The high cost of low wages: Economic scarcity effects in organizations

Due to current economic circumstances (e.g., stagnating wages, increasing material aspirations, mounting student debt), an increasing number of employees are prone to experiencing economic scarcity, defined here as the perception that one has fewer financial resources than one's needs require. In this paper, we focus primarily on an under-studied population in the organizational sciences: The working poor—employees who hold jobs but do not earn enough to sustain a reasonable standard of living for themselves and their dependents. Taking into account recent research suggesting that scarcity can have profound psychological consequences, we argue that organizations have a vested interest in reducing feelings of financial deprivation among its employees because the psychology of scarcity has the potential to spill over into organizational functioning. Furthermore, we assert that most organizations’ approaches to managing low-wage work are not only ineffective at reducing the spillover effects of scarcity on organizational outcomes, but also increase their endurance because they do not account for the behavioral consequences of financial deprivation. As such, we present more sustainable initiatives through which organizations can reduce scarcity among its employees. Finally, we discuss ways in which organizational researchers can become more involved in relevant public policy debates.     

Post bureaucratic organisations and managers

Pressures to change in organizations administered on bureaucratic lines and using the production techniques of “scientific management” are deriving from certain intrinsic attributes of these systems and from changing attributes of the environment. These changes constitute attempts to introduce greater fluidity into organizational structures and attempts to diffuse power. To the extent that they are implemented they imply that future management will centre more on sociological and psychological data, will become more experimental and less directive in style, will focus more on organizational (as against departmental) concerns and will become more responsive to external groupings. They imply also that managers will be judged more by results than by the opinion of peers, that they will be more exposed to challenge and criticism, that they will be held responsible for the quality of the work experience of their subordinates and that their own careers will be less orderly.     

Analysis of human capital development in Puerto Rico: summary and conclusions

This study explored whether perceptions of organizational business ethics differ by hierarchical levels. The study sample included more than 40,000 executives, mid-level managers and non-managerial employees from business organizations in six countries: Brazil, China, Germany, India, the UK and the US. We found that executives provided the most positive assessment of ethical business culture within their respective organizations. Employees’ assessments were less positive, and mid-level managers’ assessments fell in the middle. Organizational size and respondents’ age were not related to differences in responses. Statistically significant differences among hierarchical levels were found in Brazil, the US, Germany, the UK and China. Differences were not significant in India. Executives with longer tenure at the same organization tended to provide higher ratings of organizations’ ethical cultures, while managers’ and employees’ ratings tended to decrease with time.     

Uncertainty, Contrariness and the Double-bind: Middle Managers' Reactions to Changing Contracts

This article describes the emerging changes in psychological contracts being experienced by British middle managers in relation to their employing organizations, the middle managers' negative reactions to these changes and organizational responses to such negativity. By analysing case studies of 16 organizations, a classification of changes to five elements of the psychological contract are identified: knowledge, motivation, goals and means, role behaviour and ethics. By analysing the semi-structured interviews of 37 middle managers, selected from a much larger database for their obvious negative reactions, a continuum of such reactions is considered: uncertainty, contrariness and double-bind. This consideration leads, then, to suggestions for further research.     

Deducing a taxonomy of perceived managerial and leadership effectiveness: a comparative study of effective and ineffective managerial behaviour across three EU countries

This qualitative multiple case derived etic study focuses on perceived managerial and leadership effectiveness. It explores what employees in various organizations, organizational sectors and culturally diverse nations perceive as effective and ineffective managerial behaviour. Empirical findings from six emic replication studies carried out previously within three European Union countries were subjected to cross-case, cross-sector, and cross-nation comparative analysis. High degrees of sameness and similarity were found. Further analysis led to the emergence of a behavioural taxonomy comprised of 10 positive (effective) and 9 negative (ineffective) behavioural criteria. We find that managers and non-managerial staff in British and Romanian public-sector hospitals, and in British and German private-sector companies, perceive effective and ineffective managerial behaviour in much the same way. Our findings challenge past literature which argues that managers need to adopt different managerial behaviours to be effective in different organizational sectors and countries.     

