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▶ Group Norms Every group has a set of norms, which is an implied code of conduct about what is acceptable and unacceptable member behavior. Norms can be written or unwritten; positive, negative, or neutral; and applied to all members of the group or only to certain members. In addition, groups will apply “punishment” or sanctions to members whose behavior deviates from the group’s norms. Norms can dictate the performance level of groups (e.g., high- or low-productivity work groups), the appearance of group members (e.g., bankers wear dark suits), or the social arrangement within the group (the chair of the committee sits at the head of the conference table).
Most organizations have formal rules of conduct, which are delineated in their policies and procedures manuals. For example, a hospital would have written policies on clinical research protocols, infection-control procedures for handling blood and other body fluids, the proper attire to be worn in operating room suites, and processes to ensure that the correct patient (and correct body part) is operated on (see Exhibit 16-2).
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Exhibit 16-2 Surgical Checklist
The implementation of a surgical checklist that guides the surgical team through a series of tasks and communications before, during, and after the surgery represents an example of written formal rules of conduct. Research by the World Health Organization found that implementing such a checklist reduced postoperative complications and death rates by over 30% (Haynes et al., 2009).
WHO Surgical Safety Checklist, Retrieved from
https://www.who.int/patientsafety/topics/safe-surgery/checklist/en/
However, in most instances, group norms (i.e., acceptable behavior of group members) are unwritten and learned by members through their interactions with others. For example, Crandall (1988) studied groups of cheerleaders, dancers, and female sorority members with high rates of eating disorders and noted that these groups adopted the behaviors of binging and purging as
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normal methods of weight control. The most popular members of the group binged and purged at the rate established by the norms of the group, and those who did not binge and purge when they first joined the group were more likely to take up the practice the longer they were members of the group. This alignment of behavior within a group is part of an individual’s socialization process. This process of socialization explains how unwritten norms become the “standards” for the group, as members begin to internalize the group’s norms as their own behavior standards. As such, norms do not just maintain order within the group; they also maintain the group itself (Youngreen & Moore, 2008).
Since most group norms are unwritten, they are usually not easily identified until violated. When group norms are violated, members of the group will attempt to convince the “deviant” to conform to the group’s standards of behavior. If the use of persuasion is not successful, the group may punish the member by withdrawing any “special” status that the member may hold, or the group may psychologically reject (e.g., ignore) the member. The final consequence for a member who refuses to conform would be dismissal from the group. Through this process, members learn the range or boundaries of acceptable behavior within a group. For example, Feldman (1984) describes the norms about productivity that frequently develop among factory workers. A person produces 50 widgets and is praised by their coworkers; a person produces 60 widgets and is sharply teased by coworkers; a person produces 70 widgets and is ostracized by coworkers. If
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the group norm is that producing 50 widgets allows for an acceptable pace of work, the group member who produces 70 widgets may either make the rest of the group look lazy or cause management to raise the target number of widgets to be produced, resulting in an uncomfortably fast pace of work. Not all behavior deviations will be enforced, only those violations that have some significant effect on the group meeting its goals (see Table 16-3). Norms are powerful forces not only din affecting the behavior of group members, but also in determining the degree of cohesiveness and conformity of the group.
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Table 16-3 Why Norms Are Enforced
Four Conditions Under Which Group Norms Are Most Likely To Be Enforced Example
If norms facilitate group survival
Group members do not disclose certain project details so that their work cannot be replicated by another group.
If norms simplify or make predictable what behavior is expected of group members
Employees are expected to be present at the office during the same hours each day so that clients always know where to find team members.
If norms help the group to avoid embarrassing interpersonal problems
Members do not discuss politics at work so that members with strongly held beliefs do not create conflict or ostracize other members.
If norms express the central values of the group and clarify what is distinctive about the group’s identity
Long white coats are worn by physicians so that patients know which care provider is their doctor and to symbolize a high level of training and expertise.
“The Development and Enforcement of Group Norms,” by D. C. Feldman, 1984. The Academy of Management Review, 9, pp. 47–53.
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▶ Cohesiveness The degree of cohesiveness (e.g., camaraderie) of a group is determined by various factors, which may include members’ dependence and physical location/proximity. The more significant factors tend to be (1) the size of the group, (2) experience of success by the group, (3) group status, and (4) outside threats to the group.
Size of the Group Researchers have determined that the size of the group has a direct impact on the cohesiveness of a group. When there are too many members, it becomes too difficult for members to interact. Luft (1984, p. 23) concluded that “cohesion tends to be weaker and morale tends to be lower in large groups than in comparable smaller ones.” What is the acceptable group size? Kameda, Stasson, David, Parks, and Zimmerman (1992) suggest that the optimum group size appears to be five members. Five-member groups are small enough for meaningful interaction yet large enough to generate an adequate number of ideas (Tubbs, 2001). Small groups may also avoid the problem of social loafing.
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Social Loafing Diffusion of responsibility refers to the phenomenon by which an individual feels less responsible for a task when they are part of a group. For example, people are more likely to call for an ambulance when they see a car wreck if there are no other cars on the road. However, if the car wreck occurs in the middle of a busy highway with lots of other cars around, people are more likely to assume that somebody else in traffic will make the call. Perhaps you ignore the full trashcan, hoping that your roommate will take care of it. A specific consequence of diffusion of responsibility that occurs in working groups is called social loafing.
Social loafing refers to the decreased effort of individual members in a group when the size of the group increases (Tubbs, 2001). Ringelmann (1913) identified this social phenomenon when he noticed that as more and more people were added to a group pulling on a rope, the total force exerted by the group rose but the average force exerted by each group member declined. The reason is that some members’ performance became mediocre because they assumed that other members would pick up the slack. Karau and Williams (1993) found that social loafing occurs across work populations and tasks. However, the researchers noted that if the participants’ dominant culture emphasized collectivism versus individualism as described by Hofstede’s four dimensions of national culture (Hofstede, 1984), the degree of social loafing decreased.
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Subsequent studies revealed that when an individual’s contribution is identified and the person is held directly accountable for and rewarded for their behavior, social loafing may be eliminated (Kerr, 1983; Kerr & Bruun, 1981; Shepperd, 1993; Szymanski & Harkins, 1987). Beyerlein, Freedman, McGee, and Moran (2003) stress that personal accountability by each group member for their role and responsibilities is required to achieve an effective collaborative team. When accountability is lacking, members will usually act in support of their own self-serving interests. For example, members will sometimes hold back if they believe that other members of their group are not expending equal efforts toward accomplishing the task.
Experience of Success Prior success of a group in reaching its goals has a direct impact on the degree of cohesiveness. No one wants to stay on a losing team. When a group fails to attain its goals, members display a lack of unity by infighting, finger pointing, and, finally, disassociation.
Group Status Cohesiveness is more prominent when admission into the group is more difficult to obtain because of various barriers or high criteria, such as education levels. This perception of status, whether real or not, creates a feeling of being in the “in-group” for the individuals who were able to overcome the barriers for admission into the group—for example, a physicians’ group.
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Outside Threats to the Group The cohesiveness of a group will increase if its members perceive that an external force may prevent the group from reaching its goals. Members of the group will unite to display a unified front to the opposing force. In addition, cohesive groups will unite against nonconforming members who threaten the esprit de corps of the group. Therefore, cohesive groups exert pressure on members of the group to conform.
Managers should assist their subordinates’ development into cohesive work groups because research has shown that cohesive units demonstrate a higher level of productivity than less cohesive groups do. However, managers need to be aware that group norms may mediate the relationship between cohesiveness and performance. On the one hand, if norms support performance-related activities, then cohesiveness is likely to improve performance. On the other hand, if norms support limited output or engagement in irrelevant tasks, cohesiveness may undermine performance (Berkowitz, 1954).
In conclusion, group cohesiveness is a product of social identification. According to Hogg and Abrams (1990), the more positive a member feels about their group, the more motivated the person is to promote in-group solidarity, cooperation, and support. In turn, the more cohesive a group is, the more likely it is that its members will interact socially and influence one another (Turner, 1987). Because of these interactions, we find that more cohesive groups have a tendency to eventually pressure their members toward a higher degree of
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conformity, and a high degree of conformity can lower the performance level of the group.
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▶ Conformity Strong group norms and high degrees of group cohesiveness can hamper the performance of a group because of conformity pressures. Conformity involves the changing of an individual’s perceptions or behaviors to match the attitudes or behaviors of others. This “normative social influence” occurs when we conform to what we believe to be the norms of the group in order to be accepted by its members.
One of the earliest studies in the conformity area was Sherif’s (1936) experiment that involved the autokinetic effect. Sherif pointed a light in a dark space that, although stationary, appeared to move. Subjects were asked, both as individuals and as members of a group, to estimate the amount of movement they observed. When in groups, the subjects changed their original estimates to more closely fit the answers of the other members. This experiment demonstrated the individual’s urge to conform.
Asch (1952) also conducted conformity studies. In Asch’s experiments, eight people were seated around a table. Seven of them were actually the experimenters or confederates. However, the eighth person, the subject, was unaware of this situation. The group was shown two cards; each card contained different lengths of vertical lines (i.e., no two lines matched in length on either card). The participants were asked to say which of the lines matched the length of another. One after another, the participants announced their decisions. The confederates had been told to give an incorrect
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response. The eighth subject sat in the next to last seat so that all but one of the other participants had given an obviously incorrect answer before the subject gave their answer. Even though the correct answer was obvious (i.e., no two lines matched in length on either card), Asch found that one-third of the subjects conformed to the majority, one-third never conformed, and the remaining one-third gave conforming responses at least once. This experiment was designed to create pressure on subjects to conform to others, which in fact they did.
Although Asch’s experiment has been criticized for being unrealistic (i.e., in the real world, individuals would be making decisions on subjects more complex and more important than the length of a line), it did confirm that “humans have the tendency to conform to the goals and ideas of a small group and tend to be unwilling to go against the group even if they know the group is wrong” (Asch, 1960).
Not all people conform. There is evidence that those who do not conform tend to have a healthy level of self- esteem and to have mature social relationships as well as being fairly flexible and open-minded in their thinking. For example, Crutchfield (1955) and Tuddenham (1958) found that there is a correlation between high intelligence and other personality traits and low conformity. Another important aspect of conformity is that it may lead to “groupthink.”
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▶ Groupthink Strong conformity pressures reflect members’ attempts to maintain harmony within the group. However, conformity may hamper a group’s performance by decreasing innovation and increasing faulty decision making. Janis (1982) referred to this situation as “groupthink.” Groupthink refers to conditions under which efforts to maintain group harmony undermine critical thought and lead to poor decisions (Janis, 1982; Janis & Mann, 1977). Janis, as cited by Tubbs (2001, p. 236), identified eight symptoms of groupthink:
Type I: Overestimation of the group—its power and morality 1. An illusion of invulnerability, shared by most or all
of the members, which creates excessive optimism and encourages taking extreme risks.
2. An unquestioned belief in the group’s inherent morality, inclining the members to ignore the ethical or moral consequences of their decisions.
Type II: Closed-mindedness 1. Collective efforts to rationalize in order to discount
warnings or other information that might lead the members to reconsider their assumptions before they recommit themselves to their past policy decisions.
2. Stereotyped views of enemy leaders as too evil to warrant genuine attempts to negotiate or as too weak and stupid to counter whatever risky attempts are made to defeat their purposes.
Type III: Pressures toward uniformity
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1. Self-censorship of deviation from the apparent group consensus, reflecting each member’s inclination to minimize to themselves the importance of their doubts and counterarguments.
2. A shared illusion of unanimity concerning judgments conforming to the majority view (partly resulting from self-censorship of deviations, augmented by the false assumption that silence means consent).
3. Direct pressure on any member who expresses strong arguments against any of the group’s stereotypes, illusions, or commitments, making clear that this type of dissent is contrary to what is expected of all loyal members.
4. The emergence of self-appointed mindguards— members who protect the group from adverse information that might shatter its shared complacency about the effectiveness and morality of its decisions.
Was groupthink the downfall of HealthSouth? (See Exhibit 16-3.) Many former senior managers of HealthSouth, a nationwide provider of rehabilitative services headquartered in Birmingham, Alabama, were indicted and in some cases found guilty of fraudulently and systemically inflating the company’s earnings and assets by approximately $4 billion during the 1990s.
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Exhibit 16-3 Five HealthSouth Officers Charged with Conspiracy to Commit Wire and Securities Fraud
Count 1 of the Information alleges that a conspiracy existed from in or about 1994 until the present between AYERS, EDWARDS, MORGAN, AND VALENTINE and with Owens, Smith, Harris, and others to devise a scheme to inflate artificially HealthSouth’s publicly reported earnings and the value of its assets, and to falsify reports of HealthSouth’s financial condition. It was part of the conspiracy that Owens, Smith, Harris, and others would provide the Chief Executive Officer (CEO) with monthly and quarterly preliminary reports showing HealthSouth’s true and actual financial results. After reviewing these reports, Owens, Smith, Harris, and others would direct that HealthSouth’s accounting staff find ways to ensure that HealthSouth’s “earnings per share” number met or exceeded Wall Street analyst expectations. After Owens, Smith, Harris, and others issued instructions as to the desired earnings per share number, HealthSouth’s accounting staff would meet to discuss ways to inflate artificially HealthSouth’s earnings to meet the CEO’s desired earnings numbers.
These meetings were known as “family” meetings, and attendees were known as the “family.” At the meetings, they would discuss ways by which members of the accounting staff would falsify
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HealthSouth’s books to fill the “gap” or “hole” and meet the desired earnings. The fraudulent postings used to fill the “hole” were referred to as the “dirt.” Owens, Smith, Harris, and others would and did direct one or more of the defendants, also members of the accounting staff, to make false entries in HealthSouth’s books and records for the purpose of artificially inflating HealthSouth’s revenue and earnings. Owens, Smith, Harris, and others would direct one or more of the defendants to make corresponding false entries in HealthSouth’s books and records for the purpose of artificially inflating the value of its assets, including, but not limited to, false entries made to (a) Property, Plant and Equipment (“PP&E”) accounts; (b) cash accounts; (c) inventory accounts; and (d) intangible asset [goodwill]. When events required that financial records and reports related to units of HealthSouth were called for by auditors, purchasers, and others, Owens, Smith, Harris, and others would direct one or more of the defendants to generate records and reports that would black out the false entries. Owens, Smith, and one or more of the defendants would, for the purpose of deceiving auditors, manufacture false documents for the purpose of supporting false record entries. One or more of the defendants would and did change codes on accounts to deceive auditors.
Reproduced from the U.S. Department of Justice’s Press Release dated
April 3, 2003.
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Managers must be careful because group members sometimes desire to maintain their close team relationships—or, in the HealthSouth case, “the family relationship”—at all costs. When group members operate in a groupthink mode, it may affect their decision making. For example, consider a health care provider who has proposed a new medical procedure for joint replacements. Some team members are initially resistant because of high training demands, even though the new procedure would establish best practices. To preserve harmony in the group, other staff members go along with the resisting members. In this case, the team has succumbed to group thinking instead of critical thinking.
Many researchers studied the culture of the National Aeronautics and Space Administration (NASA) after the Challenger disaster and found evidence of this type of groupthink. Engineers did not voice their concerns and criticism because of the strong team spirit and camaraderie at NASA. In other words, it is when groups display a high degree of cohesiveness that it is especially important to be on guard against groupthink.
Suggested safeguards against groupthink include (1) soliciting outside expert opinions during the decision- making process, (2) appointing a devil’s advocate to challenge majority views, (3) hypothesizing alternative scenarios of a rival’s intention, and (4) reconsidering decisions after a waiting period. Many researchers have questioned the effectiveness of these safeguards. For example, Bennis (1976) argues that a devil’s advocate
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will be ignored if the group perceives the member as only role-playing.
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▶ Conclusion Many factors influence our behavior. Group dynamics is a complex subject that attempts to provide us with some understanding of how individuals interact with one another and how those interactions become visible in our resulting behavior. Burton and Dimbleby (1996) developed a model, using interpersonal communication as the foundation, to help us understand the complexity of group dynamics (see Figure 16-3).
Figure 16-3 The Interface of Me and Them
Reproduced from Burton, G., & Dimbleby, R. (1996). Between ourselves: An
introduction to interpersonal communications (2nd ed.). London: Edward
Arnold.
The figure is titled “The Interface of Me and Them.” Since group dynamics is the attempt to understand how people interact with and influence others within groups, the title is most appropriate. When examining the model, you will notice that the bottom half is concerned
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with “me” and the top half represents “them.” The process begins with an individual’s needs or motivation, which triggers the “whole of self.” The triangle represents the various interactions we have with our groups that are filtered through our self-concept, which, taken together, form our personal roles. We then communicate our role and receive feedback from both ourselves (did I play the role correctly?) and others (did they confirm my behavior was correct?) to restart the process of redefining who we are as an individual (personal role). Although the model may appear somewhat complex, it only starts to explain the complexity of human behavior.
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Discussion Questions
1. Define the study of group dynamics and discuss why it is important to today’s managers.
2. Describe the four characteristics that define a group and provide examples of nongroups and groups.
3. Explain what is meant by “group interaction.” 4. Discuss how group interactions can be measured. 5. Discuss why people join groups and what sustains
their membership. 6. Explain the importance of the various roles that
members assume in groups. 7. Discuss how group norms are formed and
sustained within groups. 8. Explain how group cohesiveness is developed and
sustained. 9. Discuss why conformity can inhibit a group’s
performance. 10. Explain what behavior is displayed by a group that
is engaging in groupthink.
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Exercise 16-1 Form small groups of four to five individuals and discuss the following statement:
Often employees do not act or react as individuals but as members of groups.
When discussing this statement, the group members should share experiences of working in groups. Can you recall an instance in which you gave in because of the pressure to conform? Have you experienced a nonconformist in one of your groups? How did you or other members of your group react to “deviant” behavior in your group?
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Exercise 16-2 Form small groups of four to five individuals. Using the worksheet “Be the Best We Can Be Team Norms,” discuss how the answers to the questions can assist the group with developing team norms so that each member understands their expected behaviors.
Be the Best We Can Be Team Norms
1. When I am upset with someone I will: 2. One way I can avoid making premature
assumptions is: 3. When a member of the group is not contributing,
we will: 4. One thing I think we could do to resolve
differences among us as a team could be: 5. One thing important to me about how we
communicate (e-mail, text, F2F, how quickly should people respond, etc.) is:
�. When someone comes to complain to me about so-and-so on our team I/we will:
7. One way I’d like to be recognized or appreciated is:
�. One thing our group could do when we forget our Team Commitments and want to get back on track could be:
Reprinted with permission from Nance Guilmartin: author, The Power of
Pause: How to Be More Effective in a Demanding, 24/7 World.
