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A Summary and Review of Getting Even Why Women Don’t Get Paid Like Men and What to Do About It by Evelyn Murphy and E.j. Graff

Wed, 08 May 2013 14:13:32 +0000

Executive Summary

The main theme and concept of this book, that I gathered, was the powerful and practical call to action for women to take in the work environment. There has been an extensive and delayed effort for women to get equal pay wages. Women today still earn 77 cents to every dollar earned by a full-time male employee. The wage gap between the average female and the average male exists at every economic level, from waitresses to lawyers to the CEO’s.

Evelyn Murphy challenges two main questions in Getting Even: Why are women’s paychecks still so far behind? And what do we have to do to catch up? In the work environment still today, women are making almost a quarter less than men. It all stems from unfair treatment on the job, which may not be intended, but it will remain embedded unless we take action. The gender wage gap is unfair to the hardworking women. It reaches women around the country at every economic level.

There are five hundred occupational categories; in the year 2000, women were still being packed into twenty-one of the five hundred categories. The differences between working women and men have tapering over time but the wage gap still stands. Some of the differences you and I have heard are: Women are less skilled at negotiating, they are not strong leaders, choose family over work. The essential concept is that women are deficient. Although, working women’s attributes are just about caught up to the working men’s.

Discrimination, such as “wage discrimination” is a main factor discussed in this book. It is treating women and men differently solely based on their gender. In 1964, Congress passed the Civil Rights Act Title VII, which made it illegal to discriminate on the bases of sex, race, color, religion, and national origin. Evelyn Murphy focuses on the fact that discrimination is morally and legally wrong. This is because it causes women to face the financial consequences. Women lose money due to this issue. When a woman feels sexually intimidated in the workplace she cannot perform her best therefore she has to face the financial consequences.

Women will go through their working lives by doing the best they can at their jobs. They are the only ones who can determine whether the treatment in their work environment is fair or not. This book observes the unfair treatment of the average working woman and how the unfairness hinders the women who cannot afford a lawsuit, the risks and costs. The wage gap is not going to go away by itself; we need to take action now. Women and men need to work together to close the gap. It is possible to close the gap within the next ten years, but as Evelyn repeatedly states in her book, women and men must work together to solve the problem at hand.

The Ten Things Managers Need to Know from Getting Even

1. Why not a dollar? Managers should ask themselves: What should women be earning and not to ask what are women earning. Evelyn Murphy stresses on the topic of why women’s wage rate is not a dollar. Many studies and statistics have been concluded that women just don’t have as much experience in the work environment as men have. That is true, but that does not justify women losing 23 cents to every dollar earned by a man. Americans have said the wage gap has been slowly closing toward equality, but if that was true by now the wage gap would be gone.

2. Personal Cost of the Wage Gap – The wage gap has a personal effect on every woman in the workplace. The gap of twenty-three cents is a personal gap in each woman’s individual life. These consist of vacations not able to be taken, dental work, or lessons for children denied. Many women do not challenge the wage gap, in fear of self-destruction causing them to lose a needed job. Also, women usually do not add up the loss of the twenty-three cents but let’s just put this into perspective for you. The Institute for Women’s Policy Research compared the lifetime annual earnings of women and men, by their age and level of education. The study was conducted using a forty-seven-year adult life span working full-time year-round. Now this is just not equal.

High school graduate will potentially lose approximately $700,000, this is based on a women graduating from high school and making $20,000 a year.
College graduate will potentially lose $1.2 million, this is based on a women graduating from college and making $30,000 a year.
Professional school graduate will potentially lose $2 million, this is based on women getting a degree management, law, medical, etc and making $70,000 a year

3. Cents and Sensibilities – Discrimination lawsuits-Do settlements conclude measure discrimination? Employers settle cases for many reasons, occasionally they settle because of exposure to the public or a judge/jury punishing them for misconduct. Most often employers claim they have done nothing wrong and avoiding the risk and expense. When you see a discrimination case that has been settled, analyze it and weigh out the amount of money that was paid out and against woman’s claims. More often than not, the employer settled to avoid the risk and expense.

4. Plain Old Discrimination – In this period of powerhouse women, it’s extremely hard to believe that people still view woman as being less capable. Now this is just plain old discrimination for people to still consider women as less capable or deficient in the work field. Some of the powerhouse women include; Oprah Winfrey, Senator Hillary Rodham Clinton, and Dr. Susan Love, breast cancer surgeon. Discrimination is continuously effecting women and causing them to lose money. Every job that a woman doesn’t get, every pay raise not received, not getting the promotion, or just not getting paid equally will ultimately hold down a woman’s future earnings. Every dollar missing from her check, will multiply over a lifetime, but a man gets that additional 23 cents.

5. Unequal Pay for Equal work – There is a major American awareness, if an employee female or male do the same day’s work then, female or male employee should be earning the same day’s pay. This occurs at every economic level because employers completely refuse to acknowledge the matter at hand.

6. Nobody loves a lawsuit for wage/sex discrimination – As a business woman, I certainly want to be paid fairly. Employees want to obtain positive reinforcement and be rewarded for hard work, skills, creativity, trustworthiness and dedication to the company just as their male counterpart. Most women realize that carrying out a lawsuit will isolate them from the other employees and disrupt their careers. Their integrity will be questioned at all levels of the business and eventually be let go. Although, in some cases women have built up so much anger, that they now interrupt their career in the pursuit of justice.

7. Occupationally Sex-Segregated Jobs – The deficiency of lawsuit settlements recently is because, the passing of Title VII of the Civil Rights Act of 1964, women began suing over “comparable worth”. Women want to be paid the same as their male counterparts for jobs with comparable skills.

8. Keep Girls Out – The stereotypical opinion of women that we would prefer to do something less dirty, work with words instead of mathematical calculations, and my favorite, making a difference instead of making money. Well, if this isn’t being clichéd toward women I don’t what is. Unfortunately, men have taken the “clubhouse NO GIRLS ALLOWED” to a whole different level. People believe that women merely like to do other kinds of work. This generation of women believes it is their birthright to be strong leaders, responsive, educated, and experienced.

9. The Mommy Penalty and the Daddy Bonus – Women are discriminated against at every level in an organization when she gets pregnant. This develops from the moment a woman tells her boss she’s pregnant to maternity leave (provided or not provided) to the moment she ask for accommodations such as, becoming part-time, video conferencing from home to coming in a little later at work. So, because we get pregnant we are sidelined in the organization as well as financially reprimanded for taking time off to recover. Managers need to understand that just because a woman has a baby and may take maternity leave does not mean she should be penalized in the organization. If the organization has complications because of one woman leaving for maternity, then the organization should have been prepared to maintain stability, especially when the company offers maternity leave. There are many accidents that can happen that would cause male employees to be out of work for months also, just under different circumstances (injuries, health problems, etc.). Yes, things will change but she will come back to work and perform exceptionally at her job. The organization’s preparation in advance for pregnancy could make the difference. The flip side to this is that anything can happen to a woman or a man; it is up to the corporation to determine the value, knowledge, experience, and productivity of the employee as a whole. The phrase “Working Mother” is quite similar to the “deadbeat dad” expression. These two notorious phrases advocate people are not fulfilling their responsibilities, a man or a woman.

10. No Woman Need Apply (Are you serious?) – Managers should always take into account that even though she is a woman does not mean that she is any less capable to accomplish the same job that is explicitly for a man. Employer’s still today openly refuse to hire women, knowing it is illegal.

There are loop holes that companies can jump through that assist in the sex-segregated issue. If something is not done about the loop holes, women will always be on the sidelines making less, taking care of the children and house duties. We will stay in the gender wage gap and not be able to provide for our children to the extent that a male could, with higher pay in the same field with same experience, knowledge, and education. Giving a loop to jump through is not the answer in this case. If we are all considered equal, no matter what color, race, religion, sex, or gender, then why are women being segregated? Is it just because we are women and the males want to feel dominate and in control. Why can’t a woman?

Full Summary of Getting Even

Introduction

Working women still today are affected by wage/sex discrimination. Women are paid 77(seventy-seven) cents less than the average full-time male. The substantial wage gap between women and men has been around for several decades and does not seem to be going away. The wage gap compares the average earnings of all women and the average earnings of all men. Although, in the 1990’s women’s paychecks did not increase as much as the average male did.

Evelyn Murphy goes on to discuss how the blatant data found, is the backbone of the book “Getting Even”. Let’s discuss why women are making a quarter less than men. The unfair treatment in the work environment, this may not always be intentional, but it happens more frequently than we realize. Evelyn Murphy wrote this book in respect to every woman and every man that has a woman that he cares about in his life. Also, for each and every woman who has experienced this type of sex-segregated injustice. Women are affected by this daily, yearly, and at every economic level in our society. What really is a huge issue is that still today we let this type of segregation happen. Every working individual should be paid fairly no matter what. There are many men that are the top of an organization and I am pretty sure that they would most certainly want their wife, daughters, sisters, and nieces to be paid fairly. This binding issue pinches the daily lives of women in every country at every monetary level.

There are many differences between working women and working men but over time they have tapered down. Working women’s independences have caught up with men’s. There many sayings that we all have heard, such as women are less skilled, women do not exhibit strong leadership, and women chose family over their work. There is one central concept that has remained, women are viewed as deficient. The data is drawn from nationwide statistics provided by the U.S. Census Bureau and U.S. Bureau of Labor Statistics. These two Bureaus formulate their data from the working individuals by their age, race, gender, education, and job earnings. When an analyst builds a theory, they are only able to use the data available on the demographic characteristics of the working individuals. Only being able to see one side of the spectrum will limit the validity of the conclusion, because the analysts are not considering the behavior in the workplace.

Discrimination conveyed in “Getting Even” is about women and men getting treated fairly in the work place, not because of merit or value to the corporation, because of sex. In 1964, Congress enacted the Title VII of the Civil Rights Act, to make it illegal for employers to discriminate against sex, race, color, religion, or national origin. The widespread definition of discrimination is often abused. Discrimination is when a woman is treated unfairly, by her employer, because of her sex. A woman has the capability to do her job efficiently, but when being sexually intimidated in the workplace, she is not able to. This ultimately will cost her money. “Sex discrimination, wage discrimination, sexual harassment discrimination, occupational segregation, being “mommy-tracked”: that’s money being taken out of your wallet.

There are many lawsuits filed of wage/sex discrimination, but they are not always true. People make mistakes and even lie. Dealing with discrimination can be an intimidating process, so you should step back and evaluate the situation. This could set back a woman’s entire career. Women are the only determinate of what they feel is inappropriate in the workplace.

Why Not a Dollar?

The wage gap between women and men has been said to be gradually closing. If this were true, then the last forty years would have slowly eliminated the wage gap. At this point, it should be non-existent. So, obviously women are still not getting equal income. Women have been experiencing this deficit for many decades.

Throughout this process, women have excelled in just about everything an educated man has accomplished. Women have caught up with their counterparts in high school and college, surpassing men in the same degree, with better grades and more devotion to their studies. Now women and men are not only competing for grades but for the dollar. This can cause a lot of frustrations between genders in the work environment. According to Heidi Hartmann, who is the president of the Women’s Policy Research, has been documenting this widening gap for quite some time. Her research has revealed that when times are good in the economy, men advance more than women. In 1963, the Equal Pay Act was passed, the Title VII of the Civil Rights Act was passed in 1964, as well as, the Executive Order in 1965, banning federal employees and contractors to discriminate against women. This initiated our nation to look more closely at the idea that women, with the same credentials as a man, deserve equal pay. But, in 1990’s this approach to the wage gap had failed, even when our economy was transforming and women were just as experienced, it failed again thirty years later. So what is actually holding women back? Plain old DISCRIMINATION.

The Personal Cost of the wage Gap: A Second-Class Life

There are very few women that actually know exactly how much their male counterpart is making. They know they are not getting the same amount of pay that equally qualified men get. This leads me into the personal perspective of this issue; women don’t just sit around counting up the missing dollars that they should’ve earned over a lifetime. Consider this particular example of a New York City middle manager, took a job starting out at $32,000 a year. She obtained information on past employees that were male, in her same position, and were making $36,500. That is $4,500 and 14% more than the female employee, with the same skills and experience was making.

Cents and Sensibilities

Many people still today believe the wage gap in fact does measure discrimination. Evelyn Murphy has asked many people their opinions and has gotten stories about unfair treatment in the workplace. She also stated many didn’t come right out and say it, but they have suspected unfair treatment. Another question to ask is, “Do settlements measure discrimination?” In some cases it is definitely true. Employers want to settle cases for various reasons such as certain misconduct will surely sway the judge or jury. Another reason is to avoid risks, expense, and losing money by the public finding out that they were cheating women out of wages. Discrimination can aid in keeping the employers costs and expenses down. By paying women less than men in the same job, the employer is making money at the woman’s expense. Most of the cases are usually never seen by the public or so deeply buried in the newspaper it is easily overlooked.

Now Add Discrimination

I have done my own research on the gender wage gap, and the results are still the same today. I have taken a survey of 10 individuals, 5 male and 5 female. Most of the surveyed group had no clue what the wage gap would be or if it still was as much as 77 cents to the dollar. Evelyn Murphy did a wider-spanned survey on the wage gap measuring discrimination; her examples were dead-on cases of mistreatment in the workplace. One example was, a nurse who had been working at a hospital for many years watched new male entrants, with less training and skills move up faster in the hospital ranks. The harder-working women were left behind and not promoted. Another example she described was a graphic designer, who had watched many firms eliminate new mothers, as early as a year after childbirth. The fathers were in a “temporary setback” and the mothers were completely restriction in the work environment.

Plain Old Discrimination

In this period of powerhouse women, it’s extremely hard to believe that people still view woman as being less capable. Now this is just plain old discrimination for people to still consider women as less capable or deficient in the work field. Some of the powerhouse women include; Oprah Winfrey, Senator Hillary Rodham Clinton, and Dr. Susan Love, breast cancer surgeon. Discrimination is continuously effecting women and causing them to lose money. Every job that a woman doesn’t get, every pay raise not received, not getting the promotion, or just not getting paid equally will ultimately hold down a woman’s future earnings. Every dollar missing from her check, will multiply over a lifetime, but a man gets that additional 23 cents.

Wage discrimination by Sexual Harassment

There are many opinions about what sexual harassment actually is. This definition includes acting in a sexual, patronizing, and intimidating fashion. It can stem from supervisors, managers, and employees that are insinuating sexual favors, groping, stalking, threatening, taunting, or provoking female employees. This can come in many forms and it’s not just a onetime incidence. Sexual harassment is a form of terrorism in the workplace. The court system has made a clear distinction between what sexual harassment is and what is not. First, “quid pro quo” must be demanded for sexual favors in exchange for advancement in the ranks; second, “a hostile work environment” which a work environment has men taunting and threatening women, which any sensible woman would be, inclined to quit. Although, just because there are laws stating that sexual harassment is illegal does not mean that it isn’t still happening every day.

Women’s Work

Women have been underpaid for many decades and were only allowed to work in certain jobs such as, teachers, clerks, nurses, etc. There are artificial social barriers that segregate women in to these two job categories. Resentment of women in the work environment will vary from job to job. There are cases where men refuse to teach a woman how to accomplish a task faster; they will just sit on the sidelines while the woman tries to do the task by herself. Now, if a man doesn’t want to train a woman on how to do the job, then I can say from my own experience, I would figure it out. Women are not deficient, unskilled, uneducated or inexperienced, men should respect that a woman is out there on the job trying to succeed and get a paycheck.

An example Evelyn Murphy used was an apprentice elevator technician, Lauren Sugerman. She started this job in the local union of her state, Chicago. Sugerman was working on the tenth floor of a building with 480 volts of electricity, live cables and huge equipment. Diligently working, she soon realized that all the men had left her alone on a potentially deadly job with no help. After that incident, Sugerman decided she was not going to put her life in jeopardy because of the male employees deciding to leave for the day and not tell the only female on the job site.

My Father Is My Idol: The End of a Dream

In every job environment there will surely be some form of discrimination, it is inevitable. But for a woman to be inspired by her father and want to follow in his footsteps is frowned upon in some industries. Daughters idolize and look up to their fathers; is that such a bad thing, even if you are a woman?

Murphy relates a particular case in which a father was not completely on board with his own daughter following his lead as a firefighter. She trained physically, studied and prepared for the firefighter test. After her father witnessed her vigorous dedication, he changed his perspective about women. He knew she was going in to a male lion’s den. The fellow firefighters did not want a woman on the team. Out of the eighteen applicants, she was one of the three that aced the final exam. The captain wrote the state board to invalidate her test for not meeting the regulations. The board issued a new test to her and she aced the second one to. Once on the job, she was verbally tortured and given tasks that the other new male applicants were not given. She was to stay behind and clean the firehouse while the others went on the field. The captain, who applied to the board for her invalid test, was in charge of her training. He made her do impossible training exercises. The other males were shown how to do it and she was criticized. She refused to report any of this treatment to her bosses. She pursued some advice from other female pioneers about winning her department over as the chief. The captain accused her of cleaning the toilet wrong and had her do ridiculous duties. The chief got wind and started an investigation, and soon the public media got wind. Her father was getting his name drug through the mud. That is not right at all! So, concluding this example, if a woman wants to grow up and be like her dad one day, she will have to go through the same pain and suffering? Are you kidding me? Now this is discrimination at its finest.

Everyday Discrimination: Working while Female

Most women will go throughout life thinking they will progress based on their talents and proving themselves within the company. Unfortunately, in the work place there is a malicious repetition, that spans nationwide, of different types of sex discrimination, job and work-related title segregation, and verbal or physical sexual harassment. This type of behavior in the work place has a gradual effect on women’s paychecks. Women are completely aware they are being devalued and underpaid.

Gender stereotyping has become unbroken in the employee paycheck discrimination. The top management assumes that women don’t want to travel and told that they wouldn’t be able to balance work and family. These types of comments can turn in to illegal discriminatory actions to cut women’s wage rate.

Getting Even: No More Excuses

Women dealt with job and wage discrimination for many decades, but women in the force have been reacting to this issue.

Women have become so tired of dealing with this mistreatment and persistent bias women must to something keep their own self-respect. Women have not much support so they have chosen not to act because they believe that nothing happen to close the gender wage gap. Evelyn Murphy stated reasons (excuses and answers) behind why women hold back.

Excuse1: I’m too busy, and besides I can’t change this alone.

Answer1: You’re no longer alone.

Excuse2: I’ll lose my job if I sue.

Answer2: You don’t have to sue there are other options

Excuse3: The wage gap is going away on its own.

Answer3: No, it’s not.

Excuse4: Women aren’t as ambitious as me; they want more balanced lives.

Answer4: Who said all men were ambitious?

Women, Working from the Inside Up: Step One

The wage gap is not by the fault of any woman trying to establish a career. It will take a national effort of all women and their male supporters to work together to close the gap indefinitely. Working together and documenting every incident of discrimination, do research on what men in the same field are getting paid opposed to you, Build allies and collaborate, and learn to negotiate by asking the boss for a fair paycheck after your research is done so any questions he may have you are well prepared.

CEO’s, Working from the Top Down: Step Two

CEO’s must commit to closing the wage gap within their corporation. It is the CEO’s responsibility to make sure that every individual male or female must be paid equally for each particular job description. If there is inequality in the pay, the CEO knows this is illegal it is their responsibility to fix it. The bottom line that Evelyn Murphy has conveyed is that CEO’s must be accountable for eliminating what each one of them contributes to the nation’s 23-cents gender wage gap. The result is that without CEO’s taking action, the gap will never go away. The CEO’s need to do to close their own companies wage gap:

Adjust pay scales throughout the company.
Insist on zero tolerance for overt discrimination.
Use objective measurements for hiring, raises, and promotions.
Monitor and measure progress.
Insist on equal numbers.

All of Us, Working from the Outside In: Step Three

All American women must hold every employer accountable for closing the gap. As citizens in America, we must join forces and take on the discriminating, biased and costly gender wage gap. Evelyn Murphy proposes three actions that all citizens can take in the civic realm. First, watch the progress or lack of, the Fortune 100 Company’s efforts to abolish the wage gap. Second, that Congress will reinforce the legal structure against wage discrimination. Third, every individual must make the abolishment of the wage gap their own personal mission. Fortune 100 companies such as Ford Motor and AT&T could set the trend by making its male employees even with female employees. The United States has laws to try and eliminate the wage gap but they do not have all of them. Congress plays a role in closing the wage gap by eliminating the fair-pay loopholes and requiring “comparable worth pay” in our United States laws.

The Video Lounge

http://www.c-spanvideo.org/program/299040-1

[Insert: Find at least one video clip (from YouTube or elsewhere) that has an interview with the author, a story about the book and/or author, or an application of the concepts from the book. You must include the URL for the clip, and then, discuss this clip and what it shows in a paragraph - consisting of three-four complete sentences for each clip. Please note, I would suggest searching not just on YouTube, but on business news sites, such as CNN, CNBC, Bloomberg, etc.].

Personal Insights

Why I think:

The author is one of the most brilliant people around…or is full of $%&#, because:

I believe this book was exceptionally realistic in the illustration of sex discrimination and the wage gap. The information Evelyn Murphy compiled with facts, statistics, and interviews about the struggles women in the workforce have dealt with and are still dealing with it today. She went to much detail about mistreatment, sexual harassment, and let go because of childbirth. This has got to stop and she was absolutely correct stating that every individual, Congress, and the President need to take a stand.

With business conditions today, what the author wrote is – or is no longer true – because:

This book is absolutely still relevant today; the gender wage gap still exists within certain industries. Women are still receiving lower paychecks, unfairness and some cases sexual insinuations and harassment for advancement.

If I were the author of the book, I would have done these three things differently:

1. Even though the author is very knowledgeable about the topic, I believe she could have tried to incorporate a little more of the males perspective. I would have done that to show that maybe they had some positive qualities of women. And this also would have given a chance to display any negative insights about why they believe what they do.

2. The book was a very broad perspective of her point, but her delivery was very direct. I would have obtained interviews and surveys from more of a diversity of age ranges, races, and national origins.

3. There were certain chapters that I felt she kind of attacked males for the blame. She did talk much about all the women who didn’t want to work and stayed home. It was briefly touched on but the book was published in 2005, so there have been changes over the last 8 years or so.

Reading this book made me think differently about the topic in these ways:

1. This book was one of the best business books I’ve read. There are many women still today not getting the equal pay they deserve. This will continue to happen unless everybody gets on board with the equal pay. Women will continue to gain the experience, education, and training to succeed in this economy.

2. Regardless of what gender you are you should receive equal pay. Women have families to support also, so depriving us of what we rightfully have earned is gender discrimination.

3. The loopholes organizations have access to jump through needs to be abolished not later, right now. This has created a barrier for women to not have the ability to receive justice when it is an open-and-closed sexual discrimination case at its finest.

I’ll apply what I’ve learned in this book in my career by:

1. I plan to immediately try to make sure that no woman has deal with any sexual discrimination in my work environment. I will incorporate this strategy in to my own business and the business I am currently working at. Women and men in the workplace are equal in my eyes, sexual harassment and wage discrimination will not be tolerated.

2. I plan to allocate the proper wage rates for each job design. I will have all my employees, regardless of what gender, paid the suitable amount for the job hired. I will also not let gender be a determinate of eligibility for promotions and raises.

3. I will always make sure my employees or fellow employees will be treated with respect. If an employee feels that they have been discriminated against, I will not take the situation lightly. Discrimination, no matter what manner it may happen in the work environment, it is morally wrong.

Here is a sampling of what others have said about the book and its author:

Although this book had oodles of information about women’s wage deficit, court cases involving sexual harassment or wage discrimination. Some of the reviews and article responses I found were from men and women’s point of view. Some people believe that it is the woman’s fault and saying we haven’t already stood up and tried to make that wage gap close. This particular view point was from a male reviewer. He also stated that he definitely does not see the wage gap closing in his lifetime. Women responses have stated that we have been trying and will keep trying until this discrimination stops. Women are optimistic about the gap closing and staying closed. Women are not resentful or angry we just want what is rightfully ours.

In the book, Evelyn Murphy examines the topic of sex and wage discrimination intensely. She incorporates many examples from individuals who have experienced this type of discrimination. A lot of the men’s reviews were as I expected, stating that women are not good at negotiating, leadership, skilled, etc. The only reason I believe they have such an issue with women in the workforce working side-by-side, is that they know their competition for the dollar is on the edge. Women have many talents just as men do, they just can’t handle the pressure of possibly having a woman be better at something. The opposing views from men and women in the reader responses were pretty typical from male to female.

One thing men need to stop doing is underestimating the abilities, skills, training, and competency, negotiating strategies, physical strength and overall performance on the job. Women have worked extremely hard to get to the place we are currently and we are not stepping down. We are here to stay, so get over the theories about women, and support us for trying to maintain financial stability for our families.

Bibliography

Evelyn Murphy. E.J. Graff. (2005). Getting Even: Why Women Don’t Get Paid Like Men-And What to Do About It. New York, N.Y.: Touchstone.

Editorial Review. Copyright (c) Reed Business Information, a division of Reed Elsevier Inc.– PUBLISHERS WEEKLY [Review of Getting Even: Why Women Don't Get Paid Like Men-And what to Do About It] Retrieved from https://ebookstore.sony.com/ebook/evelyn-murphy/getting-even/_/R-400000000000000085243#productCustomerReviews

The Wage Project. Wage, Women are Getting Even. President, Evelyn Murphy. http://www.wageproject.org/files/gettingeven.php

Josh. (Jul 12, 10). [Review of Getting Even: Why Women Don't Get Paid Like Men-And what to Do About It] Retrieved from http://www.goodreads.com/review/show/111293187

Jen Lepp’s. (January 05 to March 08, 2012). [Review of Getting Even: Why Women Don't Get Paid Like Men-And what to Do About It] Retrieved from http://www.goodreads.com/review/show/257206174

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Contact Info

To contact the author of this article, “A Summary and Review of Getting Even: Why Women Don’t Get Paid Like Men-And What To Do About It by Evelyn Murphy with E.J. Graff,” please email Jessica.Poole-2@selu.edu or JessicaPoole85@gmail.com.

