Published on: April 2, 2025
By Daniel Butcher
As generative AI’s usage continues to grow rapidly, critics point out that OpenAI’s ChatGPT fabricates sources, including citations, journal names, and articles, that sound legitimate and scholarly, but are often made up. Sometimes, it doesn’t attribute direct quotes to the person who said or wrote them. Other generative AI platforms have been accused of plagiarism or failing to properly cite sources or even producing “hallucinations” that fill information gaps with inaccurate statements or outputs. Still, these may be more growing pains rather than chronic illnesses.
That’s according to Academy of Management Scholar Herman Aguinis of the George Washington University School of Business, who said that every new technology presents ethical challenges in producing and using it. Problems arose in the early days of the Internet, too. He noted that generative AI platforms such as ChatGPT have largely corrected the issue of hallucinations.
“You can Google something and copy and paste something from the search results, but plagiarism has been around for a long time…you could grab a paper book from the library and copy a whole paragraph from it,” Aguinis said. “AI is making these possibilities and the potential for cheating in these ways much easier and more straightforward.
“ChatGPT 3.0 was doing that, but the GPT-4o version not only gives you the right source name but also a quote or sentence from the source—it is absolutely incredible, and that’s going to get even better,” he said.
As for using generative AI in the workplace, Aguinis believes that leaders have to create sensible policies.
“One sensible general blanket policy that applies across industries, jobs, and tasks is to openly and honestly describe exactly how you use AI for your specific task, essentially, user beware,” Aguinis said. “It’s really important to offer an explanation, qualification, or warning of how you used AI.
“Second, the issue of AI output verification is absolutely key—you should verify the accuracy and appropriateness of the information that you received through ChatGPT,” he said. “Those are the guardrails, and while this is evolving, and we’re immersed in it, people shouldn’t be too scared about it, because every time we lived through those technological advancements, there were all these alarms going off that there’s going to be all kinds of problems.
“Every technology can be used, abused, and misused, so there’s nothing new about AI—we need to think about verifying the information and being open and honest about how we use it.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Everyone Will Suffer in the Wake of Trump Administration’s Research Cuts
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By Paul Friedman
This year, the Trump administration has fired many government researchers, canceled scientific and medical research grants, and targeted leading universities, including Harvard, with debilitating funding freezes. Fear of reprisal has caused many scientists, doctors, professors, and university administrators to opt for silence instead of speaking up to defend the research that is getting the ax.
Academy of Management (AOM) Scholar Peter Bamberger of Tel Aviv University says much of the research produced by him and his colleagues, including many AOM members, has a day-to-day impact on industry practitioners, including organizational leaders and managers. Cuts in federal funding for research will have a negative impact on industry, as well as researchers, colleges and universities, and other research institutions.
“What we publish in our primary journals have to be both theoretically important and have practical relevance,” Bamberger said. “It’s got to be interesting from a theoretical perspective and intellectual perspective, and it’s got to have some sort of surprising element—going against conventional wisdom—but it also has to translate that surprising finding into something that managers can do something about.
“And there are thousands of organizational consultants who read the findings published in our journals and then translate that into actual practice in organizations,” he said.
Bamberger points out that a great deal of research is specifically aimed at examining current practices by managers and their efficacy. Recently, he published a study of the managerial approach called design thinking, which focuses on understanding clients’ needs and designing innovative solutions.
“Design thinking has been around for about 10 years,” Bamberger said. “It’s an approach to create more innovative ways of boosting learning and finding innovative solutions to common problems or sometimes even really wicked problems.
“It became a fad and a lot of organizations adopted it, but no one ever bothered to actually assess whether or not it has an impact and whether this impact is any greater than other types of learning-oriented interventions, like team building,” he said.
Bamberger and research colleagues designed a field experiment to test the impact of design thinking as a team learning intervention. They compared over time what happens in terms of the efficiency and productivity of teams using different interventions.
“Is design thinking more efficacious than an alternative?” Bamberger said. “And we found out that in fact it is, and we actually demonstrate the mechanism by which it operates and why it’s more effective than other mechanisms.
“So these types of practical implications are useful to managers and to the extent that we don’t have funding necessary to do this type of research, everybody suffers,” he said.
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Paul Friedman is a journalist who worked for 45 years at the three major news networks. He began as a writer and reporter and then became a producer of major news broadcasts, including Nightly News and the Today show at NBC, and World News Tonight with Peter Jennings at ABC. He also served as Executive VicePresident of News at ABC and CBS. Later, he taught journalism as a professor at Columbia University, New York University, and Quinnipiac University. Friedman is now semi-retired and lives with his wife in Florida.
