Haas NewsWire

Haas NewsWire, May 12, 2003

Haas Students Minimally Affected by Campus SARS Policy
Money Doesn't Buy Happiness, According to a New Study by Prof. Chatman
Evening & Weekend MBA Program to Add New Cohort of Students in the Fall
Two Haas Managers Recognized by Berkeley Staff Assembly
Faculty, Students, and Staff Receive Awards for Excellence
MyHaas Gets A New Look With An Updated Banner
Faculty News
Haas in the News
Happening at Haas

Haas NewsWire Archive
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Haas School students will be minimally affected -- if at all -- by the new campus-wide policies on Severe Acute Respiratory Syndrome (SARS) issued by UC Berkeley Chancellor Robert Berdahl this month.

Students in the Haas School’s six degree programs are expected to report for the first day of classes as scheduled this summer and fall.

Full-time and Evening & Weekend MBAs as well as Ph.D. students are expected to report for classes in the fall, as planned. Classes for Berkeley-Columbia Executive MBA students will commence on June 3. The Master's in Financial Engineering Program is already under way.

"We anticipate that the SARS epidemic will have no impact on fall enrollment of new or continuing students coming to campus from SARS-affected areas," said Peter Johnson, director of international admissions for the Full-time MBA Program. "University Health Services are taking steps to ensure that it is adequately prepared for any potential situations that may arise."

Incoming undergraduate students will start their program in July for the first time this year, as part of the universities pilot program to expand undergraduate enrollment in the coming years. Classes will start on July 7. Students coming to Summer Session to take core academic classes will still be admitted.

UC Berkeley will be accepting limited enrollments for other Summer Session students from universities in Hong Kong, Taiwan, and the People's Republic of China, who are not enrolled in core academic programs. The decision was based on the lack of campus resources to accommodate a ten-day monitoring period for these students.

For students, faculty, and staff traveling to Hong Kong, Taiwan, the People's Republic of China and Singapore on university funds, the university currently requires vice chancellor approval. Campus departments hosting visitors from the affected areas have been asked to consider how essential the visits are and whether they could be postponed until the CDC’s travel advisories are lifted.

For up-to-date information on the university policy, please go to the university web site at http://newscenter.berkeley.edu/.

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Does money buy happiness? No. In fact, employees who are primarily motivated by the love of their work grow increasingly dissatisfied the more money they make, according to a recent study by professor Jennifer Chatman.

The study found, as one may expect, that individuals who are motivated by extrinsic values, such as money, promotions, a better office or parking spot, and other external rewards, were increasingly happy the more money they made.

More surprising, however, was the inverse relationship between those who were intrinsically motivated and their income. Intrinsically motivated people, or those who receive their satisfaction from doing the work for its own rewards, proved to be increasingly dissatisfied with their work and their lives the higher their salaries grew.

"In a capitalistic society, people generally believe that-all other things being equal-being rich is better. But that is not what we found," said Chatman, the Paul J. Cortese Distinguished Professor of Management, who conducted the research jointly with Ph.D. student Ariel Malka.

Chatman and Malka studied a group of 124 Berkeley MBA students who completed their degrees between 1987 and 1992 at the Haas School and determined the students' motivational orientation based on their responses to questions about jobs, career aspirations, and life circumstances. In a series of follow-up surveys they determined the participants' job satisfaction and subjective well-being, in some cases 10-15 years after participants had received their MBAs.

The survey findings have important consequences for how managers communicate the value of work and how they reward their employees.

"The important lesson for managers is that they don't want the extrinsic rewards they give employees - raises, better offices, or bonuses - to displace or undermine the natural intrinsic rewards that people get for doing the work itself," said Chatman.

External rewards do not necessarily preclude enjoying the intrinsic values of the work, the authors say. But presenting rewards for engaging in an already appealing activity can undermine that intrinsic motivation. As a result, individuals may misattribute their motivation and start to believe that they are extrinsically motivated because they work in or chose a higher-paying job.

The conclusion to managers is to make sure that their employees are fully aware of the intrinsic merits of their work, and that they don't fall into the trap of misattributing their eagerness to do the work to some external reward for that work.

"Individuals have a fundamental psychological need to feel as though their actions are freely chosen," Chatman notes. "In other words, we all need to feel that we are not just doing the work for the money, and intrinsically motivated individuals need to feel this even more so."

