Professional Documents
Culture Documents
Çalışkan 2019
Çalışkan 2019
DOI: 10.26650/ibr.2019.48.0016
http://ibr.istanbul.edu.tr/
http://dergipark.gov.tr/ibr
Abstract
Idiosyncratic deals (I-deals), which can be defined as individualized work agreements between an employee and a man-
ager, have emerged as one of the most important tools of differentiation perspective in Human Resource Management
Practices. In this study, the positive contribution of individualized human resources practices and more specifically, the
contribution of I-deals to individual and organizational outcomes were examined through a qualitative research carried
out with employees working in private sector, Turkey. Findings revealed that propositions of past research on I-deals
mainly hold in Turkey. As a result of the qualitative analysis, agile and authentic leadership styles are proposed to be
required for successful I-deal negotiations. From the employee side, self-esteem and self-efficacy are also proposed to
have a positive impact on I-deals. It is recommended that through a Team Deal, team members may set their own team
dynamics with the leader and can have an agreement with other team members on supporting each other when sched-
ules are tough, or they can also strike different agreements. Employee resilience is suggested as a positive outcome of
I-deals, and Team Deal is recommended as a solution to co-workers’ reactions.
Keywords
I-Deals • Individualized HR Practices • Resilience • Authentic leadership • Agile leadership
Information economy and workplace emerged as one of the most important tools
democratization along with individualization of differentiation perspective. I-deals are
of employees have been pushing individually negotiated to identify
organizations to change their human employees’ personal needs and preferences
resource management practices (HRM). The
and to differentiate them from their peers
new era has brought a differentiation
(Rousseau, 2005). Idiosyncratic
approach in human resource management
practices instead of traditional perspective’s arrangements may be negotiated Ex-ante
standardization approach. Idiosyncratic during the recruiting process or Ex-post as
deals (I-deals), which can be defined as well in an on-going employment relationship
individualized work agreements, have (Rousseau et al., 2009).
* This paper is based on Eda Çalışkan’s PhD Dissertation entitled “Individualized HR Practices and Idiosyncratic Deals (I-Deals) and the
Expected Positive Individual and Organizational Outcomes”, under the supervision of Prof.Dr. Alev Torun at Marmara University.
1 Corresponding author: Eda Caliskan (Dr. Student), Marmara University, School of Business, Faculty of Business Administration, Business
Administration (English), Istanbul, Turkey. Email: caliskan.eda@outlook.com ORCID: 0000-0003-0409-4844
2 Alev Torun (Prof.), Marmara University, School of Business, Faculty of Business Administration, Business Administration (English),
Istanbul, Turkey. Email: atorun@marmara.edu.tr ORCID: 0000-0002-4205-4176
To cite this article: Caliskan, E., & Torun, A. (2019). Individualized HR practices and idiosyncratic deals (I-Deals) and the expected positive individual
and organizational outcomes. Istanbul Business Research. Published online. http://doi.org/10.26650/ibr.2019.48.0016
©The Authors. Published by the İstanbul University under the terms of the Creative Commons Attribution License https://creativecommons.org/licenses/by-
nc/4.0/, which permits unrestricted use, provided the original author and source are credited.
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provided to that individual, differing from These perspectives are based on three
the conditions created for other employees dominant approaches of universalism,
in similar positions or in the same contingency, and configuration. All three
workgroup. They are mutually beneficial traditional approaches evaluate the
arrangements that are intended to serve the e ff e c t i v e n e s s o f h u m a n r e s o u r c e
interests of both employers and employees. management practices at the organizational
The I-deals individuals enjoy are level. Recent trends, however, have brought
differentiated in terms of scope, from a an individualistic perspective for the
single idiosyncratic element in a larger measurement of the results of human
standardized employment package to a resource management practices (Ng &
completely idiosyncratic employment Feldman, 2010).
