HireDiversity

Do Relationship-building and Job Security Really Go Together?

March 9, 2009

Ivonne Chirino-Klevans, Ph.D., Program Director, International Programs, Walden University, for HireDiversity.com

Downsizing has become a frequently used strategy for surviving the most recent economic crisis, whether to reduce costs, improve efficiency or increase profitability.

Although each organization may have very specific criteria for keeping its employees (for example, based on the importance of their job), there are three key areas that managers look at when deciding who will be laid off:
-- Performance
-- Fit within the organizational culture
-- Ability to work well with others

The social exchange process, or being able to create effective teams, has been used to explain why organizations sometimes terminate top performers. One study, "Determinants of voluntary turnover and layoffs in an environment of repeated downsizing following a merger: An event history analysis" as reported in 2000 in the Journal of Management by Roderick Iverson and Jacqueline Pullman, found that employees with excellent attendance records and acceptable performance but with little co-worker support were more likely to be laid off than those with the same characteristics but with strong co-worker support.

This sociological determinant—getting along with others—impacts how an employee's performance is perceived and how the employee's effectiveness on the job is evaluated.

The Leader-Member exchange theory also helps us to understand the importance of getting along in the workplace and how getting along with others affects who and who is not needed in the organization.

This theory focuses on the quality of the interactions between a leader and his/her co-workers and those who report directly to him/her. It is this exchange of interactions, not performance, that will determine the positive or negative relationship between the leader and his/her team. So the quality of the working relationship between the leader and his/her team will determine organizational outcomes.

In this theory, where time and resources are limited, leaders who want to be more effective must form a close-knit group of people they can trust. This group, in exchange, receives special attention, support and career advancement opportunities. These are "high quality in-group" relationships, implying that there is an "out-group" relationship, too. The relationship with this (usually small) in-group is quite close, continuous and strong, and employees who are part of this group are less likely to be laid off.

It is in this light that understanding how these "in-groups" are formed becomes important. According to George B. Graen and Terri A. Scandura in their1987 article, "Toward a Psychology of Dyadic Organizing" in Research in Organizational Behavior, these close relationships form quickly following more or less the ensuing process:

1. Role Taking
In this stage, a new member joins a team. The leader assesses the new member's abilities and skills by assigning him/her tasks and (usually informally) evaluating the performance. A wealth of knowledge and understanding of each other's work styles is exchanged during this phase.

2. Role Making
Next formal and informal communication happens. A role is negotiated for the new member, creating loyalty and dedication to the group and the leader, as a result of a tacit understanding of the power that has been given to the new member. In this phase, building trust is essential, and it is tested on several occasions. At the end of the day, leaders need to be sure that they have a strong team that they can rely on. It is also in this stage that potential in-group members may not make it into the group. More often than not, leaders choose the member to oust based on how similar he/she is to the leader.

3. Routinization
Since a trust relationship has already been created, continuous social exchange happens between the leader and the member. The various members have learned how each prefers to interact among themselves. It is in this stage that the members of this in group will receive more information, more autonomy and experience more empowerment, thus becoming essential and indispensable members of a team.

However, the question remains: How does an employee become part of the in-group?

L. Dionne in the 2000 research paper, "Leader-member exchange (LMX): Level of negotiating latitude and job satisfaction," has identified several skills that are helpful in achieving in-group status, if that is compatible with your professional goals.

--Showing loyalty and consistency. This involves the public expression of support for the goals and for other members of the dyad/team (or the leader). Loyalty involves commitment to the other team members and the leader that does not change no matter the situation.
Going beyond what is expected from your role. It is not enough to set goals, but you must also create a work plan that includes mutual goals for the leader-member dyad, which may be implicit or explicit. For example, if you are in the service industry, your mutual goal may go from beyond providing good service to identifying a niche where you can provide superb client experiences that help not only you, but also your whole organization's public image.
Focusing on building trust and respect. Empathy, patience, and being sensitive and reasonable are all competencies that contribute to creating trust and respect.
Committing yourself to a higher degree of involvement in your assigned project. This means investing more time and energy than you (and others) believe are required by your formal contract.
Being willing to accept greater responsibility and having a genuine interest in the success of your assigned goal.

In times of economic uncertainty, job security is not a given. We need to be prepared to start over at any time. By being able to create a strong relationship between yourself, your leader and your co-workers, you may increase the likelihood of being part of a new and advantageous in-group.

F. Dansereau, G. Graen, & W.J. Haga (1975). "A vertical dyad linkage approach to leadership within formal organizations: A longitudinal investigation of the role making process" in Organizational Behavior and Human Performance.

Dr. Ivonne Chirino-Klevans joined Walden University in 2005 as a professor of organizational psychology and currently serves as Program Director for the Center for International Programs. The International Management Certificate is a post-bachelor business certificate designed to give business professionals in Latin America international business acumen and English language skills.

Her extensive experience includes years of working with Fortune 500 companies in designing training and development programs and serving as Program Director for Duke Corporate Education.

Dr. Chirino-Klevans received her Ph.D. in Psychology from Universidad Iberoamericana, and also holds an MBA from Universidad de las Americas, and a Masters in Psychology from Georgia College and State University. Earlier in her career, she also served as the psychologist for the Mexican national rowing team, and contributed to the team winning a silver medal at the 1991 Pan Am Games. She herself is a Pan American games medalist in gymnastics.

Source: HispanicBusiness.com (c) 2009. All rights reserved.