Chatman's research does not prove that higher salaries are the cause of the unhappiness of intrinsically motivated individuals. Instead, she thinks that these individuals may trade off the content of the work for better pay, leading them into a situation where they become unhappy because the work is unfulfilling. In other words, higher income might be an indication that a person neglected his or her own values in choosing a job.

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The Haas School of Business will add a second cohort of students to the popular Saturday option of the Evening & Weekend Berkeley MBA Program this fall, bringing the total for the program to two cohorts on weekends and two cohorts in the evening.

"While this expansion has always been part of the school's long range plans, we will launch the new cohort this fall because of the good fortune of being able to hire seven outstanding new faculty members, all drawn from top universities," said Dean Tom Campbell.

The expansion of the Saturday option directly benefits incoming Weekend students, because the school will now be able to offer a wider set of elective courses to new Weekend students.

"In making any changes to our programs, we are always careful to maintain the highest UC Berkeley standards," said Campbell. "Both the evening and Saturday options will continue to enroll students of extraordinarily high quality."

Both the evening and Saturday options will continue to enroll students with an average of over seven years of previous work experience, a proven record of career success, as well as outstanding test scores and academic performance.

For more information on the Evening & Weekend program, visit http://www.haas.berkeley.edu/EWMBA/prospective.html.

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Two Haas staff members, Dan Himelstein, executive director of the Undergraduate Program, and Jo Magaraci, coordinator of the Fisher Center for Real Estate and Urban Economics, have been selected to receive the Berkeley Staff Assembly's Excellence in Management Award.

To be considered for this special award, managers must be nominated by their reporting staff. The theme for this year's awards was "Let There Be Light: Keeping It Light in the Workplace."

Himelstein's nomination cites his compassion and support for all of his staff. His nomination, signed by his whole staff, states, "Over the past several years, the Haas Undergraduate Program Office has developed a wonderful sense of camaraderie.…This spirit has enabled us to better assist our students, face major changes in innovative ways, and support each other through difficult situations."

The Fisher Center staff nominated Jo Magaraci because "she gives all her staff every opportunity to learn new skills and the encouragement to strive for excellence.… She has this way of making everyone feel comfortable no matter the situation."

Teresa Costantinidis, assistant dean for budget and personnel, and Abby Scott, director of career services, received the Excellence in Management Awards in 2002.

This year's awards ceremony took place on May 12 in the International House auditorium.

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Each year the Haas School recognizes outstanding achievement among faculty, students, and staff. Dean Tom Campbell recognized the following award winners at the End of the Year Party on May 9.

This year's Outstanding Staff Award winners were chosen for their commitment to excellence at Haas and performing above and beyond the call of duty. They are:

The Earl F. Cheit Award for Excellence in Teaching
The teaching award is named after Dean Emeritus Earl F. Cheit, who made teaching excellence one of his top priorities at dean.

The Haas School Outstanding Graduate Student Instructor Awards

The winner of the Ph.D. Hayase Award winner was James Heyman. The award is named in honor of late Ph.D. student Henry K. Hayase.

Bonnie Elgamil received the Kiplinger Prize, awarded to an outstanding second-year student with a cumulative GPA of at least 3.5 and demonstrated qualities of leadership. The $5,000 prize is sponsored by the Kiplinger Foundation.

The Outstanding MBA Student Service Awards went to Monica Brown, Fabio Matsui, and Melisa Prevost.

The Young Entrepreneurs at Haas Program recognized four MBA mentors for their work in the program: Stephanie Chan, Danny Rabb, Suzette Morse, and Michael Gong.

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MyHaas, a web-based portal and intranet for the Haas School, has a new banner that ties it more closely to the branding of the rest of the school.

MyHaas provides access to WebMail, BearTracks, CalAgenda, the events calendar, Izio, the registrar, and reservation services. The design update to MyHaas was a Haas web team project done by the firm of Cuttriss & Hambleton. To see the new MyHaas banner, visit http://myhaas.berkeley.edu/.

