Does hierarchy improve team performance?
Looking into the psychology of complete freedom vs a hierarchical structure
How do we perform in a hierarchical structure?
Welcome to the 20th issue of Carved! It’s been a while since my last post. As usual, I will put the blame on my 9-5. Not that I’m complaining - like they say, it’s better to be busy than to be quiet. There have been lots of different client projects, and not to mention our annual Summer School. Needless to say, the past month has been pretty full on. But speaking of projects..
I've started noticing a pattern when presenting at work. My presentation skills tend to go out the window when my boss is in the room. I'm normally pretty good - I smile and I try to be natural. But as soon as the big boss steps in, I choke.
If I were to draw a line graph I think it would show a slow yet steady upward trend, but you'd see big troughs along the way when my boss is involved.
I do wonder if this is especially true for me because I am not the most confident person in the world. Do other people experience a similar thing? But perhaps I'm focusing on the wrong thing here. Perhaps it's not just about feeling nervous when your boss is in the room. Perhaps there's a bigger question around the effectiveness of hierarchy in general. Or more importantly, does hierarchy improve, or weaken team effectiveness? And which type of leadership is best?
Hierarchies seem to emerge spontaneously in social interactions, and quickly become self-reinforcing as the order of influence kicks in. The nature of relationships in a hierarchy can be different depending on how it emerges - we've seen cases of more egalitarian hierarchy, but equally we've seen many cases where differences in class and status are over-emphasized.
Hierarchy can create a psychologically rewarding environment
We complain a lot about being stuck in a rat race, but I think part of the reason why we're in this situation is because as human beings we have needs for certainty, power, and achievement. One of the ways we can fulfill these needs is by moving up the career ladder, which as a result gives us a sense of accomplishment. In this case, job promotions act as an incentive. Additionally, the Uncertainty-Identity Theory suggests that the need to reduce identity is so strong that it pushes individuals to categorize themselves as members of a group (Hogg, 2007). This in turn can reinforce the in-group bias, which we read about in this issue of Carved. Interestingly, the organizational identification and commitment that arise have been shown to enhance performance (Riketta, 2002).
The effects of hierarchy on power
Because of the magnitude of influence that hierarchies create, it naturally gives people a sense of power - and power has some interesting effects on us. As it turns out, we like having power. It seems to give us a sense of control and make us more optimistic , increasing our likelihood to take action. As such, it leads us to be more focused on our goals, which is perhaps one of the most important things in keeping someone in a position of power. On the contrary, lacking power makes us more risk averse and makes it more likely for us to fall for illusory pattern perceptions such as superstitions (I'm not entirely sure why this is...).
Leadership styles matter too
If we've accepted the fact that hierarchy can work (and can perhaps be a good thing), then the next thing to think about is what the most effective and best-performing hierarchy should look like. According to a study on democracy and leadership styles, democracy works best when it's accompanied with proactive group management. This means that compared to groups with unlimited freedom (or complete anarchy), and groups with a very strict leadership style, having a leader that puts you in an organized structure can actually help improve your performance and increase productivity.
Democracy with proactive group management is better than unlimited freedom, or complete anarchy. It's also shown to be better than a very strict model of leadership. It seems like despite the appeal that complete freedom carries, our brain still prefers a bit of structure.
What I've been up to
As I'm writing this we're waiting on a long layover in Singapore - something I haven't experienced in a long long time. We got on a plane, and currently in transit to Phuket. What a roller coaster it has been - cancelled plans and covid-related ambiguity - it's been a bit intense but feeling very lucky at the same time that we've been able to travel for work and holiday. It's strange doing this whole traveling thing again - I completely forgot all the protocol. And everything takes extra long now because of all the paperwork you need to present - all the tests, the certificate of entry.. My brain is struggling to function at 100% capacity due to sleep deprivation but still pinching my cheeks that I'm actually on the other side of the planet.
What's on my radar
Magma Bookshop
This place is a heaven for magazine lovers - especially the one in Covent Garden. The whole downstairs is dedicated to magazines and it is amazing. Highly highly recommend - nothing beats the smell of fresh magazines! And of course they have a great selection of magazines, it's not just about the smell I promise.
Minari
Ahhhh this movie. I literally just watched it on the plane, and had no idea what was coming. This is a brilliant movie, with an amazingly real storyline and a charming set of characters. The grandma is the epitome of all Asian grandmas - and I now miss my grandma very very much!
As always, thank you for supporting this little side project of mine and for getting to the end of this week’s newsletter! If you’ve enjoyed this week’s episode, please share with your friends! 😊