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Michael Sheehan Griffith University, Australia
Keywords: Australia, Bullying, Co-operation, Costs, Legislation, Organizational change, Workplace
Type of Article: Theoretical with application in practice
This article outlines some of the signs indicating bullying in the workplace as a problem within contemporary organisations. Moreover, using evidence from recent Australian Court cases, the article mentions some of the costs organisations may be faced with if they fail to address the problem. Having identified the problem, the article then suggests some solutions including legislative change and development of more co-operative workplaces. Such workplaces would deal with the problem in a problem solving, rather than punitive, framework. Development of people's emotional intelligence skills is suggested as one way to help address the problem within such a framework.
Content Indicators: Readability**, Practice Implications**, Originality**, Research Implications*
Capitalism is in crisis and organisations within capitalist societies are faced with ever changing pressures, such as global competition, consumer demand, technological change, changing labour expectations, environmental awareness, and economic recession (French and Bell, 1995; Halal, 1986; Limerick and Cunnington, 1993). These pressures increasingly demand organisational change (Argyris and Schon, 1996; Burgoyne et al., 1996). Evidence of corporate reaction to the uncertainty produced by these pressures may be seen in the growth of contemporary managerial buzzwords such as flexibility, market orientation, flattening structures, managerial excellence, productivity, quality, retraining, participation and creativity (Hilmer and Donaldson, 1996; Pascale, 1990). Together these terms signify the emergence of a "discourse of restructuring" (McCarthy et al., 1995) which is affecting organisations and the people that work within them. One outcome within the discourse appears to be workplace bullying.
There are two aims for this paper. The first is to address some of the signs indicating workplace bullying. The second is to suggest a possible solution to the problem. By doing so, this paper will contribute to the growing dialogue recognising the debilitating outcomes of workplace bullying, as well as providing ideas and making positive suggestions for overcoming the problem.
The process used to achieve these aims is as follows. A brief analysis of the signs of bullying evident during downsizing and delayering in organisational restructuring is undertaken in the first section. The impact of these processes on managers, management styles and behaviours is also addressed. In the second section of the paper, a series of studies identifying the outcomes of such behaviours, including the effect on the individual and the cost to the organisation, are discussed. The third section of the paper identifies a range of strategies and remedies for dealing with the problem of workplace bullying.
Drawing on the signs and evidence identifying the problem of workplace bullying discussed to this stage, the penultimate section of the paper will suggest a solution to the problem. The solution is centered on the development of skills necessary for more appropriate behaviours in organisations undergoing change. Skills include emotional intelligence and communication skills.
Signs of bullyingIn reaction to the global crises of capitalism and the resulting uncertainty, many organisations have undergone restructuring processes. Such processes include downsizing, or the planned elimination of positions or jobs (Cascio, 1993); and/or delayering, which is the vertical compression of managerial levels of hierarchy (Littler et al., 1994). Moreover, cost-cutting exercises such as downsizing and delayering have become an accepted method of enhancing corporate earnings. Acceptance is reflected in share market responses to corporate decisions regarding restructuring with research findings indicating that stock markets tend to favour companies that downsize (Di Maggio and Powell, 1983; Greengard, 1993).
A number of studies draw attention to the paradoxical rhetoric of restructuring, and the reality of the outcomes (Cascio, 1993; Littler, 1996; McCarthy et al., 1995). The rhetoric of restructuring includes global competitiveness, multi-skilled staff, emotional commitment, and excellence (McCarthy et al., 1995; Sheehan, 1998). The reality is quite different, with a number of outcomes identified.
Outcomes include declining morale and decreased profits (American Management Association survey cited in Filipowski, 1993); decreased productivity and work intensification (McCarthy et al., 1995); and declining commitment, job satisfaction and motivation (Littler, 1996). In many cases costs are not reduced by downsizing because organisations restore positions previously eliminated (Lee Hecht Harrison, 1997), hire replacement staff, or hire back former staff at consultancy rates (Cascio, 1993).
Organisations appear to have developed a culture whereby the achievement of organisational goals justifies the means. In this culture, managers may perceive that they have a mandate to use whatever techniques or behaviour is deemed necessary in the deployment of their human resources. Results of a UK study exploring the incidence of bullying reported that bullying prevails because bullies "know they can get away with it" (UNISON, 1997). When respondents in other studies were asked what they believed was the cause of bullying, responses illustrated the type of culture prevalent in some British workplaces (Archer, 1999; Rayner, 1997; 1998). Within the workplaces studied, bullying was not a surprise. Rather it was something people knew about and were dealing with at work.