arrangement. For example, one worker
Differentiation of HRM practices through
with an I-deal might have more flexible
individualization has brought the concept of
hours than his or her peers but another
t h e p s y c h o l o g i c a l c o n t r a c t . Vi a
worker may negotiate to attend an MBA
psychological contracts, employees and
program (Rousseau, 2005). Trying to make
organizations both balance their obligations
working conditions standard for everyone
to each other. When the balance is lost on
(such as compensation structures, bonuses,
both sides, it would create a fluctuation on
benefits, etc.) facilitates trust in the
the opponent’s side which would result in
organization. However, at the same time,
the deterioration of performance. As a
employers may come across with some
result, human resource practices adopted a
pressures to make special arrangements in
new approach to consider employees’
order to acquire and retain some valuable
specific conditions and demands in terms of
individuals. As a result of this, some
signing and more importantly sustaining
workers may acquire more special
work agreements (Rousseau, 1995).
conditions comparing to other colleagues.
Rousseau & Kim (2006) introduced an
Literature Review exchange perspective which was based on a
Tr a d i t i o n a l h u m a n r e s o u r c e s consideration of all kinds of labour
management practices involve the main agreements as an exchange of resources
perspective of standardization which had between employees and organizations. The
been the best practice for a long time. perspective introduced by Rousseau & Kim
Literature includes articles examining (2006) is based on Foa & Foa’s (1974)
organizations from a resource-based exchange wheel theory which categorizes
perspective since the beginning of the resources in exchange as money, information,
1970s (Wernerfelt, 1984). However, services, goods, status, and love. Rousseau &
changing conditions have dispelled the Kim (2006) see the relationship between
grounds for the implementation of a “one employees and organizations as an exchange
size fits all” approach (Kreiner et al., 2006). of employees’ time, effort, and work
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skills are beyond the necessities required to employees may limit their focus to some
perform their job (Maynard & Parfnoya, types of I-deals (such as reducing workload)
2013). Underemployment, on the other which may help employees work under
hand, can basically be defined as the better conditions. Third, this study discusses
organization’s inability to make the the important role of managers and HR in
employee use his/her skills at maximum delivering I-deals and underlines their roles
capacity with the aim of adding the as enabling agents in such deals especially
maximum value to the organization’s by emphasizing leadership styles that may
performance (Maynard, 2011). operate better during I-deals processes.
Fourth, the research recommends a new
concept of “team deal” as a response to co-
Purpose
worker reactions which is the most
This research aims to contribute to the
challenging part of the I-deals process.
conceptual clarity of I-deals. Different
measures have been developed to measure
the construct. It is likely that employees Method
negotiate I-deals through terms and
conditions that go beyond the previously Research Design
discussed nature of I-deals. Hence, this In the present study, as part of a
study aims to contribute to the literature via qualitative research, semi-structured
interviews to define the various dimensions interviews have been conducted with
of I-deals taking into account solid real-life participants including employees, managers,
examples. Thereby it is expected to and human resources managers of the
understand the process of I-deals between respective organizations from retail,
employees and employers in Turkey. construction, telecommunication,
Research findings are presented in a manner healthcare, IT, and media industries. During
to emphasize the similarities with and the study, dyadic relations and perception
distinctions from the current literature as differences among managers and employees
well as to demonstrate the dynamics of are also examined deeply in three different
I-deals processes. cases chosen from the IT sector where such
I-deals negotiations are very common.
The contributions of this study are four-
Besides the dyadic relations, the perspective
fold: First, this study brings clarity to the
of managers about other team members was
conceptualization of I-deals by defining and
examined as well. Dyadic relations between
delineating different types of I-deals.
the manager and the employee help us
Second, in relation to the first point, this
understand the different perspectives of
study discusses different examples and
managers and employees during the I-deal
types of I-deals employees achieve and thus
making process and how viewpoints in this
sheds light on I-deals literature. This is
dyadic relationship influence the outcomes
important because HR departments and
of I-deal negotiation.
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The results indicated that negotiation for recruitment process do not create a huge
compensation related Ex-ante I-deals mostly impact on my commitment to the
proved to be successful whereas benefit organization because it is just the baseline
related negotiations mostly failed. Most of for everything; the things that you obtain
the companies have very strict rules and afterward complete the whole picture.”
policies regarding the usage of the benefits. (Participant 2).
