Financial management: Development of scales

This study is a contribution to the development of family resource management scales, specifically financial management scales. Principal axis factor analysis, with varimax rotation, is used to assess underlying relationships in 23 family resource management variables related to time and money resources. Reliability and content, construct, and criterion-related validity of the scales are assessed. Two scales that are reliable and have some degree of validity are developed: frequency of financial problems and frequency of financial management. The scales could be used in future research, teaching, or counseling to organize financial management concepts.Preparation of this research was supported in part by the Illinois Agricultural Experiment Station. Data were collected in conjunction with the cooperative regional research project NC-182, Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families. Cooperating states are Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, and Minnesota.She received her Ph.D. from the University of Illinois; her current research interests include gender roles, family financial management, and economic well-being.Her current research interests include family financial management and consumer bankruptcy. She received her Ph.D. from the University of Missouri.Her current research interests include the economic well-being of various family forms. She received her Ph.D. from the University of Illinois.She received her Ph.D. from the University of Illinois. Her research interests are economic well-being and quality of life.     

Factors associated with expectation of household's future financial condition

Path analysis is used to examine the causal relationships among selected objective and subjective factors associated with a household's expectation of future financial condition. Results indicate that respondents who perceive the effect of changes in the external environment on their own household's financial condition as positive are younger, have higher net worth, perceive more internal control over their situation, and report that most of the changes in the external environment are positive. Respondents who are younger, have higher income, perceive more internal control over their situation, and believe the effect of changes in the external environment on their household's financial condition are positive are more likely to be optimistic about their financial future. It is important that educators and financial advisors recognize the significant role perception of being in control plays in determining expectations of future financial condition.Journal Paper No. J-15256 of the Iowa Agriculture and Home Economics Experiment Station, Project No. 2809. Data were collected in conjunction with the cooperative regional research project NC-182, Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families. Cooperating states are Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, and Minnesota.Her current research interests include family financial management and consumer bankruptcy; she received her Ph.D. from the University of Missouri.She received her Ph.D. from the University of Illinois; her current research interests include gender roles, family financial management, and economic well-being.She received her Ph.D. from the University of Illinois. Her research interests are economic well-being and quality of life.Her current research interests include the economic well-being of various family forms. She received her Ph.D. from the University of Illinois.     

Changes in financial status influencing level of satisfaction in households

This study explores the impact of changes in family financial status over a four year period on level of satisfaction with various aspects of household finances. Data were collected through personal interviews with 123 families in 1982 and 1986. Information was obtained on household income, assets, liabilities, and on the satisfaction of the money managers with seven aspects of household finances. Two-tail pairedt-tests were used to compare differences in financial and satisfaction variables between the two time periods. Regression analyses were applied to ascertain factors affecting the satisfaction of the money managers. The financial status of households improved during the 4 year period as reflected by net worth. The mean net worth, with and without real estate, increased significantly during this time period. In spite of this improvement, money managers are less satisfied with various aspects of their household finances.This research was supported by the Iowa Agriculture and Home Economics Experiment Station Project No. 2773 (Journal Paper No. J-13098).Tahira K. Hira is a Professor and Alyce M. Fanslow is a Distinguished Professor in the College of Family and Consumer Sciences; Patricia Titus is an Instructor in the College of Education; all are at Iowa State University, Ames, IA 50011-1120. Dr. Hira's research interests include consumer bankruptcies and various aspects of household economic well-being Dr. Fanslow's and Dr. Titus' research interests include competencies of household money managers.     

