Adam Reynolds, CEO of webexpenses, said in a statement that this "stereotypical British politeness" is having huge negative impact on U.K. business.
"The findings of our research clearly show that stereotypical British politeness is having an increasingly detrimental effect on the nation's businesses. The reluctance of UK managers to challenge their employees over simple discrepancies and a failure to observe simple workplace protocol could be costing these organisations considerable amounts of money and time."
Potentially less surprising, however, bosses are afraid of confronting business clients when it comes to awkward discussions, for instance a quarter didn't challenge an overdue payment.
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Professor of Organisational Behaviour at Cass Business School London, Andre Spicer, explained to CNBC why these results aren't too surprising.
"Often people are promoted for their ability to be polite and nice. But when they find themselves at high levels, this can become a trap. It means they find it hard to say what they mean and make judgements which can sometimes be harsh."
"Organisations can often be afraid to make difficult calls. I have seen organisations restructure entire divisions just to get rid of one disruptive person. They were too scared to call this person out, so they did it in a more subtle fashion," said Spicer.
Spicer suggests one way out of these difficulties is that while rude behavior should not be advised in organizations, people need to be allowed "some space and time to "speak the truth" while making it clear "they won't be punished for shouting the emperor has no clothes."
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