How Long Should a Customer Wait for Service?

A major concern for service managers is the determination of how long a customer should wait to be served. Services, due to the customer's direct interaction with the process, must face a trade-off between minimizing the cost of having a customer wait and the cost of providing good service. A total cost model is presented for determining how long a customer should wait when these two conflicting cost components are considered. An integral part of this model includes a measure of customer satisfaction with waiting time which is used to develop a waiting cost function. The model is then applied to a major fast food chain, using data collected at several locations. Analysis of the data reveals that the “ideal” waiting time for this firm is significantly less than the current corporate waiting time policy. Thus, as indicated by the model, a corporate policy change is recommended to provide much faster service. The adoption of such a policy would result in increased labor costs, and would simultaneously increase the firm's overall profits. Although appearing contradictory, increases in current labor costs and long-term profits are both possible when management takes the long-range perspective suggested in this paper.     

Am I a leader or a friend? How leaders deal with pre-existing friendships

We studied employees who were promoted into a leadership role from within their workgroup and explored how they dealt, psychologically, with being both a leader and a friend of their subordinates. In an inductive, qualitative study of 33 individuals from across three organizations (two mining companies and one childcare organization) we found that these people experienced psychological conflict that resulted in them feeling vulnerable to being exploited or being afraid to use their power over subordinate-friends. We identified five strategies that were used, namely abdicating responsibility, ending the friendship, establishing the divide, overlapping the roles, and using friendship to lead. We developed a model whereby the type of psychological conflict and the person's leader identity (either “the boss”, just a role, or a weak or non-existent leader identity) leads to the choice of resolution strategy. This exploration into understanding pre-existing friendships demonstrates the ongoing need to consider those in a leadership role as “people” and not just “leaders”.     

Firm Size or Firm Age? The Effect on Wages Using Matched Employer–Employee Data

Abstract. This paper uses matched employer–employee data set for Sweden to study the relationship between firm age and wages, systematically addressing a variety of possible explanations for observing a firm age–wage effect. Results show considerable heterogeneity across years, along segments of the firm age distribution and across industries. For 1995, a positive relationship is found between firm age and wages. This relationship is robust to inclusion of variables that might affect results. Taking into account that larger firms are also older firms, results show that inclusion of firm age does not alter the positive effect of firm size on wages.     

Embedded leadership: How do a leader's superiors impact middle-management performance?

This study uses a low-fidelity simulation to test the effect superiors can have on the leadership style and cognition of their subordinates who also are leaders. These leaders within the organization, often referred to as middle managers, occupy an important, albeit overlooked position within an organization. In order to emphasize the leadership that occurs at the middle levels of management the term ‘embedded leader’ is used. Using a sample of 224 undergraduates, three variables were manipulated to examine their effects on participant sensemaking, confidence, and participative leadership. The variables manipulated were the severity of individual level consequences (high vs. low), the severity of organizational consequences (high vs. low), and the superior's motivational strategy (coercive vs. supportive vs. passive style). It was found that a leader's superior can influence their leadership behaviors in a complex manner. Participant sensemaking was higher when their superior emphasized low levels of individual (or personal) consequences. Participative leadership was higher when the supervisor framed organizational level consequences as being high. Findings for participant confidence were complex, but generally suggest that one's superiors can promote or hinder confidence in a variety of situations.     

How can value co-creation be integrated into a customer experience evaluation?

With the arrival of the service economy, businesses across different sectors have to rely increasingly on service design, with its focus on the viewpoints of customers and their experiences. Existing frameworks for evaluating customer experience tend to neglect the connection between customer experience and value co-creation, which is critical for enhancing the performance of service design. The aim of this conceptual paper is, therefore, to develop a customer experience evaluation framework that is coherently integrated with the value co-creation construct. It is achieved by intersecting the most relevant insights from prior approaches to evaluating customer experiences with a theoretical interpretation of service value as value in the experience that is always co-created and uniquely determined by the customer's personal lived and imagined experiences. The proposed framework is original in its theorizing of the evaluation process as a transformation from a customer experience evaluation to a synchronized evaluation of value in the experience and value co-creation throughout and beyond the service process. The framework proposes to utilize it in both major service redesign and on-the-spot service improvements, which are extremely relevant to businesses operating in highly competitive environments. The proposed framework is designed to guide future empirical evaluations, accommodate new theoretical extensions, and inform practical applications to design service offerings as unique and preferred experiences for customers.     

