Innovation management in context: environment, organization and performance

Several decades of research into innovation management have failed to provide clear and consistent findings or coherent advice to managers. In this paper, I argue that this is because innovation management 'best practice' is contingent on a range of factors, and that we need better characterizations of the technological and market contingencies which affect the opportunity for, and constraints on, innovation. I review research on innovation together with relevant studies from organizational behaviour and strategic management, and develop a model which may help to guide future innovation research on the relationships between environmental contingencies, organization configurations and performance. I identify uncertainty and complexity as the key environmental contingencies that influence organizational structure and management processes for innovation.     

National Differences in the Diffusion and Design of Technological Innovation: The Role of Inter-Organizational Networks

This paper reports results from a study of the design and diffusion of computer-aided production management (CAPM) technologies across four European countries (UK, France, The Netherlands and Sweden). The study combined surveys of members of professional operations management associations in each of these four countries and interviews with operations managers and technology suppliers (software suppliers and consultants). The findings revealed significant differences across countries in the design and diffusion of CAPM. For example, in the UK and France highly objectified 'best practice' technologies, supported by standardized software, had diffused more widely than in Sweden and The Netherlands, where solutions tended to be developed in-house and customized to the local context. This paper explains these findings in terms of differences in the structure and operation of these four professional association networks. These differences in inter-organizational networking encouraged different types of knowledge-sharing related to the design of CAPM in the four countries.     

Strategic human resource management: where have we come from and where should we be going?

Strategic human resource management (SHRM) implies a concern with the ways in which HRM is critical to organizational effectiveness. This straightforward assertion is examined in theory and through research evidence to reveal high levels of complexity in relation to how, when and why the interconnection between HRM and organizational outcomes is achieved. The two dominant normative models of 'best fit' and 'best practice' are considered. The paper concludes that the HR strategies of firms are heavily shaped by contextual contingencies, including national, sectoral and organizational factors. However, such a conclusion does not invalidate all 'best-practice' thinking. Although constrained in certain ways, underpinning principles of labour management still have relevance to practice as essential attributes of a firm's ability to compete in its chosen markets. The paper then considers the resource-based view (RBV) of the firm and asks whether this provides a better basis for the development of theory in SHRM and in understanding the contribution of HRM to the achievement of sustained competitive advantage. While limits to the utility of RBV in respect of SHRM theory are identified, important implications for research are signalled. Trends in the RBV literature are pushing all those interested in strategy towards studies of intellectual capital, learning processes and organizational adaptability. Researchers in HRM could, if they wished, play a central role in these developments because questions of how to attract, motivate and develop workers with critical and scarce abilities, and develop effective processes of work organization, must be fundamental to any model of knowledge-based competition. Greater progress will be made when organizations are studied in a much more interdisciplinary or systemic way.     

Managing Employee Compliance with Information Security Policies: The Critical Role of Top Management and Organizational Culture*

We develop an individual behavioral model that integrates the role of top management and organizational culture into the theory of planned behavior in an attempt to better understand how top management can influence security compliance behavior of employees. Using survey data and structural equation modeling, we test hypotheses on the relationships among top management participation, organizational culture, and key determinants of employee compliance with information security policies. We find that top management participation in information security initiatives has significant direct and indirect influences on employees’ attitudes towards, subjective norm of, and perceived behavioral control over compliance with information security policies. We also find that the top management participation strongly influences organizational culture which in turn impacts employees’ attitudes towards and perceived behavioral control over compliance with information security policies. Furthermore, we find that the effects of top management participation and organizational culture on employee behavioral intentions are fully mediated by employee cognitive beliefs about compliance with information security policies. Our findings extend information security research literature by showing how top management can play a proactive role in shaping employee compliance behavior in addition to the deterrence oriented remedies advocated in the extant literature. Our findings also refine the theories about the role of organizational culture in shaping employee compliance behavior. Significant theoretical and practical implications of these findings are discussed.     

