PROPERTY RIGHTS AND LOSS AVERSION IN CONTESTS

We analyze the effects of property rights and the resulting loss aversion on contest outcomes. We study three situations: in “gain” two players start with no prize and make sunk bids to win a prize; in “loss” both the players start with prizes and whoever loses the contest loses their prize; and in “mixed” only one player starts with a prize that stays with him if he wins, but is transferred to the rival otherwise. Since the differences among the treatments arise only from framing, the expected utility and the standard loss aversion models predict no difference in bids across treatments. We introduce a loss aversion model in which the property rights are made salient, and as a result the reference point varies across treatments. This model predicts average bids in descending order in the loss, the mixed, and the gain treatment; and higher bids by the player with property rights in the mixed treatment. The results from a laboratory experiment broadly support these predictions. There is no significant difference in bids in the loss (gain) treatment and bids by property rights holder (nonholder) in the mixed treatment. A model incorporating both loss aversion and social preferences explains this result. (JEL C91, C72, D23, D74)     

Managing ambiguity: between markets and managerialism - a case study of 'middle' managers in further education

Advocates of devolved and market oriented Education reform, point to the benefits from self determination which enhance both teacher and managerial autonomy. Critics refer, on the other hand, to the ways in which running education institutions on business and accounting principles have introduced a new managerialism (Clarke et al, 1994; Pollitt, 1990; Clarke and Newman, 1997), which has driven a wedge between lecturers and senior manager interests. In Further Education, according to Elliott (1996a), this finds expression in conflict between lecturers in defence of professional and pedagogic values, and senior managers promoting the managerial bottom line (Randle and Brady, 1994). The danger in polarising such interests in this way is that it presents a plausible, if not oversimplified, analysis of organisational behaviour as market forces permeate FE. If this paper concurs with many critics on the effects of the new managerialism, it departs company from a prevailing determinism which assumes an over controlled view of the FE workplace (Seddon and Brown, 1997). Despite evidence of widespread casualisation and deprofessionalisation in FE, this paper examines changing managerial cultures in the FE workplace, in this case among academic 'middle' managers, which suggests that managerialism is not as complete or uncontested as is often portrayed. The paper draws on an ESRC research project conducted by the authors (ESRC no. R000236713), looking at Changing Teaching and Managerial Cultures in FE, at a time when the sector is emerging from a series of funding crises associated with redundancies, industrial action, mismanagement and low morale at college level.     

The domestic basis for the managerial career

Although there are now many studies of managers, there has been little research on how gender relations in the private sphere are lived to accommodate the managerial career. The organisation of domestic life and the household division of labour has largely been neglected. This article examines the domestic basis of the managerial career. The data are drawn from a larger study of women and men senior managers in five multinational companies. The analysis reveals that the domestic arrangements necessary to sustain the life of a senior manager are very different for men and women, giving the lie to the myth that equality has been achieved. My argument is that for all the company initiatives designed to promote equal opportunities, the managerial career is still largely dependent upon the services of a wife at home, or a housewife substitute in the form of paid domestic services.     

Accountability and nonprofit organizations: An economic perspective

A popular concern is whether the managers of nonprofit enterprise are accountable. This article considers accountability in the context of three questions. First, how do groups establish a basis on which to hold managers acountable? Second, to whom should a manager be accountable? Third, can a person or group make it important to a manager to act in the best interests of the person or group? These three questions are addressed by the fields of public choice theory, social choice theory, and principal-agent theory, respectively. A cynical way of summarizing the seminal findings in these areas of research is that public choice theory proves that groups will be unable to form, social choice theory proves that once a group forms, it will be unable to make good decisions, and principal-agent theory proves that a decision, once reached, is impossible to implement. A more optimistic view is that the problems identified by these research findings contain the seeds of their own solution, and that thereby valuable lessons for nonprofit managers can be adduced.     

The Role Structure of Chinese Managers

The study investigates the role structure of managers in China's Henan province. The results produce a two-facet classification consistent with Shapira and Dunbar's findings for North American managers, yet displaying a number of unique features attributed to the Chinese business environment. The leader's role of the Chinese manager splits into task-related and relationship-oriented activities, and the monitor role is plotted across the informational and decision facets. An addition to this study, the political role is also found across the two facets, providing integration across the various managerial activities. An open system model of the Chinese managerial role is proposed.     