7 Getting There from Here: Research on the Effects of Work–Family Initiatives on Work–Family Conflict and Business Outcomes

Abstract

Many employing organizations have adopted work–family policies, programs, and benefits. Yet managers in employing organizations simply do not know what organizational initiatives actually reduce work–family conflict and how these changes are likely to impact employees and the organization. We examine scholarship that addresses two broad questions: first, do work–family initiatives reduce employees’ work–family conflict and/or improve work–family enrichment? Second, does reduced work–family conflict improve employees’ work outcomes and, especially, business outcomes at the organizational level? We review over 150 peer‐reviewed studies from a number of disciplines in order to summarize this rich literature and identify promising avenues for research and conceptualization. We propose a research agenda based on four primary conclusions: the need for more multi‐level research, the necessity of an interdisciplinary approach, the benefits of longitudinal studies that employ quasi‐experimental or experimental designs and the challenges of translating research into practice in effective ways.     

Ignoring Leaders who Break Promises or Following God: How Depersonalization and Religious Faith Inform Employees’ Timely Work Efforts

This study investigates the relationship between employees’ perceptions of psychological contract breaches and their failure to meet work-related deadlines, with a particular focus on the mediating role of the depersonalization they assign to organizational authorities and the moderating role of their religious faith. Results based on multisource data, collected among employees and their supervisors in Pakistani organizations, show that an important factor that underpins the connection between beliefs about broken organizational promises and a diminished propensity to finish work on time is that employees depersonalize organizational leaders. This mediating effect is mitigated by employees’ religious faith. For organizations, this study thus identifies a key mechanism – exhibiting indifference to the people in charge – by which employees’ frustrations about resource-depleting contract breaches may inadvertently escalate into ineffective time management, and it identifies some workers among whom this counterproductive dynamic is less likely, namely, employees who can draw from their religious faith.     

Empowerment through Choice? A Critical Analysis of the Effects of Choice in Organizations

The provision of choice is one of the most common vehicles through which managers empower employees in organizations. Although past psychological and organizational research persuasively suggests that choice confers personal agency, and is thus intrinsically motivating, emerging research indicates that there could be potential pitfalls. In this chapter, we examine the various factors that could influence the effects of choice. Specifically, we examine individual-level factors such as the chooser's socioeconomic status and cultural background. We also examine situational factors such as the content of choice and the number of choices offered. We then expand our discussion on the effect of giving employees extensive choice by looking at its influence on creative performance. In the second half of this chapter, we discuss implications for future organizational behavior research and examine how emerging research on choice making can inform specific managerial practices.     

Exploring the Predictors of Organizational Preparedness for Natural Disasters

There is an extensive body of research on the determinants of disaster preparedness at the individual and household levels. The same cannot be said for the organizational level. Hence, the purpose of this study is to shed light on the predictors of organizational preparedness for natural disasters. Since leaders of organizations have an incentive to overstate their level of preparedness and because surveys of organizational leaders suffer from selection bias and low response rates, we take the novel approach of interviewing employees about the organizations that employ them. Using an online survey, we collected information from a national sample of 2,008 U.S. employees and estimated the predictors of preparedness at the organizational level. We find, among other results, that organization size (facility level) is a consistent predictor of preparedness at the organizational level. We conclude with policy recommendations and outline an agenda for future research on organizational preparedness for natural disasters.     

Family Status and Work Attitudes: An Investigation in a Professional Services Firm

To help employees better balance work and family responsibilities, organizations are increasingly offering a variety of work–family programmes. However, anecdotal reports suggest that employees without spouses or children perceive that they receive fewer organizational benefits and bear greater burdens than their married or parent counterparts. By providing a more ‘family‐friendly’ work environment, organizations may foster perceptions of inequity in people without families (single adults without dependent children, SAWDCs), possibly resulting in lower job satisfaction and other work‐related outcomes. Using a sample of 454 employees of a professional services firm, we examined attitudinal differences between individuals with and without families. Findings suggest that SAWDCs and non‐SAWDCS differed in terms of age, organizational level, use of flexible work arrangements and firm tenure. However, we found no differences in hours worked, job involvement, job satisfaction or organizational commitment. Interestingly, SAWDCs had more favourable perceptions of the organization's work–family culture than non‐SAWDCs, suggesting that those who do not utilize family‐friendly benefits view them more favourably than those who actually need or use the benefits. In addition to identifying directions for future research, we offer suggestions for organizations, including taking a more universal approach to benefits to the advantage of all employees.     

