Web viewManagerial Behavior Associated with Managerial Derailmentin the U.S. and Nine European Countries. Louis N. Quast. Hellervik/PDI Endowed Chair in Leadership

RUNNING HEAD: Managerial Behavior and Derailment in Nine EU Countries and US

Managerial Behavior Associated with Managerial Derailment

in the U.S. and Nine European Countries

Louis N. QuastHellervik/PDI Endowed Chair in Leadership and Adult Career Development, Department of Organizational Leadership, Policy, and Development, and Research Professor, Department of Educational Psychology College of Education and Human Development University of Minnesota. Room 330 Wulling Hall 86 Pleasant Street S.E., Minneapolis, MN 55455, USA.Email: [email protected]

Joseph M. WohkittelGraduate Research Assistant, Department of Organizational Leadership, Policy, and Development, College of Education and Human Development, University of Minnesota. Room 330 Wulling Hall 86 Pleasant Street S.E., Minneapolis, MN 55455, USA.Email: [email protected]

Bruce A. CenterDirector, Office of Research Consultation and Services, Department of Educational Psychology, College of Education and Human Development, University of Minnesota. Room 357 EdSciB56 E. River Road, Minneapolis, MN 55455, USA.Email: [email protected]

Chu-Ting Chung Research Assistant, Department of Educational Psychology, College of Education and Human Development, University of Minnesota. Room 357 EdSciB56 E. River Road, Minneapolis, MN 55455, USA.Email: [email protected]

Bai VueGraduate Research Assistant, Department of Organizational Leadership, Policy, and Development, College of Education and Human Development, University of Minnesota. Room 330 Wulling Hall 86 Pleasant Street S.E., Minneapolis, MN 55455, USA.Email: [email protected]

RUNNING HEAD: Derailment in Nine E.U. Countries and The U.S. 2

Managerial Behavior Associated with Managerial Derailmentin the U.S. and Six European Countries

Abstract

Business organizations make significant investments in developing their managers. Despite this, some managers fail based on behaviors under their direct control. This phenomenon of ‘managerial derailment’ is costly to both the individuals involved and the organizations that employ them. Organizations attempt to address this through management development initiatives, often including developmental tools such as multisource feedback instruments. This study explores behaviors, as measured using a multisource instrument, that are associated with predicted high risk of managerial career derailment in Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom, and compares those findings with results observed in the United States. The behavioral data sample of 14,752 managers were obtained using The PROFILOR® for Managers, a multisource instrument that collects behavioral ratings from supervisors, peers, and direct reports of participants in leadership and management development programs. This study identified a number of behaviors where low scores were strongly associated with predicted risk of career derailment across many of the countries under consideration, and separate lists of behaviors uniquely associated with predicted risk of derailment for each of the countries in the study.

Keywords

Career derailment, management development, multisource feedback, multi-rater feedback, leadership


1.1Introduction

The term career derailment is used to describe incidents in which managers identified early in their careers as ‘high-potential’ fail to hold their position in an organization, resulting in their being fired, demoted, or placed in a staff job with no advancement opportunity (Lombardo and McCauley 1988). Over the past thirty years, scholars and practitioners have studied career derailment from a variety of perspectives. However, the overwhelming majority of this research was conducted in the United States (Hogan, Hogan, and Kaiser 2009) and the generalizability of the results of this work is unknown. Recent research using multisource feedback to explore managerial career derailment indicate that derailment patterns differ from one country to the next (Quast, Center, Chung, Vue, and Wohkittel 2010). Previous research suggests that managerial career derailment in the U.S. is similar to but different from patterns of derailment observed in European countries (Gentry, Hannum, Ekelund, and de Jong 2007) but these findings tend to be limited in terms of scope and sample size. The present study explores behavioral ratings associated with predicted risk of experiencing managerial career derailment in nine European countries: Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. The behaviors most associated with derailment in these countries are then compared to the behaviors associated with derailment in the United States.