It's Not What You Do,But Who You Are: Informal Social Control,Social Status,and Normative Seriousness in Organizations

This paper analyzes the impact of managerial social status on the normative evaluation of managerial acts in organizational contexts. We test several propositions on the relationship between social status and normative evaluation derived from Donald Black's theoretical framework on social control. The research design consists of a factorial survey of 200 managers. Each respondent evaluated the seriousness of a normatively questionable managerial act. In each vignette, the perpetrator's social status was systematically manipulated in either a high or a low condition. The results generally support the argument that the higher a manager's social status the less vulnerable that individual is to unfavorable normative evaluations, holding constant the act. The paper closes with discussion of our findings in light of social structural and rational choice perspectives on informal social control in organizations. Additionally, we discuss methodological issues related to experimental research on informal social control in organizations, the consistency of our findings with those from previous studies of social control across diverse settings, potential theoretical applications and extensions of Black's framework in organizational contexts, and practical implications for the implementation of corporate codes of conduct and corporate dispute resolution systems.     

Organizational Restructuring and the Achievement of an Equal Opportunity Culture

The Opportunity 2000 Campaign has recognized that equal opportunity policy change has to be accompanied by a process of culture change in organizations. However, sustaining commitment to an equal opportunity culture may be a difficult task in times of rapid and varied organizational change. In particular, the volume and scope of ‘restructuring’ that follow mergers, acquisitions, divestment, the introduction of internal markets, and other changes in business strategy often lead to ‘downsizing’, ‘delayering’, and outsourcing of business functions. This can have very variable outcomes for the careers of women managers. For them the experience of organizational restructuring is akin to participation in a lottery in which they are occasionally winners, but usually losers. This is the main finding from in-depth case studies of three large organizations in the public sector, pharmaceuticals, and financial services, which have all experienced some form of ‘restructuring’ over the last five years. The main conclusion of this research is that unless restructuring involves an expansion of managerial positions it is likely to disadvantage women managers. The reasons for this are that it leads to job losses in functions where women are concentrated; highlights the disadvantages of poor line manager support; reinforces exclusion from the valuable informal organizational networks that provide access to career development opportunities; and renders formal equal opportunity policy monitoring ineffective. These findings have considerable implications for organizational and national policy initiatives to achieve an equal opportunity business culture.     

The Subjectivity of Fairness: Managerial Discretion and Work–Life Balance

We use organizational justice theory to examine how perceptions of fairness affect the decision‐making process of line managers. In‐depth interviews were conducted with 35 Irish managers to explore how managers make organizational allocation decisions in cases where it is impractical to offer work–life balance accommodations to all employees. The findings suggest that firstly, managers construct the ‘life’ aspect of work–life balance within a heteronormative framework, where the emphasis is on caregiving and most usually parenting. Secondly, managers actively use their decision‐making powers around both formal and informal work–life balance supports to minimize injustice within their departments. By bringing together ideas about organizational justice and managerial decision‐making, we indicate how managers determine fairness through a decision‐making process narrowed by embedded gender role beliefs. Implications for future research and practice are discussed.     

‘Girls Who Do Boys Like They're Girls’? Exploring the Role of Gender in the Junior Management of Contemporary Service Work

This article attempts to explain the clustering of women managers at junior managerial grades in the service sector by focusing on the structuring and organization of work in a call centre. The article is based on an ethnography of an organization and seeks to contribute to the ongoing debate in gender research by exploring and documenting the requirement for the enactment of masculinities at work for successful managers. Central to our account is the role of team leader which, as a junior management position, occupies a key role in understanding and accounting for the gendered hierarchical terrain of contemporary service‐based organizations. In exploring the role of team leader, a position that tends overwhelmingly to be held by female staff, we draw attention to the perception of the gendered nature of the role by subordinate members of the organization, the team‐leaders themselves and more senior managers. The position is also brought into sharp relief in comparison with the subordinate role of the ‘problem manager’, a position overwhelmingly held by men.     