Additionally, the process of delayering within organisations has grave consequences for management positions and careers. Delayering results in compression of managerial career structures because of changing spans of control and outsourcing of some functions. Although management jobs may be redesigned, many of the changes are unplanned and lead to greater workloads on managers (Littler et al., 1994). Changes in the balance of staff and line management functions and responsibilities may also occur. For example, industrial relations and human resource management matters are devolved to the workplace level so workers at that level may be empowered. The outcomes of empowerment or the decentralisation of power as a result of delayering however, are unclear (Littler et al., 1994).
Thus downsizing and delayering processes impact on managers from three directions. The first relates to their ability to develop strategically and grow an organisation. The second encompasses their role with other people in the organisation, and the manner in which they now treat their work colleagues. The third concerns their personal career prospects. Outcomes from these changes suggest a second paradoxical relationship in organisational restructuring. This paradox relates to the inappropriate behaviour of managers and the personal outcomes for those managers.
In the struggle for efficiency and profit in turbulent market conditions, organisations do exert pressure on their managers. A survey of management morale and stress conducted by The Institute of Management in the UK provides some indication of the outcome of such pressure. Findings indicate that among other factors, organisational change, including redundancies and the introduction of new technology, increases organisational demands on managers and consequently increases managerial stress (Charlesworth, 1996). These pressures tend to "lower the threshold at which managers, particularly those operating at the limits of their skills competencies, might adopt bullying behaviours - even if involuntarily" (McCarthy, 1996, p. 48).
Reality of bullying - outcomes and costsOver the last five years, an increasing number of bullying incidents occurring in a variety of workplace settings have been reported in Australian and UK media. Such anecdotal evidence alerts us to the problem of workplace bullying. While still in its infancy (Barron, 1998; Dyer, 1998), research into the problem, as evidenced by the articles in this issue, provides some evidence of the nature and extent of the problem. Earlier studies also provide awareness of the problem.
For example, interviewees in McCarthy et al.'s (1995) study reported a wide range of inappropriately coercive behaviours by managers. Behaviours encompassed: sarcasm, threats, verbal abuse, intimidation, bad-mouthing, manipulation, duplicity, assignment to unpleasant jobs, exclusion, isolation, forcing of resignation and (in the odd case) physical violence. These bullying behaviours by managers significantly degraded the health and wellbeing of the great majority of those who experienced the behaviours. Over a quarter of persons who directly experienced such behaviour sought counselling or medical attention, and an equal number took time off work. More than half of the days taken off as a consequence of a bullying incident represented sick leave (McCarthy et al., 1995).
Moreover, bullying behaviours by managers may not only be inappropriate, they may actually work against the stated goals of organisational restructuring. A majority of respondents in McCarthy et al.'s (1995) study describe experiences of managerial behaviours that are incongruent with both the program aims and their perceptions of "good managerial styles". Poor team-building skills, lack of communication and training, a clumsy brutality in implementing programs, power games and work intensification, were commonly stated concerns identified by respondents.
Additionally, a number of other consequences of inappropriate managerial behaviour may be identified. Inappropriate managerial behaviour may result in frustration leading to anti-social behaviour at work (Spector, 1997). Role conflict caused because of unrealistically high expectations may result in lying by employees as they endeavour to cope with ever changing demands (Grover, 1997). Stress is also readily identified as an outcome of inappropriate managerial behaviour (Tombaugh and White, 1990).
Some of the costs of these and similar behaviours have been identified. In the UK, for example, the cost of lost working time and legal fees associated with the impact of workplace bullying has been estimated at £4 billion per annum (Cooper, cited in Whitehead, 1996). In the Scandinavian countries, the need for intervention by personnel officers, personnel consultants, managers of various grades, occupational health staff, and external consultants in an endeavour to overcome the problem have been conservatively estimated at US$30,000-100,000 (Leymann, 1990).
A further outcome identified is psychological abuse in the workplace (Mann, 1996). Indeed, such abuse, the damage caused, and the legal and economic risks to organisations that fail to address the problems are clearly evident. Three recent landmark decisions in Australian courts alert organisations to the possible consequences of abuse in the workplace in the Australian context. It should be noted that at the time of writing this article, the second and third cases mentioned are pending appeal.
In a judgement handed down in December 1996, District Court Chief Judge, Judge Shanahan awarded more than $170,000 (about £59,415 sterling) in respect of damages attributed to the failure of the defendants to exercise due care in managing the working environment (Carter v. Pinewave (1996) 1607 CJDC, cited in Gorman (1997a)). Based on the evidence before him, Judge Shanahan concluded that the plaintiff suffered acute psychological torment from his employers. Thrust into a management position despite lack of managerial experience, and faced with massive company expansion and appalling working conditions, the plaintiff collapsed. He was diagnosed with a depressive disorder that left him incapable of making the most basic decisions and contemplating suicide.