Previous studies have identified managerial career derailment as a pervasive and costly problem in a variety of geographic locations both within and outside the United States (e.g. Gentry, et al. 2007; Gentry, Yip, and Hannum 2010; Leslie and Van Velsor 1996; Quast et al. 2010; Varela, and Premeaux 2008). The costs associated with replacing a manager range from 70-200% of that individual’s annual salary (Flaherty 2005; O'Connell and Kung 2007) and Human Resource Development (HRD) practitioners are tasked with mitigating this problem, preserving careers and sparing organizations the substantial costs associated with a derailed manager. Management development initiatives appropriately focus on behaviors associated with managerial effectiveness. In addition to that historic focus, knowledge of which behaviors are associated with managerial career derailment within and across individual countries would allow HRD practitioners, working globally, to identify managers who are likely to derail and implement developmental strategies to prevent derailment from occurring. However, the existing literature provides little guidance as to which specific behaviors are associated with derailment within a given geographic location outside the United States. The purpose of the study was two-fold: first, to provide epidemiological evidence of the behaviors associated with derailment in European countries in order to inform and augment ongoing HRD and management development practice in a useful way; second, to expand existing derailment research conducted in the U.S. and Asia to include European geographic locations.


The current study extended the work of Quast et al., 2010 to understand the behaviors associated with predicted risk of managerial derailment in nine European countries. Quast, et al. (2010) examined managerial behaviors associated with the predicted risk of derailment in the United States and five Asian countries. This study found both (a) recurring behaviors associated with derailment across multiple countries and (b) unique behaviors associated with derailment within specific individual countries. The research question for this study is:

What are the behaviors associated with high predicted risk of managerial career derailment among managers in nine European countries and the U.S.?

2.1Literature Review

Much of what is known about career derailment stems from research conducted in the United States by McCall and Lombardo (1983) and the Center for Creative Leadership. In this study and the line of research it spawned (e.g. Lombardo and McCauley 1988), executives were interviewed regarding employees who had derailed, resulting in the identification of five broad categories of behavior associated with derailment (e.g. problems with interpersonal relationships; difficulty leading a team). Subsequent research found support for this model across gender (Morrison, White, and Van Velsor 1987) and levels of management (Lombardo, Ruderman, and McCauley 1988). However, a limitation of these clusters is that they cannot be broken down into specific behaviors, making it difficult to observe their occurrence in applied practice. Van Velsor and Leslie (1995) and Leslie and Van Velsor (1996) explored derailment outside the United States in an attempt to find cross-cultural support for the model mentioned above. Their findings suggested executive derailment in European countries was associated with four of the five factors observed in the United States: the inability to develop strong working relationships, the inability to adapt to change, and the inability to build and lead a team. Van Velsor and Leslie (1995) concluded that “the enduring themes in derailment factors… are consistent for both European and American derailers” (p.69). Since these studies, little research has compared behaviors associated with derailment in European countries to derailment behaviors in the U.S. Rather, cross-cultural derailment research has tended to focus on expatriates (e.g. McCall and Hollenbeck, 2002) whereas the present study excludes this demographic.

Using a different approach to derailment, Einarsen, Aasland, and Skogsted (2007) concluded that derailment might be associated with the absence of constructive organizational behaviors and/or the presence of destructive organizational behaviors. The items examined in this study map only the domain of constructive organizational behaviors. As a result, any specific behaviors identified in this study will always appear


as an inverse relationship: low scores on these behaviors are more likely to be associated with career derailment.

Multisource feedback is a common component of management development initiatives (Fleenor, Smither, Atwater, Braddy, and Sturm 2010) and has been used to predict managerial derailment in the United States (Hogan et al. 2009) and other geographic locations including Asia (Quast et al., 2010; Quast, Wohkittel, Chung, and Center 2011) and Europe (Gentry et. al, 2007). However, existing multisource feedback-based derailment research explores neither the behaviors associated with derailment across Europe nor those unique to specific countries. Using large behavioral data samples drawn from nine European countries, this study was able to explore behaviors observed in relationship to predictions of managerial career derailment risk at a more granular level as described here.

3.1 Method

Archival data collected using a multisource feedback instrument were investigated in this study. Responses were collected from 79,410 individuals in managerial roles, as well as their supervisors, peers, and direct reports, as a part of the individuals’ participation in various managerial development initiatives sponsored by their respective employers. This study used only that data collected from the direct supervisors of the participants for all analyses described below. Data collection occurred between 2003 and 2008, and participants signed consent forms allowing their data to be used in aggregate for research.

3.2 Participants

The overall data set from which samples used in this study were drawn consisted of 14,752 managers (expatriates and cases with missing data were removed). The U.S. based sample contained 12,275 participants (83%) and the European sample 2,477 participants (17%). The mean age for the overall sample was 41.7 years. All managers were employed by mid- to large-sized organizations at the time they participated in the multisource feedback process.