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1114237 - Jones & Bartlett Learning ©
Exercise 16-3 Analyze the level of group cohesiveness in one of the groups to which you belong.
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1114237 - Jones & Bartlett Learning ©
References Asch, S. (1952). Effects of group pressure on the modification
and distortion of judgments. Reprinted in Swanson, G. E., Newcomb, T. M., & Hartley, E. L. (Eds.). (1965). Readings in social psychology (2nd ed.). New York, NY: Holt, Rinehart & Winston.
Asch, S. (1960). Social psychology. Englewood Cliffs, NJ: Prentice Hall.
Bales, R. F. (1950). Interaction process analysis: A method for the study of small groups. Chicago, IL: University of Chicago Press.
Bales, R. F. (1953). The equilibrium problem in small groups. In T. Parsons, R. F. Bales, & E. A. Shils (Eds.), Working papers in the theory of action (pp. 111–167). Glencoe, IL: Free Press.
Bales, R. F. (1970). Personality and interpersonal behavior. New York, NY: Holt, Rinehart & Winston.
Bales, R. F. (1999). Social interaction systems: Theory and measurement. New Brunswick, NJ: Transaction.
Belbin, R. M. (1981). Management teams: Why they succeed or fail. London, England: Elsevier/Butterworth-Heinemann.
Belbin, R. M. (1993). Team roles at work. London, UK: Elsevier/Butterworth-Heinemann.
Belbin, R. M. (2004). Management teams: Why they succeed or fail (2nd ed.). London, England: Elsevier/Butterworth-Heinemann.
Benne, K., & Sheats, P. (1948). Functional roles of group members. Journal of Social Issues, 4, 41–49.
Bennis, W. (1976). The unconscious conspiracy: Why leaders can’t lead. New York, NY: AMACOM.
Berkowitz, L. (1954). Group standards, cohesiveness, and productivity. Human Relations, 7, 509–519.
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Beyerlein, M. M., Freedman, S., McGee, C., & Moran, L. (2003). Beyond teams: Building the collaborative organization. San Francisco, CA: Jossey-Bass/Pfeiffer.
Blackburn, R., & Rosen, B. (1993). Total quality and human resources management: Lessons learned from Baldrige Award-winning companies. Academy of Management Executive, 7(3), 49–66.
Burton, G., & Dimbleby, R. (1996). Between ourselves: An introduction to interpersonal communications (2nd ed.). London, England: Edward Arnold.
Crandall, C. S. (1988). Social contagion of binge eating. Journal of Personality and Social Psychology, 55, 588–598.
Crutchfield, R. (1955). Conformity and character. American Psychologist, 10, 191–198.
Feldman, D. C. (1984). The development and enforcement of group norms. Academy of Management Review, 9, 47–53.
Haynes, A. B., Weiser, T. G., Berry, W. R., Lipsitz, S. R., Breizat, A. H. S., Dellinger, E. P., … Merry, A. F. (2009). A surgical safety checklist to reduce morbidity and mortality in a global population. New England Journal of Medicine, 360(5), 491– 499.
Hofstede, G. (1984). Culture’s consequences: International differences in work-related values (Vol. 5). Newbury Park, CA: Sage.
Hogg, M., & Abrams, D. (1990). Social motivation, self-esteem and social identity. In D. Abrams & M. Hogg (Eds.), Social identity theory: Constructive and critical advances (pp. 28–47). New York, NY: Harvester Wheatsheaf.
Janis, I. L. (1982). Groupthink: Psychological studies of foreign policy decisions and fiascoes (2nd ed.). Boston, MA: Houghton-Mifflin.
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Janis, I. L., & Mann, L. (1977). Decision making. New York, NY: Free Press.
Kameda, T., Stasson, M. F., David, J. H., Parks, C., & Zimmerman, S. (1992). Social dilemmas, subgroups, and motivational loss in task-oriented groups: In search of an “optimal” team size. Social Psychology Quarterly, 55, 47–56.
Karau, S. J., & Williams, K. D. (1993). Social loafing: A meta- analytic review and theoretical integration. Journal of Personality and Social Psychology, 65, 681–706.
Katzenbach, J. R., & Smith, D. K. (1993). The wisdom of teams: Creating the high performance organization. Boston, MA: Harvard Business School Press.
Kerr, N. L. (1983). Motivation losses in small groups: A paradigm for social dilemma analysis. Journal of Personality and Social Psychology, 45, 819–828.
Kerr, N. L., & Bruun, S. E. (1981). Ringelmann revisited: Alternative explanations for the social loafing effect. Social Psychology Bulletin, 7, 224–231.
Luft, J. (1984). Group processes: An introduction to group dynamics (3rd ed.). Palo Alto, CA: National Press.
Ringelmann, M. (1913). Recherches sur les moteurs animes: Travail de l’homme [Research on animate sources of power: The work of man]. Annales de l’Institut National Agronomique, 2e serie-tome XIL 1–40.
Shepperd, J. A. (1993). Productivity loss in performance groups: A motivation analysis. Psychological Bulletin, 113, 67–81.
Sherif, M. (1936). The psychology of social norms. New York, NY: Octagon Books.
Sprott, W. J. H. (1958). Human groups. Harmondsworth, England: Penguin Books.
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Szymanski, K., & Harkins, S. G. (1987). Social loafing and self- evaluation with a social standard. Journal of Personality and Social Psychology, 53, 891–987.
Taplin, S. H., Foster, M. K., & Shortell, S. M. (2013). Organizational leadership for building effective health care teams. Annuals of Family Practice, 11(3), 279–281.
Tubbs, S. L. (2001). A systems approach to small group interaction. New York, NY: McGraw-Hill Book Company.
Tuddenham, R. (1958). The influences of a distorted norm upon individual judgments. Journal of Psychology, 46, 227–241.
Turner, J. (1987). Rediscovering the social group. New York, NY: Basil Blackwell.
Turner, M. E. (2000). Groups at work: Theory and research. Mahwah, NJ: Lawrence Erlbaum Associates.
U.S. Department of Justice, Northern District of Alabama. (2003, April 3). Five HealthSouth officers charged with conspiracy to commit wire & securities fraud [Press Release]. Available from www.usdoj.gov/usao/aln
Youngreen, R., & Moore, C. D. (2008). The effects of status violations on hierarchy and influence in groups. Small Group Research, 38(5), 569–587.
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1114237 - Jones & Bartlett Learning ©
© Valex/Shutterstock
CHAPTER 17
Groups
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LEARNING OUTCOMES
After completing this chapter, the student should be able to understand the:
Importance of a group’s size. Three broad categories of groups. Difference between informal and formal groups. Different types of task groups. Five stages of group development. Seven stages of group decision making. Different methods for group decision making.
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▶ Overview In this chapter, we discuss the composition, structure, formation, and decision-making processes of groups. The optimum size for a group is five members. However, we will find groups with fewer than five members and groups with more. When a group has fewer than five members, problems may arise relating to an inability to make decisions and lower levels of creativity (Tubbs, 2001). If the group becomes too large, subgroups may form, distracting from the main group’s purpose, and a majority of the group’s time may end up being used for functioning purposes (e.g., organizing members, assigning roles) rather than the required task (Tubbs, 2001). All these situations can cause frustration among the members and stifle the group’s ability to reach its goal.
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1114237 - Jones & Bartlett Learning ©
▶ Types of Groups Groups can be categorized into three broad groups: primary, secondary, and reference. In the workplace, groups operate under an informal or formal structure.
Primary Groups Primary groups include one’s family and close friends and/or peers. Social psychologists tend to see primary groups as those that (1) involve regular contact between members of the group, whether through direct face-to- face interaction, technology, or other means, and (2) are fairly small (20 members or less) (Blackler & Shimmin, 1984). In addition, primary groups (1) involve cooperation, (2) share common goals, (3) are familiar with all members, and (4) have an understanding of the role(s) of each member.
Primary groups have a powerful influence on a member’s self-concept as well as the development of the individual’s perceptions and attitudes. During an individual’s childhood and adolescent years, the family unit has a strong impact on the development of the individual’s personality and future behaviors, both socially and in the workplace.
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Secondary Groups Secondary groups comprise the larger circle of people we associate with. During the adult years, associations with work and professional groups will influence an individual’s attitudes and perceptions through various interactions with these different groups. For example, Jane Kerry, RN, is a member of a family group, a member of a group of close-knit friends that meet for dinner once a month (friends Jane has known from high school), the president of her local bridge club, a member of Glen Haven Hospital’s neonatal intensive care unit nursing staff, and a member of the hospital’s quality improvement committee. Jane is also a member of larger groups: She is a member of the hospital’s pediatric department, a member of the hospital’s nursing staff, and a member of the community in which the hospital is situated. In addition, she is a member of the American Nurses Association. Some of these group memberships may be short term, and others may be long term. No matter what the time frame, each group will influence Jane’s behavior.
1114237 - Jones & Bartlett Learning ©
Reference Groups “Reference group” is a term coined by Herbert Hyman (1942, 1968) to designate a group that an individual uses as a point of reference in determining their judgments, preferences, and behaviors. A person uses a reference group as an anchor point for evaluating their own beliefs and attitudes. Even though an individual may or may not be a member and may or may not aspire to be a member of a reference group, the group can have great influence on the person’s values, opinions, attitudes, and behavior patterns. For example, one might say, “I’m not like those people” or “I am like those people.” A reference group’s influence on an individual may be positive or negative. An individual may pattern their beliefs and behavior to be congruent with or opposite to those of the group. Churches, labor unions, and political parties are examples of reference groups that can be positive or negative for specific individuals. The size of a reference group can range from a single individual (e.g., a movie star, athlete, or supermodel) to a large aggregate of persons, such as a political party or a religious institution.
We are using De Beers Canada and Attawapiskat First Nation for our Management Consulting Template.
Here is some helpful information: The Management Consulting Template (MCT) is a tool used by consultants to track their thinking and analysis in
order to come up with strong/best recommendations for the client based on the diagnostic tools/facts/critical
analysis/logic. The goal in MCT is to pick one of three options for the client and work it through the MCT and to
therefore have a persuasive argument in place. (Later when finished using the MCT the consultant would then use
the information within the template to write up a professional report. However. for this assignment we only
complete/deliver the MCT template itself). Send Individual Assignment 2 to [email protected]
Note some of the important aspects/pointers I typically expect/review/explain for this assignment:
i.What are the steps one should consider in Individual Assignment 2 of BUSI640- using the Management Consulting Template (MCT) with De Beers Canada and Attawapiskat First Nation? a. review the Case Study to understand the situation in 2016. You are doing an analysis from the perspective of 2016 in order to prevent/improve the situation as it actually occurred/came to in 2020. b. select the diagnostic tools that will help you with diagnosis of the 2016 situation c. think through b. with the help of those tools d. come up with three options (Table 2) that you as the consultant decide are the best three options for the consultant to overcome/improve the situation the client is facing e. select only one of those three options as your preferred option
f. from that point on only answer the remaining tables in terms of the one preferred/selected option you chose.
Having done the above you would have now arrived now at Table 3ii. What about critical issues and WNTBA? For each of 3.1, 3.2 etc you now need to think through the question "what are the critical issues (problems or barriers, etc) that will need to be addressed in order to achieve the one option I have selected/chosen? For each of the sections (3.1, 3.2 etc) answer the questions for each of the critical issues you find for that section.
a. Table 3B - Table 3b is closely connected to Table 3.1; 3.2; 3.3 etc - the box in Table 3B that states "What Needs to Be Addressed" can be understood as a question "What needs to be addressed in order to overcome/resolve the critical issue(s) that were found in Table 3.1; 3.2; 3.3 etc
b. Table 4 - Table 4.1; 4.2; 4.3 etc are closely connected to Tables 3B - WNTBA is What Needs to Be Addressed - the WNTBA Statements come from Table 3.1; 3.2; 3.3 etc - having filled in the statements you now need to then find/decide on two solutions/ideas/alternatives (i.e. Alternative #1; Alternative #2) for the client that best address/help solve each WNTBA - having come up with two alternatives for each WNTBA, you now need to select one of the two alternatives as your recommendation for each WNTBA and give the rationale as to why you chose that alternative (bottom box of 4.1; 4.2, 4.3 etc.)
c. The section of Table 5 is where the final recommendations and outcomes are written that result from the critical analysis work you did in the earlier sections/tables leading up to Table 5.
d. Only the reference page is APA; type directly into the boxes; no other paper/documents etc are necessary beyond the template other than the reference page and any appendices you decide to add; it is ok to use professional point form but preferably in Tables 2 (the three options) use full sentences/paragraphs and give good detail as Tables 2 will likely contain the most information and the other tables will be sentences and smaller sections/answers typically. This is a critical analysis assignment where you show you have tracked your thinking, analysis, and recommendations AND that they fit together.
9B16M171
DE BEERS CANADA: THE ATTAWAPISKAT CONTEXT1
Ron Mulholland wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com. Copyright © 2016, Richard Ivey School of Business Foundation Version: 2016-10-21
The De Beers’ Victor Mine was a diamond mine located 90 kilometres west of the James Bay Cree community of Attawapiskat. By May 2016, there had been a great deal of press coverage regarding the relationship between the two groups. The Victor Mine was nearing the end of its production, and De Beers was contemplating whether to operate the Tango Extension, a nearby deposit that could use the processing facilities existing at Victor Mine. De Beers had to consult the nearby First Nations communities, including Attawapiskat, to gain approval to proceed with exploration and bulk sampling. Did the history of Attawapiskat First Nation (Attawapiskat) affect the relationship with De Beers? Could past discussions with the community have been conducted differently to reduce conflict? What lessons could be applied to the discussion surrounding the Tango Extension and other future developments? THE VICTOR MINE The Victor Mine opened in 2008 following a lengthy period of exploration. It was Ontario’s first diamond mine, and although the deposit would be completely exploited within 12 years, the diamonds were of above- average value; therefore, De Beers decided to proceed with mining. Approximately CA$1 billion2 was spent on developing the open-pit mine and processing and support facilities. The projected value of the diamonds to be mined over the mine’s life was close to $3 billion.3 De Beers had signed agreements with four First Nations communities including Attawapiskat, which was closest to the mine. A memorandum of understanding (MOU) in conjunction with an exploration agreement was the first formal agreement with Attawapiskat; later, an impact benefit agreement (IBA) was signed. An IBA typically conferred monetary and other benefits to the signatory community.