In the second case, an Australian Supreme Court judgement by Judge Arnold awarded almost $550,000 (about £192,225 sterling) in damages to the plaintiff in April 1998. The case concerned the abuse of a sales manager and features coordinator on a north Queensland newspaper by her then manager. While the two initially had a good working relationship, the relationship deteriorated over a three-month period. The plaintiff was subjected to constant and repetitive foul language, abusive language, threats of dismissal and obstruction. The defendant was also alleged to have boasted of being able to reduce women to tears; made false allegations that the plaintiff was planning sexual harassment action against another staff member; and made false accusations of criminal activity against the plaintiff.
The manager was dismissed from the newspaper after the plaintiff had left her employment. The plaintiff sued the owners of the newspaper. She claimed to suffer a psychiatric breakdown because of the abuse from her manager. The judge found that the manager exceeded the parameters of his authority, and agreed the plaintiff suffered a serious permanent psychiatric injury because of the treatment by the manager (Oberhardt, 1998).
The third case involved a prison manager awarded $524,285 (about £183,240 sterling) for psychiatric damage caused by pressures from management practices that caused undue and prolonged stress. In the Supreme Court in Cairns, Justice Stanley Jones found in favour of the plaintiff who took action against the Queensland Corrective Services Commission. Justice Jones heard the plaintiff was appointed to the senior management team for a newly established prison in North Queensland. Changed financial circumstances meant the prison was required to accommodate prisoners beyond what was considered safe operating conditions. As a result of increasing pressure for the prison to accept more prisoners the plaintiff found carrying out his duties more stressful, with his health deteriorating to a state of major depression. The depression affected his coping abilities in the workplace and at home and resulted in periods of sick leave.
While he was on sick leave, a secret review of prison management was conducted by a senior prison official. The review report included damaging impressions of the plaintiff's management style. Furthermore, the report contained allegations of nepotism, particularly in relation to the hiring of family members and fellow Masonic Lodge members to work at the prison. These allegations could not be supported at the hearing before Justice Jones. Moreover Justice Jones suggested that a senior Corrective Services Commission staff member ought to have taken action based on the original allegations in the report. Justice Jones also stated that the secret nature of the report and the commission's failure to discuss openly the allegations with the plaintiff contributed to the development of the plaintiff's psychological condition (Koch, 1998a; 1998b).
Employment relationships conducted in the manner highlighted in the above three cases clearly seriously damage the health of the employee. Additionally, such a relationship has obvious economic, legal, and public relations consequences for the employing organisation. Relationships conducted in the manner suggested by these three cases, destroy or seriously damage the relationship of trust and confidence that ought to exist. It is argued that employment relationships ought to be conducted in a way that treats all workers with respect and dignity. Furthermore, respecting the dignity of an employee, and treating employees accordingly is seen as an employer obligation (Boye and Jones, 1997; Folger, 1993).
The reports mentioned above alert us to the dark side of organisational life. The darkness includes the impact of abusive behaviour on employees, and the economic and legal costs to the organisation. Clearly organisations need to be aware of bullying and abusive behaviours in the workplace, and they need to be able to identify, account for, cost, and resolve conflicts when they first occur.
Towards more appropriate management behaviourResearch evidence shows there is a gap between managerial rhetoric and the reality of organisational restructuring (Hales and Tamangani, 1996; Hampson and Morgan, 1997; McCarthy, 1996; Sheehan, 1998). Such a gap raises the question of whether or not there is a "paradigm shift" in the nature of management, as suggested in the Report of the Industry Task Force on Leadership and Management Skills, otherwise known as the Karpin Report (1995). The report indicated that frontline managers now have extra responsibilities and increased demands placed on them. In turn, they are less able to cope with new demands. Moreover, frontline managers work longer hours, are more stressed and are fearful of losing status. Additionally, they have fewer promotion opportunities and face increased job insecurity. As such there has been a "paradigm shift" in the nature of managerial work (Karpin, 1995).
By contrast there is some doubt about what, if anything, has changed in managerial work activities. A critique of the Karpin (1995) report argues that the report's research findings indicate substantial continuity in the work managers perform. That is, the skills and competencies required of managers have not changed, nor do the problems identified in the Karpin (1995) report necessarily indicate a fundamental break in managerial work (Hampson and Morgan, 1997). Moreover, Hampson and Morgan (1997) conclude that although the extent of managerial work may have changed, it has occurred due to senior management endeavours to increase work effort, increase responsibilities and tighten control, not because of a "paradigm shift" in managerial work.