3.3 Instrument

The PROFILOR® for Managers (PDI Ninth House 2004) is a well-researched multisource feedback instrument. The PROFILOR® for Managers contains 135 behavioral items rated on a 5-point Likert-type scale. This instrument was used to gather the managerial behavior data used in this study from participants and their


supervisors. The median internal consistency reliabilities were 0.75 for self-ratings and 0.83 for supervisor ratings (Hezlett, Ronnkvist, Holt, and Hazucha 2006).

Individuals’ likelihood of derailing was measured using the following question: what is this person’s risk of experiencing career difficulty due to factors under his/her personal control? This question served as the dependent variable in this study and was answered only by the ratee’s supervisor (PDI Ninth House 2004).

3.4 Procedure

The dependent variable, supervisor’s predictions of participants’ risk of career derailment, was scored using a 5-point Likert-type scale ranging from 1 = little to no risk, 2 = slight risk, 3 = moderate risk, 4 = high risk, 5 = very high risk. Scores of 3 were eliminated because they were considered ambiguous. The remaining scores were dichotomized into (1, 2): unlikely to derail and (4, 5): likely to derail. Previous research suggests that supervisors’ predictions of an individual’s likelihood of experiencing career derailment and the actual occurrence of derailment are generally accurate (Lombardo and McCauley 1988).

The independent variables in this study were the 135 behavioral items in the PROFILOR® for Managers. Logistic regressions were used to determine which independent variables to include in the derailment model for each country. Cases with missing data on any of the variables examined in this study were dropped prior to analyzing the data.

Each model was chosen using a multi-step process. First, stepwise logistic regressions were applied separately to the U.S. and the nine European countries combined, choosing the best non-spurious predictors for the U.S. and for Europe. Overall, all the PROFILOR® behaviors were negatively correlated with risk of derailment. It is the absence of these ‘constructive’ behaviors that was associated with increased prediction of managerial career derailment risk. When conducting the stepwise logistic regressions, any predictor behavior showing a positive coefficient was deemed spurious and eliminated from further consideration.

Second, the career derailment variable was regressed onto the 135 behavioral items from the PROFILOR®. Forward stepwise logistic regressions were run separately for each country. Finally, stepwise regressions were run in stages to identify unique behaviors associated with derailment for each of the nine European countries and the U.S.

Overall, there is a moderate level of correlation among all the behavioral variables in this study (r = .37). This is to be expected, as each variable is drawn from


the same general domain of effective managerial behaviors. In order to obtain a model that was both highly predictive and parsimonious, this multi-step process was used to reduce the set of possible independent variables from 135 behaviors to sets of 11 behaviors for step one and 31 behaviors for step two of the analysis.

4.1 Results

The results of this study revealed that there were parsimonious lists of behaviors associated with high risk of managerial career derailment in all of the countries examined (see Table 1). Nagelkerke’s Pseudo R2 suggested that the behaviors identified for those countries are useful indicators of risk of derailment. It is important to note that in all cases, low ratings from supervisors on these behaviors were positively correlated with predicted risk of derailment.

Table 1. Managerial behaviors associated with derailment and pseudo R2 by country (Note: Low ratings of these behaviors are associated with high prediction of derailment.)

Country Pseudo R2 Predictor Behaviors (p < .05)

Belgiumn=211

0.510 Develops effective working relationships with peers Works constructively under stress and pressure* Conveys trust in people's competence to do their jobs* Knows when to supervise and coach people and when to leave them

on their own*

Francen=274

0.494 Has the confidence and trust of others Empowers others with the authority necessary to accomplish their

objectives* Prepares realistic estimates of budget, staff, and other resources* Identifies specific action steps and accountabilities*

Germanyn=366

0.274 Creates an environment where people work their best Drives hard on the right issues Treats people with respect*

Italyn=121

0.421 Has the confidence and trust of others Demonstrates awareness of own strengths and weaknesses

Netherlandsn=146

0.433 Has the confidence and trust of others Adapts behavior in response to feedback and experience Addresses and works to resolve conflict*


Spainn=111

0.678 Demonstrates awareness of own strengths and weaknesses Drives hard on the right issues

Swedenn=174

0.812 Creates an environment where people work their best Expresses disagreement tactfully and sensitively Coordinates work with other groups* Links the team's mission to that of the broader organization*

