Human Resource Management Practices and Trust in Public Organizations

Abstract

Trust has been acknowledged as a valuable managerial resource within organizations. Working as a lubricant of organizational functioning, trust reduces opportunistic behaviours while it increases voluntary compliance to organizational norms and rules as well as enhancing individual and organizational performance. Considering the importance of trust, it is worthwhile to explore what factors may help build trust within organizations. This research investigates whether perceptions of several human resource management (HRM) practices are associated with trust in government organizations. According to social exchange theory, HRM practices signal management's commitment to employees which in turn leads to greater trust in the organization. Using data from an employee survey conducted for the Georgia Department of Transportation in 2007, this research tests how employee perceptions of HRM practices are related to trust in three distinct levels of management in a large department of state government: trust in department leadership, trust in one's leadership team, and trust in one's supervisor. Binary logit analyses suggest that perceptions of HRM practices focusing on autonomy, compensation, communication, performance appraisal, and career development are associated with trust in public organizations. According to the result, those practices present variation in their leverage on trust in leadership at different levels.     

How social enterprises manage their organizational identification: a theoretical framework of identity management approach through attraction,selection, and socialization

Abstract

Social enterprises, as a typical type of hybrid-identity organization, face identification tensions among members, arising from the divergent identities. Prior research has focused on how hybrid identities can be managed at the organizational level. However, the process through which identification emerges in hybrid-identity social enterprises remains relatively unexplored. This study addresses these gaps and aims to contribute to identity and identification theory. This research has taken a qualitative (case study) approach, with in-depth interviews and archival data from nine social enterprises in Taiwan. Our findings reveal three different types of responses to hybrid identities of social enterprises: synthesis, integration, and deletion. It is observed that different hybrid identities management and organizational identification management practices will lead to members’ identification and dis-identification. This research proposes an attraction-selection-socialization model, suggesting that, to foster identification, social enterprises need to manage their hybrid organizational identities and embed the new common identity into members’ daily work through attraction, selection, and socialization processes.     

Technological capabilities,resilience capabilities and organizational effectiveness

Abstract

Previous research has defined resilience as a desirable characteristic for an organization and its members to possess when circumstances adversely change. Resilience is analysed through different perspectives as organizational responses to external threats, organizational reliability or employee strengths. However, the role of resilience in enhancing organizational effectiveness is not fully understood. Grounded in organizational ambidexterity, the current research tests the value of resilience capabilities developed through specific Human Resource Practices (HRPs) in the context of ever-changing market conditions. This paper argues that as well as technological capabilities, HRPs that build resilience within an organization are needed to successfully implement technological change. Resilience capabilities are a mediating factor between technological capabilities and organizational effectiveness, whilst environment dynamism and competitive intensity are moderators of this relationship. Using a primary sample of 205 manufacturing firms, a model is presented and tested using Structural Equation Modelling. The results reinforce the importance of HRPs in building resilience which helps firms to continuously adjust to change and subsequently enhance their organizational effectiveness.     

'Citibankers' at Citigroup: A Study of the Loss of Institutional Trust after a Merger

abstract    In this paper, we present the results of a study of the loss of institutional trust following a merger. Specifically, we focus on how issues of organizational identity and identification processes contributed to the loss of institutional trust among a group of employees of Citigroup after its creation through the merger of Citicorp and Travelers. Our study makes two important contributions. First, we propose and demonstrate empirically that institutional trust, like interpersonal trust, can be identity-based. Second, adopting a narrative approach to organizational identity, we explore institutional trust in a post-merger context, highlighting how institutional trust is initially undermined after a merger by the ambiguity of the new organization's identity; and how later, once the identity of the new organization becomes less ambiguous, institutional trust can continue to be undermined by the absence of employees' identification with the new organization, especially among those who were highly-identified with their legacy organizations.     

