Leadership for organizational adaptability: A theoretical synthesis and integrative framework

One of the biggest challenges facing leaders today is the need to position and enable organizations and people for adaptability in the face of increasingly dynamic and demanding environments. Despite this we know surprisingly little about this topic. In this paper we provide a theoretical synthesis and integrative review of research from strategy, organization theory, innovation, networks, and complexity to provide a framework of leadership for organizational adaptability. Our review shows that leadership for organizational adaptability is different from traditional leadership or leading change. It involves enabling the adaptive process by creating space for ideas advanced by entrepreneurial leaders to engage in tension with the operational system and generate innovations that scale into the system to meet the adaptive needs of the organization and its environment. Leadership for organizational adaptability calls for scholars and practitioners to recognize organizational adaptability as an important organizational outcome, and enabling leadership (i.e., enabling the adaptive process through adaptive space) as a critical form of leadership for adaptive organizations.     

“See You in Court”: How CEO narcissism increases firms' vulnerability to lawsuits

Although some researchers have suggested that narcissistic CEOs may have a positive influence on organizational performance (e.g., Maccoby, 2007; Patel & Cooper, 2014), a growing body of evidence suggests that organizations led by narcissistic CEOs experience considerable downsides, including evidence of increased risk taking, overpaying for acquisitions, manipulating accounting data, and even fraud. In the current study we show that narcissistic CEO's subject their organizations to undue legal risk because they are overconfident about their ability to win and less sensitive to the costs to their organizations of such litigation. Using a sample of 32 firms, we find that those led by narcissistic CEOs are more likely to be involved in litigation and that these lawsuits are more protracted. In two follow-up experimental studies, we examine the mechanism underlying the relationship between narcissism and lawsuits and find that narcissists are less sensitive to objective assessments of risk when making decisions about whether to settle a lawsuit and less willing to take advice from experts. We discuss the implications of our research for advancing theories of narcissism and CEO influence on organizational performance.     

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.     

4 The Physical Environment in Organizations

Abstract

We review empirical research on the physical environment in professional, organizational work settings (i.e., offices, meeting rooms, and design work spaces) from the past several decades. This research reveals no common elements of the physical environment (e.g., enclosures and barriers in work spaces, adjustable work arrangements, personalized work spaces, and ambient surroundings) that are consistently and exclusively associated with desired outcomes in these work settings. Instead, these elements are routinely associated with both desired and undesired outcomes. Based on these findings, we suggest that understanding the role of physical environments in organizations requires an understanding of common trade-offs in organizational life. Further, we suggest that the prevalence of such trade-offs is grounded in tensions that are inherent to the functions that physical environments serve (i.e., aesthetic, instrumental, and symbolic functions). We provide an outline of these tensions and trade-offs in relation to common elements of the physical environment, and suggest that researchers consider these tensions and trade-offs in their future research.     

Organizational cynicism: Spillover effects on supervisor–subordinate relationships and performance

Organizational cynicism has grown in contemporary Western organizations. However, its impact on interpersonal relationships and consequently on organizational functioning remains understudied. The present study addresses these gaps by: a) exploring the spillover effect of organizational cynicism on supervisor–subordinate relationships, and b) examining if the spillover effect extends to employee performance. Specifically, it examines if affective commitment to the supervisor mediates the relationship between the PSS × organizational cynicism interaction effect and performance (i.e., mediated-moderation). Data were collected from both employees and supervisors (N = 274) from 45 organizations. Our results generally support our hypotheses. This study provides evidence that organizational cynicism interferes in the relationship employees develop with their supervisors, with consequences to performance. This study opens new avenues for research on organizational cynicism and carries implications for theory and practice.     

