The congruence of actual and perceived person–organization fit

Person–organization fit (P–O fit) is an important and often-researched variable, which sheds light on the way employees perceive their relationship with the organization they work for. In this study, two different assessments of P–O fit are compared, i.e. actual fit (an indirect measurement based on the comparison of organizational and personal values or characteristics) and perceived fit (a direct measurement involving employees' own estimations of their P–O fit). The four quadrants of the Competing Values Framework (CVF) are used to investigate which values have the strongest influence on employees' fit perceptions. In a polynomial regression analysis, the predictive power of the indirect fit measure on the direct fit measure is tested in a sample of two organizations (hospital n1 = 222; chemical plant n2 = 550). The results show that of the four CVF quadrants human relations values have the strongest predictive power for employees' fit perceptions and rational goal values contribute least. In the discussion section, special attention will be paid to the measurement of individual values as the results raise important methodological questions.     

Aligning strategic human resource management and person–environment fit

Strategic human resource management addresses the need to create vertical linkages of human resource management (HRM) attributes with corporate strategy as well as horizontal linkages that integrate practices among HRM functions. Most models commonly focus on either vertical or horizontal linkages. This paper utilizes three categories of person–environment fit to create both vertical and horizontal linkages. Based on a strategic contingency framework, it demonstrates how person–environment fit relates to organizational competencies that supports corporate strategy. Furthermore, it demonstrates how person–environment fit can be used to promote internal alignment of HRM practices. Implications of this approach to strategic human resource management are then discussed.     

A test of the relationship between person–environment fit and cross-cultural adjustment among self-initiated expatriates

Understanding an expatriate's cross-cultural adjustment to the various aspects of their host environment and organization has been a focal point of research for several decades. Person–environment (PE) fit refers to the degree of fit an individual has with various dimensions of their host environment, and past research suggests that successful PE fit positively influences adjustment. However, the strength of these relationships remains under-researched. Drawing upon data gathered from 369 self-initiated expatriate doctors working in Ireland, we examine the strength of the relationship between PE fit and cross-cultural adjustment. Our results suggest that dimensions of PE fit influence cross-cultural adjustment to varying degrees. Thus, person–job needs-supplies fit was the only fit dimension to influence interaction adjustment, while person–job demands abilities influenced both work adjustment and, to a lesser extent, interaction adjustment. Person–organization fit influenced work adjustment, while person–supervisor fit had no relationship with adjustment. These findings have implications for organizations when recruiting and supporting self-initiated expatriates.     

Relationships among leader–member exchange,person–organization fit and work attitudes in Japanese and Korean organizations: testing a cross-cultural moderating effect

This study examines a possible national culture difference in the moderating effect of leader–member exchange (LMX) on the relationship between person–organization (P–O) fit and work attitudes, including job satisfaction and organizational commitment, in Japan and Korea. Specifically, we use trait activation theory as a lens to explain the complementarities between P–O fit and LMX that may exert an influence on employees' work attitudes. We hypothesize that from the cross-cultural management perspective, such complementary effects would work in Japan where organizations encourage more decentralization and empowerment than those in Korea, which may enable supervisors in Japanese organizations to provide unambiguous reward expectancies for their immediate subordinates. Using samples of 138 Japanese and 144 Korean employees working for privately owned firms in Japan and Korea, we demonstrate that a significant three-way interaction of employees' P–O fit, LMX and a national culture difference (i.e. nationality) influences their work attitudes. Specifically, LMX moderated the positive relationships between P–O fit and both job satisfaction and organizational commitment for Japanese employees, tending to weaken them. For Korean employees, however, no such interactions were observed. The findings are used to discuss the applicability and generalizability of trait activation theory in East Asian cultures. In addition, suggestions are made regarding the discussion of HRM practices from a cross-vergence perspective. Limitations and directions for future research are also discussed.     

The interactions between person–organization fit and leadership styles in Asian firms,an empirical testing

This paper presents a study that examines the use of human resource management (HRM) practices and factors influencing the adoption of HRM practices in small and medium-sized enterprises (SMEs). Using a multiple-case study method, HRM in SMEs was explored by comparing 12 small and medium-sized and 12 large semiconductor design firms. The findings show that there is considerable homogeneity across the firms in relation to their use of human resources (HR) practices providing support for the insights based on the new institutionalism. The factors leading to the homogeneity HRM are discussed. It is argued that theory-based empirical research on HRM in SMEs within the same industry enable us move towards a systematic understanding and explanation of HRM in SMEs.     