Supervision and mentoring in child and family social work: The role of the first-line manager in the implementation of the post-qualifying framework

This article examines how the support needs of candidates undertaking CCETSW's Post-qualifying awards may impact on traditional supervision as provided to child and family social workers. Based on pilot research which underpinned the University of Leicester's 'Post Graduate Certificate in Supervision and Mentorship (Child Care) by Distance Learning', this article describes how a small sample of social workers, first-line managers, staff development officers and senior managers, view the functions of supervision in their agencies, and what they think about the involvement of line managers in the process of mentoring and assessing staff working towards further qualifications. It is suggested that there may be difficulties associated with line managers acting as mentors, such as conflict of interest, lack of objectivity and inadequate preparation and training, but that such difficulties should not obscure the potential benefits. A key benefit involves line managers having an opportunity to refocus on the developmental and supportive aspects of supervision that may have been eroded over recent years in favour of a narrower, more managerial approach. The article concludes that, although the implementation of the PQ framework presents many challenges in relation to the role of the first-line manager, it has the potential to create work-place cultures of a more developmental and professional nature, which ultimately works to the advantage of those who use social work services.     

Managerial discourse and the restructuring of a district authority

This paper arises out of continuing debates on the class position of managers and professionals in the context of public sector restructuring. Recently, attention has been focused on the self-sustaining and autonomous character of ‘professionalism’ in organisational dynamics. Such an approach underplays the cultural significance of managerial discourse as this is active in the reconstitution of professional work. In a case study of a district authority it is possible to highlight the complex nature of managerial discourse in its relations to both central and local government. This relation is above all mediated by shifting conceptions of public service on the part of managers and those in non-managerial positions. The paper concludes that due to the structural constraints under which local authorities operate directly managerial discourse is becoming increasingly significant in the reconstitution of professional and semi-professional identities.     

The ambivalence of the work of the hotel managers: an approach to ergonomics

This article uses the contributions of ergonomics to understand the work performed by hotel managers. The concern to understand the job of managers is something new in the ergonomics and few studies address this issue, especially in what concerns the work of hotel managers and its aspects of performance and health, which is the focus of this article. Through a literature review on the subject, it is sought to understand the managers' work activity, the impacts on their health and their organizational performance, as managers take an ambivalent position in organizations, since they have to deal directly with the demands of upper and lower hierarchies in a context of high competition, organizational changes and user requirements. It is then inferred there is a risk of increased work density for managers, bringing negative consequences to their health and organizational performance. This phenomenon, still poorly covered by ergonomics, contributes to a certain invisibility of the manager's work in society as a whole, when the manager may suffer from health problems, which are also common in certain populations of workers who do not take the managerial function.     

ARE THE DISABLED LESS LOSS AVERSE? EVIDENCE FROM A NATURAL POLICY EXPERIMENT

Research findings show that disabled persons often develop physical and psychological mechanisms to compensate for disabilities. Coping mechanisms may not be limited to the psychophysiological domain and may extend to cognitive bias and loss aversion. In this study, we apply unique microdata from a natural policy experiment to assess the role of loss aversion in home purchase among nondisabled and disabled households. Results of survival analysis indicate that the physically disabled are substantially less loss averse in home purchase. Furthermore, loss aversion varies with other population characteristics and attenuates with degree of disability. Findings provide new evidence of diminished cognitive bias and more rational economic decision‐making among the physically disabled. (JEL D03, C9, R38)     

ENDOGENOUS TIMING IN CONTESTS WITH DELEGATION

We study two‐player contests in which each player hires a delegate, and the delegates decide endogenously when to expend their effort. First, we look closely at the delegates' decisions on when to expend their effort, given contracts between the players and the delegates, and look at the players' decisions on their contracts. Then, we compare the outcomes of the endogenous‐timing framework with those of the simultaneous‐move framework. We show that the higher‐valuation player offers her delegate greater contingent compensation than her opponent, the delegate of the higher‐valuation player chooses his effort level after observing his counterpart's, the equilibrium expected payoff of the delegate of the higher‐valuation player is greater than that of his counterpart, and economic rent for each delegate exists. We show that, in the endogenous‐timing framework, each player offers her delegate better contingent compensation, each delegate's expected payoff is greater, and each player's expected payoff is smaller, as compared with the simultaneous‐move framework. (JEL D72)     

Information Use in Counter-Offer Decisions: An Examination of Factors that Influence Management Counter-Offer Decisions

We examine factors which influence manager assessments of employee value in response to outside employment offers. Data were collected from 312 managers on counter-offer decisions. We found the size of manager counter-offers increase as a result of the attractiveness of the outside offer, the presence of a neutral, third-party recommendation and when the recommending direct supervisor has an incentive to minimize compensation costs. Additionally, we found a significant interaction between offer attractiveness and third-party recommendation, where counter-offers made to employees with highly attractive offers increased more dramatically when a neutral manager recommended the employee in addition to the immediate supervisor.     