Learning from the Piper Alpha Accident: A Postmortem Analysis of Technical and Organizational Factors

The accident that occurred on board the offshore platform Piper Alpha in July 1988 killed 167 people and cost billions of dollars in property damage. It was caused by a massive fire, which was not the result of an unpredictable "act of God" but of an accumulation of errors and questionable decisions. Most of them were rooted in the organization, its structure, procedures, and culture. This paper analyzes the accident scenario using the risk analysis framework, determines which human decision and actions influenced the occurrence of the basic events, and then identifies the organizational roots of these decisions and actions. These organizational factors are generalizable to other industries and engineering systems. They include flaws in the design guidelines and design practices (e.g., tight physical couplings or insufficient redundancies), misguided priorities in the management of the tradeoff between productivity and safety, mistakes in the management of the personnel on board, and errors of judgment in the process by which financial pressures are applied on the production sector (i.e., the oil companies' definition of profit centers) resulting in deficiencies in inspection and maintenance operations. This analytical approach allows identification of risk management measures that go beyond the purely technical (e.g., add redundancies to a safety system) and also include improvements of management practices.     

"Conflict management" and "conflict resolution" are not synonymous terms

Robbins sees functional conflict as an absolute necessity within organizations and explicitly encourages it. He explains: "Survival can result only when an organization is able to adapt to constant changes in the environment. Adaption is possible only through change, and change is stimulated by conflict." Robbins cites evidence indicating that conflict can be related to increased productivity and that critical thinking encourages well-developed decisions. He admits, however, that not all conflicts are good for the organization. Their functional or dysfunctional nature is determined by the impact of the conflict on the objectives of the organization. The author identifies several factors underlying the need for conflict stimulation: (1) managers who are surrounded by "yes men"; (2) subordinates who are afraid to admit ignorance or uncertainty; (3) decision-makers' excessive concern about hurting the feelings of others; or (4) an environment where new ideas are slow in coming forth. He suggests techniques for stimulating conflict; manipulating the communication channels (i.e., repression of information); changing the organizational structure (i.e., changes in size or position); and altering personal behavior factors (i.e., role incongruence). Robbins stresses that the actual method to be used in either resolving or stimulating conflict must be appropriate to the situation.     

The Effects of Knowledge Management on Team Members' Ratings of Project Success and Impact*

Many organizations are trying to improve the generation and utilization of knowledge. The activities associated with these efforts are identified as organizational knowledge management (KM). While much has been written about knowledge management from the organizational level, the success of such efforts over the long run will depend upon on how KM activities impact important outcomes as perceived by those at the employee level who actually implement the activities. This study used the input‐process‐output framework of team effectiveness to investigate the relationship between selected KM‐related activities on integrated product and process development team members' satisfaction with their project's success and the impact they expected it to have on the organization. The results indicate that team‐level leadership and support (i.e., inputs), along with knowledge generation and dissemination (i.e., processes), are key drivers of member performance‐related ratings (i.e., outputs). Finally, and possibly most importantly, a number of interactions were evident suggesting that the KM processes moderate the effects of the KM inputs. These findings and their implications are discussed.     

On the etiology of conflict cultures

Conflict has long been conceived as a fundamental part of all organizational systems. Yet the literature on conflict is largely divorced from its organizational roots and instead focuses on general processes of conflict management at the individual and small group levels of analysis. To re-establish the organizational basis of conflict, we develop a macro-theory of conflict cultures, or shared norms that specify how conflict should be managed in organizational settings. We propose a typology of conflict cultures that draws upon two dimensions – active versus passive conflict management norms and agreeable versus disagreeable conflict management norms – and discuss the etiology of four distinct conflict cultures: dominating conflict cultures (active and disagreeable), collaborative conflict cultures (active and agreeable), avoidant conflict cultures (passive and agreeable), and passive–aggressive conflict cultures (passive and disagreeable). We discuss top-down processes (e.g., leadership, organizational structure and rewards, industry, community, and societal factors) and bottom-up processes (e.g., personality, demographics, values and social networks) through which these conflict cultures develop. We explore both positive and negative organizational outcomes associated with each conflict culture, as well as moderators of proposed effects. We conclude with theoretical, practical, and empirical implications of a conflict culture perspective.     

Empirically Testing the Relationship Between End-User Computing Problems and Information Center Success Factors

End-user computing (EUC) has been a significant organizational phenomenon for more than two decades and remains critically important with the rapid introduction of new technologies (e.g., client-server architectures, internet and intranet applications). Although EUC is a mature concept, it is apparent that end users do not become independent over time, but instead require additional resources and support. One widely employed support mechanism is the Information Center (IC). This study surveyed the internal auditor and the information systems (IS) director in each of 185 organizations. The internal auditors provided responses on the severity of EUC problems in their organizations, and the IS directors supplied information on their firms' performance on the IC critical success factors (CSFs) proposed by Magal, Carr, and Watson (1988). Results show that stronger IC performance is indeed inversely related to the severity of EUC problems encountered by the organization. Specifically, the study's findings show that to have the greatest impact on EUC problems, IC managers should concentrate on clearly defining the IC's mission; establish standards and controls; monitor, coordinate, and help users prioritize applications development; and be responsive to user requests.     

