straightforward and offered a streamlined path to an answer. Bots should be solution-focused, warned Coffey, particularly for busy B2B customers:

The challenge of building a bot often isn’t a technical one. It’s a conversational challenge. Your job is to understand the interactions your audience is already having with your brand. Then, harness the chat interface in a way that surfaces the information your audience needs effectively. Yes, witty banter is a plus. But, the ultimate mission of a bot is to provide a service people actually want to use. The best bots identify the core use cases consumers are looking to solve on a daily basis and provide a conversational approach to accomplishing that task. Whether it’s adjusting a reservation, updating shipping info for

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an order, or giving medical advice, bots provide a less time-consuming solution than talking to a human, and a simpler one than digging through a whole website of content.

An alternative thesis was that a more conversational UI would encourage customers to engage more deeply. Advocated Altimeter, “Consumers have been conditioned to interact with businesses in ways that are often unnatural and inconvenient: typing in boxes within rigid interfaces that may or may not accomplish their objective. What experience wouldn’t be better if it were more natural and more attuned to the way people really communicate—by writing, talking—even gesturing?”25

AI and Chatbots at HubSpot The HubSpot team envisioned a number of roles that chatbots could play in HubSpot’s own

business, ranging from taking inquiries from customers at early stages of the buying process, to assisting salespeople in gathering information about customers and competitors during the sales process, to providing convenient customer service when questions or problems arose after the sale. Including chatbots somewhere in the marketing process was the next frontier. Marketing communications had always evolved along with technology. After the birth of the telephone allowed people to talk to one another over long distances, marketers immediately used the device to prospect for new customers. After email was invented and allowed immediate written communication, marketers started promotional email campaigns. It was only a matter of time before the same would happen with chatbot communication, so there were a number of opportunities and risks that the team had to consider.

Coffey explained, “This time, unwelcome marketing has the potential to hit even closer to home. When you spam someone’s email, there is technology to filter out the noise. With bots functioning inside messaging apps, you’re invited into a historically personal space. If you use that invitation to push unwanted and interruptive spam, it can really hurt your brand.” Would consumers readily accept having chatbots become part of their messaging habits or would there be a revolt? This might be a particularly interesting challenge for HubSpot, given that the company had grown its brand with strong anti-spam messages in homegrown social media ads such as 2008’s “Dude, Cold Calling Is for Losers,” which criticized traditional marketers for intrusive outbound marketing techniques.

Dharmesh Shah, Co-Founder and Chief Technology Officer of HubSpot, was intrigued by the potential of this new technology, seeing it as the next horizon of marketing. In April 2016, he launched GrowthBot, which could help him and others within HubSpot answer many of the questions that he wanted to know—both about his customers and his competitors. GrowthBot was an intuitive, conversational interface that allowed users to answer questions by querying internal and external databases (see Exhibit 5). Unlike a website, in which users would point-and-click their way toward answers, GrowthBot allowed them to find information intuitively. For example, a user could ask, “What is my open rate on MailChimp?” and the bot would respond with the appropriate answer.

Through his experience with GrowthBot, Dharmesh learned several lessons about how bots needed to be constructed if they were going to switch people from the familiarity of search to the conversational interface of chatbots. First, the onboarding process had to be simple and example-based. When a user first started interacting with it, GrowthBot would immediately prompt the user with “Hi, My name is GrowthBot. For ideas, just ask: what can you do?” (see Exhibit 6). If the user typed this question, GrowthBot would instantly provide multiple ideas about how to use the software. A longer list of questions and commands that could be answered by GrowthBot can be found in Exhibit 7.

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Second, the bot had to provide compelling reasons for the user to return. Part of this was simply ensuring that the bot could answer relevant questions for the user—that it was truly useful. Bots provided an interesting opportunity in this sense because users were always telling the bot what they wanted by asking questions, making them an important market research channel to understand what was on customers’ minds. Paying attention to the chat log created by these interactions provided product designers with the consumer feedback they needed to develop product design roadmaps that better anticipated consumers’ needs. Additionally, bots provided another opportunity for CRM because they could re-engage users that had gone dormant by suggesting new ways to interact.

Third, UI widgets, the suggestion boxes that bots presented, could simplify the user’s experience if designed judiciously. Widgets were effective in suggesting new uses and reducing the amount of typing users needed to do to derive their desired information. However, relying on an interaction that was too scripted limited how broadly users were likely to interact with the chatbot and did not provide the designer with the same insights into users’ thought processes as open-ended question designs did.

The HubSpot team was sure that other design principles would arise as they worked more with the technology. Could they design a bot that would help people abandon their search habit and develop a new chat habit to obtain information about the businesses with which they were interested in interacting? Did the rules governing behind-the-scenes, internal bots like GrowthBot differ from external customer-facing bots that interacted with customers along their purchase journeys?

The Marketing and Sales Processes at HubSpot Coffey, Bodnar, and Nelson were excited to think about how bots could be incorporated into

HubSpot’s own marketing and sales processes. They were certain that this new technology could significantly change how marketers and salespeople interacted with their customers. But where in the marketing and sales process could bots provide the most value? And what were the risks of inserting chatbots into these processes? Would different relational trajectories evolve if customers interacted with a machine rather than a person? How might this change the types and strength of relationships a customer formed with the company? Could HubSpot’s customer relationships be handled by machines, and what might be the consequences to brand loyalty if they were?

Coffey encouraged the team to evaluate using chatbots at different points throughout a customer’s purchase journey. As he thought about HubSpot’s marketing and sales funnel, he thought about how to insert bots into the top of funnel, when the company’s content had just attracted the attention of prospective customers; into the middle of the funnel, when prospects needed to be educated and nurtured as they shaped their needs and evaluated HubSpot’s products versus competitive offerings; and through to the bottom of funnel, where consultative salespeople provided guided demonstrations of the product and helped prospective customers understand how to integrate the product into their existing systems. Bots could even possibly provide customer support following the purchase. He said:

At HubSpot, we study human behavior and then build products to match the way modern buyers shop, learn, and communicate . . . . While the trend towards messaging was obvious ,  the key question remained, how could we make it work for our customers? To get there we started with a simpler question: How could we make it work for ourselves? We asked our marketing team to see if they could leverage this transition to find a new way to reach our prospects, have better conversations, and ultimately grow our business.

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Using Chatbots in the Marketing and Sales Funnel

HubSpot’s prospective customers moved through a process that changed them from a stranger attracted by inbound marketing content to the company’s website; to a visitor that could be engaged, educated, and tracked; to a lead that could be identified, nurtured, qualified, and then passed along to sales for further development, product demo, and the closing of the sale. HubSpot knew that there were many prospective people in the stranger stage, and designed its inbound marketing content to serve as magnets to draw them into its ecosystem. Its content was quite successful, and by 2017 this content was driving millions of website visits per month—amply filling the top of HubSpot’s funnel, but creating a situation where the company’s sales team couldn’t possibly conduct one-to-one outreach.

Top of the Funnel (ToFu) Once visitors arrived, HubSpot tracked their interactions with its content through clickstream analysis and began constructing a customer profile for them in its CRM system. The company worked hard to encourage visitors to self-identify through landing pages and forms designed to capture prospects’ information (such as contact information and qualifying information such as size and type of business) so that the company could decide whether to invest in a one-to-one relationship with a particular customer. However, form completion rates were low; only about 4% of people who visited hubspot.com filled out a form or interacted in live chat (when available). Each of these leads ended up costing HubSpot $50 to generate. Bodnar wondered if using a bot with a more conversational tone in place of a landing page form could help the company garner more information: “A bot could make you feel like you were just talking to somebody at the company. It could say things like ‘Oh, what’s your email address so that I can send this to you?’ rather than providing a utilitarian website form. We could even add in a joke or something in the request to make it representative of who we are in the kind of tone that our brand would take, so that it wasn’t boring or stuffy.” The additional upside of a bot was that it would be available 24/7 and wouldn’t be constrained by the availability and bandwidth of the live chat reps the company was using.

Nelson saw great potential in scripting bots to speak with the voice of the brand, believing that a unique voice contributed to the formation of a stronger connection. He was also intrigued by the possibilities of dynamically adjusting a bot’s tone to mimic the desired relational style of an individual consumer and of using artificial intelligence to perceive signals in consumers’ speech patterns that would indicate whether they were eager to buy or more cagey and pensive, so that the persuasive technique that the bot used could be adjusted in real time. He remarked, “We can certainly envision doing more with real-time sentiment analysis to get to the point where we could refine the tone of the conversation based on input that we are receiving from the customer. Then, companies would have to decide whether they wanted to stay in their brand’s voice or mirror the conversational style of the individual customer the bot is interacting with.”

At the top of the funnel, customers often needed consultative assistance to define the business problems they were trying to solve and to specify the needs they had for HubSpot’s products. Top of the funnel tasks included making customers aware of HubSpot’s offerings and educating them about how these products might meet their needs. Could a chatbot serve this need, or would HubSpot forgo more profitable customer relationships if a salesperson didn’t engage with customers early to upsell, cross-sell, and engage them in strategic discussions about the future of their businesses?

Additionally, industry experts noted that broad changes in buying patterns were coming as a result of the rise of digital technologies. Many prospective customers were delaying or eliminating physical contact with salespeople, choosing to progress along their purchase journeys without the perceived pressure of persuasive selling techniques. Digital access was empowering buyers to bypass direct interaction with a company altogether. The Corporate Executive Board estimated that, in general, 57%

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Case Study essay paper

Case Study

ORDER A PLAGIARISM FREE PAPER NOWAddress case questions. Cite evidence from the case and/or class supporting your analysis (APA in-text citations). List the question, then provide your response.

Questions:Case Study

1. Should Hubspot replace its human chat representatives with chatbots? Why or why not?

2. Which activities in Hubspot’s marketing and selling process would you turn over from humans to bots? Why? In which phases of the funnel (ToFu, MoFu, BoFu) would bots do better (worse) than humans?

3. How might customer behavior change if customers interact with bots versus humans? How might this behavioral change affect the type of relationship formed with the company, the trajectory of that relationship, and its inherent profitability?Case Study

4. As it develops best practices to share with its customers, what should Hubspot recommend regarding a) how “human” chatbots should be, b) whether and/or when/ how to disclose to a customer that they are chatting with a bot rather than a human, and c) whether the bot should always speak in the voice of the brand or adjust its relational style based on cues it receives from an individual customer? Why?