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Page 2 9B16M171 ATTAWAPISKAT FIRST NATION Attawapiskat was a community of Indigenous people, located on the west shore of James Bay at the mouth of the Attawapiskat River. The community was 220 kilometres north of the small town of Moosonee and 500 kilometres north of Timmins, the nearest major centre. It was adjacent to Akimiski Island, the largest island in James Bay, located halfway up the bay’s west coast. The population was approximately 3,500, including 1,900 people who lived on the reserve.4 The community was governed by a chief and 12 councillors, elected every three years. The council supervised the community’s management and infrastructure that included health, education, social assistance, and housing. Attawapiskat had been in the press over several issues: disputes with Canada’s federal government,5 the Idle No More Protest,6 the community’s relationship with De Beers and the Victor Mine road blockades,7 and a lamentable, high rate of suicide among its youth.8 On the plus side, the IBA provided Attawapiskat with employment and business opportunities and a payment of about $2 million per year.9 Of concern to Attawapiskat was the mine’s impact on the environment and other community problems unrelated to the mine. The relationship between De Beers and Attawapiskat had been an uneasy one, with costly winter road blockades in 200910 and 2013.11 PRE-HISTORY Northern Ontario, including the area encompassing the Attawapiskat reserve, had been covered by the Laurentide Ice Sheet, which retreated from its greatest extent just south of the Great Lakes between 9,000 and 6,000 years ago.12 A record of human occupancy in the area began approximately 4,000 years ago. There was more evidence of the history of the Inuit because their historical sites were more easily discovered and accessed on the barrens. Isostatic rebound13 of up to one metre per century was changing the character of the coastline and islands.14 As a result, coastal records of northern First Nations people were at varying distances inland, making discovery difficult. It was unclear how First Nations people occupied and used the James Bay coast before European settlers arrived. They did not have hunting technology (harpoons) or seaworthy boats for travelling on the seacoasts as the Inuit did. It is possible that First Nations people did not settle in the area until the Hudson’s Bay Company (HBC) established trading posts that became part of the way of life.15 HISTORY In 1610, Henry Hudson became the first European of record to visit the bay, later named after him, and its smaller bay to the south. His exploration was motivated by the search for a northwest passage to the Orient. When it became evident this route was not the way to the Orient, interest waned. James Bay was not re- visited for twenty years, at which time Thomas James and crew wintered there on Charlton Island, the largest island in the southern part of the bay.16 There was again little further interest or exploration until 1670 when the HBC was founded. In 1670, a cousin of King Charles II, Prince Rupert of the Rhine, organized financing of the “Company of Adventurers,” which became the HBC. A competent soldier, commander, admiral, and patron of the arts, Rupert was on good terms with the king, who granted to Rupert and the company propriety rights for trading on and colonizing the land encompassed by the drainage basin of Hudson Bay. This was a massive swath of property, covering almost 40 per cent of what is now Canada. To put it in perspective, this stretch of land was twenty times larger in area than the United Kingdom, over which Charles II ruled.17
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Page 3 9B16M171 With the HBC established, trading posts were set up along the coast. Ancestors of present day Attawapiskat members would have participated in trade with the company. The trading post nearest to the future coastal village of Attawapiskat was the Albany River post established in 1674. This post was 100 kilometres to the southeast; it eventually became home to the Fort Albany and Kashechewan First Nations.18 Development of the north was part of Britain’s plan to establish dominance in the new colonies. The HBC posts gave the British access to the interior and west of what became Canada, effectively leapfrogging the French in the race to establish trade networks in the New World. The French, through the efforts of Samuel Champlain, had established colonies on the St. Lawrence River and trade with the Indigenous inhabitants there as early as 1603.19 There were ongoing conflicts between the French and English and their respective Aboriginal allies. The power struggle between England and France had been ongoing for 150 years, but the Seven Years’ War (1756–1763) extended the conflict to all of the major European powers, involving, among other things, domain over their colonial lands. The war settled in 1763 with the Treaty of Paris, which gave the British control over France’s territory in North America.20 During this time, the British had created an “Indian Department” to organize co-operation with their Aboriginal allies. The British also realized success in the nascent country would depend on positive relations with the Aboriginal people and their continued support in military conflict. The Royal Proclamation of 1763, issued by King George III to claim Britain’s territory in North American territory, established guidelines for European settlement of Aboriginal land. The Proclamation identified “Indian Nations” and set out regulations regarding land transfers. Specifically, the Proclamation declared that Aboriginal land title would continue to be Aboriginal land until otherwise agreed by treaty. Further, only the Crown could negotiate the treaties and buy Aboriginal land, then sell it, if desired, to settlers.21 Britain’s control over the American colonies, granted in the Treaty of Paris, was challenged by the colonists themselves. Britain’s attempt to impose taxes and laws on the colonies caused a political upheaval that resulted in the American Revolution and the American colonies’ independence from Britain. After the American Revolution, the colonists who remained loyal to the Crown migrated north to settle in what remained British territory. These 30,000 United Empire Loyalists added pressure for claims to new land.22 The War of 1812 was the last British–American conflict in North America. Aboriginal warriors fought with the British and their colonists to defeat invading American forces. On the American side, support for Aboriginal land rights in the form of an Indian Territory was a “profound disappointment.” In British territory it was the end of “self-reliance and self-determination” for First Nations as the war motivated more settlers and demand for yet more settlement land. As the settlers began to outnumber the Aboriginals, political expediency shifted influence away from they who had lived on the land for hundreds of years.23 A treaty in 1836 established Manitoulin Island as a reserve for dispossessed Aboriginal people. Politically motivated, the Lieutenant Governor Sir Francis Bond Head sought “new settlement lands” by convincing the natives to give up their arable land in southern Ontario in favour of a move to Manitoulin Island.24 In 1850, the Robinson Treaties transferred more Aboriginal land to the Crown and established reserves on Lake Superior and northern Lake Huron along with rights to continue traditional practices on their former territories (subsequently Crown lands). This followed the discovery of minerals in the area. The Robinson Treaties were a template for a following series of numbered treaties in Ontario and Canada’s West.25 In 1876, the Indian Act26 was introduced, purporting to provide care and protection over First Nations people. In reality, the Act became a paternalistic tool for subjugation.27
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Page 4 9B16M171 The Swampy Cree or West Main Cree people occupied the land on the west coast of James and Hudson Bays up to what became the Ontario–Manitoba border and approximately 200 kilometres inland.28 The 2016 location of Attawapiskat was formerly a Cree summer camp for fishing and gathering. In 1894, a mission was set up there by the Oblates of Mary Immaculate, a Roman Catholic congregation originating in France. The Oblates believed that other creeds and cultures were heathen, and the Oblates’ role was to convert the “heathens” to the beliefs and structures of the Roman Catholic order.29 In 1901, the HBC established a trading post in the area.30 First Nations people began to travel to the mission or trading post to participate in religious or social events, or to trade. A permanent church and residence followed in 1912. Families lived in the wilderness along the Attawapiskat and Ekwan Rivers. As with other Aboriginal peoples in northern Ontario, the traditional territory occupied at different seasons was wide-ranging. The Attawapiskat ranged as far north as Cape Henrietta on Hudson Bay and east to the James Bay coast and Akimiski Island. Game was plentiful on the island, and families co-operated to harvest caribou. To the south, the range extended to the Kapiskau River, flowing from the southwest to enter James Bay approximately 30 kilometres south of Attawapiskat. To the west, Attawapiskat ranged to Missisa Lake, which was 200 kilometres inland from James Bay. The total area encompassed 30,000 square kilometres (see Exhibit 1).31 The Attawapiskat social structure was based on families, with the smallest unit consisting of typically two families in which the men or women were related as siblings. Up to five families travelled together as a microband with an informal leader whose status resulted from age or demonstrated wisdom. Members of a microband joined with other microbands typically related by marriage—for example, a wife’s brother or a sister’s husband—forming a group of up to fifteen families. This would be a macroband. Each macroband had a territory that was defined by a river watershed. They would be conscious of adjacent macrobands who had their own traditional territory. In spring, they would move to the coast to fish and hunt moulting ducks and northbound geese. Summers would include fishing, some hunting, gathering of edible flora, and berry picking. Fall would bring a return to the bush to hunt caribou and snare rabbits.32 TREATY NO. 9 (JAMES BAY TREATY) In 1905, Canada was growing, its population was expanding west with support from the developing railway, and mining properties were being explored. There was pressure from Jabez Williams, an HBC superintendent, and Chief Louis Espagnol, a British supporter and HBC employee from a Spanish River First Nation on Lake Huron, to negotiate land use with the First Nations. Each wanted a treaty for different reasons: Williams, perhaps to support exploration of personal mining interests; Espagnol, to control the activities of White trappers who were depleting beaver and other game populations.33 Negotiations began for Treaty No. 9 (Treaty 9), also known as the James Bay Treaty. Commissioners for Canada were Duncan Scott and Samuel Stewart; Daniel MacMartin represented Ontario. The first order of business was to come to an agreement between federal and provincial representatives, resolving the lingering conflict over liability for increases in annuities paid to First Nations under the Robinson Treaties. This was done on July 3, 1905.34 The Attawapiskat community was included in “the treaty band created at Fort Albany” with the signing in August of 1905. According to Morrison, a historical researcher, “Once [First Nations people] began to understand what the government intended the reserves to be used for, these more remote groups [Attawapiskat, for example] began to press the government for separate band and reserve status.”35 What they were getting from the government included money, help with medical and educational issues, and protection from further incursions on their land. With the arrival of the railway and White trappers, the more southern communities “had been restricted in their traditional ways already.”36
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Page 5 9B16M171 In 1930, the Attawapiskat people, having made their case for a separate reserve, received a parcel of land on the Ekwan River, under an adhesion37 to Treaty 9. This settlement, listed as Attawapiskat 91, was located 160 kilometres northwest of the current reserve identified as Attawapiskat 91A.38 There was little negotiation, and it was not clear whether the terms of the treaty were well understood or properly conveyed to the community. There were many accounts of how the Elders interpreted the treaty and what they understood was to be received in exchange for their agreement to the terms. Elders describe the treaty as an agreement to “share” not “surrender” the land; rights to the land and of the people were not “abolished.”39 In the words of Hosea Wynne, an elder from Kashechewan First Nation, “This is Indian land . . . [W]hen they came here they said they found land. They didn’t find it. It wasn’t uninhabited. The people who owned the land were here.”40 Cultural anthropologist Cummins stated:
The signing of Treaty 9 was the final major Euro-Canadian incursion in the lives of the Attawapiskat Cree. The coming of the Church affected them religiously and culturally, the fur companies brought them into a new economic sphere, but the treaty signing would tie them forever into the government. All subsequent changes would be legitimized by government dicta.41
AFTER THE TREATY After the treaty was established, furs were harvested and traded, and people lived in their traditional manner, visiting the post (at the river’s mouth) to trade and to live there for a portion of the year. However, change was brewing. Gradually, from the 1930s to the 1960s, Attawapiskat became a permanent settlement as people left their bush camps and moved to the reserve.42 At the same time, the Oblates were organizing a residential school in Fort Albany. Residential schools were based on a late 1800s policy goal of teaching Aboriginal children farming and trades while ending “a separate Aboriginal identity and government.”43 Attendance was compulsory and enforced by a government agent under the authority of the Indian Act. The school at Fort Albany, St. Anne’s Residential School, operated from 1936 to 1964. The government (Indian Affairs, the ministry at the time) knew the system was failing to meet its goals and was expensive, and was considering closing the schools as early as the 1940s. However, the churches supported and maintained the schools, claiming the churches were “committed to assimilation of Aboriginal people and the destruction of reserves.”44 The result for children who attended the school and others like it was devastating: they lost their language, culture, and community, and for some, it resulted in death. Mortality rates in residential schools were up to ten times higher than in the average population. The registered number of deaths was 3,201; however, based on the hearings held by the Truth and Reconciliation Commission, Justice Murray Sinclair, the Commission chair, estimated that because of missing and unreported deaths, the total was closer to 6,000 deaths among the 150,000 students who came through the system.45 This would be equivalent to 12 deaths in a school of 400 children. In 1947, the Ministry of Natural Resources issued formal regulations for trap lines in Ontario. Territories and quotas were established that were different from the prior informal familial system managed by the First Nations. This policy likely contributed to the decline of traditional family boundaries, conservation practices, and traditional lifestyle.46
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Page 6 9B16M171 In 1954, twenty-four years after signing the adhesion to the treaty, the Attawapiskat people were discontent about the location of the reserve. It was 160 kilometres inland and away from the Attawapiskat trading post located on the coast of James Bay, so it was inhabited by only those whose traditional hunting lands were proximal.47 The chief and two councillors, with the support of 200 band members, wanted to live closer to the trading post at the mouth of the river because fishing there was good, land was arable for cultivation, and there were two churches, a school, hospital, and store. In its bureaucratic way, in consideration of the location relative to the two churches and other minutiae, it took 10 years for the government to decide to establish a reserve of 325 acres—200 times smaller than the Ekwan parcel of land. In 1964, the band was formally established on what became its 2016 location, where members had been living unofficially for years. The population of Attawapiskat in 1999 was 1,260, with 650 of those being of employment age (15–65 years). The economy was based on employment with government-supported services. Families still went on the land to hunt, but this was only a part-time or periodic use of traditional activities to provide food. Approximately 300 people were employed while another 350 were on social assistance. The major employers in 1999 were the band and the province, employing two of every three workers. Specific employment numbers included the Education Authority (104), Attawapiskat First Nation Government (41), the hospital (40), the Northern Store (24), and Health Services (14). Twenty-one other businesses provided the balance of employment in the community.48 Living conditions on the reserve were less than ideal. The cost of purchase for all goods was high because of transportation expenses. Housing was in dire condition due to past flooding of homes and subsequent mould problems for those who had homes. Many did not have homes, and instead shared overcrowded space while others chose to live in tent structures that were uncomfortable in winter months. There was no school for 14 years, from 2000 to 2014, because the property was contaminated by diesel fuel. Housing and the school were underfunded by the government. There had been sewer and water problems for a number of years. Tragically, for complex reasons, the suicide rate among young people was high.49 The revenue sources for the reserve included federal funding, their own sourced funding such as that from economic development activities, and support from other levels of government.50 Managing the reserve operations and finances was a complex balancing act that required experience, skill, patience, and tact as there was never enough money to build houses for all who were in need, while also maintaining the infrastructure and services already in place. There had been several different professional and local managers of the operation.51 Clayton Kennedy, who managed the band finances from 2001–2004 and again from 2010–2012, described the money problem as not a result of illegal behaviour but of “too many trips to Timmins . . . too many workshops . . . too many staff . . . inexperienced workers . . . not capable of doing the job.”52 This was indicative of capacity issues within the band, limiting its ability to manage its own internal financial affairs. With no economic engine to replace the traditional way of living by subsistence means—a system that had worked for hundreds, if not thousands of years—unemployment rates were high in the community. Social and health problems profiled in the press flowed from lack of employment, a high cost of living, and a substandard infrastructure. At that time, the community would have welcomed any form of economic development.
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Page 7 9B16M171 DE BEERS Into the above socio-economic environment entered De Beers, a sophisticated, international mining company. It had been in operation since 1888 in over 20 different countries. In 2014, its revenues were US$7 billion.53 Exploration for pipes of kimberlite, known for potentially hosting diamonds, began in the James Bay Lowlands in the 1960s. By 1987, Monopros Limited, a De Beers subsidiary, had found kimberlites at what would become the Victor Mine.54 Advanced exploration was followed by a pre-feasibility study, a further feasibility study, and more capital-intensive stages of exploration with the goal of proving to investors and the company that the mine was an economically attractive asset. Ultimately valued at potentially CA$2.5 billion in extractable diamonds that were also of good quality, De Beers decided to proceed with mining the site.55 Canada’s Constitution Act56 recognized and affirmed Aboriginal rights, which were subsequently recognized and affirmed in Ontario’s Mining Act.57 Following these legislated requirements and De Beers’ own company policy, De Beers initiated communication with local stakeholders. This was the start of a series of information gathering, consultation, action, and feedback activities all leading to a plan for the mine that would satisfy stakeholders. Early in the process, in 1999, De Beers signed an MOU with Attawapiskat that foresaw environmental stewardship, business, training, and employment opportunities. Over six years, using different modes of communication and involving over 100 meetings with Attawapiskat representatives, information was gathered and used to develop a comprehensive environmental assessment. The 614-page report was completed in 2005 and submitted to the Canadian Environmental Assessment Agency.58 Further meetings regarding an IBA resulted in an agreement signed in 2006. The IBA, which had an 86 per cent approval among community members, provided a $1 million signing bonus and at least $2 million per year over the life of the mine. It was expected that the mine would close in 2018, after approximately 12 years of operation. The payments to Attawapiskat were deposited in a community trust that would receive around $30 million by the end of the life of the Victor Mine. In addition, contracts to Attawapiskat-related companies exceeded $325 million. De Beers also provided $2 million for training programs.59 All mining companies in Ontario paid a tax that was a percentage of profits. In the case of De Beers, the tax would have been 5 per cent of profits because the mine was remote.60 Additionally, De Beers was required to pay a royalty of 12 per cent of profits to Ontario. Because of the high initial cost of construction, profits were not reported in the mine’s early days. In 2015, the Ontario government (in a breach of confidentiality) reported that De Beers paid $226 in royalties for the financial year 2014.61 The community’s engagement with potential employment had been difficult because of capacity issues. There were not enough people with the required skills to fill both roles in the community (e.g., management, environmental assessment, and program evaluation) and at the mine. The community was also compromised by long-standing flooding issues, housing problems, high unemployment, substance abuse problems, and financial and management issues that preceded the arrival of De Beers. This led to frustration in the community, and in February 2009, a number of Attawapiskat people set up a blockade to prevent transport of materials over the ice road from the railhead at Moosonee to the De Beers Victor site. The blockade was significant because the mine depended on use of the winter road to transport heavy, bulky supplies into the site. Every day of a blockade reduced the amount transported, with critical materials having to be brought in with air transport. DeBeers estimated this cost the company $3.5 million.62 In 2013, a group of frustrated individuals placed another winter road blockade, claiming that the community was not receiving enough benefit from the mine.63
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Page 8 9B16M171 Exacerbating the complex situation and lack of resources, a significant number of those hired to work at the mine moved to Timmins.64 Anecdotal evidence suggests that, having attained a good income in Timmins, they chose to live in the small city in northern Ontario to take advantage of housing and services available there.65 The environmental impact of the mine was part of the 614-page Comprehensive Study Report. The document was approved by the Ontario Ministry of the Environment and Attawapiskat before the mine was constructed. Complaints and questions were raised as early as 2007 about potentially elevated mercury levels in fish as a result of mining activity although mercury existed in the James Bay Lowlands before De Beers started mining.66 Mercury levels were elevated in fish in the Attawapiskat River before De Beers arrived and in the Albany River, which was distant from the Victor Mine. There was already a limit on the type and amount of fish that should be consumed. The mercury could have been from several sources, natural and atmospheric. Burning coal was a known source of atmospheric mercury.67 Still, De Beers was accused of not properly monitoring mercury levels downstream of its mine, a charge De Beers flatly denied.68 The Tango Extension was planned as a way to extend the useful life of mining and processing at the Victor site. Since the Victor Mine was developed, Ontario had revised its Mining Act, making consultation with affected Aboriginal communities mandatory. With a $1 billion investment and a trained work force available, costs to start up and mine the nearby Extension (6.5 kilometres from the Victor site) would be reduced. De Beers planned to do exploration drilling and produce a bulk sample by 2015;69 however, community resistance caused delays and eventually that plan was put on hold in February of 2016.70 Adjacent First Nations communities such as Weenusk were divided, with some being wary of supporting the Tango Extension because of what they saw at Attawapiskat.71 THE FUTURE, TANGO, AND CORPORATE SOCIAL RESPONSIBILITY A number of questions would affect De Beers’ negotiations with First Nations. Attawapiskat’s infrastructure, services, and finances were clearly in poor shape. It seemed as though the community had been shifted over time into a market economy lifestyle without the proper infrastructure, services, finances, and capacity to manage. Although employment was created for some and a few service businesses benefited, this did not seem to translate into overall benefit for the community. There was also the issue of a lack of skilled and experienced people in the community to hire. Was it reasonable to hope that conditions would improve if Attawapiskat extended its relationship with De Beers? For its part, De Beers attempted to be consultative, held many meetings to try and communicate their position and answer questions, met the requirements of the provincial mining and environment regulations, passed a successful vote on the project with the community, and thought for the most part they had fulfilled their obligations. Jonathan Fowler, a De Beers negotiator, did say if they were doing it again, they would start earlier and hire more local spokespeople to explain the concepts.72 This was recognition that the process could have been improved. When the company announced they had stopped exploration at Tango, company spokesperson Tom Ormsby indicated “lessons have been learned.”55 If corporate social responsibility included efforts to improve economic, social, and environmental conditions for a community while reducing the negative effects of mining, had De Beers lived up to its own expectations? Another puzzling question was the role of government. It seemed the government was letting companies like De Beers do the heavy lifting in negotiating with and educating communities about the potential
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Page 9 9B16M171 benefits and limitations of mining and resource development in their own community. This practice of letting companies lead the interaction with Aboriginal peoples began in 1670 with the Company of Adventurers. The HBC did much of the development work for governments when they interacted with Aboriginal communities in Rupert’s Land. This was also true for some treaty-making in pre-confederation Canada. For example, William Robinson, the commissioner for the Robinson Treaties, was the director of at least two mining companies. Finally, the role and responsibility of the community in its own development was a question. Did the capacity of the community to help itself affect the company’s ability to fulfill its corporate social responsibilities? What path would De Beers, the community, and the government follow as the future of the Tango Extension was debated by all stakeholders?
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EXHIBIT 1: ATTAWAPISKAT—THE TRADITIONAL TERRITORY AND THE VICTOR SITE
Source: Created by the author from a Royal Canadian Geographical Society source map.
