CEO burnout,managerial discretion,and firm performance: The role of CEO locus of control,structural power,and organizational factors

Despite the possibility of burnout resulting from dynamics in firms' upper echelons, little if any work has focused on chief executive officer's (CEO's) burnout and firm performance. Drawing on managerial discretion theory, this article analyzes the influence of CEO burnout on firm performance and the moderating roles of the individual (CEO locus of control), structural power (CEO duality and CEO tenure), and organizational characteristics (size, age, and resource availability) related to managerial discretion. Using a sample of 156 CEOs in Swedish firms, we find a negative association between CEOs who report higher burnout and firm performance. Our results confirm that CEO duality and resource availability ameliorate and firm size exacerbates the negative association between CEO burnout and firm performance. Contrary to our expectations, CEO locus of control, CEO tenure, and firm age do not influence this relationship. We discuss the implications of our research for upper echelons theory and strategic leadership theory.     

Assessing Engineering Resilience for Systems with Multiple Performance Measures

Recently, efforts to model and assess a system's resilience to disruptions due to environmental and adversarial threats have increased substantially. Researchers have investigated resilience in many disciplines, including sociology, psychology, computer networks, and engineering systems, to name a few. When assessing engineering system resilience, the resilience assessment typically considers a single performance measure, a disruption, a loss of performance, the time required to recover, or a combination of these elements. We define and use a resilient engineered system definition that separates system resilience into platform and mission resilience. Most complex systems have multiple performance measures; this research proposes using multiple objective decision analysis to assess system resilience for systems with multiple performance measures using two distinct methods. The first method quantifies platform resilience and includes resilience and other “ilities” directly in the value hierarchy, while the second method quantifies mission resilience and uses the “ilities” in the calculation of the expected mission performance for every performance measure in the value hierarchy. We illustrate the mission resilience method using a transportation systems‐of‐systems network with varying levels of resilience due to the level of connectivity and autonomy of the vehicles and platform resilience by using a notional military example. Our analysis found that it is necessary to quantify performance in context with specific mission(s) and scenario(s) under specific threat(s) and then use modeling and simulation to help determine the resilience of a system for a given set of conditions. The example demonstrates how incorporating system mission resilience can improve performance for some performance measures while negatively affecting others.     

How and when a salesperson's perception of organizational politics relates to proactive performance

Politics in the workplace is a reality of organizational life. Several studies have investigated the negative implications of perceived organizational politics on various work attitudes and performance measures but not on proactive performance. However, proactive performance is important in a sales context because salespeople operate in an uncertain environment, and some task aspects cannot be formalized. Moreover, there is still a need for research to analyse the psychological mechanisms that lead perceived organizational politics to cause negative reactions from employees as well as to provide new insights on the boundary conditions of this process. Therefore, we examine the effect of perceived organizational politics on proactive performance through a salesperson's trust in the sales manager, as well as the moderating role of the salesperson's experience.This study uses dyadic data from 192 salespeople and their sales managers from a range of industries. The model entails a moderated mediation process. Results support the proposed model. The findings contribute to the salesforce management literature by suggesting the need to consider the importance of perceived organizational politics and by aiding in the understanding of how and when it hinders proactive performance.     

Whatever it takes: Leaders' perceptions of abusive supervision instrumentality

In this paper we examine how leaders' perceptions of the instrumental benefits of abusive supervision shape their tendencies to abuse their employees. We posit that leaders who believe abuse has a positive impact on employee performance will engage in more abusive supervision than their peers, with downstream implications for employees' counterproductive work behaviors. Furthermore, we position leader empathic concern as a boundary condition, whereby empathic concern mitigates the effects of leaders' perceptions of abusive supervision's instrumentality. Data from two studies employing both experimental and field survey designs offer convergent support for our hypotheses. Overall, our findings challenge the prevailing view that abusive supervision is primarily motivated by a desire to aggress, instead demonstrating that leaders sometimes abuse their employees in the pursuit of more pro-organizational goals.     

