Date: 31st August, 2018

Project Report
Organisational Behaviour

Impact of Workplace Romance

on Organisations
About a century ago Freud said, "The keys to happiness are love and work," and we agree.
Unfortunately, he never said anything about love at work.

Section E, Group 7: Akanksha Patnaik 304/55

Abhijit Siddabuthuni 305/55
Ankita Saha 313/55
Arijeet Kumar Nag 315/55
Ashutosh Vikram Singh 318/55
Tanishq Mehra 339/55
Palepu M V A Pavan Kumar 345/55
Velu K R 377/55
 Date: 31st August, 2018
INTRODUCTION

In modern organisations, Workplace Romance (WR) is not a rare phenomenon. Increased

number of working hours, working in close proximity with increased emphasis on team-based
approach of work, and the emergence of “constant connectivity with work” has led to blurring of
boundaries between personal and professional lives of employees [1]. Even though a greater
number of people today are getting involved with their co-workers, a large number of
organisations have still not realized the true implications of this growing phenomenon.
Numerous researches have been conducted on the implications of WRs on organisations,
and the results have been mixed to say the least. There are both positives and negatives that
emanate from the development of a romantic relationship in a professional workplace. The
question that companies face today is not on how to control the emergence of such romances, but
rather how to manage them effectively such that the negative consequences do not come back to
bite them.
Apart from existing research findings about WRs and their consequences, we have
conducted a survey of our own whose findings we will also be using as supportive evidence in
this report. The survey had 121 respondents, with questions about the respondents’ personal
workplace romance experience and that of their co-workers and seniors. The survey tried to
capture viewpoints of involved employees and coworkers on how they perceived the WR and if
their job satisfaction and engagement was affected in any way by such instances [2].

Impact of Workplace Romance, Insights from research and survey

[3], [4]

The traditional view

regarding WRs is that they
lead to a decrease in overall
SURVEY FINDINGS
What changes did you notice in your
performance due to a co-worker's
relationship?
24%

More than 60% of the

responders have
9%
experienced firsthand
67%
experience of
workplace romance in
our survey. The actual I was distracted and my performance deteriorated
number could be much My performance improved
more than this as There were no percievable changes
office relations are
generally kept
discreet. productivity and are generally treated as a nuisance by
organisations, managers and HR professionals. For a long time
 Date: 31st August, 2018
now, organisations have generally tried to either curb such practices in the workplace, citing
professionalism, distraction among co-workers in the office and a general loss of productivity
among employees. External stakeholders and co-workers also have historically been
discouraging (and in many cases, even downright hostile) towards the development of romantic
feelings between two individuals in a workplace.

However, more recent findings in regard to the impact of workplace romances have been
in a stark contrast to this traditional view. Research on effect of workplace romance has found
that WR is not positively related with job performance or motivation (Aguinis and Pierce, 2003)
[5]. Although, what is more revealing is that more than 2/3rd of the respondents in our survey
noticed no change in their performance due to an ongoing office romance. This is in complete
contrast to the traditional view of WRs.

However, there is a positive correlation between WR and job satisfaction and a marginal
positive association between organisational commitment and workplace romance. It is found that
today, the new generation of professionals believe that WRs in their workplace don’t have the
kind of negative consequences that have traditionally been attributed to them, and there is a
linkage of WRs with reduced stress and more satisfied employees. In a survey by consultants
‘Workplace Options’ - 84% of 18-29 years old in US say they’d date a co-worker compared to just
36% for 30-45-year old, while 71% “see a workplace romance as having positive effects such as
improved performance and morale.” [6]

This fact is also clearly observable in our survey findings, the majority of whose respondents
were below the age of 30.

Do you think your relationship
affected your job performance
in any way?
42% 41%
17%
I was a lot more distracted at work
I was more productive at work
My performance was not affected
SURVEY FINDINGS
About 78% of the people
who were involved in
workplace relationship did
not find it to be affecting
their work. More than 20%
found it to be enhancing
their productivity.
58% of the respondents
admitted that a serious
relationship would
influence their decision to
continue working in the
organisation.

Many organisations
today are starting to come to terms with this new reality. Prashant Bhaskar, CEO of a Mumbai
based HR consultancy says, “If people find spouses within the organisation, we welcome it.” [7].
Many IT companies in India too prefer couples who marry within the firm, they believe “it
 Date: 31st August, 2018
reduces employee turnover and improves satisfaction.” In Gabriel and Negrin, 2004, one
interviewed partner at a consultancy firm said, “I believe I get the best people…. If they can find
partners…. I think they will appreciate the company better and work even harder.”
So, if workplace romances are actually so much beneficial, why do a majority of
organisations tend to steer clear of them and use informal means to discourage their
development? When it comes to workplace romance, organisations are primarily concerned
about real or perceived favoritism (84%), potential for claims of sexual harassment (78%), and
potential for retaliation (72%). The development of an “Us vs. Them” mentality between co-
workers and other side-effects like loss of professionalism in the office space, leak of confidential
information and productivity loss in some cases are also a major reason.