The determinants of worry over chronic health condition for rural couples

This study investigates the determinants of chronic health conditions that worry the member of rural couples who serves as the household financial manager. A sample of 1,115 rural couples from the NC-182 regional research project Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families is used. The logit analysis finds that the probability of having a condition that worries the financial manager increases if she or he is middle aged or older, is not employed, and has external Locus of Control. This probability also increases when the dissatisfaction with the resources available to handle a financial emergency increases and the more often the financial manager does not have money to pay for the doctor.Preparation of this research was supported in part by the Minnesota Agricultural Experiment Station project 52–056 and the Minnesota Extension Service. Data were collected in conjunction with the cooperative regional research project NC-182, Family Resource Utilization as a Factor in Determining Economic Well-Being of Rural Families. Cooperating states are Arizona, California, Illinois, Indiana, Iowa, Kansas, Michigan, and Minnesota.Her current research interests include the economic well-being of various family forms. She received her Ph.D. from University of Illinois.Her current research interests include family financial management and consumer bankruptcy. She received her Ph.D. from the University of Missouri.Her current research interests include issues concerned with family stress management including financial stress. She received her Ph.D. at Michigan State University.Her current research interests include economic and environmental well-being for families and individuals with emphasis on the impact of environmental regulations on economic well-being. She received her Ph.D. from University of Illinois.His current interests include economic well-being of rural families. He was a research assistant for Dr. Bauer before receiving his Ph.D. degree in Agriculture and Applied Economics, University of Minnesota, St. Paul, MN.     

Safety climate and safety outcomes: A meta-analytic comparison of universal vs. industry-specific safety climate predictive validity

Previous research has demonstrated that safety climate is a robust predictor of safety-related outcomes. However, there is little consensus about the optimal strategy to measure safety climate. One of the main issues has been whether safety climate measures should be universal or industry-specific. As such, this study was designed to examine the criterion-related validity of universal and industry-specific safety climate measures by conducting a meta-analytic comparison of their relationships with a variety of safety-related outcomes (i.e. safety behaviour, risk perceptions, accidents and injuries, and other adverse events). With 120 independent samples (N?=?81,213), we found that the industry-specific safety climate measures displayed better predictive power when predicting safety behaviour and risk perceptions than the universal safety climate measures. On the other hand, the universal safety climate measures displayed better predictive power when predicting other adverse events (but not accidents and injuries) than the industry-specific safety climate measures. We discuss these findings in light of the intended use of organisational safety climate surveys.     

Assessing the causal relationship among communication,money management practices,satisfaction with financial status,and satisfaction with quality of life

The purpose of the study reported here is to assess the causal relationship among communication, money management practices, satisfaction with financial status, and quality of life. The data used were collected in 1986 through personal interviews. The sample size is 123 interviewees, and the unit of analysis is the household's money manager. Results show that the money managers who are more knowledgeable about financial matters, and those who are highly indebted, communicate more about money matters and report more money management activities. Satisfaction with financial status is caused mainly by economic factors (net worth and savings). The demographic factors that influence satisfaction with quality of life are marital status and household size. Satisfaction with quality of life is also predicted by income and satisfaction with financial status.This research was supported by the Iowa Agriculture and Home Economics Experiment Station Project No. 2773 (Journal paper No. 13123).Dr. Olive Mugenda is a senior lecturer Lecturer at Kenyatta University, P. O. Box 62337, Nairobi, Kenya, East Africa. Dr. Tahira K. Hira is a Professor, Department of Family Environment, Iowa State University. Dr. Alyce M. Fanslow is a Distinguished Professor, Department of Family and Consumer Sciences Education, Iowa State University, Ames, IA 50011.Drs. Mugenda and Fanslow received their Ph.D. degrees from Iowa State University, Dr. Hira received her Ph.D. degree from the University of Missouri, Columbia.Dr. Mugenda's research is in family financial management areas. Dr. Hira's research focuses on factors influencing satisfaction with households' financial status and consumer bankruptcy. Dr. Fanslow's research interest includes financial management education.     