Governance in Organizations: A Cognitive Perspective

Governance in organizations according to traditionalagency theory is based on the premise that managersand employees do not have identical goals. As aconsequence, employees need to be monitored andcontrolled. If legal contracts are not sufficient forproper control, incentive contracts should be used. This paper argues that incentive contracts are notsufficient to solve governance issues in organizationsdue to problems in measurability and enforceability ofpresumed contract violations. Such problems arecomplicated by asymmetries in power, perspectives andaspirations between managers and employees. Acognitive argument is advanced suggesting that timeconstraints and bounded rationality render the idea ofmonitoring relatively ineffective. Governance ideasthat focus on communication flow and informationsharing are described. The role that other cognitiveelements such as memory play in a more comprehensiveand interdisciplinary framework for understandinggovernance relations is discussed.     

The role of stress and social support in Sick Building Syndrome

Sick Building Syndrome (SBS) involves seemingly healthy individuals experiencing long-lasting symptoms of physical distress in their work settings and is estimated to exist in 20 to 30% of all work settings in the USA. We examined differences in stress, social support and both physical and psychological symptoms reported by hospital personnel working in known SBS sites in Halifax, Nova Scotia (n = 297) with control employees working in relatively SBS-free settings (n = 228). We found that employees reporting that their health had been affected by the building in which they worked and those complaining of poor air quality were more likely to be found in SBS locations. In addition, those people with higher levels of organizational support and marginally higher levels of union support were also more likely to be found in SBS locations. Further analyses revealed that employees with higher role overload and greater family support, but lower levels of organizational support were more likely to report that their own health had been adversely affected by their place of work. Perceptions of poor air quality were predicted by higher levels of role conflict, role overload, and organizational stress and lower levels of organizational support. These results suggest that SBS may not be solely dependent on environmental factors.     

Employees' perceptions of organizational restructuring: The role of social support

Organizational change and restructuring is often perceived as leading to increased occupational stress, impacting negatively on the psychological well-being of employees. This pragmatic study investigates the role of social support and dispositional affect as moderators of role stress post-restructuring for employees in a public utility company. A total of 176 employees, including 37 managers, 60 graded staff and 78 industrial staff completed a self-report questionnaire, approximately 1 year postrestructuring, retrospectively assessing role conflict, ambiguity, overload and positive and negative feedback pre- and post-restructuring. Results suggested that overall role stress increased for managers/ senior officers and graded staff, but not for industrial staff. Social support was linked with lower role stress, more positive feedback and less negative feedback at post-restructuring. For certain role stressors this impact was moderated by dispositional affect, but the effect was not consistent across occupational groups. Positive affect enhanced the effect of manager support in reducing role conflict for graded staff, and the effect of co-worker support in increasing positive feedback and reducing negative feedback for industrial staff. Findings suggest that managers should pay particular attention to support and feedback for employees during periods of chronic occupational stress following organizational restructuring.     

Measuring Organizational Performance: A Case for Subjective Measures

We review the organizational performance (OP) measurement literature highlighting the limitations of both objective and subjective measures of performance. We argue that, with careful planning, subjective measures can be successfully employed to assess OP. This is because often consistent, reliable and comparable compatible objective data on OP measures – particularly across countries and sectors – is difficult to come by. Considering that an inflated OP measure can be cross‐checked with the use of secondary data, managers have little incentive to report such figures. As a result, when quizzed over the stand‐alone performance measures of their organizations or vis‐à‐vis their rivals, managers accurately assess and respond to questions on the performance of their organizations. An in‐depth statistical exercise conducted on the subjective measures of OP as reported by managers of four sets of companies in four separate countries, show consistent results, thus lending support to this premise.     

Conflict of values— the central strategy problem

There is growing evidence that the central strategy question for business is no longer ‘what business are you in?’ but‘why are you in business?’ The traditional answers to this question—‘to make profits’, ‘to grow’ and ‘to give an adequate return to the shareholder’, are all being questioned. In their place others are being suggested—‘to provide satisfying jobs’, ‘to help solve social problems’, ‘to assist in urban and regional development’.In this article, Bernard Taylor suggests that the conflict between business goals and social goals has become the central strategy problem. Business enterprises like other organizations tend to develop their own distinctive sub-cultures with their own value systems which may differ markedly from the values accepted in society generally. The more effective the selection, training and reward systems, the more these business values will be reinforced.But this can lead to difficulties when society begins to reject business values in favour of other social goals; particularly at a time when the power and autonomy of management is being challenged and Corporate Planning is being transformed from an internal dialogue between managers at headquarters and managers in divisions into an open debate involving public servants, employees and self-appointed representatives of community interests.     