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Trump Administration Policies Have Chilling Effects on Academia
Harvard Yard in the winter. Source: Shutterstock
By Paul Friedman
Tighter enforcement of immigration regulations and cuts in research grants under the Trump administration are having negative impacts on academic work in general and on not-for-profit professional associations, including the Academy of Management, in particular.
Academy of Management (AOM) Scholar Peter Bamberger of Tel Aviv University, the president of AOM, says you can see it clearly in the run-up to the AOM’s annual meeting in Copenhagen. Among other issues, there is concern about how the visas of foreign students are being treated by authorities such as U.S. Immigration and Customs Enforcement (ICE).
“A good number of the research papers that have been accepted for presentation come from doctoral students from the United States; many of the doctoral students in the United States are foreign doctoral students; and some of the foreign doctoral students in management in the U.S. are considering the potential costs of leaving the U.S. to present their paper,” Bamberger said.
“We are concerned that some of these foreign Ph.D. students, rather than taking that risk, may opt to stay at their offices in the USA and not present their research, which would obviously be deleterious to our science,” he said.
“It would be very unfortunate if innovative papers and important findings are not presented at the 2025 conference because foreign U.S.-based scholars are concerned about the validity of their visas.”
Bamberger said he doesn’t know any AOM members whose students have been deported, but he does know that some AOM scholars are among those being hit by cuts in federal funding for research.
“Those individuals who had grant money to study diversity, equity, and inclusion—that’s all gone,” Bamberger said. “Those individuals don’t have the grants anymore and as a result, the research stops.
“Now, it’s the right of a government to determine how it wants to allocate funding for research, so I can’t necessarily say that this is something that’s undemocratic or unfair,” he said. “That was the result of the election, but it is having a problematic effect.”
Bamberger said he sees an ironic example of how cuts in research can have unexpected results.
“A lot of that research on DEI is not necessarily pro-DEI,” he said. “For example, my own research on gender and racial pay equity suggests that contemporary policies oriented towards enhancing the equity have significant unintended negative consequences, including compensation compression.
“So when you cut off the funding for all research that mentions certain keywords assumed to be related to DEI, you’re cutting off the funding of people doing research that indicates problems with DEI policy, as well as perhaps supporting policies that may be favored by certain politicians.”
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Paul Friedman is a journalist who worked for 45 years at the three major news networks. He began as a writer and reporter and then became a producer of major news broadcasts, including Nightly News and the Today show at NBC, and World News Tonight with Peter Jennings at ABC. He also served as Executive VicePresident of News at ABC and CBS. Later, he taught journalism as a professor at Columbia University, New York University, and Quinnipiac University. Friedman is now semi-retired and lives with his wife in Florida.
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AI Is a Tool to Boost Efficiency, Not to Reduce Headcount
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By Paul Friedman
Artificial intelligence is often seen as a threat to employment, but it can be used to preserve jobs in times of uncertainty such as the current one when many economists are sounding the alarm about a looming recession.
Academy of Management Scholar Peter Bamberger of Tel Aviv University said AI can be used to help businesses maintain skilled workforces when they may have to find ways to cut costs.
“What kind of jobs may disappear? What kinds of skills will you still need? What skills can we do without? There’s uncertainty there,” Bamberger said. “Perhaps you want to take that workforce and upgrade them over time.
“You have to know where your business is going and have a good sense as to what kinds of competencies you need,” he said. “There are clearly benefits to retaining your workforce as long as you can afford to train them to augment the AI and enhance its value.
“Increasingly organizations are doing this and using AI in this process.”
Bamberger said AI is now allowing organizations to better understand how to leverage and develop the talent in their workforce.
“Often we refer to something called the talent marketplace, something that organizations probably should have been doing decades ago, which is keeping inventories of their workforce’s competencies and skills,” Bamberger said. “AI is enhancing the ability of organizations to leverage the workforce they have in place by moving people around on short-term internal gigs in organizations and getting them prepared for positions that might open up in the future.
“These are systems that help organizations enhance the competency level of their workforce and limit the need to necessarily turn to the external labor market to secure the talent they need, which can be quite expensive,” he said.
“Ultimately it may offer a far more economical way to maximize the return from investments in human capital.”
There’s also a benefit of AI to employees, according to Bamberger.
“AI—having an understanding of the individual’s background and experiences and skills and competencies—can search through a wide range of projects that may require a month or two of work and then propose those to an employee during that individual’s slack time that they take on this additional project,” he said.
“And if they do enough of these projects over the course of two or three years, they’re going to be set to fill these new roles that they’re interested in doing and the organization needs them to fill.”
