The effect of authentic transformational leadership on follower and group ethics

We propose a theoretical model to examine how authentic transformational leadership influences follower individual and group ethical decision making. We investigate how follower moral identity and moral emotions mediate the effect of authentic transformational leadership on follower authentic moral action. Furthermore, we explore how authentic transformational leadership develops group ethical climate, which in turn contributes to enhancing group ethics and to developing follower moral identity and moral emotions. Future research and practical implications are discussed.     

Management and Business Ethics: A Critique and Integration of Ethical Decision-making Models

This paper critically reviews the literature relating to the management of ethics within organizations and identifies, in line with other authors, a gap between theory and practice in the area. It highlights the role of management (both as an academic discipline and from a practitioner perspective) in bridging this gap and views managers, with their sense of individual ethical agency, as a key locus of ethics within organizations. The paper aims to address the theory–practice gap by surveying the business ethics literature in order to identify, draw together and integrate existing theory and research, with a particular emphasis upon models of ethical decision-making and their relationship to work values. Such an endeavour is necessary, not only because of the relative neglect of management practice by business ethics researchers, but also because of the current lack of integration in the field of business ethics itself. The paper outlines some of the main methodological challenges in the area and suggests how some of these may be overcome. Finally, it concludes with a number of suggestions as to how the theory–practice gap can be addressed through the development of a research agenda, based upon the previous work reviewed.     

Strategic Management in the Public Sector: Reflections on It’s Applicability to Iranian Public Organizations

Strategic management is a managerial story of private sector that has been transferred to the public sector. Many authors have challenged its applicability in public organizations. This paper discusses some important barriers to implementation of strategic management in the public sector empirically. After presenting a conceptual model, we examine several important factors that influence the failure or shortcomings of public sector strategic management. The last section of paper offers implications for theory and practice.     

The Bind that Ties: Socioemotional Wealth Preservation in Family Firms

A growing body of research shows that family firms are different from other organizations in significant ways. In this paper we review this literature by examining how family firms differ from nonfamily firms along five broad categories of managerial decisions. These categories encompass a set of key organizational choices concerning management processes, firm strategies, corporate governance, stakeholder relations and business venturing. We argue that socioemotional wealth or affective endowment of family owners explain many of these choices. We also examine some contingency factors (namely family stage, firm size, firm hazard, and the presence of nonfamily shareholders) that moderate the influence of socioemotional wealth preservation as a point of reference when making managerial decisions in family firms. Lastly, we explore the firm performance consequences of family ownership.     

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.     

From inconsistency to hypocrisy: When does “saying one thing but doing another” invite condemnation?

It is not always possible for leaders, teams, and organizations to practice what they preach. Misalignment between words and deeds can invite harsh interpersonal consequences, such as distrust and moral condemnation, which have negative knock-on effects throughout organizations. Yet the interpersonal consequences of such misalignment are not always severe, and are sometimes even positive. This paper presents a new model of when and why audiences respond negatively to those who “say one thing but do another.” We propose that audiences react negatively if they (a) perceive a high degree of misalignment (i.e., perceive low “behavioral integrity”), and (b) interpret such misalignment as a claim to an undeserved moral benefit (i.e., interpret it as hypocrisy). Our model integrates disparate research findings about factors that influence how audiences react to misalignment, and it clarifies conceptual confusion surrounding word-deed misalignment, behavioral integrity, and hypocrisy. We discuss how our model can inform unanswered questions, such as why people fail to practice what they preach despite the risk of negative consequences. Finally, we consider practical implications for leaders, proposing that anticipating and managing the consequences of misalignment will be more effective than trying to avoid it altogether.     

Informality and Formality in Medium‐sized Companies: Contestation and Synchronization

Accounts of managerial practice in small and medium‐sized firms frequently draw upon notions of formality and informality. In this paper, we explore the relationship between these concepts through an analysis of managerial approaches to employment relations practice in six growing, medium‐sized organizations. Drawing on recent conceptual work on informality and formality, we argue that the use of the terms in previous analyses tends to neglect the co‐dependency of both the concepts and managerial approaches to the employment relationship. We present an alternative conceptualization of formalization and informalization processes that emphasizes synchronization through interactional practices. Through this analysis, we suggest that debate in this area can be reframed through thinking of informality and formality as a dualism rather than a dichotomy, and challenge the notion that small firms must, should or inevitably do move from informality to formality. From this, we construct an inclusive model of formality and informality that better reflects practice and enables further analytical development.     

Dignity in Western Versus in Chinese Cultures: Theoretical Overview and Practical Illustrations

Dignity is an important concept in ethics. Human rights organizations justify rights by appealing to human dignity. Prominent politicians have cited the need to protect human dignity and urged the founding of international institutions. The concept of human dignity is often used to evaluate and critique the ethics of select practices. In addition, the idea of dignity is used as a universal principle to ground universalist business ethics. This paper argues that there are substantial differences between the ways in which the West and China construe human dignity. Having documented these major differences, we consider two cases to show how the differences might “cash out” in actual business practice. Instead of relying upon a nonexistent universal concept of human dignity, we suggest that it is respectful and sound to seek to identify the many goods (teamwork, initiative, autonomy, respect for elders) that differing parties see at play in the case at hand and then to try to come up with ways to realize as many of these goods as possible.     