Gambling versus investment: Lay theory and loss aversion

Gambling and investment are two domains that involve financial decisions. The present research investigates people’s lay theories about gambling and investment, and how these lay theories affect loss aversion in these domains. Lay people’s understanding of gambling and investment is often largely based on information that is immediately available to them. Moreover, information about losing money by gambling and earning money through investments are more predominant than information about earning money by gambling and losing money through investments. Hence, we hypothesized and found that people tend to hold lay theories that gambling is more likely to cause losses and less likely to bring gains compared to investment (Study 1); and we observed a stronger loss aversion when the same monetary decision was framed as gambling rather than as an investment (Studies 2 to 6). This domain-framing effect held in both hypothetical and incentivized settings.     

INFORMATION AND ENDOGENOUS DELEGATION IN A RENT‐SEEKING CONTEST

We offer a new explanation for the occurrence of delegation in rent‐seeking contests. We consider a two‐player contest for a prize of common value. The players only know that the prize is high or low, with given probabilities. Each player can hire a delegate to act on his behalf. After a delegate is hired, she privately observes the true value of the prize. We derive the conditions under which, respectively, no player, only one player, or both players delegate in equilibrium. (JEL D7)     

Voicing by Adapting and Innovating Employees: An Empirical Study on How Personality and Environment Interact to Affect Voice Behavior

This article reports two studies exploring howcognitive style preferences for adaption innovationaffect the likelihood that employees will voice ideasfor organizational change toward their supervisors. As hypothesized, Study 1 demonstrates thatinnovatively compared to adaptively predisposed policeofficers are less likely to voice conventional ideas andmore likely to voice novel ideas for solvingwork-related problems. Besides a replication of thesefindings, Study 2 shows how work satisfaction and thequality of the supervisor as voice manager shape theimpact of adaption innovation on employee likelihood to voice. That is, compared to innovators,adaptors are more likely to voice conventional ideaswhen they are dissatisfied rather than satisfied withwork and perceive their supervisors as effective rather than ineffective voice managers. On the otherhand, innovators compared to adaptors report greaterlikelihood to voice novel ideas when they are satisfiedrather than dissatisfied with work and perceive their supervisors as effective rather thanineffective voice managers. Theoretical and practicalimplications of the findings are discussed.     

Resident councils between lifeworld and system: Is there room for communicative action?

In long-term care facilities, the participation of older people relates to individual care provision (individual level) and to policy decisions that affect all residents in a care organization (collective level). In the Netherlands, resident councils are set up in order to improve resident participation on a collective level. However, our research shows that managers and resident councils are faced with mutual frustration and ineffective interaction. This article investigates the extent to which Habermasian communicative action (herrschaftsfreie Kommunikation) between resident councils and managers in residential elderly care is actually possible by examining the interaction between resident councils and managers in two case studies. We conclude that resident councils find themselves between lifeworld and system. There is communicative action between resident councils and managers, but it is easily dominated by strategic action. Therefore, space for communicative action needs to be deliberately created in order to support resident council participation and influence.     

High job strain among social work managers and its relation to perceived work situation

The purpose of this study was to examine how middle managers within the personal social services in Sweden perceived demands, control and support at work. The study group included 402 frontline, second tier and third tier managers who have answered questions concerning their work situation and perceptions of their psychosocial work environment. Based on Karasek's demand–control model, a ‘high strain’ group was defined and analysed further. The results showed that this group experienced less support from immediate superiors, but no correlation could be found between high strain and other forms of support, such as courses on leadership, managerial supervision or networks. Organisational factors, such as municipality size, managerial level, number of subordinates and field of social work, seemed to be of little importance. Comparisons between the ‘high strain’ group and other managers showed that the high strain group spent more hours working with administration, that they to a lesser degree regarded budget responsibility as a way to exercise power in the organisation and that they had a more negative view on their organisation, especially concerning the possibility to influence decisions. They also had less confidence in the way the organisation was governed.