Learning in organizations: HR implications and considerations

This paper looks at learning in organizations as one response to competitive pressure and accelerating environmental change. Two approaches, the learning organization and HRD, are examined in the light of new models of management and learning and a move towards the integration of work, learning, and strategy. The significance of employee participation is considered in relation to learning and some benefits and drawbacks discussed. The development of a learning orientation is seen as an organization-wide responsibility but HR practitioners can play a key role in the promotion of learning by gearing the more traditional HR activities towards the achievement of organizational goals.     

Whistle-blowing regulation in different corporate governance systems: an analysis of the regulation approaches from the view of path dependence theory

The research question of this paper is, if and why countries need different legal approaches to whistle-blowing regulation. The paper specifically explores whether regulation approaches from other countries are suitable to regulate whistle-blowing in the German corporate governance system. First, it is clarified which factors influence the choice of the desired action—that is, “internal whistle-blowing”—and it is demonstrated that the underlying corporate governance system has a potential influence on these factors. Next, it is shown that the consistency of systems is responsible for the lack of success of some legal approaches of the whistle-blowing regulation in special corporate governance systems, whereas in other systems they can be very successful. Finally, the paper presents the requirements for whistle-blowing regulation that does not damage the consistency of the underlying corporate governance system. The findings support path dependence theory, which claims that legal approaches of one country cannot be transferred to other countries. Moreover, whistle-blowing literature is expanded by the fact that the underlying corporate governance system of a country influences the power and loyalty of the employee. It suggests new avenues for whistle-blowing research as well as for the potential convergence of corporate governance regulation. The findings offer insights for policy makers interested in the development of legal proposals for whistle-blowing regulation in their countries. Moreover, it provides a new perspective to enable managers of multinational firms to design whistle-blowing systems within different corporate governance systems.     

Dynamic capabilities and employee participation: The role of trust and informal control

While burgeoning research has shown the relevance of dynamic capabilities in terms of managers identifying and pursuing business opportunities, much less is known about the role of involving employees without managerial status in those activities. In this paper, we examine the impact of employee participation on the enactment of dynamic capabilities. The results of our survey-based linear regression analysis show that employee participation is positively related to the dynamic capabilities of a firm. Furthermore, we hypothesize and find that managers can facilitate employee participation through both trust in and informal control of subordinates. Our findings also suggest a positive relationship between informal control and dynamic capabilities, and point to employee participation as a mediator in the relationship between trust and dynamic capabilities. Our results extend the literature on dynamic capabilities by highlighting and demonstrating the important role of employee participation in identifying and pursuing business opportunities through dynamic capabilities as well as the relevance of trust and informal control therein.     

Implications and Applications of a Behavior Systems Perspective

Improving employee performance in an organization seems to cycle back and forth among six broad approaches. Rather than debate which approach is most effective, the argument is made that each approach is simply one aspect of a larger behavior system. The ultimate answer, then, is to integrate these approaches within an overarching behavior systems perspective. A potential behavior systems perspective is described as well as its implications for employee performance improvement. An expansion of OBM graduate curricula is recommended that includes more diverse improvement strategies.     

Studies in MBO effectiveness.

Management by objectives (MBO) is a popular management approach the efficacy of which has been seriously questioned recently. I have analyzed 185 studies for the effects of MBO on employee productivity and/or job satisfaction. Research support for MBO was found to be inversely related to the degree of research design sophistication. Although the five well-controlled experiments leaned toward finding MBO to be ineffective, it appears a contingency approach to MBO is more appropriate than a definitive affirmation or rejection of MBO effectiveness.     

Leaders's language and employee proactivity: Enhancing psychological meaningfulness and vitality

Today's volatile environment and pressure for continuous improvement require leaders to play a central role in fostering and nurturing employee proactivity. Effective leaders use their communication skills as a key tool to motivate employees to achieve organizational goals. In this study, we tested a model in which leader motivating language (manifested as direction-giving, empathetic, and meaning-making language) fosters the development of employee proactive behavior by shaping a psychological context of meaningfulness and cultivating a motivational state of employee vitality. The findings indicate that the leader motivating language is related directly and indirectly, through psychological meaningfulness, to employee vitality. We also found that psychological meaningfulness and employee vitality are mediating mechanisms through which leader motivating language can result in enhanced employee proactivity. This study advances theory and research on employee proactivity as a contingency of leadership motivating language by integrating three emerging streams of research—relational leadership, relational communication, and proactivity. Theoretical and practical implications are discussed.     