Executive turnover – Firms’ subsequent performances and the moderating role of organizational characteristics

I apply context-emergent turnover (CET) theory to investigate how different organizational characteristics moderate the effect of executive turnover on firm performance. I suggest and investigate different organizational characteristics as contextual factors. I find that executive turnover reduces future sales and employment growth, and show that three organizational characteristics (the firm's age, top management tenure, and employee tenure) moderate this effect. These results contribute to our understanding of the role of context in moderating executive turnover. Previous studies that examined the performance effects of executive turnover have often struggled to prove the causality between this event and a firms' post-turnover performance conclusively. The problem is that executive turnover is often correlated with a firm's current performance and expected future challenges. I address this endogeneity problem by exploiting the exogenous variation in firms' performances following 516 top managers' unexpected deaths. I use a matched sample to investigate which organizational characteristics that mitigate the negative effect on the firms' subsequent performances resulting from these executive turnovers. I obtained this sample randomly from a comprehensive dataset containing yearly observations of all Danish firms from 1995 to 2007.     

Strategic management step by step

This paper summarizes the application of Strategic Decision Making Process in a small company. The project described is an example taken from in-company projects conducted by the CAPITB Management Advisory Unit across the industry sectors and was part of the Strategic Decision Making Process Research and Project Work Programme.It describes the stages and work involved in the development and implementation of the Company's strategy and also identifies some of the benefits and problems which stemmed from the work.     

The servant leadership advantage: When perceiving low differentiation in leader-member relationship quality influences team cohesion,team task performance and service OCB

How does servant leaders' unique ability to place each follower's needs above their own influence relationships between followers and impact their collective performance? In a study that integrates principles of servant leadership with the social comparison theoretical framework, we tested a group-level model to examine how servant leadership induces low perceived differentiation in leader-member relationship quality (perceived LMX differentiation) within a group, which strengthens team cohesion and in turn positively influences team task performance and service-oriented organizational citizenship behaviors (service OCB). Our sample comprised 229 employees nested in 67 work teams. Structural equation modeling results indicate that servant leadership significantly predicts low perceived LMX differentiation; perceived LMX differentiation is strongly related to team cohesion such that the lower the perceived differentiation, the stronger the team's cohesiveness. And, team cohesion is also strongly related to both the team's task performance and service OCB. Perceived LMX differentiation and team cohesion mediate the effect of servant leadership on both team task performance and service OCB.     

Daily transformational leadership and employee job crafting: The role of promotion focus

Transformational leaders are expected to challenge their followers to take greater ownership of their work, allowing the leader to align followers with tasks that enhance their performance. In the present study, we hypothesize that transformational leadership is positively related to followers' job-crafting behaviour – proactive behaviour aimed at optimizing job demands and job resources. Moreover, we argue that followers' promotion focus (i.e. being driven by growth and development needs) positively moderates this relationship. Data were collected from 107 employees from Norwegian knowledge-based organizations (response?=?93.2%). Participants responded to a general questionnaire and five daily diary questionnaires (total N?=?535 occasions). The results of multilevel analyses revealed partial support for our hypotheses. Followers' day-level perception of their leader's transformational behaviour was positively related to followers' day-level job crafting in the form of increasing structural and social resources. Moreover, daily transformational leadership was particularly beneficial for job crafting when followers scored high (vs. low) on the trait promotion focus. We conclude that transformational leaders can encourage their followers' use of job crafting, and that employees' promotion focus facilitates this effect.     

Impact of influence and skill on managerial performance

Part of Heller's contingency model of leadership and decision making [11] has been modified. The basic components of the modified part of the model are influence, skill use, job performance and job satisfaction. Data from a study of 97 British and Sudanese managers are used to test the modified model. Positive relationships have been found between the four components. The major findings of this research are that while the strength of the relationship between ‘influence and satisfaction’ on the one hand and ‘skill use and satisfaction’ on the other differs only slightly, the relationship between ‘skill use and performance’ is much stronger and much more established than the relationship between ‘influence and performance’. These results have been established in both the Sudan and Britain.     

Core self-evaluations mediate the association between leaders' facial appearance and their professional success: Adults' and children's perceptions

Although the link between facial appearance and success is well established, the mechanisms responsible for this association have remained elusive. Evolutionary theory suggests that perceived leadership characteristics should be important for men's self-concept. Drawing on implicit leadership theory and evolutionary perspectives, we therefore examined the associations between first impressions based on facial appearance, core self-evaluations (CSEs), leadership role occupancy, and career success among a sample of working men. In Study 1, we found that CSEs mediated the relationship between individuals' facial appearance and measures of their success as leaders. In Study 2, we replicated these results using children's ratings of facial appearance, thus suggesting that basic properties of the targets' faces communicated their leadership ability more than the perceivers' life experience or acquired knowledge. These results suggest that people may use facial appearance as a diagnostic tool to determine the leadership ability of others.     

