"if doctors practiced medicine like many companies practice management, there would be more unnecessarily sick or dead patients and more doctors in jail or suffering penalties for malpractice" (Pfeffer & Sutton, Harvard Business Review).
Some of the biggest challenges organisations face concern their workforce or the work environment. The knowledge which ignites innovations, new processes, creative ideas etc. lies in people. These benefits are realised only if management understand and appropriately nurture people and a healthy work environment. The skills and attitudes required to change and adapt to this complex work environment lies, in part, in people. There are numerous companies that failed not because they did not hit performance targets but because they did not adapt. The success of organisations is dependent on the behaviour of people. Mis-managed dysfunctional behaviour causes organisational ‘ill-health’ such as in ENRON and the banking industry.
The impact of academic research in practice
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Academic research in the areas of organisational behaviour and human resource management at DCU Business School, illustrates how to improve organisational health - the driver of organisational effectiveness. For example, research on performance goal-setting identified "that specific goals and performance feedback leads to higher performance than general 'do your best' goals". This rule is now central to effective performance management systems in organisations. We know, due to research 'evidence' that this rule works. On the other hand, there are popular opinions, guided by reports and books by celebrity authors or firms, which infiltrate practice but there is limited 'evidence' that they work. For example, there is limited 'evidence' that the use of equity incentives such as stock options improves organisational financial performance, yet they were popular. There is research 'evidence' that unstructured employment interviews are unreliable, however they prevail in organisations for recruitment and selection. Many organisations use performance management systems which focus on individual performance while at the same time asking the workforce to work as a team- two competing and ultimately damaging practices for the work environment.
What is evidence-based management?
We know that academic management research can inform and positively impact management practice. However this research 'evidence' is frequently not used by managers. Executive MBA participants at DCU are taught how to source and use academic research 'evidence' to make better decisions. The DCU Executive MBA develops 'evidence-based' managers. Evidence-based managers use a combination of scientific data, organisational data, logic and experience to determine what works (or doesn't), in order to make informed decisions and manage more effectively.
Why should organisations engage with evidence-based management?
For better decision-making, organisations need to engage in more 'evidence-based' management and increase academic-practitioner engagement. This vision is not unrealistic. While the practice of evidence-based management is limited, the practice of evidence-based medicine has long existed. Criticisms of the health sector aside, evidence-based medicine is about doctors using the best and latest knowledge on what works or cures your illness. Medical professionals' training requires that they use research to inform their practice. However, the same is not true of managers- they frequently have limited research training. Shouldn't managers who want to nurture healthy human behaviour and cure organisational illness, also use the best and latest knowledge about that illness?
To realise this vision, academics need to engage more in research on industry relevant problems. Though this research is published in academic journals, it is rarely accessed by managers. Universities need to present the results of such research in more practitioner-oriented fora and clearly outline what the research suggests for practice.
What do managers need from researchers?
Management Practitioners need to use 'evidence' rather than 'gut-feeling' and 'opinion' to inform their decision-making. Business and HR functions increasingly need to use 'big' data and data analytics to justify decisions and demonstrate the impact on the 'bottom line'. HR researchers have long been collating data from multiple organisations and using data analytics to investigate industry problems, causes and effects. Operational-focused managers may only have time to review internal data and opinion. Thus, managers require:
1) education and training on how to source and use the best academic research,
2) training on data analytics, and
3) they need to engage with academic researchers to do research in their organisations.
Use of internal data coupled with external research ‘evidence’ and consideration of the specific contextual circumstances of a company drives improved decision-making.
Dr. Claire Gubbins is a Director of DCU's Executive MBA Programme and a Senior Lecturer in Organisational Behaviour and HRM. Her work focuses on organisational learning, tacit knowledge management, social networks, trust and evidence-based teaching. Email: claire.gubbins@dcu.ie.