On the Safe Side

Workplace safety enforcement may depend on whether employees are on a supervisor’s “good side” or “bad side.”

by Justin Walker

Does your boss like you? Do you like your boss? Do you at least feel like they treat you fairly?

The answers to these questions can significantly impact safety enforcement in the workplace, Sara Perry, an associate professor of Management at the Hankamer School of Business, said.

Perry, along with Natalia Lorinkova from University Ramon Llull and Melih Madanoglu from Kennesaw State University, conducted a series of studies on the effects leaders have on the employee experience, specifically when it comes to stress. One of those studies included “Disparate Safety Enforcement: Curvilinear Effects, Mechanisms, and Boundary Conditions of Supervisor-Rated Leader-Member Exchange,” published in the Journal of Management.

“In this particular study, we looked at the way that different relationships people may have with their leaders can affect safety and the experience that employee has in a safety-related way,” Perry said.

The research team was interested in understanding more about the leader perspective in leader-member relationships—identifying the leader’s opinion of what the relationship is and how good the quality of said relationship is. The team also wanted to test that against the employee’s perspective of how they felt the leader was treating them.

“We had this multiple source dataset that was really rich,” Perry said. “That allowed us to test a fundamental component of leader-member exchange theory that hasn’t been tested much, which is leaders actually do treat each employee differently based on the relationship they have with them.”

Perry and the team conducted three different studies as part of this paper. The first surveyed 145 front-line employees and 41 supervisors from a mid-Atlantic construction company. The second included 339 employees and 58 supervisors from four hotels in the southeast U.S. The final study consisted of 228 university students participating in an online, scenario-based experiment and survey.

The team found that leaders differentiate between how they enforce safety. Supervisors with low commitment to safety give the most intense attention to those they have the best and worst relationships with.

“Basically, my favorites and least favorites are who I pay attention to in terms of enforcing safety,” Perry said. “It is a bias that emerges if I’m not as committed to this idea of safety and safety enforcement.”

This means employees in the middle might be inadvertently ignored or forgotten by leaders. But for leaders with a high commitment to safety, that bias completely went away, Perry said.

“The relationship didn’t matter anymore—the leader seemed to be less biased,” she said. “They just overlooked whatever relationship they had with that person. They just treated everyone similarly.”

The relationship dynamics that seem to matter the most are how much a leader likes their employees, how much they trust them, and how much care and concern they have for their individual needs, Perry said. If leaders can proactively work to overcome biases in these areas, they can potentially do the same regarding safety enforcement behaviors.

“Just be aware of it,” Perry said. “In the realm of safety, the more committed you are to safety enforcement, the less biased you are going to be.”

Baylor Business Review, Spring 2023

One Thing is Certain

Baylor researcher models the correlation between new innovation and investors’ attitudes about uncertainty.

by Emily Iazzetti

Uncertainty is certain when predicting financial markets. How investors feel about that uncertainty can determine how companies perform on the stock market, especially for technology firms making their initial public offerings (IPOs).

Assistant Professor of Finance David Dicks has an academic interest in uncertainty. He enjoys getting out a pencil and a legal pad to do the math by hand for the financial models related to that uncertainty. His latest research examined times of increased innovation in technology sectors and how those waves can impact the uncertainty that investors feel about buying in.

“When you’re thinking about new innovation, of course, that is something that’s uncertain in the sense that we don’t really know the probability of success,” Dicks said.

The research, “Uncertainty, Investor Sentiment, and Innovation,” published in The Review of Financial Studies, found that investors are less likely to be held back by their uncertainty about an asset if they can invest in multiple assets that have a similar level of uncertainty. For example, when they can invest in multiple technology IPOs, simply put, it helps to diversify the investors’ portfolios. More diversity typically means less financial risk; that is true for traditional investments in a 401k but also for far more specialized investors who follow IPOs closely.