Resilience of Cyber Systems with Over‐ and Underregulation

Recent cyber attacks provide evidence of increased threats to our critical systems and infrastructure. A common reaction to a new threat is to harden the system by adding new rules and regulations. As federal and state governments request new procedures to follow, each of their organizations implements their own cyber defense strategies. This unintentionally increases time and effort that employees spend on training and policy implementation and decreases the time and latitude to perform critical job functions, thus raising overall levels of stress. People's performance under stress, coupled with an overabundance of information, results in even more vulnerabilities for adversaries to exploit. In this article, we embed a simple regulatory model that accounts for cybersecurity human factors and an organization's regulatory environment in a model of a corporate cyber network under attack. The resulting model demonstrates the effect of under‐ and overregulation on an organization's resilience with respect to insider threats. Currently, there is a tendency to use ad‐hoc approaches to account for human factors rather than to incorporate them into cyber resilience modeling. It is clear that using a systematic approach utilizing behavioral science, which already exists in cyber resilience assessment, would provide a more holistic view for decisionmakers.     

Chinese workers' work ethic in reformed state-owned enterprises: implications for HRD

Work ethic, as the construct of work-related values and attitudes, directly affects employees' job performance. Work ethic subjects to the influence of business and social practices. China is in the mix of major economical and political transformation, although little is known about how work ethic has changed for Chinese workers since the economic reform first initiated in 1979. This study is designed to examine work ethic currently held by workers of Chinese state-owned enterprises (SOEs). Findings revealed work ethic perceptions based on the multidimensional work ethic profile (MWEP), a Western work ethic profile, and the Confucian work ethic (CWE), an Eastern work ethic profile, resulted in similarities but often lived different life styles. The major differences tended to focus on perceptions of hard work, self-reliance and centrality of work. Other areas such as education, use of time, delay of graduation and other MWEP concepts were very similar to Chinese workers' work perceptions.     

Planning and control of purchasing performance: A new concept

The slowdown in sales growth experienced by many companies in Western Europe during the 1970s has led to an increasing awareness of the importance of measuring a company's operating performance relative to that of its competitors, and to a resurgence of interest in the production function. Production managers have traditionally enjoyed a very low status within the management hierarchy and this is particularly true of purchasing managers, yet many industrial companies with high manufacturing costs find that material costs constitute a major element in total factory cost, and any improvement in purchasing costs has an immediate and beneficial impact on company profitability. In this paper, the authors suggest three ways in which management can better measure, plan and control their company's purchasing performance: they emphasize the importance of concentrating on each product rather than each commodity; they outline a simple and practical way in which to measure and monitor a product's material costs over time so as to enable realistic purchasing objectives to be set; finally, they suggest a way of separating the effects of commodity price fluctuations from the performance of the purchasing manager so that the latter can be properly judged.     

CEO satisfaction and intended strategic changes: The moderating role of performance cues

How do CEOs react to attainment discrepancies in their organizations' performance? Scholars have generally argued that (only) when performance falls below a certain aspiration level do CEOs intend to change the organization's strategy. However, empirical evidence on this issue is ambiguous and inconclusive. We address this puzzle directly by studying how CEOs' cognitive interpretations of performance (their satisfaction with the firm's performance) affect the magnitude of intended strategic changes, and we explore the moderating effect of the context (performance compared to the industry) on this relationship. Using a sample of medium-sized organizations, we find that CEOs' satisfaction with performance is negatively related to intended strategic changes, as expected, but only in contexts of poor performance compared to the industry. The negative relationship becomes less pronounced when performance compared to the industry reaches a certain threshold and even appears to reverse when the latter is extremely high. Moreover, exploratory post hoc analyses tentatively suggest the existence of two alternative intended change trajectories: contractive as a reaction to dissatisfaction and poor performance, and expansive as a response to satisfaction and high performance. These findings help to contextualize the effects of attainment discrepancies in light of conventional performance feedback theory and alternative theoretical perspectives.     

