It’s good to be the King

In a hierarchical office environment, who is better at handling stress: those who occupy a low rung on the ladder or those at the top? Entry-level workers might face status-induced stresses such as lack of control, fear of layoffs, and the daunting prospect of trying to earn a promotion or raise. However, managers and executives face other stresses, including time pressures, demanding jobs, and the necessity of having others depend upon them. While some animal studies have suggested that high status confers benefits when dealing with stress, there have been few human studies that show a causal connection between status and health. Professor Modupe Akinola, working with co-researcher Wendy Berry Mendes of the University of California, San Francisco, examined this relationship in a recent study on the psychological, physiological, and behavioural effects of having high status. “Most organisations have some sort of hierarchy,” she says. “But not much is known about the effects of these hierarchies, in terms of performance and health.”

 

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Climate Change and Productivity

Extreme weather can wreak havoc on cities and their economies. Damage from hurricanes Katrina and Sandy is estimated at more than USD150 billion and over USD60 billion, respectively. Weather-based power failures and disruptions to transportation systems can delay commuters, stall deliveries, and choke supply chains. And even where extreme conditions are common, economic life suffers. Regions with hot, wet climates are less productive on average. Professor Marcelo Olivares wanted definitive evidence to show whether — and how much — extreme weather affects productivity. Olivares’ experience studying inventories and production in US automobile assembly plants provided that opportunity. With Gérard P. Cachon and Santiago Gallino of Wharton, Olivares matched weather station data with detailed weekly production data from US auto plants. Some aspects of production are seasonal — carmakers produce and sell more convertibles in warmer, sunnier months, for example — so the researchers had to control for expected production drop-offs as well as those resulting from extreme weather.

 

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Crisis Simulation is Key to Good Governance

Business continuity, IT continuity, and physical and data security are firmly on the boardroom agenda thanks to a growing focus on risk governance by legislators and regulators. As a result, more and more attention is being given to formulating plans to protect the business and ensure it can continue trading no matter what happens. “But plans are just words on paper until they have been properly tested,” says Jaun Harmse, senior business continuity management advisor at ContinuitySA. “Of course, the only true test is an actual disaster, but that’s really not the time to find that your crisis plan has some holes! The only prudent course is to undertake a regular crisis simulation.” Harmse says that crisis management forms part of the overall strategy for business continuity management and has two components: the crisis management plan itself and the communications plan.

 

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