Survivors and Victims,a Meta‐analytical Review of Fairness and Organizational Commitment after Downsizing

There is a lack of consistent evidence that downsizing leads to improved financial performance. Lowered commitment after painful downsizing periods is identified as an important reason why downsizing does not show the intended long‐term effects. This paper provides a meta‐analytical overview of the impact of fairness on organizational commitment for survivors and victims after a downsizing operation. Among 37 samples (11,256 persons), a positive relationship was found between fairness and affective organizational commitment (ρ=0.40) for both survivors and victims. Three moderators of the fairness–commitment relationship were identified: (1) for survivors, procedural justice matters more than distributive justice; (2) the impact of fairness is stronger in countries with an individualistic (versus collectivistic) culture; (3) fairness matters more when mass layoff is initiated for profit maximization (versus economic necessity).     

Why middle managers quit

The current trends in organizational downsizing may be causing the involuntary loss of high-performing, middle-level managers. This article reports on the perceived causes of turnover and how managers at differing levels of the organization have dramatically differing perceptions. Lower- and middle-level managers place greatest importance on lack of control and input on the job, while upper-lever managers see dissatisfaction with rewards and interpersonal conflicts as the critical causes of middle manager turnover.     

The Problem Is Fraud: Is the Solution Government Bounties?

Whistle‐blowing is the disclosure of organizational wrongdoing by internal or external parties either within the organization or publicly to outsiders who may be able to effect a positive change in action or activities. Organizations have been encouraged, especially since the passage in 2002 of the Sarbanes–Oxley Act, to establish a culture in which whistle‐blowing is seen as a positive mechanism to correct misconduct rather than a negative attack. This article addresses (1) whistle‐blowing in relationship fraud and (2) governmental “bounties” paid to persons who are willing to provide knowledge of organizational transgressions. The fraud could occur through a variety of mechanisms but, regardless of the fraud's cause, the long‐run result will be harmful to the organization, its employees, its customers, and the society in which the organization operates. The question is whether bounties are the most effective means by which to reduce the harm created by fraud.     

Towards a Theory of Network Facilitation: A Microfoundations Perspective on the Antecedents,Practices and Outcomes of Network Facilitation

Firms cooperate in inter‐firm networks to foster their competitiveness and improve their innovation outcomes. In many cases, network facilitators who are either embedded in a lead firm or a third‐party organization manage the cooperation among the network firms. This qualitative study adopts a microfoundations perspective to investigate the behavioural antecedents of the network facilitators, their facilitation practices and the related network‐level outcomes. Results show that lead‐firm facilitators more strongly invest in trust‐building measures since they are considered deficient in benevolence and integrity. Without these investments, they run the risk that conflicts of interest hinder the stimulation of positive network‐level outcomes. Third‐party facilitators, by contrast, enjoy certain credits of trust and focus on balancing firm interests from the network's activation, but need to invest in enhancing their competencies and skills with regard to the industry the firms operate in. The findings contribute to developing a theory of network facilitation by providing a nuanced understanding of how network‐level outcomes can be reduced to individual‐level factors.     

DOWNSIZING AND JOB INSECURITY

This article offers an explanation of why firms' downsizing patterns may vary substantially in magnitude and timing, taking the form of one‐time massive cuts, waves of layoffs, or zero layoff policies. The key element of this theory is that workers' expectations about their job security affect their on‐the‐job performance. In a situation where firms face adverse shocks, the productivity effect of job insecurity forces firms to balance laying off redundant workers and maintaining survivors' commitment. The cost of ensuring commitment differs between firms with different characteristics and determines whether workers are laid off all at once or in stages. However, if firms have private information about their future profits, they may not lay off any workers in order to signal a bright future, boosting worker's confidence. (JEL: J21, J23, D21, D82)     

企业裁员优化模型的建立及遗传算法的运用

通过调研建立一个比较全面的裁员标准体系,用来计算企业中每个员工对企业的贡献价值,再把这个过程抽象为一个带约束条件的最优化的数学模型,用遗传算法对其求解,进而确定裁减的人员。这样就解决了企业在裁减人员过程中主观地决定裁减人数的问题。该模型能够给管理者提供一个使企业整体利益最大化的精确裁减人数以及被裁的人员清单,提高了决策的科学性,也为管理人员使用计算机提高决策的正确性和高效性提供了参考。     