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About the Publisher

David C. Wyld (dwyld@selu.edu) is the Laborde Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.org), a hub of research and news in the expanding world of competitive bidding. His blog, Career News 24/7, can be viewed at http://wyld-about-careers.blogspot.com/.

A Summary and Review of Switch: How to Change Things When Change is Hard by Chip and Dan Heath

Fri, 03 May 2013 23:57:05 +0000

Executive Summary

The book Switch by the Heath brothers is steps on how to change and make it work. The book gives you steps and examples of the process that they came up with. They discuss how the brain has two parts the rational side and the emotional side. The rational side is the side of the brain that over analyzes and overthinks situations. The emotional side deals with how you feel about something, you loving, compassionate side, and also your lazy skittish side. An example is when you want to start working out but you don’t want to get out of your cozy bed, that’s your emotional mind taking over.

Most of the time, when we try to change something we fail at it because our emotional side takes over. In the book they use the terms the rider for the rational side and the elephant for the emotional side. These terms came from University of Virginias psychologist Jonathan Haidts book, The Happiness Hypothesis.

Change is very hard because it is a conflict in our brains. We have so many automated behaviors and are set in our own ways. When things are unfamiliar we become hesitant and resist change. The key is to have the rider and the elephant on the same path and keep them there for change to work, meaning, have your emotional side aligned with your rational side.

The first step is to direct the rider, by doing that you have to find the bright spots, script the critical moves and point to the destination. Finding the bright spots mean to focus on the positive of something and not the negative. Usually, our minds tend to go towards the negative in the situation. For example, if a child brings home there report card with all A’s and one F you focus on the F. When finding the bright spots you would focus on the good grades and why they are doing so great in all the other classes. Next, you script the critical moves; which means providing a plan and a clear direction. It’s easier to change something if you know what’s at the end. Last in directing the rider you want to point to the destination which means set a clear goal at the end.

The second step is to motivate the elephant, your rational side, by finding the feeling, shrinking the change and grow your people. Finding the feeling is what motivates the elephant. You have to appeal to your emotional side for it to go along with you. Next, shrink the change; you have to make people feel as if they’re getting closer to their goal. Try to set small goals and then bigger goals. Once someone knows that they can accomplish the small goal they are more willing to keep going. Lastly, grow your people; people follow the behaviors around them. That’s why it’s important to have everyone on board to make the change possible.

The last step once you have directed the rider and motivated the elephant is shaping the path. First, you have to tweak the environment by making the right behaviors easy and the hard behaviors hard. Next, build habits, habits are automatic so you need to create good habits for people to follow. Lastly, rally the herd, People typically follow the behaviors of others around them. It’s important to attempt to change the culture to gain the support from others.

In order to keep the switch going you have to keep the elephant motivated. Use positive reinforcement and celebrate change as it happens, don’t wait until to the end. Don’t give up if it doesn’t work the first time, remember failure is learning from your mistakes. You brain is a muscle and you can train it to do anything you set your mind to you just have to keep your elephant and your rider on the same path.

The Ten Things Managers Need to Know from Switch

1. Change: a conflict built into our brains. Change is hard because everyone has an emotional side and a rational side of the brain. The rational side wants that amazing beach body but that emotional side doesn’t want to get out of bed to go to the gym or wants that piece of cake. The solution is getting your rational and emotional sides to align and work together.

2. First Surprise about change is; what looks like a people problem is often a situation problem. For anything to change someone has to start acting differently. In order for you to get people to start behaving in a new way you have to change that person’s situation by influencing not only the environment but their hearts and minds. The biggest problem is our heart and mind often disagrees with each other.

3. Second surprise about change is; what looks like laziness is often exhaustion. Change is hard because people always wear themselves out. When people try to change they’re usually trying to change behaviors that have been automatic. They wear down their self-control trying to change these behaviors and often give up.

4. Third Surprise about change is; what looks like resistance is often lack of clarity. People need guidance and clear direction to what path to take. The rational side leads the emotional side in circles. You have to provide the clear direction.

5. The Elephant- The emotional side which is referred to as the elephant in this book is the loving, compassionate side that is also lazy and restless. The elephant wants the quick pay-off but doesn’t want to work for it. The elephant typically overpowers the rational mind. When change doesn’t happen it’s usually the elephants fault. Your emotional side tends to take over.

6. The Rider- The rational side which is referred to as the rider in this book over analyzes everything, has to plan, and needs direction. The rider usually loses to the elephant. The rider can’t control the elephant long enough to keep it working towards its goal.

7. Direct the Rider- In order to direct the rider you have to first find the bright spots, which means focus on the positive not the negative. Typically people focus on the problem and not what’s going right. Since the rider over thinks and contemplates everything he focuses on problems rather than the bright spots. Second, you have to script the critical moves. People tend to go with what’s familiar to them so in a different situation it’s important to script the critical moves and provide a clear path. Lastly, point to the destination; you need to have an end goal. You have to show both the rider and the elephant where you’re headed.

8. Motivate the Elephant- First, you have to find the feeling; emotion is what motivates the elephant. Second, you have to shrink the change, by reassuring you’re almost there or almost to your goal. It’s easy to achieve small goals and then turn that into bigger goals. Lastly, grow your people; you have to have a growth mindset. Believe that the muscle is a brain and it can learn and be built up with practice.

9. Shape the Path- First, you have to tweak the environment, make the right behavior easier and the wrong behavior harder. Second, build habits, habits are automatic behaviors. Change will work if you build the right habits by taking small steps in the right direction. Lastly, rally the herd, change is easier when many people are doing it because we imitate the behaviors of others.

10. Keep the Switch Going- In order to keep the change alive you have to recognize and celebrate the first step. Positive reinforcement is important to show others the greatness of the change so that they will keep it going. Small steps lead will lead to big steps. Change follows a pattern that you need to start embracing and stop ignoring.

Full Summary of Switch

Three Surprises About Change

The first surprise about change: What looks like a people problem is often a situation problem. It’s about changing that person’s behavior whether it’s a hard change or an easy change. In order to change that person’s behavior you have to change that person’s situation. You have to influence your heart and mind as well as the environment around you. The brain has two sides; the emotional side and the rational side. The emotional side is the side that feels pleasure, pain, love, and compassion. While the rational side over analyzes and over thinks many situations in their head. The book uses the term used by psychologist Jonathan Haidt form his book “The Happiness Hypothesis”, the elephant (the emotional side) and the rider (the rational side). The rider hold the reins and seems to be the leader but in reality the rider is a lot smaller than the elephant and the elephant can go anywhere it wants to because of its size. In order to change you must have both on the same page. The second surprise about change: what looks like laziness is often exhaustion. When people want to change something they wear themselves out because people exhaust their self-control. They’re using their mental muscles that are needed actually make the big change. Our behaviors are automatic and when you want to change something you are messing with those automatic behaviors and that is why change is hard. The third surprise about change: What looks like resistance is often a lack of clarity: People tend to not want to change because the direction given is not clear. You have to provide that clear direction in order for the change to take place. In order to change behavior you have to direct the rider, motivate the elephant, and shape the path. When you do all three at once you get results.

Direct the Rider

Find the Bright Spots:

The first step in directing the rider (your rational side) is finding the bright spots. This means you have to focus on the positive not the negative. Typically when people are trying to change something they focus on what’s wrong with the situation, why isn’t something going right. They need to focus on what they’re doing right, or why is it going well. The rider tends to look at problems rather than the bright spots. That is why you have to direct the rider, which bright spots provide that direction. You should ask yourself the question “What’s working, and how can we do more of it?” Find what works and don’t obsess over what doesn’t work.

Script the Critical Moves:

When directing the rider the second action you have to take is scripting the critical moves. With change you get new choices and with new choices you get uncertainty. Bringing that goal into an everyday behavior is important. Behaviors are automatic so changing into a different behavior it is important to script the critical moves. Providing a clear path to follow will allow change to take place. The rider needs a clear path because if the rider knows where it’s going it can’t analyze over it.

Point to the Destination:

When creating change you need a destination and end goal, in the book they refer to this as a destination postcard, which is described as a vivid picture from the near-term future that shows what could be possible. The rider needs to see what s at the finish line in order to make the move to get there. Destination postcards show the rider where you’re going and show the elephant why you’re going. It’s working on both sides, which is important because you have to get both sides to work together for change to happen. The rider needs to see the vision to make this change possible.

Motivate the Elephant

Find the feeling:

When motivating the elephant (the emotional side) you have to first find the feeling. When you are first given a piece of information it affects your feelings first and foremost. Kotter and Cohen observed that in almost all successful change efforts the sequence of change is see, feel, and then change. No matter the situation it hits you on the emotional level. Emotion is what motivates the elephant, our emotional side. You have to have positive emotions about the change to want to change. When you’re interested you want to get involved and learn new things.

Shrink the Change:

The second step in motivating the elephant is shrinking the change. It’s important to make people feel as if they are getting closer to achieving that goal. Since the elephant is our emotional side it’s important to provide reassurance and positive reinforcement along the way. Start with small goals and work towards bigger goals. In the book they refer to hope as being precious to the change effort. It fuels the elephant and keeps it going. When you’re moving forward and you are confident in the change you are making you are likely to keep in that path towards your change. If the task at hand feels too big to accomplish the elephant will hesitate and resist. The more you conquer the small goals the elephant feels more confident and will move forward with less hesitation. Think of it as baby steps, you start off slow but when the child sees the praise for taking its first steps it continues to walk even more and then eventually the child is walking all over the place without any reinforcements.

Grow Your People:

People have a fixed mindset or a growth mindset. A fixed mindset believes that their abilities are basically static. You avoid challenges because if you fail you are unlikely to try it again. You what you get and there’s no changing it. A growth mindset believes the brain is a muscle and you learn things with practice you work towards that goal. The growth mindset is the best mindset. So, basically if you have a fixed mindset you need to change to a growth mindset. It’s important to teach people that your brain is like a muscle, it’s never too late to learn something new, people need to believe it is possible. The growth mindset believes failing is learning not failure; you have to learn from your mistakes in order to progress, it’s a natural progress.

Shape the Path

Tweak the Environment:

Once you have directed the rider and motivated the elephant you have to shape the path. Tweaking the environment is about making the right behaviors easier and the wrong behaviors harder. Changing the situation instead of the people, we learned in the first chapter about the first surprise of change; what looks like a people problem is often a situation problem. You want to tweak the environment to make bad behaviors impossible. Work on the surrounding environment to promote change.

Build Habits:

Habits are automatic behaviors; we don’t think about it we just do it. We are always trying to fit in with what’s going on around us making behavior contagious. When someone acts outside of the norm we look at it as unusual and strange. Usually when habits are brought up you automatically think of bad habits. To make change happen you have to change your habits. The book talks about action triggers, which Gollwitzer states, “protect goals from tempting distractions, bad habits, or competing goals.”Action triggers create an instant habit. Habits will form no matter what but getting a habit to support change you have to think about two things; does the habit need to advance the mission and the habit needs to be relatively easy to embrace.

Rally the Herd:

People follow others around them and look to others for signs about how to behave. Especially when our surroundings are unfamiliar we look at others to see what they are doing. When you are in a setting and nobody knows how to behave that can cause problems. Behavior is contagious and that is why we act as others act around us. You have to create the herd. Change is unfamiliar, so you have to pay attention to the social behaviors in order for to change to take place. You have to attempt to change the culture to gain the support from others.

Keep the Switch Going:

Once you have directed the rider by finding the bright spots, scripting the critical moves, and pointing to the destination. Then, you have motivated the elephant by finding the feelings, shrinking the change, and growing your people. Lastly, you have shaped the path for the elephant and the rider. You have tweaked the environment, built habits, and rallied your herd. Now you have to keep the switch going. As, I said before it’s like baby steps, you start with a single step and with that single step you motivate and encourage the baby to take another step. It’s just like with change you have to keep that motivation and encouragement throughout the whole process or the elephant (the emotional side) will go off the path. You need to recognize and celebrate the first step, that way people will want to keep going. Reward each step taken, when being rewarded you’re motivated in a social or business setting. Don’t make your reinforcement condescending but rather make it have a clear view of the destination. Change is not an event but a process and to lead a process it requires persistence. It takes time, patience, and commitment.

Once you make the small changes the snowball effect happens. When change does eventually work it follows a patter, meaning the rider, the elephant, and the path are working together in making the switch happen. You have to keep the elephant and the rider with a clear vision and motivated while on the right patch to keep the switch going.

Learning how to deal with both your rational mind and your emotional mind is a process, but once you figure out how to align them you can make change happen. Directing your rational mind by looking for the good and not the bad. Always having a plan helps and providing a checklist helps calm the rational over analytical mind of the rider. When you have a clear path and vision for the rider you can point him in the right direction.

Next, motivate your elephant, take on your emotional side and find the feeling that keeps you going and motivated. Shrink the change and start one step at a time, start small and end big. Remember baby steps. Grow your people, the brain is like a muscle you can build up your knowledge and learn new things. Failure is learning opportunity, learn form your mistakes so you can grow and don’t focus on the failure.

Shape the path for your emotional mind and your rational mind. The elephant and the rider have to work together to move together to get from point a- to -point- b. Tweak the environment, adjust the environmental setting is to help with change. Build the right habits, when you see others around you acting a certain way you tend to follow that behavior. So in order to change you have to change the behavioral habits. Then you rally the herd once you get going where you need to be it’s important to get others to follow to the changes.

Make lists and make small goals achievable first. For example if you’re trying to start working out to get a better body lay out your gym clothes the night before and throw away all those cookies in your cabinet so when your sweet tooth starts acting up there won’t be any cookies for you to munch on. Eventually, your mind won’t need to eat them if the cookies are not there. Train your mind into learning new things and try not to have a fixed mindset it’s very important to develop a growth mindset when making change efforts.

The Video Lounge

I chose the video of Dan Heath explaining what you need to do if you want your organization to change by putting feelings first. I think Dan Heath does a great job explaining about change and one of the steps you need to do in the change efforts. He offers good examples in the video and he gives a better understanding of change.

Personal Insights

Why I think:

The author is one of the most brilliant people around because the Heath brothers give an amazing outlook on change. Change is extremely hard and they make it seem like you can control it and make it happen. They provide you with a step by step process on making change work.

If I were the author of the book, I would have done these three things differently:

1. I would have explained the step and then put the examples. Throughout the book the Heath brothers provide plenty of examples but they are mixed in everywhere. I would explain first then put an example and so on.

2. I would make the book available in paperback; you can only purchase this in a hardcover copy. Not only is it a little expensive but I prefer paperbacks when I read, I like to fold my book over when reading.

3. I also think the pictures should be in color. He refers to one of the pictures on page 60 about the pyramid and references the different colors, which I can’t follow because it’s in black and white. You pay so much for a book and it doesn’t have that many pictures to begin with, you would think if you would use it in an example and refer to the colors that it would be in color.

Reading this book made me think differently about the topic in these ways:

1. Now I look at change in a completely different way, and it doesn’t seem impossible to me. I’m encouraged to try to make a positive impact in some kind of way. It inspired me that I am capable of change for the better.

2. Learning about the fixed mindset, which I am myself, and the growth mindset was very educational. I thought it was great information to think the brain is a muscle and you can build your knowledge and learn new information to grow. Failure is learning!

3. I will always try to balance my rational mind and my emotional mind. I know I am more of the rational side because I over analyze and over think everything. After, reading this book I feel I can change into a better person.

I’ll apply what I’ve learned in this book in my career by:

1. I will motivate my co-workers and employees in my career. I think positive reinforcement is very important in every business. Keeping people motivated means keeping them wanting to work towards the biggest goal.

2. I will teach people that the brain is like a muscle; just because you fail at something once does not mean you can’t try again. You can teach yourself new stuff and value from it. Practice makes perfect so don’t get discouraged if it doesn’t work out the first time.

3. Setting clear goals and a clear vision; starting small and ending big. Focus on achieving the small goals to eventually get to the bigger goals.

Here is a sampling of what others have said about the book and its author:

“What others (scholarly and magazine reviews – along with on-line reviews – not simply reviews off the back of the book) have said about the book and its author?”

I thoroughly enjoyed the book as well as many others did. I tried searching for any bad reviews and was unable to find any. After all the book was #1 on the New York Times bestseller list. Naming a few that have enjoyed the book as well is Jeff Sexton, he claims the book had an elegant and mental framework and he often uses the techniques mentioned in the book. Michael Sliwinski states that this book is really great and “a real eye-opener as to how people react to change and how to achieve change.” Kerry Hannon

says, “While you’ll find Switch displayed in the business and economics section of your local bookstore, clearly it would feel right at home in the self-help section. I enjoyed Jon Burgher’s comments the most, it seems as if he got the most out of the book and really learned from it as it helped him in his career. He states, “The book touches on personal and societal change but it seems best fit for the manager who is trying to affect change in his/her organization. For these people I would highly recommend giving it a quick read as you’re putting the final touches on your change plan. It would be a worthwhile task to take your plan and see how it applies in this model. I found all of the reviews really great for this book and hope others that I tell about this book read it and enjoy it as well as I did and apply it to social or business change.

Bibliography

Heath, D., & Heath, C. (2010). Switch: How to Change When Change is Hard. New York: Broadway Books.

Sexton, J. (2013). Jeff Sexton Writes. Retrieved from

http://www.jeffsextonwrites.com/2010/02/switch-the-heath-bros-and-all-about-elephants-riders-and-paths/

Sliwinski, M. (2010, March 24). I’m Passionate about Productivity, Business and Life. Retrieved from

http://www.michaelsliwinski.com/book-review-switch-by-heath-brothers-a-positi/

Hannon, K. (2012, March 26). Expert, Author, Journalist, Speaker. Retrieved from http://kerryhannon.com/?p=473

Burgher, J. (2012, February 12). Book Review Switch: by the Heath Brothers. Retrieved from http://jonathancavell.com/wordpress/book-review/2012/02/book-review-switch-by-the-heath-brothers

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Contact Info

To contact the author of this article, “A Summary and Review of Switch: How to Change Things When Change is Hard by Chip and Dan Heath,” please email sara.mcgraw@selu.edu or smcgraw85@yahoo.com.

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About the Publisher

A Summary and Review of Switch: How to Change Things When Change is Hard by Chip and Dan Heath

Fri, 03 May 2013 23:57:05 +0000

Executive Summary

The Ten Things Managers Need to Know from Switch

Full Summary of Switch

Three Surprises About Change

Direct the Rider

Find the Bright Spots:

Script the Critical Moves:

Point to the Destination:

Motivate the Elephant

Find the feeling:

Shrink the Change:

Grow Your People:

Shape the Path

Tweak the Environment:

Build Habits:

Rally the Herd:

Keep the Switch Going:

The Video Lounge

Personal Insights

Why I think:

If I were the author of the book, I would have done these three things differently:

Reading this book made me think differently about the topic in these ways:

I’ll apply what I’ve learned in this book in my career by:

3. Setting clear goals and a clear vision; starting small and ending big. Focus on achieving the small goals to eventually get to the bigger goals.

Here is a sampling of what others have said about the book and its author:

“What others (scholarly and magazine reviews – along with on-line reviews – not simply reviews off the back of the book) have said about the book and its author?”

Bibliography

Heath, D., & Heath, C. (2010). Switch: How to Change When Change is Hard. New York: Broadway Books.

Sexton, J. (2013). Jeff Sexton Writes. Retrieved from

http://www.jeffsextonwrites.com/2010/02/switch-the-heath-bros-and-all-about-elephants-riders-and-paths/

Sliwinski, M. (2010, March 24). I’m Passionate about Productivity, Business and Life. Retrieved from

http://www.michaelsliwinski.com/book-review-switch-by-heath-brothers-a-positi/

Hannon, K. (2012, March 26). Expert, Author, Journalist, Speaker. Retrieved from http://kerryhannon.com/?p=473

Burgher, J. (2012, February 12). Book Review Switch: by the Heath Brothers. Retrieved from http://jonathancavell.com/wordpress/book-review/2012/02/book-review-switch-by-the-heath-brothers

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

Contact Info

To contact the author of this article, “A Summary and Review of Switch: How to Change Things When Change is Hard by Chip and Dan Heath,” please email sara.mcgraw@selu.edu or smcgraw85@yahoo.com.

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About the Publisher

A Summary and Review of Management Reset by Edward E. Lawler and Christopher G. Worley

Fri, 03 May 2013 23:56:33 +0000

Executive Summary

Management Reset sets out to argue and prove that the time is now for the third reset to take place. The first two brought about CCOs and HIOs, but have recently become almost obsolete in the current business environment. Sustainable management organizations are capable of quickly and efficiently adapting to the constantly changing world we live in. This book shows how organizations can be sustainably effective. It is vital to the success of an SMO to create social value and ecological value while maintaining economic value. Management Reset is filled with checklists of how to implement strategies and different principles to guide each step of the transformation process to becoming an SMO.

The act of “futuring” is the act or process of looking to the future in order to help prepare for any obstacles that may arise. This is part of developing a strategy for an SMO. The board of governance is also discussed. It is important to consist of members that are both independent, as well as employees in order to gain the best overall perspective when making decisions.

There are three different organizational structures that coincide with sustainable effectiveness; sustainable functional organization, ambidextrous organizations, and network organizations. Transparency is vital in all three because it is what ensures that information concerning the organizations is readily and easily accessible.

The book also states how important of an asset talent is to SMOs. More important is the proper utilization of the talent to guarantee sustainable effectiveness. Aspects of the talent included leaders, managers, and followers. Leaders motivate and influence other employees positively. Managers provide feedback to individuals. It is important to know that not all leaders are managers, and not all managers are leaders. However, good leaders must also be good followers.

The Ten Things Managers Need to Know from Management Reset

1. Managers need to know about the strategies for sustainable effectiveness. Creating value socially and ecologically, while maintaining economic value is imperative to the survival of an SMO.

2. When developing a strategy, managers must implement the act of “futuring”. This gives the organization the opportunity to look to the future to prepare for possible obstacles instead of only focusing on the present. ”Inattentional blindness” should be avoided in order to not lose sight of the environment as a whole.

3. The governing board of an SMO should have both independent and employee members who represent all of the organization’s stakeholders. The leader should be independent.

4. There are three structures for sustainable effectiveness. They are sustainable functional organizations, ambidextrous organizations, and network organizations

5. There are six principles that characterize sustainable work systems. They should be based on activities, not jobs, and guided by shared goals. Multiple stakeholder teams should perform work systems. They are temporary, should be supported by the physical space and technology, and should be managed strategically.

6. Managers of SMOs should manage performance by establishing a balanced scorecard and setting talent development objectives. Appraisals should occur more than once a year and should include team performance. Managers should also use web-enabled technology and have review discussions online.

7. Managers should create and implement a reward system. The system may include tangible, recognition based, or intrinsic. Individual are more likely to perform better when they’re expecting a reward.

8. It is important to the success of the organization to be able to manage talent. Talent is often considered the most important asset to sustainable effectiveness.

9. Managers should know that not all leaders are managers, and not all managers are leaders. However, all good leaders must, at times, be good followers.

10. In order to transform to an SMO, organizations need to redefine existing relationships. It is also important for employees to accept that strategies, policies, practices, and organization’s identity will change. Clear and consistent communication will assist in accelerating the transformation.

Full Summary of Management Reset

Time for a Reset

This book begins by stating that, in order to stay relevant, it is time for a management reset to take place. This basically means that with the ever-changing economy, companies and managers need to also change. In doing so, not only will managers become more effective, but also organizations will have restructured their goals and what is necessary to achieve them. With this reset, environmental and social issues will become a priority.

Two resets have already taken place. The first occurred with the development of command and control organizations (CCOs). This was brought about when a shift in consumer demand helped combine bureaucracy and mass production. The second reset is responsible for the creation of high involvement organizations (HIOs). This came about when higher levels of education became more accessible to workers, and the work itself became more complex.

Lawler and Worley argue that both CCOs and HIOs have become obsolete in today’s business world. This is due to the environments, social and business, constantly changing. CCOs and HIOs perform best with stable environments. The rapid pace of globalization and the increasing rate of environmental degradation are two other factors affecting the relevance of CCOs and HIOs.

Sustainable management should be flexible to change while being environmentally conscious, supporting the well being of all people involved, and still generating profits. Organization effectiveness is influenced by the way the organization is managed. Four of these ways are: the way value is created, the way work is organized, the people are treated, and the way behavior is guided.

Sustainably effective organizations must possess agility and produce outcomes that are beneficial to the stakeholder. Being agile means to be flexible to the complex changes that may present itself; especially those involving the workforce, technology, and globalization. According to Lawler and Worley (2011):

Sustainable management is an evolving management style that we believe is the right one for many companies because of how well it responds to today’s stakeholder demanders as well as the demands of the future. We have chosen to call it sustainable management because it is focused on creating organizations that consistently perform well financially, socially, and environmentally. (p. 20)

Sustainable Management

In order to be relevant in the business world while maintaining sustainable effectiveness, sustainable management organizations (SMOs), must be comprised of multiple ideas and procedures that satisfy the wants and needs of the stakeholders.

Going back to the ways the organization is managed. When dealing with the way value is created, it is necessary to realize that without value an organization cannot exist. Value creation consists of identity and purpose. Identity, which is basically the “how”, represents the long-term strategy and what the organization hopes to accomplish. Purpose, on the other hand, is representative of the main goal, such as achieving sustainable effectiveness. The way value is created differs amongst CCOs, HIOs, and SMOs. Each has a different identity, which results in differing strategies.