Market observers may have noticed that there are periods when new technologies seem to trend, and investments in those innovations are “hot.” At those times, it can be unclear what drives innovation and readiness to join the public equity market. However, Dicks’ model found an explanation for the positive investor sentiment surrounding an IPO boom. When investors can mitigate risk by investing in multiple things, the uncertainty about individual assets is less of an issue.

“What we show in this paper is that behavior can be explained by a simple hedging motive,” Dicks said. “So, the reason that you’re more enthusiastic about innovation is because you’re hedged; you’re willing to invest more in this because you know that there’s a lot of other innovation coming.”

That influx of innovation can be represented by a grouping of IPOs in a close time frame. When investors have options, it allows them to mitigate their risk, which decreases the uncertainty involved in investing. If technologies can jump on that “wave” as more companies go public, the timing can be very advantageous.

“What the study tells us is that there are certain points in time when you have a real opportunity to go public. And other times at which it is very disadvantageous to go public,” Dicks said.

As Dicks considers future research, he could look at those decisions about when a company decides to go public. He said it would be interesting to move the focus to entrepreneurs and the impact of their uncertainty on innovation. With additional complexities added to the model, the uncertainty and risk aversion of entrepreneurs could be introduced into the analysis.

Baylor Business Review, Spring 2023

Casting a Giant Shadow

As part of an innovative program, faculty members are spending time with New York business execs, then relating those firsthand C-suite experiences to their students.

by Eleanor Hunt

The Hankamer School of Business is increasing experiential learning for students through a program that allows faculty to shadow C-suite executives and their direct reports. In partnership with TIAA, a Fortune 100 retirement provider, the HSB Faculty Shadowing Program helps faculty keep their teaching and curriculum relevant.

“Our faculty will spend two to three days in New York City, where most of the TIAA leaders are located, attending meetings and finding out the tough situations that executives face. The entire senior leadership of TIAA is on board and excited about this program,” Tyrha Lindsey-Warren, director of the newly created Office of Industry Relations and Experiential Learning, said. 

Thasunda Brown Duckett, MBA ‘01, CEO of TIAA and an alumna of the HSB MBA Program, acknowledged that by participating in the HSB Faculty Shadowing Program, TIAA is continuing to support the financial health and well-being of educators.

“When I started talking with Baylor University leaders about new ways we could support faculty, staff and students beyond saving for retirement and investing in their financial futures,” Duckett said, “I knew we had a unique opportunity to bring our core mission together with the brightest minds in education through the HSB Faculty Shadowing Program.”

Enlightened learning from chief officers

In the pilot phase, six TIAA executive mentors and their senior leaders hosted 11 HSB faculty members. The executives oversee TIAA’s legal, operations, human resources, marketing and communications, information services and product/business development functions. HSB faculty members will shadow the C-suite executive related to their respective teaching area.

“I wanted us to have an experience and interact with senior leadership. When you’re seeing things from the top, that is a different perspective,” Lindsey-Warren said.

Not only do faculty gain a bird’s-eye view from a pinnacle position, but they also can bring back experiences to the classroom to give their students an edge.

“Our faculty can discuss case studies and teach using the most current terminology,” Lindsey-Warren said. “They can invite TIAA executives to speak to their classes. We also hope to have access to research data if our professors need it.”

Igniting academia-industry relationships

The HSB Faculty Shadowing Program has the potential to cultivate strong academia-industry relationships that ultimately aid HSB students. Lindsey-Warren points to how she used personal relationships that she developed from working in the advertising industry to help several students obtain summer internships with a global marketing and communications agency. One of the students won the agency’s summer internship case competition.

“Education is one important aspect, but opportunity and access are also important,” Lindsey-Warren said. “The HSB Faculty Shadowing Program and the Office of Industry Relations and Experiential Learning are helping faculty members strengthen their relationships and get introduced to industry opportunities. It is all about access and opportunity.”

Academia’s chance to inspire industry

Brown Duckett acknowledged that while talent is created equally, opportunity is not, which is why she is inspired by the program.

