Does governance confer organisational resilience? Evidence from UK employee owned businesses

Current economic crisis has highlighted the importance of an organization’s ability to withstand economic shocks. This has rekindled interest in organization resilience on the one hand, and the relationship between alternative governance forms such as employee owned businesses (EOBs) on the other. We explore this relationship using performance data on 204 publicly traded non-employee owned businesses and 49 EOBs prior to the economic downturn (2004–2008), and during the economic downturn (2008–2009). This data is complemented with a survey of resilience related governance and organizational practices in 41 EOBs and 22 non-EOBs. Our results show that: (a) employee ownership that is combined with employee involvement in firm governance is associated with greater stability in business performance over a business cycle; (b) EOBs have longer investment payback horizon when compared to non-EOBs across a number of activities; (c) Top management in EOBs are more likely to seek employee input in strategic decision making; (d) EOBs are more likely to use employee involvement to achieve tighter coupling between feedback from operations and the setting of strategic direction for the firm. These results suggest that employee stock ownership programs alone are not sufficient to develop higher levels of organizational resilience. Managers must combine employee stock ownership with employee involvement in governance if they wish to build up resilience in advance of adverse economic conditions.     

Psychological Approaches to Values in Organizations and Organizational Behavior Management

Researchers studying individual and organizational value congruence are concerned with the degree to which the values of the employee and the organization for which he or she works agree and the affective outcomes that more or less agreement might predict. While a robust area of research, the applications following from it are somewhat limited. This paper reviews the concepts and research findings concerning value congruence, discusses various behavioral interpretations of the values construct, applies those interpretations to the organizational level, and offers recommendations for how these interpretations might point to more successful organizational change initiatives.     

The philosophical impact of Shintoism,Buddhism, and Confucianism on Japanese management practices

The philosophical influences of Shintoism, Buddhism, and Confucianism manifest themselves in a variety of ways in modern Japanese management practices. The paper explores the historical roots of these driving social forces and explains their relationship to such management practices as performance appraisal, employee motivation, leadership, equal employment opportunity, teamwork, and strategy formulation.This paper was presented at the Association of Management National Conference held in Atlanta, Georgia on August 5–9 1993.     

Trust in leadership: A multi-level review and integration

Leaders have been argued to play a key role in determining organizational effectiveness across all levels (e.g., individual, team, unit) that exist within organizations. A key component in a leader's ability to be effective within such environments is the degree to which subordinates and co-workers trust him/her. Therefore, it is not surprising that researchers and practitioners alike are interested in identifying the mechanisms through which trust in leadership can be developed as well as those factors which moderate this relationship [e.g., Gillespie, N. A., Mann, L. (2004). Transformational leadership and shared values: The building blocks of trust. Journal of Managerial Psychology, 19, 588–607; Kouzes and Posner, 1995; Roberts, K. H., O'Reilly, C. A. (1974). Failures in upward communication in organizations: Three possible culprits. Academy of Management Journal, 17, 205–215; Whitener, E. M. (1997). The impact of human resource activities on employee trust. Human Resource Management Review, 7, 389–404]. Despite this, research that has addressed the factors that foster trust in leaders and the outcomes of this trust has been disjointed and, as yet, no comprehensive model has been presented to systematically examine these factors. Therefore, the purpose of this article will be to present an integrative model of trust in leadership.     

Some implementation experiences with just-in-time manufacturing

A case study on the implementation of a just-in-time (JIT) production system by a Canadian manufacturer in the heavy machinery industry is presented. Many hurdles and difficulties were encountered during implementation and the way in which these problems were resolved is reported. While the successful implementation of a JIT system depends on a host of technical and human factors, this study suggests that the people involvement factor is the most crucial. It is seen that the key elements to securing people involvement are institution leadership, company-wide education and training and mutual understanding, trust and respect among employees. The moral of this study is that without employee involvement nothing will happen and no result will be achieved.     

A review of: “Basic Guide to System Safety.” By J. W. VINCOLI, (Van Nostrand Reinhold, 1993), £27 50. Market: Managers and novice safety engineers.

This paper explores the issue of loyalty and commitment of team workers in industrial collaboration. The similarities and differences between normal and extended or virtual teamwork are described. Extended teams are different from normal teams in terms of location, diversity and composition over time. A comparison of the antecedents of commitment in normal situations reveals that commitment seems to be stimulated by industrial collaboration, because of some enriching job characteristics. However, questions arise related to the focus (organization, work group/collaboration team, occupation) and the form (affective, continuance, normative) of commitment. Further research in this relatively under researched area is needed. Despite the lack of specific research, some organizational policies are pointed to that enhance commitment, such as employee involvement, shared values and socialization practices.     

Why communities of practice succeed and why they fail

A specific form of intra-organizational networks – a community of practice (COP) – is increasingly regarded as an important structure within organizations. This network structure is well suited for the development and sharing of knowledge and practices across divisions. Our research explores the most salient reasons for the success and failure of such networks. An investigation of 57 COPs from major European and US companies led to the discovery of 10 “commandments” that lead to the successful development and sharing of best practices. It also identified five main reasons for failure.     