International work experience and compensation: Is more always better for CFOs?

The CFO is increasingly considered the second most important executive in the firm after the CEO. Still, little is known about the factors that determine CFOs' compensation. Recently, it has often been claimed that, in MNCs, CFOs should have international work experience. But is a CFO's international work experience also reflected in his or her compensation? We combine human capital and social capital perspectives to account for both the upside and the downside of international work experience. We suggest that working abroad provides CFOs with valuable knowledge and skills which increase compensation; however, staying abroad for too long has an adverse effect due to losses in social network ties. We thus propose an inverted U-shaped relationship between CFOs' international work experience and their compensation. Furthermore, we suggest that this relationship is contingent on the characteristics of the CEO. In testing our hypotheses on a sample of the largest MNCs in Europe, we find support for the proposed relationships. Our study contributes to the literature on top management characteristics and executive compensation, specifically by providing a comprehensive understanding of how and when international work experience pays off for CFOs.     

Business models and dynamic capabilities

Business models, dynamic capabilities, and strategy are interdependent. The strength of a firm's dynamic capabilities help shape its proficiency at business model design. Through its effect on organization design, a business model influences the firm's dynamic capabilities and places bounds on the feasibility of particular strategies. While these relationships are understood at a theoretical level, there is a need for future empirical work to flesh out the details. In particular, studies that provide a better understanding of business model innovation, implementation, and change will also shed light on important aspects of dynamic capabilities.     

National programmes to promote youth training

The importance of education and training to this country's national performance is increasingly recognized. The introduction of the Youth Training Scheme, offering a year's workbased foundation training to 16- and 17-year-old entrants to the labour market, marks a major advance on Britain's poor record in this field. This article describes the Scheme's aims and mode of operation, traces its long gestation and reviews the progress during its first year. It relates the Scheme to wider national objectives for the development of training and to complementary initiatives in education, and discusses how it might be evaluated.     

Measuring user attitudes in MIS research: a review

Management information system (MIS) user attitude measurement and research has been motivated by two distinct perspectives, termed the implementation perspective and the information perspective. A survey of the most significant work based on these perspectives is presented. The consensus of this work is that MIS attitudes are related to MIS use, broadly speaking. However, the usage-relevant components of user attitudes are as yet not well understood. More refined attitude concepts and measures are needed. One such concept, that of a user's channel disposition, is advanced as part of a suggested research direction.     

Does attention from headquarters influence subsidiary behavior? A social psychological perspective

Prior research has not explored fully the effect of headquarters (HQ) attention on subsidiary behavior. We address the gap via a social psychological lens, proposing that subsidiaries with more HQ attention often deal with higher performance expectation in terms of contributing towards the MNC, and thus, they tend to have a greater participation in the activities that can demonstrate such contribution. We test the idea in the context of MNC knowledge flows, hypothesizing a positive correlation between HQ attention and a subsidiary's reverse knowledge, and further the moderation effects of a subsidiary's shared vision and local market performance. Results lend support for the model. The study introduces a novel perspective of how HQ attention may influence subsidiaries, as well as the importance of attention allocation for the multinational corporation (MNC).     

Paradox versus dilemma mindset: A theory of how women leaders navigate the tensions between agency and communion

A wealth of literature documents that women leaders can face simultaneous and yet conflictual demands for both agency and communion, due to the incongruence of their leader role and gender role demands. However, we still know little about why some women cope with the tensions between agency and communion better than others and what implications are involved. Using a paradox perspective, we develop a theoretical model to explain how women leaders experience and respond to agency-communion tensions, which impacts their intrapersonal and interpersonal outcomes. Specifically, we propose that in response to experiencing tensions fueled by the dual demands for agency and communion, women leaders can adopt a paradox mindset that simultaneously embraces agency and communion, or a dilemma mindset that dichotomizes agency and communion. The paradox mindset helps women leaders build psychological resilience, identity coexistence, and leadership effectiveness, whereas those who adopt a dilemma mindset experience depleted resilience, identity separation, and lowered leadership effectiveness. Further, our model highlights individual, interpersonal, and organizational conditions that shape women's experience and stimulate a paradox mindset versus a dilemma mindset. We conclude by discussing theoretical and practical implications of our model.