“As a CEO, I am privileged to be able to give back to this extraordinary community, provide additional support and resources for educators, and hopefully foster the next generation of great talent,” she said. “Perhaps faculty members who participate in this program will ultimately inspire the next CEOs of TIAA.”

Shared enlightenment and inspiration? That is a win-win.

Baylor Business Review, Spring 2023

Entrepreneurial Giving

by Chad Ruyle

As a leader, I believe in giving back and serving others. I have realized over time that you must look at your strengths and figure out how you can take advantage of them to serve your community. I have been through many ups and downs as a business owner and entrepreneur. I can now identify how to maximize my talents and what I have to offer. For me, that consists of mentoring the up-and-coming, investing in education and assisting other entrepreneurs.

Chad Ruyle, BBA ‘00
President, Co-Founder; Fundloans.com 
San Diego, California

It is essential for me to mentor the future of my industry. As you grow in your field, you develop skills and experience challenges that help you make the right decisions to be successful. Leaders are called to pass that knowledge along to help others grow. I’m involved with Junior Achievement (JA), a nonprofit that inspires and prepares young people to succeed. Through JA’s entrepreneurship program, high school students prepare business plans which they present in a Shark Tank-style pitch. Through this, I can provide constructive feedback to the students so they can better establish their business models. As a leader, it is vital for me to encourage others as they start and grow their business.

I am passionate about education, and as an entrepreneurial leader, I want to help in any way I can. Over the past few years, I have taught and spoken at various universities, including Baylor. I have a strong affinity for Baylor as an alumnus. I love what the University is doing from a holistic standpoint with students, as it is a place for nurturing faith and encouraging entrepreneurial endeavors. Recently, I have spent time with both the Oso Launch program and the Baylor Angel Network, engaging with and supporting the students involved. Leaders should strive to further educational opportunities when possible.

I believe a good leader will assist those around them, providing the resources needed to succeed. As an entrepreneur, I understand the challenges to getting financing, not just for potential businesses but for a home as well. Many entrepreneurs have difficulty finding home loans due to their self-employed status. I co-founded Fundloans.com to address this very problem. Our niche is providing residential mortgages to people who are self-employed where banks aren’t able to assist. Homeownership is one of the most significant decisions people make. There is satisfaction in providing people with an opportunity to make that purchase.

To be a leader, you must be a servant first. Some people want to quickly get to a position of management where they believe leadership is just delegating. But the most influential leaders are those who come alongside others and work with them to help them grow. If you want to be a leader or even start your own business, find your strengths, take courageous risks and serve others to the best of your abilities.

Baylor Business Review, Spring 2023

Mastering Business Analytics

New graduate program addresses need for business analytics professionals.

by Justin Walker

Baylor’s Hankamer School of Business and College of Arts & Sciences (A&S) have launched a joint graduate program—a Master of Science in Business Analytics (MSBA).

“Business analytics is and has been a growing field,” Sandeep Mazumder, the William E. Crenshaw Endowed Dean of the Business School, said. “This cross-disciplinary program strengthens both the Business School and Arts & Sciences while furthering the University’s Data Sciences initiative.”

The MSBA program is a perfect representation of developing quality programs to address ever-evolving needs, Baylor University Provost Nancy Brickhouse said.

“I am excited to add the MSBA to our growing portfolio of graduate programs that provide terrific career opportunities for students from a variety of undergraduate backgrounds,” Brickhouse said. “Current undergraduate students from Baylor—as well as other universities across the country and globe—will be well-served by acquiring this valuable skill set.”

Jonathan Trower, associate professor and chair of the Department of Information Systems and Business Analytics (ISBA), said the MSBA program could set graduates apart from others because of its unique business focus.

“What differentiates this program from other analytics or data science programs on campus is the business emphasis,” Trower said. “That seems to be what a lot of the marketplace wants—people who can understand not only the technology behind the analysis of the data, but also the business application of it.”