5. Was Hubspot’s acquisition of MotionAI, a smart move for the company? How might it affect its relationships with its own customers?Case Study

6. How would you assess the potential for chatbots for managing B2B and B2C customer relationships in general? Under which conditions do bots have the most and least potential?Case Study

Case study essay paper

Case study

ORDER A PLAGIARISM FREE PAPER NOW

The Spiraling and Spillover of Misconduct: Perceived Workplace Bullying, Subclinical Psychopathy, and Businesspersons’ Recognition of an Ethical IssueCase study

Sean R. Valentine1 & Sheila K. Hanson2 & Gary M. Fleischman3

Published online: 31 August 2017 # Springer Science+Business Media, LLC 2017

Abstract Workplace bullying can potentially spiral into numerous counterproductive behaviors and negative organizational outcomes. Therefore, the purpose of this study was to determine the degree to which increased perceptions of workplace bullying were associated with stronger expressions of (subclinical) psychopathic traits and weakened ethical decision making. Data were collected from national and regional samples of selling and business professions using a self-report questionnaire that contained relevant mea- sures and an ethics scenario, and structural equation modeling was employed to investigate the proposed relationships. Findings indicated that perceived workplace bullying operated through psychopathy to influence the recognition of an ethical issue (or full mediation). The implications of these findings are discussed, along with the study’s limitations and suggestions for future research.

Keywords Workplace bullying . Spiraling . Psychopathy. Ethical decision making

Employ Respons Rights J (2017) 29:221–244 DOI 10.1007/s10672-017-9302-8Case study

An earlier version of this study was presented at the 2016 Academy of Management Meeting, August 5–9, Anaheim, CA.

* Sean R. Valentinesean.valentine@mail.business.und.edu

Sheila K. Hansonsheila.hanson@business.und.edu

Gary M. Fleischman gary.fleischman@ttu.edu

1 Department of Management, University of North Dakota, 293 Centennial Drive, Mailstop 8377, Grand Forks, ND 58202-8377, USA

2 School of Entrepreneurship, University of North Dakota, Gamble Hall, Room 365H, 293 Centennial Drive, Stop 8363, Grand Forks, ND 58202-8263, USA

3 Rawls College of Business, Texas Tech University, Box 42101, Lubbock, TX 79409-2101, USA

 

 

In a typical workday, there are numerous motivations and opportunities for employees to mistreat each other. From less overt forms of misbehavior such as badmouthing, aggressive communication, and politicking to more serious types that include coercion, subversion, and sabotage, workplace bullying has emerged as a prevalent challenge in different organizations and professional environments (e.g., Aquino and Thau 2009; Hutchison et al. 2009; Lutgen- Sandvik et al. 2007; Mikkelsen and Einarsen 2001; Salin 2001). Bullying has even been explored in the academic environment given its frequency within the ranks of universities (Giorgi 2012; McKay et al. 2008; Zabrodska and Kveton 2013).

Research shows that a number of factors can cause such misbehavior. High performance expectations related to pay (Samnani and Singh 2014), stressful and/or chaotic workplaces (Baillien et al. 2011; Heames et al. 2006; Hodson et al. 2006), and limited resources can encourage individuals to be self-interested and competitive, and when these characteristics are coupled with low management oversight and/or power differentials (Hodson et al. 2006), interpersonal conflict and bullying can occur. A toxic, corrupt, or unethical work environment can also precipitate bullying (McKay et al. 2008; Hutchison et al. 2009; Valentine et al. 2015; Vickers 2014). Additionally, prior research identifies many negative outcomes of bullying such as poor work attitudes/responses, high stress/burnout, and decreased emotional, psychological, and physical well-being (Aquino and Thau 2009; Bowling and Beehr 2006; Giorgi 2012; Mayhew et al. 2004; Parzefall and Salin 2010).Case study

A particularly destructive consequence of workplace bullying involves a spiraling effect that encourages targets to harm coworkers as a result of their own negative work experiences. According to Salin (2003, p. 1217), “…bullying can often be described as a self-reinforcing or spiraling process, building on vicious circles (cf. Andersson and Pearson 1999). In addition, bullying and other forms of anti-social behaviour may also cascade and spawn secondary bullying spirals, either through modeling or displacement (cf. Pearson et al. 2000).” Such misbehavior can also “spill over” from one area of a company to others as individuals interact with different employees (McKay et al. 2008). This implies that bullying can be repeated when it is experienced in a workplace impacted by negative employee interactions, even in other office domains. Professional and organizational contexts can exacerbate these problems with cultural characteristics that allow bullying to occur, be learned, and be reciprocated (i.e., excessive informality, preferences for aggressive behaviors/humor, and low morale), or by employing “hands off” or unfair leadership styles that fail to properly supervise the actions of employees (Boddy 2011; Harvey et al. 2009; Pilch and Turska 2015; Salin 2003). Conse- quently, certain occupations may be prone to such misconduct.

Harmful workplace behaviors appear to be significant concerns in the sales profession. The field of selling is often characterized by a variety of individual deviant behaviors, and according to Darrat, Amyx, and Bennett (2010, p. 239), this “…alarming prevalence of deviance among salespeople may be due, in part, to an inherent leniency toward deviant behavior within the sales industry.” Of particular relevance to this study are the acts of interpersonal deviance that can be exhibited by salespersons, which can include mistreating work associates, taking credit for other people’s contributions, and blaming others for negative outcomes (Jelinek and Ahearne 2006). Social undermining may also be a problem in the sales profession, behavior that includes “…intentional offenses aimed at destroying a salesperson’s favorable reputation, his or her ability to accomplish sales-related work, or his or her ability to build and maintain positive relationships with supervisors, coworkers, and customers as boundary spanners” (Yoo and Frankwick 2013, p. 80). In this sense, aggressive behaviors that harm coworkers have the capacity to spiral and spillover in the sales industry, as well asCase study

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other occupations, thus adversely changing employees’ attitudes about what is considered acceptable conduct.

Negative bullying experiences that spiral out of control may also create a toxic work environment that harms an organization’s ethical context. For example, Power et al. (2013) determined that cultures emphasizing achievement and accomplishments may be more accepting of bullying, which could lead to a negative culture in which bullying becomes the norm. Furthermore, Giorgi et al. (2015) found a curvilinear relationship between bullying and job satisfaction, which suggests that increased exposure to bullying is related to (at some point) incrementally higher employee job satisfaction. Over time, bullying may not be viewed so negatively by employees, as they may perceive that some degree of bullying is necessary for high job performance.

These attitudinal changes are likely exhibited through a variety of antisocial and counter- productive tendencies. For instance, workplace bullying would seem to negatively impact how individuals prefer to interact with and treat their coworkers, setting the stage for the reciprocal and displaced mistreatment of others. In the organizational context, “it is contended that the external environment can contribute to the acquisition and maintenance of aggressive and bullying behaviors” (Harvey et al. 2009, p. 33). Past work also indicates that bullying experiences may encourage individuals to behave aggressively toward others (Hauge et al. 2009; Matthiesen and Einarsen 2007).

But what negative psychological processes motivate persons to bully others in response to their negative job interactions? The answer to this question likely resides within a group of personality traits that may be reinforced based on bullying experiences. According to Pilch and Turska (2015, p. 85):

In the case of the personality of perpetrators, the set of significant traits which may prove to be crucial for understanding the group specificity is the Dark Triad of personality (Machiavellianism, subclinical psychopathy, and subclinical narcissism) (Paulhus and Williams 2002). Despite their distinct difference, these traits are related by treating people like objects, manipulativeness, and lack of empathy, which favors undertaking of the activities classified as bullying (Baughman et al. 2012).

Of these three traits, psychopathy, which can motivate individuals to act ruthlessly and cold toward multiple target individuals, may be the most strongly associated with bullying because the two factors represent a common underlying set of negative behavioral tendencies that directly harm others (Baughman et al. 2012; Boddy 2011). While Machiavellianism and narcissism can lead to negative interactions with others, these traits may share comparatively weaker relationships with overt/serious forms of aggression such as bullying than does psychopathy (see for example Baughman et al. 2012; Pilch and Turska 2015), as well as be viewed as less undesirable (Rauthmann and Kolar 2012), possibly indicating that psychopathy is the most socially disruptive characteristic in the Dark Triad. Consequently, as a personality style psychopathy may be manifested through an “acting out” of negative tendencies that precipitate (and possibly reinforce) workplace bullying, thus encouraging a spiraling/spillover of misconduct in the workplace.

There is also reason to believe that the spiraling/spillover of bullying and the reinforcement of (subclinical) psychopathy personality styles negatively affect the ethical decisions that are triggered when employees are mistreated. Using multiple ethical lenses (i.e., deontology, utilitarianism, fairness, etc.), workplace bullying and the actions closely associated with psychopathy are unethical because organizations are ultimately harmed by a reliance onCase study

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aggression as acceptable behavior (Boddy 2011; Harvey et al. 2009). These norms likely decrease individuals’ ability to make ethical decisions because they are impacted by a negative work environment and behavioral tendencies. Harvey et al. (2009) presented a framework for understanding bullying in international business, which highlights how the work context can encourage bullying and modify employees’ behavioral tendencies based on observed miscon- duct. These linkages suggest that unethical decision making is driving an increased willingness among individuals to mistreat others. It is known that:

…employees solve ethical dilemmas based on their individual characteristics, the organizational culture in which they are embedded and the resulting ‘realities’ of the work environment, and their relationships with others in the organization. If any of these elements deficient or aberrant behavior in nature bullying can occur. Moreover, if the situation is not adequately addressed by management, bullying can become an accepted ‘ethical’ behavior in global organizations (Harvey et al. 2009, p. 30).

Research also shows that traits such as Machiavellianism and psychopathy are associated with increased workplace bullying and other dysfunctional actions (Baysinger et al. 2014; Pilch and Turska 2015), which implies that employees’ ethical decision making and behavioral choices are compromised when they are subjected to bullying, and that similar misbehaviors can be prompted by the unethical reasoning associated with negative behavioral tendencies.