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Paul Friedman is a journalist who worked for 45 years at the three major news networks. He began as a writer and reporter and then became a producer of major news broadcasts, including Nightly News and the Today show at NBC, and World News Tonight with Peter Jennings at ABC. He also served as Executive VicePresident of News at ABC and CBS. Later, he taught journalism as a professor at Columbia University, New York University, and Quinnipiac University. Friedman is now semi-retired and lives with his wife in Florida.
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Eight Tips for More Effective Generative AI Prompts
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By Daniel Butcher
Academy of Management Scholar Herman Aguinis of the George Washington University School of Business, one of the most influential management professors and researchers, said creating prompts is the key to using ChatGPT and other generative-AI software effectively. When users input prompts that lack specificity and crucial contextual information, generative-AI platforms generate too many, too few, or vague recommendations and results that aren’t useful.
The following guidelines were designed by Aguinis and coauthors Jose Beltran of Rutgers University and Amando Cope of the George Washington University to give leaders tools to improve their ability to write AI prompts and generate more precise, relevant responses:
Source: “How to use generative AI as a human resource management assistant,” Organizational Dynamics, Vol. 53, Issue 1, January–March 2024, https://doi.org/10.1016/j.orgdyn.2024.101029
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Two Creators Working Together Are Better Than One
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By Daniel Butcher
There are many examples of creative and productive partners, including John Lennon and Paul McCartney, the Coen brothers, Warren Buffett and Charlie Munger, Steve Jobs and Steve Wozniak, William Procter and James Gamble, Bill Hewlett and Dave Packard; the list goes on and on.
Academy of Management Scholar Bess Rouse of Boston College said that people who create together engage in intimate creative interactions that lead to a shared interpersonal boundary—“I created it” becomes “We created it.” This shared interpersonal boundary influences creativity by forming a closed, safe space in which duos can explore divergent ideas and navigate creative blocks.
“We know a lot about team creativity, and we know a lot about individual creativity, and one of the things I was really interested in exploring is this idea of two people working together and the balance that happens in that space,” Rouse said. “You look at a lot of successful, creative people in the world, and they’re often working in pairs, and it’s either a very explicit pair or a well-known person who works with a shadow person.
“It might be a husband and wife, or it might be a more dominant person and a secondary person who are working together,” she said. “That creative space is really special, because you can challenge that person and they’re trusted, and it’s in this bounded space where you develop the sense of a shared interpersonal boundary, where you feel very connected to this other person, and so they’re able to challenge each other and get some of the benefits of having an outsider voice.
“Yet the trust and the support are built into the relationship as well, and that seems to be a really powerful dynamic for developing really high-quality creativity and sustaining it over time.”
An example that Rouse cited in an Academy of Management Review article is from Michael Lewis’s book, The Undoing Project: A Friendship That Changed Our Minds, on social psychologists Daniel Kahneman and Amos Tversky.
“They were social psychologists very well known for doing their work together, and Lewis does a really good job of fleshing out the sorts of tensions in that kind of relationship, but they’re also a very powerful example of two people collaborating and working together successfully and bringing out the best in each other over time,” Rouse said.
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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The “Lone Genius” Myth Overshadows One of the Partners
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By Daniel Butcher
Professional creative partners—such as Lennon and McCartney, Rodgers and Hammerstein, the Coen brothers, and Jerry Seinfeld and Larry David provide evidence that the pair is the primary creative unit. But countless examples show when one of a pair gets more credit than the other—think Duke Ellington and Billy Strayhorn, Dave Chappelle and Neil Brennan, Simon and Garfunkel, as well as whoever was the wind beneath Bette Midler’s wings.
Academy of Management Scholar Bess Rouse of Boston College said that many organizational stories feature duos who create together:
• Steve Jobs and Steve Wozniak propelled the personal computer revolution.
• Sergey Brin and Larry Page provided new ways to find information through Google.
• Ben Cohen and Jerry Greenfield shifted our expectations about ice cream with flavors such as Cherry Garcia and Phish Food.
Such creative pairs often start their own companies, but when they work within organizations, they change them.
“We have this very this myth of the lone genius—this is woven through the creativity literature where we really want to assign credit to one person,” Rouse said. “This idea can be very rupturing to a creative dyad, if somebody’s trying to assign more credit to one than the other or saying, ‘This is really that one person’s idea—that other person didn’t do very much.’
“Our societal and organizational incentives—both financial rewards and recognition—are generally not aligned well with this idea that we actually do creativity as a very social process,” she said. “It isn’t just in entertainment and business; also in medical fields, an important question is, ‘Who came up with what discovery?’ and we’ve gotten a little looser on attribution of credit, being able to say, ‘This team of people came up with this discovery,’ but often you will hear people still continue to pick apart who did what and say, ‘That was really this one person’s idea, and this other person was just helpful.’