Trower said the idea for such a program started several years ago from conversations with James Stamey, professor and chair of the Department of Statistical Science in A&S. The two realized that a partnership among the departments and colleges would be mutually beneficial.

“Statistics brings content such as courses in regression, forecasting and multivariate methods that complements the strong course work in business analytics that the Business School has offered for years,” Stamey said. “We are also excited about corporate partnerships that will allow the students to participate in the full business analytics workflow in a capstone class that will be led by statistics faculty.”

Students can begin the MSBA program in the summer and graduate the following spring. The program will feature a combination of ISBA, Statistics and other business courses totaling 36 credit hours.

The program will feature a course on Ethics and Business Analytics, which is essential to the University’s Christian mission, Stamey said.

“A big part of data science is data ethics,” he said. “The same will be said about this program. It is important for our graduates to understand the ethical approach to business analytics.”

Trower said that graduates would have many job opportunities through this program due to the analytical and technical skill sets they will gain.

“I think there are a lot of opportunities for graduates in this unique program,” Trower said. “It is a great technical skill set for students within the business context. They will have that business background, regardless of where they are coming from.”

For more information on the MSBA program, contact Stamey at James_Stamey@baylor.edu or Trower at Jonathan_Trower@baylor.edu.

Baylor Business Review, Spring 2023

Connecting the Dots

Relying on natural curiosity as his guide, Christian Kim is on a path that, by all indications, is leading in the direction of a promising future.

by Leila Grant

Christian Kim’s curious nature has opened many doors in his college career. Through a chain reaction of impactful relationships and experiential opportunities, Kim is realizing his career interests and potential.

Christian Kim
Marketing
Waco, Texas

This sequence of events started when he met Cindy Wu, professor of Management and associate dean for Diversity and Inclusion. Wu was researching job application biases and Kim was immediately drawn to the study. Kim joined Wu on the research project through the Undergraduate Research Assistant (UGRA) Program.

“I always want to learn new things and keep myself busy,” Kim said. “The opportunity to work in this position and increase my knowledge of the business world came up, and I jumped at it.”

Working with Wu on this research, Kim creates personas that he uses to apply for jobs in the workforce. He then monitors the outcome of each application and records data for analysis, which they hope will uncover any job interview biases that play out in the application process.

Kim’s involvement with Wu’s research sparked his interest in analyzing data. This translated to his summer internship at Publicis Sapient, a business consulting company in Chicago, Illinois. As a marketing intern in the travel and hospitality industry, Kim gathered information from case studies, briefs and meetings to create a calendar that informed the team’s campaign strategy.

“Through my internship, I got an understanding of the scope of campaigns across travel and hospitality and learned how the team produced issue-specific content,” Kim said. “From the calendar I created, I learned who stakeholders were across the team and what it takes to execute a campaign.”

Drawing from his industry experience and knowledge gained in the classroom, Kim discovered the need for an innovative app. Though Kim is keeping quiet on the app’s concept until it is complete, he hopes to launch it in 2023.

“We are currently in the prototype stage where we are using software like Figma to design our mobile app interfaces,” Kim said. “This comes with a lot of challenges because we want to make sure our demos are perfect before we proceed to the next steps.”

Kim said his internship connected him with engineers and product managers with whom he has collaborated on this app creation. He draws inspiration from everyone he associates with, giving him a unique perspective and willingness to learn.

“I think it is cool how I got the exposure at Baylor which helped me get my internship, and through my internship, I got to network with people who helped me start my own business,” Kim said.

While Kim is a naturally driven individual, he said the people he surrounds himself with inspire him to be the best version of himself. Looking forward to his career, Kim said he hopes his future workplace pushes him to be the most well-rounded person, just as his current community has done. 

“I made some good friends here at Baylor who inspire me to work hard, and my family has invested a lot in me,” Kim said. “I appreciate the support they have given me, leading to the confidence to look at myself and see what I can do.”

Baylor Business Review, Spring 2023