The way work is organized deals with the structure of the organization, as well as how the work is divided and coordinated. In SMOs there is, like with most organizations, a corporate board that overlooks the practices of the organization. It is their job to insure that such practices coincide with sustainable effectiveness. It is important for employees to understand and relate to the external business environment. This is where the structuring of an organization comes into play. Broader spans of control and flexibility within teams help the structure continuously evolve. In an SMO, work is organized according to its purpose (Lawler & Worley, 2011, p. 29).

The way people are treated includes that talent within an organization. Often considered the most important asset, it is crucial for SMO managers to know whom their biggest assets are and to see to it that their skills are utilized most effectively. To achieve this, the talent and their performance must be managed and rewarded. It is also critical for managers to recognize how to manage a diverse workforce. With many companies expanding globally, and with the increased diversity of the workforce in the United States, it is an organization’s responsibility to manage and respect employees of different cultural backgrounds.

Leading and transforming are the two main ways behavior is guided. SMOs generally need more employees who possess leadership qualities than CCOs or HIOs typically would. The leading is shared throughout the organization, which helps to establish a new identity, and thus helps guide behavior.

Strategies for Sustainable Effectiveness

Currently, it should be equally important to create value socially and ecologically along with the pre-existing economic values of an organization. Economic value, is of course, imperative to an organization’s survival seeing as that’s where profits are earned. The goal of SMOs is to successfully have strong economic values without overlooking the effects to the ecological and social environments.

Just as with any other strategy, there are risks associated with sustainable effectiveness. Managers of SMOs tend to be aware of more types of risks than those of CCOs or HIOs. Along with the typical financial or strategic risks, SMOs also take into consideration that competitive advantages are not permanent or guaranteed.

Creating ecological value consists of being aware of the carbon footprint an organization will leave on the environment. Not only should organizations do their best to preserve the existing environment, they should also utilize natural resources available to them in the most productive way possible.

Another strategy for sustainable effectiveness surrounds the human aspect of an organization. SMOs need to focus on the positive treatment of their workforce. Encouraging a strong social value will in turn encourage creativity, innovation, and an overall happier and healthier workforce. This can also be implemented through an organization’s culture and brand.

Developing a Strategy

When developing a strategy for an SMO, the process of “futuring” gives organizations the opportunity to look to future to help prepare for any uncertainties that may arise. Futuring prevents organizations from focusing all of its attention on the present, which may cause it to overlook or neglect important details that will affect the future. A similar problem facing organizations is “inattentional blindness”. This happens when someone becomes fully engulfed in a particular situation or task, becoming completely blind to his or her surroundings.

To help avoid this problem, futuring processes need to focus on time and goals; short-term, medium-term, long-term, and the expectations for each. SMOs should also focus on the organization’s social value, natural environment, and financial performance.

Board Governance

The purpose of a board is to ensure that the owners of an organization are represented. SMOs believe that part of maintaining sustainable effectiveness means also representing the major stakeholders of the organization, such as the customers, employees, investors, and the community itself. The board is responsible for ensuring that all of the organization’s goals and strategies fit it with sustainable effectiveness.

The members of a board play a huge role in how well it successfully represents its stakeholders, how credible and knowledgeable it is, and how effective it is overall. Independent (not employed by the company) members are often considered the most important part of any board. They are more likely to be less biased when it comes to decision making. This doesn’t mean that there shouldn’t be any employees on the board, though. Insiders can often bring a different perspective and necessary information to light that those outside of the company may not have access to. Representatives from each of the stakeholder’s groups, as well as those who add diversity and expertise to the board are key to sustainable effectiveness and its success.

SMO boards must also have a position of leadership. While previous CCOs and HIOs looked to the CEO of an organization to fill this role, SMOs typically do not. SMOs understand the importance of having an independent chair to lead the board. This prevents conflicts of interest and excessive time demands, while reinforcing objectivity, accountability, and strong corporate culture.

Boards may also consist of many different committees that oversee the various areas of the organization. These committees may include: sustainability, social responsibility, human resources, and organizational effectiveness.

Structures for Sustainable Effectiveness

There are three different organizational structures that coincide with sustainable effectiveness. Sustainable functional structures start with managing resources and deciding what issues to focus attention on. One focus is to maximize its surface area by gaining feedback from multiple stakeholders by implementing flatter structures. This also makes this type of structure better equipped to change easily. Coordination and resource allocation is another objective of functional structures. Coordination can be considered what keeps the organization running; the more complex the business, the more complex the coordination process. Flexible resource allocation is essential in SMOs. As the business environment changes, SMOs must be able to move their resources around to get the most value out of them. Also, the decision-making processes of SMOs must possess a high level of transparency. Because SMOs strive to be financially, socially, and environmentally effective, they face the complexity of having multiple bottom lines. Transparency ensures that individual stakeholders associated with an organization are kept informed and up to date on the organization’s corporate social responsibilities and decision-making processes, including who is making the decisions and what they are based on.

Ambidextrous organizations must balance innovation and efficiency. Innovation is commonly driven by the creative talent available within an organization. Technology, the external environment, and organizational culture also play a role in the aspect of innovation. Efficiency may play a factor in sustainability if it is focusing on being environmentally efficient. Network organizations must execute effective outcomes while still possessing the flexibility to change.

Sustainable Work Systems

According to Lawler and Worley (2011), sustainable work systems should be:

Based on activities, not jobs

Guided by shared goals

Performed by multiple stakeholder teams (they can be virtual)

Temporary and iterative

Supported by the physical space and technology

Managed strategically (p. 162)

SMOs are based on the fact that our environment is constantly changing. Because of this, there is no place for fixed jobs or job descriptions. By not being characterized by fixed jobs, employees are granted more flexibility in their job. It is common for employees to rotate projects or responsibilities for each project.

When work is guided by shared goals, it is common for there to be a difference of opinion when it comes to each goal’s importance. One person may be concerned with customer service while another is more concerned with the legalities of the project. This characteristic of SMO work systems intends to gain perspective from multiple stakeholders.

SMOs usually partake in mostly group work. Groups bring a higher level of innovation, creativity, and sustainability to an organization. Each individual possesses his or her own perspective and insight on how to proceed with a project or how to resolve a conflict.

Now, agility comes back into play. Work systems are temporary. When it is no longer productive, effective, or relevant it must be changed to adapt to the new business environment. SMO work is also iterative, meaning “productivity is achieved and sustainable effectiveness supported through small and frequent improvements in the product or service” (Lawler & Worley, 2011, p. 169).

Another characteristic discussed is the importance of the SMO being supported by the physical space and technology. By creating a complementary workspace, employees will have a higher level of job satisfaction, which will increase overall productivity. If a company chooses to use various forms of technology, it is imperative that they then provide the necessary training and support to their employees.

Lastly, work must be managed strategically. This seems like a no-brainer. Planning, leading, organizing, and controlling must be implemented strategically while managers ensure that they are being sustainably effective.

Managing Performance

Organizations manage performance in many ways. This doesn’t mean that organizations carry this out the right way. There is a huge need for effective performance management. SMOs lack fixed job descriptions, making it more difficult to carry out performance evaluations. Having an effective performance management system helps counteract this problem. This system would set goals and provide a basis for rewarding employees who accomplish their goals. As part of the SMO performance management system, there are six principles that support sustainable effectiveness. They are:

Establish a balanced scorecard

Set talent development objectives

Don’t assume an annual appraisal is often enough

Use web-enabled technology

Appraise team performance

Have review discussions online (Lawler & Worley, 2011)

Reward Systems

Individuals are more likely to achieve higher goals when they expect a reward in return for their performance. Most organizations have reward systems that attract potential employees and motivate current ones. Rewards can be tangible extrinsic, based on recognition, or intrinsic. Tangible extrinsic rewards possess some form of economic value, such as monetary bonuses, stock options, etc. Those based on recognition range from praise from your boss to a ceremony commending an individual’s performance. Intrinsic rewards are those that are internal. Excitement over completing a project is an example of that. Managers of SMOs must be sure that all rewards are based directly on an individual or team’s performance.

When designing a reward system, there are twelve principles that should be implemented. The first five are considered universal reward principles, and the following seven are SMO reward principles. Together, all twelve are key to an SMOs sustainable effectiveness:

Create rewarding work assignments

Forget merit increases, give bonuses

Pay for team performance

Give people a piece of the action

Don’t be satisfied with a once-a-year reward cycle

Pay the person, not the job

Define fairness strategically and ethically

Individualize rewards

Don’t base rewards on hierarchy

Don’t base rewards on seniority

Be transparent

Use identity and purpose as rewards (Lawler & Worley, 2011)

Managing Talent

Employees are an important asset to every organization. SMOs prove this by treating their employees as stakeholders in the organization instead of just employees. The talent possessed by an organization has the potential to create a competitive advantage within the industry, and therefore must be managed effectively. SMOs use the travel-light approach when managing talent. This consists of temporary employment, outsourcing, virtual employment, etc. SMOs face the challenge of maintaining the flexibility necessary to be sustainably effective while also having a committed workforce. It is more cost effective and easier all around to change the employee when situations change versus retraining that employee. This is where the travel light approach comes into play. In order to effectively manage talent, there are nine principles that should be considered:

Use competencies to drive talent management

Use targeted talent management

Use contract labor

Outsource nonpivotal work

Create career diversity

Build a sustainable management brand

Make career management the individual’s responsibility

Make executives the primary talent managers

The HR function plays a strategic role (Lawler & Worley, 2011)

Leading, Managing, and Following

Leadership is an important aspect in the success of any organization. Not all managers are leaders and not all leaders are managers. Leaders are those individuals who motivate, positively influence, and guide other employees. Strong leadership is important in SMOs since the structure is more flexible. SMOs should encourage leadership to be shared throughout the organization. Good leaders must also know how and when to be a follower, especially in an organization that has many leaders. To create and promote leadership an SMO should establish a sustainable leadership brand; senior management must support building the leadership capability; develop managerial and leadership skills; and commit to transparency. (Lawler & Worley, 2011)

Transforming to Sustainable Management

Overall, it seems obvious that the constantly changing environment calls for a complete management reset. Factors such as globalization, increased diversity, and ecological forces further support this theory. For an organization to transform into an SMO it must first redefine the existing relationships within the organization. The governing board and top management must agree on objectives necessary for sustainable effectiveness. Appropriate targets should be set, along with reasonable growth expectations. Organizations must maintain transparency especially when dealing with ecological and social concerns. Once these steps have been takes, there can be a new value creation. Other dilemmas associated with being an SMO include the knowledge and awareness dilemma and the capabilities dilemma.

To manage the transformation process, many aspects of the organization must change. Strategies, policies, and practices are just a few areas where change will be necessary. The organization’s identity will also require change. The sequence of change begins with the work system. Once that is done, a reinforcing system should be created to help restructure the organization. To accelerate the transformation requires a high level of leadership and the willingness to learn. It helps the process if the members involved understand the need for change. This information should be shared. Learning through experience, as well as taking the initiative to drive change will further accelerate the transformation. Consistent communication of what is expected is also vital in the transformation process.

The Video Lounge

This clip discusses the adaptable organization and how change occurs naturally in the environment. The claim is that organizational change has not been managed effectively due to the idea that change is not easily accepted. It is important to put people in touch with the environment so they understand the nature of the change.

Personal Insights

Why I think:

With business conditions today, what the author wrote is true – because:

The focus and main idea behind sustainable effectiveness is that the social and business environments are ever changing, and to be successful your organization must also be flexible to those changes. With globalization and constant advances in technology, change is occurring, at times, faster than books can be printed about it. SMOs are the obvious next step in business organizations.

If I were the author of the book, I would have done these three things differently:

1. I would have avoided the redundancy found throughout the text. This caused it to be a bit boring at times, because although the authors went into more detail, I felt like I was rereading the same things over and over again.

2. I think that the book could have been organized better making it easier to read and follow along. Some topics were introduced in earlier chapters and revisited in later chapters. I think I would have liked it better to keep information on the same topic together.

3. The division of the book into parts and chapters caused it to be more of a complicated read than I think it should have been. It added an unnecessary sense of confusion that, in the end, took away from the reader’s experience.

Reading this book made me think differently about the topic in these ways:

1. I can’t say that it made me think differently about the topic since the topic itself was new to me. I can say that this book opened my eyes to the concept of sustainable effectiveness and its importance in the business environment of today.

2. This book made me realize the importance of implementing strategies that focus on and utilize such things as social and ecological value. Organizations that are concerned with practices that promote social well being and sustaining and protecting our environment will have a better opportunity at long-term success.

3. I feel like I further understand the importance of diversity within the organization. Creating social value puts a focus on using talent to the advantage of the organization. Knowing who is an asset and successfully using their talents in the correct positions are crucial to the success of sustainable effectiveness.

I’ll apply what I’ve learned in this book in my career by:

1. Researching every organization I may be interested in working for in order to check for sustainable effectiveness. In doing so, I’ll know that the organization is concerned with its responsibility to the stakeholders and the environment over just turning a profit.

2. I believe I will research the board of the organization to see if all of the stakeholders are efficiently represented. This book made me realize the importance of that factor. If there is no representation, I will have some information to bring to the board supporting that belief and hopefully can influence a positive change.

3. Being open to change inside and outside the workplace. The world is constantly changing and success is dependent on being capable of changing with it when necessary.

Bibliography

George, J. (2011, June 26). Living in Groups: Management Reset – Organizing for Sustainable Effectiveness – by Ed Lawler and Christopher Worley. Living in Groups. Retrieved April 15, 2013, from http://groupsarelife.blogspot.com/2011/06/management-reset-organizing-for.html

Jones, D. (2011, April 12). Book of the Week: “Management Reset” by Ed Lawler and Christopher Worley | | Jossey-Bass Business. Jossey-Bass Business | Bringing together the best minds in business.. Retrieved April 16, 2013, from http://www.josseybassbusiness.com/2011/04/book-of-the-week-management-reset-by-ed-lawler-and-christopher-worley.html

Lawler, E. E., & Worley, C. G. (2011). Management reset organizing for sustainable effectiveness. San Francisco, CA: Jossey-Bass.

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Contact Info

To contact the author of this article, “A Summary and Review of Management Reset by Edward E. Lawler and Christopher G. Worley,” please email Amanda.lowery@selu.edu.

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About the Publisher

A Summary and Review of Why Nations Fail by Daron Acemoglu and James A. Robinson

Fri, 03 May 2013 19:58:38 +0000

Executive Summary

“Why Nations Fail” by Daron Acemoglu and James Robinson analyzes, from the end of the ice age to the present day, why there are communities and countries that manage to create welfare for its members and others not. Geographical explanations of abundance or scarcity of resources, the cultural are refuted with hard evidence to controvert. The thesis: prosperity and poverty are determined by the incentives created by institutions; politics determine the institutions.

The main thesis of the book is that the future of nations depends on how people organize their societies. It also shows that while financial institutions are essential, policies are more decisive. The book explains the difference in prosperity of countries by one key factor: the quality of its institutions and they are neither culture nor geography, nor religion.

In this sense, the book concludes that nations fail because their institutions are weak and “extractive”, meaning that they are mutually exclusive: a privilege society groups over others and concentrate power in an elite acting for their own benefit.

According to the authors, these structures do not create incentives for people to save, invest, get education, innovate and access new technologies. The way power is organized would always be at the root of the failure.

The importance of political institutions is that in them depends the ability of citizens to monitor, influence and obtain benefits of it. If they are strong and inclusive, they will prevent having people who abuse the power to amass their own fortunes and carry out their own agendas to the detriment of the rest of society. A key point is the ability of the state to regulate and govern the society and prevent the concentration of power and wealth in a few hands. Only with inclusive political institutions, that is, to protect private property, encourage innovation and create entrepreneurial incentives for everyone, you can overcome underdevelopment. That is, how to organize politics depends how the economy works.

We are in front of a masterpiece work that can mark a before and after in the disciplines related to political science, especially in schools that emphasize the importance of institutions; these have never received a theoretical and empirical support that big. The future of nations depends on how people organize their institutions and their rules. Although financial institutions are essential, consider that political institutions are the most crucial. The economy is doing behind the politics.

The Ten Things Managers Need to Know from Why Nations Fail

1. The country where we born determine the access of economic and social opportunities that you will have in your lifetime. There are countries that offer a lifetime of opportunities, full of possibilities. There are others whose offer consists of obstacles and hardships.

2. The quality of the institutions is the key factor of the prosperity of the countries and it is not affected it neither by culture, region, or religion.

3. The rich are rich because they developed institutions handing out economic activity and political power among more people. In the terminology of the book, the rich are rich today because yesterday created inclusive institutions, and non-extractive.

4. A society with extractive economic institutions does not respect property rights and investment incentives generated. In a society with extractive economic institutions, and invest effort becomes meaningless as far as the fruit of the effort can be expropriated. These are countries whose rules are designed to economically benefit the minority of the majority. They are societies in which resources are extracted by elite at the expense of society and the economic welfare of the rest of the population.

5. Extractive economic institutions coexist with extractive political institutions, institutions in which power is concentrated in a few hands and try to maintain and develop economic rules that benefit them personally and provide continuity in the political managerial power.

6. The majority of countries that flourish have the common factor of defense and protection of property rights in an economic environment that promotes investment, the creation and adoption of new technologies also stimulates the acquisition and development of skills and knowledge useful for the enterprise. This combination of factors occurs in countries whose economic institutions are inclusive.

7. Without quality institutions is impossible sustainability of growth, which relies on the possibilities of generating innovation, the emergence of new companies and regenerate answering the set, contributing to the spread of economic power.

8. Even though a country is well developed, one of the reasons why some countries do not adopt inclusive institutions is because of the fear of creative destruction. The fear of changing the balance of power makes countries prefer “better the devil you know than the devil you don’t know yet”.

9. The nations are going through what the authors call “institutional drift” and its institutions are changing, forward or reverse, marked largely by critical junctures. What is clear is that small institutional differences in a critical historical moment, is just magnified over time.

10. There are countries with initial advantages or disadvantages, but ultimately it is the structure of incentives that create institutions that determine whether a country moves along a path of progress or stagnate in poverty.

Full Summary of Why Nations Fail

Why intend countries fail to answer these questions with a new theory compelling and documented: not by climate, geography or culture, but by every country. Institutions through a lot of historical examples and current (from ancient Rome through the Tudor and reaching modern China) professors Daron Acemoglu and James A. Robinson show that to invest and prosper, people need to know that if they work hard, you can make money and, above all, keep it. This is where come into play and sound institutions in which power trust. Moreover authors in this book mixed economy, politics, history and current affairs to offer a new, powerful and persuasive to understand all the whys of wealth and poverty.

I. So Close and Yet so Different

Why some nations are more successful than others? Nogales (Arizona) and Nogales (Sonora) have the same population, culture and geography. Why one is rich and the other poor? Why did the Egyptians fill Tahrir Square to overthrow Hosni Mubarak? Why intend countries fail to answer these questions with a new theory compelling and documented: not by climate, geography or culture, but by institutions in each country. Through a wealth of historical and contemporary examples (from ancient Rome through the Tudor and reaching modern China) teachers Daron Acemoglu and James A. Robinson shows that to invest and prosper, people need to know that if they work hard, you can make money and, above all, keep it. That’s where sound institutions involved and you can rely on. Furthermore the authors in this book mixed economy, politics, history and current affairs to offer a new, powerful and persuasive to understand all the whys of wealth and poverty.

II. Theories That Don’t Work

The authors discuss several theories that tried to explain economic inequalities in the world and refute and explain why did not work. They discuss these three hypotheses: The geographic differences, the cultural differences and the hypothesis of ignorance. And gave their critics and opinions of why did not work.

Furthermore, the book shows us a map of the world by per capita income where the highest are in Western Europe (except Spain and Portugal), USA, Canada, Australia and Japan and the lowest in Africa and South America. To make this distribution of income set the bar higher in $ 20,000 per capita, which makes Spain (until recently eighth world power) and Portugal are relegated to the same category as Russia or Argentina. They believe there is a gap between rich and poor and remind us that if the price of oil fall then Middle Eastern countries that are now rich, could become poor. They wonder how to explain the crucial differences between rich and poor countries and their different growth models.

III. The Making of Prosperity and Poverty

The authors analyze the case of the two Koreas, two separate countries since 1950. The North, under a Communist regime stripping is poor, without training and entrepreneurship, and the South, from 90 democratic and pro-Western, is rich because it encourages and investment opportunities. The authors say that guarantee the right to private property is crucial for those who enjoy this right will be willing to invest and increase productivity.

In addition, they give the example of Barbados in 1680 when landowners were distributed judge charges and slavery was huge. Also, they needed roads and utilities. In Latin America there was private property but the Indian were unsafe. Therefore, the legal system should not discriminate or serve extractive institutions that aim to extract income and wealth of a subset of society to benefit a different subset.

Instead, create inclusive markets inclusive institutions that give freedom and opportunity to practice any profession, who have good ideas and be able to create businesses, and pave the way for technological innovation and education, leading to sustained development. Hence the success of Thomas Alba Edison, Bill Gates or Steve Jobs who did business because teenagers have access to the education they want or can achieve. Another example is the Samsung factory in South Korea.

Against this are absolutist political institutions, or worse, failed states like Somalia, where the state (Max Weber: The State has the monopoly of legitimate violence) is unable to impose law and order and is centralized.

The authors give the example of Mobutu in the Congo, where rode all for your service and for the sake of wealth had made some inclusive institutions would have to redistribute their wealth. Not only had the powerful people opposed to technology but also the unions that blocked many advances. In general, the powerful groups resisting the economic power and the engines of prosperity. One example was the king of the Congo, who had 500 musketeers in the seventeenth century, and then the public did not have option to no political power. After independence in 1960 were reproduced extractive institutions.

IV. Small Differences and Critical Junctures

The authors refer to the 1346 bubonic plague (The Black Death) which entered to China by the Black Sea and ended up with half of the affected population. The order came down because feudal lords were without servants. Given the shortage of labor, workers were able to be deleted fines, compulsory labor and other abuses. Attempts to impose abusive Workers Statute failed in England. But in other places, particularly in Eastern Europe, lords took over more land and cities lost freedoms, Eastern Europe exported more grain but by hard labor. Finely Glorious Revolution in England in 1688 provided more freedoms and limited the absolute power. This was after the industrial revolution began.

The authors compare the evolution of three monarchies as Philip II of Spain, Elizabeth I of England and Henry III of France. The three fought against citizen assemblies as the Courts, Parliament and the States General. There were small differences for the monopoly of trade with America, as England was conducted by merchants who became wealthy and could oppose absolutism. These small improvements fueled a virtuous circle while in France and Spain fell into a vicious circle. But still the situation was better than in Central and Eastern Europe, burdened by the easement.

In only three centuries since the Black Death there was a process of divergence.

They tell us that the defeat of the Spanish Armada in 1588 opened the Atlantic trade to the English and generated progress of England and its market economy settlers spread across North America while the South remained under a model extraction and high inequality. There was more severe in Africa where absolutism prevailed and slavery with the exception of Botswana. China and India with its caste also lagged. In contrast, in Japan Meiji Revolution triumphed that eradicated the feudal order and growth soared. In the Middle East, the Ottoman Empire imposed a colonial regime.

The authors say that the institutional theory explains better than those based on geography, culture ignorance or economic differences.

What both authors want to establish is:

How were inclusive institutions?

How persisted and continued the virtuous circle?

Extractive few absolutist governments and rejected the new technology of the industrial revolution?

How Europeans ended the possibility of economic growth in parts conquered?

How the vicious circle and the iron law of oligarchy can maintain extractive institutions which did not extend the industrial revolution continued poor?

Why the industrial revolution technologies have not been implemented in places with minimal centralization of the state?

Also, they say that areas transformed their institutions in a more inclusive, such as France or Japan, or prevented the establishment of extractive institutions, like the United States and Austria, were more receptive to the extension of the industrial revolution and ahead of others.

V. “I’ve Seen the Future, and It Works”: Growth Under Extractive Institutions

The authors review the evolution of the Soviet Union Economic under Stalin and the Five Year Plans of Gosplan, who took agricultural production after expropriating land and collectivize farms in order to feed the industrial workers and construction factories. In the rural area, production plummeted. There were 6 million dead from starvation. Despite being a less efficient than the free market, there was growth because the PC elite poured all their resources into the industry, which was very late. It was said that the planned economy was altruistic because it gave full employment, price stability or altruistic motivation. Also Samuelson predicted that in the 80s, the USSR would overtake USA. It was a quick but sustained development and ’70s the model is exhausted.

An important note is that according to the authors, the collapse of the USSR was because of extractive institutions as the Communist Party cannot generate sustained technological change and economic disincentives resistance by elites. It had trouble giving up resources efficiently and to make decisions.

Later, the authors examine the case of Congo, Kasai, bushongs and leles that were separated by a river. Some were poor and fighting each other while the others were rich and had advanced technologies because they had an extractive centralized absolutist king to collect taxes but brought some prosperity.

The problem with this growth, like the USSR, is that, according to these authors, there is no creative destruction.

Then go over the creation after the Long Summer (15,000 BC) of agricultural societies as natufienses on the Euphrates, Abu Hureyra and Mount Carmel. They believe that the elites led to sedentary people and then undertake agriculture. So think Jared Diamond began the horse because, really, institutional changes began first as a reorganization to take advantage of greater availability of animals and plants and only then came agriculture and religion.

The expansion of agriculture also spread the Mayan cities such as Copan, led by their kings and aristocracy. In the year 779, Copan had more inhabitants than Paris. But since there was no change and 300 kings and nobles dedicated to tax that created great inequality until 810 fought among themselves to overthrow the boss and take control and profits. The system disappeared because was not stable.

They believe that China will be the same.

