B-School Bulletin: Carlson Students Protest Shapiro, Call Out Racism

Flourishing Under An Abusive Boss? You May Be A Psychopath, Study Shows

News from Notre Dame University Mendoza College of Business

When you hear the term “psychopath,” you probably picture Charles Manson or Jeffrey Dahmer. Psychologists, however, define it as a personality trait, and we all fall somewhere along a scale from low to high levels of psychopathy.

In the workplace, employees respond differently to abusive management styles, in part due to their varying levels of psychopathy, according to a new study from the University of Notre Dame.

“Certain types of ‘psychopaths’ actually benefit and flourish under abusive bosses, according to Are “Bad” Employees Happier Under Bad Bosses? Differing Effects of Abusive Supervision on Low and High Primary Psychopathy Employees. The study is forthcoming in the Journal of Business Ethics by Charlice Hurst, assistant professor of management in Notre Dame’s Mendoza College of Business.”

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Are You Ready For Personalized Pricing?

News from University of Chicago Booth School of Business

“The introduction of the price tag was a big step forward for American retailing, and you can thank John Wanamaker. In the 1870s, Wanamaker purchased a former Philadelphia railroad depot and expanded his men’s clothing business to include women’s clothing and dry goods. Along with Macy’s in New York and other department stores popping up in major cities, Wanamaker’s Grand Depot revolutionized how people shopped, primarily by placing many different items under one roof. But it went a step further and changed not only where people purchased items but how they paid. It adopted the price tag.

“Until that point, pricing had involved a dance between clerk and customer. When a customer picked up a shirt and admired it, a clerk had to know how much the product cost the store, the overhead associated with storing it, competitors’ prices, and more. Meanwhile, he had to figure out, was the customer in a hurry and willing to pay more, or had he come prepared to negotiate for a steeper discount?”

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Yale SOM Alumni Running For Governor In Two States

News from Yale School of Management

“Two Yale School of Management alumni have launched bids for governor in states with hotly contested races this year. Ned Lamont ’80 has entered the Democratic primary race in Connecticut, while Jonathan Heavey ’11 is seeking the Democratic nomination in Ohio. Both say their Yale SOM education encouraged them to think broadly about how to have an impact on their communities.

“A cable television entrepreneur, Lamont is making his third run for statewide office. He rose to national prominence when he defeated then-Senator Joseph Lieberman in the 2006 Democratic senatorial primary (Lieberman won the general election as an independent). In 2010, Lamont sought the Democratic nomination for governor, losing to then-Stamford Mayor Dannel P. Malloy, who was elected governor and reelected in 2014 but is not seeking a third term.”

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Why Financial Statements Don’t Work For Digital Companies

News from Harvard Business School

“On February 13, 2018, the New York Times reported that Uber is planning an IPO. Uber’s value is estimated between $48 and $70 billion, despite reporting losses over the last two years. Twitter reported a loss of $79 million before its IPO, yet it commanded a valuation of $24 billion on its IPO date in 2013. For the next four years, it continued to report losses. Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. In contrast, industrial giant GE’s stock price has declined by 44% over the last year, as news emerged about its first losses in last 50 years.

“Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm?”

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How Happy Talk Can Ruin M&As

News from INSEAD

“When mergers and acquisitions disappoint — as they do at least 50 percent of the time — a badly managed integration process is often to blame. Even deals with the greatest financial promise can be thwarted if the employees of one or both organisations aren’t on board. For leaders facing their own challenging integration, many experts emphasise the importance of a robust, persuasive communications plan.

“To me, this advice has a familiar ring. As a researcher specialising in strategic change, I have noticed a cross-cultural pattern of executives relying on their communication skills to win support during uncomfortable transition periods. Unfortunately, this faith is often misplaced. Communications strategies designed to convince through air-tight arguments ignore the fact that resistance to change is largely emotional, not rational. And because of what I call the trap of professionalism, i.e. the prevailing belief that emotions have no place at work, employees are reluctant to express their negative feelings openly. So as a starting point, change managers should be able to read the subtle, non-verbal cues that betray buried anxiety or opposition.”

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