Of those who plan: A meta-analysis of the relationship between human capital and business planning

Business planning is a popular managerial practice, especially in the SME context. Yet, literature presents diverging perspectives regarding business planning and the role it fulfills for the individuals leading these organizations. To advance research, we focus on evidence regarding factors that determine whether and how individuals engage in business planning. Drawing on human capital concepts and the theory of planned behavior, we scrutinize how education and different prominent work experience types influence business planning behaviors. We use meta-analysis to aggregate data on 8095 observations leading SMEs from 31 independent data sets. We find critical differences in planning behaviors relating to human capital types, as well as to whether individuals engage in substantive planning processes or the specific preparation of a formal business plan. Implications of our findings for research on business planning are discussed.     

Deciding what's right: The role of external sanctions and embarrassment in shaping moral judgments in the workplace

We assert that previous research has overlooked the pervasive ambiguity in ethical situations in organizations, as well as how people pierce through this ambiguity to realize new distinctions between right and wrong. Focusing on well-intentioned individuals who unknowingly transgress, we present a theory of how they come to recalibrate their moral judgments. We begin by discussing the composition and nature of a moral judgment. Building on this discussion, we then consider how external sanctions can be used to shift moral judgments. Finally, we posit that internal emotional responses to sanctions (namely embarrassment) will facilitate this shift by triggering a sense of moral deficiency. More specifically, we assert that embarrassment will focus the transgressor's attention on what went wrong. This reflection provides an opportunity for the recalibration of the initial moral judgment. We conclude with a discussion of the implications of our theory.     

Is HRD in need of an ethics of care?

Human Resource Development (HRD) operates within competitive global environments and the changing expectations of societal moral values, which can be in conflict with organizational values, performance, and profit. These are underpinned by the unquestioning acceptance and ‘orthodoxy’ of free‐market economics, legalism, and codes of conduct that result in a lack of ethical analysis within HRD practice. In response to the forgoing, it will be argued that the ethics of care that espouses the values of human relationships, empathy, dignity, and respect is a legitimate approach to free-market lead ethical rule-based rationality that is often presented as the de facto position for HRD professional practice. It presents the ethical debates in which HRD operates within, before arguing for the ethics of care. Three case examples from practice are offered illustrating how HRD practice might respond through the lens of an ethics of care. Reflections and implications for HRD in the form of objections and responses are considered. It concludes that HRD professionals are faced with many difficulties when making decisions, and that the ethics of care offer is an alternative perspective for HRD practitioners.     

The Conflict between U.S. Patent Protection and Technological Innovation: Analysis and Problem Solving by Means of the Integrated Causal Model for Innovated Ethic

Criticisms of patent laws for technological innovations in the United States reveal a multifaceted milieu of problems centered around the protection of short‐term economic gain and individual property rights. In this article, we consider this a conflict between current patent laws and the innovation capabilities of organizations. We propose a solution that enables the company to assure its long‐term survival in the face of these restrictions. This presumes that the firm will at least maintain its innovation capacities while preserving the company's ethical values and those of its social environment. We offer a theoretical model that is designed to help managers and policymakers reorient their governance strategies for managing the innovation process, using the “ethics of responsibility,” which establishes the link to individual moral values at the beginning of a governance process as well as the consequences of a decision. Our integrated causal model of ethical innovation for patents is presented and implications for global organizations and possible solutions for patent law process failure are offered.     

Ambiguous Allure: The Value–Pragmatics Model of Ethical Decision Making

Research in organizational ethics emphasizes those dispositional factors that are expected to foster positive ethical behavior. We seek to contribute to this literature by including personal values that are in contention with moral outcomes. Specifically, we combine the values of hedonism and power with benevolence and universalism. Our underlying premise of this value–pragmatics model is that nonmoral, as well as moral, dispositional characteristics simultaneously influence ethical decision making. We further contribute to the existing research by investigating how these contending values interact with situational factors, such as performance rewards and punishments for unethical conduct. We administer an experiment to subjects (N = 177) and analyze their decisions regarding the likelihood they would act unethically. Results indicate that both morally relevant and nonmoral variables have direct effects on these decisions, and that nonmoral as well as moral values interact with situational factors to significantly influence decisions. Implications for practice and research are discussed.     