Given these issues and concerns, the purpose of this study is to investigate the degree to which workplace bullying, psychopathy, and ethical decision making are interrelated in organizations. While including these three factors in one study represents an ambitious effort, we believe that examining a more comprehensive model (instead of narrowing the scope of the investigation to just two variables) enables us to more effectively bring together distinct literatures and make a stronger contribution. In addition, the variables selected and relationships proposed more closely align with existing theory in the field of managerial ethics; for instance, many models of ethical reasoning indicate that decision making is influenced by both individual and contextual factors in an interactional sense (see Ferrell and Gresham 1985; Hunt and Vitell 2006; Jones 1991; Treviño 1986). It is therefore proposed that perceptions of organization-wide bullying encourage attitudes and behaviors consistent with psychopathy, which decrease the recognition that the mistreat- ment of a selling professional (presented in a sales scenario) is unethical. While the presence of reverse causation is certainly plausible (i.e., psychopathy ➔ workplace bullying), we posit that broad perceptions of a work environment characterized by bullying (as opposed to more immediate and negative target experiences) have the capacity to encourage employee behaviors related to psychopathy, which result in weak- ened ethical reasoning. As noted previously, we also contend that the selling profession is an appropriate context for exploring these linkages because it is adversely impacted by a variety of ethical issues (see Caywood and Laczniak 1986; Ferrell et al. 2007; Hoffman et al. 1991; Seevers et al. 2007; Serviere-Munoz and Mallin 2013; Tellefsen and Eyuboglu 2002; Wotruba 1990), including interpersonal conflict and deviant behavior that is closely related to workplace bullying (Darrat et al. 2010; Jelinek and Ahearne 2006; Yoo and Frankwick 2013). In addition, “…there is relatively little known about negative salesper- son behaviors” (Jelinek and Ahearne 2006, p. 327), and “…little work has explored salesperson negative or dysfunctional behavior and what causes this negative behavior” (Yoo and Frankwick 2013, p. 79), so investigating the proposed relationships within the selling context enables this study to make a more substantial contribution to the literature.Case study

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This research is important and relevant for several reasons. First, it represents one of the first examinations of the possible connections among workplace bullying, subclinical psychopathy, and individual ethical decision making. Valentine et al. (2017) found, among other relationships identified, that bullying experiences were positively related to psychopathy, and that psychopathy was negatively related to the perceived importance of an ethical issue and ethical intention. However, this present study examines a broader, more culture-centric measure of workplace bullying, or bullying index, as well as a different component of ethical decision making, recognition of an ethical issue, to investigate the notion that negative social interactions in the workplace have the capacity to harm multiple stages of individual ethical reasoning. Similar to other culture-based measures, use of an index that taps employees’ perceptions of organization-wide bullying is particularly appropriate because, compared to more narrow measures of individual bullying experiences, it should provide a better gauge of the sociocultural norms (and subsequent misconduct) that occur throughout a company. Key to this investigation, perceptions of these behavioral norms should be better positioned to influence individuals’ decisions about how to think and behave from an ethical standpoint.

By exploring these key relationships, this study also has the potential to fill important theoretical and empirical gaps at the crossroads of the business ethics and management literatures. A number of perspectives such as social exchange theory (i.e., perceived psycho- logical contract breach, injustice, low organizational support) (Parzefall and Salin 2010), social learning theory (Harvey et al. 2009; Salin 2003), and Novak’s (1998) learning theory (Altman 2010) have been used to explore the proliferation of workplace bullying, and testing the study’s proposed relationships provides additional evidence that these theoretical lenses are useful tools for understanding why such aggression occurs in organizations. Additionally, providing evidence that perceived workplace bullying and reinforcement of subclinical psy- chopathy function in concert to harm ethical reasoning provides further understanding of how bullying can negatively spiral into other dysfunctional tendencies in the workplace. According to Parzefall and Salin (2010, p. 762), “to date very limited attempts have been made to understand the mechanisms and processes through which the experience of workplace bullying evolves and translates into negative reactions from targets and, above all, from bystanders. This is an important issue, as the experience of bullying ultimately influences evaluations of the employment relationship and its quality as a whole.” The following section presents the relevant literature and hypotheses.

Literature Review

Workplace Bullying and Psychopathy

Definitions of workplace bullying commonly revolve around negative verbal or nonverbal behaviors directed at target individuals, as well as the outcomes of these negative acts and harmful effects on victims (Einarsen et al. 1994; Saunders et al. 2007). Bullying may range from subtle comments to aggressive behavior. Less severe forms of bullying (e.g. snide comments) that occur frequently may be just as harmful as more serious bullying experiences (e.g. humiliation), where the perceptions of negative and inappropriate behavior cause harm (Baron and Neuman 1998; Saunders et al. 2007). Mayhew et al. (2004) determined that, similar to assault, even covert types of violent acts in companies such as bullying could cause emotional problems for victims.

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Beyond harming targets, bullies who perpetrate negative behaviors may influence others, including those who have witnessed the bullying (Samnani and Singh 2012). For instance, perceptions that bullying proliferates at work can negatively impact job satisfaction (Valentine et al. 2015). These connections imply that bullying might be learned experientially though negative work encounters and interactions (Altman 2010). As social learning theory suggests, modeling and imitating workplace bullying can help reinforce and spread negative effects (Salin 2003). Novak’s (1998) learning theory implies that experiences aid in the development of differing perceptions of workplace bullying, which can result in greatly varied reactions to it (Altman 2010). There may be significant motivations for witnesses of bullying to follow suit if they perceive that bullying yields positive rewards in the workplace (Boddy 2014). This may be particularly true if the organizational environment is viewed as a corrupt system that legitimizes the mistreatment of employees (see Hutchison et al. 2009; Vickers 2014).

Like bullies, psychopaths of all types (i.e., “clinical,” “subclinical,” “corporate,” “success- ful,” etc.) are also predisposed to cause harm to others (e.g., Boddy 2011; Hare 1994, 1999a, b; Stevens et al. 2012). Of all elements of the dark triad, psychopathy is often the most closely related with violent, dangerous, aggressive (O’Boyle et al. 2012; Rauthmann and Kolar 2012), and destructive workplace behavior (Boddy 2011). Psychopathy has been conceptualized as a disorder (Blair 2007; Lynam et al. 2007) that involves emotional dysfunction (e.g. an absence of empathy) and antisocial behavior (Blair 2007; Hare 1994, 1999a, b). Research into the etiology of psychopathy has distinguished two types (i.e., factors), including primary and secondary psychopathy (Yildirim and Derksen 2015). Primary psychopathy is considered a personal difference that is related to genetic origins, while secondary can be considered “an environmentally-contingent strategy,” leading to psychopathic behavioral expression (Yildirim and Derksen 2015, p.18). Subclinical levels of secondary psychopathy, partic- ularly the behavioral tendencies that are acted out in the corporate setting, are the focus of the current study.

Psychopaths, including those who exhibit subclinical levels of the characteristic and/or effectively function in companies, display a variety of potentially negative traits and behaviors such as an elevated sense of self-importance, shallow obsequiousness and charm, dishonesty, a charismatic and manipulative nature, decreased empathy, and an inability to accept personal responsibility for their misdeeds (e.g., Boddy 2011; Hare 1994, 1999b). In the general population, subclinical psychopathy, is estimated to occur at base rates of 5% to 15% (LeBreton et al. 2006), so the incidence is higher than clinical psychopathy traits and behaviors manifested at clinical levels (i.e. those individuals with diagnosable, severe impairment), which occurs at base rates of around 1% (Hare 1999a, b). The rare clinical levels of psychopathy may be most closely associated with Antisocial Personality Disorder, diagnosable only when sufficient criteria as found in the DSM 5 (APA 2013) are met. Even at subclinical levels, psychopathy is viewed as the most malicious of the Dark Triad (Rauthmann and Kolar 2012). Cognitive and neuropsychologists have identified the underlying neuropsychological mechanisms of the amygdala, which modulates emotional responses, and the ventromedial prefrontal cortex, which plays a role in reasoning through potential negative consequences of behavior (Boddy 2011; Carlson 2014). Both the amygdala and ventromedial prefrontal cortex interact in moral reasoning, and that process may be impaired in the case of psychopathy (Blair 2007). Dysfunction and antisocial behaviors are some of the other negative consequences associated with psychopathy (Hare 1994).

These counterproductive tendencies can create many challenges in the workplace. In particularly, subclinical/corporate psychopaths are known to get their way through bullying

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behaviors such as coercion, abuse, humiliation, aggression and fear tactics (Babiak and Hare 2006; Boddy 2011). Psychopathic bullies do not feel remorseful, guilty, or empathic in relation to their behavior, lacking insight; in fact, they may be unable or unwilling to control their behavior, even when more moderate behavior would ultimately be more advantageous (see Babiak and Hare 2006).

Like bullies on the playground in childhood, psychopathic tendencies and bullying behavior in the workplace may be connected. The notion of workplace psychopaths has gained traction to explain the incidence of workplace bullying (Caponecchia et al. 2012). The observable outcomes of bullying behavior and the attitudes and traits of subclinical psychopathy suggest theoretical overlap between bullies and subclinical psychopaths (Boddy 2011; Harvey et al. 2007). Boddy (2011) found a high positive correlation (r = 0.939) between corporate psycho- paths being in the workplace and the degree of perceived bullying (i.e. “witnessing unfavorable treatment of others at work”), which supported prior work demonstrating that individuals scoring high in measures of psychopathy were more likely to engage in bullying behavior (Nathanson et al. 2006). Certainly, bullies and psychopaths can be different individuals, yet there does seem to be considerable overlap between the two patterns/profiles. For example, Babiak and Hare (2006) found that around 29% of corporate psychopaths are also bullies. Further, Boddy (2014) evaluated the amount of bullying in organizations based on managerial type (i.e. “normal,” “dysfunctional,” and “psychopathic”) and determined that 35.2% of all bullying was related to corporate (i.e. subclinical) psychopaths.

Given this evidence, it can also be argued that exposure to workplace bullying may precipitate psychopathic tendencies in employees. The spiraling/spillover effect of bully- ing in organizations can create a culture that condones it, encouraging employees to learn and utilize such misconduct as an acceptable form of interaction with colleagues (e.g., Altman 2010; Harvey et al. 2009; Salin 2003). The negative social exchanges that are experienced when bullying is widespread can also create a prevailing perception among some individuals that equity, justice, and other ethical standards are not honored within a company (e.g., Parzefall and Salin 2010), thus encouraging them to adopt patterns associated with psychopathy for the purposes of self-benefit/interest. Taken together, these points lead to the following hypothesis:

Hypothesis 1: Stronger perceived workplace bullying is associated with increased psychopathy.

Psychopathy and Recognition of an Ethical Issue

While psychopaths who lack a conscience may experience legal problems, psychopaths who possess subclinical levels of psychopathy may work undetected and even successfully within the workplace (Boddy et al. 2010). Successful psychopaths can exhibit poor ethical decision making (Boddy et al. 2010), and when they preside in leadership and other positions of power, may negatively influence others (Boddy 2011). When leadership and management include subclinical psychopaths, modeling unethical behavior to employees is more likely (Boddy 2006). Subclinical psychopaths are known for maximizing their own wealth and power and can make impulsive decisions in their own self-interest without carefully considering the long- term impacts to the organization (Boddy 2006). Further, lacking conscience and a sense of morality, subclinical psychopaths are often unaware of the problems related to decisions that

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are “immoral, unethical, contrary to accepted codes of professional practice, or outright illegal” (Boddy 2006, p. 1470).