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Professor Williamson to be Named an Eminent Scholar by the Academy of International Business

Oliver Williamson, the Edgar F. Kaiser Professor of Business, will be named the sixth Eminent Scholar in the history of the Academy of International Business at the AIB annual meeting on July 5 in Monterey, California. The Academy of International Business (AIB) is the leading association of scholars and specialists in the field of international business. Established in 1959, today the AIB has nearly 3,000 members in 65 different countries around the world.

In addition, Williamson will be a resident scholar at the Rockefeller Study and Conference Center in Bellagio, located on a historic estate on Lake Como, Italy, from May 15 to June 15. He is also giving the keynote address to the Nordic Workshop on Transaction Cost Economics in Business Administration at Bergen on June 21.

Professor Roberts Speaks Before NASA Panel on the Space Shuttle Columbia

On May 7 Karlene Roberts, professor in the Organizational Behavior and Industrial Relations Group, testified before the Columbia Accident Investigation Board (CAIB) at Johnson Space Center in Houston, Texas. This board was formed after the Space Shuttle Columbia was lost during its re-entry into Earth's atmosphere on February 1, 2003. Roberts discussed the management issues relevant to Columbia and NASA. She was asked to frame her discussion around managerial issues relevant to other organizations and industries seeking high reliability performance.

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The Haas School was mentioned in a San Francisco Chronicle article on May 11 in connection with UC Berkeley's policies on SARS. The article quoted two Chinese students admitted to the Haas School's MBA program who expressed concern about being able to enroll this fall. Read the article at http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2003/05/11/MN137893.DTL.

First-year Berkeley MBA student Angel Martin was mentioned in BusinessWeek on May 12 in an article about falling minority numbers in business schools. Read the full article, titled "Commentary: B-Schools: A Failing Grade on Minorities," at http://www.businessweek.com/magazine/content/03_19/b3832065_mz056.htm. In a sidebar to the story titled "At Berkeley, Diversity Takes a Hit," Jay Stowsky, associate dean of School Affairs and Initiatives, was quoted.

Information Rules, a book co-authored by Carl Shapiro, the Transamerica Professor of Business Strategy, and Hal Varian, professor in the Operations and Information Technology Management group, was referenced in The Economist on May 10 in the article, "The fortune of the commons." The article called the book, "the best read on the network economy."

Dean Tom Campbell was mentioned in the Oakland Tribune on May 9 in an article on Leon Pannetta speaking at the UC Berkeley Convocation. Haas graduating senior and Rhodes scholar Ankur Luthra was also mentioned. Read the full article, titled "Former Clinton staffer to give graduation talk," at http://www.oaklandtribune.com/Stories/0,1413,82~1726~1380260,00.html.

The Haas School of Business was mentioned in Greenbiz.com in relation to its Center for Responsible Business on May 9. Read the full article, titled "New MBA Program Brings 'Triple Bottom Line' to Future Business Leaders," at http://www.greenbiz.com/news/news_third.cfm?NewsID=24669.

Hayne Leland, the Arno Rayner Professor of Finance and Management, remarked on California Treasurer Phil Angelides' order to investment banking firms to enact stricter investor protection reforms in the Sacramento Bee on May 9 in the article, "State tightens investor safety." Read the full article at http://www.sacbee.com/content/business/story/6633335p-7585478c.html.

Hal Varian wrote an article published in The New York Times on May 9 discussing the possibilities of using financial markets to aggregate information "about those matters of fact that are important to public choice," in politics. Read the full article, titled "A Market Approach to Politics," at http://www.nytimes.com/2003/05/08/business/08SCEN.html?pagewanted=print&position=.

Jett Pihakis, director of domestic admissions for the Full-time MBA Program, was quoted in the Financial Times of London on May 8 about rejecting Haas applicants who had misrepresented themselves in their applications. Read the full article, titled "Discovering new credit risks," at http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1051389871199.

Brett Trueman, the Donald and Ruth Seiler Professor of Public Accounting, commented on the decreasing amount of pensions funds in the San Jose Mercury News on May 8. Read the full article, titled "Firms struggle to find pensions," at http://www.bayarea.com/mld/cctimes/business/5812996.htm?template=contentModules/printstory.jsp.

Janet Yellen, the Eugene E. and Catherine M. Trefethen Professor of Business Administration, remarked on the Fed's unusually detailed outlook on the economy in the Financial Times on May 7 in the article, "Fed's new tools shape expectation." Read the full article at http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1051389805582.