VI. Drifting Apart

The authors speak of the decline of Venice between 1050 and 1350, because when the Venetian Republic ruled by the Doge and General Assembly offered incentives for youth to thrive through the institution of the encomenda generated a great economy but generations after members of the Great Council, which was once controlled by family groups, blocked access to new merchants, so that in 1297 eliminated the incentives for growth through Serrata – new appointments had to be approved by the Council of Forty while current needed no confirmation- The Grand Council became a hereditary aristocracy in 1315 with the Libro d’Oro or Gold Book. Moreover, they implemented a Settata economic and the prohibition of encomenda contracts. In addition, the state nationalized the trade Venetian galleys and collected more taxes. The long-distance trade was monopolized by the elite. Later, it declined.

The same happened to the Roman Empire that reached its expansion after the struggles of the Greco by calling for greater representation of commoners and laws; although excluding the slaves. In marine wrecks wealth is generated and there is evidence of Roman activity and pollution in the Greenland ice until the first century but it was an extractive economy dominated by the elite of the Senate (large landowners and aristocrats) at a site with an unequal distribution of land. All this was overthrown by Julius Caesar and the Roman Empire, which eliminated partially inclusive institutions such as the plebeian assembly passed the Senate whose powers and such. The fight of the elites to control the extractive power of Rome led to the collapse of continuous civil wars. Property rights for the common citizen were less certain. No emperor wanted to put more inclusive institutions. Increase the number of people to be citizens but with fewer rights than before. And technology stagnated. The Emperors dismissed incentivized or advances which could eliminate labor.

Vindolanda, the former Scotland, was poor in Roman times but because the fall of Rome, it became more developed and followed a divergent path to other provinces as Aksum (Ethiopia) where they were better settled feudal structures.

The legacy of the Roman republic survived until the Black Death and inclusive institutions were quickly adopted by free citizens.

VII. The Turning Point

In Elizabethan England were also rejected the technical innovations knitting machine Lee to not ruin the spinners. Because this required a process of creative destruction that would force Schumpeterian replace the old with the new. Politicians feared instability.

This chapter examines the importance of the signing of the Magna Letter by King John in 1215 to consult the barons before raising taxes and the creation of a council of 25 barons to force the king to fulfill. Although it was canceled, some consider it a step to pluralism. The difference is that year after parliament included merchants and rich farmers, not only to nobles. The Tudors created a centralized state and expropriated land to the Church. Later the Stuart wanted to be absolutist and could not.

VIII. Not on Our Turf: Barriers to Development

Talk about countries that hampered the development as a ban on the printing press in the Ottoman Empire, the reinforcement of absolutism in Spain led to the decline because there was no secure property rights and economic collapse to that there was no incentive to invest. In the case of Russia and Austria-Hungary, with Francis I, the rulers actively blocked any attempt to introduce technologies. And in China, in 1500, the Ching Dynasty distance impeded navigation just as Europeans were expanding in America and Asia.

The same happened with the absolutism of Prester John in Ethiopia who had insecure in the property rights because the emperor lands snatched every two or three years and whose institution was gult or feudal serfdom. In the nineteenth century, Ethiopia managed to stay independent and Melenik defeated Italy at the Battle of Adwa in 1896. Ras Tafari fell in 1935 but returned to the throne in 1941. Absolutist plan was followed in the country until 1978 and became the world’s poorest without light and subsistence agriculture.

The case of Somalia is worse because it has been dominated by six family clans structured payment groups diya (blood wealth) and legislated obligations by heer law. Political power is so widespread that almost is pluralistic but lacks the authority to impose a centralized state order and guarantee the property.

IX. Reversing Development

This chapter speaks about the genocide perpetrated by the Dutch in the Spice Islands in the seventeenth century, in the Moluccas, producing nail, mafia and nutmeg.

The Portuguese conquered Melaka in 1511 but failed to control the spice monopoly. Later the Dutch East India Company began signing exclusive contracts in Ambon that prohibit cultivate and banned others. They seized systems and labor taxes to get more performance.

In the Banda Islands, governed by city states and citizens’ assemblies, were massacred by the Dutch monopoly Coen to stay mace and nutmeg. Coen created a society of plantation there. In the remaining islands, pepper trees were cut. Following the destruction of its business, the area was doomed to exploitation and underdevelopment.

In Africa, there was slave trade that was bound for Africa itself first and then the sugar plantations of the Caribbean. In order to fill Europeans with slaves, there were wars and conflicts among Africans themselves, even there were laws to punishing with bondage every trifle. Following the abolition in 1807, traffic continued, although it started legitimate trade as palm oil and almonds. To increase plantings, kings Congolese and Ghanaian (Asante) forced the inhabitants to work coerced. Later on, South Africa created apartheid and the dual economy that prevented the native inhabitants concentrate on homelands or towns with small enough land to make a living independently and prevented them from access to education. In this way the Price of labor was cheapened.

In all cases there was the same pattern of looting by extractive institutions. The authors say that economic development is sometimes feeds the underdevelopment of others.

X. The Diffusion of Prosperity

It talks about the colonization of Australia by settlers who were prisoners and who achieved political rights. In the French Revolution, the introduction of inclusive institutions was not as peaceful but exportation allowed economic growth to countries like Belgium, Holland and several German states that were under Napoleon.

In Japan Meiji Revolution instituted westernized the country and out of the absolutism and feudalism of the shogun. The authors say that the roots of social inequality lie in the past centuries, when some countries adopted inclusive institutions and industrialization joined by creative destruction while others were stuck with absolutist regimes and commercial monopolies.

XI. The Virtuous Circle

This chapter talks about the virtuous circle. It takes as an example the Black Act of 1722 against cattle thieves’ nobles. Some were saved because the legal system in England was more certainty than before because I enjoyed the rule of law. Later the right to vote won, in accordance with the logic of virtuous circle that prevents abuse.

Another example is the destruction of trust in the United States or the preservation of the independence of the judges of the Supreme Court despite Roosevelt’s attempts to put people akin to their ideology. Instead, the authors say that Peron in Argentina related achievement and judges put the custom continued until Menem, which ratified. Argentina fell into a vicious circle, not virtuous.

XII. The Vicious Circle

The authors cite the example of what happened in Sierra Leone, which was left without a train because of the fear the rebellions have to the dictator. The same happened in Southern United States, where they endured marginalization of slavery a century after being abolished. That happened because the elites continued safe after the war.

The same happened also in Guatemala, where landowners forced to do hard labor to exploit coffee plantations. And the same happened in Ethiopia.

These are examples of what I call Michaels’s iron law of hierarchy, also called vicious negative feedback.

XII. Why Nations Fail Today

It mentions the Mugabe government in Zimbabwe and their luck to win the national lottery. Also talks about Stevens in Sierra Leone that impoverished the country and its successor Momoh that was even more exploitative. In addition, it mentions Colombia because despite its democratic elections, it does not have inclusive institutions.

This chapter does not forget North Korea and its absolutism. Or Karimov’s Uzbekistan and cotton business to the point that even the children work. However, privatization has also been initiatives in Egypt

XIV. Breaking the Mold

The authors talk about how to break the mold. They cite the success of Botswana, which became more egalitarian than the rest of the region because in the nineteenth century three leaders traveled to England to seek protection from Queen Victoria of England. The English only asked to install a train track and through this agreement could safeguard native diamond mines whose production reverberated throughout the village. Exemplified a trader contacted Botswana Railway Station South Africa still under apartheid, for a quote to ship a commodity and it turns out being charged four times as a target by the fact of being black, which discouraged any indigenous entrepreneurship.

The chapter also recalls the struggle for civil liberties in the U.S. in the 60s, as the secretary Rosa Parks refused to get up from a seat reserved for whites and after being reported there was a boycott of the bus company in Alabama, or the black college student who was the first to enroll in a university in the South and was escorted by 300 police until he graduated.

Another example was the reform in China in recent times as Mao and Deng Xiao Ping managed to reform the state from within to open the economy.

XV. Understanding Prosperity and Poverty

The last chapter focuses on China as its reforms undertaken to grow and IMF rejects introducing designs to shoehorn Washington consensus, privatization and anti-corruption measures but that the rulers of the countries only apply facade rescued. It mentions the independence of The Central Bank of Zimbabwe as an example, even though the director knew he could not go against the dictates of their president.

In addition, it mentions that foreign aid to poor countries have failed because in them there is no real democracy but function as absolutist regimes. It should be given if they meet conditions to liberalize markets. Also, it approaches the success of Brazil to democratize union activity after Lula Da Silva, who allowed greater market liberalization.

The Video Lounge

http://www.economist.com/blogs/freeexchange/2012/03/daron-acemoglu-why-nations-fail

The video shows an interview with PhD. Daron Acemoglu, economist and co-author of “Why Nations Fail”, with Ryan Avent from The Economist. Basically, the interview talks about the economic success or failure of nations and how is rooted in the health of political and social institutions.

http://video.mit.edu/watch/daron-acemoglu-on-why-nations-fail-10628/

The video shows an interview for MIT with PhD. Daron Acemoglu, economist and co-author of “Why Nations Fail”. Daron Acemoglu talks about the main idea of the book and why cultural explanations of prosperity fail. Acemoglu tells us his own interpretation of the history.

Personal Insights

What I think:

The authors are one of the most brilliant people around because they have classified the institutions as extractive or inclusive institutions. Also, they have showed us that those correspond to systems in which elite appropriates for the benefit of the work and the innovative capacity of the inhabitants, discouraging work. The inclusive create systems that encourage innovation, productivity and operations. They promote education, health, the rights of the individual and the certainty that they will be respected and not dependent on the will of the warlords. And, I think it is very interesting to learn how the past has affected many of the regions in the present.

If I were the author of the book, I would have done these three things differently:

1. I would have written the way to address the ideas to the public differently. The book presents different facts from the ice age era to the present and some of those facts were not developed for a public without economic background or knowledge, and the reason is because there are people that like economic/business relate it books but books easy to swallow.

2. I would have given and have designed solutions in order to help countries to be more prosper and richer. The book should not only show us theories about why nations are poorer than others, but it also should show us more concrete solutions to improve the welfare of the people of those countries.

3. Probably, I would have given more illustrations about the regions they were discussing in the book in order to compare their wealth, power, and prosperity. The authors gave us example of places like Colombia, Nogales, Sierra Leona, Zimbabwue, Somalia, and others but, how can I compare those regions to USA, UK, etc. if I do not know the living conditions of those places? There are people that have never been or heard about the places I previously mention. People can suppose how they are just by what they are reading, but I would be a good idea to recreate their imagination with some images.

Reading this book made me think differently about the topic in these ways:

1. The book makes me realize in how politics interfere in economical and administrative decisions. Politics has to intervene in the economy and society to create laws that apply to the same economy and society. The benefits that bring these laws are applied to the economy and society functioning live well and this can lead to economic growth and developments in the town for a better quality of life. But, if the political system of a country is corrupted and only politicians get benefits of the country’s prosperity, it would be a disaster for the country’s growth and for the quality of life of the residents.

2. Also, how some nations can be richer than others, even though there are in the same geographic location, have same culture, etc. Usually, we said countries are rich and the other poor because “some countries are good and others are bad”. The rich is rich because they work hard, have knowledge and education, are efficient and productive, and they have a good location. The poor is poor because they are weak, innocent, virtuous and vulnerable. The truth is that countries depend on a good political system in order to have a good development. It depends of the persons that govern, not the region. And, we have to take under consideration that most of the richest countries in the world are rich because for centuries they have had good governments that do not think for themselves, but for the rest of the people that live in the area.

I’ll apply what I’ve learned in this book in my career by:

1. I would use the knowledge I have gotten from the book and promote the use of inclusive system instead of extractive. Also, encourage participation of great people in economic activities and promote the use of their best skills. I feel that can be beneficial for the company and the country.

2. I would also take under consideration inclusive systems while working for a corporation. As a management major, I believe it is important to have a system that will protect individual rights. Also, implementing an inclusive system in your company can secure private property and encourage entrepreneurship. At the end the result is higher incomes and improved human welfare, which is beneficial to every company.

Here is a sampling of what others have said about the book and its author:

“This fascinating and readable book centers on the complex joint evolution of political and economic institutions, in good directions and bad. It strikes a delicate balance between the logic of political and economic behavior and the shifts in direction created by contingent historical events, large and small at ‘critical junctures.’ Acemoglu and Robinson provide an enormous range of historical examples to show how such shifts can tilt toward favorable institutions, progressive innovation and economic success or toward repressive institutions and eventual decay or stagnation. Somehow they can generate both excitement and reflection.” -Robert Solow, Nobel Laureate in Economics, 1987

“It’s the politics, stupid! That is Acemoglu and Robinson’s simple yet compelling explanation for why so many countries fail to develop. From the absolutism of the Stuarts to the antebellum South, from Sierra Leone to Colombia, this magisterial work shows how powerful elites rig the rules to benefit themselves at the expense of the many. Charting a careful course between the pessimists and optimists, the authors demonstrate history and geography need not be destiny. But they also document how sensible economic ideas and policies often achieve little in the absence of fundamental political change.”-Dani Rodrik, Kennedy School of Government, Harvard University

“Two of the world’s best and most erudite economists turn to the hardest issue of all: why are some nations poor and others rich? Written with a deep knowledge of economics and political history, this is perhaps the most powerful statement made to date that ‘institutions matter.’ A provocative, instructive, yet thoroughly enthralling book.” -Joel Mokyr, Robert H. Strotz Professor of Arts and Sciences and Professor of Economics and History, Northwestern University

“A brilliant and uplifting book-yet also a deeply disturbing wake-up call. Acemoglu and Robinson lay out a convincing theory of almost everything to do with economic development. Countries rise when they put in place the right pro-growth political institutions and they fail-often spectacularly-when those institutions ossify or fail to adapt. Powerful people always and everywhere seek to grab complete control over government, undermining broader social progress for their own greed. Keep those people in check with effective democracy or watch your nation fail.” -Simon Johnson, co-author of 13 Bankers and professor at MIT Sloan

“This important and insightful book, packed with historical examples, makes the case that inclusive political institutions in support of inclusive economic institutions are key to sustained prosperity. The book reviews how some good regimes got launched and then had a virtuous spiral, while bad regimes remain in a vicious spiral. This is important analysis not to be missed.” - Peter Diamond, Nobel Laureate in Economics

“Acemoglu and Robinson have made an important contribution to the debate as to why similar-looking nations differ so greatly in their economic and political development. Through a broad multiplicity of historical examples, they show how institutional developments, sometimes based on very accidental circumstances, have had enormous consequences. The openness of a society, its willingness to permit creative destruction, and the rule of appear to be decisive for economic development.” -Kenneth Arrow, Professor Emeritus, Stanford University, Nobel Laureate in Economics, 1972

All of these reviews that I have found about the book “Why Nations Fail” seem to be very similar to each other. Each reviewer seemed to have enjoyed this book and have recommended it by 100%. I definitely think this book should be read by everyone because the authors explain in detail the evolution of societies throughout the ages and how the economic development and growth of nations is affected it.

Bibliography

De Zárate, Francisco. (2012, September 2). Por qué fracasan las naciones. Retrieved from http://www.ieco.clarin.com/economia/fracasan-naciones_0_766723525.html

Dizikes, Peter. (2012, March 23). All the difference in the World. Retrieved from http://web.mit.edu/newsoffice/2012/why-nations-fail-0323.html

Gates, Bill. (2013, February 26). Why Nations Fail: The Origins of Power, Prosperity, and Poverty (Book Review). Retrieved from http://www.thegatesnotes.com/Books/Personal/Why-Nations-Fail

Green, Duncan. (2012, December 12). Why ‘Why Nations Fail’ Fails (Mostly): Review of Acemoglu and Robinson – 2012’s Big Development Book. Retrieved from http://blogs.worldbank.org/publicsphere/why-why-nations-fail-fails-mostly-review-acemoglu-and-robinson-2012s-big-development-book

Friedman, Thomas. (2012, March 31). Why Nations Fail. Retrieved from http://www.nytimes.com/2012/04/01/opinion/sunday/friedman-why-nations-fail.html?_r=0

Rueda, María Isabel. (2012, September 13). Por qué fracasan las naciones? Retrieved from http://www.drclas.harvard.edu/drupal/node/1351

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Contact Info

To contact the author of this article, “A Summary and Review of Why Nations Fail by Daron Acemoglu and James A. Robinson,” please email irma.zambrano@selu.edu or irmazambrano20@gmail.com.

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About the Publisher

A Summary and Review of Influence: The Psychology of Persuasion by Robert B. Cialdini

Fri, 03 May 2013 16:15:50 +0000

Cover via Amazon

Executive Summary

I feel that the reason that this book was written was to answer, “Why is it that a request stated in a certain way will be rejected, while a request that asks for the same favor just stated in a slightly different way will be successful?”

In nature and in people, we all have fixed-action patterns that cause us to go on automatic pilot or click whir as the author tells. The story goes that a mother turkey hears her baby go cheep cheep and she will take care of it. If she hears a polecat go cheep cheep she will take care of it even though it is her natural enemy. Besides the fixed action pattern there is usually a trigger and in this case it is the sound of the baby. In the case of people, it can be that they have an innate desire to be seen as consistent or that they feel they must do something for you since you did something for them or perhaps someone in authority is telling them to do something. We all have our triggers that put the principles of consistency, reciprocation, social proof, authority, liking and scarcity into play without us even realizing it.

We all have automatic behavior patterns that serve us well so that we don’t have to think about every little thing we do, but at the same time they can make us vulnerable to anyone who knows how to use them against us.

The Ten Things Managers Need to Know from Influence: The Psychology of Persuasion

1. What are the 6 weapons of influence? They are 6 automatic responses or short-cuts that we use for saying yes to requests. They can be used to our advantage or used to exploit us.

2. The principle of reciprocation states that we should try to repay, in kind, what another person has provided us. For example, if someone buys you lunch, you feel obligated to buy them lunch the next time.

3. The principle of consistency and commitment states that once we have made a choice or taken a stand we will encounter personal and interpersonal pressures to behave consistently with that commitment. An example would be of someone who is in a miserable marriage but won’t divorce because they made a public commitment in their oath “til death do us part”.

4. The principle of social proof states, one means we use to determine what is correct is to find out what other people think is correct. This is just like monkey see, monkey do. If we don’t know proper protocol we look to see what the majority is doing.

5. The principle of liking states that most people prefer to say yes to the request of someone they know and like. When people feel comfortable they tend be more positive, buy more, and obviously agree to more. So, if you want someone to comply to a request try to get on their good side.

6. What determines liking? Compliments, cooperation, association, similarity, contact, and physical attractiveness all aid in getting someone to like you. If managers have or can attain some of these qualities to better get along with employees, it will only aid in success for the business.

7. The principle for authority states that people tend to follow authority figures. We are taught from a very young age to respect our elders. Con artists exploit authority figures all of the time by dressing like them.

8. The principle of scarcity states that opportunities seem more valuable to us when their availability is limited. Anything with a dead line or a limited time offer makes it seem a little more important to us because of its time availability.

9. How can you use the principles to your advantage? Use the rejection-then –retreat technique for reciprocation in order to get the request you want. For commitment, get your target to write down their commitment to you because it makes them stick to it better. For social proof, let your target know which item is most popular and they’ll likely buy that one. For authority, act as though you are some big hot shot and you may get away with it. For scarcity, use limited time offers to up the value. With the liking principle all one must simply so is dish out complements.

10. Exploitation-The book talks about going with your gut when faced with possibility of feeling exploited by a commissioner. When something is wrong most people usually know something is up, you just have to make sure that you are attentive when you are in these situations.

Dr. Robert Cialdini Asw10 (Photo credit: Dave Dugdale)

Full Summary of Influence

The author, Robert B. Cialdini, discusses what makes us do the things we do. Why do we ask a question a certain way and are rejected but tweak the question and ask in a slightly different way and are successful? Why do we respond or react in certain ways?

The book is broken up into “weapons of influence”: reciprocation, commitment, social proof, liking, authority, and scarcity. The author shows us how these principles are used to exploit unsuspecting people by convincing them to comply, donate, vote, purchase, and etc.

Chapter 1

We all grow up learning and believing that certain situations should be handled certain ways and that certain people should be treated according to how they are viewed. We call this stereotyping but Cialdini, the author, says that we are preprogrammed and use the “click,whirr” formula. This means that, “click” and the appropriate automatic internal tape is activated; “whirr” and out rolls the standard sequence of behaviors. We respond this way because something triggers us to do so; it’s the way the preprogrammed tapes are activated. Cialdini called this aspect of the formula the trigger feature. He says that if you recognize this, you can use it to your advantage by getting people’s internal tapes to play at the wrong time. He demonstrates with a few examples.

An experiment done by Harvard social psychologist, Ellen Langer, proves that people are more successful at getting favors done for them when they provide a reason rather than without one. She demonstrated this unsurprising fact by asking a small favor of people waiting in line to use a library copying machine: Excuse me, I have five pages. May I use the Xerox machine because I’m in a rush? 94% let her skip ahead. Compare this success rate to the results when she made the request only: Excuse me, I have five pages. May I use the Xerox machine? This time only 60% complied with her. Now when you see the first part of this study, you automatically assume that the reason of the decreased percentage between questions was because of the difference in the additional information but the rest of the study proves otherwise. This time instead of using a real reason for compliance, Langler’s third type of request used the word “because” and then, adding nothing new, merely restated the obvious: Excuse me, I have five pages. May I use the Xerox machine because I have to make copies? The result was nearly all (93%) agreed, even though no real reason was given and no new information was added to justify their compliance. Langer proved our automatic response and that the trigger factor here was simply the word, “because”. Click, whirr! Chapters 2-7 are the actual “weapons of influence” that show the click, whirr formula in use and how trigger features can be used to our benefit and what to pay attention to in order to avoid being the victim of them.

Chapter 2

In chapter two Cialdini describes the first and one of the most potent weapons of influence around us as being the rule for reciprocation. The rule states that we should try to repay, in kind, what another person has provided us. A small scale example of this rule is from a university professor a few years ago who implemented a Christmas card experiment. He sent the Christmas cards to a sample of perfect strangers. He said that he expected some reaction but was not expecting what he got in return-holiday cards addressed to him came pouring back from people who had never met nor heard of him. They received his holiday greeting card, click, and, whirr, they automatically sent one in return.

It’s human nature that we feel obligated to return a favor even when a favor is placed upon us that we didn’t ask for. This “power” is one of the reasons reciprocation can be used so effectively as a device for gaining another’s compliance. Cialdini states, “The rule possesses awesome strength, often producing a “yes” response to a request that, except for an existing feeling of indebtedness, would have surely been refused.” Dr. Dennis Regan of Cornell University performed experiments to test this “power”. The first was the impact of the reciprocity rule on compliance. Regan set up a scenario where his assistant, Joe, was posing as a rater of some paintings as part of an experiment on “art appreciation”. Another person was in on the experiment as an unsuspecting guinea pig. They had a two minute break and Joe came back to the room with two cokes for him and the subject in one scenario and came back empty handed in the other. Joe then asked each subject to do him a favor by purchasing some raffle tickets from him so that he could win a new car and if he sold the most tickets he could win a fifty dollar prize. The major finding of the study was that Joe was more successful in selling his raffle tickets to the subjects who had received his earlier favor. This feeling that they owed him something apparently caused them to buy twice as many tickets as those who had not been given the prior favor.

Regan was also interested in how liking for a person affects the tendency to comply with that person’s request. He came to know that for those who owed Joe a favor from the coke that was given to them, it didn’t matter whether they liked him or not because they felt they had an obligation to repay him, and they did. Those who disliked Joe, in that condition, bought just as many tickets as those who did like Joe. The reciprocation rule was so strong that it overwhelmed the liking for the requestor, a factor that would normally affect the decision to comply.

The reciprocation rule also enforces uninvited debts. For example, a certain religious group solicits donations in airports by forcing a flower upon unsuspecting people, either by pressing it in their hands or quickly pinning it on their shirt. When the people say they don’t want it the religious group insists that they keep it as a gift and then ask for a donation. The unsuspecting people now feel obligated to give some amount of money to the group because of the “gift” that was put upon them.

The reciprocity rule can also trigger unfair exchanges that allow it to be exploited for profit. The rule demands that one sort of action be reciprocated with a similar sort of action. A favor is met with another favor; it is not to be met with neglect, and certainly not with attack. For example, some girls do not let guys buy them drinks in a bar because they don’t want there to be tension of obligated sexual favors.

Reciprocal concessions are the second way to implement the reciprocity rule to get someone to comply with a request. It’s called rejection-then-retreat technique. Suppose you want someone to agree to a certain request, one way to do this is to first make them a larger request that they will likely turn down. Once they turn down the request, you make the smaller one, the one you originally wanted them to comply with in the first place. The way to say no to the reciprocation weapon of influence is to try to recognize who is initiating the favor and what their intentions are.

Chapter 3

Chapter three lectures on the second weapon of influence- consistency and commitment. Why is so powerful a motive? Society recognizes consistency as being valued and adaptive. Cialdini says, “A high degree of consistency is normally associated with personal and intellectual strength. It is at the heart of logic, rationality, stability, and honesty.” Because it is typically in our best interest to be consistent things can get very habitual for us, even when it isn’t the sensible way to be. Blind consistency, however, allows for shortcuts through life. We don’t have to think about pros and cons of everything, we simply just do it because it was consistent with an earlier decision. Mindless/automatic consistency also helps to ease the mind by knowing that once the final decision is made that everything will be okay for a little while because there is no more worrying about what decision to make anymore. Exploiters, however, will use this automatic reaction to their requests for our compliance. How do they exploit us? They know what the click is that will, in turn, make us whirr. The click is commitment because once a stand is taken there is a natural tendency to behave in ways that are stubbornly consistent with the stand.

