Why Do You Think Box Inc. Should Hire Based On P-G Fit
Box, Inc. is a software technology company for businesses that has experienced immense success in their early years of incorporation. This paper focuses on Box, Inc.’s growth management. Specifically, this analysis addresses the hiring problems and communication malfunctions of Box, Inc. and offers solutions to them. The success of a growing start-up company lies on many things, but two are found to be of upmost importance: hiring for Person-Group (PG) fit and cultivating clear, consistent lines of lateral communication. One decision the founders of Box, Inc. made was to fire their VP of Engineering. The entirety of this case analysis is founded on that decision and the implications has on the companies growth and communication management. The
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reasons presented for firing their VP of Engineering were that he “was isolated and secluded…[he] created his own fiefdom and did not value aligning with the rest of the organization. (and didn’t foster) open disagreement by putting things on the table and working them through.” (8) There are preventative measures that could have been taken to avoid having to make this decision in the first place. The fact that Box, Inc. allowed their VP of Engineering position to be filled by someone whose values don’t match with the organizations’ is an issue. It is apparent that this employee didn’t value collaboration with colleagues. They preferred to work in isolation. In the hiring process the company should have placed a higher importance on the work style preferences of the individual and looked for team players. Hiring for this teamwork mentality is crucial. As stated by Spillan (2002) “An organization's upper hierarchy must build a sense of unification in achieving common organizational missions or goal attainment” (p. 102). Robert Erskine, manager of production resources at GE, reflects on the effectiveness of teamwork stating that “when you combine automation with new systems and work teams, you get a 40% to 50% improvement in productivity" (Hoerr, 1998). The act of firing this employee was essential to repair the productivity and effectiveness of the organization but could have been prevented. The organizations desired culture as defined by the founders in the case is “anti-hierarchal, inclusive of youth and experience, [and] speedy…” (2015) Granted it’s the people who operate in the organization that embody and create its culture. And as we’ve discussed, hiring the right individuals is the most important aspect in developing an organizations culture. But, what should one look for when hiring the “right” person? Person-Organization (P-O) fit theory helps to describe the importance of value congruence between individuals and their organization and creates a guideline for finding the right fit. Kristof (1996) found that “Value congruence is a significant form of fit because values are "fundamental and relatively enduring" (Chatman, 1991, p. 459) and are the components of organizational culture that guide employees' behaviors (Schein, 1992).” So, if the workers values don’t align with the organizations, their behaviors wont translate to the desired outcomes. An important consideration for Box, Inc. should have been the Engineer’s point of view on being “inclusive” and collaborating with others.
Person-Organization fit theory explains the relationship between the individual and the overall organization, but the main problem being examined is the employee’s failure to work alongside others in the team or group. Thus, it is necessary to refine our approach and address Person-Group (P-G) fit theory which will help explain the problematic relationship that occurred more specifically at Box, Inc. Person-Group fit is defined as “the compatibility between individuals and their work groups” (Kristof, 1996 p. 7). If there is no compatibility between the individual and the group then the productivity of the group will be poor.
Box, Inc.
should hire based on P-G fit. The objective behind hiring using P-G fit is to ensure you are employing individuals that will interact together in an efficient manner. This is especially important when one person’s job is dependent on another. This dependency “requires the employee to have broad-based abilities (complementary P-G fit) and the appropriate work values and norms to effectively interact with other employees (supplementary P-G fit)” (Werbel, 2001, p. 232). If P-G fit is used in the hiring process effective interactions between employees are likely to occur creating more cohesive groups. It is these interactions that result in productivity not the isolated actions of the Engineering VP who didn’t fit.
Communication is the second most important aspect of growing a successful company and “an organization's culture is the essence of the organization. Thus, cultivating a cultural climate that is equitable and inclusive is critical for promoting effective lateral communication” (Spillan, 2002, p. 102). And lateral communication is fundamental in operating efficiently as its “purpose is to keep organizational personnel informed of all current practices, policies, and procedures” (Spillan, 2002, p.
100).
In the case, the VP of Engineering served only as a dead-end for information transfer and “In order to optimize lateral communication within an organization, focusing on organizational structure and culture, and the effect of peer interactions within these two areas is paramount” (Spillan, 2002, p. 102). So, again, the act of firing this employee was the right move to preserve the idealized culture, but also to restore critical lines of communication among the higher-ups.