Revisiting Fayol: Anticipating Contemporary Management

This study argues that in classifying Fayol as a founding father of the Classical Management School, we have to some extent misrepresented this still important management theorist. The received Fayol portrayed in contemporary texts invariably emerges as a caricature of a much more insightful, complex, visionary and rounded management thinker. This study re-examines Fayol's personal and career history, as well as the arguments presented in his original work, General and Industrial Management . It finds that he was a much more complex and multidimensional figure than his conventional stereotype today, and that his management theories embraced a wider spectrum of approaches and concepts than traditionally identified with the classical management school of thought. In marked contrast to his traditional portrayal, this study uncovers traces of ideas and concepts that anticipated aspects of the human relations movement, systems-based contingency theory, the movement towards greater employee involvement in decision-making and elements of knowledge management.     

Performance Related Pay in Practice: A Critical Perspective1

This paper discusses the use of performance related pay (PRP) as a means of control over the relationship between effort and reward. Taking a critical perspective, it describes how the implementation of PRP in a UK-based electronics company has been used as a device to remove trade union influence in wage-setting arrangements and to effect changes in employee behaviour. The opinions of supervisors, line managers, personnel managers and shop-floor staff are discussed and the implications for management control are assessed. The paper concludes that from management's perspective the PRP system appears to have been a success, for it has in some cases ‘commercialized’ the relationship between effort and reward, and has pre-empted expressions of employee resistance.     

Employer-employee based quality circles in Japan: human resource policy implications for American firms

This paper traces the development of the quality circle in Japan with reference to such traditions as permanent employment, nenko (seniority-based compensation), enterprise unionism, and management paternalism. Quality circles are examined as tools for motivating employees, reducing labor turnover, effecting employee "career expansion," and allowing employee participation in job redesign.     

EMPLOYEE DEVELOPMENT: AN EXAMINATION OF SERVICE STRATEGY IN A HIGH‐CONTACT SERVICE ENVIRONMENT

A critical component of service strategy in high‐contact environments is service encounter management. Effective service encounters are a result of the quality of employee development, including systems for work and job design, training and development, and attention to employee well being. Results of empirical analysis indicate that service strategies reflecting the dimensions of employee development drive employee outcomes such as productivity and satisfaction. Employee outcomes are significantly associated with customer satisfaction, but only some linkages to financial performance are significant. This study illustrates the importance of employee development in service strategy design for managing service encounters in high contact service environments.     

Fit in strategic information technology management research: an empirical comparison of perspectives

The impacts of information technology on business performance has been a focus of research in recent years. In this regard, contingency models based on the notion of “fit” between the organization's management of IT, its environment, strategy, and structure seem to show promise. Six perspectives are examined as they pertain to the relationships between the firm's environmental uncertainty, its strategic orientation, its structure, its strategic management of IT, and its performance, namely moderation, mediation and matching as bivariate approaches to fit, and covariation, profile deviation and gestalts as systems approaches. These relationships are analyzed by means of an empirical study of 110 small enterprises. Results obtained from applying and comparing the six perspectives illustrate their significant differences and confirm the need for conceptual and methodological rigor when applying contingency theory in strategic information technology management research.     