High Performance Work Systems and Organizational Performance: An Empirical Study on Manufacturing and Service Organizations in Pakistan

A two level analysis was conducted to examine the impact of High Performance Work Systems (HPWS) on organizational performance by investigating four most prevailing theories in HPWS literature i.e., human capital (Resource based view), social exchange, relational coordination, employee attitudes and behaviours. It was proposed that HPWS predicts improved organizational performance and this relationship can be strengthened through intervention of human capital development, degree of social exchange among organizations and its members and productive relationships among employees. It was further argued that HPWS results into employee motivation, job satisfaction and organizational citizenship behaviours, which ultimately results into better organizational performance. Results from 17 manufacturing and service organizations confirmed the significance of association of implemented and perceived HPWS with managerial and employee rated organizational performance. Mediation analysis confirmed the contribution of human capital, social exchange, relational coordination and OCB towards organizational performance but no influence was found for employee attitudes on HPWS-performance linkage.     

Is there potential in assessing for high-potential? Evaluating the relationships between performance ratings,leadership assessment data,designated high-potential status and promotion outcomes in a global organization

While leadership is a critical component of organizational success, organizations need to be more effective at classifying talent based on future potential vs current performance. This need raises the question as to whether the assessment of leadership potential is truly adding value or enhancing the talent review and classification process. Data from 9,784 participants in PepsiCo’s Leadership Assessment and Development (LeAD) program—a multi-trait, multi-method (MTMM) assessment and development process—are used to examine relationships between individual performance, assessed potential, organizationally designated potential, and promotion rates post assessment. Results from the analyses indicate that assessed potential provides unique variance above performance alone in determining process outcomes (i.e., designated potential and promotions), and therefore can be useful for making more informed talent management decisions. The applications of these measures within the current organization as well as limitations of the study and areas for future research are discussed.     

Well-being and organizational performance: An organizational-level test of the happy-productive worker hypothesis

Abstract

It is often assumed that happy workers are also productive workers. Although this reasoning has frequently been supported at the individual level, it is still unclear what these findings imply for organizational performance. Controlling for relevant work characteristics, this study presents a large-scale organizational-level test of the happy-productive worker hypothesis, assuming that high individual well-being leads to high individual-level performance, which should translate into high organizational performance (such as high efficiency and productivity). Job-specific employee well-being was measured as job satisfaction and emotional exhaustion. Using data from 66 Dutch home care organizations, the relationships among aggregated levels of demands, control, support, emotional exhaustion and satisfaction on the one hand, and organizational performance on the other, were examined using regression analysis. The hypotheses were partly confirmed, especially high aggregated levels of emotional exhaustion were related to low organizational performance. Although these findings support the reasoning that happy organizations are indeed productive organizations, more theorizing and more longitudinal research on the associations between individual-level well-being and organizational performance is imperative to improve understanding of these relationships. The findings underline the importance of improving worker well-being: this is not only important for individual workers, but may also have positive consequences for organizations and their clients.     

Integrity's place among the character strengths of middle-level managers and top-level executives

One purpose of this study was to extend integrity research in organizations into the ranks of middle management. We therefore examined whether middle-level managers' behavioral manifestations of integrity related to ratings of their performance. Results of hierarchical regression analysis indicated that direct report ratings of a middle-level manager's integrity were positively related to boss ratings of that manager's performance. A second purpose of this study was to understand differences in integrity's relative importance to performance among other character strengths, and as a function of context (e.g., managerial level). We extend research in this area by showing, through relative weight analysis, that integrity was relatively less important to middle-level managers' current performance compared to other character strengths (e.g., social intelligence). In contrast, integrity was relatively more important for the performance of top-level executives — roles middle-level managers may hold in the future. Implications of these results for future research and practice as well as the current study's limitations are discussed.     