Subjective Perceptions of Organizational Change and Employee Resistance to Change: Direct and Mediated Relationships with Employee Well‐being

Researchers have focused on linking objective measures of change exposure, such as the number of downsizing activities implemented, with employee well‐being. This has meant that less attention has been paid to employees’ subjective experience of change. The authors examine relationships between employees’ perceptions of the extent of change and the frequency of change and insomnia and psychological well‐being. They propose direct and indirect relationships via resistance to change between employees’ subjective experience of change and well‐being. Data were collected from 260 employees from a range of different organizations and industries. Respondents completed surveys at two time points, separated by four months. Results revealed significant indirect relationships between subjective perceptions of change and insomnia and employee well‐being via affective resistance to change at Time 1 and Time 2. In addition, employees’ subjective reports that change was very frequent were initially positively associated with T1 behavioral resistance to change but also were negatively associated with T2 behavioral resistance to change. Discussion focuses on the importance of managing employees’ perceptions of change. Practically, the authors consider the difficult choices that confront managers when seeking to implement and ‘sell’ change within their organization.     

The Voluntary Redundancy Option: Carrot or Stick?

Voluntary redundancy is a relatively new form of retrenchment that has become a popular means of reducing workforce numbers in downsizing organizations. Voluntary redundancy involves the offer of a financial incentive to encourage employees to 'volunteer' for redundancy. Using the findings of a small study of individuals who had taken voluntary redundancy, this paper explores the voluntary nature of voluntary redundancy and suggests that both organizational change and the financial incentive are contributors to the redundancy decision. From an organizational perspective voluntary redundancy does appear to smooth the downsizing process but at the same time tends to mask underlying issues of morale and commitment.     

TRANSFERABLE CONTROL

In this paper, we introduce the notion of transferable control, defined as a situation where one party (the principal, say) can transfer control to another party (the agent) but cannot commit herself to do so. One theoretical foundation for this notion builds on the distinction between formal and real authority introduced by Aghion and Tirole, in which the actual exercise of authority may require noncontractible information, absent which formal control rights are vacuous. We use this notion to study the extent to which control transfers may allow an agent to reveal information regarding his ability or willingness to cooperate with the principal in the future. We show that the distinction between contractible and transferable control can drastically influence how learning takes place: with contractible control, information about the agent can often be acquired through revelation mechanisms that involve communication and message‐contingent control allocations; in contrast, when control is transferable but not contractible, it can be optimal to transfer control unconditionally and learn instead from the way in which the agent exercises control. (JEL: C70, C72, D23, L2)     

The New CEO and the Post‐succession Process: An Integration of Past Research and Future Directions

The early tenure of a new Chief Executive Officer (CEO), also referred to as ‘the CEO post‐succession process’, is a critical phase in the history of an organization, because it is associated with a high rate of organizational failure and CEO dismissal. Research on this important process has grown rapidly over the last decade, focusing particularly on the question of how the match between the CEO, the organization and the environment is created in the post‐succession process. Yet, the respective literature is highly fragmented, which suggests that there is a need for a systematic review and evaluation of existing works. Adopting the conceptual vocabulary of the practice perspective, the authors review this literature in terms of what it reveals about (1) the practices adopted by new CEOs and other actors involved in the post‐succession process, (2) the properties of the key practitioners involved, and (3) the practical context of the post‐succession process. This review suggests that new CEOs are primarily involved in practices aimed at integrating the new CEO into the organization, and practices aimed at realigning the organization with its environment. The important insights that the existing literature affords are identified, and the gaps in this body of research are highlighted. On this basis, a concrete research agenda is developed in terms of topics, methodologies and theories.     