It may be argued, therefore, that the content of a manager's work may not have changed. Conversely, the processes utilised to fulfil the role do appear to have altered. If transforming front-line managers from a "cop-to coach" (McMahon, 1993) role is to be realised, then the evidence of bullying behaviours needs to be addressed. There is a need for a new, more compassionate, caring, and capable management style. Capable managerial styles create positive experiences during organisational restructuring (McCarthy et al., 1995). Positive experiences include open communication; team building; support, and explanation of role changes. During organisational change, however, open communication can be the first casualty.
The inability to communicate effectively was seen by employees as the primary reason for inappropriate behaviour by managers during restructuring (McCarthy et al., 1995). The reasons for deterioration in communication are fairly predictable. Employees' demand for information increases during periods of organisational turbulence while managements' ability to provide accurate information decreases concurrently (Sligo, 1995). Negative experiences may therefore predominate. Such experiences encompass confusing and ambiguous information from management; authoritarian behaviour; increased conflict; lack of communication; bullying; and vindictiveness (McCarthy et al., 1995).
Managers often find themselves having to confront people with bad news (Kets de Vries and Balazs, 1997). They may be less than effective in the way they impart such information. As identified earlier in this paper, managers may use bullying behaviours because they know such behaviours will go unchallenged. Moreover, managers may resort to bullying behaviours because they have exceeded their skill level and competency.
Solutions to the problemA number of strategies and remedies for dealing with workplace bullying are identified in the literature. One suggested remedy is legislative change (Overall, 1995). Another is legal redress because of the psychiatric damage inflicted (Mullany and Handford, 1993). To date, the Australian court judgements cited earlier in this paper are evidence of the success of legal redress as a strategy.
Legislators, however, have been slow to heed the call. Furthermore, it could be argued that Sex Discrimination legislation, or Health and Safety legislation prevalent in countries such as Australia and the UK ought to be sufficient to ensure bullying behaviours do not occur. Despite the recent court judgements in Australia, the weight of evidence proffered earlier in this paper suggests otherwise.
In discussing the Legislative framework in Queensland, for example, Gorman (1997b) argues that despite various Public Sector Acts and Workplace Health and Safety Acts, and a number of common law cases that suggest precedent, further measures are required, such as a Code of Practice governing conduct in the workplace. While recognising the limitations of suggestions, Gorman argues that a shift of attitude from confrontational to cooperative workplaces is required. Others suggest managers are ethically bound to ensure appropriate standards of conduct (Whitton, 1994). Clearly, both the anecdotal and empirical evidence of a growing and persistent problem suggests that some managers abrogate these responsibilities.
The importance of respect and fostering a more cooperative workplace were evident in suggestions for improving the restructuring process elicited from participants in the McCarthy et al. (1995) study. Other strategies and remedies are also acknowledged. Strategies include job redesign (AFS, 1993) and corporate health programs (Helmer et al., 1995). Additionally, confronting the perpetrator (Adams, 1992; Adams, with Crawford, 1992, Field, 1996); taking a community approach to the problem (Byrne, 1994); and training and accrediting staff to deal with the problem (Crabb, 1995) have been suggested. Humanitarian management, including the empowerment of employees during change processes (Pontioni, 1996) and development of "soft" people skills (Karpin, 1995) such as empathy, trust, and the management of symbols (Limerick and Cunnington, 1993) are also offered.
In my view, the organisation as a whole needs to be aware of the problems of workplace bullying. Organisations then need to confront the bully or bullies within a problem-solving, rather than punitive framework to address the problem. The person identified as a bully ought to be confronted about their behaviour. Second, that person ought to be then offered an opportunity to deal with their behaviour within a framework of skill development. The suggestion assumes that the person confronted will have the cognitive ability to understand the nature of the problem, and the desire to address the problem for the benefit of all. Advising that person of the likely economic and legal risks to the organisation should their behaviour continue may be one avenue to appeal to their better judgement. Again assuming that the person then agrees to skill development as a way of addressing the problem, the development of "soft" people skills (Karpin, 1995) is now suggested as a strategy for solving the problem of workplace bullying.
If, as indicated above, the style of management contributes to bullying behaviours by managers, then it seems reasonable that the acquisition of more appropriate "people" skills may reduce bullying within organisations. Clearly there is a need to adopt a moral stance in regard to organisational restructuring. Such a stance suggests a requirement for managerial self-restraint and compassion (Goleman, 1996). The skills identified as most likely to help deal with the problem of bullying behaviours include communication, conflict resolution, interpersonal relations, leadership, negotiation, stress management, and team-building (McCarthy et al., 1995).