Why me? The frog-pond effect,relative deprivation and individual outcomes in the face of budget cuts

Conservation of resources (COR) theory proposes that both individual characteristics and environmental factors predict stress reactions, but does not consider interactions between individual variables and the immediate social context. Using theories regarding the frog-pond effect, which relates to how an individual perceives themselves in relation to that of those around them, and relative deprivation, we tested the hypothesis that employees who were personally more affected by a potential stressor, yet were in an organizational unit less affected by that stressor, would report more negative outcomes than employees who were subjected to the same stress but were in more affected units. Utilizing multilevel modelling and departmental- and individual-level data from a university experiencing severe budget cuts, it was found that both individual perceived budget cut impacts and departmental impacts were related to less job satisfaction, reduced affective commitment, greater perceptions of psychological contract breach and increased turnover intentions, supporting COR theory. Interestingly, as predicted by the frog-pond effect and relative deprivation theory, affected academic staff within departments that were less affected by the cuts had more negative responses than equally impacted individuals in more affected departments. We concluded that the frog-pond effect is relevant to work stress research and practice.     

The relationship between job insecurity and accident under-reporting: A test in two countries

Although the problem of accident under-reporting is increasingly recognized in the literature, less is known regarding work environment variables that predict the severity of such under-reporting. Data on perceived job insecurity and on the numbers of both accidents that were experienced and accidents that were actually reported over a period of one year were obtained from 786 employees in 24 US organizations and 563 employees in 20 Italian organizations in sectors where safety is highly relevant. Analysis of these data suggested that not only is job insecurity related to the likelihood of experiencing an accident, but also perceptions of job insecurity may serve to inhibit the reporting of accidents to appropriate company officials. Overall, the rate of accidents was lower in Italy than the United States. Moreover, in both countries, when job insecurity was low, there was little difference between the total number of experienced accidents and the number that employees reported. However, as job insecurity increased, the under-reporting of accidents increased. The implications of these results are discussed in light of the globally increasing prevalence of job insecurity in today's workplace.     

Leadership decision-making: A behavioral reasoning theory analysis

Behavioral reasoning theory proposes that context-specific reasons are critical in decision-making, intention formation, and behavior. Reasons are especially important for leaders because of their frequent need to justify their decisions to others. Past behavioral intention theories, such as the theory of planned behavior, have not accounted for the impact of reasons on decision-making processes. Moreover, behavioral reasoning theory hypothesizes that reasons not only influence leaders' attitudes, subjective norms, and perceived control to act, they also directly influence leaders' intentions to act (through explicit or implicit processes). We tested theoretical propositions in a special case of executives' decisions to employ youth workforces (N = 283). Results demonstrated support for the theory, including its predictive validity over the theory of planned behavior. Regarding theoretical extensions for future research, the theory suggests that leaders' decisions could benefit from a careful analysis of their attitudinal, normative, and control perceptions as well as an explicit consideration of their specific behavioral reasons that are grounded in relevant fact, objective evidence, and empirical research. Finally, the possible link between leaders' justifiable reasoning and followers' perceived procedural justice and satisfaction is discussed.     

Personality Traits and Subjective Well-Being: Moderating Role of Optimism in University Employees

The present study examined the moderating impact of optimism on the relationship between personality traits (neuroticism and conscientiousness) and subjective well-being (distress and satisfaction with life) among university employees. Participants were 251 (age 25–60) employees at COMSATS University, who completed demographic information sheet, two subscales (neuroticism and conscientiousness) of NEO Personality Inventory (Costa et al. in Br J Psychol 78:299–306, 1987), Life Orientation Test-Revised (Scheier et al. in J Pers Soc Psychol 67:1063–1078, 1994), Satisfaction with Life Scale (Dienere et al. in J Persy Assess 49:71–75, 1985), and two subscales (depression and anxiety) of Brief Symptom Inventory (Derogatis and Melisaratos in Psychol Med 13:595–605, 1983). On a final sample of 251 university employees, a series of moderated hierarchical regression analyses were performed separately for positive and negative health outcomes. Results indicated that optimism moderated between neuroticism and distress and neuroticism and satisfaction with life. Further, optimism moderated between conscientiousness and distress and conscientiousness and satisfaction with life. The current findings have implications for clinicians, researchers, and policy makers for the identification of resource factors that may help to understand the resistant power of non clinical sample to maintain positive functioning.