Switzerlandn=75

0.806 Has the confidence and trust of others

United Kingdomn=999

0.393 Has the confidence and trust of others Develops effective working relationships with higher management Adapts behavior in response to feedback and experience Analyzes problems from different points of view* Sets up needed systems and structures to support changes* Coaches others in the development of their skills*

United Statesn=12,275

0.473 Creates an environment where people work their best Expresses disagreement tactfully and sensitively Develops effective working relationships with peers Has the confidence and trust of others Demonstrates awareness of own strengths and weaknesses Develops effective working relationships with higher management Adapts behavior in response to feedback and experience

* denotes behaviors unique to individual country

Overall, there were eight behaviors identified where low ratings were associated with derailment in more than one country. These behaviors were referred to as recurring behaviors. First, creates an environment where people work their best was noted in Germany, Sweden, and the United States. Second, expresses disagreement tactfully and sensitively was noted in Sweden and the United States. Third, develops effective working relationships with peers was noted in Belgium, and the United States. Fourth, has the trust and confidence of others, the behavior found most frequently across the countries in this study, was noted in France, Italy, the Netherlands, Switzerland, the United Kingdom, and The United States. Fifth, demonstrates awareness of own strengths and weaknesses was noted in Italy, Spain, and the United States. Sixth, develops effective working relationships with higher management was noted in the United Kingdom and the United States. Seventh, adapts behavior in response to feedback given, was noted in the Netherlands, the United Kingdom, and The United States. The eighth and last recurring behavior noted was drives hard on the


right issues. This behavior was noted in Germany and Spain only. It was the only recurring behavior that was not a significant predictor of derailment risk in the United States.

Other behaviors were identified that were associated with derailment in only one country. These behaviors were referred to as unique behaviors. The greatest numbers of unique behaviors were noted in Belgium, France, and the United Kingdom respectively. In Belgium, unique the behaviors noted were: works constructively under stress and pressure; conveys trust in people's competence to do their jobs; and knows when to supervise and coach people and when to leave them on their own. In France, the unique behaviors noted were: empowers others with the authority necessary to accomplish their objectives; prepares realistic estimates of budget, staff, and other resources; and identifies specific action steps and accountabilities. In The United Kingdom, the unique behaviors noted were: analyzes problems from different points of view; sets up needed systems and structures to support changes: and coaches others in the development of their skills.

Two unique behaviors were noted in Sweden: coordinates work with other groups; and links the team's mission to that of the broader organization. One unique behavior was noted in Germany: treats people with respect. One unique behavior was also noted in the Netherlands: addresses and works to resolve conflict.

The strength of the relationship between low ratings on the behaviors listed and predicted risk of derailment varied by country. The strongest relationship noted was in Sweden (R2 = .812). The weakest relationship noted was in Germany (R2 = .274). The relationship between the behaviors and predicted derailment in other countries examined in this study were as follows: Belgium (R2 = .510), France (R2 = .494), Italy, (R2 = .421), the Netherlands (R2 = .433), Spain, (R2 = .678), Switzerland, (R2 = .806), the United Kingdom (R2 = .393), and the United States (R2 = .473). It should be noted that high Pseudo R2 values observed in countries where a somewhat lower sample size was obtained (e.g. Switzerland) may reflect a lack of variance in the dependent variable.

The frequency distribution of the dichotomized dependent variable (risk of experiencing career derailment) is given in Table 2 below.

Table 2. Derailment risk (Low, High) x Country Country Low risk (n) High risk (n)Belgium 318 (93%) 24 (7%)France 390 (90%) 45 (10%)Germany 547 (91%) 55 (9%)


Italy 160 (81%) 38 (19%)Netherlands 204 (89%) 26 (11%)Spain 137 (95%) 7 (5%)Sweden 226 (95%) 12 (5%)Switzerland 132 (85%) 23 (15%)United Kingdom 1363(91%) 137 (9%)United States 15,423 (92%) 1359 (8%)Total 18,900 (92%) 1726 (8%)

First, it should be noted that the sample sizes listed in table 2 are larger than those listed in table 2. This is because all cases are considered in table 2, whereas cases with missing data were removed for the analyses that produced table 1. That stated, the mean frequency of being rated as at risk for career derailment was 8%, the same frequency observed in the United States. This is not surprising since data from the U.S. comprises 80% of the overall sample. Managers in Italy (19%) and Switzerland (15%) were more likely to be seen more at-risk for career derailment than managers in the other explored countries. Managers in Spain (5%) and Sweden (5%) were less likely to be seen as at-risk for career derailment than managers in the other explored countries.