Beyond the purely commercial business model: Organizational value logics and the heterogeneity of sustainability business models

The business model has been conceived as a commercial logic of value proposition, creation, exchange and capture. However, its underlying conceptual structure of an organizational value logic holds promise also for application beyond a purely commercial context, for partially commercial and even noncommercial organizations. This paper unlocks this potential by conceptualizing homogeneous and heterogeneous organizational value logics shaped by a variety of institutional logics. Homogeneous value logics are dominantly shaped by individual institutional logics, such as the value logic of businesses shaped by an institutional logic of the commercial market, or that of a churches shaped by an institutional logic of religion. Heterogeneous value logics, however, are co-shaped by two or more institutional logics. The application of these concepts is exemplified in the context of sustainability business models, which are built on a heterogeneous value logic that combines elements from commercial, sustainability, welfare and government logics. The paper contributes to the business model discussion by extending it to partially commercial and noncommercial organizations; by creating a conceptual space between value logics and institutional logics; and by proposing the meta-logic of value proposition, creation, exchange and capture, a novel analytical tool for the study of organizations shaped by plural institutional logics.     

Leadership in complex organizations

This paper asks how complexity theory informs the role of leadership in organizations. Complexity theory is a science of complexly interacting systems; it explores the nature of interaction and adaptation in such systems and how they influence such things as emergence, innovation, and fitness. We argue that complexity theory focuses leadership efforts on behaviors that enable organizational effectiveness, as opposed to determining or guiding effectiveness. Complexity science broadens conceptualizations of leadership from perspectives that are heavily invested in psychology and social psychology (e.g., human relations models) to include processes for managing dynamic systems and interconnectivity. We develop a definition of organizational complexity and apply it to leadership science, discuss strategies for enabling complexity and effectiveness, and delve into the relationship between complexity theory and other currently important leadership theories. The paper concludes with a discussion of possible implications for research strategies in the social sciences.     

COMPUTER-BASED SUPPORT OF ORGANIZATIONAL DECISION MAKING*

The central issue of this research is the extent to which computer facilities can be used to support organizational decision-making processes beyond mere performance of information retrieval. This depends upon the extent to which computers can be made to emulate human perceptual and judgmental processes. We present a framework for understanding these cognitive processes and examine how it applies to organizational decisions. Moreover, the framework furnishes a basis for the design of a generalized, intelligent problem processor. This processor is general in the sense of its ability to support a decision maker's activities, regardless of the decision maker's application area (e.g., urban planning, water-quality planning, etc.). It is intelligent in the sense of its ability to comprehend English-like queries and subsequently formulate models, interface appropriate data with those models, and execute the models to produce some facts or expectations about the problem under consideration.     

Motivating Operations in the Journal of Organizational Behavior Management: Review and Discussion of Relevant Articles

Every article published in the Journal of Organizational Behavior Management from 1982 through 2012 that contained the term motivating operation (or a related term) was examined. Seventy-six articles used a relevant term. Authors used the term in attempts to categorize and explain the behavioral effects of many aspects of interventions (e.g., rules, feedback, goal-setting), everyday occurrences in organizations (e.g., nicotine deprivation, top management support), and characteristics of behaving individuals (e.g., optimism, personality state), which on the one hand suggests that the motivating operation concept has been of value in organizational behavior management research as published in the journal. On the other hand, none of the articles demonstrated the successful use of a motivating operation as the term was initially defined, which suggests that the MO concept has been substantially expanded or widely misused by authors of the evaluated articles.     

13 When Group Identities Matter

Abstract

Performance appraisals are a critical part of organizational life, and bias in appraisals is consistently mentioned as a barrier to advancement for diverse workers. This chapter reviews the literature on rater bias in performance appraisals, defined as effects on performance ratings due to ratee category membership. We focus on the major theoretical frameworks (e.g., stereotype fit and relational demography) used in the study of bias, organizing the research findings by the four most commonly studied demographic categories: gender, race, age, and disability. The review allows better understanding of the gaps in our knowledge and identifies needed future research directions in this literature stream. We conclude the chapter with several concerns including a lack of empirical research testing propositions concerning the effect of organizational variables on bias.