Ethical decisions should be particularly affected by patterns of psychopathy. The ethical decision-making process is typically conceptualized as a series of mental and behavioral steps that occur sequentially as employees face ethical dilemmas at work (see Ferrell and Gresham 1985; Ferrell et al. 2007; Hunt and Vitell 2006; Jackson et al. 2013; Jones 1991; Rest 1986; Treviño 1986; Wotruba 1990 for variations of the basic framework). Individuals first recognize that a situation contains an ethical issue before evaluating any potential problems; this first step is viewed as a critical component of ethical reasoning because it precipitates other more advanced stages of decision making (e.g., Rest 1986). The next step involves making judgments of the ethicality of a situation based on different paradigms such as equity, fairness, justice, and social expectations (see Rest 1986; Reidenbach and Robin 1990). Once formal- ized, these judgments lead into intentions to behave consistently with previous evaluations. The final step is behaving according to previous judgments and intentions (Jones 1991; Rest 1986). Research indicates that these steps hold true in many different ethical situations (e.g., Barnett 2001; Barnett and Valentine 2004; Robin et al. 1996; Valentine and Barnett 2007; Valentine et al. 2010).

Prior research suggests that the neuropsychological makeup of individuals with psycho- pathic tendencies makes them challenged to follow the steps of the ethical reasoning process (Blair 2007; Carlson 2014). Within the construct of subclinical psychopathy are the underlying belief systems that may compromise the ethical reasoning process. Subclinical psychopaths are known to admire clever scams, feel justified in doing whatever they can get away with and would agree with the statement: “For me, what’s right is whatever I can get away with” (Levenson et al. 1995, p. 153). In addition, Jackson et al. (2013) suggested in their framework of ethical decision-making dissolution that poor cognitive moral development, low ethical sensitivity, and a willingness to break rules among leaders, traits reflective of psychopathy, would negatively impact the recognition of ethical situations.

One study in particular provides compelling support for these relationships. Stevens et al. (2012) found that the link between psychopathy and unethical reasoning was mediated by the variable moral disengagement. In their study, a large sample of undergraduates reacted to four ethics vignettes based on typical organizational dilemmas (e.g., shortcuts in production, failing to highlight inaccuracies in financial documents, etc.) and were asked to indicate the likelihood that they would commit the unethical behaviors in the scenarios. As predicted, psychopathy was positively related to individuals’ self-reported willingness to commit unethical acts (Stevens et al. 2012). Given the positive relationship between psychopathy and unethical decision making, it follows that as levels of psychopathy increase, recognizing an ethical issue, the first step in the ethical decision-making process, would decrease. The following hypothesis is therefore proposed:

Hypothesis 2: Increased psychopathy is associated with decreased recognition of an ethical issue.

Workplace Bullying and Recognition of an Ethical Issue

Workplace bullying has significant effects on both targets and observers in the workplace. As mentioned earlier, bullies and psychopaths can be different people, but there appears to be a

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noteworthy overlap in expressed deviant behavior (Babiak and Hare 2006; Boddy 2014). Therefore, both victims and observers of this dysfunctional behavior are, over time, likely to incorporate these behaviors themselves and/or come to accept them as normalized organiza- tional behavior (Giorgi et al. 2015), which triggers the spiraling/spillover of misconduct.

A number of potential affective/attitudinal (e.g. job satisfaction and commitment), health/well- being (e.g. mental and physical health), and behavioral outcomes (e.g. performance) have been associated with bullying (e.g., Giorgi 2012; Nielsen and Einarsen 2012). Mayhew et al. (2004) found that violent acts at work such as bullying could precipitate severe emotional trauma in employees. Unfortunately, individuals may experience a constellation of these negative outcomes, which could fundamentally affect other work responses. Successful psychopaths who bully, and others who adopt similar behaviors, may focus on short-term gains in individual performance outcomes to rationalize their actions (Babiak and Hare 2006), while long-term cumulative impacts of bullying at the organizational level are likely to be detrimental to a company and its performance (Samnani and Singh 2012; Vega and Comer 2005). Giorgi (2012) indeed determined that workplace bullying was negatively related to a positive organizational climate.

When bullying spirals and/or spills over, there is reason to believe that ethical dissolution would result from an egoistic fixation on individual gains at the expense of others, and that these preferences can be driven by unethical corporate cultures, highly competitive workplaces, and social networks that allow and/or encourage dysfunctional behavior (Jackson et al. 2013). It has been proposed that bullying is a reflection of corruption in organizations (Hutchison et al. 2009; Vickers 2014), and a work environment affected by such corruption should function in a way counter to generally accepted ethical norms. According to McKay et al. (2008, p. 92):

Systematic bullying, hazing and abuse generally are identified with poor, weak or toxic organizational cultures. Cultures that are toxic have stated ethical values that are espoused but not employed, and other non-ethical values which are operational, dom- inant, but unstated. Such cultures thrive when good people are silent, silenced, or pushed out; when bad apples are vocal, retained, promoted, and empowered; and when the neutral majority remain silent in order to survive. Those who are most successful in such a toxic culture are those who have adapted to it, or adopted it as their own.

With regard to ethical decision making, deficits may occur in a person’s ability to recognize an ethical issue in situations where an unethical work environment motivates employees to adopt tendencies related to subclinical psychopathy and bully others. Given the constitutional features of lack of remorse, deception, unethical and antisocial behaviors (Neumann and Hare 2008), subclinical psychopathy may provide an explanatory mechanism in the pathway between workplace bullying and ethical reasoning. Social learning suggests that employees learn negative behavior (i.e. bullying) from their superiors (Bandura 2006; Boddy 2014). If those influential leaders and managers are both bullies and subclinical psychopaths, or they possess traits and preferences that are consistent with these behavioral patterns (disregard for rules, poor ethics, lack of consideration, short-term thinking; see Jackson et al. 2013), employees could also learn normative psychopathic responses to their decision-making at work, starting with ethical issue recognition. In essence, employees learn accepted workplace norms of deviant behavior (Giorgi et al. 2015) that manifests as insensitivity to ethical issues. Consequently, mediation is proposed in the following hypothesis:

Hypothesis 3: The relationship between perceived workplace bullying and recognition of an ethical issue is mediated (either fully or partially) by psychopathy.

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Method

Data Collection

Using contact information secured from a third-party commercial provider and a questionnaire containing ethics and employment-related items, data were collected from a national sample of 3000 selling and business employees.1 Once again, we contend that investigating issues relating to bullying and psychopathy are especially relevant to selling professionals because of their competitive, boundary spanning work environment that is replete with ethical dilemmas and interpersonal misbehavior (Darrat et al. 2010; Jelinek and Ahearne 2006; Valentine et al. 2015; Yoo and Frankwick 2013). A cover letter, questionnaire, and postage-paid return envelope were initially mailed to employees, and 95 questionnaires were received from this first wave of mailings. After a period of time spanning roughly three months, a second wave was mailed to the same individuals, and 43 forms were returned for a total of 138 questionnaires and a response rate of 4.73% taking into consideration ineligible forms.2 Based on an assessment of analysis of variance models, cross tabulations, and chi-square statistics (Armstrong and Overton 1977), differences were not identified across the two waves for the variables assessed in this study, leading to the conclusion that nonresponse bias was not problematic.

To obtain more information, data were also collected from a convenience sample of individuals employed at different organizations with locations in a southern area of the United States. The sampling frame was defined broadly to include individuals who participated in various organizational selling functions, but several other employees not involved in selling also completed the questionnaire. Subjects were provided a copy of the questionnaire, and in some cases, they were given extra copies so that additional coworkers could be recruited to participate. A total of 246 questionnaires were secured from this data collection round, which generated a total sample of 384 usable questionnaires. The answers provided on several sales demographic items indicated that well over 300 of these employees were engaged in selling as part of their jobs (made sales calls, had sales accounts, etc.).

The sample members had a mean age of 38.66 years. Almost 59% of individuals were male, nearly 71% were white, and just over 52% were married. Half of individuals had some college and slightly over 22% had a Bachelor’s degree. Almost 80% were employed full-time in their organizations, and their average job tenure was 8.21 years. Almost 41% were employed as sales/marketing managers, and just over 10% were general managers. Forty- four percent of firms operated in the wholesale/retail industry, over 15% operated in manufacturing/construction, and over 9% operated in services. Over 51% of companies employed fewer than 100 persons. These characteristics suggest that the combined samples provided a useful cross-section of businesspersons for this study, many of whom performed sales-oriented roles in their jobs.

Measures

Perceived workplace bullying was measured with the five-item Bergen Bullying Index (Einarsen et al. 1994). This scale provides a broad assessment of workplace misconduct,

1 The questionnaire was reviewed by two professors with strong reputations in business ethics and sustainability. 2 Our conjecture is that the low response rate was driven by the very sensitive nature of the study that required participants to reflect about bullying behaviors they may have experienced.

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and it demonstrates high internal consistency reliability with coefficient alphas ranging from .82 to .89 (Einarsen et al. 1994; Matthiesen and Einarsen 2007; Valentine et al. 2015). Sample items include “Bullying is a serious problem at my workplace” and “Bullying at my workplace reduces my work motivation.” Responses were provided on a seven-point scale anchored with 1 (Strongly disagree) and 7 (Strongly agree), and higher item values indicated increased perceptions of workplace bullying.

Subclinical psychopathy was evaluated with six items (see Valentine et al. 2017) taken from the primary subscale of the Levenson Self-Report Psychopathy Scale (Levenson et al. 1995; Lynam et al. 1999), which was developed for use with non-institutionalized populations with a coefficient alpha of .82 (Levenson et al. 1995). The overall self-report instrument consists of two subscales, primary and secondary. The primary scale is comprised of sixteen items and was designed to measure core affective and interpersonal features, while the secondary scale is comprised of ten items and was designed to assess socially deviant attitudes and traits. Items from the secondary psychopathy subscale, designed to assess impulsivity and a self-defeating lifestyle (Levenson et al. 1995), were not included on the questionnaire because this subscale is more associated with antisocial and criminal behavior (Smith and Lilienfeld 2013), often connected to clinical levels of psychopathy.

Responses on the sixteen items were given on a seven-point scale anchored by 1 (strongly disagree) and 7 (strongly agree); items were coded in a direction to show increased self-report psychopathy. Since the measure was being used to collect data from a unique, (mostly) sales- oriented population of business professionals, evaluation of the scale’s measurement properties was deemed necessary. Consequently, the final set of six items utilized were selected based on previous research (Valentine et al. 2017) and the results of two factor analyses using principal components extraction, with the final model producing a single-factor solution with loadings above .62, an eigenvalue of 3.19, and 53.15% of explained variance. Sample items of the scale are “I tell other people what they want to hear so that they will do what I want them to do” and “In today’s world, I feel justified in doing anything I can get away with to succeed.”