The Visibility of Trust: Exploring the connection between trust and interaction in a Dutch collaborative governance boardroom

Abstract

In multi-stakeholder collaboration settings, trust plays a significant role. We explore the connection between trust and interaction over time in a collaborative governance board. To this end, we conducted a case study of the board of a collaborative governance arrangement in professional education. The results include an increase in trust within the board as well as three changes in the interaction pattern during board meetings: more openness, more responsiveness and more speed. It is argued that the increase in trust and the changes in interaction are related, implying that trust is visible in interaction content, interaction atmosphere and interaction process.     

When profession trumps potential: The moderating role of professional identification in employees’ reactions to talent management

Abstract

This study aimed to investigate the role that a professionalized context plays in shaping employee reactions to talent management decisions. We examined the mediating role of felt obligation in the relationship between talent ratings and organizational citizenship behavior. Further, the study tested whether professional identification moderates the relationship between talent ratings and felt obligation towards the organization. Five hundred and ninety-eight teachers that had recently received ratings of their talent status responded to a survey questionnaire. Felt obligation mediated the relationship between talent ratings and organizational citizenship behavior. Furthermore, professional identification moderated the relationship between ratings of potential and felt obligation in such a way that the relationship was strongest for the teachers expressing the lowest professional identification. At high levels of professional identification, the relationship was not significant. These results indicate that conventional talent management might be less effective for increasing favorable attitudes and behaviors among employees in highly professionalized contexts, such as the education sector.     

Clarifying the effect of organization learning on service innovation: the mediating role of intellectual capital

Abstract

The study of intellectual capital has gained interest in today’s highly competitive landscape. Using intellectual capital as a mediator, this paper developed an integrated model to examine whether organization learning affects and increases the capacity for new service development (NSD). The results from the study of 598 hotel managers support this model across multi-dimensions of intellectual capital and show that intellectual capital plays a mediating role between organizational learning and NSD. This paper also finds exploitative organization learning enhances the positive effect of organization capital because it fosters a positive link between relational capital and human capital. The study also discusses how this intriguing pattern of mediation could be explained by using theory and research with a regulatory focus.     

How does perceived underemployment influence expatriate job-related outcomes? A moderated mediation study

Abstract

Although research has investigated the consequences of underemployment in domestic settings, research on the effects of underemployment among expatriates remains limited and has yielded inconsistent results. From a theoretical perspective, there is a need for a better understanding of the mechanisms through which underemployment affects various work-related outcomes and to account for potential contingencies. Drawing on the person-job fit literature and research on organizational identification, we theorise and empirically examine how and under what conditions underemployment influences expatriate performance. Using an original primary data-set of 103 Japanese expatriate managers in the UK, we find that underemployment affects expatriate work outcomes by increasing expatriates’ maladjustment and that this effect is moderated by the level to which expatriates identify with their organization.     

The Direct and Mediating Effects of Transactional and Transformational Leadership: A Comparative Approach

SUMMARY

The purpose of this study is to test a comprehensive model of relationships between transactional and transformational leadership trust in organizations, organizational justice, intention to leave and organizational citizenship behavior. The data were collected from 179 middle and direct levels managers in 17 private Egyptian organizations. The data were analyzed using regression analysis and structural equations analysis. The latter analysis provides the potential of examining the complex model as a whole. The focus of the analysis was on the direct and mediating effects of the leadership variables. The study results showed that transformational leadership has an influence over the outcome variables above and beyond the influence of the contextual variables. The implications, limitations and the future research directions were discussed.     

The antecedents of charity trust and its influence on charity supportive behavior

This study develops and tests a model that evaluates eight antecedents of charity trust and its influence on volunteering and donating. Secondary data from a national Australian survey (N = 1,377) was collected and data was analyzed using partial least square path analysis. Key findings include identifying individual and organizational antecedents of charity trust and its influence on charity supportive behavior. Results show that organizational transparency is a very strong antecedent, followed by the individual awareness level of an individual towards the organization. We also examined the effect of gender as a moderating influence but did not find a significant effect. We conclude with managerial implications and areas for future research.     