“I don’t think we’ve figured out a very good way of rewarding or acknowledging the power that happens in a group or particularly in a dyad around creativity—we still really want to assign ownership or credit to one person.”
In some cases, different personality types determine which half of a duo is more celebrated by the media.
“You definitely see these examples where there’s one person in a duo who becomes a media darling, and sometimes this is by choice, when one person likes being in the spotlight more than another person, and they’re willing to fly under the radar, like Steve Jobs and Steve Wozniak,” Rouse said.
“You can think about social dynamics there, and in some situations, one person loves being in front of the camera and getting those kinds of accolades, and another person would prefer to be in the background,” she said.
“But sometimes it isn’t an individual choice—that is, there are other factors that come into play that shape who we pay attention to.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Taming Toxic Workplaces
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By Daniel Butcher
If you work for a bad boss at a dysfunctional or toxic organization, you can either find a new job or learn to cope with stressful conditions. But if you can get middle managers on your side, then you might even be able to start changing the toxic culture.
Academy of Management Scholar Bess Rouse of Boston College, who coauthored an Academy of Management Journal article with William Kahn of Boston University on this topic, said that toxicity appears in organizations as intolerance, bullying, narcissism, and other forms of destructiveness that demoralize employees and undermine organizational success. Senior leaders often perpetrate toxicity or fail to stem destructive behaviors.
“How do the people working underneath these intolerant, narcissistic, or destructive leaders respond in these toxic situations?” Rouse said. “It isn’t uncommon for me to talk to somebody who feels like they have one of these toxic leaders that they’re working under, but they don’t always have an idea of how to handle it.
“One option is to just leave, but we don’t always have that option to just leave, so then we think about, ‘How do we want to be? What kind of middle manager, if we’re in that position, do we want to be?” she said. “Do we want to be somebody who protects ourselves and has that toxicity cascade down the organization, or do we want to be somebody who buffers our employees and makes them feel protected?
“There are different ways of thinking about coping with a toxic workplace; we talk about this as workarounds for how you think about responding to those toxic leaders.”
Toxic organizations drain workers’ personal agency, undermining their capacity to act independently and make choices.
“Leaders’ toxic behaviors such as intolerance, bullying, narcissism, and destructiveness are all red flags, and we can be good leaders without having those behaviors,” Rouse said. “What we saw in that study was that these weren’t bad people—they were driven by anxiety about a lot of external challenges that were happening in the organization, and they just managed that anxiety by belittling other people and diminishing them.
“Obviously it wasn’t the most effective way, but that was their way of dealing with that pressure, and then we also found that that stayed in place because the senior team colluded around that, essentially, and no one stepped up and said, ‘We can’t keep behaving this way,’” she said. “It was actually the middle managers, those people who were better at shifting from absorption to differentiating among team members, which ended up challenging that structure in that type of toxic organization.
“Especially when that that top leadership team has become very insular and supporting of one another in a way that there are no new voices coming into that senior team, then the middle managers are left to have to do that that work of changing the toxic organizational culture.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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How Teams Achieve the Coveted State of “Group Flow”
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By Daniel Butcher
Too often, teams in sports, music, and business fail to gel for many reasons. Sometimes, though, teams achieve “group flow,” when interactions seem effortless, and team members contribute ideas and complete tasks in synchrony to reach peak levels of collaborative performance.
Academy of Management Scholar Bess Rouse of Boston College said that team members contributing swiftly and additively—extending a prior contribution, is crucial for creating a sense of momentum. Increasing momentum, in turn, influences changes in emotions, thought processes, and behavior that result in group flow.
“The delicacy of group flow makes it very hard to maintain,” Rouse said. “When we’re theorizing about it, we’re really careful about this idea of coming in and out of group flow, and that it is very hard to sustain over time.
“When you’re thinking about it in the context of a group at work, in particular, it’s helpful to think about things like, ‘How do we focus our attention on each other and keep that momentum going?’—so you could imagine that a lot of interruptions are problematic in that sense,” she said.
“If somebody is interrupting you, or you don’t have dedicated space, it’s going to be very hard to get into that sense of group flow.”
Rouse and her research colleagues theorize that a lot of the factors that contribute to good group functioning, such as feeling comfortable in the workplace and feeling trust from senior management and colleagues, help get individuals and, by extension, teams in that flow.
“When we think about this state of flow at the group level versus the individual level, the idea that this is something like improv is instructive—responding to a team member by saying ‘yes, and…’ contributes to the idea that you’re building on each other,” Rouse said. “You actually want to be there for that purpose, and you want to build on other team members’ ideas.