How Should Autonomous Cars Drive? A Preference for Defaults in Moral Judgments Under Risk and Uncertainty

Autonomous vehicles (AVs) promise to make traffic safer, but their societal integration poses ethical challenges. What behavior of AVs is morally acceptable in critical traffic situations when consequences are only probabilistically known (a situation of risk) or even unknown (a situation of uncertainty)?  How do people retrospectively evaluate the behavior of an AV in situations in which a road user has been harmed? We addressed these questions in two empirical studies (N = 1,638) that approximated the real‐world conditions under which AVs operate by varying the degree of risk and uncertainty of the situation. In Experiment 1, subjects learned that an AV had to decide between staying in the lane or swerving. Each action could lead to a collision with another road user, with some known or unknown likelihood. Subjects’ decision preferences and moral judgments varied considerably with specified probabilities under risk, yet less so under uncertainty. The results suggest that staying in the lane and performing an emergency stop is considered a reasonable default, even when this action does not minimize expected loss. Experiment 2 demonstrated that if an AV collided with another road user, subjects’ retrospective evaluations of the default action were also more robust against unwanted outcome and hindsight effects than the alternative swerve maneuver. The findings highlight the importance of investigating moral judgments under risk and uncertainty in order to develop policies that are societally acceptable even under critical conditions.     

Should I Stay or Should I Go Now? Or Should I Wait and See? Influences on Wildfire Evacuation Decisions

As climate change has contributed to longer fire seasons and populations living in fire‐prone ecosystems increase, wildfires have begun to affect a growing number of people. As a result, interest in understanding the wildfire evacuation decision process has increased. Of particular interest is understanding why some people leave early, some choose to stay and defend their homes, and others wait to assess conditions before making a final decision. Individuals who tend to wait and see are of particular concern given the dangers of late evacuation. To understand what factors might influence different decisions, we surveyed homeowners in three areas in the United States that recently experienced a wildfire. The Protective Action Decision Model was used to identify a suite of factors previously identified as potentially relevant to evacuation decisions. Our results indicate that different beliefs about the efficacy of a particular response or action (evacuating or staying to defend), differences in risk attitudes, and emphasis on different cues to act (e.g., official warnings, environmental cues) are key factors underlying different responses. Further, latent class analysis indicates there are two general classes of individuals: those inclined to evacuate and those inclined to stay, and that a substantial portion of each class falls into the wait and see category.     

Birds of a feather?: Firm sales growth and narcissism in the upper echelons at the CEO-TMT interface

Blending conceptual framing from the CEO-TMT interface literature with upper echelons decision-making theory, we develop a model of the role of CEO narcissism and narcissism in the upper echelons. We argue that narcissistic CEOs tend to have higher narcissism in their Top Management Teams (N-TMTs). In turn, TMTs characterized by narcissism can benefit from positive aspects of narcissism while avoiding its pitfalls; especially when strategic decision speed is slower and behavioral integration is higher. In a field study of 104 TMTs from publicly-listed South Korean firms, we find an association between narcissistic CEOs and N-TMT, and that N-TMT mediates in the indirect, conditional relationship between CEO narcissism and sales growth. We also invoke threshold theory in anticipation that outcomes associated with N-TMT may be nonlinear. In support of our threshold hypothesis, we find a curvilinear relationship between N-TMT and sales growth; and this curvilinear relationship is stronger for a small number of TMTs scoring high on N-TMT (> +2SD), where TMTs’ activities are defined by deliberative integration. The pattern of results we report provides evidence for the importance of accounting for narcissism in the upper echelons as a predictor of sales growth, and key contextual moderators of this relationship.     

Non-Standard Employment in Irish Manufacturing: Do Firm Characteristics Matter?

Non-standard or atypical employment in Irish manufacturing more than doubled between 1987 and 1995. This paper attempts to analyse empirically the nature of non-standard employment in Ireland using plant-level data for 1995. We focus on firm characteristics as explanatory factors. Our econometric results indicate that there are significant differences in the use of atypical employment between small and large firms, and between indigenous and foreign-owned firms.     

Does Outsourcing Really Improve Firm Performance? Empirical Evidence and Research Agenda

The phenomenon of outsourcing has spawned a rich body of scholarly work in the last two decades. Yet, the answer to one important question has remained elusive: Does outsourcing really improve firm performance? Addressing this question is important as firms across nations continue to embark on the practice of outsourcing to save operating costs and remain competitive. Scholars, practitioners and policy‐makers need to understand whether and how outsourcing benefits the firm. However, no comprehensive review of empirical evidence has been published so far that can address this question. This study reviews 57 empirical research articles that investigated the outsourcing–firm performance relationship in 47 peer‐reviewed scholarly journals over a 20‐year time‐span (1996–2015). The articles differ widely in research scope, context, level of analysis, data source, time‐span, industry sector, extent of outsourcing and measure of performance. The findings suggest that outsourcing can produce positive, negative, mixed, moderated or no significant impact on the firm. This study also provides useful directions for future research on outsourcing and firm performance.     