A good example of this in the book is when a toy store runs ads of the hottest new toy right before Christmas and demand spikes. The kids ask their parents for the toy for Christmas and when the parents go to the store to get the toy it is in “short supply”. The parents pick out another toy for the kids but because the parents made a commitment to their children, they go buy the toy after Christmas when the store, miraculously, has plenty in stock. This is no coincidence; the toy store knows the power of commitment and uses this as a strategy to boost sales after Christmas.

Ralph Waldo Emerson said, “A foolish consistency is the hobgoblin of little minds.” This means that consistency, even though it’s good, can become automatic and its force can be used to exploit you. How do you avoid exploitation? The same way you do in reciprocation; you will get a feeling that the person who is trying to get you to comply isn’t being genuine. When you get that gut feeling, think about the commitment principle and apply it to your situation. Train yourself to be attentive and you will be able to avoid these types of scenarios completely.

Chapter 4

Walter Lippman said, “Where all think alike, no one thinks very much.” That quote directly correlates with the principle of social proof which states that, one means we use to determine what is correct is to find out what other people think is correct. There are many studies of social proof. Canned laughter is a perfect example of this because we laugh when we hear it on television even though we know it isn’t real. A night club that had a particularly long line had social proof that the club would be worthwhile. Kids who were deathly afraid of dogs would overcome their fear if they saw other kids playing with the dogs, even if it was just a video. The closer in age of the kids on the video to the fearful child, the greater the impact was. The same sort of exposure process was done to unsociable children. They were shown a 23 minute video of 11 scenes where an isolated child slowly became more active with others until it finally was able to join in with other kids. The children who watched the video, just once, became very sociable. This shows how powerful a force social proof is if it can alter a socially awkward child’s way of thinking towards interacting with others.

Cialdinin states, “When we are unsure of ourselves, when the situation is unclear or ambiguous, when uncertainty reigns, we are most likely to look to and accept the actions of others as correct.” Miss Genovese was stabbed to death while 38 people witnessed it. No one did anything because everyone was thinking that someone else had probably reported it already. Everyone around, however, was looking for social proof on what to do. So, if you ever need help in the midst of a group, make sure you call someone out directly and don’t just yell help in hopes of someone doing so because they’re all thinking someone else already has.

When a suicide makes the front page of a paper, the social proof can be frightening. Research shows that the number of people who die in commercial air-lines increases by 1000% and automobile accidents spike. This happens because some people feel that when bad things happen that they should just end everything too. People become paranoid and start making safety mistakes in their jobs. This causes failures in cars, planes, boats, etc. and a rise in deaths. When an airplane pilot calls it quits they will make sure that it looked like an accident so that their loved ones can get insurance money and possibly save the family from embarrassment. This is called the Werther-Effect, rates of suicide increase in a surrounding the geographical areas where a front page suicide was highly publicized. This unsettling act of social proof shows us that people decide how they should act based on how some other troubled person has acted. Research found that, on average, 58 more people kill themselves in the two months after a front-page suicide. The wider the publicity of the suicide, the more people that kill themselves.

Chapter 5

Clarence Darrow said, “The main work of a trail attorney is to make a jury like his client.” It is unsurprising to many that most people prefer to say yes to the request of someone they know and like which brings us to the principle of liking. How would a Tupperware party fit into this principle? It is the “quintessential American compliance setting”. Reciprocity-you get prizes for games played at the beginning of the party and everyone gets a prize. Commitment-everyone is urged to talk about how much they love their Tupperware they currently own. Social proof-once the buying begins it makes you feel that the product is good and you need more. Finally, liking-your friend asked you to have the party and if your friends buy they know you will get more hostess favors.

Going along with the liking principle, research shows that we automatically assign favorable traits as talent, kindness, honesty, and intelligence to good-looking people. We make these judgments, most of the time, being unaware that attractiveness plays a role in the process. Good-looking doesn’t necessarily mean good but we somehow see it that way and it is present in our legal system. Research shows that attractive men receive significantly lighter sentences. It is very noticeable, in society today, that pretty people have huge social advantages. Teachers even expect cuter kids to be more intelligent than those who aren’t as cute.

“We tend as a rule to believe praise and to like those who provide it oftentimes when it is clearly false. In fact positive comments produced just as much liking for the flatterer when they were untrue as when they were true.” That is true but we must also look at the other end of the spectrum when you are continually exposed to someone who is unpleasant. That constant negative condition leads to less liking. It’s human nature for a person not to like someone because of the unpleasant nature of their news and that’s why advertisers try to connect themselves or their products with things that we like.

Research shows that we assume that we have some of the same personality traits as our friends. You like things/people that are most like you so it only makes since that people naturally root for their own sex, culture, and locality. Whoever you root for represents you, so when that contestant that you voted for on American Idol goes through to the next round, you win!

Make sure you recognize those who try to use the liking principle against you and make you do things you wouldn’t ordinarily do. Car salesmen are bad about that so be aware and make sure you’re complying to requests at your own free will.

Chapter 6

The principle of authority states that when a person in a position of authority tells you to do something, most of the time you do it. We were brought up to respect and obey our elders so we all have some deep-rooted notion to “just do” when an authority tells us to, without any other considerations. A doctor had prescribed R EAR drops to a patient with a sever ear infection. Neither the nurse nor the patient questioned the doctor and the drops were injected into the patient’s rear! The doctor wrote R EAR for Right Ear but it didn’t matter because the authority had spoken.

Sometimes you only have to appear as though you are an authority to get people to do what you want. Those types of people are called con-artists and can exploit you by having fake titles, clothing, and other authoritative accessories. Some people who are an actual authority try to cover it up when they don’t need to be in that position because that title can make others act differently around you. A professor hid his title because he noticed people would sensor themselves around him and he didn’t like that.

When others see you as an authority they automatically add 2.5 inches on you because authority figures are thought of as tall. Clothing deals a lot with authority; showing less skin makes you seem more legitimate. Wearing glasses makes you seem more intelligent and the color navy makes you seem more business-like.

It’s obviously pretty easy for someone to act like an authority to get one over on you, but the more aware you are of these people, the less likely you are to get exploited.

Chapter 7

“The way to love anything is to realize that it might be lost.”-G.K. Chesterson. The principle of scarcity states that opportunities seem more valuable to us when their availability is limited. A good example of this is when you’re in the middle of talking to someone and they just cut you off because their phone started ringing. That call could’ve been really important because it was scarce, it didn’t matter how rude they thought they were in their mind. Another example would be that homeowner who are told that they could lose money by not installing proper insulation were more likely to do so rather than those who were told they would save money by installing proper insulation in their house. Retail uses a limited tactic to get you to buy. They only put out so much merchandise so it makes you feel you need to buy it right then and there.

Summary

We’ve gotten so accustomed to our short-cuts in life that we tend to only see one piece of available information. With the hectic schedules of our day to day lives we need those short-cuts, however, and when someone tries to use them against us we should be aware of what they’re doing and know how to retaliate.

The Video Lounge

This video gives a little background on Robert Cialdini and allows him to briefly touch on the 6 weapons of influence and their meaning. A few ads will play throughout to help better explain a particular concept Dr. Cialdini is speaking on.

Personal Insights

I think that Robert B. Cialdini is one of the most brilliant people around because he took everyday concepts that we normally overlook and showed us how they were being used to exploit us and how we can prevent it. He broke down the reasons we are influenced into 6 principles of reciprocation, commitment and consistency, social proof, liking, authority, and scarcity. Once you read how he explains we are influenced it makes you more aware of the power of these principles. Using them as short-cuts for everyday life is efficient but it made me realize that I should be more attentive to all other available external information when I find myself in those influential situations so that I am able to defend myself properly.

If I were the author of the book, I would have done these three things differently:

1. If I were the author of this book I would definitely put more reader’s reports in it. The reports were real life scenarios sent as letters to the author. The examples in that the author gave were good but it always helps when there’s something you can actually relate to.

2. The book is over 300 hundred pages and could’ve been summed up in about 20. A lot of the topics were just overkill and I had to drudge through a lot. The values learned from the principles were very valuable if you could get through all of the clutter.

3. I would’ve taken out the “How to Say No” sections in each chapter because they were just redundant. Being able to say no to commissioners was the same for all principles, that being you need to recognize and be aware of the people requesting favors from you and use your gut to determine their intentions.

Reading this book made me think differently about the topic in these ways:

1. I never thought about how I was actually influenced to do certain things. Cialdini said that these principles were automatic responses for us to cut through the everyday hassles and I now realize it in hindsight. It made me question if there were other preprogrammed things in my life that I should pay more attention to.

2. Now that I’m aware of the exploitation that can occur from those taking advantage of our short-cuts (6 principles), it makes me wonder about the intentions of some whom I have complied with. I will, most likely, over think a favor from now on.

3. If changing the way you ask a question completely changes another person’s attitude toward their response I will always consider “influencing” a strategic tactic. I never gave it much thought before but when I thought of the word influence and what it meant, I immediately thought of bribery and that was it. My thought process of the word has been completely wiped out and transformed into something I now consider an art form. I strongly believe that there should be a business elective dedicated to the teachings of persuasion and influence rather than personal selling.

I’ll apply what I’ve learned in this book in my career by:

1. Because I work in sales this book will definitely come in handy. The rejection-then-retreat technique was a good sales tactic for me to learn. It states that to increase your chances for someone to agree to a certain request, offer them a larger request, one that they will most likely turn down. After they refuse, make the smaller request that you were initially interested in all along and most of the time they will comply with it.

2. I believe that because I can now acknowledge influential principles it will help me to advance in my field of marketing. Most marketing careers are based on getting a motion out of others and if I know what makes them tick then I will be one step above the rest.

3. If I become a manager of some sort, I plan to teach my staff how they can apply these principles to their life. I believe the more people who know about the power of the influences will aid in the decrease of exploitation.

Here is a sampling of what others have said about the book and its author:

There have been nothing but rave reviews for this book; I even searched for negative comments but nothing was published that I could find. Every review was in sync with one another about how strongly they felt that this book is a must read. If you plan to go into sales or have a degree in marketing, all critics felt that it would be in your best interest to read this book especially if you want to get ahead and stay ahead in the ever-changing business world. George Abler, executive partner with Garnter Executive Programs, says that he was able to continually relate the principles and examples to experiences in his life (Ambler, 2012).

All review also concurred that they wouldn’t have expected anything less from Dr.Robert Cialdini, judging by his first two books: Yes! 50 Scientifically Proven Ways to be Persuasive and Influence. They all admit to have been in a situation of influence where the advice of Dr. Cialdini would’ve been nice to have at the time. The principles taught are considered necessary, by most of the critics, to have in everyday life, not just for business aspects. They all thoroughly enjoyed the book, as did I, and would highly recommend it to anyone wanting to collectively advance or better themselves.

Bibliography

Ambler, G. (2012, September 5). Book Review: Influence – The Psychology of Persuasion. George Ambler – Leading in Turbulent Times. Retrieved April 15, 2013, from http://www.georgeambler.com/book-review-influence-the-psychology-of-persuasion/

Cialdini’s Six Principles of Influence – Communication Skills Training from MindTools.com. (n.d.). Mind Tools – Management Training, Leadership Training and Career Training. Retrieved April 15, 2013, from http://www.mindtools.com/pages/article/six-principles-influence.htm

Cialdini, R. B. (2007). Influence: the psychology of persuasion (Rev. ed. ; 1st Collins business essentials ed.). New York: Collins.

Reeves, J. (2009, June 29). Influence: The Psychology of Persuasion Book Review. Kaizen Marketing, Inc.. Retrieved April 15, 2013, from influence-the-psychology-of-persuasion-book-review

Rieck, D. (n.d.). Influence and Persuasion: How to Trigger the “Yes” Response. Direct Creative. Retrieved April 15, 2013, from http://www.directcreative.com/influence-and-persuasion-how-to-trigger-the-yes-response.html

Stephens, R. (2012, August 20). Influence: The Psychology of Persuasion Book Review | Ryan Stephens Marketing. Ryan Stephens Marketing: Bulding Intimate Business Relationships. Retrieved April 25, 2013, from http://ryanstephensmarketing.com/blog/influence-the-psychology-of-persuasion-book-review/

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Contact Info

To contact the author of this article, “A Summary and Review of Influence by Alexi Ingraffia,” please email alexi.ingraffia@selu.edu or lexi.ingraffia09@gmail.com.

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A Summary and Review of Quiet by Susan Cain

Fri, 03 May 2013 12:03:01 +0000

Executive Summary

Susan Cain’s book Quiet: The Power of Introverts in a World That Can’t Stop Talking, is an informative and passionate exploration into the world of the introvert. She combats the misconceptions of introverts as anti-social, pathological, misanthropes by focusing on the positive attributes that add to the tapestry of human personality. Cain offers valuable knowledge of how introversion has shaped our perceptions on personality by exploring the insight offered by scientific fields such as neurobiology, psychology, physiology, and psychiatry. She also offers a personal touch, by sharing a few stories of her experiences as an introvert as well as anecdotes about notable historical figures who were considered introverts and how they shaped our world.

The book is divided into four parts. Part One: The Extrovert Ideal, explores the development of America’s perception from The Culture of Character to the Culture of Personality. The Culture of Character emphasized attributes such as citizenship, duty, work, honor, and integrity. The Culture of Personality focused on attributes such as attractive, stunning, dominant, forceful, and energetic. The myth of charismatic leadership is addressed. Cain dispels the idea that extroverts are necessarily poised for leadership and that those who are quick and assertive may not always make the best business decisions. Cain also discusses how an environment that places extreme focus on collaboration (the New Groupthink) can stifle creativity. She also discusses the setbacks of a widely accepted collaborative process, brainstorming.

Part Two, titled “Your Biology, Your Self?”, deals with the nature versus nurture controversy (Are we a product of our innate physiological tendencies, our environment, or both?). Cain utilizes studies performed in scientific fields such as psychology and neurobiology to evaluate the characteristics associated with introversion and extroversion. She mentions that certain parts of the brain, such as the amygdala help control the processing of chemicals such as dopamine that regulate how people deal with social situations.

Part Three, “Do All Cultures Have An Extrovert Ideal?” Cain focuses on the stark contrasts between the quiet, introspective, and group oriented Asian culture and the individualistic, out-going oriented American culture. Cain mentions how Asians experience culture shock when dealing with American customs and the difficulty in adapting to those customs. Cain also mentions the idea of “soft power,” which is considered to be leadership “by water rather than fire.” It is a skillful and subtle way of exercising persistence without aggression in order to achieve compromise.

Part Four, “How to Love, How to Work,” discusses how society as a whole can learn to adapt better to introversion and also serves as advice to introverts on how to adapt themselves to a world saturated with extroversion. Cain mentions how people can help bridge the communication gap between others of the opposite personality type. Cain also discusses how parents of introverted children can help cultivate their personalities by fostering an environment of acceptance.

The Ten Things Managers Need to Know from Quiet

1. An extrovert is defined as a person who directs one’s attention or interest outward or to things outside the self, and an introvert is defined as a person who is concerned with their own thoughts and feelings. A common misconception among people is that introversion is considered a hindrance rather than a quality that is just part of what makes people human. Their disposition is often misconstrued as shyness, social phobia, or anxiety disorder, but that is just the opposite. Introverts are not anti-social, they generally do not prefer one-on-one conversations as opposed to intense social situations. They are also tend to be more individualistic. It’s important to realize that introverts are not anti-social, and extroverts are not pro-social. They are differently social. In other words, they react differently to social situations based on different factors such as environment and physiological makeup.

2. One of the best things that can be done for introverted children is working on their reactions to new situations. Introverted children are considered to be highly sensitive to new events, people, and places. When exposing them to these different situations, be careful not to mistake the child’s caution for an inability to relate to others. The child is recoiling from novelty or overstimulation, not form human contact. Expose your child to new situations and people gradually-taking care to respect their limits. Applaud their efforts when they take initiative to try things that they may have been afraid to try, and above all, do not instill in them that being shy or bashful is in any way shameful or socially unacceptable.

3. Group brainstorming may serve as a means to help facilitate free exchange of ideas, there are some drawbacks to consider. Psychologists identify three distinct reasons whey group brainstorming ultimately does more harm than good. First, is the issue of social lodging: in a group, some individuals tend to sit back and let others do the work. Second, is production blocking: only one person can talk or produce an idea at once, while the other group members are forced to sit passively. Finally, (and probably the most damaging) is evaluation apprehension, meaning the fear of looking stupid in front of one’s peers. These factors serve as a hindrance rather than a help for those who want to exchange ideas freely.

4. Closely related with evaluation apprehension, group influence has a profound effect on decision making in groups. Studies performed by Solomon Asch and others showed that although people may claim to have used rational and evidence based methods to arrive at decisions, they were actually manipulated by their peers for fear of being singled out as an anti-conformist. That’s not to say that group collaboration should be done away with; we should strive to have a balance. We should actively seek out mutual introvert-extrovert relationships, in which leadership and other tasks are divided according to people’s strengths and weaknesses. Create settings in which people are free to circulate between interactions and disappear into their private workspaces when they want to focus.

5. In order to bridge the communication gap between introverts and extroverts, both sides need to be sensitive and receptive to each other’s social needs. For example, when the author talks about resolving conflict between couples that have polar personalities, it’s important to remember that each person may react to conflict differently. Introverts tend to be conflict avoiders, while extroverts tend to be more at ease with a confrontational style of disagreement. The introvert, for example, may perceive anger exerted by an extrovert as an attack and not as a passionate display of expression, and as a result, the person may shut down. The extrovert, on the other hand may see the introvert’s perception of being attacked as a form of shutting down. These are totally opposite approaches, so they are bound to create conflict.

6. Deliberate practice is a process that is used by people to enhance a newly acquired skill, improve athletic or team performance, and to improve reading, writing, and interpersonal communication. The process entails identifying tasks or knowledge that is just out of your reach, striving to upgrade your performance, monitoring your progress, and revising accordingly. This process is best conducted alone for the following reasons: First, It takes intense concentration, and the other people can be distracting. Second, it requires deep motivation, often self-generated. Third, and most importantly, it involves working on a task that is most personally challenging.

7. There is a misconception that those who are the most assertive and eloquent in group discussions necessarily have the most insightful ideas. For example, when the author interviewed one of the students from Harvard Business School, Don Chen, he told her about a role-playing game called the Subarctic Survival Situation, in which students are divided into teams and asked to imagine that their group has salvaged fifteen items from a plane crash. They rank them in order of importance to the group’s survival first individually then as a team. Then they score those rankings against an expert’s, and finally they group watches a tape of their discussion.

One of Don’s group members had extensive knowledge about the situation, but his opinions were drowned out because he expressed his views too quietly. The point is that opinions that were the most dynamic or talkative person may not always have the best idea, and that leadership styles that value quick and assertive answers over quiet, slow-decision making may not always be the best approach.

8. Reward sensitivity can play an important role in how businessmen make their decisions. Reward sensitivity motivates us pursue goals like risky business ventures, s money, social status, and influence, and it also may motivate us to pay more attention to warning signals. There is a stark difference in how extroverts and introverts respond to reward sensitivity. Neuroscientists have identified that high activity in the part of the brain referred to as the “reward system” (the orbitofrontal cortex, the nucleus accumbens, and the amygdala) in which neurons transmit information through a neurotransmitter via a chemical called dopamine. Dopamine is the reward chemical released in response to anticipated pleasures. The more responsive the brain is to dopamine the more reward sensitive a person will most likely be. Over sensitivity to rewards can be disastrous for business owners; The AOL-Time Warner merger, which wiped out $200 billion of Time Warner shareholder value, is a prime example.

9. Self-monitoring is a term for a psychological trait coined by psychologist Richard Lippa when he conducted experiments to monitor how well introverts can pose as extroverts. Those who self-monitor their behavior are highly skilled at modifying their behavior based on the social demands of a situation. They look for and respond to social cues. In contrast, low self-monitors have a smaller arsenal of social behaviors for their use. They are less sensitive to social cues. The issue is an ethical one: Should you stay true to your personality or should you just fake it? Supporters of this type of behavior see it as a way accommodate to different situations. Because of the phenomenon called behavioral leakage, in which our true selves seep out via unconscious body language, there are limits to how we can control ourselves.

10. With many personality traits, there is the issue of nature versus nurture: Are out personalities the product of our circumstances, our genetics, or both? The short answer is that we can stretch our personalities, but only to a certain limit. The great thing is that in spite of our genetic makeup, we can shape our own destinies. We can work to preserve the parts of our character we find most beneficial and improve upon or discard those that dislike.

Full Summary of Quiet

Chapter 1: The Rise of the “Mighty Likable Fellow”

Cain describes how America became known for its fixation upon the idea of extroversion. She chronicles a notable figure in the public speaking arena, Dale Carnegie, and his metamorphosis from a humble, beginnings as a farm boy in Missouri to a prominent and distinguished authority and how he shaped America from what historian Warren Susman called a Culture of Character to a Culture of Personality. Cain describes this stark difference: “In the Culture of Character, the ideal self was serious, disciplined, and honorable. What counted was not so much the impression one made in public as how one behaved in private…But when they embraced the Culture of Personality, Americans started to focus on how others perceived them.” (Cain, 21). This shift in cultural perception was due in part to the rapid industrialization, big business, urbanization, and mass immigration. Society was such that “Americans found themselves working no longer with neighbors but with strangers. “Citizens” morphed into “employees,” facing the question of how to make a good impression on people to whom they had no civic or family ties.” (Cain, 22). The psychological concept of the Inferiority Complex ran rampant during the craze of extroversion. This term was used to describe those who were insecure, passive, and uncompetitive; it was considered a grave liability in an increasingly competitive society. To be socially anxious was perceived to be an affliction that led to societal mores such as alcoholism and suicide. Those who were confident and personable were considered to have great success potential. Extroversion has been prized by our modern society, and is considered the ideal attribute that leads to success.

Chapter 2: The Myth of the Charismatic Leadership

Cain describes the wide mix of excitement, angst, and loneliness when she attends a seminar hosted by motivational guru Tony Robbins. She describes Robbins as having a hypnotic temperament-a bind of extroversion-on-steroids characterized, one, by exuberant, upbeat, over energetic, and overconfident traits that are consistent with the ideal salesman; the sales pitch was extroversion. Every interaction should be “a high stakes game in which we win or lose the other person’s favor” (Cain, 38). The more confidence that people can exude, the better people can sell themselves. Cain makes an interesting point in that “At the outset of the Culture of Personality, we were to develop an extroverted personality for frankly selfish reasons…But nowadays we tend to think that becoming more extroverted not only makes us more successful, but also makes us better people (Cain, 42). Cain visits the Harvard Business School, an institution known for its highly extroverted environment. According to the students she interviewed, being assertive is an important attribute to have, even when you don’t have all the facts; this is a sort of Catch 22. Should you act with the utmost confidence and make decisions based on incomplete information, potentially leading those who follow you into disaster, or should you hesitate in your decisions and lose the trust and momentum of your colleagues and potential investors? The student’s social and academic results depend upon how boisterous and opinionated you are. According to Cain it’s considered problematic when students do not voice their opinions. Socializing is imperative in and out of the classroom. In group discussions, the most rational and evidence based suggestions can be discarded because they are not voiced with enough assertiveness. The misconception is that assertiveness of opinion directly correlates to validity or soundness, but that may not always be the case.