In conclusion, the core executives at Box, Inc. did well to fire their VP of Engineering. This action helped them to continue in the right direction toward developing their desired culture. Their focus on creating work team mentality is well founded as this is much more effective than individualized efforts. They understood that a focus on culture was imperative for long-term success, but their initial hiring practices did not reflect this. In the future they need to hire for Person-Group fit. If they do this, the individuals in their organization will be more compatible which will free up the willingness to share information. These open lines of lateral communication will become a norm within the organization and that is critical in achieving common goals and expanding.
reasons presented for firing their VP of Engineering were that he “was isolated and secluded…[he] created his own fiefdom and did not value aligning with the rest of the organization. (and didn’t foster) open disagreement by putting things on the table and working them through.” (8) There are preventative measures that could have been taken to avoid having to make this decision in the first place. The fact that Box, Inc. allowed their VP of Engineering position to be filled by someone whose values don’t match with the organizations’ is an issue. It is apparent that this employee didn’t value collaboration with colleagues. They preferred to work in isolation. In the hiring process the company should have placed a higher importance on the work style preferences of the individual and looked for team players. Hiring for this teamwork mentality is crucial. As stated by Spillan (2002) “An organization's upper hierarchy must build a sense of unification in achieving common organizational missions or goal attainment” (p. 102). Robert Erskine, manager of production resources at GE, reflects on the effectiveness of teamwork stating that “when you combine automation with new systems and work teams, you get a 40% to 50% improvement in productivity" (Hoerr, 1998). The act of firing this employee was essential to repair the productivity and effectiveness of the organization but could have been prevented. The organizations desired culture as defined by the founders in the case is “anti-hierarchal, inclusive of youth and experience, [and] speedy…” (2015) Granted it’s the people who operate in the organization that embody and create its culture. And as we’ve discussed, hiring the right individuals is the most important aspect in developing an organizations culture. But, what should one look for when hiring the “right” person? Person-Organization (P-O) fit theory helps to describe the importance of value congruence between individuals and their organization and creates a guideline for finding the right fit. Kristof (1996) found that “Value congruence is a significant form of fit because values are "fundamental and relatively enduring" (Chatman, 1991, p. 459) and are the components of organizational culture that guide employees' behaviors (Schein, 1992).” So, if the workers values don’t align with the organizations, their behaviors wont translate to the desired outcomes. An important consideration for Box, Inc. should have been the Engineer’s point of view on being “inclusive” and collaborating with others.
Person-Organization fit theory explains the relationship between the individual and the overall organization, but the main problem being examined is the employee’s failure to work alongside others in the team or group. Thus, it is necessary to refine our approach and address Person-Group (P-G) fit theory which will help explain the problematic relationship that occurred more specifically at Box, Inc. Person-Group fit is defined as “the compatibility between individuals and their work groups” (Kristof, 1996 p. 7). If there is no compatibility between the individual and the group then the productivity of the group will be poor.
Box, Inc.
should hire based on P-G fit. The objective behind hiring using P-G fit is to ensure you are employing individuals that will interact together in an efficient manner. This is especially important when one person’s job is dependent on another. This dependency “requires the employee to have broad-based abilities (complementary P-G fit) and the appropriate work values and norms to effectively interact with other employees (supplementary P-G fit)” (Werbel, 2001, p. 232). If P-G fit is used in the hiring process effective interactions between employees are likely to occur creating more cohesive groups. It is these interactions that result in productivity not the isolated actions of the Engineering VP who didn’t fit.
Communication is the second most important aspect of growing a successful company and “an organization's culture is the essence of the organization. Thus, cultivating a cultural climate that is equitable and inclusive is critical for promoting effective lateral communication” (Spillan, 2002, p. 102). And lateral communication is fundamental in operating efficiently as its “purpose is to keep organizational personnel informed of all current practices, policies, and procedures” (Spillan, 2002, p.
100).
In the case, the VP of Engineering served only as a dead-end for information transfer and “In order to optimize lateral communication within an organization, focusing on organizational structure and culture, and the effect of peer interactions within these two areas is paramount” (Spillan, 2002, p. 102). So, again, the act of firing this employee was the right move to preserve the idealized culture, but also to restore critical lines of communication among the higher-ups.
In conclusion, the core executives at Box, Inc. did well to fire their VP of Engineering. This action helped them to continue in the right direction toward developing their desired culture. Their focus on creating work team mentality is well founded as this is much more effective than individualized efforts. They understood that a focus on culture was imperative for long-term success, but their initial hiring practices did not reflect this. In the future they need to hire for Person-Group fit. If they do this, the individuals in their organization will be more compatible which will free up the willingness to share information. These open lines of lateral communication will become a norm within the organization and that is critical in achieving common goals and expanding.