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Page 11 9B16M171 ENDNOTES
1 This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in this case are not necessarily those of De Beers or any of its employees. 2 All figures are in CA$ unless otherwise stated; CA$1 = US$0.777 on May 16, 2016. 3 Marilyn Scales, “Tango Extension to Lengthen Life of De Beers’ Victor Diamond Mine,” Canadian Mining Journal, February 1, 2014, accessed February 24, 2016, www.canadianminingjournal.com/features/tango-extension-to-lengthen-life-of-de-beers-victor-diamond-mine; Marilyn Scales, “The Real Value of Victor Project,” Canadian Mining Journal, January 1, 2007, accessed February 24, 2016, www.canadianminingjournal.com/features/the-real-value-of-victor-project/. 4 “Indigenous and Northern Affairs Canada: Registered Population, Aboriginal Affairs and Northern Development Canada, January 23, 2015, accessed December 16, 2016, http://pse5-esd5.ainc-inac.gc.ca/FNP/Main/Search/FNRegPopulation.aspx?BAND_NUMBER=143&lang=eng. 5 Jacques Bourbeau, “Attawapiskat First Nation Must Repay $1.8 Million, Government Says,” Global News, November 28, 2014, accessed December 16, 2016, http://globalnews.ca/news/1698524/Attawapiskat-first-nation-must-repay-1-8-million-government-says. 6 CBC, “Idle No More Co-Founder Uneasy with Media Portrayal of Chief Spence,” Huffington Post Politics Canada, January 14, 2013, accessed December 16, 2016, www.huffingtonpost.ca/2013/01/14/what-is-idle-no-more-sylvia-mcadam_n_2476507.html. 7 Jody Porter, “First Nations Must ‘Learn From’ De Beers Deal: Documents Show Attawapiskat Gets 0.5% Share of Annual Diamond Revenues,” CBC News: Thunder Bay, February 13, 2013, accessed December 16, 2016, www.cbc.ca/news/canada/thunder-bay/first-nations-must-learn-from-de-beers-deal-1.1327592. 8 The Canadian Press and Globe Staff, “Attawapiskat: Four Things to Help Understand the Suicide Crisis,” The Globe and Mail, last updated July 8, 2016, accessed April 14, 2016, www.theglobeandmail.com/news/national/Attawapiskat-four-things-to-help- understand-the-suicidecrisis/article29583059. 9 Genesee Keevil, “In Attawapiskat, Deep-Rooted Problems Won’t Disappear in an Instant,” The Globe and Mail, December 9, 2011, accessed March 3, 2016, www.theglobeandmail.com/news/national/in-Attawapiskat-deep-rooted-problems-wont- disappear-in-an-instant/article4201581. 10 Marc Choyt, “Attawapiskat and De Beers Victor Mine Blockades,” Fair Jewellery Action, updated April 18, 2016, accessed April 18, 2016, www.fairjewelry.org/Attawapiskat-and-de-beers-victor-mine-blockades. 11 Jonathan Kay, “Jonathan Kay: Attawapiskat Protesters Hurting First Nations with Lawless Blockade of De Beers Mine,” National Post, February 21, 2013, accessed February 24, 2016, http://news.nationalpost.com/full-comment/jonathan-kay-natives-hurting- themselves-with-lawless-blockade-of-de-beers-mine. 12 David Ullman, "The Retreat Chronology of the Laurentide Ice Sheet During the Last 10,000 Years and Implications for Deglacial Sea-Level Rise," Vignettes: Key Concepts in Geomorphology, May 29, 2012, accessed February 24, 2016, http://serc.carleton.edu/59463. 13 The vertical upward rebound of the earth after the weight of the glacier melts away. 14 Leonard J. S. Tsuji, Natalya Gomez, Jerry X. Mitrovica, and Roblyn Kendall, “Post-Glacial Isostatic Adjustment and Global Warming in Subarctic Canada: Implications for Islands of the James Bay Region,” Arctic 62, no. 4 (2009): 458–467. 15 D. B. Stewart and W. L. Lockhart, “Human Occupation” in An Overview of the Hudson Bay Marine Ecosystem, Canadian Technical Report of Fisheries and Aquatic Sciences 2586 (Winnipeg, MB: Fisheries and Oceans Canada, 2005) 11: 5–6, accessed July 11, 2016, www.dfo-mpo.gc.ca/Library/314704.htm. 16 James H. Marsh, “Thomas James,” Historica Canada, December 14, 2013, accessed December 16, 2015, www.thecanadianencyclopedia.ca/en/article/thomas-james. 17 Shirlee Anne Smith, “Rupert’s Land,” Historica Canada, March 4, 2015, accessed December 16, 2015, www.thecanadianencyclopedia.ca/en/article/ruperts-land. 18 “Our History: Places: Forts & Posts: Fort Albany,” Hudson’s Bay Company, accessed December 16, 2015, www.hbcheritage.ca/hbcheritage/history/places/forts/fort-albany. 19 Glyndwr Williams, “Exploration,” Historica Canada, May 21, 2015, accessed December 16, 2015, www.thecanadianencyclopedia.ca/en/article/exploration. 20 “Treaties and Change: The Royal Proclamation of 1763,” Canada’s First Peoples, accessed December 16, 2015, http://firstpeoplesofcanada.com/fp_treaties/fp_treaties_brconquest_proc1763.html. 21 Ibid. 22 Ann Mackenzie, A Short History of the United Empire Loyalists (Toronto, ON: United Empire Loyalists’ Association of Canada, 1998), accessed July 11, 2016, www.uelac.org/PDF/loyalist.pdf; Bruce G. Wilson, “Loyalists,” Historica Canada, March 4, 2015, accessed July 12, 2016, www.thecanadianencyclopedia.ca/en/article/loyalists. 23 James H. Marsh, “First Nations and Métis Peoples in the War of 1812,” Historica Canada, July 23, 2015, accessed July 12, 2016, www.thecanadianencyclopedia.ca/en/article/first-nations-in-the-war-of-1812. 24 Robert Surtees, “Treaty Research Report: Manitoulin Island Treaties,” Treaties and Historical Research Centre, Indian and Northern Affairs Canada, 1986, accessed October 1, 2016, http://publications.gc.ca/collections/collection_2012/ainc-inac/R32-268- 1986-eng.pdf. 25 Robert Surtees, “Manitoulin Island Treaties,” Canada: Indigenous and Northern Affairs Canada, September 15, 2010, accessed February 24, 2016, www.aadnc-aandc.gc.ca/eng/1100100028959/1100100028961. 26 An Act to Amend and Consolidate the Laws Respecting Indians, S. C. 1876, c. 18. 27 Bob Joseph, “21 things you may not know about the Indian Act,” CBC News, April 13, 2016, accessed October 1, 2016, www.cbc.ca/news/indigenous/21-things-you-may-not-know-about-the-indian-act-1.3533613. 28 Richard J. Preston, “Cree,” Historica Canada, May 26, 2015, accessed December 16, 2015, www.thecanadianencyclopedia.ca/en/article/cree.
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Page 12 9B16M171 29 Truth and Reconciliation Commission of Canada, Canada’s Residential Schools: The History, Part 1, Origins to 1939, vol.1 (Montreal, QC: McGill-Queen’s University Press, 2015), 28. 30 Kathryn Molohon, “Notes on a Contemporary Cree Community” in Actes du Quatorzième Congrès des Algonquinistes, eds. William Cowan and José Mailhot, (Ottawa, ON: Carleton University, 1983). 31 Bryan D. Cummins, Attawapiskat Cree Land Tenure and Use, 1901–1989, philosophical doctorate degree dissertation, (Hamilton, ON: McMaster University, 1992). 32 Ibid., 61. 33 James Morrison, “Treaty Research Report: Treaty No. 9 (1905–1906),” Treaties and Historical Research Centre, Indian and Northern Affairs Canada, 1986, accessed July 11, 2016, www.aadnc-aandc.gc.ca/DAM/DAM-INTER-HQ/STAGING/texte- text/tre9_1100100028860_eng.pdf. 34 Ibid., 26. 35 Ibid., 47. 36 Jacqueline Hookimaw-Witt, Keenebonanoh Keemoshominook Kaeshe Peemishikhik Odaskiwakh (We Stand on the Graves of Our Ancestors): Native Interpretations of Treaty No. 9 with Attawapiskat Elders, master’s degree thesis (Peterborough, ON: Trent University, 1998), accessed July 11, 2016, www.collectionscanada.gc.ca/obj/s4/f2/dsk2/tape15/PQDD_0016/MQ30219.pdf. 37 An adhesion to an existing treaty confers the same rights and responsibilities as those who already adhere to the treaty. 38 “Indigenous and Northern Affairs Canada: Reserves, Settlements, and Villages,” Aboriginal Affairs and Northern Development Canada, January 23, 2015, accessed February 24, 2016, http://pse5-esd5.ainc-inac.gc.ca/FNP/Main/Search/FNReserves.aspx ?BAND_NUMBER=143&lang=eng. 39 Hookimaw-Witt, op. cit., 64. 40 John Long, Treaty No. 9: Making the Agreement to Share the Land in Far Northern Ontario in 1905 (Montreal, QC: McGill- Queen's Press, 2010), 378. 41 Bryan D. Cummins and John L. Steckley, “Only God Can Own the Land: The Attawapiskat Cree,” vol. 1 of Canadian Ethnographic Series (Toronto, ON: Pearson-Prentice Hall, 2004). 42 Norbert W. Witt, Opening the Healing Path: The Cultural Basis for a Solvent Abusers Treatment Program for the Attawapiskat First Nation, philosophical doctorate degree dissertation (Toronto, ON: Ontario Institute for Studies in Education, 1998), 15. 43 Truth and Reconciliation Commission of Canada, op. cit., 153. 44 Ibid., 4. 45 Joanna Smith, “Canada’s Residential Schools Cultural Genocide, Truth and Reconciliation Commission Says,” Toronto Star, June 2, 2015, accessed February 22, 2016, www.thestar.com/news/canada/2015/06/02/canadas-residential-schools-cultural- genocide-truth-and-reconciliation-commission-says.html. 46 Cummins and Steckley, “Only God Can Own the Land,” op. cit., 140. 47 Cummins, “Attawapiskat Cree Land Tenure and Use,” op. cit., 281. 48 Wakenagun Community Futures Development Corporation, Attawapiskat First Nation: Community Profile, 1999, accessed February 20, 2016, www.wakenagun.ca/PDF/Attawapiskat%20Profile.pdf. 49 Jorge Barrera, “Jean Chrétien, St. Anne’s and the ‘Straight Highway’ to Attawapiskat’s Suicide Crisis,” APTN News, April 20, 2016, accessed April 26, 2016, http://aptn.ca/news/2016/04/20/jean-chretien-st-annes-and-the-straight-highway-to- Attawapiskats-suicide-crisis. 50 Daniel Schwartz, “How Does Native Funding Work?,” CBC News, February 6, 2013, accessed February 24, 2015, www.cbc.ca/news/canada/how-does-native-funding-work-1.1301120. 51 Jorge Barrera, “Attawapiskat Chief Spence’s ‘Life Partner’ Challenges Department to Launch Forensic Audit, Says Band Has Nothing to Hide,” APTN News, January 8, 2013, accessed February 24, 2016, http://aptn.ca/news/2013/01/08/Attawapiskat-chief- spences-life-partner-challenges-department-to-launch-forensic-audit-says-band-has-nothing-to-hide. 52 Keevil, op. cit. 53 “Preliminary Results 2014,” De Beers U.K. Limited, February 13, 2015, accessed February 19, 2016, www.debeersgroup.com/en/news/financial-results-centre/results-centre.html. 54 J. M. Kong, D. R. Boucher, and B. H. Scott Smith, “Exploration and Geology of the Attawapiskat Kimberlites, James Bay Lowland, Northern Ontario, Canada” (paper presented at Seventh International Kimberlite Conference, Cape Town, 1998). 55 Jonathan Fowler, “Case History for De Beers Canada Inc.: Experiences with Diamond Exploration and the Victor Project, Ontario” (paper presented at the annual convention of the Prospectors and Developers Association Canada, Toronto, 2006), accessed February 24, 2016, www.pdac.ca/docs/default-source/public-affairs/de-beers-canada-inc.pdf. 56 Constitution Act, 1982, being Schedule B to the Canada Act 1982 (UK), 1982, c 11. 57 Mining Act, R.S.O. 1990, c. M.14. 58 De Beers Canada, “Victor Diamond Project: Comprehensive Study Report” (report submitted to the Canadian Environmental Assessment Agency, August 2, 2013), accessed February 25, 2016, www.ceaa.gc.ca/80C30413-docs/report_e.pdf. 59 Keevil, op. cit. 60 “Ontario Mining Tax,” Ontario Ministry of Finance, April 9, 2014, accessed April 13, 2016, www.fin.gov.on.ca/en/tax/mining. 61 Rita Celli, “Diamond Royalties a Closely Guarded Secret in Ontario,” CBC News, May 12, 2015, accessed April 13, 2016, www.cbc.ca/news/business/diamond-royalties-a-closely-guarded-secret-in-ontario-1.3062006. 62 De Beers Canada, “Attawapiskat Impact Benefit Agreement Update: As of January 2011” (report presented to Sustainable Development Strategies Group, June 2011), accessed February 24, 2016, www.sdsg.org/wp-content/uploads/2011/06/Outline- DeBeersAttawapiskatIBA.pdf. 63 “Attawapiskat Blockade May Force De Beers to Close Mine,” February 19, 2013, accessed February 24, 2016, www.cbc.ca/news/canada/sudbury/attawapiskat-blockade-may-force-de-beers-to-close-mine-1.1306365.
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Page 13 9B16M171 64 Heather Scofield, “Faced with Extreme Poverty, Harsh Climate, Attawapiskat Reserve Cries for Help,” Global News, November 30, 2011, accessed October 1, 2016, http://globalnews.ca/news/183842/faced-with-extreme-poverty-harsh- climate-attawapiskat-reserve-cries-out-for-help/ 65 Cecilia Jamasmie, “Victor Mine,” Mining.com, January 1, 2009, accessed March 16, 2016, www.mining.com/victor-mine. 66 Katie Harries, “Mercury Mystery,” Now Toronto, May 13, 2010, accessed March 16, 2016, https://nowtoronto.com/news/mercury-mystery/. 67 William James Goacher, “Peat as an Archive of Remote Mercury Deposition in the Hudson Bay Lowlands, Ontario, Canada” master’s degree thesis (London, ON: University of Western Ontario, 2014). 68 “Nothing to See Here. . . . Failures of Self-Monitoring and Reporting of Mercury at the De Beers Victor Diamond Mine in Canada,” Canadian Parks and Wilderness Society (CPAWS) Wildlands League, December 2015, accessed April 24, 2016, http://wildlandsleague.org/media/REPORT-WL-20151220-FINAL-Special-Report-Victor-Mine.pdf; “After the Last River, Film About Attawapiskat,” CBC News: Sudbury, December 2, 2015, accessed April 24, 2016, www.cbc.ca/news/canada/sudbury/after- the-last-river-attawapiskat-movie-1.3346841; Marilyn Scales, “Diamonds: CPAWS Very Wrong About Victor Mine,” Canadian Mining Journal, December 22, 2015, accessed April 24, 2016, www.canadianminingjournal.com/news/diamonds-cpaws-very- wrong-about-victor-mine. 69 Marilyn Scales, “Tango Extension to Lengthen Life of De Beers’ Victor Diamond Mine,” Canadian Mining Journal, February 1, 2014, accessed April 24, 2016, www.canadianminingjournal.com/features/tango-extension-to-lengthen-life-of-de-beers-victor- diamond-mine. 70 “De Beers Halts Exploration of Diamond Mine near Attawapiskat, Ontario,” CBC News, February 8, 2016, accessed April 24, 2016, www.cbc.ca/news/canada/sudbury/de-beers-attawapiskat-1.3438333. 71 Tanya Talaga, “De Beers Seeks First Nation Exploration Support,” Toronto Star, November 17, 2015, accessed April 24, 2016, www.thestar.com/business/2015/11/17/de-beers-seeks-first-nation-exploration-support.html. 72 Fowler, op. cit., 26.
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Table 4.1 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #1
Net income decline –
• Towards the end of the year 20XX, issues over XXXX fees started with XXXX service providers
Alternative #1
Disputes can be resolved through ABC Inc
applying XXXX methods: XXXX, XXXX and
XXXX
Pros
• It is not time
consuming
• XXXX issues do
not escalate to
lawsuits
• XXXX is usually
less expensive than
lawsuits
• XXXX resolution
without XXXX
scrutiny and risk of
ruined reputation
Cons
• XXXX resolves
financial conflicts
but not conflicts
regarding ABC
Inc policies and
rules
• If XXXX strategy
is not binding,
one or more of
XXXX can
XXXX a lawsuit
Alternative #2
Take issue to court. ABC Inc can file a lawsuit
Pros
• Opportunity to
receive financial
XXXX in the
lawsuit
• Reaching an
agreement with the
XXXX and XXXX
Cons
• Lawsuit may be
unsuccessful and
not work in the
favor of ABC Inc
• Filing lawsuits is
expensive
• Lawsuits are
subjected to
XXXX and public
scrutiny
Recommendation & Rationale
Alternative #1 is recommended. With XXXX are less risks of ruining the company’s reputation in public
ABC Inc employing XXXX in XXXX ensures issues are resolved faster, in private and at lesser costs
compared to XXXX. The company, XXXX, and XXXX can get back to regular operations sooner and
generate revenue.
Management Consulting Template
BUSI 640
May 14, 2020
Student-Consultant Name:
___________________________________
Date of Template Submission:
_________________________
Table of Contents
4 Notes REGARDING PRIORITY LEVEL
5 Table 2.1 – Analysis of Strategic Options (Option 1)
6 Table 2.2 – Analysis of Strategic Options (Option 2)
7 Table 2.3 – Analysis of Strategic Options (Option 3)
10 Table 3.1 - Critical Issues in the Context of Recommended Strategic Option – (FINANCE)
11 Table 3.2 - Critical Issues in the Context of Recommended Strategic Option – (HR)
12 Table 3.3 - Critical Issues in the Context of Recommended Strategic Option – (IT/MIS)
13 Table 3.4 - Critical Issues in the Context of Recommended Strategic Option – (POM)
14 Table 3.5 - Critical Issues in the Context of Recommended Strategic Option – (MARKETING)
16 Table 3B – Development of What Need to Be Addressed Statements (5 OR 6)
(Finance; HR; IT/MIS; POM; Marketing; Other)
19 Table 4.1 – WNTBA 1: Evaluation of Alternative Solutions & Recommendation
20 Table 4.2 – WNTBA 2: Evaluation of Alternative Solutions & Recommendation
21 Table 4.3 – WNTBA 3: Evaluation of Alternative Solutions & Recommendation
22 Table 4.4 – WNTBA 4: Evaluation of Alternative Solutions & Recommendation
23 Table 4.5 – WNTBA 5: Evaluation of Alternative Solutions & Recommendation
25 Table 5 – Recommendation Detail # 1
26 Table 5 – Recommendation Detail # 2
27 Table 5 – Recommendation Detail # 3
26 Table 5 – Recommendation Detail # 4
27 Table 5 – Recommendation Detail # 5
Appendices / Tables
REFERENCES
Notes regarding priority level
· Table 5 – Priority: HI= High (Extremely important, very critical); ME= Medium (important but not critical); LO=Low (needs to be done but not important and/or critical)
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Table 2.1 – Analysis of Strategic Options
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Option 1
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Briefly Identify & Describe the Option
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Benefits/ Advantages
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Critical Success Factors
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Threats/ Risks
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Why is this your recommended Strategic Option?