Professor on leave and dean of the London Business School Laura Tyson was included in "Europe's 25 most successful businesswomen" in the Wall Street Journal on May 7.

Kenneth Rosen, the California State Professor of Real Estate and Urban Economics, commented on job growth in the coming year in Forbes on May 7. Read the full article, titled "World Bonds - U.S. property bonds weather shaky fundamentals," at http://www.mcpmag.com/news/article.asp?EditorialsID=574.

A study by James Wilcox, the Kruttschnitt Family Professor of Financial Institutions, was featured in the Credit Union Journal on May 5 in the article on credit unions titled, "Study Suggests Community Banks Offer Capital Model for CUs."

Ashok Bardhan, a senior research associate at the Fisher Center for Real Estate and Urban Economics, commented on the risks facing developers and investors of Oakland's downtown development project in the Oakland Tribune on May 4. Read the full article, titled "Lofty living; Oakland gambles on condo projects to energize downtown," at http://www.oaklandtribune.com/Stories/0,1413,82~10834~1369113,00.html?search=filter#.

David I. Levine, professor in the Economic Analysis and Policy Group and the Organizational Behavior and Industrial Relations Group, remarked on the effects of company layoffs for profits in The Oregonian on May 4 in the article, "Layoffs a double-edged tactic." Read the full article at http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/105196296749123.xml.

Larry Rosenthal, executive director of the Berkeley Program on Housing and Urban Policy, commented on political leaders' plans to integrate housing projects into residential neighborhoods in the West County Sunday Times on April 20 in the article, "Neighbors reject social services."

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Haas Variety Spectacular
Saturday, May 17
7:30 - 9:30 p.m.
International House
Make a short film, play an instrument, act in a skit, hypnotize a monkey - what ever it is you do - the night is ours and the show is anything we want it to be. Come be a part of it. If you've got questions, ask Justin Schuster or Evan Barlow.

Ph.D. Seminars

"Housing Consumption and Asset Pricing" by Monika Piazzesi, UCLA
Monday, May 12
4:00 p.m.
Room C330
Updated schedule and papers can be viewed at http://faculty.haas.berkeley.edu/davidoff/298S03.doc.

Wednesday, May 14
2:30 to 5:30 p.m.
Room C220
For more information, contact June Wong at june@haas.berkeley.edu.

"Individual Preferences, Monetary Gambles and the Equity Premium" by Nicholas Barberis, University of Chicago
Thursday, May 22
4:10 to 5:40 p.m.
Room C220
For more information, contact June Wong at june@haas.berkeley.edu.

Alumni Events

South Bay Alumni - Panel on Biotech
Thursday, May 15
6:00 to 9:00 p.m.
Business leaders' panel on Nano-tech in Bio-tech
Location: Palo Alto
More information to come.
Contact Dan Rosler at HAN_SB@attbi.com.

Bay Area Alumni - Dean Campbell speaks to Harvard alumni
"The State of the California Economy - How Business and Public Policy Can Provide Solutions"
Thursday, May 15
6:30 to 8:00 p.m.
Cost: $10 per person for alumni and $15 for others
Location: Room C220, Haas School of Business
Pre-registration and advance payment are required for this event; registrations at the door will not be accepted. There is extremely limited seating for this event so we encourage you to register and pay early. Your registration will be confirmed upon receipt of payment. There are two steps required to pre-register for this event:
1. Email us your name and your Kennedy School or Haas affiliation (degree and year). If you are registering for more than one person, please provide each name and indicate whether that individual is a KSG or Haas alumnus. Send email to KSG_SF@yahoo.com (note: it is an underscore and not a hyphen in the address).
2. To pay by check, make checks payable to the "Harvard Kennedy School Northern California Alumni Association." To receive confirmation, please include your email address on your check. Mail to:
Harvard Kennedy School Northern California Alumni Association
P.O. Box 82
Menlo Park, CA 94025
Upon receipt of payment, we will send you an email confirming your registration.

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The Haas NewsWire is the electronic news weekly for the Haas community published every Monday by the Marketing and Communications Office at the Haas School. Send your news, feedback, and suggestions to Haasnews@haas.berkeley.edu.

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