Even though some companies launch
It appears that Ex-ante I-deals may not
flexible benefit practices they are not
bring the long-term commitment if they are
flexible beyond a defined benefit budget for
not supported by additional mechanisms.
an employee.
Ex-post I-deals, however, is based on the
Some examples during the recruitment work-related context and business
process have been encountered which justification more significantly.
involve the negotiation for a title or career
Ex-post I-deals include an employment
band. Negotiation for title and band is not
relationship history. Though market forces
common in the literature during the
may influence Ex-post I-deals, especially
recruitment process rather it is reported to
monetary ones, it is more likely that Ex-post
exist after working for a couple of years in
I-deals are relationally attributed. That is,
the company. (Participant 17).
Ex-post I-deals are more likely to
Another remarkable example is about an communicate information regarding the
I-deals negotiation that can serve the strength and the quality of the employee-
diversity goals of the company. (Participant employer exchange relationship (Rousseau
18). A regional talent leader also gave et al., 2006). Such I-deals will focus
examples around flexible work exclusively on ex-post bargaining in an
arrangements that have been negotiated already existing employment relationship.
during the offer process with internal This mode of negotiation timing has been
candidates. She stated that especially identified as more relevant. It allows
women are likely to negotiate flexible hours individuals to draw on insider-knowledge
with them after maternity leave and due to on their work and employment conditions
the company’s diversity strategy; these and adapt their jobs to changing personal
kinds of negotiations mostly end up needs over time (Rousseau et al., 2006;
successfully. (Participant 13) Rousseau et al., 2009).
There are also discussions around the The trends, the negotiation frequencies,
impact of the I-deals when they are given and the timing of I-deals vary from one
just at the beginning of an employment generation to another. Young talents and the
agreement during the recruitment process. Y generation are more likely to negotiate
An employee from the construction sector I-deals for themselves. A manager from the
says that: “I-deals given during the healthcare sector says that: “I observed that
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Differentiation practices and flexibility work demands. Such opportunities are also
for females aiming to support female provided to female employees mostly to
diversity in organizations are significantly support their career.
increasing. Flexible work arrangements are
Financial I-deals. Regarding financial
being negotiated especially after maternity
I-deals, during the recruitment process, it is
leave period and negotiations mostly end up
seen that candidates ask for additional
successfully thanks to the companies’
amounts to justify their severance payment
diversity strategies. Maternity leave rights
and, they ask questions about the bonus
are also negotiated during the recruitment
structure. Within the context of Ex-post
process. Flexibility for women really creates
financial I-deals, there are cases related to
value and extra impact on women
salary negotiations, inflation increase, salary
contribution and it is also seen important as
adjustment etc. Sometimes the process for
part of the corporate social responsibility.
expats becomes exhausting as they question
Sales and commercial people are given every detail and they do not accept each
more flexibility by their managers and the condition. So, some companies create very
negotiation is mostly arranged through a special conditions beyond the standard
confidential process between the manager practices to attract talented expats.
and the employee. High performers are
The strength of a financial negotiation by
granted more flexible hours as compared to
an employee is mostly determined by the
low performers. This is because managers
market power. If the employee is a strong
have concerns that low performers may
profile in the market, especially coming
abuse the system via not working enough
from a competitor, during the hiring process,
and not delivering results.
his/her range can be higher than that of a
Another important dimension of regular candidate. Besides, if the candidates
flexibility I-deals is location flexibility. In are also aware of their competitive
some companies, it is given to all employees advantages including being in the talent
regardless of their positions or conditions. pool of their current company, then they do
In some cases, it depends on the role and job not move to another company before
content or special condition of the employee. making sure that they are taking the
Location flexibility depends on the nature of equivalent of what they deserve.
the work and expected outcomes.