基于前景理论与多Agent模拟的KIBS员工合作与冲突行为研究

随着知识经济时代的到来,知识密集型服务业(KIBS)已经成为西方主要发达国家和地区产业结构调整关注的重点方向和近年来学术界的研究热点之一。文章研究了KIBS员工合作与冲突行为产生机理与演化规律,首先结合了人格心理学、前景理论和博弈论的相关理论,设计了KIBS员工合作与冲突行为决策模型。之后在仿真软件Anylogic 6.5.0上建立了相应的多Agent模拟模型,并针对收益参数和群体沟通这两种影响因素设计了模拟实验。最后对模拟结果进行了分析,发现收益参数中除了惩罚系数,控制因子对最终行为比例也产生影响,而沟通概率则对演化过程行为变化的幅度产生影响。     

From Blaming the Middle to Harnessing its Potential: Creating Change Intermediaries

Middle managers have been under attack as organizational downsizing and reengineering have reduced their number. They are also frequently portrayed as obstructive and resistant to change. However, recent research suggests that managers at middle levels in organizations may be able to make a strategic contribution. Data from research on how managers in an organization undergoing transformation experience change are used to build on this existing research to demonstrate that middle managers fulfil a complex 'change intermediary' position during implementation. The findings reveal that a key aspect of this position is the need for middle managers to engage in a range of activities to aid their interpretation of the change intent. This interpretation activity then informs the personal changes they attempt to undertake, how they help others through change, how they keep the business going during the transition and what changes they implement in their departments. The interpretation aspect of their role is often overlooked, leading to workload issues and role conflict. These findings offer an alternative perspective on perceived middle manager resistance and lead into suggestions for future research and organizational implications.     

Health care downsizing: a survival guide

One would be hard pressed today to find a profession that has not experienced the effects of downsizing. Health care management is no exception. Although physicians were once regarded as relatively safe from layoffs, it is now estimated that "at least" 10 percent of physician executives will fall victim to health care downsizing in 1995. Furthermore, with a 14.3 percent turnover rate of hospital CEO positions in 1994, reversing a two-year drop, health care downsizing appears to be on the upswing. This article analyzes downsizing in the health care industry and gives some advice on how physician executives can deal with it successfully.     

The Impact of Downsizing on Corporate Reputation

This study investigates the impact that downsizing has on corporate reputation. Drawing on the relevant literatures, two hypotheses are developed and tested. The findings of the study are as follows. First, downsizing has a negative impact on corporate reputation. Second downsizing is more damaging to corporate reputation than 'downscoping'–the sale of a division.     

Getting New Staff to Stay: The Mediating Role of Organizational Identification

Newcomer turnover is a major cost to organizations, and the quality of new employees' experiences in the first few months is critical in determining whether they decide to stay or leave. In a study that focused on the first stage of newcomer socialization, we investigate the impact of perceptions of social validation from the team and the team leader, and perceived fairness of treatment on newcomers' identification with their work team and the organization, specifically measuring the group self‐investment components of identification. The mediating role of these levels of group self‐investment and of the imbalance (i.e. difference) between levels of self‐investment on turnover intentions was also tested. New staff (N=569) joining a large public‐sector organization completed a questionnaire about their socialization experiences in their first 6 months of their employment. Structural equation modelling revealed that social validation by the team and team leaders, and fairness of treatment, predict increased investment with the organization and with the team. Organizational‐level self‐investment and an imbalance in favour of investment with the organization over that of the team mediated decreases in turnover intentions. We conclude that organizations should provide newcomers with validation that promotes identification with their organization during this critical stage of socialization.     

Cyber Risk Management for Critical Infrastructure: A Risk Analysis Model and Three Case Studies

Managing cyber security in an organization involves allocating the protection budget across a spectrum of possible options. This requires assessing the benefits and the costs of these options. The risk analyses presented here are statistical when relevant data are available, and system‐based for high‐consequence events that have not happened yet. This article presents, first, a general probabilistic risk analysis framework for cyber security in an organization to be specified. It then describes three examples of forward‐looking analyses motivated by recent cyber attacks. The first one is the statistical analysis of an actual database, extended at the upper end of the loss distribution by a Bayesian analysis of possible, high‐consequence attack scenarios that may happen in the future. The second is a systems analysis of cyber risks for a smart, connected electric grid, showing that there is an optimal level of connectivity. The third is an analysis of sequential decisions to upgrade the software of an existing cyber security system or to adopt a new one to stay ahead of adversaries trying to find their way in. The results are distributions of losses to cyber attacks, with and without some considered countermeasures in support of risk management decisions based both on past data and anticipated incidents.     