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Table 2.2 – Analysis of Strategic Options
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Option 2
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Briefly Identify & Describe the Option
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Benefits/ Advantages
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Critical Success Factors
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Threats/ Risks
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Why is this your recommended Strategic Option? |
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Table 2.3 – Analysis of Strategic Options
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Option 3
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Briefly Identify & Describe the Option
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Benefits/ Advantages
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Critical Success Factors
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Threats/ Risks
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Why is this your recommended Strategic Option? |
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NOT REQUIRED Table 2A - Strategic Analysis – Stakeholder Positions on Strategic Options
Stakeholders and their positions:
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Strategic Option 1:
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Strategic Option 2:
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Strategic Option 3:
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Stakeholder 1:
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Stakeholder 2:
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Stakeholder 3:
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Stakeholder 4:
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NOT REQUIRED Table 2B - Strategic Analysis – Impact of Critical Issues on Strategic Options
Strategic Options & Their Critical Issues |
Strategic Option #1 |
Strategic Option #2 |
Strategic Option #3 |
Finance
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Marketing
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Operations
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IT
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Human Resources
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Table 3.1 - Critical Issues in the Context of Recommended Strategic Option – FINANCE
CRITICAL ISSUES
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How is it manifested? |
Why is it happening? Cause(s)?
|
1) Why Important? 2) Implications if not dealt with? |
Finance F1
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F2
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F3
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F4
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F5
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|
|
Table 3.2 - Critical Issues in the Context of Recommended Strategic Option – HR
CRITICAL ISSUES
|
How is it manifested?
|
Why is it happening? Cause(s)? |
Why Important? Implications if not dealt with? |
Human Resources HR1
|
|
|
|
HR2
|
|
|
|
HR3
|
|
|
|
HR4
|
|
|
|
HR5
|
|
|
|
Table 3.3 - Critical Issues in the Context of Recommended Strategic Option – IT/MIS
CRITICAL ISSUES
|
How is it manifested?
|
Why is it happening? Cause(s)? |
Why Important? Implications if not dealt with? |
Info Tech IT1
|
|
|
|
IT2
|
|
|
|
IT3
|
|
|
|
IT4
|
|
|
|
IT5
|
|
|
|
Table 3.4 - Critical Issues in the Context of Recommended Strategic Option - POM
CRITICAL ISSUES
|
How is it manifested?
|
Why is it happening? Cause(s)? |
Why Important? Implications if not dealt with? |
Operations OP1
|
|
|
|
OP2
|
|
|
|
OP3
|
|
|
|
OP4
|
|
|
|
OP5
|
|
|
|
Table 3.5 - Critical Issues in the Context of Recommended Strategic Option - MARKETING
CRITICAL ISSUES
|
How is it manifested?
|
Why is it happening? Cause(s)? |
Why Important? Implications if not dealt with? |
Marketing M1
|
|
|
|
M2
|
|
|
|
M3
|
|
|
|
M4
|
|
|
|
M5
|
|
|
|
NOT REQUIRED Table 3A – Vertical Causal Analysis
Description of Underlying Cause (Common causes for multiple problems) |
Critical Issue(s) Addressed (as identified in Table 3) |
Total Frequency |
Priority and Importance |
||
|
|
|
Low |
Med |
High |
1.
|
|
|
|
|
|
2.
|
|
|
|
|
|
3.
|
|
|
|
|
|
4.
|
|
|
|
|
|
5.
|
|
|
|
|
|
6.
|
|
|
|
|
|
7.
|
|
|
|
|
|
8.
|
|
|
|
|
|
9.
|
|
|
|
|
|
10.
|
|
|
|
|
|
Additional Issues or Insights which are critical to the success of the organization
OR will critically impact on the success of your recommended strategy
Table 3B – Development of What Need to Be Addressed Statements
1. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
2. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
3. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
4. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
5. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
6. What Needs to Be Addressed
|
|
Implications if not Addressed |
Opportunities if Addressed |
|
|
Comment – Observations and Conclusions Regarding Diagnosis
Table 4.1 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #1
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2 (Note: Is there another major alternative?) |
Pros
|
Cons
|
Recommendation & Rationale
|
Table 4.2 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #2
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2
|
Pros
|
Cons
|
Recommendation & Rationale
|
Table 4.3 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #3
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2
|
Pros
|
Cons
|
Recommendation & Rationale
|
Table 4.4 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #4
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2 (Note: Is there another major alternative?) |
Pros
|
Cons
|
Recommendation & Rationale
|
Table 4.5 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #5
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2
|
Pros
|
Cons
|
Recommendation & Rationale
|
Table 4.6 – Evaluation of Alternative Solutions & Recommendation
WNTBA Statement #6
|
||
Alternative #1
|
Pros
|
Cons
|
Alternative #2
|
Pros
|
Cons
|
Recommendation & Rationale
|
Table 5 – Recommendation Detail
Recommendations & ST = 0 to 3 months, MT = 3 to 9 months Supporting Detail LT = 9 to 15 months, Immediate – 0 to 15 days |
Timing |
Priority (See Note to the Marker) |
Rec #1
|
|
|
Rec #1 - Critical Success Factors & Risks to be Managed
|
||
Rec #2
|
|
|
Rec #2 - Critical Success Factors & Risks to be Managed
|
Table 5 – Recommendation Detail
Recommendations & ST = 0 to 3 months, MT = 3 to 9 months Supporting Detail LT = 9 to 15 months, Immediate – 0 to 10 days |
Timing |
Priority |
Rec #3
|
|
|
Rec #3 - Critical Success Factors & Risks to be Managed
|
||
Rec #4
|
|
|
Rec #4 - Critical Success Factors & Risks to be Managed
|
Table 5 – Recommendation Detail
Recommendations & ST = 0 to 3 months, MT = 3 to 9 months Supporting Detail LT = 9 to 15 months, Immediate – 0 to 10 days |
Timing |
Priority |
Rec #5
|
|
|
Rec #5 - Critical Success Factors & Risks to be Managed
|
||
Rec #6
|
|
|
Rec #6 - Critical Success Factors & Risks to be Managed
|
OPTIONAL Table 1 - A SWOT+ Data Gathering Table (STRATEGY)
|
Strategy
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
OPTIONAL Table 1.1 - A SWOT+ Data Gathering Table (FINANCIAL MANAGEMENT)
|
Finance
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
OPTIONAL Table 1.2 - A SWOT+ Data Gathering Table (HR MANAGEMENT)
|
Human Resources
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
OPTIONAL Table 1.3 - A SWOT+ Data Gathering Table (IT/MGT INFO SYSTEMS)
|
Information Technology
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
OPTIONAL Table 1.4 - A SWOT+ Data Gathering Table (PRODUCTION OPERATIONS MANAGEMENT)
|
Operations
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
OPTIONAL Table 1.5 - A SWOT+ Data Gathering Table (MARKETING MANAGEMENT)
|
Marketing
|
Strengths/ Positives INT
|
|
Opportunities EXT
|
|
Threats EXT
|
|
Problems/ Challenges/ Weaknesses INT
|
|
Table 1.6 The Five Forces of Competition in the Industry |
|
Rivalry among Competing Sellers |
· |
Potential Entry of New Competitors |
· |
Competitive Pressures from Substitute Products |
· |
Competitive Pressures from Supplier Bargaining Power and Supplier-Seller Collaboration |
· |
Competitive Pressures from Seller-Buyer Collaboration and Bargaining |
· |
NOT REQUIRED Table 1.7 Industry Key Success Factors |
|
Technological related |
· |
Operations related |
· |
Distribution related |
· |
Marketing related |
· |
Skills related |
· |
Organizational capacity |
· |
Other |
· |
NOT REQUIRED Table 1.8 Industry Prospects and Overall Attractiveness |
|
Factors making the industry attractive |
· |
Factors making the industry unattractive |
· |
Special industry issues/problems |
· |
Profit outlook |
· |
Table 1.9 The Business Environment |
||
|
Opportunities |
Threats |
Political |
|
|
Economic |
|
|
Societal/Cultural |
|
|
Technological |
|
|
Attawapiskat First Nation versus De Beers Diamond Mine CANADA, INDIGENOUS • October 2, 2020 • Attawapiskat First Nation
Massive Garbage Dump in Fragile Wetlands Habitat? In May 2019, production at De Beer’s Victor diamond mine on the traditional territories of Attawapiskat First Nation came to an end. In all, more than 8 million carats of diamonds were taken from the giant open pit mine that generating billions in revenues for the mine’s owners. But for many observers, the mine failed to deliver on its promise of prosperity for the near-by community. Indeed, while the company’s “tax and economic contribution reports” are keen to highlight the mine’s local procurement programs and the like, Attawapiskat continues to suffer from widespread poverty, unemployment and crumbling infrastructure. Just two months after the mine closed, the community declared an emergency over water quality. In 2013, documents showed that Attawapiskat’s diamond royalties, earned as part of an Impact-Benefits Agreement with the company, amounted to less than 1 per cent of the mine’s annual revenues. In 2018, the value of diamonds produced in Ontario reached $516-million, while royalty payments to Attawapiskat were just US$1.6-million. The wider public did not retain a significant share of the diamond wealth either. Giving in to De Beers’ lobbying campaign, Ontario Premier Dalton McGuinty walked back his proposal for a diamond royalty on par with the regime in Northwest Territories, ultimately allowing the company to pay as little as $226 in royalties in 2014. While the company now boasts of having paid $110 million in total royalties to the province, it neglects to mention that this amounts to just 2.5% of the total revenues it earned from the Victor mine. Promises of spin-off developments also appear to have not gone very far. The government of Ontario imposed a domestic processing condition on the mine, mandating 10 per cent of its output be polished in the province. But the secret diamond polishing facility opened in Sudbury to meet the province’s conditions employed just 45 workers, most of whom were temporary migrant workers from Vietnam. The Victor mine was fraught with conflict. Now, even after the mine has closed, conflict continues: The company is seeking permission from the Ontario government to construct a third landfill site where it wants to dump the “waste” it no longer needs to
turn a profit. Attawapiskat First Nation has every reason to firmly reject the proposal. — Bullet editors
De Beers Canada (DBC) is seeking Ontario Government approval for a third landfill waste site to be built and filled up at the Victor Mine Site, located in a vulnerable James Bay wetlands area, and in a place of critical importance to Attawapiskat. The Victor Mine is now in the closure phase, where decommissioning and remediation are supposed to leave the landscape in a clean and safe state. The mine operated from 2005 to 2019 and with an annual production rate is 2.7 million tonnes a year, or about 600,000 carats a year in diamond grade.
Much of the diamond mine waste that DBC would deposit into such landfill, is reusable and salvageable. Over half of the proposed landfill waste will be powerline infrastructure
which has significant value, together with steel, pipe and wood products that can be re- used or recycled. “De Beers could and should be transporting that waste through the winter road it has maintained for the last many years, to markets and facilities south of us, where it can be treated and reused,” says Attawapiskat Chief David Nakogee. “We’re talking about 100,000 cubic metres of material that could be reused or recycled. De Beers unilaterally cancelled the contract for the winter road project because they said they don’t need it. Of course they don’t need it when they have the alternative of turning our lands into their garbage dump instead of building a winter road.”
The manner in which DBC is seeking Ontario approval for the extra landfill is suspect. Without conducting a full audit or examining alternatives to landfilling, DBC has applied for 97,000 cubic metres of landfill volume, which is just shy of the 100,000 cubic metres threshold which would trigger a Comprehensive Environmental Assessment. DBC very recently got approval for a demolition landfill of exactly the same size, and now they are asking Ontario to approve a second demolition landfill bringing the total diamond mine project demolition waste volume to almost 200,000 cubic metres.
“A 200,000 cubic metre demolition landfill could fit about four CN Towers. A 100,000 cubic metre landfill could serve a medium-sized Ontario municipality for 20 years or more. A landfill that big requires a Comprehensive Environmental Assessment,” says environmental consultant to Attawapiskat, Don Richardson. “But if Ontario agrees that De Beers can split the demolition landfilling into two pieces of about 100,000 cubic metres each, De Beers can side-step the time and costs involved in planning a big landfill project through a Comprehensive Environmental Assessment. If Ontario lets De Beers do this, I expect a lot of Ontario municipalities will be looking to see if they can follow the same landfill splitting approach, and things will get pretty interesting for people who live around future landfill projects in southern Ontario.”
This comes on the heels of DBC also seeking approval from Ontario to stop key monitoring of water quality at the mine, through exemptions in its permit to take water. And this new diamond mine garbage problem comes while DBC has stored much of its organic waste on the mine site in over 50 large shipping containers while it tries to get an incinerator functioning to burn this mine garbage.
Attawapiskat is firmly rejecting all of this, and letting the Ontario Government know. Whether Ontario will pay any attention remains to be seen.
It was just announced that a rare 102 carat diamond the size of a small egg was discovered at the Victor Mine and is set to be auctioned off by Sothebys possibly for about $30-million.
“De Beers has profited a lot from the Victor Diamond Mine and will profit even more,” says Chief Nakogee. “These expensive diamonds come from my Nation’s homeland, in our backyard, and yet we continue to live in horrendous conditions where we can’t even
drink the water here from the taps. We keep watching the wealth of our Traditional Territory, from the waters and lands to the wildlife, get industrialized. We keep watching others walk off with the profits of that industrialization, leaving us to bear the burden and the waste. When De Beers has the money to transport, recycle and re-use materials, and to properly monitor the effects of the mine on the lakes and rivers, they must be required to do so. We will not tolerate excuses when so much is at stake.”
Table 3.3 - Critical Issues in the Context of Recommended Strategic Option – IT/MIS
CRITICAL
ISSUES
How is it manifested?
Why is it happening?
Cause(s)?
Why Important?
Implications if not dealt
with?
Info Tech
IT1
XXXX
technological
change
• In 20XX, both
XXXX and XXXX
operators faced a
new XXXX
• The XXX
industry changed
after the XXXX
was abolished in
20XX
• XXXX was
permitted to
create XXXX to
distribute XXXX
• New competition
arrived in the
XXXX market
through XXXX
services
• Customers
preferred XXXX
to XXXX
• Important because
ABC Inc will lose
market share if they
do not XXXX and
improve XXXX to
compete with new
competition in the
XXXX
• ABC Inc cannot
resolve this issue
because it is a XXXX
threat, but the
company can adopt a
XXXX to compete
Table 3.4 - Critical Issues in the Context of Recommended Strategic Option – POM
CRITICAL
ISSUES
How is it manifested?
Why is it happening?
Cause(s)?
Why Important?
Implications if not dealt
with?
Operations
OP1
Method of
operation
• Because ABC Inc
was XXXX, it
gave up profits at
the XXXX
(which lowered
the XXXX) so
that it could
report XXXX at
the XXXX level
• Given its
presence in both
the distribution
and XXXX ABC
Inc had to address
its XXXX
methods and its
protocol for
XXXX fees for
XXXX
• ABC Inc is a
subsidiary of
XXXX
• ABC Inc wants to
report XXXX to
XXXX
• To report high
profits to AMCN,
the XXXX pays
less XXXX to
XXXX
• ABC Inc assigned
XXXX protocols
for XXXX
produced at
XXXX
• The method of
XXXX reports will
consequently lead to
future XXXX with
XXXX
• In the new XXXX
industry landscape,
XXXX creation is a
key success factor
• If ABC Inc does not
resolve XXXX, the
company will lose
XXXX to
competitors
OP2
ABC Inc internal
XXXX protocols
• The XXXX also
had to look at its
tendency to have
a XXXX system
that emphasized
XXXX
maximization at
the XXXX level
• ABC Inc Studios
is XXXX
subsidiary
• ABC Inc utilized
XXX pricing to
XXXX the costs
of XXXX and
XXXX between
the XXXX
system and
XXXX levels
• XXXX fees ABC
Inc pay to XXXX
are less compared
to competitors
• ABC Inc profit-
sharing XXXX
with XXXX are
less favorable
compared with
other XXXX
• AMCN has to
report XXXX as
proof XXXX is
successful
• ABC Inc internal
XXXX protocols
ensure that the
XXXX level reports
XXXX profits as a
result of paying less
XXXX to XXXX
• If not resolved ABC
Inc XXXX and
XXXX would go to
competitors for better
agreements
• Also, it would
discourage other
XXXX and XXXX
from working with
ABC Inc
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ Benefits of Skilled Conflict Resolution and Negotiation
Managers need to understand and appreciate that negotiation is not a zero-sum game. Managers who demonstrate effective conflict-resolution skills are often seen as competent, effective leaders (Gross & Guerrero, 2000; Stamato, 2004). A study by Eckerd College’s Management Development Institute (2003) found a significant link between a person’s ability to resolve conflict effectively and their perceived effectiveness as a leader and suitability for promotion. The sample for the study consisted of 172 employees (90 male and 82 female) from five different types of organizations. Approximately one-half of the participants were middle-level managers or higher in their organization; all of them participated in a program focusing on workplace conflict. The study revealed a strong correlation between certain conflict-resolution behaviors and perceived effectiveness as a leader and promotion potential. Employees who were perceived as being good at creating solutions, expressing emotions, and reaching out were considered more effective. By contrast, destructive behaviors, such as winning at all costs, displaying anger, demeaning others, and retaliating, were found to be the worst behaviors in terms of career advancement and leadership. Avoidance behaviors were found to be particularly problematic for would-be negotiators because individuals who are uncomfortable with negotiating or who perceive themselves to be unskilled or ineffective in negotiating often avoid conflict and thus fail to manage differences
1114237 - Jones & Bartlett Learning ©
effectively. Of particular significance is the study’s finding that negotiation skills are an important aspect of leadership.
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▶ Conclusion In this chapter, we discussed the positive and negative outcomes of conflict and pointed out that conflicts originate from a variety of sources. We can predict with 100% certainty that managers will deal with conflict and negotiation in the course of their work. Conflict-handling behavior can be learned, and managers should adapt their behavior to the situation to be resolved. Collaborative behavior is strongly desired as a way to manage conflict and reflects positively on the individuals who use this approach.
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Discussion Questions
1. Explain the definition of conflict. 2. Describe the four basic types of conflict. 3. Discuss the five levels of conflict. 4. Describe the five conflict-handling modes. 5. Describe the three major negotiation models.
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1114237 - Jones & Bartlett Learning ©
CASE STUDIES
Case Study 15-5 Health Care System Versus Insurance
UAB to No Longer Accept UnitedHealth Care After Negotiations Fail
At the end of the month, UnitedHealth care insurance will not be accepted at most UAB Health System entities after the two companies failed to reach a contract agreement.
The end of UAB entities accepting United is July 31, and approximately 25,000 policyholders will be affected.
“UnitedHealth care forced us in this position,” said UAB Health System CEO Will Ferniany. “We haven’t had these kinds of problems with any other provider but United.”
Entities like UAB Hospital, The Kirklin Clinic, all other UAB Medicine primary care, specialty care and urgent care clinics, UA Health Services Foundation, UAB Callahan Eye Hospital, Medical West and Baptist Health in Montgomery are some of the UAB providers who won’t be accepting the insurance plans after July 31. The change also includes all services provided by UAB doctors, regardless of where the service is provided.