Multivariate location–scale mixtures of normals and mean–variance–skewness portfolio allocation

We show that the distribution of any portfolio whose components jointly follow a location–scale mixture of normals can be characterised solely by its mean, variance and skewness. Under this distributional assumption, we derive the mean–variance–skewness frontier in closed form, and show that it can be spanned by three funds. For practical purposes, we derive a standardised distribution, provide analytical expressions for the log-likelihood score and explain how to evaluate the information matrix. Finally, we present an empirical application in which we obtain the mean–variance–skewness frontier generated by the ten Datastream US sectoral indices, and conduct spanning tests.     

Work–family enrichment and satisfaction: the mediating role of self-efficacy and work–life balance

Although the direct effects of work–family enrichment on satisfaction are well-documented, previous theoretical predictions and empirical findings of the relationship have been inconsistent. Drawing on social cognitive theory, the current research examined how work–family enrichment contributes to job and family satisfaction by exploring the mediating mechanisms of self-efficacy and work–life balance. This study also empirically validated a new self-efficacy measure using the work–life interface nomological network. A heterogeneous sample of Australian employees (N = 234) from four different organisations responded to two waves of data collection separated by a 12-month interval. Using structural equation modelling, the results of the statistical analysis provided preliminary support for the hypothesised chain mediation model and the newly developed five-item self-efficacy to regulate work and life scale. Specifically, work-to-family enrichment and family-to-work enrichment were positively related to self-efficacy, which in turn had a positive effect on work–life balance. Similarly, work–life balance had a positive impact on job and family satisfaction. Evidence of these relationships over time was demonstrated, thereby emphasising the importance of person–cognitive resources (e.g. self-efficacy) in influencing life outcomes. Validation of the self-efficacy scale also demonstrated robust psychometric properties and criterion validity. Implications of these results were subsequently discussed.     

Learning and stability of the Bayesian–Walrasian equilibrium

Under the Bayesian–Walrasian Equilibrium (BWE) (see Balder and Yannelis, 2009), agents form price estimates based on their own private information, and in terms of those prices they can formulate estimated budget sets. Then, based on his/her own private information, each agent maximizes interim expected utility subject to his/her own estimated budget set. From the imprecision due to the price estimation it follows that the resulting equilibrium allocation may not clear the markets for every state of nature, i.e., exact feasibility of allocations may not occur. This paper shows that if the economy is repeated from period to period and agents refine their private information by observing the past BWE, then in the limit all agents will obtain the same information and market clearing will be reached. The converse is also true. The analysis provides a new way of looking at the asymmetric equilibrium which has a statistical foundation.     

Gaps between managers' and employees' perceptions of work–life balance

Research on work–life balance (WLB) practices has increased in recent years. Academics affirm that the implementation of WLB practices helps to achieve better organizational results and improve employee outcomes such as higher satisfaction and commitment, and reduce turnover intentions. However, some authors have argued that there are differences between the availability of WLB practices in companies and employees' perceptions of access to such practices. The literature on the differences in perceptions between managers and employees in relation to WLB and its effects is sparse. Using two samples of 229 managers and 511 employees from the same firms, we in this paper contribute to our knowledge of the existence of the perception gaps between managers and employees and their influence on the take-up of WLB. Implications for academics and practitioners are discussed.     

The impact of organizational and leader–member support on expatriate commitment

Using data from expatriates at MNC subsidiaries in China, this paper investigates the relationships between parent company and local subsidiary perceived organizational support (POS), leader–member exchange (LMX) and affective commitment of expatriates. The study examines the moderating effect of LMX in the relationships between both parent company and local subsidiary POS and affective commitment. Results support the relationships between both parent company and local subsidiary POS, LMX and the expatriate affective commitment, and the moderating effect of LMX in the relationships between parent company POS and affective commitment.     