Other I-deal Contents. During the study,
Schedule flexibility and reducing work other interesting I-deal contents were
demands and work hours are other detected as negotiating for the approval
dimensions of flexibility which also vary mechanism, empowerment, something
according to the content and scope of the regarding a co-worker, and innovative ideas.
job. Some employees tend to ask for Another concept was about having fun in
additional resources to decrease their own the team environment and in the company
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balance, engagement etc. These are deemed The counselling role is found to be
significant by employees particularly when particularly helpful for employees who had
they are conducted proactively by HR with gone through unsuccessful I-deal processes.
talent employees to coach them about the The role is expected to help them to recover
above-mentioned issues. HR also assumes a and to be engaged again. I-deals do not
role in coaching managers to identify, keep, always end with a desired outcome for the
and engage talent employees. two sides. This may mostly be true for
individuals who had started the process to
The advisor role is found useful
ask for an I-deal topic. Under such
especially for guidance and improvement
circumstances, some participants openly
for overall company policies and procedures
shared their experience of unsuccessful
which would also be helpful for decreasing
I-deals outcomes such as stress, exhaustion,
the fairness-related concerns of co-workers.
feeling not valued, and disengaged. For
Most of the managers and employees have
such situations, some employees stated that
emphasized that they have limited
HR can implement the “counselling” role to
knowledge about company policies and
follow up and provide counselling to those
procedures related to granting/asking for an
employees to make them feel better and
I-deal topic. It is said that some of the topics
engaged again.
are already covered by company policies
and procedures and HR can advise related
parties about such policies and procedures. Outcomes of I-deals
Also, if the topic does not exist, HR can Regarding the outcomes of I-Deals, it is
promote new ways of establishing the issue reported that deals accepted by the company
and aligning it with new policies and are likely to create positive emotions and
procedures that mean to reduce fairness those rejected are likely to create negative
related concerns of co-workers. emotions (Conway & Coyle-Shapiro, 2015).
If I-deal negotiations are not accepted by the
The facilitator role is found valuable and company, on the other hand, withdrawal
helpful for the organization especially if any behaviours may be displayed by employees.
I-deal topic creates a conflict between a
manager and an employee. Some Some employees stated that their self-
participants emphasized that during an motivation and self-engagement with the
I-deal negotiation process, HR can assume organization increased when their I-deal offers
the facilitator role between the two parties were accepted. Employees whose I-deals were
by facilitating the conversation to have accepted felt like a valuable and successful
better solutions for both sides. Especially if employee. Some had the impression that
a conflict arises during the conversations, organizations accepted I-deals only suggested
HR can be the independent party to facilitate by employees with self-discipline and sense of
the desired outcomes for the organization, responsibility. In some examples, it was found
individuals, and managers. that I-deals increased employees’ job
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satisfaction, work engagement, and desire for employees felt disappointed and they
retention. It is reported that I-deals also help thought of seeking a new job. Most
employees develop their skills and increase participants emphasized negative feelings
their individual performance. and poor relations with the manager. They
lost their trust to the manager and felt hate,
Consequently, companies benefit from
anger, and distrust. Besides, negative
I-deals through improving performance,
experiences like losing hope and optimism,
increasing the prestige of the organization
fear for future, and decreased motivation
for newcomers, decreasing employee
and engagement towards the organization
turnover, increasing sustainability,
were reported.
increasing the organization’s ability to adapt
to changing conditions in a short time, Majority of the participants said that they
increasing efficiency and effectiveness of felt bad in the workplace after an
t h e o rg a n i z a t i o n , a n d i n c r e a s i n g unsuccessful I-deal negotiation. Employees’
organizational health. I-deals also help reactions depend on the manager ’s
organizations raise senior leaders and next- accountability and on their self-confidence.
generation employees. They also assist in Employees with low self-confidence are
building an organizational culture and a fair affected more negatively.
organizational environment, and, as a result,
Co-worker reaction is another side of the
be a market leader.
picture and co-workers’ negative reactions
Some participants said that they thought could risk other employees’ willingness for
that they had already deserved the I-deal retention or they could decrease the team’s
when their I-deals were accepted by the trust in the manager (Conway & Coyle-
company and they did not feel great Shapiro, 2015). If the manager falls short of
happiness. After waiting for a long time to properly managing the I-deal processes, co-
receive the desired I-deal, the person says workers may feel worthless and think that
that he/she became exhausted meanwhile, they are not good enough to attract an I-deal.
so, when he received it, it did not have the
It is also said that the manager has the
same meaning as before.