The emergency departments at UAB hospitals will remain open to United customers, officials said,
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and some United policyholders who have an open benefit plan may also be exempt from additional charges when the change goes into effect.
Last month, the UAB Health System sent out 40,000 letters to patients who went to a UAB entity in the past two years with United insurance to notify them they may soon have to pay out-of- pocket costs if no agreement is reached.
UAB currently accepts Medicare, Medicaid, Blue Cross Blue Shield of Alabama and VIVA Health (an affiliate of the UAB Health System). The change won’t affect supplemental plans, arrangements with Medicare or PEEHIP policies.
“We recognize and appreciate that some of the services UAB Health System provides are unique and more costly. We reimburse them accordingly for these types of services,” a spokesperson from United said. “However, UAB Hospital charges significantly more than other hospitals even for common services and tests.”
The university said it is opposed to the tier two designation which would make some of United’s policyholders pay more to come to UAB, while United would pay less. In some cases, the extra out-of-pocket costs would be applied even if the patient had no choice but to come to UAB Hospital because of the severity of their illness or the services needed.
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“UAB is demanding that they be designated a Tier 1 provider despite the fact that they don’t meet the criteria because of their egregiously high costs,” a spokesperson from United said. “If we agreed to this demand, it would undercut employers’ ability to design competitive benefit plans that reward their employees for choosing quality, cost- effective care providers.” United said it would continue to pay the contracted rate no matter what UAB’s tier designation is.
In their negotiations, Ferniany said United believed UAB’s costs should mirror smaller, less comprehensive hospitals. These demands ignore the complexity of the services UAB offers, he said.
UAB is the only Trauma I center in Alabama recognized by the American College of Surgeons, which causes the system to treat some of the state’s most critical patients. The hospital also serves as a public safety net to other hospitals in the state that cannot provide the same level of care as UAB, Ferniany said. Its charity costs are more than $70 million a year.
“We are also opposed to a program that only looks at price and not quality of care,” Ferniany said. He added the tier system isn’t fair to UAB, because many patients must go to a UAB entity for various reasons related to their condition or illness. He asked if UAB is the only place someone can go, why should they have to pay more?
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He also said United shouldn’t punish UAB for being a teaching hospital, but recognize that Alabama would have far fewer doctors without the residents who train there. Other insurance companies realize that, Ferniany said.
United is one of the most profitable insurance companies, according to data, and generates more cash profit than all other national publicly traded health plans in the country combined. The company had $9 billion in earnings in 2018— profits that come at the expense of its policyholders and health care providers, Ferniany said.
This is not the first time UAB could not reach an agreement with United. The two could not reach a deal in 2005, and United was not accepted at the university from 2006 to 2011.
Raheel Farough, vice president of UAB Health System Managed Care, and Ferniany called the lack of partnership a sad and unfortunate situation, but maintain that UAB will not accept something that puts profits ahead of patient care.
“The things they’re asking for… are just not things we can accept,” Ferniany said. “This is very, very worrisome to these people. This is not a good thing.”
Farough added that United’s policies can harm patients, as the company will only pay for what
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they deem is medically necessary, regardless of what’s best for the individual.
United has not been able to renew contracts with hospitals across Alabama and the country, according to information from UAB. South Alabama Medical Center and University of Colorado Hospital/CU Medicine were two of those hospitals, citing reasons including “frequent difficulty in obtaining authorization for services needed by patients” that were often not paid for. The hospitals also mentioned United’s refusing to pay health care providers after initially approving care.
The two are still committed to discussions of an agreement. “I’m planning to be reasonable,” Ferniany said. “They’ve not provided us anything close to reasonable.”
United responded Friday: “Despite repeated efforts to reach a compromise, UAB has decided to put Alabama residents square in the middle of this dispute. This is unfortunate and completely avoidable. We hope UAB will reconsider so we can continue working toward a new agreement that will ensure our members have continued access to UAB at a more affordable cost.”
1. What level of conflict is represented in this case?
2. What type of negotiation style did UAB use in this case?
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3. What type of negotiation style did UnitedHealthcare use in this case?
4. Who are the winners and losers in this conflict?
Reproduced from Auglair, H. (2019). UAB to no longer accept
UnitedHealth care after negotiations fail. Al.com. Available
from https://www.al.com/news/birmingham/2019/07/uab-to-
no-longer-accept-united-healthcare-after-negotiations-fail.html
Case Study 15-6 Musical Operating Rooms Dr. John Wilkins sat staring at the phone message in front of him. Dr. Peter Mikelson, chief of orthopedics, had called again wanting to discuss the current system used to schedule operating room times. As chief of medicine, technically, Dr. Wilkins had the power to dictate who would use the operating resources and when. Up to now he had been reluctant to use that power, relying instead on scheduling administrators to handle the schedule for operating room use. Perhaps the time had come to review that system and implement changes if necessary.
Mercy Hospital, a not-for-profit hospital located in the Northeast, employed 1000 doctors in 30 different departments. The facility had an outstanding reputation as a teaching hospital. About 40% of its doctors were full-time faculty, while the remaining 60% were volunteer staff (those doctors who, while not employees of the hospital, worked with residents and had access to hospital resources). The hospital currently had 25
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operating rooms located throughout the hospital. Operating rooms were not assigned to any particular department, but doctors tried to use the rooms closest in proximity to their department wing. In some more extreme cases, it was simply understood that the operating rooms in certain wings were to be used only by certain departments.
Dr. Wilkins decided to have some informal discussions with different department chairs to gauge how dire the situation really was. His first stop was with Dr. Steve Daly, chief of urology. “You know, John,” Dr. Daly explained, “I understand urology is not a high-profile glamour specialty, but I am having a very difficult time attracting both volunteer staff and the best residents because of the trouble I have scheduling procedures. We have 20 doctors in three different departments sharing four operating rooms. I know to you this may sound like an inability on my part to plan, but let me put this in terms that may mean something to you. The operating room is where we make our money. If my doctors and I can’t easily schedule time in the OR, we can’t continue to build the department. I have already seen a decline in the number of referrals from primary care physicians. If this keeps up, this hospital will have a hard time maintaining this specialty at a competitive level.”
Next on Dr. Wilkins’s list was Dr. Jack Palmer, chief of neurosurgery. Jack Palmer was a bit of a legend in the region. This was due to a
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combination of the high-profile nature of his specialty, his long tenure at the hospital, and his impressive client list, which included many of the people who sat on Mercy Hospital’s board of directors as well as their families and friends. As John walked through the department, he noticed that all three of the ORs in the Neurosurgery wing were not in use. When he mentioned this to the department secretary, she replied that this was always the case on Friday mornings. For as long as she could remember, Neurosurgery held a weekly teaching conference from 7:00 to 12:00 every Friday. The secretary then informed John that Jack could not free up any time to speak with him, but she did relay the message that all was fine in Neurosurgery as far as OR time.
Dr. Wilkins next spent some time with Dr. Sheehan, chief of ophthalmology. After reviewing the OR schedule for the next month, Dr. Wilkins was astounded at the number of procedures Dr. Sheehan and members of her department were scheduled to perform. Dr. Sheehan explained, “Well, John, I’ve actually put a little cushion in there to make sure I have the time I need. At the beginning of the month I sign up those surgeries I am sure we will perform as well as some ‘phantom’ patients. That way, if surgery runs over because I’m teaching the procedure to a resident, or if a patient shows up in a condition under which I cannot operate, I can easily reschedule them. Patients get quickly rescheduled, doctors’ office
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hours aren’t disrupted, and everyone is happy. The name of the game is customer service. Peter [Dr. Mikelson] is new and will learn the system like everyone else did. I’m feeling particularly charitable today. Send Peter my way and we’ll see if we can’t negotiate for some of my scheduled time.”
Dr. Wilkins spoke with Dr. Mikelson last. Dr. Mikelson said, “John, I know I’m the new kid on the block, but this system is simply unacceptable. Six months ago when I took this position, you and the board made it very clear to me the importance of building the practice. I’ve done as much as I can, but my capacity analysis shows that if my growth continues, I’ll need four operating rooms instead of the one I am currently allocated. The bottom line is the bottom line, and you and I both know the money Orthopedics brings into the hospital. If I have to beg and plead with Susan Sheehan every time an unexpected change in my schedule pops up or rely on the grapevine to figure out when the OR is available, I can’t keep my patients happy. The game has changed, John. Unhappy patients simply go elsewhere for surgery.”
Dr. Wilkins knew Dr. Mikelson was right. How would he fix the situation in a way that made everyone happy, including patients, doctors, administrators, and the board of directors? What was the proper criteria to use: longevity, political clout, fiscal impact? How was he going to allow
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for emergency surgeries? How much control did he really want to take away from the physicians in scheduling their procedures?
Discussion Questions
1. What is this conflict about? 2. Why is there a conflict over these issues? 3. How are each of the doctors doing now at
managing the conflict? What should they have done? Would you do what they did? Why or why not?
4. Imagine that you are Dr. Wilkins, who has been asked to resolve this dispute. What source of leverage do you have? What options are possible? What impact would each option have? What are your overall goals?
Reproduced from Friedman, R. (2002). Musical operating
rooms: Mini-cases of health care disputes. International Journal
of Conflict Management, 13(4), 421–422. © Emerald Group
Publishing Limited all rights reserved.
Case Study 15-7 What Went Wrong? Tim Hardwood, CEO of Community Health System, hung up the phone with a heavy sigh. He had just received the news from Mary Martin, vice president of human resources, that negotiations had stalled between the health system and the service employees’ union. Mary had told him, “As of now, the 2,000 service employees at our three hospitals are without a contract and threatening to strike. But don’t worry, Tim. I told the union
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negotiators that the health system is prepared to handle a strike.”
“A strike!” Tim thought. “The media will have a field day with this! What went wrong?”
Jim Brentward, one of the union negotiators, sat across the table from Mary Martin. Jim told Mary that his members understood that Community Health System was having financial difficulties because of the current state of the industry with decreasing reimbursements and increasing regulations, but the union members were not pleased with the organization’s proposed offer for salary increases and benefits package over the next 4 years. Jim said, “Unless the health system signs a contract by 5:00 �.�. Friday with acceptable salary and benefit increases, members of the union are threatening to strike.” He continued, “The union plans to hold an informational picket on Thursday, and although the union doesn’t want to strike, it’s a strong possibility. After the informational picket, we will hold a strike vote and see what our members have to say about the situation.”
Mary was shocked by Jim’s comments. She simply could not believe that Community Health’s service employees would threaten to strike! Because of her position as vice president of human resources, Mary knew that the service employees represented by Jim’s union were at the bottom end of the health care system’s pay scale.
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These employees included patient transporters, housekeeping, and cafeteria workers. Mary also knew that the union benefits paid to members during a strike equaled only 50% of the employee’s weekly salary. Mary felt confident that because they had too much to lose financially, the employees would never vote to strike. In addition, she knew that Community Health System was considering outsourcing its dietary departments to Thomson Health care Food Services. If the employees did strike, although Mary considered that very unlikely, dietary services would continue without interruption. Knowing this inside information, Mary decided that she wasn’t going to let Jim and the other union negotiators bully her. Mary told Jim that the health care system would not give in to the union’s demands and was prepared for a strike.
Explain to Tim Hardwood what went wrong. If you were hired as the mediator, how would you go about resolving the situation to achieve a win/win agreement?
Case Study 15-8 Healthy Conflict Resolution “Cindy, please reschedule my afternoon clinic; I am going to be out for the rest of the day,” says Dr. Jones, a senior physician in a hospital-owned multispecialty group.
“But, Dr. Jones,” Cindy says, while whipping off her telephone headset and turning away from the open patient registration window, “you are double
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booked for most of the afternoon because you canceled your clinic twice this month already. Many of these patients have been waiting more than three months to see you!”
Jones glances furtively at the waiting room, and already half turned and heading toward the clinic exit, says, “I’m sure you will be able to smooth things over. Just tell them that I got called to an emergency.”
Cindy has a suspicion that, because the weather is nice, Jones is taking off with a couple of colleagues to go sailing or play a round of golf. After all, he always sports a darn tan, comes to clinic late, and often leaves early. Cindy does not relish having to call and reschedule these patients, some of whom have already been rescheduled at least once in the past couple of months.
Cindy decides enough is enough. She calls her manager and requests a meeting as soon as possible. Her manager can sense that Cindy is upset and offers to have someone cover for Cindy so that they can talk privately.
Cindy tells the manager about the situation with Jones that happens “all the time,” and how she is “sick of it,” and will not “work another day under these conditions.” After calming Cindy down, the manager promises to bring the matter up with the chief of the department.
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To make a long story shorter, suffice it to say that this conflict continues to mushroom to involve several more individuals (the chief medical officer, the executive director of the clinic, the director of human resources, and the union representative) before Jones is ever made aware that Cindy has filed a formal complaint about him. When he is finally confronted, in a meeting with the chief medical officer and the director of human resources, he is caught completely off guard.
After all, the incident happened several weeks ago, and Cindy did not mention anything to him about it. They have continued to work together, in his opinion, as if nothing were wrong. He is also surprised to find out that Cindy has been keeping a tally of the number of times that he has canceled his clinic, left early, or started clinic late.
Jones goes from astonishment to red-faced anger in a few minutes. It is clear to all that the relationship between Cindy and the doctor is irreparable. Jones is labeled as a disruptive physician. Cindy is not welcome in any department because the other physicians are fearful of being targeted. Cindy eventually resigns, and Jones feels betrayed and unappreciated by his staff and his employer.
If you were the manager in this case, how would you have handled the situation?
Reproduced from Pierce, K. P. (2009, January/February). Healthy
conflict resolution. Physician Executive, 35(1), 60–61.
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Case Study 15-9 Conflict-Handling Styles For each of the five scenarios that follow determine the most appropriate conflict-handling style(s).
Scenario One
A radiologist on the staff of a large community hospital was stopped after a staff meeting by a colleague in internal medicine. On Monday of the previous week, the internist referred an elderly man with chronic, productive cough for chest X- ray, with a clinical diagnosis of bronchitis. On Thursday morning, the internist received the radiologist’s written X-ray report with a diagnosis of “probable bronchogenic carcinoma.” The internist expressed his dismay that the radiologist had not called him much earlier with a verbal report. Visibly upset, the internist raised his voice, but did not use abusive language.
How should the radiologist handle this conflict with the internist?
Scenario Two
The Family and Community Medicine Division of a large-staff model HMO serves a population that is ethnically diverse. The senior management team of the HMO, spurred by repeated complaints from representatives of one racial group, has encouraged the division, all of whose physicians are White, to diversify. Several Black and Hispanic
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physicians with strong credentials apply for the open positions, but none are hired. Weeks later, a young female family physician learns from several colleagues that the division director has identified her as racist and the obstructionist to recruiting. The comments attributed to her are not only false but are also typical of discriminatory statements that she has heard the division chief utter. The rumors about her “behavior” have circulated widely in the division.
How should the young female family physician handle this conflict with the division chief?
Scenario Three
A manager who reports to the vice president for clinical affairs (VPCA) of a tertiary-care hospital hired a young woman to supervise development of a large community outreach program. During the first four months of her employment, several behavioral problems came to the VPCA’s attention: (1) complaints from community physicians that the coordinator criticizes other physicians in public; (2) concerns from two community leaders that the coordinator is not truthful; and (3) complaints about written reports about the project that label and blame others, sometimes in language that is disrespectful. The VPCA spoke several times to the manager about these problems. The manager reported other dissatisfactions with the coordinator’s performance, but he showed no sign of dealing
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with the behavior. Two more complaints come in, one from an influential community leader.
How should the VPCA handle this conflict with the manager?
Scenario Four
The medical school in an academic health center recently implemented a problem-based curriculum, dramatically reducing the number of lectures given and substituting small-group learning that focuses on actual patient cases. Both clinical and basic science faculty are feeling stretched in their new roles. In the past, dental students took the basic course in microanatomy with medical students. The core lectures are still given, but at different times that do not match with the dental-curriculum schedule. The anatomists insist that they don’t have time to teach another course specifically for dental students. The dean has informed the chair of the Department of Anatomy and Cell Biology that some educational revenues will be redirected to the dental school if the faculty do not meet this need.
How should the dean handle this conflict with the chair of the Department of Anatomy and Cell Biology?
Scenario Five
The partners in a medical group practice are informed by the clinic manager that one physician
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member of the group has been repeatedly upcoding procedures for a specific diagnosis. This issue first came to light 6 months ago. At that time the partners met with him, clarified the Medicare guidelines, and outlined the threat to the practice for noncompliance. He argued with their view, but ultimately agreed to code appropriately. There were no infractions for several months, but now he has submitted several erroneous codes. One member of the office staff has asked whether Medicare would consider this behavior “fraudulent.”
How should the partners handle the situation with the other physician partner?
Aschenbrener-Siders, C. A. (1999). Managing low-to-mid intensity
conflict in the health care setting. Physician Executive, 25(5), 44–50.
Reprinted with permission.
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1114237 - Jones & Bartlett Learning ©
References Auglair, H. (2019). UAB to no longer accept UnitedHealthcare
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Baron, R. A., & Richardson, D. R. (1990). Human aggression (2nd ed.). New York, NY: Plenum Books.
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Blake, R. R., & Mouton, J. S. (1964). The managerial grid. Houston, TX: Gulf Publishing.
Blake, R. R., & Mouton, J. S. (1984a). Solving costly organizational conflicts. San Francisco, CA: Jossey-Bass.
Blake, R. R., & Mouton, J. S. (1984b). The managerial grid III (3rd ed.). Houston, TX: Gulf Publishing.
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Brett, J. M., & Shapiro, D. L. (1998). Breaking bonds of reciprocity in negotiations. Academy of Management Journal, 41(4), 410–424.
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Dana, D. (2000). Conflict resolution: Mediation tools for everyday worklife. New York, NY: McGraw-Hill Book Company.
Dewine, S., Nicotera, A. M., & Perry, D. (1991). Argumentativeness and aggressiveness: The flip side of gentle persuasion. Management Communication Journal, 4, 386–411.
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Filley, A. C. (1975). Interpersonal conflict resolution. Chicago, IL: Scott, Foresman.
Fisher, R., & Ury, W. (1981). Getting to yes. New York, NY: Penguin Books.
Fisher, R., Ury, W., & Patton, B. (1991). Getting to yes: Negotiating without giving in (2nd ed.). New York, NY: Penguin Books.
Follett, M. P. (1940). Constructive conflict. In H. C. Metcalf & L. Urwick (Eds.), Dynamic administration: The collected papers of Mary Parker Follet (pp. 30–49). New York, NY: Harper (original work published in 1926).
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Forte, P. S. (1997). The high cost of conflict. Nursing Economics, 15, 119–123.