Chapter 3: When Collaboration Kills Creativity: The Rise of the New Groupthink and the Power of Working Alone

Cain discusses the importance of creativity and how over-emphasizing group interaction can stifle it. Cain offers a critique of the cultural climate that claims to endorse creative individualism, but the phenomenon of the New Groupthink poses a problem. Cain exclaims that “The New Groupthink elevates teamwork above all else. It insists that creativity and intellectual achievement come from a gregarious place.” (Cain, 75). This attitude is emphasized from face to face interactions and team building exercise. This has bled over into the public school system. Critics have claimed that this style of teaching reflects a culture where people respect others based on their verbal abilities and not originality. Supporters encourage this style because cooperative learning gives students the tools that are in demand in the business world. The New Groupthink according to Cain arose out of the increase in exchange of ideas that came with the advent of the World-Wide Web, which is ironic because it was considered a medium for introverts, but Cain criticizes this saying that, “We failed to realize that what makes sense for asynchronous, relatively anonymous interactions of the Internet might not work as well inside the face to face, potentially charged, acoustically noisy confines of an open office.” (Cain, 79). In studies conducted by research psychologist Andrew Ericson, those who work in solitude are more likely to obtaining information and improving performance. This was because of what is called Deliberate Practice, in which a person identified points of improvement, work to improve those points monitoring and modifying progress accordingly. Cain mentions that this is effective for three reasons: It takes intense concentration; it requires deep motivation, often self-generated and; it involves working on a task that is most challenging to the individual. The point being is that space is vital to creativity. One of the most innovative ways to help resolve the problem of social judgment was the development of the concept of brainstorming by Alex Osborn. He believed that groups that were not bound by peer pressure made better ideas. Although brainstorming is considered popular because of its social benefits, there are some drawbacks that lead to failure. The fear of judgment was demonstrated by experiments performed by Solomon Asch on the dangers of group influence. The question that needed to be answered was “whether people conformed despite knowing the group was wrong, or whether their perceptions had been altered by the group; the conclusion was that group influence plays an important part. That’s not to say that group collaboration is altogether debilitating. The key to solving the problem is to create a healthy balance. Cain suggest that “we should actively seek out symbiotic introvert-extrovert relationships in which leadership and other tasks are divided according to people’s natural strengths and temperaments.” (Cain, 93)

Chapter 4: Is Temperament Destiny? Nature, Nurture, and the Orchid Hypothesis

The author recounts a story when she had to give a presentation to business clients. She tries hard to convey a sense of easiness and self-confidence, but the fear and trepidation still looms in her. She poses the question, “Are they (personality traits that tend toward introversion) the result of “nurture”-the way I was raised? Both of my parents are soft-spoken, reflective types; my mother hates public speaking too. Or are they my “nature”-something deep in my genetic makeup?” (Cain, 99). Cain mentions a study conducted by developmental psychologist Jerome Kagan which was a “series of groundbreaking longitudinal studies” which “documented their psychologies and personalities” (Cain, 99). The study involved exposing babies to various stimuli such as recorded voices, popping balloons, and inhaled cotton swabs. Those that reacted violently were termed “high reactive” which consisted of 20 percent of the participants, and those that had little reaction were termed “low reactive” which consisted of 40 percent of the participants. The remaining 40 percent fell in between those extremes. Kagan predicted that those in the high reactive group would most likely develop into quiet teenagers. Follow-up tests were conducted with different people and stimuli at different ages (two, seven, and eleven years of age). Some of the children and parents were interviewed in regards to their personal experiences. Cain describes some of the scenarios: “Did they prefer one or two close friends to a merry band? Did they like visiting new places? Were they risk takers or were they cautious? Did they consider themselves shy or bold?” (Cain, 100). The results of Kagans study were surprisingly conclusive. Those that were extremely reactionary and sensitive to the stimuli “develop serious, careful personalities,” and those that displayed a more calm and relaxed attitude as infants “were more likely to become relaxed and confident types.” (Cain, 100). Kagan also measured their heart rates, blood pressure, finger temperature, and other properties because of their relation to an organ called the amygdala. The amygdala is considered to control the emotional aspects of the brain that receive information from the senses and informs the rest of the brain and the nervous system. It helps to detect new or threatening aspects in the environment which contributes to the fight or flight responses. Kagan’s conclusion was that the high reactive infants were such because their amygdala was stimulated in response to what they perceived as an intense environment, and the low reactive infants displayed their relaxed behavior not because they were inherently introverts, but because they were not as stimulated by the things around them. The point of the study was to dispel the misconception that extroverts were necessarily considered pro-social, meaning that they were more apt to interact with others, and introverts were disparaged as people who were aloof and didn’t like interacting with people. High reactive children tended toward an alert attention personality where they focus more intently and evaluate decisions more carefully and exercise deep reflection when making observations, especially when around others and are vested more emotionally, but were these results conclusive? Was the entire introversion versus extroversion personality question solely based upon the reactions a result of our nervous system? Kagan initially thought that personality was a result of nurture and not something that was innate. Kagan discussed with Cain that a multitude of environmental factors that work independently or in connection to the nervous system. One theory suggested by biologist E.O. Wilson was that the fear of public speaking was an evolutionary byproduct of early human ancestors. Cain offers her own insight into this controversy: The interaction of our genetic makeup with our personal experiences shape who we are. She poses the question, “To what degree is our temperament destiny?” (Cain, 109). She alludes to the theory of gene environment interaction which basically states that people who inherit certain traits seek out life experiences that reinforce those traits. These people are termed orchids, which are people affected by positive and negative experiences.

Chapter 5: Beyond Temperament

Cain expands upon the nature versus nurture issue by discussing experiments conducted by Dr. Carl Schwartz; he wanted to determine whether the results discovered by his predecessor Kagan were apparent when measuring brain activity. Schwartz conducted his experiments by exposing his patients to a series of pictures while under an MRI scanner to evaluate brain function. What he found, according to Cain, was similar to the results found in the Kagan experiments; high and low reactive states are present in adults. Personality was malleable. Cain mentions the rubber band theory of personality; our personalities are shaped by environmental, social, and physiological factors but only within our physical limits. Cain mentions that during points of when the amygdala is working in response to the fear and anxiety one feels when, for example, meeting strangers at a party, the prefrontal cortex works to soothe those unwanted fears. It is a balance between our emotions and our brain’s ability to deal with those emotions. Cain discusses the story of one of her clients, Ester, who was a tax lawyer that was an introvert who although she was knowledgeable about her profession, she had trouble relaying that knowledge in a public setting. This is because the level of stimulation she experiences is at an uncomfortable level. Cain ties this situation with studies performed by psychologist Hans Eysenck who hypothesized that humans seek optimum stimulation preferences, and he thought that the answer between yet another difference among introverts and extroverts could be found in the ARAS (ascending reticular activating system). Cain describes this as a part of the brain stem that has excitatory mechanisms that cause us to feel awake, alert, and energetic. It also has calming mechanisms. She mentions that Eysenck predicted that the ARAS was responsible for regulating the amount of sensory input, whether the channels of distribution were open or constricted. He thought that introverts were more open to sensory input and overstimulation, and that the opposite was true of extroverts. Our current understanding of how the brain operates suggests that this is not the case. The AARS does not regulate stimulation like an on and off switch. Different parts of the brain are stimulated at different times and at varying degrees, and different types of stimuli elicit different responses.

Chapter 6: Franklin Was a Politician, But Eleanor Spoke Out of Conscience

Cain documents the social progress made by one of the most influential figures of the twentieth century, Eleanor Roosevelt. Cain also describes the personalities of her and her husband and how they clashed. Eleanor was the more socially conscious and introspective type, while Franklin was more out-going and vivacious. Cain mentions that their relationship was a combination of “a sense of his confidence with her conscience.” (Cain, 133) Cain discusses a recent innovation in how introverted traits are perceived. She mentions that what previous scientists on the subject have termed high and low reactivity are now termed sensitivity. She mentions Dr. Elaine Anon’s contribution to the nature versus nurture debate was a radically different approach. It was easy to assess the behavior of extroverts, who were able to express their emotions through social contact, but introverts on the other hand were not easily discernable because “you don’t really know what’s going on inside.” (Cain, 136). Anon conducted experiments by interviewing those who described themselves as introverted; her questions consisted of gathering what their interest, relationships, creative activities, philosophical, and religious views. She boiled these interviews down into a questionnaire and developed twenty-seven attributes based on the responses. She termed people who exhibited these attributes as highly sensitive, which were sensitive to sight and sound, had difficulty when being observed, or judged for general worthiness. They were “philosophical or spiritual in their orientation rather than materialistic or hedonistic.” (Cain, 136). They also tend to process information in more subtle ways focusing on small intricate details. Cain claims that “[Anon's] findings challenged accepted tenets of personality psychology.” (Cain, 137).

Chapter 7: Why Did Wall Street crash And Warren Buffet Prosper?

Cain begins with an anecdote about a person who because of high hopes of return on his investment invested almost his entire life savings in the stock of General Motors during the time leading up to the financial crisis in 2008. Cain uses this situation to illustrate a concept psychologists call reward sensitivity. Cain explains that “reward sensitivity motivates us to pursue goals like sex and money, social status, and influence…” and having extreme sensitivity can blind our judgment to the point we “take outsized risk and ignore obvious warning signs.” (Cain, 157). According to neurobiologist Janice Dorn we have something called the “old brain” which includes various structures, including the amygdala, and it’s highly interconnected with the nucleus accumbens, sometimes called the brain’s pleasure center. We also have the “new brain” which is “responsible for thinking, planning, language, and decision making…the seat of rationality.” (Cain, 159). Introverts are less susceptible to impulse and make more use of the rational side of the brain, and therefore are less inclined to take risks. Extroverts, on the other hand, are more inclined to take risks because of their high reward sensitivity. Cain mentions that “the neurons that transmit information the reward network operate in part through a neurotransmitter-a chemical that carries information between brain cells-called dopamine which is released in response to anticipated pleasures. The higher the level of dopamine in the brain, the more likely a person is to pursue risky behavior. It’s important to note that the theory of introversion and extroversion is in its infancy and is not absolute. Cain explains that “Since the days of Aristotle, philosophers have observed that these two modes-approaching things that appear to give pleasure and avoiding others that seem to cause pain-lie at the heart of all human activity regardless of where people lie on the reward sensitivity spectrum” (Cain, 171).

Chapter 8: Soft Power: Asian-Americans and the Extrovert Ideal

Cain focuses on the differences in perception of introverts versus extroverts in dealing with Asian-American culture and how it differs significantly from the extremely socialized American culture. This sentiment is expressed lie this: “… [Asian] parents schooled a generation ago in Asian cultures were likely taught this quieter style as children. In many East Asian classrooms, the traditional curriculum emphasizes listening, writing, reading, and memorization. Talking is simply not a focus, and is even discouraged.” (Cain, 184). This can come as a culture shock. Another problem Cain mentions is the dismay expressed by professors that deal with the culturally reserved students and their inability to adopt Western educational norms. In the San Jose Mercury News article called “East, West Teaching Traditions Collide,” teachers have trouble coaxing any participation out of their students because of the “deference barrier” created by Asian students’ reverence for their teachers. These scenarios just reinforce stereotypes and miss the fact there are cultural differences in personality within a particular country or region. For example, in terms of group identity, Asian cultures focus on seeing themselves as part of a greater whole and place tremendous value on cohesion. By contrast, American culture focus on the power of the individual. What may be seen as submissive and weak by American culture is considered by Asian culture to be a deeply felt concern for others. Cain discusses the idea of ‘relationship honoring:’ “It’s because of relationship honoring, for example, that social anxiety disorder in Japan, known as taijin kyofusho, takes the form not of excessive worry about embarrassing oneself, as it does in the United States, but embarrassing others.” (Cain, 190). The personality differences embodied by each culture (Western respect for freedom and individuality and self-expression in contrast to the Eastern ideals of introspection and group cohesion) should be valued because of its importance to humanity as a whole.

Chapter 9: When Should You Act More Extroverted Than You Really Are?

The issue discussed in this chapter is the person situation debate. Cain asks, “Do fixed personality traits really exist, or do they shift according to the situation in which people find themselves?” (Cain, 206). A similar issue arises concerning the free-will issue discussed in Chapter 5. There are physiological limits on our behavior. The question becomes whether we should manipulate our behavior within the range available or remain stable. At what point does trying to find a feasible balance become meaningless? This issue is addressed in a new field of psychology called Free Trait Theory. The theory explains that people are “born and culturally endowed with a certain personality traits, but we can and do act out of character in the service of core personal projects that are meaningful, manageable, and supported by others” (Cain, 209). Richard Lippa, research psychologist performed a study where he monitored a group of pseudo-extroverts and actual extroverts and measured their body language. The results showed that the ability of pseudo-extroverts to pass themselves off as extroverts is due to a trait known as self- monitoring in which people modify their behavior based on social cues to fit to social demands. There is also the phenomenon called behavioral leakage in which our habitual selves leak out; this would inhibit how much introverts can portray themselves as extroverts. Cain offers three key steps in identifying your core personal projects. Introverts may find giving presentations or human interaction more rewarding when they are doing something that vies them purpose and meaning: First, think back to what you loved to do as a child and the happiness and excitement you experience. Second, pay attention to the work you gravitate to. Finally, Pay attention to what you envy.

Chapter 10: The Communication Gap: How to Talk to Members of the Opposite Type

Cain notes that there is a disparity in communication between introverts and extroverts, and she discusses ways that people can dissolve it. She describes a couple-one extrovert and the other introvert-who have personalities that are polar opposites. The husband thinks that his wife is anti-social because she is reluctant to join him at his dinner parties, and she feels as if there is something wrong her. This issue arises out of the misconception that introverts are anti-social and extroverts are pro-social. People are sociable to differing degrees, based on a variety of social, societal, and environmental factors. This is what psychologists refer to as the “need for intimacy.” Those with highly valued levels of this trait tend to prefer “sincere and meaningful relationships over wild parties” and “extroverts seem to need people as a forum to fill needs for social impact, just as a general need soldiers to fill his or her need to lead.” (Cain, 226-227). This difference in personality can brew dysfunction in relationships. For example, Cain refers to the couple’s misunderstanding of how each of them resolved conflict. She mentions that, “When Emily lowers her voice and flattens her affect during fights with Greg, she thinks she’s being respectful by taking the trouble not to let her negative emotions show. But Greg thinks she’s checking out, or worse, that she doesn’t give a damn. Similarly, when Greg lets his anger fly, he assumes that Emily feels, as he does, that this is a healthy and honest expression of their deeply committed relationship. But to Emily, it’s as if Greg has suddenly turned on her.” (Cain, 232) Cain address Greg’s misunderstanding that venting anger in an argument may be counterproductive when dealing with someone who sees his behavior as an attack. Emily, on the other hand, must break her cycle of slipping into guilt and defensiveness; to see past Greg’s anger and address his actual points. It’s a delicate balance between being assertive of one’s position without being overly aggressive.

Chapter 11: On Cobblers and Generals: How to Cultivate Quite Kids in A World That Can’t Hear Them

Cain describes a situation where a couple became deeply concerned for their child when he exhibited signs of passive behavior. The parents were out-going, passionate, and competitive-a stark contrast in personality. They just assumed he was depressed. The issue was a specific case of Dr. Jerry Miller, child psychologist calls poor child parent fit. The parents were well meaning, but failure to step back from their own preferences and analyze the situation from the perspective of the child led them to believe that their child needed to be fixed or treated. The potential for emotional and psychological damage is obvious in situations like this. Cain suggest that parents should not see shyness as a negative trait, but as an opportunity to learn about what drives their children to be who they are. Cain advises parents of introverted children to work with them on their reactions to new social situations and to not mistake their “caution in situations for an inability to relate to others… [They're] recoiling from novelty or over-stimulation, not from human contact (Cain, 248). She later advises that parents should gradually expose their children to new situations taking care to respect their limits. Help the child to understand that it is fine to feel uneasy and hesitant, but applaud them when they take initiative to venture into new social territory. Avoid associating shyness with negativity. Cain also suggests enlisting the help of a pediatrician to help locate social workshops. They can learn how to enter groups, introduce themselves to new peers, and read body language. She also critiques the classroom structure that is designed mostly for extroverts. She mentions that “We tend to forget that there’s nothing sacrosanct about learning in large group classrooms and that we organize students this way not because it’s the best way to learn, but because it’s cost-efficient,” and that classes dominated by group discussions leave students “little time to think or create.” (Cain, 253). Can offers advice on how to foster an all-inclusive school environment. Help children find out what interest them. When dealing with group work situations, encourage introverted children to take the initiative and claim responsibility for a role that interests them. Children do not necessarily have to make assertions when contributing to a discussion, but they can contribute questions that may add to the discussion.

The Video Lounge

[youtube=https://www.youtube.com/watch?v=hYn6NeWemVw.]

Susan Cain is interviewed by Forbes Magazine, in which she describes the overall thesis of her book and how she arrived at it. She describes a culture that has been negatively biased against certain traits associated with introversion, such as shyness, and seriousness. As a result of this rampant bias, introverts are encouraged to act more like extroverts instead of their “true selves.” This stress leads to what she calls “a waste of talent” as a result of introverts trying to fit into a world that does not always work in their best interest. She addresses the common misconception of introversion equating to anti-social, but she mentions that introverts are not anti-social, just differently social, meaning that they may prefer an environment that has less social stimulation (a glass of wine with a close friend as opposed to a large party). Cain mentions that there is a sea of change in perception of introverts in society. She hopes to change the psyche of the culture by unmasking the stigma and shame associated with individuals who identify as introverts, and she hopes to change how workplaces and schools structure their environment to be more inclusive for introverts.

Personal Insights

Why I think:

The author is one of the most brilliant people around…or is full of $%&#, because:

Claiming that Susan Cain is one of the most brilliant people around would be an overstatement. However, I do think she does bring great insight into the world of introverts. As a self-identified introvert, I can relate to the personal experiences of herself as well as those she interviewed. She makes a passionate and articulate case for the power of introverts by dispelling the misconceptions associated with introversion. She gives criticism where it is needed, but she also offers suggestions on how to solve problems such as disparities in communication and group interaction in regards to introverts.

If I were the author of the book, I would have done these three things differently:

1. Although I enjoyed the insightful anecdotes that helped to lead into the topic of each chapter and topic, there was a problem with continuity. The specific issue was tying the anecdote back to the main topic of the chapter. The scientific studies were very informative and offered demonstrable, testable, and measurable means of validating her points, but some could have been left out. Overall, the author could have simplified her explanations to help keep the reader’s interest.

2. When mentioning parts of the brain that were involved in biological processes involved with evaluating personality (such as when explaining the processes associated with the amygdala), providing diagrams for readers to refer to would have been helpful. I would have also left out parts of the scientific research that seemed speculative.

3. When describing terms, especially those that are as broad and expansive as the terms introversion and extroversion, there is a problem of being too broad that people who may not consider themselves introverts are inadvertently identified as such. Those who may consider themselves cerebral, sensitive, thoughtful, and bookish may also be outgoing and assertive; it’s just a matter of perspective. I would have honed in on a specific definition and worked from there.

Reading this book made me think differently about the topic in these ways:

1. Prior to reading the book, my negative experiences with people who were disdainful of my introversion colored my perception. I have considered introversion as some disease that needed to be cured. After reading the book, my perception is more positive, and I understand that as she mentioned, I’m not necessarily anti-social, but differently social.

2. Like all other personality traits, introversion and extroversion is pervasive throughout different cultures. Also, there is a spectrum with which each person falls into. There is no culture that is distinctly introverted or extroverted, but people that react differently to certain social situations and to varying degrees.

3. Communication, especially when dealing with those that have an opposite personality type, should have a holistic approach. Both sides should be wary of how each person approaches conflict resolution. For example, a person who may think that releasing anger as an appropriate means of resolving conflict may not do so well when arguing with a person who may not be as aggressive or assertive.

I’ll apply what I’ve learned in this book in my career by:

1. Whenever I am confronted with people who misconstrue introversion as a socially debilitating disease, I would use this as an opportunity to educate others on the idea that what makes humanity interesting is the different personalities and methods of expression that gives each person its uniqueness. We are not doing ourselves any favors by demonizing our differences.

2. I would work more diligently to combat my fear of public speaking just as the author had done. She utilized the desensitizing approach: exposing herself to the thing that she was afraid of in manageable doses. When faced with situations where I have to discuss topics, I should treat the feelings of trepidation and fear as excitement and eagerness; have a positive instead of a negative perspective when dealing with stressful situations.

3. Understanding and nurturing the social needs of others is essential when dealing with others that differ in personality. If I were to have children, I would not let my past experiences of struggling with the negativity I experienced because of my introversion color their attitude. I would not force them to adapt to what’s considered normal just as a matter of convenience. I would enforce the idea that whatever their personality type, it is being positive and influential members of society that matters.

Here is a sampling of what others have said about the book and its author:

Judith Warner in her New York Times offers words of praise and disdain for Susan Cain’s book. Warner hints at a contradiction by mentioning that “Introverts may be an odd audience for a book about power and leadership-concepts that necessarily involve the tiring and unappealing prospect of having power over, and leadership of, other people.” She applauds the author for her honesty in exploring and dissecting the cultural disparities that introverts experience: feeling unappreciated, undervalued, and jealous of their extroverted counterparts. Although Warner approves of Cain’s keen and informative writing she makes notable criticisms as well. Warner mentions that Cain fails to convincingly engage the adult audience through her defective definitions of the word introvert, her misconceptions about the how truly content introverts are, and her “gratuitous sloganeering,” which devalues the scientific research. Warner mentions that Cain’s expansion of the word introvert to include “all that is wise and good” has devoid the word of any specific meaning. Warner exclaims that if Cain associated herself with introverts outside of the business world, she may have been aware of introverts who were content with themselves.

Abhijit Bhaduri of The Times of India is less scathing, describing her work as an interesting read. He gives a basic synopsis of the book, and he also addresses the differences often associated with introversion and extroversion: “Extroverts get energized by meeting people. Introverts need quite time to charge their batteries at the end of a day of meeting people. The introvert will not hesitate to talk about the most intimate details of his life with the passenger on the next seat in a flight.” He encourages people to read the book because “If you are an introvert, the book will make you walk tall. This is a book that you have waited for. If you are an extrovert, you will feel a little sheepish about how much you have missed by ignoring introverts around you.”

Jon Ronson of The Guardian offers his personal insight into the work by relating his own personal experiences as a self-professed introvert. It was a personal revelation and a sigh of relief for him to finally figure out that he was not alone. Ronson makes a snide remark about the saturation of extroverted culture saying that “We think extroverts are great because they’re charismatic and chatty and self-assured, but in fact they’re comparatively narcissistic and unthoughtful and we’re committing a grave error structuring our society around their garrulous blah.” Ronson is ecstatic to find that the attributes that he once considered a detriment to himself are those that actually add substance to his persona. Although Ronson praises Cain for her whimsical comparisons of the fragile personality of introverts to orchids he also critiques the immaturity of this comparison when he says that “…Then I feel embarrassed that I derived pleasure from being compared to an orchid and I realize that sometimes Cain succumbs to the kind of narcissistic rhetoric she eschews in extroverts.” He further critiques her for her litany of anecdotes and scientific studies, and that so much emphasis shouldn’t be placed on them because “we still have very little idea about why certain bits of our brains light up under various conditions.” Ronson expressed his displeasure at the lack of mention of ambiverts, and that her insistence on trying to fit people into two boxes is not helpful for her cause.

Sam Rocha’s review is not as abrasive but still critical. He applauds her for her powerful storytelling and her ability to build a poignant and persuasive case for the power of introverts. He also critiques Cain for complicating the word introversion and extroversion by saying that, “…much of the book relies on a provisional, yet artificial, binary between introverted and extroverted.” Rocha still gives her praise for relaying an important point about human personality as a whole: “…we are not blank slates, as Lock and Pinker claim, we carry certain dispositions in our hearts and minds and bodies that do not necessarily come from our environment. There is mystery inside us all.”

Bibliography

Bhaduri, A. (2013, March 29). Book Review: Quiet by Susan Cain. The Times of India. Retrieved from http://blogs.timesofindia.indiatimes.com/just-like-that/entry/quiet-by-susan-cain.

Cain, S. (2012). Quiet: The power of introverts in a world that can’t stop talking. New York: Crown Publishers.

Rocha, S. (2013, February 19). Is God an Introvert? A Review of “Quiet,” by Susan Cain. Retrieved from http://www.patheos.com/blogs/samrocha/2013/02/is-god-an-introvert-a-review-of-quiet-by-susan-cain/.

Ronson, J. (2012, March 22). Quiet: The Power of Introverts in a World That Can’t Stop Talking by Susan Cain – review. The Guardian. Retrieved from http://www.guardian.co.uk/books/2012/mar/22/quiet-power-introverts-susan-cain-review.

Warner, J. (2012, February 10). Inside Intelligence Susan Cain’s ‘Quiet’ Argues for the Power of Introverts. New York Times. Retrieved from http://www.nytimes.com/2012/02/12/books/review/susan-cains-quiet-argues-for-the-power-of-introverts.html?pagewanted=all&_r=0.

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Contact Info

To contact the author of this article, “A Summary and Review of Quiet by Susan Cain please email joseph.jones-3@selu.edu or day17@suddenlink.net.

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About the Publisher

A Summary and Review of Why Nations Fail by Daron Acemoglu and James A. Robinson

Wed, 01 May 2013 20:49:47 +0000

Executive Summary

The Ten Things Managers Need to Know from Why Nations Fail

2. The quality of the institutions is the key factor of the prosperity of the countries and it is not affected it neither by culture, region, or religion.

Full Summary of Why Nations Fail

I. So Close and Yet so Different

II. Theories That Don’t Work

III. The Making of Prosperity and Poverty

IV. Small Differences and Critical Junctures

In only three centuries since the Black Death there was a process of divergence.

The authors say that the institutional theory explains better than those based on geography, culture ignorance or economic differences.

What both authors want to establish is:

V. “I’ve Seen the Future, and It Works”: Growth Under Extractive Institutions

The problem with this growth, like the USSR, is that, according to these authors, there is no creative destruction.

They believe that China will be the same.

VI. Drifting Apart

The legacy of the Roman republic survived until the Black Death and inclusive institutions were quickly adopted by free citizens.

VII. The Turning Point

VIII. Not on Our Turf: Barriers to Development

IX. Reversing Development

This chapter speaks about the genocide perpetrated by the Dutch in the Spice Islands in the seventeenth century, in the Moluccas, producing nail, mafia and nutmeg.

In all cases there was the same pattern of looting by extractive institutions. The authors say that economic development is sometimes feeds the underdevelopment of others.

X. The Diffusion of Prosperity

XI. The Virtuous Circle

XII. The Vicious Circle

The same happened also in Guatemala, where landowners forced to do hard labor to exploit coffee plantations. And the same happened in Ethiopia.

These are examples of what I call Michaels’s iron law of hierarchy, also called vicious negative feedback.

XII. Why Nations Fail Today

XIV. Breaking the Mold

Another example was the reform in China in recent times as Mao and Deng Xiao Ping managed to reform the state from within to open the economy.

XV. Understanding Prosperity and Poverty

The Video Lounge

http://www.economist.com/blogs/freeexchange/2012/03/daron-acemoglu-why-nations-fail

http://video.mit.edu/watch/daron-acemoglu-on-why-nations-fail-10628/

Personal Insights

What I think:

If I were the author of the book, I would have done these three things differently:

Reading this book made me think differently about the topic in these ways:

I’ll apply what I’ve learned in this book in my career by:

Bibliography

De Zárate, Francisco. (2012, September 2). Por qué fracasan las naciones. Retrieved from http://www.ieco.clarin.com/economia/fracasan-naciones_0_766723525.html

Dizikes, Peter. (2012, March 23). All the difference in the World. Retrieved from http://web.mit.edu/newsoffice/2012/why-nations-fail-0323.html

Gates, Bill. (2013, February 26). Why Nations Fail: The Origins of Power, Prosperity, and Poverty (Book Review). Retrieved from http://www.thegatesnotes.com/Books/Personal/Why-Nations-Fail

Friedman, Thomas. (2012, March 31). Why Nations Fail. Retrieved from http://www.nytimes.com/2012/04/01/opinion/sunday/friedman-why-nations-fail.html?_r=0

Rueda, María Isabel. (2012, September 13). Por qué fracasan las naciones? Retrieved from http://www.drclas.harvard.edu/drupal/node/1351

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Contact Info

To contact the author of this article, “A Summary and Review of Why Nations Fail by Daron Acemoglu and James A. Robinson,” please email irma.zambrano@selu.edu or irmazambrano20@gmail.com.