responsibility to explain the justification of
It was also said that they were too the I-deal and convince co-workers for its
demotivated until the I-deal negotiations fairness. This has crucial importance in terms
resulted and they did not believe that the of limiting co-workers’ negative reactions.
outcome would be positive during the I-deals should play a role with respect to
process. However, the successful deal made filling the gap between employee and
them so happy and improved their organization perspectives concerning the
confidence in the organization. issue of fairness. Co-workers’ perception of
unfairness could be seen in forms such as
Regarding the situations where I-deals
perceiving the salary scale as unfair, sensing a
were not accepted, it was observed that
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discipline and rigor, and performance. The expertise. The manager was defined as
common thing that both sides mentioned supportive, open, and inclusive by
was the “performance”. This clearly shows Employee 3. The manager himself also has
us that managers and employees have deep technical expertise derived from his
different perspectives on how they formulate previous team membership. Due to his high
talent criteria. Besides, managers have seniority, the team members respect both his
higher expectations than employees in terms technical expertise and democratic
of the qualities required for being selected leadership style.
as a talent employee.
Employee 3 is a young female
Both the manager and the employee had employee who joined the company with
similar perspectives in relation to the an early career program after a 1-year
fairness aspect of I-deals. Describing internship. Manager 3 mentioned the
himself as a trusted advisor person, the I-deals content that was initiated by
employee shared his perspective that other Employee 3 as developmental
colleagues had no issue with his transition opportunities, performance goals, and
to the new roles and taking place in the schedule flexibility. Manager 3 referred to
talent pool as they all believed that he a request from Employee 3 related to
deserved it. Similarly, the manager stated financial support for an MBA program.
that if your justification is good, then it is However, Manager 3 said that due to
easy for everyone to understand the company policies, they could not meet
rationale behind your actions. However, if this request of the employee. So, he was a
you do it without any baseline and with no bit sorry while telling this story. On the
justification, then it may create a fairness other hand, during the interview,
issue. Therefore, managers should handle Employee 3 did not mention at all about
and communicate the process very carefully. this MBA request. She was usually
appreciative of other benefits that the
In the third case of dyadic I-deals
manager provided her such as location
relations among managers and employees, it
flexibility and working remotely and
became apparent that if the manager has
flexibly at different hours. She said that
good leadership skills and he shows how
sometimes she had the opportunity to go
much he cares for employee expectations,
and stay with her family who was out of
the employee does not take a refusal as
the city and she could work from there.
negative, given that the manager shows his
best to make the employee feel comfortable Both sides also talked about performance
in other areas that he can influence. goals. They both emphasized that as she
was in a special program, her performance
Manager 3 is managing a homogenous
targets were also arranged accordingly.
team of 18 technical employees. In the team,
They were not as strict as those of other
each member has a different technical
members of the team.
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I-deals are naturally personal and required mostly for balancing the team via
individual processes. In respect to this, self- understanding individuals’ needs or via
awareness appears as a positive factor establishing empathy with employees. Agile
affecting employees’ success in I-deals. leadership, on the other hand, will be
Thus, employees’ individual ability to required when the leader grants flexibility
manage and successfully implement the I-deals to adjust to the situation, especially
deals is crucial (Ng & Feldman, 2010). in an uncertain environment which
necessitates acting fast.
The first model also proposes that
leadership is related to both the acceptance The second model also aims to prove
of I-deals and co-workers’ reactions. If the that both flexibility I-deals and
I-deals are accepted, they are expected to developmental I-deals increase the
increase normative commitment, resilience of the employee. Employees
productivity, extrinsic motivation, work would tend to keep more hopeful and
engagement, and retention, while they are optimist views regarding their future in the
also anticipated to reduce work-family company thanks to I-deals. They would
conflict in parallel with the literature. If raise expectations that the organization
I-deals are not accepted, they are predicted would also offer them I-deals and, as a
to increase work-family conflict and burnout result, I-deals would increase organizational
while decreasing trust to the manager, in resilience via increasing employees’ hope
parallel with the literature. The model and optimism to solve their problems
contributes to the literature via proposing within the organization. If I-deals are not
resilience as an outcome of I-deals for both granted, it will trigger exhaustion and
cases of acceptance and refusal. hopelessness for the employee, which will
decrease their resilience then. As the
The second model proposes a
employees become more resilient, however,
recommendation for future research. The
they will obtain more opportunities to
model emphasizes that leadership style is
receive other I-deals as their credibility will
quite essential for the success of an I-deal.
increase after tough times.