A comparison of three weight elicitation methods: good, better, and best

This paper compares the properties and performance of three weight elicitation methods. It is in effect a “second round contest” in which the Bottomley et al. (2000) champion, direct rating (DR), locks horns with two new challengers. People using DR rate each attribute in turn on a scale of 0–100, whilst people using Max100 first assign to the most important attribute(s) a rating of 100, and then rate the other attributes relative to it/them. People using Min10 first assign the least important attribute(s) a rating of 10, and then rate the other attributes relative to it/them.The weights produced by Max100 were somewhat more test–retest reliable than DR. Both methods were considerably more reliable than Min10. Using people's test–retest data as attribute weights on simulated alternative values in a multi-attribute choice scenario, the same alternative would be chosen on 91% of occasions using Max100, 87% of occasions using DR, but only 75% of occasions using Min10. Moreover, the three methods are shown to have very distinct “signatures”, that is profiles relating weights to rank position. Finally, people actually preferred using Max100 and DR rather than Min10, an important pragmatic consideration.     

Empowered Learners: The New Paradigm for 2000 and Beyond

In the fast-growing new technology-based industrial landscape in the UnitedStates, companies have had to face a major problem. Many job applicants havehad such a poor educational preparation that many companies are required tooffer remedial courses in the basic subjects to ensure employee readiness forsuch positions. Many times, however, the educational approach taken bycompanies is very similar to that which was taken by the schools which havefailed these employees – the typical `chalk and talk' approach. Thisarticle suggests an alternative approach to employee education. Thisresearch-based theory states each individual learns in a unique way which canbe diagnosed and utilized to ensure maximum educational effectiveness. Thisapproach has already been employed in a high school setting, and the resultssupport this approach. The theory is not predicated on school-age studentsalone, hence a transition to the workforce is entirely credible, to thebenefit of companies and individuals alike.     

The barrier effect of conflict with superiors in the relationship between employee empowerment and organizational commitment

The author proposes the idea that conflict with superiors has a barrier effect in the positive relationship between employee empowerment and organizational commitment. Superiors with higher authority rankings set and pursue organizational goals and values to which employees with lower authority rankings are expected to become committed. Conflicts with those superiors may hinder empowered employees to develop or maintain high levels of organizational commitment. A questionnaire survey among 91 secondary school teachers in The Netherlands provides empirical support for this suggestion. The moderator effect of conflict with superiors that was proposed and found in this study suggests that psychological empowerment in the workplace interacts with other employee experiences in its effects on an employee's commitment to the organization.     

R&D员工领导创新期望、内部动机与创新行为研究

在现代组织行为研究领域推动员工创造、创新的组织行为研究是一个热点问题。本文通过对我国跨地区企业研发员工的问卷调查研究对领导创新期望、员工内部工作动机及其创新行为间的关系进行了实证探讨。研究发现,在我国背景下,直属领导对下属员工的创新期望、员工之间横向交换对研发员工创新的行为都具有正向预测作用,其中员工内在工作动机在领导创新期望、员工横向交换对员工创新行为的作用路径关系中起到中介效应。本研究的调查结论不仅有助于加深我们对组织内员工创新行为推动和作用机制的深入了解,同时也会对我国企业,特别是高新技术企业推动员工创新的管理实践提供借鉴。     

The Content of the Psychological Contract

The perceived obligations of the two parties to the employment relationship, the employee and the organization, were explored using the critical incident technique. Incidents were elicited which exceeded or fell below the treatment which each party might reasonably expect from the other; obligations were then inferred from these incidents. Respondents were a representative sample of UK employees (n=184), and a sample of UK managers (n=184) (the organization group).
Twelve categories of organization obligation and seven of employee obligation were inferred from these data. While the two groups identified the same content categories as each other, they did so with different relative frequency. The organization group quoted more relational than transactional forms of organizational obligation, the employee group the reverse. This finding was attributed to a lack of trust of the organization by employees, and to their job insecurity. The groups, however, did not differ in terms of the frequency of the most commonly cited employee obligations; timekeeping, good work and honesty. This was taken to indicate the prevalence of a traditional and input-oriented view of employee obligations. Examples were discovered of a reciprocal element to the contract. It was concluded that, despite the level of agreement between the two parties regarding the elements of the psychological contract, they were in danger of holding different perceptions of its balance; and that organizations should only expect employee commitment if they themselves have fulfilled their side of the contract.     

The barrier effect of conflict with superiors in the relationship between employee empowerment and organizational commitment

The author proposes the idea that conflict with superiors has a barrier effect in the positive relationship between employee empowerment and organizational commitment. Superiors with higher authority rankings set and pursue organizational goals and values to which employees with lower authority rankings are expected to become committed. Conflicts with those superiors may hinder empowered employees to develop or maintain high levels of organizational commitment. A questionnaire survey among 91 secondary school teachers in The Netherlands provides empirical support for this suggestion. The moderator effect of conflict with superiors that was proposed and found in this study suggests that psychological empowerment in the workplace interacts with other employee experiences in its effects on an employee's commitment to the organization.     