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About the Publisher

A Summary and Review of The Wealthy Barber by David Chilton

Wed, 01 May 2013 20:48:07 +0000

Executive Summary

The Wealthy Barber was written to give people the information they need to develop a sound financial plan. The book is written as a novel which makes it easy to read and understand. Three characters are introduced that most people can connect with: a man with a growing family, a successful business owner, and a single man with an average job. These characters all need financial advice and are directed to their hometown barber, Roy Miller. Roy gives the three characters financial advice that takes place in the barbershop with a lesson once a month and specifies the best options for each of their situations. The book covers many financial topics from investing to life insurance, but starts with the golden rule of personal finance. Invest ten percent of your income for long term growth. For most people the best option for this investment is an equity oriented mutual fund. Wills and life insurance are extremely important and everyone should have an established will and the proper amount and type of life insurance. There are many different retirement plans to choose from, but it is important to start contributing today to the best option for you. When buying a home, choose one that fits your needs and wants, and most people should choose a fixed mortgage. If you have the extra funds to pay off your mortgage early you should outweigh the advantages and the disadvantages. . If you actively strive to save money you can significantly increase your disposable income, but how you spend your disposable income has little effect on your financial future. Investing in stock and real estate both require disciple and an eye for value. When it comes to taxes you should always seek professional help, and try to reduce your tax bill through tax avoidance. Everyone should have an emergency fund, but the size of the fund should depend on your specific situation. There are many options available to save for your child’s college education, and as a parent you should be willing and able to help your child come up with the cost of a college education. Disability insurance is also important and you should determine if your group policy at work is adequate and compare it to an individual policy. The last point this book makes is that it is important to stay informed by subscribing to a reputable financial magazine.

The Ten Things Everyone Needs to Know from The Wealthy Barber

1. Everyone should invest ten percent of their income for long term growth. If you pay yourself first you will hardly miss the money you are saving. The best option for most people is an equity oriented mutual fund, which is a professionally managed pool of money that is a diversified hands off investment.

2. Wills are extremely important because they ensure that your assets will be handled according to your wishes upon your death. You should go to a professional to set up your will, such as a lawyer, and also be prepared with what your estate will consist of and how you would like it to be divided. When choosing an executor for your will you should choose someone who is honest and reliable, lives near you, and is around the same age as you, and always name a contingent executor.

3. Choosing the right type and amount of life insurance is essential to the financial future of you and your loved ones. When choosing the right amount of life insurance you should have enough to cover all debts, future lump sum obligations, and provide sufficient cash flow to support your dependents and cover inflation. When choosing the type of life insurance, term policies are usually the best fit for most people. Term policies pay the face value of the policy and are sold in one to twenty year terms.

4. For retirement planning a 401(k) is the best option for most Americans. With this retirement plan your employer will match your contributions to some degree. You get to choose which investment vehicle to use for your contributions, but the company has some control of your investment by limiting your options.

5. An individual retirement account, or IRA, is another option in retirement plans. You can only contribute up to $2,000 per year to this account, but contributions may be tax deductible. If you choose an IRA you should make your contributions as early in the year as possible and name your spouse as the beneficiary.

Business Sign X (Photo credits: www.roadtrafficsigns.com)

6. A retirement plan option for a self-employed individual is a Keogh plan. There are two types of Keogh plans: money purchase plan, and profit sharing plan. The money purchase plan allows you to contribute up to twenty five percent of your income but you are required to contribute to your employees’ plans. The profit sharing plan only allows you to contribute fifteen percent of your income, but the percentage rate your contributions are based on can be adjusted from year to year.

7. When buying a home and choosing a mortgage you should know there are two types of mortgages: fixed and adjustable. Fixed mortgages lock in the interest rate and are the best option for most Americans. Adjustable mortgages have fluctuating interest rates and the risks usually outweigh the benefits.

8. It takes twice as much effort to earn money as it does to save money. Most people don’t bother with comparison shopping and coupon clipping, but your time is well spent doing these things considering it would have taken you a lot longer to earn the amount of money that you saved. But in all actuality how you spend your disposable income has little effect on your financial futures.

9. When it comes to income taxes you should always seek professional help and try to minimize your tax bill through tax avoidance. A couple of ways to reduce your tax bill are by contributing to a retirement plan and owning your own home, which both provide significant tax deductions. You should also always file the long 1040 form because the short form skips over deductions, ensuring that you pay the highest allowable amount.

10. Every parent should be willing and able to help their child come up with the cost of a college education. There are many options available to save for your child’s education which include bonds, prepaid tuition plans, and education IRAs. U.S. Savings Bonds are backed by the Federal Government, and Baccalaureate Bonds have interest that is exempt from all taxes. Prepaid tuition plans guarantee your child tuition costs for four years at an accepted public college in your state. Education IRAs only allow $500 per year in contributions, but if you start early this is not a problem.

Full Summary of The Wealthy Barber

The Wealthy Barber was written for Americans, ages 20-45 to give them the basics of developing a sound financial plan. The book was written in a way that anyone can understand and apply the principles to their personal finances. The book is an extremely easy read and is not an overload of information. The financial advice that is given throughout this book takes place in a barbershop through conversions between the barber and his clients.

1. The Financial Illiterate

In this chapter we are introduced to twenty eight year old Dave and his wife Susan, and they are expecting a baby soon. Dave is a teacher and his wife works as a travel agent. We are then introduced to his sister Cathy, thirty years old, who after high school, created her own business that took off soon after she got started. Then we are introduced to Tom, Dave’s best friend who is a single man working at an auto plant. Finally we are introduced to Dave and Cathy’s parents, his dad was a high school principal and his mom stayed home to take care of the family. Dave takes a self-analysis financial planning test in a business paper and realizes he needs to learn a lot about his personal finances. Dave then lays out some average goals such as owning a nice home, retiring at a reasonable age, owning a vacation property, and helping his children get an education. The characters introduced in this chapter have aspects that are easy for many Americans to connect with.

2. A Surprising Referral

Dave goes to his dad for some financial advice, but his dad doesn’t know very much either. His dad and mom lived paycheck to paycheck until six years ago when his dad went to the barber shop and got the best financial advice of his life from Roy Miller, and James Murray. Roy’s dad owned the barbershop and when his dad passed away, Roy came home from college to take over the barbershop and support his mom and younger sister. Roy was making a good profit at the barbershop and was supporting his mom and sister, but he didn’t want to make the same mistakes his father made such as no insurance, pension, or savings. Roy researched financial planning and learned about insurance plans, retirement plans, and investing. Roy has given his advice to many of his clients over the years and they have all implemented the strategies and been successful. James Murray is also introduced in this chapter, and James is one of Roy’s good friends that is always at the barbershop. James also has a lot of knowledge on finances because he has a background in real estate, the stock market, and insurance.

3. The Wealthy Barber

Dave, Cathy, and Tom arrive at the barbershop to speak to Roy about personal finances. Roy informs them that they will receive seven lessons that will take place once a month. Roy simply gives them a few basic principles. First that financial planning is the proper handling of cash flow and how you handle your income and assets will determine your success. Most people share the same goals, such as, owning a home, and a nice car, being able to take an annual vacation, and the ability to give our kids what they need and want. These goals are attainable and easily so. When trying to attain these goals, time is your greatest ally. Even though attaining your goals can be easy most people don’t have the knowledge they need to do so.

4. The Ten Percent Solution

The ten percent solution is to invest ten percent of your income for long term growth, this money is to buy the things you want most in life. In order to make saving this ten percent painless, pay yourself first, have it come directly out of your paycheck or out of your bank account. If you save and invest this way, you will hardly miss the money you are putting away. For most people the best option for investing your ten percent is an equity oriented mutual fund. These mutual funds are a professionally managed pool of money that is a diversified hands off investment. This has a very low pain in the ass factor (PITA), but it is still subject to risk, has no guarantees and fluctuates. Mutual funds are a long term investment and if you can hold them for seven to ten years you should have little to worry about in the form of risk. If you use dollar cost averaging, which is buying mutual fund shares at regular intervals with a fixed dollar amount, your cost per share will be lower than the average price per share. When evaluating different mutual funds look at the average return for the last five, ten, and fifteen year periods, make sure the manager that started the fund is still with the company, and that it is a global fund but not an international fund, always avoid sector fund switching concepts, watch the commissions for obtaining the fund, and make sure the manager of the fund emphasizes value and growth and uses common sense, patience, and discipline on managing stocks. To get started investing in a mutual fund, you should obtain a preauthorized checking plan and complete a fund purchase application, and you should also instruct the bank to reinvest all dividends by purchasing additional shares. If ten percent of your income is at least $500 a month, you can consider investing in real estate. Real estate can lead to excellent rates of return but it is very risk because of a few factors such as: property value can fall, if the investment turns out bad it is with borrowed money, and it has a very high PITA factor.

5. Wills Life Insurance and Responsibility

This chapter is all about estate planning and making sure that your assets minus your liabilities plus your insurance proceeds will provide enough money to carry out your wishes. It is extremely important to have a will drawn up because if you do not, the courts will take possession of your assets when you die and use them to pay off your debts, then what is left will be distributed according to the laws in your state. When establishing your will you should seek the help of a professional, usually a lawyer and they will cover everything that should be included in your will. Before you go to a professional you should figure out what your estate will consist of and how it should be divided. You also need to choose an executor of your will. This is a very heavy responsibility and it should be someone who is around the same age as you, lives near you, and they need to be honest and reliable. If you choose to name your spouse as the executor, it is also a good idea to name a co-executor that is a good friend with a business background or a financial institution. You should always name contingent or backup executors. It is important to keep many copies of the will and make sure your executor and your lawyer both have a copy. You should keep an up to date copy of your net worth statement along with your will in your safe deposit box and at home. It is very important to have the proper amount of life insurance for your loved ones financial future, and having the right type of life insurance is essential to your financial future. You should have enough to pay off all debt, cover future lump sum obligations such as funeral cost and college tuition and provide sufficient cash flow to support dependents and cover inflation. You should have life insurance only if you have a dependent(s) and you should also get life insurance on someone you are dependent on such as a business partner. If you don’t think you need life insurance for your spouse, you should still get it for the amount of debt you have together. There are two main types of insurance policies: renewable and convertible term insurance and cash value insurance. Term insurance is usually a better option for most people. Term insurance pays the face value of the policy upon death and is usually sold in one year to twenty year terms, which have no cash value and no savings or investment elements. With these policies you can also renew the insurance at the end of the term without proving insurability. When buying a term policy make sure it includes a guaranteed future premium cost, and that it is convertible at face value to a cash value plan without proving insurability. Group insurance offered through work can be a cheap and good alternative to an individual plan but may not be a good option if you are considered healthier than your coworkers or if you can’t take the insurance with you if you leave the company. When choosing your life insurance plan, make sure that the company you choose is financially stable and will honor your family’s claim.

6. Planning for Retirement

Good retirement planning leads to prosperous golden years, without too much of a sacrifice today. The ten percent fund mentioned earlier is not for your retirement. A retiree’s number one enemy is inflation, but compound interest is their best friend. Social security is intended to be a safety net only and not intended to supplement your monthly income. If you have a pension plan you should determine if it is integrated with social security, meaning that the total benefit of both social security and your pension plan cannot exceed a certain dollar amount each month. Also you should know if your retirement plan at work allows vesting which is being able to keep the plan if you leave the company. There are many different retirement plans and all of the following plans allow the money you put into the plan to grow tax deferred. Whatever plan you decide to use, you should start contributing to it now. When considering what plan to choose you should ask these two question: 1) is this option available to me; and 2) will it help me achieve my savings goals in a less costly manner than the other options available to me. A 401(k) is the best option for most Americans. Most employers match your contributions to some degree, but contribution limits may be affected if you have another retirement plan. For investing your contributions you can choose from a CD, mutual funds, or buying company stock, but the company has some control of your investment in limiting your options. Another well-known option is an IRA or individual retirement account. Through this plan you can only contribute up to $2,000 per year, which may be tax deductible and it must be from earned income which excludes rental income. You should make your contributions as early in the year as possible and name your spouse as the beneficiary. You should also shop around for the best rates even after it is established because there are transfer and rollover provisions. Another type of retirement plan is a Keogh plan which is for self-employed individuals. There are two types of Keogh plans, a money purchase plan and a profit sharing plan. With a money purchase plan, you can contribute twenty five percent of earned income or $30,000 dollars (whichever is less), but you have to contribute to each qualifying employees plan even if you show a loss. On the other hand, a profit sharing plan allows you to make contributions based on a percentage of income and the percentage can be adjusted year to year, but you are only allowed to contribute fifteen percent of your net income. There are also defined benefit plans that allow large contributions so that retirement income can reach up to $100,000 per year. These plans are also indexed each year, which means benefits are increased by a certain percentage to help with inflation. The contributions that are allowed are based on your current income, years until retirement, and your life expectancy. These plans are typically more expensive to set up and administer. These are the basic retirement plans but if you would like to know more, there are two great books on this subject: Making the Most of Your Money and Personal Finance for Dummies.

7. Home Sweet Home

When choosing a home, you should make sure it is in a good location, and it stays attractive to potential buyers. You should also make sure that it fits your needs and wants instead of trying to make a perfect investment. You should always spend the money to have the house inspected. There are two types of rates for mortgages: fixed and adjustable. Fixed rates lock in the interest rate at the time you buy the house and are the best option for most people. If rates do drop by two percent or more you can refinance your mortgage which may cost some money, but is usually a good idea. Adjustable rates that change often may be a good idea if rates are extremely high when you buy the house, but most of the time the risks outweigh the benefits. It is also important to know that renting is not necessarily throwing away your money. For instance, if you more every two years or more it is probably a better idea to rent that to buy. There are many advantages to home ownership such as tax deductible interest on mortgage payments, deductions for property taxes, and tax exemption on capital gains on the sale of your home. Most people find it hard to find the money for the down payment on a home. There are a few options as far as down payments go: you can borrow money from your family, look at FHA mortgages with down payments as little as five percent, foreclosures where the seller may be willing to accept a smaller down payment, VA mortgages for qualified veterans, or you can even borrow the money from the real estate agent. If you are considering paying off your mortgage early you should be aware of the advantages and disadvantages. The advantages of paying off your mortgage early are freed up cash flow, stress reduction, and pride in ownership. The disadvantage is only that you lose the tax deduction for the interest on your mortgage. You should not pay off your mortgage early if you have to dip into or stop contributing to your ten percent fund or retirement plan. If you still have questions on mortgages you can read The Common Sense Mortgage.

8. Saving Savvy

The proper handling of your day to day financial affairs can make a significant impact on your disposable income. But in all actuality how you spend your disposable income has little effect on your financial future. ”A dollar saved is two dollars earned”, meaning that if you received a raise for $2 per hour, your take home would be a little more than $1 per hour. It takes twice as much to earn the money as it does to save the money, so it is time well spent when you comparison shop and coupon clip. When you want something such as a new television, you should save for that item instead of putting it on credit and always remember to pay yourself first. You should also keep a detailed household financial summary because they can be very informative and show you what you are sacrificing and just where your money is going.

9. Insights into Investment and Income Tax

The key to buying stock is discipline and an eye for value. You should buy low and sell high but this means you have to buy when people are saying it isn’t a good idea and sell when people are buying. You have to be able to see a difference in common stock that is undervalued and one that is unhealthy. Real estate can also be a good investment in the long term if the property is well selected. You must also have an eye for value in real estate as well as use discipline and common sense. An eye for value is usually more intuitive than informed. If you ever get a large lump sum such as an inheritance you should always pay off your nondeductible debt first and always pay off the ones with the highest rates first. If all of your financial needs are well covered and you still have extra money you should spend it and enjoy it. If you still have more than you want to spend you should invest a little more into your ten percent fund each month until you have invested all the extra money. When it comes to income taxes, you should always seek professional help. You should fill out your own forms and always use a long 1040 form. The 1040 short form makes you pay the highest tax bill possible by skipping over deductions. Filling the forms out on your own shows areas where you could improve your record keeping and gets you familiar with the available tax credits and deductions. It is important to minimize your tax bill through tax avoidance because when you save a tax dollar, you do not have to sacrifice anything. There are a few ways to reduce your tax bill such as contributing to a retirement plan and owning your own home, which both give you significant tax deductions. You can also batch your deductions where one year you file an itemized deduction and the next you take the standard deduction. If you carefully plan expenses, the tax savings can be significant. If you would like more information on income taxes, you can read Year Round Tax Strategies, Your Federal Income Tax, or any tax guide by J. K. Lasser.

10. Graduation

This chapter completes this financial discussion with a few miscellaneous subjects: emergency funds, saving for college, and disability insurance. Emergencies always have happened and they always will happen. Everyone should have an emergency fund but it depends on your specific situation to determine how much your emergency fund should consist of. Although most financial planners suggest that you have four to six months of your gross pay in your emergency fund, for most people $2,000 to $3,000 is a sufficient amount. Some people that may need a large emergency fund include business owners and commissioned employees whose paycheck or income varies seasonally. When considering saving for your child’s college education, you should be willing and able to help your child come up with the necessary funds for tuition and education expenses. There are quite a few options when considering saving for your child’s education. U S. Savings Bonds are one option and they are guaranteed by the Federal Government. They have adjusting interest rates, and you can purchase them for as little as $25. There are also prepaid tuition plans that are established just a few years before your child starts college. These plans guarantee your child 4 years at a public college in your state and you are protected if tuition rates rise tremendously. Some disadvantages of this plan are that there will be a big tax bill in the future and your child has to choose from the list of acceptable colleges that are in your state. There are also education savings accounts or education IRA’s. With this plan you can only contribute $500 per year, but if you start early this is not a problem. Your contributions are put into a tax deferred account but are not tax deductible; however, if they are used for qualified education expense, disbursements are tax free. You cannot contribute to an education IRA and a prepaid tuition plan in the same year, and you may not get some tax credits in the year of the distribution. Last but not least are baccalaureate bonds. They are tax free municipal bonds, in which interest is exempt from all taxes, and they can be purchased in small denominations. The last subject discussed in disability insurance. There is a one in four chance that you will be disabled for one year in your life. It is important to have disability insurance because if you are disabled you will no longer be an asset and you become a liability. To make sure that your disability insurance is adequate you should ask these basic questions:

1. Is loss of hearing, sight, speech or use of two limbs considered full disability?

2. Is disability defined in broad terms?

3. Is the policy non-cancelable?

4. Is there a waiver of premium clause? If so does it extend beyond the benefit period?

5. Is the only exclusion accident of war?

6. Does the policy provide benefits during rehabilitation?

7. Are benefits indexed?

If the answer to all of these questions is yes, then your policy is an adequate disability policy. If you have a group policy at work, you should show your policy to your insurance agent to compare it to an individual policy. You should also take a look at your policy once a year to make sure it is keeping up with other policies. The last point this book makes is that you should always stay informed by subscribing to magazines such as Forbes, Money, or Fortune.

The Video Lounge

(the first 4min and 37sec)

This video clip is an interview with David Chilton and first gives some background information on David and the book itself. David wrote this book when he was twenty five years old and after he had already been a stockbroker for a couple of years. The interview with David focuses on the economy and how individuals and the government have used credit irresponsibly.

Personal Insights

Why I think:

The author is one of the most brilliant people around…,

because:

The author gets his point across in a way that is easy for the average person to understand and accept. A lot of people today don’t know the basics of a good personal finance program, and this book gives every reader a strong foundation to build a prosperous financial future. The author created three characters that have diversified situations and most Americans should be able to connect with one of the characters. This book is an extremely easy read; it was created for the average person, and has an enormous amount of insight on the average financial needs of people.

If I were the author of the book, I would have done these three things differently:

1. I would not have mentioned some of the things that were not as important. In the book he touches on a few things but doesn’t go into much detail about them. I think this approach leads readers to more questions about the subject and gives the reader too much information that can potentially be harmful.

2. I would have added charts that made it easy to see the pros and cons of the different options. It sometimes got a bit confusing when determining what features the options had in common. Easy to read charts or checklists comparing the different options would have made it easier for the reader to determine what option made more sense for them.

3. I would have left out a few of the retirement options. There were so many different retirement plans that it was difficult to understand and differentiate them. I would have only mentioned the 401(k), IRA, and the Keogh Plans. I thought the other plans were less important because they are not as common.

Reading this book made me think differently about the topic in these ways:

1. I now think that I should start saving and investing now instead of waiting to graduate college. I have always tried to save money but it never seemed to work. Now I can make a sound financial decision and start investing my money, and the sooner I start the sooner I will be on my way to a sound financial future. This book has given me the knowledge of where to start and the steps to take to get what I want.

2. I now have a good foundation to start building my financial future. Before reading this book I knew how to compute compound interest, interest rates, payments, annuities, etc., but I didn’t know how to use those financial tools to my advantage. This book has taught me how to choose the proper option for my specific situation and use my knowledge to my advantage.

3. This book has opened my eyes to the importance of things such as wills and life insurance. Even if I follow no other advice from this book, I will make sure that my husband and I have the proper amount of insurance and that we both establish a will before the end of the summer. These two topics are so important because if something should happen to one of us, a will should be established so that our assets are handled according to our wishes and have the proper amount of insurance to take care of all of our financial necessities.

I’ll apply what I’ve learned in this book in my life by:

1. This summer I plan to start investing in a ten percent fund. I have just started trying to save ten percent this past week. I figure in a few weeks after school ends, I will find a good mutual fund, and I will have about $300 to start my ten percent fund. This isn’t a large amount of money but it is something to start with.

2. By the end of the summer I would like to set up a will for both my husband and I. My husband has life insurance for both himself and me, but I plan on taking a closer look at the policy and what we actually need. If we need to make any adjustments I will take care of making the changes as soon as time permits.

3. I will also start researching retirement plans. Since I have not yet started my career I have not put much thought into a retirement plan. My husband has an option with his company but has not started contributing because funds are tight. Within six months of graduating, I would like to start contributing to a retirement fund that will be suitable for me and my husband.

Here is a sampling of what others have said about the book and its author:

The Wealthy Barber has sold over 2 million copies and has received many excellent reviews. Most reviews agree that for the average person this is a great start to creating a sound financial plan. “This book presents basic financial advice for the average person, and is written in language that won’t drive readers away with complexity” (Thesimpledollar.com). The advice that is provided in this book is solid, non-technical, and good for just about anyone (Getrichslowly.org). “The style of writing is approachable and it deserves credit for presenting personal finance advice to demographic groups that have otherwise shunned it” (Timelessfinance.com). The average person would be better off after reading this book, and it should be mandatory for all high school students to read (Myuniversitymoney.com). “The overall tone of the book is that there are different ways and approaches to financial success though, there are some best practices”. (Romeoclayton.com)

There are no truly negative reviews about this book but some of the positive reviews do point out some downfalls of the book. The fact that there is extra material to read through in order to make it a novel makes it more difficult to find the important information in the book, but this is not a significant negative aspect (Getrichslowly.org). “The story itself is a bit on the thin side, and parts of the book read like an educational film” (Thesimpledollar.com). The other negative criticisms of the book include some of the lessons that were taught such as: thriftiness is not extremely important, emergency funds don’t have to be large, and the focus is on mutual funds instead of more profitable options. Overall, most people agree that the way the book was written and the information provided makes this book a must read for anyone that does not already possess the knowledge to develop a sound financial plan.

Bibliography

Chilton, David. The Wealthy Barber. 3rd ed. New York: Prima Pub., 1995. Print.

“David Chilton On The Hour: Full Interview.” Interview. YouTube. YouTube, 23 Mar.

2009. Web. 15 Apr. 2013. http://www.youtube.com/watch?v=y0xzK_MjXNU .

Rev. of The Wealthy Barber. Web log post. Get Rich Slowly – Personal Finance That

Makes Sense. N.p., n.d. Web. 20 Apr. 2013.

http://www.getrichslowly.org/blog/2006/06/08/the-wealthy-barber/

Romeo. “Stories About Life | Life and Personal Finance Reflections.” Life and Personal

Finance Reflections. N.p., 16 Nov. 2011. Web. 20 Apr. 2013.

http://romeoclayton.com/the-wealthy-barber-book-review/

“The Wealthy Barber – Review.” My University Money. N.p., n.d. Web. 20 Apr. 2013.

http://myuniversitymoney.com/the-wealthy-barber-review/

Trent. “Review: The Wealthy Barber.” The Simple Dollar Review The Wealthy Barber

Comments. N.p., 20 Jan. 2007. Web. 20 Apr. 2013. http://www.thesimpledollar.com/2007/01/20/review-the-wealthy-barber/

Wood, Joe. “Book Review #1 – The Wealthy Barber.” TimelessFinance. N.p., 15 Feb.

2012. Web. 20 Apr. 2013.

http://www.timelessfinance.com/2012/02/15/book-review-1-the-wealthy-barber/

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Contact Info

To contact the author of this article, “A Summary and Review of The Wealthy Barber by Miranda Roberts,” please email Miranda.Roberts.2012@gmail.com.

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About the Publisher

A Summary and Review of Childhood Under Siege by Joel Bakan

Wed, 01 May 2013 20:47:02 +0000

Executive Summary

Throughout history, children were treated like adults and were not free to have carefree childhoods. Instead they were expected to exist in the adult world. Laws were eventually placed to protect children. However when Ronald Reagan and Margaret Thatcher came into power their views of neoliberalism were cause for great debate and were a threat to a range of social interest including the well being of children.