The Role of Leader Influence Tactics and Safety Climate in Engaging Employees'' Safety Participation

This study examines the effect of leader influence tactics on employee safety participation in a U.K.-based manufacturing organization, examining the role of safety climate as a mediator. Structural equation modeling showed that leader influence tactics associated with a transformational leadership style had significant relationships with safety participation that were partially mediated by the safety climate (consultation) or fully mediated by the safety climate (inspirational appeals). In addition, leader influence tactics associated with a transactional leadership style had significant relationships with safety participation: rational persuasion (partially mediated by safety climate) and coalition tactics (direct effect). Thus, leaders may encourage safety participation using a combination of influence tactics, based on rational arguments, involvement in decision making, and generating enthusiasm for safety. The influence of building trust in managers is discussed as an underlying mechanism in this relationship. Practical implications are highlighted, including the design of leadership development programs, which may be particularly suited to high-reliability organizations.     

Beyond the Skinner Box: The Design and Management of Organization-Wide Performance Systems

A discussion of the need for organizational behavior management practitioners to shift their application paradigm from a dyadic perspective to a systems perspective is presented. Such a shift would improve the identification of performance improvement opportunities, reduce the effects of unintended contingency interactions, and help ensure sustainable improvement efforts. Nine performance system tools are described that assist the analyst in the design of a performance system and its long-term management and maintenance. A manufacturing case study describing the application of these tools is provided.     

Schedule Recovery: Unplanned Absences in Service Operations*

The U.S. service sector loses 2.3% of all scheduled labor hours to unplanned absences, but in some industries, the total cost of unplanned absences approaches 20% of payroll expense. The principal reasons for unscheduled absences (personal illness and family issues) are unlikely to abate anytime soon. Despite this, most labor scheduling systems continue to assume perfect attendance. This oversight masks an important but rarely addressed issue in services management: how to recover from short‐notice, short‐term reductions in planned capacity. In this article, we model optimal responses to unplanned employee absences in multi‐server queueing systems that provide discrete, pay‐per‐use services for impatient customers. Our goal is to assess the performance of alternate absence recovery strategies under various staffing and scheduling regimes. We accomplish this by first developing optimal labor schedules for hypothetical service environments with unreliable workers. We then simulate unplanned employee absences, apply an absence recovery model, and compute system profits. Our absence recovery model utilizes recovery strategies such as holdover overtime, call‐ins, and temporary workers. We find that holdover overtime is an effective absence recovery strategy provided sufficient reserve capacity (maximum allowable work hours minus scheduled hours) exists. Otherwise, less precise and more costly absence recovery methods such as call‐ins and temporary help service workers may be needed. We also find that choices for initial staffing and scheduling policies, such as planned overtime and absence anticipation, significantly influence the likelihood of successful absence recovery. To predict the effectiveness of absence recovery policies under alternate staffing/scheduling strategies and operating environments, we propose an index based on initial capacity reserves.     

劳动关系氛围和员工工作满意度:组织承诺的调节作用

本文从组织行为层次探讨劳动关系氛围与员工态度之间的关系。基于60家企业1607名员工的问卷调查,本文探讨了劳资双赢、劳资对立和员工参与三种劳动关系氛围对员工内在和外在满意度的直接影响,以及员工组织承诺在上述关系中的调节作用。研究发现,劳资双赢氛围显著地提升员工的内在和外在满意度,劳资对立氛围显著地降低员工的内在和外在满意度,员工参与氛围仅能显著提升员工的内在工作满意度。同时,员工组织承诺中的情感承诺能显著增强劳资双赢氛围对内在和外在工作满意度的积极影响,但仅能显著降低劳资对立氛围对内在工作满意度的消极影响,而对员工参与氛围的影响不具有调节作用。此外,研究还发现交易承诺不存在调节效果。     

Performance Management,Job Satisfaction and Organizational Commitment1

A number of investigations have focused on aspects of human resource management policy and their impact on employees. The study reported here examines the extent to which the main elements of performance management systems are associated with positive employee attitudes. Questionnaire measures of performance management variables and of employee attitudes were obtained from 860 staff in nine organizations, all of which had been ascertained to be operating performance management systems. The findings indicate that most elements of performance management did contribute to positive employee attitudes, and that between them they accounted for a substantial proportion of the variance in measures of organizational commitment and (especially) job satisfaction. Some differences in the data from public and private-sector organizations were found.