Emotional intelligenceTo these skills I would add the development of personal mastery (Senge, 1992) and emotional intelligence skills (Gardner, 1993; Goleman, 1996; Ryback, 1998; Salovey and Mayer, 1990; Weisinger, 1988) as a way of developing self-restraint and compassion. The development of emotional intelligence skills is important because it is an area that is generally overlooked when skills development programs are designed. And yet research shows that emotions, properly managed, can drive trust, loyalty, and commitment. Many of the greatest productivity gains, innovations, and accomplishments of individuals, teams, and organisations have occurred within such a framework (Cooper, 1997).
Emotional intelligence is a social intelligence that enables people to recognise their own, and other peoples' emotions. Moreover, emotional intelligence enables people to differentiate those emotions, and to make appropriate choices for thinking and action (Cooper and Sawaf, 1997; Mayer and Salovey, 1993). It is an intelligence that may be learned, developed and improved (Perkins, 1994; Sternberg, 1996).
Emotional intelligence may be defined as the ability to use your awareness and sensitivity to discern the feelings underlying interpersonal communication, and to resist the temptation to respond impulsively and thoughtlessly, but instead to act from receptivity, authenticity and candor (Ryback, 1998). At its best, emotional intelligence is about influence without manipulation or abuse of authority. It is about perceiving, learning, relating, innovating, prioritising and acting in ways that take into account and legitimise emotions, rather than relying on logic or intellect or technical analysis alone (Ryback, 1998). Emotional intelligence is the intelligent use of your emotions: you intentionally make your emotions work for you by using them to guide your behaviour and thinking in ways that enhance your results (Weisinger, 1988).
To enable learning, recognition, differentiation, and choice, emotional intelligence may be further defined both intrapersonally and interpersonally. At the intrapersonal level, it is the ability to form an accurate, honest model of oneself and to be able to use that model to operate effectively in life. At the interpersonal level, it is the ability to understand and work with other people (Gardner, 1993; Goleman, 1996; Salovey and Mayer, 1990). Development of emotional intelligence in managers dealing with the demands, rapidity and uncertainty of change may help them become aware of their own needs and the needs of others. Thus managers need to manage process (Salovey and Mayer, 1990) and to have the necessary process skills (Bodi et al., 1997).
For the purposes of this article, process skills are defined as the individual skills necessary for managers in organisations undergoing restructuring to conduct themselves in a way that does not damage the health or wellbeing of other organisational members. The skills necessary for such conduct encompass sensitivity to the needs of the individual; the ability to observe and intervene in group processes, and competence to resolve conflict in a non-threatening and non-defensive way. The definition implies that managers need an appropriate level of individual and group diagnostic skills.
Managers need a range of skills to be effective in their multiple roles. If employees are faced with change as a consequence of organisational restructuring, they need accurate information about the impact of those changes. Furthermore, managers need to have individual and group diagnostic skills (Harrison, 1994) that enable them to observe behaviours and to give accurate information, without interpretation or judgement, when communicating change issues to employees (Dick, 1991; Hart, 1992; Johnson and Johnson, 1994).
Effective communication skills are critical tools for enabling managers to successfully complete these roles. These skills include listening skills, expressive skills and interaction management skills (Dick, 1991; Kaye, 1994). Moreover, managers also need to develop their self-concept. Managers need to be aware of their own behaviour when subjected to change processes if they, in turn, are to assist others in coping with change.
Self-concept is defined as the sum total of how people understand themselves. It includes our ideas, thoughts, feelings, attitudes and beliefs (Cardwell and Dunn, 1986; Taylor et al., 1989) and may be multi-faceted in terms of life roles (Burns, 1993). It may be developed by becoming more aware of who we are as people, that is self-awareness (Bolton, 1986; De Vito, 1993), knowing and monitoring our own feelings as they happen (Salovey and Mayor, 1990) and by developing how we think of ourselves, that is self-esteem (Dick, 1991).
Soft skill development may assist managers to learn to deal with their emotions in more appropriate ways than resorting to bullying behaviours, and to be more attuned to the feelings of others. Additionally, soft skill development strategies may help managers deal with the emotional needs of others empathically, rather than through the use of coercive or bullying behaviours.
Finally, I suggest that we need to challenge the dilemmas posed by organisational restructuring and bullying behaviours by managers, rather than vice versa. By so doing we may eliminate the effects caused by bullying behaviours as outlined in the research and the Australian legal case studies mentioned in this paper. In this way, we may create sustainable organisations in which economic benefits are achieved through care and compassion for the employee, as much as for the owner, banker or shareholder. Individuals, organisations, and the community as a whole will reap the benefits of meeting such a challenge.
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