Children’s direct buying power and influence on parent spending fuels the entire consumer economy. The kid marketing industry tops off at 1 trillion a year. Top marketers know that marketing to children is all about catering to their emotions. They are able to do whatever it takes to work youth’s emotions, with no concern or constraint, into profit. This is the very reason that so many violent and sexual video games are top sellers. This technique of exploiting children’s emotions is also prominent in seemingly harmless games and websites. Such sites will offer a “free product” but charge for upgrades in order to experience the best that a game or application has to offer.

Marketers strive to find out what kids want and not just what their parents want for them. This is the idea that helped grow kid marketing through specially timed commercials. There is a standard in the industry for companies to campaign in ways that amplify rebellion and mads kids loyal to the company’s products instead of their parents. Marketers are undermining such an important bond for the sake of making profit.

There is a growing epidemic in our society today to label kids as mentally ill and prescribe medicine for them. These kids may be behaving poorly or being bratty but mentally ill is a far over used diagnosis according to Bakan. In 1980, ADD became an official psychiatric diagnosis. The diagnosis began to skyrocket. In the mid 1990’s and 2000’s new pediatric mental disorders and the meds to treat them made their way to the market.

Ever wonder why drug representatives are so attractive? It is a common practice to recruit college cheerleaders in the pharmaceutical industry. It is the hope of the drug companies that the representatives will be able to use their good looks to sway doctors into prescribing certain drugs. In many cases they will even endorse writing drugs for unapproved uses.

Corporations are permitted to release numerous chemicals into our environment. Of these chemicals 98.8 % have not been proven safe. This pollution has become part of the everyday things we touch and eat. Therefore they have become part of our bodies and sadly, children are the main victims. Children’s health issues have dramatically risen. This is suspected to be because of the environment. Over the past several decades Asthma rates have risen 50%, childhood cancers have risen by 40% and the Autism rate grew by an astonishing 1,000%. This is just the tip of the iceberg.

The Ten Things Parents Need to Know from Childhood Under Siege

1. Loving ones child is forever tied to fearing for them. According to Joel Bakan the key to good parenting is knowing what to fear or having the “capacity to fear accurately”. This is made harder by the tendency of corporations to diminish fears that serve certain purposes. It may be about anything from sex to harmful chemicals. The media, marketers, and P.R. firms all craft “information” that will downplay fears in order to sell products and justify harmful practices.

2. Both the collapsing of the economy in 2008 and the gulf oil spill in 2010 caused problems of huge proportions. However in years prior, governments tolerated neoliberal- inspired deregulations allowing the companies to give risky loans disguised as debt, and in the case of BP, cut-costing by cutting corners. Over the last 30 years neoliberalism has caused government to draw back from regulatory practices that were created in the century of the child reforms. This is making it harder for parents to protect their children. One example of this is choosing to buy only nontoxic products for their children but they have no choice involving the many other sources that expose industrial chemicals to their children.

3. Marketing companies cater to the psychological development of adolescents. They create products that promote fear. This can be in the form of violence in games or the fear of losing a virtual pet just to name a couple. They also feed children’s urge to seem older by making toys that promote sexuality, such as toy make-up and Bratz dolls.

4. Sites such as facebook and YouTube are drastically changing how youth engage in media. With social media people influence people, according to facebook founder, Marc Zuckerburg. Social media friends market to each other by “liking” or “sharing” a company’s picture or page. This enables marketing to take on a platform where it is disguised and not recognizable as marketing in its traditional sense.

5. Even doctors with the best of intentions are misdiagnosing and wrongly medicating children. It is not entirely their fault but the intentional fault of pharmaceutical companies. They are hiding harmful information found in drug trials that have lead to patient’s (including children) death. In addition to this, the medical journals that doctors rely on for information are being penned by people on the pharmaceutical company’s payroll.

6. There are numerous amounts of chemicals in a child’s daily life that have the potential to be toxic. Everything from a sofa to the conditioner they use on their hair or the shoes on their feet can be toxic. Despite the many ways the book lays out that children are highly susceptible to toxic chemical exposure the government still insist everything is fine. They neglect to see what may be an acceptable amount of exposure in adults is too high of a dose for children.

7. Over the last few years 156 countries, including the worlds two poorest have signed an international treaty that bands employment for anyone under 15. Yet, Canada and the United States refuse to take part in this effort to not exploit children for cheap labor.

8. Standardized testing has less to do with a child’s ability to demonstrate knowledge and more to do with profit than one may assume. The No Child Left Behind plan creates demand each year for 45 million test to be produced and mechanically graded. It also accounted for one third of the 3 billion dollars of revenue generated in the testing industry in 2008.

9. Although The Race To The Top reform, lead by president Obama, is a compelling concept on the surface it contains major faults when assigning accountability. The reform does not take into consideration classroom conditions that directly affect a child’s ability to perform on tests. Such conditions include overcrowding classrooms, broken desks, and torn books. Other environmental conditions that affect a child’s ability to learn include hunger, poverty, sleep deprivation and fear of safety.

10. Change to better protect children will not come on its own. The countries children will continue to be exposed to harmful chemicals and marketers will continue to deliberately pry on children’s psychological development until the people stand up and demand a reform for the poor regulations in place.

Full Summary of Childhood Under Siege

The Century of the Child

In medieval times children rarely were treated as such and inhabited the adult worlds of work, social life, and even sex, according to historian Philippe Aries.

Things did not improve with the era of industrialization. In the late 18th century children were brought from orphanages to work in Britain’s early textiles industry. The mills, according to E.P Thompson, were cruel places filled with foul language, horrible accidents, cruelty, and other inappropriate practices. In the post civil war south of the United States, kids as young as five years old were working in the ill conditions of textile mills.

In the19th century a child-saving movement began and by the 20th century -also called “the century of the child”- governments began to protect the best interests of children. Laws were rewritten defining children as special vulnerable people with unique needs. No longer was child labor legal nor was the selling of adult products to children. These actions spread and in 1959 the United Nations proclaimed its declaration of the rights of the child. Conversely, the century of the child reform came to a halt when Ronald Reagan and Margaret Thatcher came into power. Their views of neoliberalism were cause for great debate and were a threat to the range of social interest including the well being of children.

Whack Your Soul Mate and Boneless Girl

Internet gaming sites such as addictinggames.com are popular sites for kids. A ten year old boy is quoted as reviewing the site as “the best f…ing site ever”. The gaming site is hugely visited by preteens and teens. While there, they can find games such as whack your soul mate which offers a variety of truly brutal ways to kill your soul mate. One way is for a woman to physically assault the man than defecate on him while he lies bloody and dead. You can also find the game boneless girl. Where according to the game description you can “poke and pull the scantily clad babe all over bubbleland… throwing her across the screen never gets old”. Other games include bloody day where “back ally butchering has never been so fun” and Kitty Cannon which lures kids in with “make fluffy bloody”

This is only one example of kid marketing. Children’s direct buying power and influence on parent spending fuels the entire consumer economy. The kid marketing industry tops off at 1 trillion a year. As Martian Lindstom, BBC’s pick as the number one brand builder, explains that marketing to children is all about catering to their emotions. Addictionggames.com does this extremely well. They are able to do whatever it takes to work youth’s emotions, with no concern or constraint, into profit. Games that produce the most revenue seem to be the ones that are the most appealing to preteens and boys. Unfortunately that means often games that are extremely violent and sexual. Games that fall in this category include Halo, Call of Duty, and Grand Theft Auto. In one scene from a trailer for Grand Theft Auto a man has sex with a prostitute in his car and then brutally kills her. He beats her with a baseball bat then throws a bomb at her. As she is engulfed in flames he repeatedly shoots her and then takes back the money he paid her for sex. Marketing corporations have found out that tweens and teens crave games that are associated with fear. The same concept is apparent at the opposite end of the spectrum.

Virtual pets are extremely popular and many companies have been able to create “stickiness” by playing to a child’s emotional connection to their pet. These sites use casino -style tactics such a providing free play for basic mode but advertising more features for a “small fee”. Some sites give you free money but when it runs out they threaten your pet with sickness or death if you don’t visit them enough. In the gaming and marketing world, it is no secret that the degree of addictiveness is in direct correlation with the degree of success. To make something addictive, game designers must exploit both human emotions and behavior.

Honestly box is a facebook application that allows people to anonymously make comments about others. It exploits the emotional instability of adolescence in order to make a profit. The more money you sink in via credit card, cell phone accounts, and PayPal and the more third party links you click, the greater your chance at bribing users to find out who they are.

The New Curriculum of Childhood

This chapter explores many elements of marketing, gaming, social media, and the effects they have on children. Parents are being pushed to the edges of their children’s lives by the digital gadgets that exclude parents and undermined the values and concerns parents encompass. James Mcneal, the 1st kid marketing guru, realized in the 60’s that with televisions now common in households kids were fast becoming a new consumer market. He suggested that marketers needed to find out what kids wanted and not just what their parents wanted for them. This idea helped grow kid marketing through specially timed commercials. In the 80’s cable made it possible for networks to be exclusively dedicated to kids. Nickelodeon researched children’s psyches and set the standard for companies to campaign in ways that amplified rebellion and made kids loyal to the company’s products instead of their parents. Marketers are undermining such an important bond for the sake of making profit.

Research shows that gaming addiction and substance abuse may share the same brain functions that make it so addictive. Like drugs and alcohol children and teens become agitated or depressed when denied gaming privileges and internet use. Teens are dying from starvation, blood clots and exhaustion because they cannot leave the games they have become addicted to. They spend hours on digital games and social media which leaves less time for relationships outside of their digital world.

Many professionals are concerned about media violence. Some believe that media violence overdosing is programming kids to become the mass murders of tomorrow. However others see nothing wrong, as long as kids are shooting pixels on a screen instead of actual people. Yet research shows the answer is actually somewhere in the middle.

Another issue discussed in chapter three is media sexualization. Girls as young as age 5, are being targeted by the marketing of items such as padded bras and inappropriate undergarments as well as sexual toys such as Bratz dolls. In a hope of selling products marketers pry on kid’s natural want to appear and to be older. This is also known as the mirror effect. A group of psychological researchers summarize their findings about this type of marketing linking it to eating disorders, anxiety, low self esteem and sexual problems in adulthood.

Prescriptions for Profit

The pharmaceutical companies have spent the last 30 years becoming a greater influence over medical science in practices. This has proved to be an extremely profitable endeavor for pharmaceuticals but it does come at a cost and sometimes the cost is a child’s life. This chapter gives multiple examples of children, as young as 18 months becoming a sedated shell of themselves and children dying by the hand of ” pediatric safe” drugs.

Dr. Laurence Diller, a Doctor who specializes on children’s behavioral and developmental problems, believes children are diagnosed with disorders and prescribed drugs for other difficulties mislabeled as mental illnesses. Dr. Diller publicly announced that he thought Dr. Joseph Biederman was responsible for the death of a young girl that was prescribed bipolar medication when the real problem was a dysfunctional family life. He said that since Biederman was the one that said bipolar disorder did in fact affect children as well as adults that he was the reason this little girl was improperly diagnosed.

Since then Biederman’s creditability has been questioned. It was found that throughout 2000-2007 he earned 1.8 million from pharmaceutical companies for giving speeches on behalf of their drugs and in some cases promising he would find that their drugs achieve favorable results before he ever conducted any studies on them. The mudding of the lines between pharmaceutical companies marketing and medical science is a huge systematic problem affecting child psychiatry.

The book tells the story of a 12 year old girl that hanged herself after being prescribed Paxil and Zoloft, both are antidepressants. Her parents were told they were “wonder drugs” and safe for children. Doctors were being told they were almost free of side affects. However the drugs’ manufactures knew different. Clinical trials found that the drugs could increase suicidal thoughts. Paxil was found to have no benefit to children but increased suicidal thoughts and self harm by as much a threefold. Instead of alarming the medical community, the companies hid their studies and continued to promote the drugs favorably. This means that the published information Doctors rely on to provide knowledge about medicating children is heavily biased with only happy news.

Pom-Poms for Pills

Spirited Sales Leaders is an agency that specializes in finding cheerleaders to work for drug companies. They believe that their attractiveness goes a long way in selling drugs. They use their physical attractiveness to entice doctors to write prescriptions. Sharman Ahari, an attractive former drug rep was instructed to participate in acts that best helped the company’s shareholders and not the doctors or their patients. He began to worry that the better he was at his job the worse he was becoming as a person.

While publicly claiming their “do gooder” nature Pfizer, the world’s largest pharmaceutical company, was committing crimes. In the 2000’s they pled guilty to felony violations for promoting the sale of drug dosages and usages that were deemed dangerous and were not approved by the FDA. The book provides a “rap sheet” of 24 other offences that have occurred in the pharmaceutical industry over the years. Sadly, behind each conviction listed lie stories of tragedy and death.

The chapter goes on to explain that one in five teens in the U.S, abuses prescription drugs. According to the book, Oxycontin is their drug of choice. Its use is only surpassed by marijuana. The National Drug Intelligence Center warned that it was a suitable substitute for heroin. Purdue, the maker of Oxycontin, pled guilty on charges that “certain supervisors and employees, with the intent to defraud or mislead, marketed and promoted Oxycontin as less addictive, less subject to abuse and diversion and less likely to cause tolerance and withdrawal than other pain medications.”

Children’s health and well being is being threatened and taking advantage of in order for pharmaceutical companies to gain profit. Bakan believes parents should not have to carry the entire burden of trying to protect their children from the cynical tactics employed by pharmaceutical companies. He thinks governments should be accountable as well. In 2007 congress enacted legislation that required all clinical trials to be registered on a web-based registry. Although a positive step it is not sufficient enough to solve the problem of hidden negative trials. The law needs to be more strictly enforced and require that trials performs prior to 2007 be reported as well. There should also be laws that help manage conflict of interest in the industry.

A Dangerous and Unnatural Experiment

Corporations are permitted to release numerous chemicals into our environment. 98.8 % of these chemicals have not been proven safe. This pollution has become part of the everyday things we touch and eat, therefore they have become part of our bodies and sadly children are the main victims. Children’s health issues have dramatically risen. This is suspected to be because of the environment. Over the past several decades Asthma rates rose by 50%, childhood cancers rose by 40% and Autism rates grew by an astonishing 1,000%. That is just the tip of the iceberg. Testing reveals that with each successive generation, kids contain more industrial chemicals in their bodies then their parents. Current regulations allow amounts that are under the toxic level to be admitted into the environment. However this doesn’t consider the differences in developing versus developed biological systems. An example of a toxin allowed is BPA. It is found in plastic food and drink containers (think baby bottles) plastic wraps and the lining of cans. This includes the cans that hold baby formula. BPA is released in the food or drink when these items are heated. What many be insignificant amounts on the adult body can cause huge problems for the small developing bodies of infants and kids. In clinical studies rodents exposed to small amounts of BPA have had, alterered mammary gland development, insulin resistance, harmful effect on the prostate gland, reproductive issues for both men and women and many more undesirable affects.

The importance of timing and exposure to chemicals was demonstrated with the drug Thalidomide. The drug was prescribed to help women who suffered from morning sickness during pregnancy. It was pulled from the market four years later due to the tens of thousands of babies born with limb deformities to mothers who took the drug. The odd thing is the deformities happened only to the babies whose mothers took the drug during days 20-24 of the first month of pregnancy. The drug was harmless except for those five days when cell division was taking place for the development of limbs.

Precautionary Tales

An internet search on BPA safety will bring up numerous sites stating that BPA is safe and the studies saying it is not are quickly dismissed or not even motioned. However, if you look closely you will see that all these sites are hosted by the American Chemistry Council. The fact that science is being steered by corporate self-interest is very disturbing. The FDA began a constant communication with FDA lobbyist but didn’t contact a single independent scientist that had research suggesting the harm of the chemical. One of the world’s top BPA researchers has said “these people [FDA officials] are really now, and have obviously been for a long time, in the industry’s pocket.” Corporations and government know that it is their job to provide doubt to the consumer. They need to make the general public go against their own intuition and believe they could be wrong without absolute proof. Companies are then hired with the best interest of the company and not the general population to provide studies that will plant that doubt.

In 2007 Target, Toy R Us, Wal-Mart and more pulled lead infested toys off store shelves. They knew that the toxicity of lead could no longer be denied and they had to safe guard children from it. Products containing more than 300ppm of lead are now banned in the U.S. Some toys seem to still sneak by and thus are recalled by the Consumer Product Safety Commission each month.

In order to keep children from becoming ill society needs to move from an “absolute proof” model to a “precautionary” model. If the evidence points to harm even without absolute proof it should be banned. Activism at both local and state levels has yielded results in the past and communities should continue to be active to get laws passed that better protect children.

In Our Own Backyard

Over the last few years 156 countries, including the worlds two poorest, have signed an international treaty that bands employment for anyone under 15. Yet, Canada and the United States refuse to take part in this effort to not exploit children for cheap labor. In a span of four years 43 kids and teens have suffered work related deaths while working on farms. U.S. laws permit children 12, and in instances under 12, to work on farms anytime except school hours. They work without training and under harsh conditions, often with no bathroom or water available. As minimal as these laws are they are often not enforced by farm employers. ABC News discovered kids as young as 5 picking blueberries for a farm that is a Wal-Mart supplier. Wal-Mart itself has faced penalties in 2000, 2004, and 2005 for violating labor laws regarding minors. Yet these instances are rare. Fines are the very minimal and rules are seldom ever enforced. Companies are asked to voluntary comply with the laws but investigations to make sure they do are almost nonexistent. In order to eliminate child labor, there must be stricter laws, stiffer penalties, and better regulation.

Race to Nowhere

America’s schools are in need of reform as there is much to be improved. The current reform, however, has proved to be a falling one. It is one that has had a hand in claiming lives of kids and teens that are forced to walk through rival territories just to get to school. The reason behind this falling system is that it is based on the market. It ignores the hostile effects it has on teacher’s ability to teach and student’s ability to learn.

Narrowing Minds

The final chapter of Childhood Under Siege dives in to the concept of accountability. Bakan references President Obama’s Race To The Top plan. The logistics of the plan hold teachers and principals accountable for student’s performance on standardized test. The idea of making them the only ones reasonable for under achieving students is ludicrous. It fosters bad polices and unfair decisions. Assigning the fault in such a way is over inclusive because these individuals often have no control over issues that directly correlate to poor scores. Such things include overcrowding, lack of materials, poverty, crime, hunger, low self esteem, and depression. In the mean time the program is under inclusive because those who should be blamed for the struggling performance of the schools are not held accountable. This group includes district, city, state, and federal officials who make laws that under fund the nation’s schools.

Standardized test are suppose to provide a common measure of performance. Thanks to programs such as No Child Left Behind, and Race To The Top these test are now at the core of American education. What most people don’t know about these tests is that their main propose is profitability and not accountability. These test can be produced in mass batches for minimum cost and then graded mechanically, thus inexpensively.

The Video Lounge

In this interview conducted by Allan Gregg, Joel Bakan explains his thoughts on not waiting for scientific proof before further regulating harmful actions against children. He believes that waiting for absolute proof means that regulations will never change. Baken instead advocates a precautionary approach. This involves seeing whether reasonable evidence exist of harmful behavior and then evaluating its positional danger.

Personal Insights

Why I think with business conditions today, what Bakan wrote is true:

He hits the nail on the head when he discusses regulation and enforcement versus corporations just voluntarily doing the right thing. In the age in which we live, corporations concern is by far more focused on creating profit then moral correctness. This means they deliberately take advantage of others. These actions promote the aiding to environmental and social harms.

If I were the author of the book, I would have done these three things differently:

I would have provided more concrete solutions to the problems presented. This way the reader is not left with a helpless feeling of doom for their children. The lack of giving the reader some direction seems to be the number one recurring complaint presented in the reviews of this book.

2. It would be interesting to provide how adolescents feel about some of the topics in this book. Perhaps the author could explain to them how they are being manipulated by marketing techniques and record their thoughts.

3. I would have included instances where certain companies have made positive changes in the directions of children’s best interest. For example, Disney’s former CEO Michael Eisner cut long time company ties with McDonalds no longer allowing Disney toys to be distributed in Happy Meals. He also lead an aggressive movement to include healthy choices in the parks including fruit stands and healthy kids meal options.

Reading this book made me think differently about the topic in these ways:

1. I now take doctors advice with a grain of salt. What they say may be a good starting point but it is necessary to research before just blindly ingesting potentially harmful chemicals.

It is not enough to read websites about the drug since many of those websites are funded by the company that produces the drug. It is important to be informed of patient’s past experiences that have been prescribed a certain drug.

2. The book served as a good reminder that the government’s top priority is not to protect its people. Having a regulation in place does not mean that it is a strict enough one. Stricter regulations, enforcements, and fines need to be put in place regarding child labor, exposure to chemicals, and marketing of certain products.

3. The current system in which we hold teachers accountable is flawed. Certain conditions are beyond the teacher’s control. Therefore it is unmerited to hold them signally responsible. Another look needs to be given to distribute the blame among city, district, state, and federal governments. Only then can a better accountability system be established.

I’ll apply what I’ve learned in this book in my parenting by:

1. I now know better than to just assume doctors are only giving my child safe medications. No longer will I give my child prescribed medication without seeing what others who have taken it are reporting. I never realized that the articles written about drugs were funded by the drug companies and not by independent researchers or researchers without a conflict of interest.

2. Now, instead of thinking about a computer game as being fun, I’ll consider the suggested violence and its ability to pry on adolescent’s physiological development. Instead of thinking of Barbie as a rite of passage for my daughter, I’ll consider their sex appeal and their objectification of girls in order to sell toys. My decision making power as a consumer has changed. I’ll now consider the marketing tactics behind the products my child wants.

3. I will apply what I have learned about the massive recall on toys in 2007 by more frequently checking websites for recalled toys that slipped by their inspections. Going forward I will always opt for the BPA free item versus one that does not have a BPA free label, regardless of price.

Here is a sampling of what others have said about the book and its author:

Elisabeth Young-Bruehl, a Toronto psychoanalyst reviewed Childhood Under Siege for the Globe and Mail. She outlines the book’s content by presenting it just as the book does. However she then quickly changes tone referring to Bakan as the “child saver he wants to play”. She criticizes his historical information referring to it as simplistic and casual. Young-Bruehl never attempts to hide her dislike for the book. She writes about Bakan implying that his family could never do any harm and calls his views and thoughts a fantasy in which he operates. In small font at the bottom of the article it states that she has written her own book on similar topics entitled, Childism: Confronting Prejudice Against Children. The thing I found extremely interesting about this article was not in the article itself but in its comments. A commenter claiming to be Joel Bakan responded to the rather inaccurate review. He states that he normally does not respond to reviews and he believes that everyone is entitled to their opinion. However in the case of this review the information given is based on a distorted account of what he actually wrote and calls the reviewer’s claims bizarre based on what he actually covered in the book.

Elaine Cohen is a Sustainability Consultant and Reporter at Beyond Business and blogger on sustainability reporting and author of: CSR for HR: A necessary business partnership to advance responsible business practices. She reviewed Childhood Under Siege: How big business Targets Your Children for CSRwire. Unlike the before mentioned reviewer, Cohen truly enjoyed and agreed with the book calling it ” A true eye-opener and a “must read” by everyone who is in government, business, a parent, or simply a concerned citizen…Children Under Siege is a wake-up call for regulators, corporations and parents and as important a motivator for action as we could require. If there is one book on your reading list, make it this one.” She points out some of the problems illustrated by Joel Bakan in his book, such as the pharmaceutical companies placing children in danger in the name of making profit. She makes it clear that she shares his disgust of marketers exploiting children by manipulating their evolving minds. Cohan calls Bakan’s book a harsh reality check for anyone that believes corporations are actually committed to responsible practices and sustainability. She also comments that it is still a shocker for people who have suspected that corporations are less responsive to the greater good of humanity. Cohan ends her review by calling Childhood Under Siege a “well-researched deep-dive into the negative aspects of corporate behavior that never get shared in corporate sustainability communications.”

USAToday.com’s review of Childhood Under Siege, like most I’ve seen, had a rather positive view. The reviewer refers to Bakan’s book as stunning and almost unbelievable, but is quick to reference the books 83 pages of foot notes to back up its claims. The review highlights some of the more astonishing facts from the book and tends to focus mainly on the books more surprising issues. The author does note that by the end of the book you might feel like frankly screaming and hiding your kids.

Aside from the Globe and Mail review, in which the reviewer seemed to horribly misinterpret the main point of the books existence, the overall reception of Childhood Under Siege seems to be very positive. Most reviews are in agreement that the disturbing issues in the book need to have a spotlight shown on them. That is the only why that citizens will begin to rally together and call for regulation reform. Many praise the book for starting conversations on scary subjects in the fight to protect our children.

Bibliography

Bakan, Joel. Childhood under Siege: How Big Business Targets Children. New York: Free, 2011. Print.

Canavan. “Author Looks at How Businesses Target Kids.” USATODAY.COM. USATODAY.COM, 09 Oct. 2011. Web. 01 Apr. 2013. <http://usatoday30.usatoday.com/money/books/reviews/story/2011-10-07/childhood-under-seige/50712310/1>.

Cohen, Elaine. “A Review of ‘Childhood Under Siege: How Big Business Targets Children’” CSRwire. CSRwire, 12 Oct. 2011. Web. 07 Apr. 2013. <http://www.csrwire.com/blog/posts/171-a-review-of-childhood-under-siege-how-big-business-targets-children>.

Young-Bruehl, Elisabeth. “The War on Children.” Rev. of Childhood Under Siege. The Globe and Mail 26 Aug. 2011: n. pag. Print.

YouTube. Perf. Joel Baken and Allan Gregg. YouTube. YouTube, 16 Nov. 2011. Web. 09 Apr. 2013. <http://www.youtube.com/watch?v=SSOhE5FE98g>

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Contact Info

To contact the author of this article, “A Summary and Review of Childhood under Siege by Joel Bakan,” please email CatherineE.Habenicht@gmail.com.

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