Similar to many other examinations of organizational ethics (e.g., Alexander and Becker 1978; Barnett 2001; Barnett and Valentine 2004; Reidenbach and Robin 1990; Valentine and Barnett 2007), this study relied on an ethical scenario to trigger subjects’ ethical reasoning (see Valentine et al. 2017). This particular scenario highlighted a situation in which a salesperson (Kim) is mistreated by a coworker (Jocelyn) who exhibits behaviors related to psychopathy and workplace bullying:

“Situation: Kim is a seasoned salesperson in an office supply firm that services many large corporate clients. A year ago, she was given several new sales accounts that had high potential, mainly because of her seniority in the sales department, as well as her popularity, easy-going nature, and preferences for teamwork (i.e., she sometimes gives sales leads away to help struggling associates). Unfortunately, she has been unable to sell enough merchandise to these new clients, and her current level of sales performance only “meets expectations” according to recent appraisals received from her sales manager. Jocelyn, a relatively new member of the sales department, subscribes to a different approach to selling that involves individualistic and assertive tactics, excessive networking with others, and impression management around important people, qualities that have often enabled her to get good sales leads and assignments and to effectively close deals. Jocelyn is upset because she thinks that Kim is not selling enough given her good sales leads, she’s too concerned about getting along with others, and she’s not

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political enough. Consequently, Jocelyn believes that Kim’s new accounts should be assigned to her to oversee and manage.

Actions: Jocelyn meets individually with members of the sales department to convince them that Kim’s new accounts should be assigned to her. While many disagree with Jocelyn, she convinces a core group of salespeople, including the sales manager, that Kim’s new clients should be given to her, which occurs during Kim’s next performance appraisal. Feeling empowered by this decision, Jocelyn begins to ignore, isolate, and criticize those who disagreed with her, while at the same time strengthening her relationships with those who supported her.”

Recognition of an ethical issue was measured with one item that asked respondents whether Jocelyn’s actions in the scenario involved an ethical issue, and responses were provided on a seven-point semantic differential scale anchored by 1 (“Completely disagree her actions involve an ethical issue”) and 7 (“Completely agree her actions involve an ethical issue”). Higher item scores indicated increased ethical issue recognition.3

Several variables were also included as controls in the analysis. Ethics research can be negatively impacted by socially desirable responding given issue sensitivity (Randall and Fernandes 1991). Strahan and Gerbasi (1972) developed and validated a shortened ten-item scale from the original 33 item Crowne and Marlowe (1960) social desirability scale. The scale was again validated by Fischer and Fick (1993). We employed this scale to assess socially desirable tendencies in subjects. Sample items are “I have never been irked when people expressed ideas very different from my own” and “I have never deliberately said something that hurt someone’s feelings.” Items were rated with a seven-point scale anchored by 1 (Strongly disagree) and 7 (Strongly agree) and coded so that higher scores showed increased social desirability. All item scores were added together and divided by the total number of items to obtain an overall composite score. The scale’s coefficient alpha was .64. In addition, a dichotomous variable indicating the type of sample (1 = national sample, 2 = regional sample) was also included as a control because multiple response differences were identified across these two groups. Finally, the hours of ethics training that individuals had received from their organizations in the last year was included as a control variable because training is thought to mitigate bullying and other counterproductive behaviors at work (Altman 2010).

Analysis

Using structural equation modeling and the AMOS software, the measurement characteristics of the focal constructs were evaluated. A measurement model containing the latent focal variables, the associated observed items, and the observed focal and control variables was specified in a confirmatory factor analysis (CFA). Composite reliability and variance-extracted scores were estimated for the latent focal variables using the associated observed item standardized parameters (Hair et al. 1998). The potential for common method bias was also assessed by specifying a single-factor model (Podsakoff et al. 2003); all of the observed items

3 While it is generally advisable to employ multiple-item measures rather than single-item measures, we were concerned with survey length and response-rate issues, thus prompting us to employ a more global single-item measure for recognition of an ethical issue. In support of this strategy, we cite Diamantopoulos et al. (2012, pp. 444–446), who contended that researchers are justified in employing single-item measures when 1) small sample sizes are expected due to budgetary and/or subject recruitment challenges, 2) the research is exploratory in nature, and 3) the construct is widely-understood and may therefore be meaningfully measured using a single item.

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and observed focal/control variables were loaded on one latent factor to determine whether such a model produced acceptable fit statistics and item loadings. Variable descriptive statistics and correlations were then estimated in SPSS using the observed control and focal variables, as well as the composite scores derived from averaging the relevant items for the latent variables; reliability statistics (coefficient alphas) were also evaluated. Finally, hypothesis testing was conducted in AMOS by specifying a full mediation structural model that contained the latent focal variables, observed items, and observed focal/control variables. A second partial medi- ation model was then specified by adding an additional constraint (a path between the independent and dependent variables) to the structural framework and determining whether there was a significant improvement in model chi-square.

Results

Confirmatory Factor and Single-Factor Models

The model fit statistics for the CFA were acceptable (see Table 1). In addition, the observed items were related to the latent focal variables (p < .001), and the standardized estimates were above .50 (see Fig. 1). There was a number of significant covariances, and the relationships were in the directions proposed. The composite reliability scores for workplace bullying and psychopathy were .88 and .82, and the variance-extracted estimates were .61 and .44. The variance-extracted estimates for the workplace bullying and psychopathy variables were higher than their associated squared correlation, which indicated reasonable discriminant validity (Fornell and Larcker 1981). The single-factor model did not produce acceptable fit statistics (see Table 1), which suggested that common method bias was likely not a concern.

Variable Descriptive Statistics, Correlations, and Reliability Statistics

Table 2 presents the variable information and correlations. The mean value for perceived workplace bullying showed that such misconduct was not overly prevalent, and the mean value for psychopathy indicated that individuals exhibited only moderate tendencies toward socially aversive behavior. The mean value for ethical issue recognition indicated that indi- viduals perceived only moderately that the scenario contained an ethical problem, and the mean value for social desirability indicated only modest tendencies toward impression man- agement. The correlations indicated that perceived workplace bullying was positively related to psychopathy (p < .01) and the national vs. regional sample variable (p < .10) (individuals in the regional sample scored higher in perceived workplace bullying). Psychopathy was

Table 1 Model fit statistics

Model x2 df p x2 / df NFI IFI CFI RMSEA

Confirmatory factor analysis 240.083 79 .000 3.039 .893 .926 .924 .073 Single-factor model 1382.840 90 .000 15.365 .383 .399 .391 .194 Full mediation structural model 241.037 80 .000 3.013 .892 .925 .924 .073 Partial mediation structural model 240.083 79 .000 3.039 .893 .926 .924 .073

Default models reported; x2 / df = relative chi-square, NFI normed fit index, IFI incremental fit index, CFI comparative fit index, RMSEA root mean square error of approximation; N = 384

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negatively related to recognition of an ethical issue (p < .05) and social desirability (p < .001) and positively related to the national vs. regional sample variable (p < .001) (individuals in the regional sample scored higher in psychopathy); the negative relationship between social desirability and psychopathy confirms the notion that individuals who score high in impression management (including individuals who exhibit traits consistent with psychopathy) will be reluctant to disclose any negative behavioral tendencies on a questionnaire. Sample type and social desirability were also negatively related (p < .05), with individuals in the regional sample scoring lower in social desirability than individuals in the national sample; sample type and hours of ethics training were positively related (p < .01), with individuals in the regional sample receiving comparatively more ethics training than individuals in the national sample. The multi-item scales had acceptable internal consistency reliability with coefficient alphas that were above .60.

Recognition of an

ethical issue

-1.94(-.03)

-.03(-.02) .03(.02)

National vs. -.05* (-.12) Social

.07(.03) regional sample desirability -.32*(-.14)

(control) (control)

.03(.06) -.44***(-.49)

1.88**(.15) .00(.00)

.09^(.09) Hours of .14***(.28)

ethics training

(control)

Perceived 1.45(.05) -.19(-.01) Psychopathy

workplace bullying (subclinical)

.12^(.10)

Pwb5 1.93***(.86)

1.00(.73) P(s)1

.94***(76) P(s)2

Pwb1 Pwb2 Pwb3 Pwb4 1.07***(.71) P(s)3 P(s)4 P(s)5 P(s)6

1.00(.55) 2.13***(.91) 2.18***(.95) .86***(.52) . .84***(.50) 1.00***(.60) 1.08***(.65)

Fig. 1 Confirmatory factor analysis; notes: *** p < .001, ** p < .01, * p < .05, ^ p < .10; N = 384; standardized parameter estimates and correlations presented in parentheses (); dotted lines represent control variables and relationships

Table 2 Variable descriptive statistics, correlations, and reliability statistics

Variable M SD N α 1 2 3 4 5 6

1. Perceived workplace bullying 2.84 1.88 373 .88 — 2. Psychopathy (subclinical) 2.05 1.11 372 .81 .17** — 3. Recognition of an ethical issue 4.18 2.30 362 — .03 −.12* — 4. National vs. regional sample (control) 1.64 .48 384 — .10^ .23*** −.02 — 5. Social desirability (control) 4.80 .87 364 .64 .08 −.42*** .01 −.12* — 6. Hours of ethics training (control) 7.72 25.57 331 — .04 −.02 −.03 .15** .01 —

***p < .001

**p < .01

*p < .05, ^ p < .10

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Structural Models

Figure 2 presents the results of the mediation analysis. The full mediation structural model had acceptable fit statistics (see Table 1), and the observed items were all related to the latent focal variables (p < .001). After controlling for the impact of sample type, social desirability, and hours of ethics training, increased perceived workplace bullying was associated with increased psychopathy (p < .01), which provided support for Hypothesis 1. Increased psychopathy was also associated with decreased recognition of an ethical issue (p < .05), providing support for Hypothesis 2.