‘Bureaucracy‐lite’ and Continuities in Managerial Work

This paper questions three frequently asserted, interrelated claims about developments in management: that centralized, regulated bureaucratic organizations characterized by hierarchy and rules are inevitably giving way to decentralized and empowered post‐bureaucratic organizations characterized by internal networks and an internal market; that, as a consequence, the traditional managerial role of command and control is being superseded by one of facilitation and coordination; and that, in turn, managerial work as routine administration of work processes is being supplanted by the ‘new managerial work’ of non‐routine leadership and entrepreneurship. It is argued that these claims often rest on caricatures of bureaucracy and network organization and are neither new nor well supported by evidence. Against these claims, the paper adduces case‐study evidence which shows that, despite claims about ‘decentralization’ and ‘empowerment’, organizational change may entail not a radical shift to network organization, but more limited change to a different form of bureaucracy in which hierarchy and rules have been retained but in an attenuated and sharper form –‘bureaucracy‐lite’. Consequently, managerial roles continue to be defined in terms of individual responsibility and vertical accountability for an organizational sub‐unit, and managerial work continues to be preoccupied with monitoring and maintaining work processes, routine direction and control of staff and processing information in order to deal with the ambiguities inherent in the dimensions of managerial ‘responsibility’.     

Need to choose between cutting people and pay? A work sector may matter if maintaining work attitudes is your concern

Despite the increase in the cases of reducing payroll costs (i.e., the costs of wages and salaries), studies that directly compare the effects of related methods (cutting pay vs. downsizing) on work attitudes are extremely limited. Moreover, there has been no effort to answer the question of “who” is more or less affected by one method over the other. This study directly compares the effects of cutting pay vs. downsizing on work attitudes (i.e., affective commitment and job satisfaction) of remaining employees (i.e., employees whose pay is cut vs. survivors of downsizing). The study also examines the moderating effect of the work sector (private vs. public sectors) in this comparison. To do this, 4,359 Irish workers who participated in the 2009 National Workplace Survey (NWS) were analyzed. The analysis reveals no overall difference in the effects of the two methods in maintaining the work attitudes of remaining employees. However, this comparison is moderated by sector. In the private sector, downsizing better maintained the work attitudes of remaining employees than cutting pay. In the public sector, in contrast, there was no significant difference in these effects between the two methods. The results challenge the earlier belief that pay cuts cannot be a feasible alternative to downsizing due to their detrimental effect on employee motivation. The study outcomes indicate that this concern is applicable only in the private sector. Thus, the findings suggest that organizations in the public sector can utilize the pay cut option (rather than downsizing) to gain social approval, which can also be an essential resource that allows firms to better compete in the market.     

Strategic planning as an organizational change process—Some guidelines from practice

Learning to cope with the problems and uncertainties created by today's changing business environment is a task which faces ever company. Coping with the challenge of change is not just a question of adapting or reacting to the changes, it may also involve taking new initiatives in relation to the environment itself in order to exploit the opportunities which exist.A company may need to make fundamental adjustments to its philosophy, strategies, organization and practices in order to meet the newer demands of the environment. A prime difficulty is that companies are rarely in a position to start from scratch, they have existing organizational arrangements, power distributions, well established strategies and vested interests all of which tend to resist any kind of change which is likely to upset the ‘status quo’. They also have to overcome outdated beliefs and norms if they are to progress.This article considers the use of a modified approach to strategic planning as a mechanism for helping a company to acquire the norms, organization and strategies needed to cope with today's business environment. It is based on experience gained in helping to re-organize business enterprises engaged in textiles, steel tube manufacture, light engineering, distribution (world wide) and vehicle sales and servicing and also the Government of Jersey, Channel Islands.     

规模不经济下奖惩机制对闭环供应链制造商合作策略影响

存在第三方回收商的闭环供应链中,研究了制造商规模不经情形下,政府奖惩机制对其合作策略的影响。分别构建了制造商仅与零售商（回收商）合作、制造商与零售商和回收商都合作以及均不合作四种合作策略。研究发现：制造商与零售商或回收商均存在合作动机。但是其合作动机的大小则与制造商规模不经济系数及政府奖惩力度有关。若制造商规模不经济系数较小：当政府奖惩力度较小时,制造商倾向与零售商合作;当政府奖惩力度较大时,制造商更倾向与回收商合作;若制造商规模不经济系数较大,制造商总是倾向与回收商合作。此外,无论制造商与零售商或回收商合作总是有利增加旧产品回收总量。