The Identity‐Matching Principle: Corporate and Organizational Identification in a Franchising System*

This paper examines corporate and organizational identification in franchisee organizations from the perspective of the social identity approach. We propose the identity‐matching principle (IMP) as a heuristic for understanding and predicting the different effects of nested identifications. According to the IMP, when identifications and relevant behavioural or attitudinal outcomes address the same level of categorization, their relationship will be stronger. A study is presented with employees (n=281) matched to managers (n=101). Supporting the IMP, organizational identification (but not corporate identification) predicted customer‐oriented behaviour on the level of the local organization, whereas corporate identification (but not organizational identification) predicted attitude toward corporate citizenship behaviour. Furthermore, multilevel analyses showed that these relationships were enhanced in organizations where managers displayed the respective behaviours themselves to a greater extent. Implications for theorizing about leadership and organizational attachments are discussed alongside recommendations for organizational practitioners.     

Freeing organizational behavior from inhibitory constraints

Many organizational policies and practices are based on the view that people's behavior needs to be inhibited to protect against their selfish basic nature. Indeed, a fundamental assumption of theories ranging from social exchange to economic models of organizational behavior is that individuals are primarily oriented to gain good outcomes for themselves. This chapter describes a program of research that raises serious questions about these ideas by showing that disinhibition—prompted by reminding people of times when they behaved without worrying about what others thought—can often lead to more helping behavior, decisions for the greater good in response to dilemma problems, and greater rejection of self-advantageous unfairness. These findings suggest that most people are fundamentally pro-social, interested in securing good outcomes for both themselves and others. This pro-social attitude manifests itself more readily in actual behavior and attitudes when the person in question is freed from some of his or her inhibition. These findings have implications for how one might enhance the full potential of employees in organizations, stimulate helping and creative behavior in teams, improve decision making in organizations, and how we should understand reactions to organizational change.     

认知与情感信任、权力距离感和制度控制对领导授权行为的影响研究

本研究探讨了领导对于下属的认知信任和情感信任对不同维度授权行为的影响作用,以及权力距离感和组织制度控制的调节效应.结构方程模型分析的结果表明,领导对于下属的认知信任和情感信任均有助于增加领导的决策参与、信息分享和帮助指导的授权行为,并且,领导的下属认知信任对决策参与的影响作用最大.情感信任对帮助指导和信息分享的影响作用较大.层级回归分析的结果显示,领导的权力距离感和制度控制均对下属认知信任与三维度的授权行为之间的关系具有显著的调节作用.但是,只有制度控制对下属情感信任与三维度授权行为之间的关系调节作用显著.     

The Impact of Transformational Leadership on Organizational Citizenship Behaviours: The Contingent Role of Public Service Motivation

In this paper we examine whether the relationship between transformational leadership and organizational citizenship behaviours (OCBs) is contingent on public service motivation (PSM). We propose that PSM may reduce the motivational influences of transformational leaders’ behaviours on followers’ OCBs in public sector organizations. Using a sample of Mexican employees we tested this proposition with structural equation modelling. Our results show that the motivational effects of transformational leadership were less for public sector followers higher in PSM than for those lower in PSM. A follow‐up study in private sector organizations did not reveal a similar interaction effect. These findings appear consistent with previous research demonstrating that PSM is more aligned to the goals and values of public rather than private sector organizations. Nevertheless, the direct effects of PSM on OCBs remained in the private sector.     

Organizational identification and workplace behavior: More than meets the eye

Organizational identification is a theoretically profound and practically important construct. It fundamentally transforms the relationship between employees and their work organizations, because highly identified employees integrate their organizational memberships with their sense of who they are. This transformation enhances highly identified employees’ work performance and contributions to the organization. However, despite considerable research on the benefits of organizational identification for employee behavior, theorizing about this effect and its underlying mechanisms remains underdeveloped. In particular, there has not been sufficient theoretical development regarding the specific types of work behaviors that follow from organizational identification, the psychological mechanisms that underlie these behavioral consequences, or observers’ evaluations of these behaviors and those enacting them. To address these issues, we present a framework of the behavioral consequences of organizational identification as well as observers’ reactions to them. Our framework highlights two distinct motivational orientations that underlie organizational identification, one that reliably leads to conformist work behaviors and one that may lead to deviant work behaviors that violate the status quo to advance organizational interests. Moreover, our framework highlights that reactions to these behaviors will differ depending on the organization’s emphasis on means versus ends. Overall, we emphasize that the benefits of organizational identification for work behavior are not as straightforward or as widely recognized as implied in prior research.