The partial mediation structural model also had acceptable fit statistics (see Table 1), and the observed items were once again related to the latent focal variables (p < .001). After controlling for the impact of the three control variables, increased perceived workplace bullying was associated with increased psychopathy (p < .01), and increased psychopathy was also associated with decreased recognition of an ethical issue (p < .05). These findings provided further support for Hypotheses 1 and 2. The additional constraint between perceived

Recognition of an

ethical issue

-.00(-.04)

.11(.02) -.17(-.06)

National vs. -.05* (-.12) Social

regional sample desirability -.39*(-.17)

(control) (control)

.15(.07) -.57***(-.48)

1.88**(.15) .00(.00)

.13^(.10) Hours of .46***(.22)

ethics training

(control)

Perceived .00(.04) -.00(-.05) Psychopathy

workplace bullying (subclinical)

.13**(.14)

Full mediation structural model

Recognition of an

ethical issue

-.00(-.04)

.10(.02) -.20(-.08)

National vs. -.05* (-.12) Social

.11(.05) regional sample desirability -.42*(-.19)

(control) (control)

.15(.07) -.57***(-.48)

1.88**(.15) .00(.00)

.13^(.10) Hours of .46***(.22)

ethics training

(control)

Perceived .00(.04) -.00(-.05) Psychopathy

workplace bullying (subclinical)

.13**(.14)

Partial mediation structural model

Fig. 2 Mediation analysis; notes: *** p < .001, ** p < .01, * p < .05, ^ p < .10; N = 384; standardized parameter estimates and correlations presented in parentheses (); dotted lines represent control variables and relationships; parameter estimates associated with measurement model not shown

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workplace bullying and recognition of an ethical issue that was added to the structural model was positive and insignificant (p = .3295), and this path did not produce a significant change in chi-square (chi-square difference = .954, d.f. difference = 1, p > .30), which suggested that the full mediation structural model was the superior framework. Consequently, adequate statistical support was provided for Hypothesis 3, specifying that full mediation was present. Perceived workplace bullying operated through psychopathy to influence recognition of an ethical issue.4

Synopsis of Findings

Overall the findings provided additional insight and understanding regarding the complex relationships assessed. For example, Hypothesis 1 was supported, meaning that there was a positive association between perceived workplace bullying and subclinical psychopathy. This significant relationship suggests that employees with subclinical psychopathic tendencies are more likely to have experienced latent bullying, or vice versa. The results also supported Hypothesis 2, which proposed that employees with subclinical psychopathic tendencies exhibit weaker ethical reasoning. Therefore, such employees appear to be less likely to recognize an ethical issue when it arises compared to employees who do not possess such tendencies, probably because the unethical behavior in question is more consistent with behavioral norms of those with subclinical psychopathic tendencies. Finally, Hypothesis 3 focused on improving understanding of the complex interrelationship between perceived workplace bullying, sub- clinical psychopathic tendencies, and recognition of an ethical issue. Specifically, the findings underscored that the association between perceived workplace bullying and recognition of an ethical issue is fully mediated by psychopathy. Psychopathy appears to alter the relationship between bullying experiences and recognition of an ethical issue by both clarifying and governing the nature of the relationship between the two.

Discussion

The purpose of this study was to investigate the degree to which perceived workplace bullying, individual tendencies toward (subclinical/corporate) psychopathy, and ethical decision making are interrelated in business organizations. This inquiry is important because little is known about the complex interrelationships (Stevens et al. 2012) relating to how perceptions of bullying interact with psychopathy to influence the ethical reasoning, specifically ethical issue recognition. The study relied on a sample containing mostly sales-oriented professionals (supplemented with several other businesspersons) because the boundary spanning and highly competitive environment often found in the sales industry contains a variety of ethical challenges that may trigger bullying and other behaviors consistent with psychopathy (Darrat et al. 2010; Jelinek and Ahearne 2006; Valentine et al. 2015; Yoo and Frankwick 2013). This inquiry is especially concerned with the spiraling/spillover impact of bullying and psychopathy given the potential negative “ripple effect” that such negative deviance can advance in the workplace. This is important given that organization bystanders to bullying can be profoundly influenced by perpetrator-victim interactions (Lutgen-Sandvik et al. 2007; Parzefall and Salin 2010).

4 Full mediation was present because a significant relationship was not identified between perceived workplace bullying and ethical issue recognition in the presence of psychopathy.

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The results of this study have some bearing on the notion that workplace conflict is related to negative individual traits and decision making, which yields several important implications for managing incivility. The results indicated that persons who perceived increased bullying in the workplace and exhibited tendencies related to psychopathy were less able to recognize an ethical issue (related to this mistreatment of a work colleague) than were persons who perceived lower workplace bullying and did not possess traits consistent with psychopathy. Accordingly, employees susceptible to psychopathy may trigger or accentuate negative workplace activity, thus perpetuating a bully spiral or spillover. If one is unaware that an unethical dilemma exists, an individual is less likely to engage in appropriate moral reasoning to correct one’s own behavior, thus increasing the spiraling and/or spillover of misconduct. Therefore, individuals who exhibit subclin- ical psychopathy, manifested in deceitful charm, impression management, and the manip- ulation of others, appear to be more prone to unethical reasoning in bullying situations, making them more likely to perpetuate bullying due to a lack of ethical sensitivity.

Given these results, managers in both the sales industry and other professions must determine how to shield organizations from a reduced ethical work context. If the workplace is already affected by widespread bullying and other unethical behaviors, then they must determine how the damage can be arrested and reversed. Clearly, leadership must minimize bullying and psychopathy before they spiral and spill over. Our findings suggest that organizations with toxic behavioral norms, including bullying and psychopathy, may employ individuals who are less able to recognize ethical issues related to such misconduct. Furthermore, past work indicates that if these negative behaviors are tolerated in organiza- tions, the ethical context may eventually become toxic and viral in nature (Giorgi et al. 2015; Power et al. 2013). This is particularly true in cultures with a high-performance orientation, and where bullying and subclinical psychopathy are permitted to spread to a point that employees eventually perceive that such negative behavior is acceptable (Giorgi et al. 2015; Power et al. 2013). As stated previously, such an environment may exist within the field of sales (Darrat et al. 2010; Jelinek and Ahearne 2006; Yoo and Frankwick 2013). The lack of ethical awareness, a factor explored in this study, may be further exacerbated by an acceptance and tolerance of negative behaviors that are perceived to yield optimal perfor- mance. This chain of events could further trigger ethical denigration in a company and among salespeople that may ultimately lead to severe consequences. Therefore, if managers do not take action to mitigate concerns over such dysfunctional behaviors, organizations and their employees may ultimately be harmed.

Initially Shielding the Organization

One solution to shield organizations from bullying and psychopathy-related behaviors is to screen out job candidates and employees with negative personal characteristics and tendencies as part of the hiring process. Management must essentially identify individuals who are susceptible to psychopathy because they may be more likely to make poor decisions, bully others, and spread misconduct. Our findings also suggest that such persons are less likely to recognize an ethical issue when they face bullying situations. Levashina and Campion (2009) contend that employment interviews should be used as background checks to ensure that job candidates do not possess traits such as psychopathy that can trigger workplace aggression. Despite these efforts, such screening can be difficult to manage because subclinical psycho- paths are often adept at charm, deception, and impression management (Harvey et al. 2009;

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Heames et al. 2006; Stevens et al. 2012), enabling them to provide socially desirable answers on individual assessments and other screening processes. Consequently, it may be relatively easy for persons who exhibit subclinical psychopathy to gain employment in organizations, even if the proper measures are taken.

Reversing a Dysfunctional Culture

If bullying and other beliefs/behaviors consistent with psychopathy are already commonplace in an organization, what can management do to mitigate or reverse the impact of these tendencies on corporate culture? A number of potential workable solutions are available, especially if bullies and/or psychopaths have not yet infiltrated management, which often establishes the overall ethical culture of the organization. Managers need to be themselves sensitive to the manipulative wiles of psychopaths and be able to recognize unethical work- place behavior when it occurs. A complicated part of identifying bullying and psychopathy is that those who act out in these ways are sometimes high performers, at least in a superficial sense, since they tend to promote themselves and their accomplishments, while undermining those of colleagues. These undesirable outcomes can be further exacerbated when manage- ment unwittingly rewards such misbehavior. Management may also be more likely to overlook misconduct when it produces seemingly positive outcomes for the organization, something that can occur in the sales industry (e.g., Darrat et al. 2010). Lack of management follow- through can lead to discouragement and resentment in victims and/or innocent observers (Heames et al. 2006). Making matters worse is the potential for bullying networks and alliances that enable individuals to support each other through enhanced rewards and oppor- tunity (Hutchison et al. 2009), as well as the competitive nature of the sales work environment that can increase the potential for various deviant behaviors (Jelinek and Ahearne 2006).

Management should therefore consider employing an ethics officer who is responsible for training workshops and role playing that highlight these issues as part of an overall process of ethical culture enhancement and institutionalization. Despite our findings, hours of ethics training might still be used effectively to enhance employees’ ability to recognize an ethical issue. Further, Altman (2010, p. 28) suggests that such training should “provide opportuni- ties for learning new meaning about the harmful consequences of workplace bullying which can lead to better choices of action regarding workplace bullying.” After being provided such instruction, employees should be encouraged to blow the whistle if they believe that they are being bullied or others are being mistreated. Ethics codes should also speak out against bullying behaviors and promote teamwork, particularly among sales-oriented em- ployees. Given that subclinical psychopaths tend to limit their bullying behavior to more non-aggressive and manipulative activity in order to protect their social standing, and only then when management is not present, managers need to be attuned to the outcomes of bullying as they are manifested in employees. For example, management should be aware that employees will likely suffer compromised health and exhibit listlessness and fearfulness, which may suggest that they are targets or witnesses of bullying (Lutgen-Sandvik et al. 2007; Parzefall and Salin 2010; Boddy 2017). In addition, psychopaths may be identified because they tend to demand excessive control, try to intimidate others, and do not tolerate questioning or any form of dissent (Boddy 2017). These observable cues from employees should trigger managerial recognition of an ethical issue, which in turn should prompt the identification of undesirable patterns of unethical decisions, attitudes, or behaviors directed at fellow employees.

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If management successfully identifies bullying behavior, they should take immediate and appropriate action to decrease the misconduct from escalating (Heames et al. 2006; Parzefall and Salin 2010). If management is unable to counsel offending employees in order to successfully modify their behavior, it may be necessary to terminate employees unwilling to change. The competitive culture in the U.S. workforce encourages employees to fight back against bullies to avoid appearing weak (Aquino and Thau 2009; Lutgen-Sandvik et al. 2007), so unchecked bullying behaviors tend to spread quickly throughout the organization, especially if observers perceive that such aggressive behavior is supported by the organization, even if indirectly; the aforementioned bully alliances can also be a significant problem (Hutchison et al. 2009). To shield the organization from becoming characterized by unethical behavior, management must combat this tendency by establishing an ethical culture that advances a zero-tolerance policy against bullying (Heames et al. 2006). Our results underscore that bullying experiences foster learned behaviors of organizational misconduct, and when combined with psychopathic tenden- cies, produces impaired ethical reasoning. A strong ethical culture that is supported by top management should create an environment that diminishes reciprocal, displaced, and/or learned unethical behaviors, which should both arrest and reverse negative trends over time. Ideally, the ethical environment should be characterized by helping and cooperative behaviors, especially among salespersons (e.g., Jelinek and Ahearne 2006), and it should have a compensation structure that rewards altruism over aggression (Samnani and Singh 2014).