Gainsharing and knowledge sharing: the effects of labour–management co-operation

We compare patterns of employee knowledge sharing in the form of suggestions for reducing costs and improving productivity submitted as part of a gainsharing reward system in two organizations. Combining insights from recent studies that use employee risk sharing and organizational learning frameworks to understand how gainsharing programmes work, we propose that employees' willingness to share high-risk (second-order-learning) knowledge with management is affected by the degree of labour–management co-operation and trust. Specifically, we hypothesize that union support and involvement in gainsharing affects employee knowledge sharing by increasing employees' initial acceptance of the compensation risk associated with gainsharing and by facilitating employee willingness to take on additional compensation and employment risk over time. We test these hypotheses using time series data on employee suggestions and gainsharing performance at two locations with similarly structured gainsharing plans but different levels of labour–management co-operation. The results generally support our hypotheses. We conclude by considering the implications of these results for gainsharing design and implementation as well as the broader implications of the effect of HR practices on employee knowledge sharing and knowledge management in organizations.     

Auditor Independence and the Cost of Capital Before and After Sarbanes–Oxley: The Case of Newly Issued Public Debt

An important aim of the Sarbanes–Oxley Act (SOX) was to reduce the cost of capital by enhancing auditor independence. However, prior literature has argued that SOX has been ineffective in meeting this objective. We contribute to this debate by first providing evidence suggesting that auditor independence has increased following SOX. Though we posit an inverse relationship between auditor independence and cost of capital, it is an open question whether this relationship has become stronger or weaker following SOX. An examination of this relationship reveals that auditor independence is more strongly related to bond rating and bond yield premium in the post-SOX period relative to the period before SOX. This evidence suggests greater price sensitivity of corporate debt to the level of auditor independence following SOX. We also show that controlling for the effect of auditor independence and other factors, cost of debt decreased following SOX.     

Negative work–family/family–work spillover and demand for flexible work arrangements: the moderating roles of parenthood and gender

In recent years, companies have increasingly adopted flexible work arrangements (FWAs) to help company managers address negative work–family/family–work spillover (inter-role conflicts between work and family roles). Accordingly, we investigate the effects of parenthood and gender on the relationship between negative work–family/family–work spillover and demand for FWAs. Based on a sample of 1577 managers (967 females and 610 males) of South Korean companies, the results show that parenthood has a significant moderating effect on the relationship between negative work–family/family–work spillover and the demand for FWAs, regardless of gender. The present study highlights the importance of parenthood not only in addressing negative work–family/family–work spillover but also in expressing a demand for FWAs.     

Environmental NGO–business collaboration and strategic bridging: a case analysis of the Greenpeace–Foron Alliance

Environmental NGO–business collaborative partnerships, commonly called green alliances, are encouraging corporate enviropreneurship, entrepreneurial innovations that address environmental problems and result in operational efficiencies, new technologies and marketable ‘green’ products. Aside from offering environmental, scientific and legal expertise, environmental NGOs can provide linkages to other societal stakeholders, referred to as strategic bridges, to support enviropreneurial initiatives. This article focuses on the linkage capabilities of environmental NGOs by developing an extended strategic bridging framework that articulates necessary process contingencies and engagement strategies for building effective bridges with environmental stakeholders. Propositions are advanced and tested in an analysis of the alliance between Greenpeace and Foron Household Appliances in Germany during 1992–93 for the marketing of an environmentally responsible refrigerator. Stakeholder characteristics and partnership outcomes reveal managerial implications and conceptual extensions of strategic bridging in green alliances, and future research directions are discussed. Copyright © 2000 John Wiley & Sons, Ltd and ERP Environment     

Fostering societal impact and job satisfaction: the role of performance management and leader–member exchange

ABSTRACT

Performance management (PM) can alienate employees from experiencing societal impact. This is problematic since societal impact influences employees’ job satisfaction. To avoid such unintended effects, we investigate two conditions under which PM could instead benefit the societal impact and job satisfaction of employees: consistency and leader-member exchange. Results show consistent PM fosters job satisfaction, mediated by societal impact and moderated by leader–member exchange. Public organizations should streamline expectations communicated through PM and constructive leader relationships could reinforce this process. By examining the conditions under which PM can avoid unintended effects on employees, we add to the debate on PM effectiveness.     

