Word: affectively
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Such cuts may help the short-term bottom line but can haunt companies down the road. "Stopping those payments can be a violation of an implicit contract, and that can affect people's sense of loyalty," says Stacey Kole, an expert on human-resources management at the University of Chicago Booth School of Business. "It's a natural trigger for people to look outside for alternative jobs." And employees remember such slights. "If you cheat me today," Kole says, "I'll remember that when I have options to go elsewhere...
Benefit cuts can also affect productivity, says Christine Porath, an expert on organizational behavior at the University of Southern California Marshall School of Business. "Performance declines, people are not as creative or innovative, and if they don't have a say in the decisions, they don't feel a sense of procedural justice...
...there was a higher probability that hedgies would make the same bad bets, potentially causing a devastating cascade of failures. With so many fund managers following the herd, in other words, there was a greater chance that they would go over a cliff together. "A bank run doesn't affect just one bank," says Andrew Lo, a finance professor at MIT who applies ideas from psychology and evolutionary biology to investment. "It can easily spread to the entire banking industry. What we're seeing now [in hedge funds] is a bank run, but a bank run gone wild...
...according to Swift, an unfortunate side affect of Harvard’s new financial aid program is that there is less FWSP eligibility. Instead, today only 20 percent of those on financial aid are eligible for the program, down from 40 percent last year. This is especially disturbing at a time when more students than ever are looking for work, making ineligible students forced to find their employment elsewhere. Swift says that the SEO hopes that Harvard may be able to resolve the problem in the future by creating a program that parallels FWSP...
...arrested "to appease China." Some Chen supporters are fiercely loyal to the "Son of Taiwan," Chen's nickname, and have strong suspicions of Ma's ruling Kuomintang party, which was an authoritarian regime for nearly 50 years. Analysts, however, don't think Chen's sensational detention will affect the government, in part because Ma has been careful to distance himself from the case. "There won't be many political repercussions, except die-hard supporters coming out to rally for him," says Andrew Yang, Secretary-General of the Chinese Council of Advanced Policy Studies. From the beginning, Ma has insisted that...