Management also needs to be cognizant of the antecedent conditions that by their very nature create an employment environment of stress and misconduct. Such a workplace can encourage bullying behaviors among coworkers and reduce individual motivations to practice sound ethical reasoning. For example, a work environment characterized by change, personnel adjustments, and uncertainty can produce stress, insecurity, and chaos, which taken together can create a stage where bullying and psychopathy can flourish if unmanaged (Baillien and De Witte 2009; Boddy 2011; Harvey et al. 2009; Hodson et al. 2006; Sweeney 2007; Valentine et al. 2017). Darrat et al. (2010) also found that conflicts between family and employment are associated with different type of deviant behaviors, including interpersonal deviance. Further, many of these factors could cause the ethical context to degenerate into a workplace that causes misconduct to spiral and spill over into other work areas; the findings of Yoo and Frankwick (2013) suggest that emotional exhaustion may occur among salespersons. Man- agers should keep employees informed of all relevant organizational decisions and fully communicate to employees when changes affect them directly. If these efforts fail to fully mitigate misconduct, recent court rulings indicate that U.S. companies and their employees can be shielded legally from workplace bullying even though there is currently no federal legislation that provides such safeguards (Martin and LaVan 2010).

Contributions, Limitations, and Future Research

This study makes important and significant contributions to the literature by identifying unique connections among bullying, psychopathy, and the recognition of an ethical issue, a critical step in the ethical reasoning process. If one cannot recognize an ethical dilemma, one cannot engage in ethical reasoning to properly negotiate workplace interrelationships. Deviant inter- actions with coworkers can indeed trigger spiraling misconduct that erodes the ethical context, curtails effective customer service, and suppresses organizational profits. Overall, the findings of this study provide understanding of how psychopathy mediates bullying experiences and ethical issue recognition in a manner that likely precipitates a toxic work culture.

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While this study provides clarity regarding the relationships among bullying, psychopathy, and recognition of an ethical issue, there are a number of research limitations that should be noted. For example, because this is a cross-sectional study, we can only address correlations and associations, meaning that the study design does not permit us to make conclusions about causality. It is possible that poor ethical decision making and the negative behaviors associated with psychopathy create the appropriate conditions for a spiraling/spillover of workplace bullying. Further, our recognition of an ethical issue variable is a single-item measure that we employed due to survey length and response rate concerns; however, Diamantopoulos et al. (2012) provided support for our use of this single-item measure of ethical issue recognition. Because we gathered a national sample that necessitated two waves of responses, nonresponse bias could have been a problem given the relatively modest response rate. However, we tested for this possibility, and results suggested this was not a serious concern. Also, given the survey nature of this cross-sectional study, common method bias was also a concern, but again tests suggested that this was not a serious issue. Since the study addressed highly sensitive issues relating to psychopathy and bullying, it is likely some respondents presented themselves in a more ethical or socially desirable manner, which necessitated that social desirability be spec- ified as a control in the models. Due to a low response rate, we were compelled to gather additional data using a convenience sampling technique. Subjects agreeing to participate may therefore possess more helpful tendencies than those in the general population, thus influencing the findings. We also caution against generalizing the results to other unrepresented populations since the context of the study focused on a sample of selling and business employees. Recognition of an ethical issue for businesspeople might be different from other workers.

Future research should investigate how bullying experiences and psychopathy affect other components of ethical reasoning. For example, psychopathy might also mediate the relation- ship between workplace bullying and other decision-making steps such as ethical judgment, intention, and behavior (Rest 1986). It would also be interesting for future research to vary the type of bullying behavior to include more aggressive forms of misconduct, rather than the more latent forms investigated in this study. We also suggest that future research incorporate differing business samples as participants. For example, determining whether the findings are consistent for accounting/finance and human resource professionals would be particularly useful given the misconduct that can occur in these fields. These additional investigations, when combined with this study’s findings, can further contribute to understanding of the complex interactions of workplace bullying, psychopathy, and ethical decision making.

Acknowledgements Funding provided by the University of Wyoming was used to support this research. The authors wish to thank O.C. Ferrell and Eric Arnould for their assistance with the questionnaire and Lynn Godkin for his assistance with data collection.

Compliance with Ethical Standards

Funding This study was not funded by an outside source (it was funded by the University of Wyoming).

Conflict of Interest The authors declare they have no conflicts of interest.

Informed Consent Participation in this self-report attitude survey was voluntary; participants were only encouraged to complete the questionnaire (“Please complete this ‘sales relations survey’” was used as introduc- tory text on the questionnaire); anonymity and confidentiality were ensured on the questionnaire (“Confidential when completed—You will remain anonymous” was included as descriptive text on the questionnaire).

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Case Study essay paper

Case Study

ORDER A PLAGIARISM FREE PAPER NOWEthical Theory Matrix

Theory Decision Criteria Your Example Strengths Weaknesses
Utilitarianism

 

The decisions of Utilitarianism are based on the consequences and outcomes. There are various theories of ethics, and the decision criteria are different. When it comes to Utilitarianism, the results are only observed. The people have to see whether the results will be positive. The decision will be made if the results are expected to be positive. If there is a risk of no positive consequences, the decision will be delayed (Cecchetto, 2018).

 

I started the job two years back. I had various options to start my career, but I chose the diversity-based organization where my friend was already working. The decision was made because I knew that working with friends and a diverse community would give me pleasure, and it will be the best decision of my life.Case Study There are various strengths of Utilitarianism. It gives the liberty to make the decisions, and the final approach or outcome is viewed or predicted before the time. The circumstances are usually decided or predicted by the independent decision. There are several weaknesses of the theory. It is observed that the consequences may not be personal choices. It only focuses on the outcomes and may have negative consequences in the end.
Kantian Ethics

 

The decision criteria are based on the principle or logic behind the action. It does not consider the consequences, but the theory deals with the logical actions that people may take. There are various ethical theories, and ethics are of various types. The Kantian ethical theory relies on the reasoning of how the situation can be handled if the logical action is taken. The consequences can be positive or negative, but the decision criteria do not consider it (Farmer, 2018).Case Study I observed a medical fraud in the healthcare organization where I used to work. My senior was also involved in the medical fraud, and I was the witness. I tried to suppress the voice of my heart, and I wanted not to inform anyone of it, but I could not do it. I raised my voice and fulfilled my ethical duty. I complained against the involved parties and got appreciation as well. I did not think of the consequences while reporting the incident. It is based on morals and values that show everyone is equal. Kantian Ethics has empowered everyone to think of reasons and follow moral ethics. There is another strength, and it is not to think of the future but to save the present. It involves human beings, but the other lives also have the same rights. The morals and values fit everyone. It has been observed that the situation might not be favorable always, but the rationale is always involved.
Ross’s Ethics

 

The decision criteria are based on the seven factors: fidelity; reparation; gratitude, justice; benevolence; non-maleficence, and self-improvement. People should consider all these factors before making a decision (Sison, 2018). I have to interact with several patients and always try to follow Ross’s Ethics. It is my moral duty to tell them the truth. I have made it my routine that there should be no lie with the patients, but they should always be told the truth and under clear circumstances. There are various strengths of Ross’s ethics. The morals are not devalued. The people are encouraged to speak the truth in all circumstances. Morals should be prioritized, and it is amazing for the people. It also promotes equality. Sometimes, it leads to following complex situations.

Personal attachments are not given much importance.

The principles and morals are the priority, and it leaves everything behind. These are some weaknesses that should be considered.

Natural Law Ethics

 

There are four principles on which the decision is based. The action must be good enough to follow or to make a decision. The second principle is to make the action before thinking of the circumstances. The third principle is to know that the intention is fair enough. The last reason to make the decision criteria is to understand that the action is caused by serious reasons (Duboz, 2018). I have decided to do the job in the healthcare organization because of natural law ethics. I have a good experience with this type of ethics. I have followed all four principles and have tried to maintain the dignity of all the actions taken in my career.Case Study The focus is on the action instead of predictions.

The intention is always good regardless of the consequences

The severe nature of work is already determined.

The consequences are often ignored.

It only focuses on severe consequences.

The morals and values do not consider happiness.

References

Cecchetto, C., Korb, S., Rumiati, R. I., & Aiello, M. (2018). Emotional reactions in moral decision-making are influenced by empathy and alexithymia. Social Neuroscience13(2), 226-240.

Farmer, Y. (2018). Ethical decision making and reputation management in public relations. Journal of Media Ethics33(1), 2-13.

Sison, A. J. G. (2018). Virtue ethics and natural law responses to human rights difficulties in business. Business and Human Rights Journal3(2), 211-232.Case Study

Duboz, R., Echaubard, P., Promburom, P., Kilvington, M., Ross, H., Allen, W., … & Binot, A. (2018). Systems thinking in practice: participatory modeling as a foundation for integrated approaches to health. Frontiers in veterinary science5, 303.

Case Study

Case Study essay paper

Case Study

ORDER A PLAGIARISM FREE PAPER NOWAnalysis Sections Points

1. Opportunity Evaluation 25

Product/ Service strengths; weakness

Analyze market segment; potential

How attractive (or not) is the industry: Direct/ Indirect Competitors

Analyze trends; regulations; other issues

What is the stage: Risk? Proof? (secondary; primary; real)Case Study

Analyze pricing, including value added and margins

Your analysis: How good is the opportunity and long-term sustainability

2. Business & Marketing Strategy 25

Product/ Service strengths; weakness

Analyze market segment; potential

How attractive (or not) is the industry: Direct/ Indirect Competitors

Analyze trends; regulations; other issues

What is the stage: Risk? Proof? (secondary; primary; real)Case Study

Analyze pricing, including value added and margins

Your analysis: How good is the opportunity and long-term sustainability

3. Management 25

What are the management needs for the business to achieve its goals?

Evaluate management/ team v. needs: Education; expertise; industry; track record; motivation

4. Analysis and Recommendations? 25

Key pros

Key negatives

Financial Analysis – Specify how much money the company will make (projections) and any other financial information to make your case (ex. current financial performance and discuss its impact on future earning potential)

What is your recommendation – invest, more study or reject. Study costs. Must include quantitative analysis to further enhance your recommendation

Case Study essay paper

Case Study

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Florida National University

HSA-6163 Planning and Marketing in Health Services Administration: Assignment Week 4

Case Study: Chapters 7 and 8

Objective: The students will complete a Case study assignments that give the opportunity to synthesize and apply the thoughtslearned in this and previous coursework to examine a real-world scenario. This scenario will illustrate through example the practical importance and implications of various roles and functions of a Health Care Administrator. The Case Studyinvestigativetrainings will advance students’ understanding and ability to contemplate critically about the public relations process, and their problem-solving skills. As a result of this assignment, students will be better able to comprehend, scrutinize and assessrespectable superiority and performance by all institutional employees.

ASSIGNMENT GUIDELINES (10%):

Students will critically measure the readings from Chapters 7 and 8 in your textbook. This assignment is planned to help you examination, evaluation, and apply the readings and strategies toyour Health Care organization.Case Study
You need to read the chapters assigned for week 4 and develop a 3-4 page paper reproducing your understanding and capability to apply the readings to your Health Care organization. Each paper must be typewritten with 12-point font and double-spaced with standard margins. Follow APA style 7th edition format when referring to the selected articles and include a reference page.