It is in the wake of a dissolved romance that the ugly side of WRs is visible in its most
monstrous form. Sexual harassment allegations, violence, loss of team morale due to animosity
between the involved parties is a common theme. Legal liabilities resulting from such effects have
a direct economic impact on organisations and such situations may also be a public relations
disaster. Verhoef and Terblanche in 2005 identified many such instances of violence after a failed
romantic relationship between co-workers. Lickey, Berry & et al, 2009 also details one such
striking example where the organisation faced a cumulative legal liability of more than $200
million and irreparable damage to its image in the wake of a failed workplace affair.

It is imperative to remember that workplace romances are a tricky business. One cannot
categorize all workplace relationships as good or bad. It depends a lot on the individuals who are
a part of the relationship, their behaviour and actions are a major factor in deciding the kind of
lens through which the other stakeholders will view the relationship.

Why organisations need a well-defined Workplace Romance

Policy.
Today, adapting and implementing a workplace romance policy is important due to the
increasing development of WRs. A 2004 study indicated nearly 10 million workplace romances
develop annually in the USA. [8] Still, most organisations and managers tend to deal with
instances on romances on workplace with a simplistic approach of either “tolerate” or “avoid”.
The reason for this is two-fold: Either a proper policy does not exist to guide the actions of
management, and in extreme cases the employees themselves are not aware of its existence. A
2006 study by Parks shows that 70% organisations do not have workplace romance policies and
out of the ones who had, 66% permitted but discouraged and 9% prohibited workplace romance.

This is concurrent with the results of our survey where 56% of the respondents said that
their company did not have any formal workplace policies and around 25% weren’t aware of any
in their workplace.

What any organisation today must understand is that workplace romances are an
unavoidable. Mostly organisations have legal centric policies due to the fear of harassment
lawsuits. This is understandable given that such lawsuits not only cause financial damage but are
also detrimental to the overall image of the company. But simply prohibiting workplace romance
is neither a pragmatic nor a sustainable approach. The resulting ‘cold’ atmosphere in the
 Date: 31st August, 2018

Does a formal workplace romance SURVEY FINDINGS

policy exist in your organisation?
More than 80% are not
19% Yes aware of any existing
25%
organizational policy
or are part of an
There is/was no formal policy, but the organization which has
required behavioural code is/was
26%
30%
understood no policy on workplace
No relationships.

organisation may force individuals to continue their relationship in secrecy, which may lead to
more complex problems when such relationship is discovered. Managers and organisations need

to understand that a simplistic approach can only control such instances, and that to in an
ineffective manner. What needs to be done is to manage such situations.

However, researchers have recommended that HR should shift their focus to

organisationally sensible approach for WR management. Moreover, employees evaluate
distributive and procedural justice based on the WR policies. A study by Pierce, 2012 on Role of
workplace romance policies and job pursuit intentions shows that there is a positive correlation
between fairness of WR policy and perceived procedural justice (r=0.64) and with interpersonal
justice (r=0.65). This shows that fair workplace response can impact the intention to pursue
employment which in turn has a strong correlation with organisational attraction(r=0.86).
Therefore, existence of WR policy is imperative for organisations to retain employees. [8]

Should Organizations allow SURVEY FINDINGS

workplace romantic relationships?
Only one in every 10
respondents in our
13%
survey wanted
28% Yes organizations to
disallow workplace
romances. But the
Yes, but with a strict formal policy clearly
specifying boundaries
majority of the
remaining 9 preferred
59%
No if the organization had
some clearly defined
set of rules in place.
 Date: 31st August, 2018

The presence of a guiding policy on part of the organisation can go a long way in ensuring
that everyone understands the behavioural expectation that the workplace demands of them.
This is the biggest reason why countless number of studies and articles today urge organisations
to define workplace romance and related policy beforehand. It is not only beneficial for the
employees, but also provides organisations from a number of negative pitfalls associated with
such relations.

Existing Policies

[12-15]

Ideal Policy

As we have noted before, most of the organisations do not have an official policy and they
rather rely on unspoken rules and practices. Clearly defined policies are the need of the hour, and
although it is the discretion of an organisation on what kind of policy they want to implement in
their workplace, our research has led us to some basic salient features which any good policy
aiming to manage workplace romantic relationships in an effective manner should have.