Managing Through Networks: Some Issues and Implications for the NHS

Hierarchies, markets and networks have been described as three alternative styles of organizing, each of which may call for distinctive managerial orientations and styles. The question arises as to whether there is now a deep-seated shift underway from organizational forms based on markets and hierarchies and towards more network-based forms of organization.
This paper assesses the significance of these broader developments with reference to changing managerial practice within a major UK organization (the NHS). It seeks to access the developing theory of network-based organizations; to assess empirically the significance of these developments for managerial practice within public-sector organizations such as the NHS; and to consider the organizational and managerial implications, for example, Human Resource Management (HRM) strategy. There have so far been few studies which have taken public-sector settings for study or which have sought to connect network theory to practice, and this paper can make a useful contribution in these regards.     

Safety and Aircraft Maintenance: A Moral Evaluation

In this article I will discuss the construction of safety in high reliability organizations. This construction is then evaluated from a moral point of view. I will argue that accidents happening to high reliability organizations make clear that we have to reconceptualize our notion of moral responsibility. This revised version was published online in July 2006 with corrections to the Cover Date.     

The management of firms’ alliance network positioning: Implications for innovation

In spite of the frequent calls for a much more integrated approach, the field of management still faces the ever continuing challenges in attempting to bridge the gap between academic research and managerial actions and practices. The field of strategic alliances and firms’ networks are those among which research and practice are more diverging. Trying to cover this separation, the article presents an empirical research on automotive industry that investigates the effects on innovation performance of the position that firms occupy in the network of alliances. The hypothesis that guides this research is that innovation is generated not only from the resources that a company is able to develop internally, but also through access to resources and capabilities owned by the external companies and organizations that the firm itself is tied to through alliances and cooperation agreements. Beyond this broad argument, the paper links tightly research and practice showing way and how the quality of access to resources owned by partners is influenced by the position occupied in the network of alliances and not only by the existence of single collaborative ties. Assuming a managerial approach which relies on the milestones of network research, different types of positioning in the network of alliances are discussed and tested on their impact on innovation.     

Managing diverse risks: An integrative framework

Risk is a crucial part of any business and managing risk is an essential function for management. This paper reviews current managerial practice and academic research in managing diverse risks. There are numerous elements of risk, some exogenous to the firm and others that are endogenous. In recent years exogenous elements of risk have increased both in number and complexity, and distinctions have blurred between national and international elements of risks because of the integration across borders of markets, institutions, and political and operational risks. An explicit classification of risks as exogenous and endogenous will focus managerial attention to the changing exogenous elements, to the often ignored endogenous elements, and to the needed integration of managing exogenous and endogenous risks. While there is an increasing body of research examining risk, there is a need to examine exogenous risk elements as systems of risk rather than as independent elements and integrate endogenous elements including behavioral and incentive-related aspects with the systems of exogenous risks. Additionally, international case studies and surveys about risk perceptions and attitudes of managers across different organizations and within levels of organizations will improve our understanding of the diverse risks faced by multi-national corporations.     

The Impact of Ethical Tools on Aggressiveness in Financial Reporting

The proposed adoption of International Financial Reporting Standards (IFRS) in the United States has ignited a debate as to whether the principles‐based nature of these standards better serves the interests of investors. While it is argued that these principled‐based standards will encourage more transparent financial reporting than the current rules‐based U.S. standards, critics argue that IFRS will invite more aggressive financial reporting through the liberal exercising of professional judgment. This empirical study aims to understand what individual and organizational factors may affect aggressiveness when making accounting judgments. In particular, we examine the influence that prior ethics training, codes of ethics and an individual's predominant moral reasoning schema have on adherence to company policy in an accounting‐related (depreciation) judgment. Results of the study show that respondents with prior ethics training are more likely to adhere to company accounting policy than those who have not had formal ethics education. Respondents presented with a company ethics code also were less aggressive in their accounting judgments than those who were not presented with a code prior to reading the scenario. Finally, decision aggressiveness was moderated by individuals who used conventional moral reasoning schemas.     

The multifaceted nature of social practices: A review of the perspectives on practice-based theory building about organizations

A vibrant body of literature on social practices has developed rapidly in recent years. However, a systematic analysis of the underlying perspectives that shape the way practice-based scholars contribute to theory building about organizational phenomena has escaped scholarly attention. It is of pivotal importance to examine the multifaceted nature of social practices and understand the process by which new practice-based knowledge is developed. Our study addresses this gap by disentangling how researchers have adopted the knowledge, materiality, ethics, and politics perspectives that – as past influential work has informed us – are particularly relevant to practice-based theory building. In so doing, we categorize the body of literature into themes that correspond to the organizational phenomena examined by social practice scholars: practice boundaries and coordination of work, technology at work, strategy formation, local particulars structuring everyday work, and transformation of work practices. By uncovering how scholars adopt the four perspectives within each theme, our review shows that scholars (i) predominantly adopt the knowledge perspective, (ii) neglect the politics perspective when looking ‘inside’ a social practice, (iii) strikingly de-emphasize the ethics perspective, and (iv) isolate each of the four perspectives used in theory building. We then examine in detail the implications of our work for future research on social practices and conclude with a number of theoretical and methodological suggestions.