EACH PAPER SHOULD INCLUDE THE FOLLOWING:

Case Study

1. Introduction (25%) Provide a brief synopsis of the meaning (not a description) of each Chapter and articles you read, in your own words that will apply to the case study presented.

2. Your Critique (50%)

Case Studies

The AIDS virus is a sensitive and private issue, which often creates hesitation to reach out and educate. People are often reluctant to publicly inquire on testing locations or other information. With the AIDS epidemic becoming more alarming, government agencies are searching to find a way to intervene.

The Florida Department of Health wanted to launch a marketing campaign where people could privately and anonymously inquire about AIDS/HIV information. Fifty-five percent of AIDS cases in the state of Florida are between the ages of 13-39; the Florida Department of Health needed to effectively communicate with this largely effected demographic.

 

Case Study Challenge

1.  Provide AIDS testing facilities information located throughout Florida to citizens.

2. Keep identity anonymous allowing individuals to privately gather information?

3. Effectively communicate with the largely effected demographic of 13-39.

CASE STUDY CHALLENGE

1. Students should be asked to read the case and discuss all procedures done and suggest a solution program.

2.  How you can Provide AIDS testing facilities information located throughout Florida to citizens.

3.  How the marketing program can keep identity anonymous allowing individuals to privately gather information.

4.  How you can effectively communicate with the largely effected demographic of 13-39.

3. Conclusion (15%)

Briefly summarize your thoughts & conclusion to your critique of the case study and provide a possible outcome for the Marketing department.  How did these articles and Chapters influence your opinions about planning and marketing?

Evaluation will be based on how clearly you respond to the above, in particular:

a) The clarity with which you critique the case study;

b) The depth, scope, and organization of your paper; and,

c) Your conclusions, including a description of the impact of these Case study on any Health Care Setting and the marketing projects.

ASSIGNMENT RUBRICS

Assignments Guidelines

1 Points

10%

Introduction

2.5 Points

25%

Your Case Study Critique

6 Points

50%

Conclusion

1.5 Points

15%

Total

11 points

100%

ASSIGNMENT GRADING SYSTEM

A

90% – 100%

B+

85% – 89%

B

80% – 84%

C+

75% – 79%

C

70%  – 74%

D

60% – 69%

F

50% – 59% Or less.

Case Study essay paper

Case Study

ORDER A PLAGIARISM FREE PAPER NOW

Florida National University

HSA-6163 Planning and Marketing in Health Services Administration: Assignment Week 4

Case Study: Chapters 7 and 8

 

Objective: The students will complete a Case study assignments that give the opportunity to synthesize and apply the thoughts learned in this and previous coursework to examine a real-world scenario. This scenario will illustrate through example the practical importance and implications of various roles and functions of a Health Care Administrator. The investigative trainings will advance students’ understanding and ability to contemplate critically about the public relations process, and their problem-solving skills. As a result of this assignment, students will be better able to comprehend, scrutinize and assess respectable superiority and performance by all institutional employees.Case Study

ASSIGNMENT GUIDELINES (10%):

Students will critically measure the readings from Chapters 7 and 8 in your textbook. This assignment is planned to help you examination, evaluation, and apply the readings and strategies to your Health Care organization.Case Study

You need to read the chapters assigned for week 4 and develop a 3-4 page paper reproducing your understanding and capability to apply the readings to your Health Care organization. Each paper must be typewritten with 12-point font and double-spaced with standard margins. Follow APA style 7th edition format when referring to the selected articles and include a reference page.Case Study

EACH PAPER SHOULD INCLUDE THE FOLLOWING:

 

 

1. Introduction (25%) Provide a brief synopsis of the meaning (not a description) of each Chapter and articles you read, in your own words that will apply to the case study presented.

2. Your Critique (50%)

Case Studies

The AIDS virus is a sensitive and private issue, which often creates hesitation to reach out and educate. People are often reluctant to publicly inquire on testing locations or other information. With the AIDS epidemic becoming more alarming, government agencies are searching to find a way to intervene.

The Florida Department of Health wanted to launch a marketing campaign where people could privately and anonymously inquire about AIDS/HIV information. Fifty-five percent of AIDS cases in the state of Florida are between the ages of 13-39; the Florida Department of Health needed to effectively communicate with this largely effected demographic.Case Study

 

The Challenge

1.  Provide AIDS testing facilities information located throughout Florida to citizens.

2. Keep identity anonymous allowing individuals to privately gather information?

3. Effectively communicate with the largely effected demographic of 13-39.

 

 

CASE STUDY CHALLENGE

Students should be asked to read the case and discuss all procedures done and suggest a solution program.

2. How you can Provide AIDS testing facilities information located throughout Florida to citizens.

3.  How the marketing program can keep identity anonymous allowing individuals to privately gather information.

4.  How you can effectively communicate with the largely effected demographic of 13-39.

3. Conclusion (15%)

Briefly summarize your thoughts & conclusion to your critique of the case study and provide a possible outcome for the Marketing department. How did these articles and Chapters influence your opinions about planning and marketing?

Evaluation will be based on how clearly you respond to the above, in particular:

a) The clarity with which you critique the case study;

b) The depth, scope, and organization of your paper; and,

c) Your conclusions, including a description of the impact of these Case study on any Health Care Setting and the marketing projects.

 

ASSIGNMENT RUBRICS

Assignments Guidelines

1 Points

10%

 

Introduction

2.5 Points

25%

 

Your Case Study Critique

6 Points

50%

 

Conclusion

1.5 Points

15%

 

Total

11 points

100%

 

 

 

 

 

 

ASSIGNMENT GRADING SYSTEM

A

90% – 100%

 

B+

85% – 89%

 

B

80% – 84%

 

C+

75% – 79%

 

C

70% – 74%

 

D

60% – 69%

 

F

50% – 59% Or less.

 

 

 

 

 

 

 

 

 

 

 

Dr. Gisela Llamas

Case Study essay paper

Case Study

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Drive Personal Reinvention

Tactics for Improving Your Skills as an Innovator in Tough Times

E x c e r p t e d f r o m

The Silver Lining:

An Innovation Playbook for Uncertain Times

B yCase Study

Scott D. Anthony

Buy the book: Amazon

Barnes & Noble HarvardBusiness.org

Harvard Business Press Boston, Massachusetts

ISBN-13: 978-1-4221-3325-5

3322BC

For the exclusive use of c. tian, 2022.

This document is authorized for use only by caixuan tian in AD667 SB1 Innovation, Global Competitiveness, and National Economic Development taught by Esteban Lopez, Boston University from Jun 2022 to Aug 2022.

 

 

Copyright 2009 Harvard Business School Publishing Corporation All rights reserved

Printed in the United States of America

This chapter was originally published as chapter 8 of The Silver Lining: An Innovation Playbook for Uncertain Times,Case Study

copyright 2009 Innosight LLC.

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for

permission should be directed to permissions@harvardbusiness.org, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

You can purchase Harvard Business Press books at booksellers worldwide. You can order Harvard Business Press books and book chapters online at www.harvardbusiness.org/press,

or by calling 888-500-1016 or, outside the U.S. and Canada, 617-783-7410.

 

For the exclusive use of c. tian, 2022.

This document is authorized for use only by caixuan tian in AD667 SB1 Innovation, Global Competitiveness, and National Economic Development taught by Esteban Lopez, Boston University from Jun 2022 to Aug 2022Case Study.

 

 

8

Drive Personal Reinvention

F. Scott Fitzgerald famously wrote, “The test of a first-rate

intelligence is the ability to hold two opposed ideas in the mind

at the same time and still retain the ability to function.”

Unfortunately, most managers can’t pass this test. The Great

Disruption will require many managers to go to “innovation

school” to develop the skills to master paradox.

The word crisis was popular in 2008. At one point or another, pundits talked about the oil crisis, the global warming crisis, the sub-prime mortgage crisis, and, of course, the credit cri- sis. The hidden crisis emerging from the economic rubble of 2007–2008 is how corporate leaders have to deal with a chal- lenge for which they are completely unprepared. A genera- tion of corporate classical musicians who found success by following precise scores and furiously pounding keys now has to become expert at improvisation.

1

For the exclusive use of c. tian, 2022.

This document is authorized for use only by caixuan tian in AD667 SB1 Innovation, Global Competitiveness, and National Economic Development taught by Esteban Lopez, Boston University from Jun 2022 to Aug 2022.

 

 

The Silver Lining

Existing systems, structures, and development programs that were sufficient for leaders to thrive in an era of ordered capitalism are proving to be inadequate in today’s increas- ingly turbulent times. Most leaders just aren’t ready to grap- ple with the paradoxes that will increasingly characterize their day-to-day lives. Hope is not lost, however. Research by development psychologists and business scholars provides practical pointers for the personal reinvention required in the Great Disruption.

Change as the New Constant

Standard & Poor’s index of leading U.S. companies goes back to 1923. Research by Innosight board member and longtime McKinsey director Richard Foster found that in the 1920s (when the list contained ninety companies), when a company got on that list, it would stay on for about seventy years. That meant that people who joined an S&P company might be joining the same company their parents worked for and might expect their children to work there as well.1

Today, a company that enters the S&P 500 index will stay on it for about fifteen years. That means if you join a S&P 500 company today, it most likely won’t be an S&P 500 company by the end of your career because it will have failed, shrunk, or been acquired. Increasingly, companies that buck the trend and last thirty or more years will do so only by mastering the kind of transformation described in this book. As Foster notes, “It’s an entirely different world where the balance be- tween continuity and change has moved to change.”

2

For the exclusive use of c. tian, 2022.

This document is authorized for use only by caixuan tian in AD667 SB1 Innovation, Global Competitiveness, and National Economic Development taught by Esteban Lopez, Boston University from Jun 2022 to Aug 2022.

 

 

Drive Personal Reinvention

The Great Depression was about working hard, master- ing skills, and trying to find employment. The Great Dis- ruption is different. It is about developing the ability to be comfortable with constant change. To expect your business or function to be obsolete in a decade’s time. To be ready to transform not just your company, but yourself.

For generations, the United States had a culture that sup- ported entrepreneurialism and the creation of new growth businesses. Silicon Valley was the embodiment of this cul- ture. Today, individuals and the companies they work for have to develop this ability.

Think about the seemingly paradoxical requirements fac- ing leaders:

• I have to focus on running operations with laserlike precision without stifling creativity.

• I exist because of my big business, but “small saplings” are critical for long-term success.

• Data drives my decisions, but I have to trust intuition and judgment when data doesn’t exist or is vague.