Page 28 - Journal of Management Inquiry, July 2018
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           theoretical aspects of the Ohio State and Fiedler’s Contingency   were and any further thoughts as to why getting this
           Model of Leadership studies (House, Filley, & Kerr, 1971;   seminal work published was so challenging?
           House & Kerr, 1973; Kerr & Harlan, 1973; Kerr, Harlan, &   Kerr: The original version of the article was quite differ-
           Stogdill, 1974; Kerr & Schriesheim, 1974; Schriesheim &   ent from the final published product. The number one
           Kerr, 1974). More generally, Steve’s account of what helped   problem that reviewers had with it was that it had no
           form the basis for the “Folly” article provides us with a fasci-  quantitative data. There was a split vote, one reviewer
           nating look at how a good idea, at the right time, in the right   liked it, and one reviewer didn’t. Of course, this was
           context (particularly his previous work experience at   better than my experience at the Eastern Academy of
           Metropolitan Life), as well as persistence and good old luck, all   Management, where the paper was outright rejected!
           amazingly came together to provide us with a true management   Regarding the lack of data, I was able to call upon my pre-
           classic. Interestingly, the “Folly” article is not Steve’s most   vious work experience at Metropolitan Life as a claims
           cited! That honor goes to his work on the meaning and mea-  approver. I have always thought that some of the zaniest
           surement of substitutes for leadership (Kerr & Jermier, 1978).  aspects of reward systems involve rewarding attendance
             For many of us, the “Folly” is best known as having four   instead  of  performance.  For  example,  as  a  claims
           causes of inappropriate reward behavior.  The first cause   approver at Metropolitan Life, I had to take a doctor’s
           involves the fascination with various objective criteria. The   injury  description  and  decide  how  much  money  and
           second involves an overemphasis on highly visible behav-  what kind of benefits employees were eligible to receive.
           iors. The third cause involves hypocrisy, while the fourth and   The trouble was that doctors tended to be short and
           final cause involves the relative role of morality or equity   cryptic in their descriptions. They might write that they
           versus that of efficiency. Upon reflection, Kerr suggests that   had surgically repaired a patient’s ankle. The problem
           our understanding might be better served by combining the   was that you didn’t know if the ankle was dislocated or
           original first two causes. In addition, Kerr provides a further   fractured. Furthermore, if it was fractured, was it a sim-
           reflection on just what hypocrisy is (and is  not) and the   ple or compound fracture?  This is important as each
           important, but complex, role it plays in inappropriate reward   malady had a different benefit code. Compounding the
           behavior patterns. Readily apparent from this discussion is   problem, Met Life evaluated on both quantity and qual-
           the powerful simplicity to his argument: It is important to   ity dimensions. So, claims approvers were judged on the
           measure what is important to measure. It is not important to   number of claims an approver processed as well as num-
           measure what is easy to measure.                        ber of errors. Technically, when in doubt, you were sup-
                                                                   posed to write to the doctor asking for further elaboration
             Question: The “Folly” article is widely recognized as one   of the injury and then inform the patient as to the status
               of the classics in management theory. How did the idea   of their claim. This takes time and you still have not paid
               for the “Folly” come about?                         out the claim.  Alternatively, you could just pay the
             Kerr: Before the original publication of the “Folly” article   claim. However, if you pay too little on the claim, you
               (in the Academy of Management Journal in 1975), I   will hear from the claimant. So, new approvers were
               had published several articles pertaining to various   taught by the veterans that the safest course of action,
               psychometric and theoretical aspects of the Ohio State   when in doubt, was to assume the most severe, costly
               studies (House et al., 1971; Kerr & Schriesheim, 1974;   treatment had been performed. In short, the new approv-
               Schriesheim & Kerr, 1974). These were the result of   ers were coached, “when in doubt pay it out” . . . the
               well-articulated ideas about particular leadership top-  “Folly” in a nutshell.
               ics. On the other hand, early on in my career I began   I was also informed by what was going on in society in
               observing more and more, for lack of a better word,   the early 1970s. In  Vietnam, we would hear of
               “odd” phenomena. For example, when I arrived at     American soldiers who would refuse to take orders and
               Ohio State University in the early 1970s, I suggested   would “frag” their commanding officer. (Fragging
               that we have a visiting speaker forum to bring in inter-  refers to killing their commanding officer because he
               esting speakers. I was told that there was not a budget   volunteered his unit for dangerous missions). The 1972
               for visiting speakers. However, there was a budget for   presidential election between Nixon and McGovern
               faculty recruiting and since “we were always on the   was also informative to my thinking. While I wasn’t
               lookout for good faculty,” it was suggested that I use   interested in politics very much at the time, I would
               the faculty recruiting budget to bring in visiting speak-  listen to those politicians just prattling on about how
               ers. My first thought was: am I being dishonest and   we’re going to have better schools, better homes, and
               how can my training in management theory and prac-  better  everything.  Listening  to  these  politicians  is
               tice inform my thought process?                     where I got the notion of rewarding dishonesty and
             Question: We know of the challenges you faced in getting   punishing the people who were honest. So, putting all
               the paper published. Could you summarize what these   this together, one morning I actually woke up with a
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