Situational leadership theory: A test of three versions

Three versions of the leadership dynamics derived from Hersey and Blanchard's Situational Leadership Theory were identified: (1) the original, 1972, statement of the theory; (2) the revised, 2007, theory; and (3) an alternative statement of the theory's essential principle of differential follower response to “autonomy afforded by the leader” in conjunction with “follower developmental level” (as indexed by employee job experience). Survey data collected from 357 banking employees and 80 supervisors, sampled from 10 Norwegian financial institutions, were analyzed for predicted interactions. Results indicated that the 2007 revised theory was a poorer predictor of subordinate performance and attitudes than the original version. The third, alternative, version (which predicted an autonomy × job experience interaction) offered promise for further exploration of the theory's essential principle that employee outcomes are associated with prescribed leader behaviors in combination with follower developmental level, although this version also did not add substantially to accounting for criterion variance.     

Fishing in Urban New Jersey: Ethnicity Affects Information Sources,Perception, and Compliance

Recreational and subsistence angling are important aspects of urban culture for much of North America where people are concentrated near the coasts or major rivers. Yet there are fish and shellfish advisories for many estuaries, rivers, and lakes, and these are not always heeded. This paper examines fishing behavior, sources of information, perceptions, and compliance with fishing advisories as a function of ethnicity for people fishing in the Newark Bay Complex of the New York–New Jersey Harbor. We test the null hypothesis that there were no ethnic differences in sources of information, perceptions of the safety of fish consumption, and compliance with advisories. There were ethnic differences in consumption rates, sources of information about fishing, knowledge about the safety of the fish, awareness of fishing advisories or of the correct advisories, and knowledge about risks for increased cancer and to unborn and young children. In general, the knowledge base was much lower for Hispanics, was intermediate for blacks, and was greatest for whites. When presented with a statement about the potential risks from eating fish, there were no differences in their willingness to stop eating fish or to encourage pregnant women to stop. These results indicate a willingness to comply with advisories regardless of ethnicity, but a vast difference in the base knowledge necessary to make informed risk decisions about the safety of fish and shellfish. Although the overall median income level of the population was in the $25,000–34,999 income category, for Hispanics it was on the border between $15,000–24,999 and $25,000–34,999.     

A review of the Chinese cultural influences on Chinese enterprise management

In order to create and sustain competitive advantage, a company should not only develop technologies to create products and processes that meet customer needs, but also stimulate a corporate culture that commits to continuous performance improvement. Managing corporate culture is one of a number of important factors that make for organizational change and business success. This paper reviews the cultural roots and identifies the characteristics of Chinese cultural values and management. A comparative analysis of the differences between Anglo-American and Chinese cultures is made. The cultural influences on Chinese management systems are then elaborated with reference to enterprise management in Mainland China and Hong Kong. With unique cultural heritage, collective orientation has a pervasive influence on the mode of Chinese management and organization. The prevailing Chinese culture values stress largely the paternalistic approach to management, acceptance of hierarchy and the importance of relationships. Today's Chinese enterprises need to determine changes in practice or value or both aspects of corporate culture in order to facilitate organizational change and maintain a competitive edge over their rivals. The paper also discusses the links of cultural values to employee involvement (EI) and total quality management (TQM), and initiates a need to manage cultural influences on EI/TQM practices to improve organizational performance in Chinese enterprises.     

Representing employee requirements in labour tour scheduling

In this paper, we use the methodology of simulation to evaluate six approaches for handling employee requirements in an LP-based labour tour scheduling heuristic. We model employee requirements both as minimum acceptable staffing levels—where understaffing is unacceptable—and as target staffing levels—where both under- and overstaffing are acceptable. For each representation of employee requirements, we evaluate forms of the heuristic that use problem-specific and problem-independent information on the costs of employee surpluses and, if appropriate, employee shortages. Over an extensive test data set, the target-staffing approach using problem-specific cost information outperformed all other procedures. Specifically, it generated schedules costing less than 87% of those developed using the approach most commonly found in the literature. Its schedules were also almost 5% cheaper than those of its closest competitor. We discuss the managerial and research implications of the findings and provide suggestions for future research.     

Neither Hierarchy nor Identity: Knowledge-Governance Mechanisms and the Theory of the Firm

Building on existing empirical research on knowledge transfer, sharing and integration in inter-firm and intra-firm relations, it is argued that there is little evidence and theoretical reason for assigning exclusive properties to internal or external organization, as such, in a knowledge-governance respect. A more micro framework is then theoretically developed, in which a portfolio of knowledge-governance mechanisms is evaluated according to two criteria: the cognitive `possibility' to sustain certain types of knowledge interchanges; and the comparative cost of the mechanism where more than one is applicable.The results of both the empirical and conceptual analyses conducted cast doubts on the possibility of having a `theory of the firm,' based on the deterministic presence/absence of certain attributes and the possession of exclusive properties – no matter if hierarchy or identity – and call for a more `continuous' (rather than `discrete') and `combinative' (rather than mutually exclusive) notion of governance forms.