Consequences of Bad Behaviour for Management

i) time spent appeasing, calming, counselling or disciplining jerks

ii) time spent handling staff and other stakeholders (customers, suppliers, etc) who are victimized and/or affected by the bad behaviour

iii) time spent reorganizing things as a result of damage caused by jerks

iv) time spent advertising, interviewing, recruiting and training replacements for departed jerks and their victims

v) management burnout that leads to decreased commitments and increased distress

. Legal and HR costs

i) anger management and other training to reform jerks

ii) legal costs for inside and outside counsel

iii) settlement fees and successful litigation by victims

iv) settlement fees and successful litigation by alleged jerks, ie wrongfully terminated, etc

v) compensation for internal and external consultants, executive coaches, therapists, etc

vi) health insurance costs

. Negative impacts on organisations

i) reduced improvements in established processes and systems

ii) reduced innovation and creativity

iii) reduced collaboration and cohesion

iv) reduced discretionary effort

v) dysfunctional internal collaboration

vi) cost of victims' retribution towards the organisation

vii) impaired collaboration from outside organisations and people

viii) higher rates charged by outsiders to compensate for working with jerks

ix) impaired ability to attract the best and brightest

An estimate from USA (Robert Sutton, 2007) states that a jerk, etc can cost an organisation around $US 160,000 per year

 

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