Friedman, R. (2002). Musical operating rooms: Mini-cases of health care disputes. International Journal of Conflict Management, 13(4), 419–420.
Gardner, D. L. (1992). Conflict and retention of new graduate nurses. Western Journal of Nursing Research, 14, 76–85.
Gross, M. A., & Guerrero, L. K. (2000). Managing conflict appropriately and effectively: An application of the competence model to Rahim’s organizational conflict styles. International Journal of Conflict Management, 11(3), 200–226.
Jackson, S. E., & Schuler, R. S. (1985). A meta-analysis and conceptual critique of research on role ambiguity and role conflict in work settings. Organizational Behavior and Human Decision Process, 36, 16–78.
Jehn, K. A., & Mannix, E. A. (2001, April). The dynamic nature of conflict: A longitudinal study of intragroup conflict and group performance. Academy of Management Journal, 44(2), 238– 251.
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Johnson, M. (1994). Conflict and nursing professionalization. In J. M. McCloskey & H. K. Grace (Eds.), Current issues in nursing (4th ed., pp. 643–649). St. Louis, MO: Mosby.
Kabanoff, B. (1991). Equity, equality, power, and conflict. Academy of Management Review, 16, 416–441.
Kolb, D. M., & Bartunek, J. M. (1992). Hidden conflict in organizations: Uncovering behind-the-scenes disputes. Newbury Park, CA: Sage.
Kottler, J. (1996). Beyond blame: A new way of resolving conflicts in relationship. San Francisco, CA: Jossey-Bass Publishers.
Lee, C. (1990). Relative status of employees and styles of handling interpersonal conflict. International Journal of Conflict Management, 1, 327–340.
Lewicki, R., Weiss, S., & Lewin, D. (1992). Models of conflict, negotiation and third party intervention: A review and synthesis. Journal of Organizational Behavior, 13, 209–252.
Locke, E. A., Smith, K. G., Erez, M., Chah, D. O., & Schaffer, A. (1994). The effects of intra-individual goal conflict on performance. Journal of Management, 20, 67–92.
Longest, B. B., & Brooks, D. H. (1998). Managerial competence at senior levels of integrated delivery systems. Journal of Healthcare Management, 43(2), 115–135.
Management Development Institute, Eckerd College. (2003). Leadership effectiveness study—Conflict and your career. Available from http://www.conflictdynamics.org/
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McElhaney, R. (1996). Conflict management in nursing administration. Nursing Management, 24, 65–66.
Nulty, P. (1993, February). Look at what unions want now. Fortune, 127, 128–133.
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Pondy, R. L. (1967). Organizational conflict. Concept and models. Administrative Science Quarterly, 12, 296–320.
Porter-O’Grady, T., & Epstein, D. G. (2003). When push comes to shove: Managers as mediators. Nursing Management, 34(10), 34–38.
Rahim, M. A. (1985). A strategy for managing conflict in complex organizations. Human Relations, 38, 81–89.
Rahim, M. A., Garrett, J. E., & Buntzman, G. F. (1992). Ethics of managing interpersonal conflict in organizations. Journal of Business Ethics, 11(5/6), 423–432.
Robbins, S. (1990). Organization theory (3rd ed.). Englewood Cliffs, NJ: Prentice Hall.
Rubin, J. Z., & Brown, B. R. (1975). The social psychology of bargaining and negotiation. New York, NY: Academic Press.
Schwarz, R. M. (1994). The skilled facilitator: Practical wisdom for developing effective groups. San Francisco, CA: Jossey-Bass.
Shelton, C. D., & Darling, J. R. (2004). From chaos to order: Exploring new frontiers in conflict management. Organization Development Journal, 22(3), 22–41.
Stamato, L. (2004, July/August). The new age of negotiation. Ivey Business Journal Online. Available from www.iveybusinessjournal.com/archives
Stevens, C. M. (1963). Strategy and collective bargaining negotiation. New York, NY: McGraw-Hill Book Company.
Tarantino, D. P. (2004). The role of the physician executive in negotiation. Physician Executive, 30(5), 71–73.
Thomas, K. W. (1976). Conflict and conflict management. In M. Dunnette (Ed.), Handbook of industrial and organizational psychology (pp. 889–935). Chicago, IL: Rand McNally College Publishing Company.
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Thomas, K. W. (1992a). Conflict and conflict management: Reflections and update. Journal of Organizational Behavior, 13, 265–274.
Thomas, K. W. (1992b). Conflict and negotiation processes in organizations. In M. Dunette (Ed.), Handbook of industrial and organizational psychology (2nd ed., Vol. 3, pp. 651–717). Palo Alto, CA: Consulting Psychologists Press.
Thomas, K. W., & Kilmann, R. H. (1974). Thomas-Kilmann conflict mode instrument. Tuxedo, NY: Xicom, Inc. (Currently available through Consulting Psychologist’s Press.)
Thomas, K. W., & Schmidt, W. (1976). A survey of managerial interests with respect to conflict. Academy of Management Journal, 19(2), 315–318.
Walton, R. E., & McKersie, R. B. (1965). A behavioral theory of labor negotiations: An analysis of a social interaction system. New York, NY: McGraw-Hill Book Company.
Watson, C., & Hoffman, L. R. (1996). Managers as negotiators. Leadership Quarterly, 7(1), 63–85.
Winder, R. (2003). Organizational dynamics and development. Futurics, 27(1/2), 5–30.
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1114237 - Jones & Bartlett Learning ©
Other Suggested Readings Agor, W. H. (1984). Intuitive management: Integrating left and right
brain management skills. Upper Saddle River, NJ: Prentice Hall.
Ashford, B. E. (2001). Role transitions in organizational life: An identity-based perspective. Mahwah, NJ: Lawrence Erlbaum Associates.
Bates, B. (1975). Physician and nurse practitioners: Conflict and reward. Annals of Internal Medicine, 82, 702–706.
Brett, J. F., Northcraft, G. B., & Pinkley, R. L. (1999). Stairways to heaven: An interlocking self-regulation model of negotiation. Academy of Management Review, 24(3), 435–451.
Davis, M. H., Capobianco, S., & Kraus, L. (2004). Measuring conflict-related behaviors: Reliability and validity evidence regarding the conflict dynamics profile. Educational and Psychological Measurement, 64(4), 707–731.
Elangovan, A. R. (2002). Managerial intervention in disputes: The role of cognitive biases and heuristics. Leadership & Organization Development Journal, 23(7), 390–399.
Friedman, R. A., Tidd, S. T., Currall, S. C., & Tsai, J. C. (2002). What goes around comes around: The impact of personal conflict style on work conflict and stress. International Journal of Conflict Management, 11(1), 32–55.
Gigerenzer, G. (2007). Gut feelings: The intelligence of the unconscious. New York, NY: Penguin Group.
Kahneman, D. (1991). Judgment and decision making: A personal view. Psychological Science, 2(3), 142–154.
Kilmann, R. H., & Thomas, K. W. (1977). Developing a forced- choice measure of conflict-handling behavior: The mode instrument. Education and Psychological Development, 37, 309–325.
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Kolb, D. M., & Putman, L. L. (1992, May). The multiple faces of conflict in organizations. Journal of Organizational Behavior, 13, 311–324.
McWilliams, C. (2003). Healthcare decision making for dementia patients: Two problem cases. Internet Journal of Law, Healthcare and Ethics, 2(1), 12–19.
O’Connor, K. M., DeDreu, C. K., Schroth, H., Barry, B., Lituchy, T. R., & Bazerman, M. H. (2002). What we want to do versus what we think we should do: An empirical investigation of intrapersonal conflict. Journal of Behavioral Decision Making, 15, 403–418.
Shelton, C. D., & Darling, J. R. (2004). From chaos to order: Exploring new frontiers in conflict management. Organization Development Journal, 22(3), 22–41.
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1114237 - Jones & Bartlett Learning ©
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PART V
Groups and Teams
People are social beings and have a need for affiliation or achieving a sense of belonging. Groups help to
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satisfy this need. In Chapter 16, we examine group dynamics. “Group dynamics” is a term created by Kurt Lewin and used to describe the subfield of organizational behavior that attempts to understand the nature of groups, how they develop, and how they interact with the members of the groups, with other groups, and with their environments. In Chapter 17, we discuss the various types of groups and their related functions. Chapter 18 examines the use of teams in today’s complex health service organizations. Health care delivery “takes a village.” Few tasks can be performed from start to finish by one person. To complete a task requires resources from many individuals. Today, we see the widespread use of interdisciplinary teams to deliver effective and efficient health care.
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1114237 - Jones & Bartlett Learning ©
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CHAPTER 16
Overview of Group Dynamics
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LEARNING OUTCOMES
After completing this chapter, the student should understand:
The importance of group dynamics. The characteristics that define a group. The meaning of group interaction and methods to measure it. What motivates individuals to join and remain in groups. The various roles that members assume in groups and the importance of these roles. The meaning of group norms and how they are formed and sustained. The factors that contribute to or inhibit group cohesiveness. The impact of conformity on group performance. The impact of groupthink on group decision making.
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1114237 - Jones & Bartlett Learning ©
▶ Overview Human beings are social animals. Although we are born into and leave the world in a singular manner, we spend the majority of our time working, worshiping, learning, and playing in groups. Because we spend so much of our time in groups, there is great interest in understanding the inner workings of groups and their members. This research is referred to as the study of group dynamics, which is the attempt to understand the behavior in which people interact with, influence, and are influenced by others within groups.
Why is understanding group dynamics important to managers? It is important to the success of an organization. More and more organizations are moving toward a stronger emphasis on their employees working in groups and/or teams. A study by Blackburn and Rosen (1993) found that Federal Express had 4000 employee teams, Motorola used 2200 problem-solving teams, and at any given time 75% of Xerox’s employees serve on some type of task force or on advisory teams. When individuals transition from a staff role to a management role, their objective moves from being an individual performer to accomplishing work through others. It is increasingly rare for managers to work independently. For example, it is estimated that, on average, managers spend 50%–80% of their working day in one sort of group or another. In the health care setting, this estimate is not surprising. Health care managers, both clinical and administrative, participate in numerous work groups and teams on a daily basis, such as operating room teams, disease management teams,
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patient safety committees, biomedical ethics committees, patient care teams, trauma teams, and emergency-preparedness and disaster-management teams. The movement toward accountable care organizations and patient-centered medical homes will increase the importance of teams in health care (Taplin, Foster, & Shortell, 2013). Additionally, as health care systems expand geographically and integrate vertically, more managers may find themselves working on virtual teams with people they may have never met face to face. Therefore, to be able to manage groups effectively, managers need to understand the variables involved relating to groups: formation and development, structure, and interrelationships with individuals, other groups, and organizations (Turner, 2000).
Our discussion of groups is divided into three sections. We define what a group is, discuss why individuals join groups, and then examine the interactions and behavior of members within a group. Although the terms “groups” and “teams” are often used interchangeably, there are differences. The concept of groups is broader than the concept of teams; therefore, not every group is a team. Katzenbach and Smith (1993) point out that teams are a special form of groups that have highly defined tasks and roles and demonstrate high group commitment. Because of these characteristics, we discuss the nature of teams separately.
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ What Is a Group? Social scientists usually define a group using four characteristics: (1) two or more people in social interaction, (2) a stable structure, (3) common interests or goals, and (4) the individuals perceiving themselves as a group. For example, two patients waiting to be treated in a hospital’s emergency department are not a group. This collection of two individuals is not a group because (1) there is no interaction between the two patients, nor are they attempting to influence each other; (2) patients in an emergency department constantly change, so a stable environment does not exist for future interactions; (3) although patients may have similar goals (e.g., restoring their healthy status, alleviation of pain), they are not working in a coordinated effort to achieve a common goal; and (4) these patients do not perceive themselves as a group, only as individuals occupying space in the same location at the same time. However, a group exists when volunteer members of the local chapter of the American Heart Association meet to plan the next fundraising event or when a multidisciplinary group of clinicians convenes for the purpose of developing evidence-based guidelines for patients admitted to the hospital with congestive heart failure. These groups represent collections of individuals with a common interest or goal in a stable environment (although members may join and leave the group at various times) wherein members interact with one another with the intent of influencing each other. One important factor relating to
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group dynamics is understanding the interactions that occur between a group’s members.
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1114237 - Jones & Bartlett Learning ©
▶ Group Interaction Tubbs (2001) defines group interaction as the process by which members of a group exchange verbal and nonverbal messages in an attempt to influence one another. Therefore, interaction includes talking, listening, nonverbal gestures, texts, emails, and any other behavior to which people assign meaning. By observing these interactions, we can better understand the dynamics within a group. On a formal level, researchers may use a sociogram to record their observations of the interactions between members of a group (see Figure 16-1).
Figure 16-1 A Typical Sociogram
A sociogram is a pictorial method of mapping out and recording the contributions of members to a group interaction. In the example shown in Figure 16-1, the number of inputs is recorded as lines in the circles, each
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of which represents a participant in the interaction. The arrows show the direction of the contributions made, and their thickness indicates the intensity of the traffic. An arrow pointing outward indicates a contribution made to the group as a whole rather than to an individual member (such as when an individual addresses the group in general).
However, a sociogram is limited to documenting the direction and intensity of communication; it does not include the content of what was communicated by the members in their attempt to influence one another. Other assessment tools, such as Bales’s Interaction Process Analysis, can provide insight into the content of the members’ communication (see Figure 16-2).
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Figure 16-2 Bales’s Interaction Process Analysis
Reproduced from Bales, R. F. (1950). Interaction process analysis: A
method for the study of small groups. Chicago: University of Chicago
Press.
As Sprott (1958) noted, Bales’s Interaction Process Analysis includes 12 categories of interactions; these interactions are classified as relating to either emotion or task. The emotional responses are either positive (items 1–3) or negative (items 10–12). Task responses are either giving information (items 4–6) or asking for
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information (items 7–9). The 12 categories are also grouped into pairs, as noted in Table 16-1. The interactions of these 12 categories greatly influence the roles assumed by members and group norms.
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Table 16-1 Bales’s Interaction Process Analysis: Twelve Categories Paired
Items Description Example
1 and 12
Orientation How well do the group members cohere? Bales gives the example of a man who makes an offensive remark directed at another member (item 12); however, the laughter that follows is classified under item 2.
2 and 11
Emotional response only
Bales gives the example of a member sighing heavily and examining his fingernails.
3 and 10
Acceptance or rejection
This is where decisions are made. If positive, the member may show understanding, passive acceptance, and complies with the decision. If negative, the member may show disagreement, passive rejection, and without assistance.
4 and 9
Control Asking for suggestions such as “I think we should do this” or “How do you think we ought to tackle this?” By asking for suggestions, a member is getting the others to commit themselves. By committing themselves, members limit their future choices. This is a method of bringing other members under control, which may or may not lead to resentment.
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5 and 8
Opinion “Have we done that?” “We ought to make sure that we do this.” Any comments that involve summarizing the issues.
6 and 7
Orientation Setting out the problem and giving factual information.
Bales, R. F. (1950). Interaction process analysis: A method for the study of small groups. Chicago: University of Chicago Press. Reprinted with permission.
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1114237 - Jones & Bartlett Learning ©
▶ Why Do People Join Groups? Individuals join groups for many reasons, and many of these reasons are explained by Maslow’s Hierarchy of Needs. Individuals join groups to satisfy their need for belonging (i.e., the need to have close contact with others and to be accepted by them) in addition to social and affection needs. Groups can satisfy an individual’s need for safety by reducing the sense of powerlessness and anxiety, which may be experienced in ambiguous or threatening situations. Members may join because group affiliation can be an important part of an individual’s self-esteem as well as social identity. People need to have a positive opinion of themselves, which they gain in part from acceptance by others in a group and evidence that other group members share their views and values. Furthermore, a group can help members to achieve stated goals that they could not have achieved alone as individuals.
Group membership can satisfy a number of needs for an individual, in addition to the member contributing to other members and the group achieving objectives. However, deciding whether to join a group or to continue membership in a group poses an approach–avoidance conflict. To resolve the conflict, an individual will perform a cost–benefit analysis of the relationship. Members will continue with their association as long as the rewards (satisfaction of needs) outweigh or are equal to the costs of being a member, such as required time to participate and financial commitment. This cost–benefit analysis is analogous to Adams Equity Theory of Motivation.
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ Roles of Group Members Functional Role Theory, as introduced by Benne and Sheats (1948), identified the functional roles that they saw individual group members assuming in small group interactions. The three roles identified were task, maintenance, and individual (sometimes called “self- centered”) roles (see Exhibit 16-1). Task-oriented roles focus on goal accomplishment, maintenance roles focus on relationships, and individual roles focus on individual needs (such as needs for power or recognition), which may in the long run be harmful to the group’s overall success. Benne and Sheats’s task and maintenance roles are similar to the two communication patterns—task-oriented and socioemotional—that Bales (1950, 1953, 1970, 1999) identified in his research on group members’ interactions. Bales’s task role relates to a member’s activities that help the group accomplish its goals (e.g., concern for production), and the member’s socioemotional role is described as the activities that the member performs to promote harmonious relations within the group (e.g., concern for people) (refer to Figure 16-2).
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Exhibit 16-1 Benne and Sheats’s Functional Roles of Group Members
Task Roles—Groups have members who play roles relating to job completion:
Initiator–contributor: Generates new ideas. Information-seeker: Asks for information about the task. Opinion-seeker: Asks for the input from the group about its values. Information-giver: Offers facts or generalization to the group. Opinion-giver: States their beliefs about a group issue. Elaborator: Explains ideas within the group and offers examples to clarify ideas. Coordinator: Shows the relationships between ideas. Orienter: Shifts the direction of the group’s discussion. Evaluator-critic: Measures group’s actions against some objective standard. Energizer: Stimulates the group to a higher level of activity. Procedural-technician: Performs logistical functions for the group. Recorder: Keeps a record of group actions.
Maintenance Roles—Groups also have members who play certain social roles:
Encourager: Praises the ideas of others.
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Harmonizer: Mediates differences between group members. Compromiser: Moves group to another position that is favored by all group members. Gatekeeper/expediter: Keeps communication channels open. Standard setter: Suggests standards or criteria for the group to achieve. Group observer: Keeps records of group activities and uses this information to offer feedback to the group. Follower: Goes along with the group and accepts the group’s ideas.
Individual Roles—Member roles that can be counterproductive to the accomplishment of the group’s task or goals:
Aggressor: Attacks other group members, deflates the status of others, and shows other aggressive behavior. Blocker: Resists movement by the group. Recognition seeker: Calls attention to themselves. Self-confessor: Seeks to disclose non-group- related feelings or opinions. Dominator: Asserts control over the group by manipulating the other group members. Help seeker: Tries to gain the sympathy of the group.