How to Model a Negligible Probability Under the WTO Sanitary and Phytosanitary Agreement?

Since the 1997 EC – Hormones decision, World Trade Organization (WTO) Dispute Settlement Panels have wrestled with the question of what constitutes a negligible risk under the Sanitary and Phytosanitary Agreement. More recently, the 2010 WTO Australia – Apples Panel focused considerable attention on the appropriate quantitative model for a negligible probability in a risk assessment. The 2006 Australian Import Risk Analysis for Apples from New Zealand translated narrative probability statements into quantitative ranges. The uncertainty about a “negligible” probability was characterized as a uniform distribution with a minimum value of zero and a maximum value of 10^?6. The Australia – Apples Panel found that the use of this distribution would tend to overestimate the likelihood of “negligible” events and indicated that a triangular distribution with a most probable value of zero and a maximum value of 10^?6 would correct the bias. The Panel observed that the midpoint of the uniform distribution is 5 × 10^?7 but did not consider that the triangular distribution has an expected value of 3.3 × 10^?7. Therefore, if this triangular distribution is the appropriate correction, the magnitude of the bias found by the Panel appears modest. The Panel's detailed critique of the Australian risk assessment, and the conclusions of the WTO Appellate Body about the materiality of flaws found by the Panel, may have important implications for the standard of review for risk assessments under the WTO SPS Agreement.     

Should Organizational Behavior Management Expand Its Content?

Abstract

The American Psychological Association (APA) has defined the years 2000 to 2010 as the “Decade of Behavior,” and has been promoting this designation in convention materials, newsletters, media briefs, and professional publications. But APA seems to be avoiding the leading discipline in analyzing and changing behaviors in industrial settings-organizational behavior management (OBM). Furthermore, with only a few exceptions, OBM does not receive the attention it deserves in university psychology departments, including graduate programs in industrial/organizational (I/O) Psychology. This paper entertains reasons for the low and decreasing academic attention to OBM, and offers some possible solutions. It is proposed that OBM is generally discussed in overly simplistic terms; and unlike I/O Psychology, OBM does not draw on the wealth of relevant concepts and principles in other areas, especially cognitive and social psychology. Specific examples are given for expanding the typical boundaries of the OBM curriculum in order to improve organization-based interventions and realize greater opportunities to demonstrate the unique qualities of a behavior analysis approach to real-world problem solving.     

Should I stay or should I go?

In 2002, the German system of higher education went through a set of reforms that were—amongothers—intended to make the university career more attractive for young academics, in order not to lose them to alternative careers. Until today, however, there is no theoretical or empirical analysis on the determinants of young academics’ career decisions. In our paper, we analyse the decisions of young academics to leave the university career system on the basis of a self-selection model. Using an original data set on junior scientists in Germany, Austria and Switzerland, we render first empirical evidence on the determinants of young academics’ careers decisions, and find that these are influenced by monetary as well as non-monetary factors.     

Is there a liability of localness? How emerging market firms respond to regulatory punctuations

In the 1990s, emerging economies all over the world deregulated, privatized and liberalized their domestic markets. These regulatory punctuations caused radical institutional changes for emerging market firms (EMFs). We argue that, for EMFs, regulatory punctuations created a liability of localness, parallel to the liability of foreignness that firms face when they go abroad. Whereas liability of foreignness comes from the differences caused by changing one's geographic place from ‘here’ to ‘there’; liability of localness comes from changing one's point in time from ‘then’ (pre-exogenous regulatory shock) to ‘now’ (post-exogenous regulatory shock). In both cases, firms incur additional costs, and the ones that survive are ones that best develop strategies for coping with “being in a strange land”. We apply our arguments to the Mexican banking industry, which was privatized and liberalized in the 1990s.     

How Independent,Competent and Incentivized Should Non‐executive Directors Be? An Empirical Investigation of Good Governance Codes

There is a commonly held conviction among governance scholars and practitioners that increasing the number of non‐executive directors may have beneficial effects on board practices. This view has gained momentum after each wave of scandals. Given the relevance of the issue in governance studies and practices, the aim of this paper is to investigate how independent, competent and incentivized non‐executive directors should be according to governance scholars and board best practices. To answer this question, we conducted a review of the literature on non‐executive directors. We then collected corporate governance codes developed worldwide at the end of 2005, and made a comparative analysis of their recommendations about the independence, the competencies and the incentives of non‐executive directors. Our results show that (i) non‐executive directors' independence is a commonly recommended governance practice, the meaning of which differs widely among countries; (ii) non‐executive directors' competencies and incentives are not considered a governance issue to be regulated in detail; (iii) agency theory and the search for appropriate board demography tend to dominate the recommendations of governance literature and codes. Our findings have implications for both research and practice.