The concepts of authentic and agile
leadership suggested by the second model According to the second model, I-deals
contribute to the I-deals literature. It is may be useful tools for all resilience
proposed that authentic and agile leadership development strategies. Especially for
styles are required to pursue successful solving employees’ perceived
I-deals negation processes to satisfy overqualification and underemployment
employees and, meanwhile, to avoid co- problems, I-deals could play a beneficial
worker reactions. Managers with authentic role in building the individual and
and agile leadership skills would have the organizational level resilience capacity via
ability to suitably manage co-worker’s increasing hope and optimism within the
reactions. Authentic leadership will be organization. Resilience would also
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contribute to the struggle with uncertainties found in the past organizational behavior
in the workplace. Employees would feel research regarding teams. The team concept
confident that even the risks are realized, can be defined as the ability to bring
they and the organization can bounce back. employees with different skills together to
cooperatively achieve certain goals (Mannix
Resilience can be defined as employees’,
& Neale, 2005). Employees would enjoy
managers’ or organizations’ ability to
using and developing their skills as part of a
rebound from adversities, conflicts, and
team. The relationship among the team
failures to positive events, progress, and
members is quite substantial in terms of
increased responsibility. It also refers to
conducting efficient teamwork. Rooted from
proactive learning via challenges in addition
the concept of reciprocity of interpersonal
to reactive rebounds. Masten & Reed (2002)
and social interactions from Social Exchange
proposed that resilience could be developed
Theory (Blau, 1964) and LMX, Team-
through asset-focused, risk-focused, and
Member Exchange (TMX) was proposed as
process-focused strategies, while Bonanno
a way to access the reciprocity between a
(2005) suggested that state-like resilience
member and the peer group. TMX has been
could be developed through training
defined as an individual’s “perception of his
interventions. Youssef & Luthans (2007), on
or her exchange relationship with the peer
the other hand, showed that resilience has a
group as a whole”. TMX was developed as
positive impact on employee performance.
one way in which to measure the level of
Resilience in the organizational behavior
exchange quality among co-workers. High-
context is also seen as related to hope and
quality TMX reflects focal employees’
optimism (Luthans et al., 2007).
perceptions of high levels of openness and
Compared to the roles of relationships support between members in their peer
with the leader and the organization, group (Kahn, 1992; Seers, 1989). TMX
empirical evidence to date has supported that involves a member’s perception of his or her
co-worker relationship plays an equally willingness to assist other members, to share
important role in predicting various ideas and feedback, and in turn, how readily
employee attitudes and performance information, help, and recognition are
indicators (Anand, Vidyarthi, Liden, & received from other members (Keup,
Rousseau 2010; Chiaburu & Harrison, 2008; Burning & Seers, 2004; Liden, Wayne &
Ng & Sorensen, 2008). However, in I-deals Sparrowe, 200). Therefore, Team Deal is
literature, the co-worker reaction is still one recommended as a new concept to handle
of the weakest points of I-deals (Singh et al., co-worker reactions, especially for
2014). Without properly managing co- Flexibility and Developmental I-deals. This
worker reactions, I-deals would negatively issue can be another focus for future
affect organizational performance rather research. As a weakness to mention,
than increasing it (Conway & Coyle- however, the Team Deal concept would not
Shapiro, 2015). The solution may also be be valid for Financial I-deals since such
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rewards granted for every team member Bonanno, G. A. (2005). Clarifying and extending
the construct of adult resilience. American
when the goals are achieved (Kozlowski &
Psychologist, 60, 265-267.
Bell, 2003).
Cashman, J., Dansereau, F., Graen, G., & J. Haga,
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tough, or they can also strike different analysis of co-workers effects on perceptions,
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DOI: 10.1037/0021-9010.93.5.1082
certain issues about which they feel strong,
Collyer, S., & Warren, C. (2009). Project
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