Benne, K., & Sheats, P. (1948). Functional roles of group members.
Journal of Social Issues, 4, 41–49. Reprinted with permission.
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Members may assume different roles depending on the needs of the individual or the group. Bales found that some members engaged in more task and socioemotional activities than others and, as a result, were offered leadership status in the group. However, Bales also found that the person who engaged in the most task activities was not the same person who performed the most socioemotional activities. Therefore, two leaders emerged: the task leader, who was rated as having the best ideas, offering the most guidance, and being most influential in forming the group’s opinions, and the socioemotional leader, who was the best liked. The usual explanation for the emergence of the second leader is that a task leader’s sense of purpose gives rise to activities (e.g., unpopular orders, sharp criticism) that hurt group members’ feelings. The second leader emerged to smooth things over and restore harmony to the group.
Belbin (1981, 1993, 2004) studied the performance of a team and how performance was directly affected by the roles that members play. Belbin developed the Team Role Theory, which proposes that for optimal operation of a management team, nine (originally eight) personality-related team roles needed to be fulfilled. The roles are chairman/coordinator, shaper, plant, teamworker, completer/finisher, company worker/implementator, resource investigator, monitor/evaluator, and specialist. Belbin’s nine roles can be categorized as task/task-oriented, maintenance/socioemotional positive, or individual/socioemotional negative according to Benne
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and Sheats’s Functional Role Theory and Bales’s Interaction Analysis (see Table 16-2). All groups need task leadership as well as attention to detail and a concern for people in order to be effective. Understanding the various members’ roles is important for comprehending the interactions that either push a group toward or hinder the group from meeting its goals, including member satisfaction with the interactions. The role(s) that a member assumes and the resulting interactions greatly influence the group’s norms.
Table 16-2 Comparison of Members’ Roles
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ Group Norms Every group has a set of norms, which is an implied code of conduct about what is acceptable and unacceptable member behavior. Norms can be written or unwritten; positive, negative, or neutral; and applied to all members of the group or only to certain members. In addition, groups will apply “punishment” or sanctions to members whose behavior deviates from the group’s norms. Norms can dictate the performance level of groups (e.g., high- or low-productivity work groups), the appearance of group members (e.g., bankers wear dark suits), or the social arrangement within the group (the chair of the committee sits at the head of the conference table).
Most organizations have formal rules of conduct, which are delineated in their policies and procedures manuals. For example, a hospital would have written policies on clinical research protocols, infection-control procedures for handling blood and other body fluids, the proper attire to be worn in operating room suites, and processes to ensure that the correct patient (and correct body part) is operated on (see Exhibit 16-2).
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Exhibit 16-2 Surgical Checklist
The implementation of a surgical checklist that guides the surgical team through a series of tasks and communications before, during, and after the surgery represents an example of written formal rules of conduct. Research by the World Health Organization found that implementing such a checklist reduced postoperative complications and death rates by over 30% (Haynes et al., 2009).
WHO Surgical Safety Checklist, Retrieved from
https://www.who.int/patientsafety/topics/safe-surgery/checklist/en/
However, in most instances, group norms (i.e., acceptable behavior of group members) are unwritten and learned by members through their interactions with others. For example, Crandall (1988) studied groups of cheerleaders, dancers, and female sorority members with high rates of eating disorders and noted that these groups adopted the behaviors of binging and purging as
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normal methods of weight control. The most popular members of the group binged and purged at the rate established by the norms of the group, and those who did not binge and purge when they first joined the group were more likely to take up the practice the longer they were members of the group. This alignment of behavior within a group is part of an individual’s socialization process. This process of socialization explains how unwritten norms become the “standards” for the group, as members begin to internalize the group’s norms as their own behavior standards. As such, norms do not just maintain order within the group; they also maintain the group itself (Youngreen & Moore, 2008).
Since most group norms are unwritten, they are usually not easily identified until violated. When group norms are violated, members of the group will attempt to convince the “deviant” to conform to the group’s standards of behavior. If the use of persuasion is not successful, the group may punish the member by withdrawing any “special” status that the member may hold, or the group may psychologically reject (e.g., ignore) the member. The final consequence for a member who refuses to conform would be dismissal from the group. Through this process, members learn the range or boundaries of acceptable behavior within a group. For example, Feldman (1984) describes the norms about productivity that frequently develop among factory workers. A person produces 50 widgets and is praised by their coworkers; a person produces 60 widgets and is sharply teased by coworkers; a person produces 70 widgets and is ostracized by coworkers. If
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the group norm is that producing 50 widgets allows for an acceptable pace of work, the group member who produces 70 widgets may either make the rest of the group look lazy or cause management to raise the target number of widgets to be produced, resulting in an uncomfortably fast pace of work. Not all behavior deviations will be enforced, only those violations that have some significant effect on the group meeting its goals (see Table 16-3). Norms are powerful forces not only din affecting the behavior of group members, but also in determining the degree of cohesiveness and conformity of the group.
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Table 16-3 Why Norms Are Enforced
Four Conditions Under Which Group Norms Are Most Likely To Be Enforced Example
If norms facilitate group survival
Group members do not disclose certain project details so that their work cannot be replicated by another group.
If norms simplify or make predictable what behavior is expected of group members
Employees are expected to be present at the office during the same hours each day so that clients always know where to find team members.
If norms help the group to avoid embarrassing interpersonal problems
Members do not discuss politics at work so that members with strongly held beliefs do not create conflict or ostracize other members.
If norms express the central values of the group and clarify what is distinctive about the group’s identity
Long white coats are worn by physicians so that patients know which care provider is their doctor and to symbolize a high level of training and expertise.
“The Development and Enforcement of Group Norms,” by D. C. Feldman, 1984. The Academy of Management Review, 9, pp. 47–53.
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ Cohesiveness The degree of cohesiveness (e.g., camaraderie) of a group is determined by various factors, which may include members’ dependence and physical location/proximity. The more significant factors tend to be (1) the size of the group, (2) experience of success by the group, (3) group status, and (4) outside threats to the group.
Size of the Group Researchers have determined that the size of the group has a direct impact on the cohesiveness of a group. When there are too many members, it becomes too difficult for members to interact. Luft (1984, p. 23) concluded that “cohesion tends to be weaker and morale tends to be lower in large groups than in comparable smaller ones.” What is the acceptable group size? Kameda, Stasson, David, Parks, and Zimmerman (1992) suggest that the optimum group size appears to be five members. Five-member groups are small enough for meaningful interaction yet large enough to generate an adequate number of ideas (Tubbs, 2001). Small groups may also avoid the problem of social loafing.
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Social Loafing Diffusion of responsibility refers to the phenomenon by which an individual feels less responsible for a task when they are part of a group. For example, people are more likely to call for an ambulance when they see a car wreck if there are no other cars on the road. However, if the car wreck occurs in the middle of a busy highway with lots of other cars around, people are more likely to assume that somebody else in traffic will make the call. Perhaps you ignore the full trashcan, hoping that your roommate will take care of it. A specific consequence of diffusion of responsibility that occurs in working groups is called social loafing.
Social loafing refers to the decreased effort of individual members in a group when the size of the group increases (Tubbs, 2001). Ringelmann (1913) identified this social phenomenon when he noticed that as more and more people were added to a group pulling on a rope, the total force exerted by the group rose but the average force exerted by each group member declined. The reason is that some members’ performance became mediocre because they assumed that other members would pick up the slack. Karau and Williams (1993) found that social loafing occurs across work populations and tasks. However, the researchers noted that if the participants’ dominant culture emphasized collectivism versus individualism as described by Hofstede’s four dimensions of national culture (Hofstede, 1984), the degree of social loafing decreased.
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Subsequent studies revealed that when an individual’s contribution is identified and the person is held directly accountable for and rewarded for their behavior, social loafing may be eliminated (Kerr, 1983; Kerr & Bruun, 1981; Shepperd, 1993; Szymanski & Harkins, 1987). Beyerlein, Freedman, McGee, and Moran (2003) stress that personal accountability by each group member for their role and responsibilities is required to achieve an effective collaborative team. When accountability is lacking, members will usually act in support of their own self-serving interests. For example, members will sometimes hold back if they believe that other members of their group are not expending equal efforts toward accomplishing the task.
Experience of Success Prior success of a group in reaching its goals has a direct impact on the degree of cohesiveness. No one wants to stay on a losing team. When a group fails to attain its goals, members display a lack of unity by infighting, finger pointing, and, finally, disassociation.
Group Status Cohesiveness is more prominent when admission into the group is more difficult to obtain because of various barriers or high criteria, such as education levels. This perception of status, whether real or not, creates a feeling of being in the “in-group” for the individuals who were able to overcome the barriers for admission into the group—for example, a physicians’ group.
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Outside Threats to the Group The cohesiveness of a group will increase if its members perceive that an external force may prevent the group from reaching its goals. Members of the group will unite to display a unified front to the opposing force. In addition, cohesive groups will unite against nonconforming members who threaten the esprit de corps of the group. Therefore, cohesive groups exert pressure on members of the group to conform.
Managers should assist their subordinates’ development into cohesive work groups because research has shown that cohesive units demonstrate a higher level of productivity than less cohesive groups do. However, managers need to be aware that group norms may mediate the relationship between cohesiveness and performance. On the one hand, if norms support performance-related activities, then cohesiveness is likely to improve performance. On the other hand, if norms support limited output or engagement in irrelevant tasks, cohesiveness may undermine performance (Berkowitz, 1954).
In conclusion, group cohesiveness is a product of social identification. According to Hogg and Abrams (1990), the more positive a member feels about their group, the more motivated the person is to promote in-group solidarity, cooperation, and support. In turn, the more cohesive a group is, the more likely it is that its members will interact socially and influence one another (Turner, 1987). Because of these interactions, we find that more cohesive groups have a tendency to eventually pressure their members toward a higher degree of
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conformity, and a high degree of conformity can lower the performance level of the group.
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▶ Conformity Strong group norms and high degrees of group cohesiveness can hamper the performance of a group because of conformity pressures. Conformity involves the changing of an individual’s perceptions or behaviors to match the attitudes or behaviors of others. This “normative social influence” occurs when we conform to what we believe to be the norms of the group in order to be accepted by its members.
One of the earliest studies in the conformity area was Sherif’s (1936) experiment that involved the autokinetic effect. Sherif pointed a light in a dark space that, although stationary, appeared to move. Subjects were asked, both as individuals and as members of a group, to estimate the amount of movement they observed. When in groups, the subjects changed their original estimates to more closely fit the answers of the other members. This experiment demonstrated the individual’s urge to conform.
Asch (1952) also conducted conformity studies. In Asch’s experiments, eight people were seated around a table. Seven of them were actually the experimenters or confederates. However, the eighth person, the subject, was unaware of this situation. The group was shown two cards; each card contained different lengths of vertical lines (i.e., no two lines matched in length on either card). The participants were asked to say which of the lines matched the length of another. One after another, the participants announced their decisions. The confederates had been told to give an incorrect
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response. The eighth subject sat in the next to last seat so that all but one of the other participants had given an obviously incorrect answer before the subject gave their answer. Even though the correct answer was obvious (i.e., no two lines matched in length on either card), Asch found that one-third of the subjects conformed to the majority, one-third never conformed, and the remaining one-third gave conforming responses at least once. This experiment was designed to create pressure on subjects to conform to others, which in fact they did.
Although Asch’s experiment has been criticized for being unrealistic (i.e., in the real world, individuals would be making decisions on subjects more complex and more important than the length of a line), it did confirm that “humans have the tendency to conform to the goals and ideas of a small group and tend to be unwilling to go against the group even if they know the group is wrong” (Asch, 1960).
Not all people conform. There is evidence that those who do not conform tend to have a healthy level of self- esteem and to have mature social relationships as well as being fairly flexible and open-minded in their thinking. For example, Crutchfield (1955) and Tuddenham (1958) found that there is a correlation between high intelligence and other personality traits and low conformity. Another important aspect of conformity is that it may lead to “groupthink.”
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1114237 - Jones & Bartlett Learning ©
1114237 - Jones & Bartlett Learning ©
▶ Groupthink Strong conformity pressures reflect members’ attempts to maintain harmony within the group. However, conformity may hamper a group’s performance by decreasing innovation and increasing faulty decision making. Janis (1982) referred to this situation as “groupthink.” Groupthink refers to conditions under which efforts to maintain group harmony undermine critical thought and lead to poor decisions (Janis, 1982; Janis & Mann, 1977). Janis, as cited by Tubbs (2001, p. 236), identified eight symptoms of groupthink:
Type I: Overestimation of the group—its power and morality 1. An illusion of invulnerability, shared by most or all
of the members, which creates excessive optimism and encourages taking extreme risks.
2. An unquestioned belief in the group’s inherent morality, inclining the members to ignore the ethical or moral consequences of their decisions.
Type II: Closed-mindedness 1. Collective efforts to rationalize in order to discount
warnings or other information that might lead the members to reconsider their assumptions before they recommit themselves to their past policy decisions.
2. Stereotyped views of enemy leaders as too evil to warrant genuine attempts to negotiate or as too weak and stupid to counter whatever risky attempts are made to defeat their purposes.
Type III: Pressures toward uniformity
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1. Self-censorship of deviation from the apparent group consensus, reflecting each member’s inclination to minimize to themselves the importance of their doubts and counterarguments.
2. A shared illusion of unanimity concerning judgments conforming to the majority view (partly resulting from self-censorship of deviations, augmented by the false assumption that silence means consent).
3. Direct pressure on any member who expresses strong arguments against any of the group’s stereotypes, illusions, or commitments, making clear that this type of dissent is contrary to what is expected of all loyal members.
4. The emergence of self-appointed mindguards— members who protect the group from adverse information that might shatter its shared complacency about the effectiveness and morality of its decisions.
Was groupthink the downfall of HealthSouth? (See Exhibit 16-3.) Many former senior managers of HealthSouth, a nationwide provider of rehabilitative services headquartered in Birmingham, Alabama, were indicted and in some cases found guilty of fraudulently and systemically inflating the company’s earnings and assets by approximately $4 billion during the 1990s.
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Exhibit 16-3 Five HealthSouth Officers Charged with Conspiracy to Commit Wire and Securities Fraud
Count 1 of the Information alleges that a conspiracy existed from in or about 1994 until the present between AYERS, EDWARDS, MORGAN, AND VALENTINE and with Owens, Smith, Harris, and others to devise a scheme to inflate artificially HealthSouth’s publicly reported earnings and the value of its assets, and to falsify reports of HealthSouth’s financial condition. It was part of the conspiracy that Owens, Smith, Harris, and others would provide the Chief Executive Officer (CEO) with monthly and quarterly preliminary reports showing HealthSouth’s true and actual financial results. After reviewing these reports, Owens, Smith, Harris, and others would direct that HealthSouth’s accounting staff find ways to ensure that HealthSouth’s “earnings per share” number met or exceeded Wall Street analyst expectations. After Owens, Smith, Harris, and others issued instructions as to the desired earnings per share number, HealthSouth’s accounting staff would meet to discuss ways to inflate artificially HealthSouth’s earnings to meet the CEO’s desired earnings numbers.
These meetings were known as “family” meetings, and attendees were known as the “family.” At the meetings, they would discuss ways by which members of the accounting staff would falsify
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HealthSouth’s books to fill the “gap” or “hole” and meet the desired earnings. The fraudulent postings used to fill the “hole” were referred to as the “dirt.” Owens, Smith, Harris, and others would and did direct one or more of the defendants, also members of the accounting staff, to make false entries in HealthSouth’s books and records for the purpose of artificially inflating HealthSouth’s revenue and earnings. Owens, Smith, Harris, and others would direct one or more of the defendants to make corresponding false entries in HealthSouth’s books and records for the purpose of artificially inflating the value of its assets, including, but not limited to, false entries made to (a) Property, Plant and Equipment (“PP&E”) accounts; (b) cash accounts; (c) inventory accounts; and (d) intangible asset [goodwill]. When events required that financial records and reports related to units of HealthSouth were called for by auditors, purchasers, and others, Owens, Smith, Harris, and others would direct one or more of the defendants to generate records and reports that would black out the false entries. Owens, Smith, and one or more of the defendants would, for the purpose of deceiving auditors, manufacture false documents for the purpose of supporting false record entries. One or more of the defendants would and did change codes on accounts to deceive auditors.
Reproduced from the U.S. Department of Justice’s Press Release dated
April 3, 2003.
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Managers must be careful because group members sometimes desire to maintain their close team relationships—or, in the HealthSouth case, “the family relationship”—at all costs. When group members operate in a groupthink mode, it may affect their decision making. For example, consider a health care provider who has proposed a new medical procedure for joint replacements. Some team members are initially resistant because of high training demands, even though the new procedure would establish best practices. To preserve harmony in the group, other staff members go along with the resisting members. In this case, the team has succumbed to group thinking instead of critical thinking.
Many researchers studied the culture of the National Aeronautics and Space Administration (NASA) after the Challenger disaster and found evidence of this type of groupthink. Engineers did not voice their concerns and criticism because of the strong team spirit and camaraderie at NASA. In other words, it is when groups display a high degree of cohesiveness that it is especially important to be on guard against groupthink.
Suggested safeguards against groupthink include (1) soliciting outside expert opinions during the decision- making process, (2) appointing a devil’s advocate to challenge majority views, (3) hypothesizing alternative scenarios of a rival’s intention, and (4) reconsidering decisions after a waiting period. Many researchers have questioned the effectiveness of these safeguards. For example, Bennis (1976) argues that a devil’s advocate
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will be ignored if the group perceives the member as only role-playing.
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1114237 - Jones & Bartlett Learning ©
▶ Conclusion Many factors influence our behavior. Group dynamics is a complex subject that attempts to provide us with some understanding of how individuals interact with one another and how those interactions become visible in our resulting behavior. Burton and Dimbleby (1996) developed a model, using interpersonal communication as the foundation, to help us understand the complexity of group dynamics (see Figure 16-3).
Figure 16-3 The Interface of Me and Them
Reproduced from Burton, G., & Dimbleby, R. (1996). Between ourselves: An
introduction to interpersonal communications (2nd ed.). London: Edward
Arnold.
The figure is titled “The Interface of Me and Them.” Since group dynamics is the attempt to understand how people interact with and influence others within groups, the title is most appropriate. When examining the model, you will notice that the bottom half is concerned
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with “me” and the top half represents “them.” The process begins with an individual’s needs or motivation, which triggers the “whole of self.” The triangle represents the various interactions we have with our groups that are filtered through our self-concept, which, taken together, form our personal roles. We then communicate our role and receive feedback from both ourselves (did I play the role correctly?) and others (did they confirm my behavior was correct?) to restart the process of redefining who we are as an individual (personal role). Although the model may appear somewhat complex, it only starts to explain the complexity of human behavior.

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