1. Firstly, it is imperative that an organisation acknowledges the existence of WRs, as people

spend a lot of time at work and it is possible that people develop feelings. Our survey shows
that 71.7% people believe that organisations should encourage WRs, and putting a complete
ban or imposing steep restrictions may not be beneficial to an organisation.
2. The impact on different stakeholders should be taken into consideration, and all the different
types of WRs must be clearly defined. Our suggestion is that Hierarchical relationships should
not be allowed as the risk of misuse of power and perception of favoritism is very high in these
cases. This view is concurrent with that of 95% HR professionals (SHRM survey). A large
number of harassment claims are filed against seniors, and occurrence of such instances would
have tremendous negative impacts on the organisation’s productivity and image, like in the
FOX News Network case against the then CEO Roger Ailes [9].
 Date: 31st August, 2018
3. Clearly establishing boundaries will go a long way towards making the work environment
safe and healthy. A strict no-PDA policy will help uphold the sanctity and professionalism of
the workplace.
4. Organisations also need to demonstrate that the policies are not just for the sake of existence.
Strict penalties need to be imposed against those who break them, no matter what position
they are in. Intel’s recent decision to ask for the resignation of their CEO after the discovery
of his infringement of their “No Workplace Fraternizing” policy is a stellar example of
organisational fairness. [10]

Individual’s Responsibility

Apart from the organisation’s response, it is absolutely necessary that an individual

understands his/her obligation toward upholding professionalism in the workplace and behave
in a mature fashion. Liberal policies should not be seen as an enabler for inappropriate behaviour,
and there must be a proper understanding of the implications of failing to adhere to the code of
conduct. People do not mind their co-workers engaging in these types of relationships as long as
they are healthy and do not disrupt the workflow and environment.

Immature relationships, where the couple starts bringing their personal conflicts onto the
workplace, are the ones for whom the negative themes and experiences are predominant feature.

Separation of individual and professional lives is the key feature of a mature workplace
romance. When given a chance to work together individuals in such relations should act in a
professional manner, just as they would with other co-workers.

Conclusion

Workplace Romantic Relationships are not a modern phenomenon, they have probably
existed since the time workplaces and organisations have been in existence. But in the modern
world, where lines between professional and personal lives of an individual are blurred at best
and non-existent at worst, such relationships are a growing and unavoidable phenomenon.

In stark contrast with the historically negative view of workplace romances, modern
researches and surveys have shown that they actually improve many job behaviour related
parameters, and their negative impact on work and productivity is more of a perception. But one
can never discount the problems which emerge after the dissolution of a workplace relationship,
which is the biggest reason why organisations still treat such relations as a nuisance.

Today, many organisations have understood the double-edged nature of workplace

romances and have developed a pragmatic policy to manage them. In the SHRM survey of 2013,
an increasing number of organisations (42%) indicated having a written or verbal policy
compared with 2005 (25%).

Managers, supervisors and HR professionals need to effectively manage incidents of

workplace romance if and when they occur. This is necessary to ensure that the employees do
not feel that the organisation is trying to limit their basic human emotions but at the same time
 Date: 31st August, 2018
protects the company from any possible negative pitfalls in the future which includes legal and
financial liabilities as well as deterioration of the company’s image.

To quote Freud again, love and work are the most important part of an individual’s life.
But it is important for the individual to ensure that the cocktail of love and work doesn’t start
affecting other stakeholders negatively. Eventually, effective management of love at work is the
best way to ensure a happy, productive workplace.
 Date: 31st August, 2018
References:
[1] Fiona Wilson, “Romantic Relationships at work: Why love can hurt”, International Journal of
Management Reviews, Vol. 17, 1-19 (2015)
[2] Survey Results:
https://drive.google.com/file/d/1zhytUO6ix4AAjFJlpA4w91zMQATS5tMW/view?usp=sharing
[3] Impact of workplace romances on coworkers and workplace climate, J Sutton
[4] When love and work mix: Perceptions of peers in workplace romance, Horan and Chory
[5] Charles A. Pierce and Herman Aguinis, “Romantic Relationships in Organizations” (2003),
Management Research, vol. 1, no. 2, pp. 161-169
[6] http://fortune.com/2013/06/07/why-your-office-romance-is-your-employers-business/
[7] https://economictimes.indiatimes.com/love-at-work-relationships-in-the-workplace-common-in-
india/articleshow/20270939.cms
[8] Charles A. Pierce, Katherine A. Karl, Eric T. Brey, (2012) "Role of workplace romance policies and
procedures on job pursuit intentions", Journal of Managerial Psychology, Vol. 27 Issue: 3, pp.237-263
[9] https://www.usatoday.com/story/money/2017/10/25/sexual-harassment-here-some-
biggest-cases/791439001/
[10] https://www.theverge.com/2018/6/21/17488070/intel-ceo-brian-krzanich-resigns-employee-
relationship
[11] “Workplace Romance” survey (2013, Sept), Society for Human Resource Management,
https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/shrm-workplace-
romance-findings.aspx
[12]http://www.tata.com/pdf/tcoc-booklet-2015.pdf
[13]https://s1.q4cdn.com/454432842/files/doc_downloads/Salesforce-Code-of-
Conduct_FINAL_CURRENT.pdf
[14]https://www.entrepreneur.com/article/308983
[15]https://www.inc.com/magazine/20000901/20134.html