“And this can be difficult in the context of organizations, because we have political motivations; we have our own agendas,” she said. “We have different things we’re doing at work that hopefully are related to the work assignments or objectives but may be actually getting in the way of you feeling that necessary trust and willingness to build on other people’s ideas.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Why Some People with Mental Disorders Thrive as Entrepreneurs
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By Daniel Butcher
Symptoms and traits associated with certain mental disorders, including attention deficit/hyperactivity disorder (ADHD), bipolar disorder, dyslexia, and autism, may help entrepreneurs and other businesspeople succeed, noted Academy of Management Scholar Dean Shepherd of the University of Notre Dame.
Shepherd said that conditions that might be seen as a negative, particularly in employment, can sometimes be an advantage in entrepreneurship.
“Some mental disorders are perceived to negatively impact reliability in traditional nine-to-five employment but can actually be an asset in entrepreneurship,” Shepherd said. “Research has found that people with dyslexia tend to have weaker aspects in their left hemisphere of their brain, but their right hemisphere is stronger, and so therefore they can enter entrepreneurship and be successful in it.
“We have the statistics to say that the people with dyslexia are more likely to become entrepreneurs than the general population—in fact, it’s true for many groups who feel like they’re constrained in being promoted in corporate employment turned to self-employment or entrepreneurship,” he said.
“That includes minorities, marginalized groups, and people with all sorts of disabilities, for example, women and immigrants, because they feel like they have constraints or face discrimination in the workplace and that they don’t have those as much in entrepreneurship.”
Research has found that people with ADHD are more likely to become entrepreneurs.
“People with ADHD are more prepared to engage in risk taking, they’re more proactive, and they’re more innovative, and we also found that people with autism are actually getting used by companies engaging in software testing, because they have some advantages in being able to test software,” Shepherd said.
“Entrepreneurship may cause some mental disorders through high stress or loss when a business fails, which can be an important point to consider when deciding on your career path, but people with disorders are also drawn to entrepreneurship,” he said.
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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Entrepreneurs’ Taboo F-Word
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By Daniel Butcher
There’s an F-word that used to be taboo among entrepreneurs and researchers who study them: failure.
Academy of Management Scholar Dean Shepherd of the University of Notre Dame said that when he was a doctoral student at Bond University in Australia teaching entrepreneurship to undergraduates and MBAs, the assigned texts on entrepreneurship rarely mentioned failure.
“On the one instance that one of them did, the textbook said, ‘Entrepreneurs don’t fail—businesses do, but entrepreneurs are just motivated to try again,’” Shepherd said. “Then one day, I got a phone call from my father, and the family business that he’d created and run as long as I’d been alive was failing badly, and I said, ‘You have to close it down,’ and that caused him and me great distress and anxiety.
“And so it felt funny going back into the classroom and trying to encourage everyone to become an entrepreneur and not be able to say, ‘There is a chance that it’ll fail,’ and also not give them the tools to say that, if you do fail, this is how you cope with it,” he said. “I waited for quite a few years before I wrote a paper about it, and I went into the psychology literature on bereavement and grief, because there, psychologists had tools to help people overcome grief.
“And I thought, ‘My dad’s reaction wasn’t as bad as losing a loved one, but in some ways, it’s still grief, where grief is the negative emotional reaction to the loss of something important.”
Some entrepreneurs even call the business they start—or help launch—their baby. Their ventures are entwined with their own identities.
“When people ask them, ‘What do you do?’ they say, ‘I’m an entrepreneur,’” Shepherd said. “Are you still an entrepreneur once your business fails?
“And so the psychology literature really gave us some good tools to say that maybe you do a bit of grief work; you talk it through with someone, and as you come up with a story for why it failed, then it makes it a little less painful,” he said. “The negative emotional reaction can diminish.”
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Daniel Butcher is a writer and the Managing Editor of AOM Today at the Academy of Management (AOM). Previously, he was a writer and the Finance Editor for Strategic Finance magazine and Management Accounting Quarterly, a scholarly journal, at the Institute of Management Accountants (IMA). Prior to that, he worked as a writer/editor at The Financial Times, including daily FT sister publications Ignites and FundFire, as well as Crain Communications’s InvestmentNews and Crain’s Wealth, eFinancialCareers, and Arizent’s Financial Planning, Re:Invent|Wealth, On Wall Street, Bank Investment Consultant, and Money Management Executive. He earned his bachelor’s degree from the University of Colorado Boulder and his master’s degree from New York University. You can reach him at dbutcher@aom.org or via LinkedIn.
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