5.1 Discussion

Consistent with Quast et al. (2010), this study identified a parsimonious set of behaviors from the PROFILOR® for Managers in nine European countries and the U.S. In each case, low ratings on behaviors associated with managerial effectiveness were associated with predictions of high risk of career derailment. There were several recurring behaviors associated with high derailment risk in multiple countries as well as unique behaviors associated with derailment only in one country. The Nagelkerke’s Pseudo R2 value for each country indicates the strength of the relationship between the behaviors listed and predicted risk of derailment. Although there is some variability in the size of the R2 values obtained across countries, each is sufficient to suggest that the behaviors identified in each country examined are useful in predicting risk of managerial derailment within that country, and thus may have prescriptive utility in designing management development and coaching interventions for managers working in each of the countries studied here.

Several general patterns were noted among the behaviors associated with derailment across the countries explored in this study. First, in each country, low scores on behaviors associated with interpersonal relationships were associated with predicted derailment risk (e.g. has the trust confidence and trust of others, develops effective working relationships with peers and/or higher management). This observation is


consistent with the bulk of previous U.S.-based derailment research (e.g. McCall and Lombardo 1983) and research on derailment in Asia (Quast et al. 2010). In fact, has the trust confidence and trust of others was the only significant predictor of derailment in Switzerland and explained 80.6% of the variance in derailment risk. Part of this relationship may be attributed to the comparatively small sample size for Switzerland (n=75), yet the relationship is still noteworthy when considered in light of patterns observed across a number of countries. Second, low self-awareness and low self-insight seem to be associated with increased risk of derailment as demonstrates awareness of own strengths and weaknesses and adapts behavior in response to feedback were both reoccurring behaviors. This is consistent with emerging research on career derailment (Lee, 2012; Quast, Center, Chung, Wohkittel, and Vue 2011). Additionally, task-oriented behaviors, such as drives hard on the right issues were noted in some countries (e.g. Belgium and Germany) but not others (e.g. Italy and the United States).

Interpreting patterns within the lists for each country was more difficult. For example, the R2 value observed in Germany (.274) was relatively low despite a comparatively modest sample size and the presence of three significant predictor behaviors. The data suggest that geographical differences in derailment do exist. However, the archival data used in this study do not tell us why these differences exist. It is reasonable to suspect that cultural factors may explain part of these differences, but this assumption could not be tested using the data available for this study.

5.2 Limitations of this study

Several factors imposed limitations on this study. The first of these was the use of archival data, which limited the nature of questions which could be asked. Second, multicollinearity among the independent variables and a large number of independent variables necessitated the use of a logistic regression procedure that is less stable than linear regression. However, this procedure produced results that are statistically significant, meaningful, and useful whereas linear regression would have been less fruitful in producing results with the aforementioned properties. Third, the sample size available for some countries was less than desirable given the large number of independent variables. Results obtained in countries with low sample sizes, specifically Italy, Spain, and Switzerland may be less reliable than those obtained for the other countries. Finally, almost all individuals whose data were examined in this study were employed by mid- to large-sized organizations. The conclusions reached in this study may provide generalizable guidance for other organizations of similar size. As for small organizations and start-ups, at this time there is no evidence that these data provide any guidance whatsoever.


5.3 Future Directions

This study suggests that future research on managerial career derailment is needed in several areas. Attempts should be made to explore connections between culture, behavior, and career derailment. Cultural influences on derailment should be explored at both the organization and geographic/national level. Additionally, practitioners would benefit from studies designed to test the efficacy of derailment prevention interventions designed to target and improve the behaviors identified in this study. Furthermore, additional research is needed exploring derailment in regions that have previously received little attention such as Africa, the Middle East, Oceana, and South America.

5.4 Conclusions

This study informs Human Resource Development (HRD) and management development practices in mid- to large-sized organizations. In addition to management-development strategies built around competencies associated with success, HRD professionals may be well served to use the results of this study to help their clients identify and develop those behaviors where low ratings are associated with risk of career derailment. This will assist both managers and organizations to avoid costly and painful derailment consequences.


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Web viewManagerial Behavior Associated with Managerial Derailmentin the U.S. and Nine European Countries. Louis N. Quast. Hellervik/PDI Endowed Chair in Leadership