Leader–member exchange as a moderator of the relationship between employee–organization exchange and affective commitment

While there is some evidence on the outcomes of employee–organization exchange relationships and leader–member exchange (LMX) relationships, less is known about their combined role as predictors of employee outcomes. Relying on a recent conceptualization of social leader–member exchange (SLMX) and economic leader–member exchange (ELMX) as two separate dimensions of LMX, the present study explored whether SLMX and ELMX moderate the associations between organizational social and economic exchange and affective commitment. The main finding was that the association between organizational economic exchange and affective commitment is attenuated by SLMX. In addition, a positive association between intrinsic motivation and affective commitment was also unveiled, suggesting that affective commitment is not only determined by the prosocial motivation emanating from social exchange relationships, but also from the intrinsic motivation inherent in the work itself.     

Person–Organization Fit and Public Service Motivation in the Context of Change

This study examines public sector change, motivation and person–organization (P–O) fit in a stress context. The results provide empirical evidence that change initiatives produce change-induced stressors. However, change processes, including participation in change decision-making and the provision of change information, increase public service motivation, reduce change-induced stressors and ultimately improve P–O fit and job satisfaction. The results also depict that, in the context of change, public service motivation positively influences job satisfaction, with this relationship partially mediated by P–O fit. Implications for New Public Management and the importance of change processes for reducing workplace stress are discussed.     

Work–home enrichment and health: an analysis of the mediating role of persistence in goal striving and vulnerability to stress

Extant research has shown that work–home enrichment (WHE) generates favorable effects on individuals' work-related and nonwork-related outcomes because of the synergistic combinations realized between work and home lives. In this paper, I explore the link between WHE and self-reported health. Despite this relationship has been already investigated in prior research, scholars have mostly adopted a simplistic approach that directly linked WHE to health, resulting in a limited understanding of what factors are conducive of such positive effects. In this paper, I test a more sophisticated model that link WHE to self-rated health indirectly, through the mediating role of persistence in goal striving and vulnerability to stress. By using data collected through the second follow-up of the National Survey of Midlife Development in the United States (MIDUS II; 2004–2006) and involving a large national sample of working adults, the results show that individuals experiencing high levels of WHE report a better health status because of an enhanced determination to persist in goal striving even when facing difficulties and a lower vulnerability to stress. Implications of these findings for research and practice are discussed.     

Cultural boundaries of self-justification and prospect theories in escalation of commitment: a US–Mexico comparison

The interplay among managers' cultural origin (i.e. Mexican vs. the USA), decision context and framing was investigated to test the cultural boundaries of self-justification and prospect theories in escalation of commitment. An experimental design indicated that, although a negative decision frame had a greater impact on escalation of commitment among Mexican managers, a positive frame had a greater impact on escalation of commitment among American managers. Moreover, a pattern indicating that framing had an opposite effect in each country emerged when the decision context was negative. Specifically, when the incoming information is positive, US decision-makers escalate their commitment to a failing course of action, whereas it is negative incoming information that leads to escalation for Mexican decision-makers.     

The mediating influence of work–family conflict and the moderating influence of gender on employee outcomes

Finding a balance between work and home continues to be a challenge for many employees. The influence of work–family conflict both from work interfering with family (WIF) and from family interfering with work (FIW) on employee outcomes is not well understood. Although substantial empirical research supports the general view that work–family conflict results from employees having conflicting roles, many previous studies examine work–family conflict and outcomes in the same, or ‘matching’ domains. Some studies on work conflict also have found cross domain outcomes that are largely unexplained. This research addresses this gap in the field by developing and testing the hypothesis that cross domain relationships will be mediated by conflict in the matching domains. Specifically, this study proposes that WIF mediates the relationship between FIW and four employee work outcomes (job satisfaction, organizational commitment, organizational citizenship behavior and task performance), and that FIW mediates the relationship between WIF and life satisfaction. This research also examines the moderating role of gender on the relationships while controlling for age and family status. The results of this study using a sample of 435 full time employees in the US provide support for most of the hypothesized relationships. The theoretical and practical implications of these findings are discussed.