The effects of internal and external sources of justice on employee turnover intention and organizational citizenship behavior toward clients and workgroup members

Abstract

Organizational justice research tends to focus on the effects of fair treatment from organizations or supervisors on employee attitudes and behaviors. Thus, there is a dearth of research on the effects of fair treatment attributable to other parties that employees interact with at work such as coworkers and clients. Controlling for organization-focused and supervisor-focused justice, results from our field study of employees working in a healthcare organization demonstrate that perceptions of client-focused fairness uniquely predicts supervisor ratings of employees organizational citizenship behavior toward clients and that perceptions of workgroup-focused justice uniquely predicts organizational citizenship behavior toward workgroups. Further, we find that client-focused justice perceptions uniquely predict employee turnover intention.     

Effects of Psychological Contract Breach on Organizational Citizenship Behaviour: Insights from the Group Value Model

Research on psychological contract breach has referenced social exchange as its dominant theoretical foundation. In this study, we draw insights from the group value model as a theoretical extension to explain employees' negative responses to psychological contract breach. According to the group value model, fair treatment by group members communicates symbolic messages about the relationship between the organization and the employee, and has implications for whether employees can take pride in their organizational membership. When people are treated unfairly, they lose trust in the organization and dis‐identify from the group. This in turn results in less willingness on the part of the employees to engage in organizational citizenship behaviours (OCBs). We tested these relationships across three studies. In Study 1, we conducted a longitudinal test of the role of trust as a mediator between breach and organizational identification. In Studies 2 (cross‐sectional) and 3 (longitudinal), we tested the complete model in which we examined the role of trust and identification in mediating the link between breach and OCBs. All three studies provided support for the mediated model. Furthermore, as predicted by the group value model, the hypothesized relationships emerged in response to relational but not transactional contract breaches. Theoretical and applied implications are discussed.     

Empowering leadership: leading people to be present through affective organizational commitment?*

Abstract

This study tested a mediation model in which empowering leadership was negatively related to three withdrawal behaviors: lateness, absenteeism, and turnover intention, with affective organizational commitment as a mediator. With 294 full‐time US employees, results from structural equation modeling indicated that empowering leader behaviors at one time were positively related to estimates of affective organizational commitment at a second time, which in turn was negatively related to absenteeism and turnover intention at a final time. Additionally, no significant direct effect was found between empowering leadership and withdrawal behaviors, further supporting the mediation model. However, neither empowering leadership nor affective commitment influenced followers' lateness. Empowering leadership, which provides employees with autonomy and developmental support, may have a favorable effect on employees' decisions to attend and stay in the organization, as well as their affective reaction to the organization in the form of psychological commitment. This study extended prior research models by examining a full range of withdrawal behaviors in relation to empowering leadership and showed that commitment may explain why empowering leader behaviors can affect employees' retention decisions.     

Trust in the employer: the role of high-involvement work practices and procedural justice in European organizations

Despite the central role of trust in the organizational sciences, we know little about what makes people trust the organizations they work for. This paper examines the antecedents of employees' trust in their organizations drawing on survey data from over 600 European professional workers and managers. The results revealed direct as well as indirect relationships of both human resource (HR) practices and procedural justice with trust. The relationships of both HR practices and procedural justice with trust were partially mediated by perceptions of organizational trustworthiness (in terms of perceived ability and trustworthy intentions of the organization). Justice and HR practices were also found to interact such that justice forms a stronger predictor of trust in organizations when HR practices are less developed. In addition, employees' dispositional propensity to trust explained significant variance in employee trust in their organization, even when it was controlled in our analysis. The implications of these findings for research and practice are discussed.     

How Do Controls Impact Employee Trust in the Employer?

Do organizational controls facilitate or hinder employees’ trust in their organization? We addressed this question through a mixed‐methods design using three studies. Based on a literature review and an open‐response survey study (Study 1), we developed a theoretical model proposing that organizational control is positively related to employees’ trust in their organization, and that this relationship is mediated by procedural fairness and organizational prestige. This mediated model was tested and supported in a quantitative survey of 582 European managers and professional employees from a range of organizations (Study 2). A complementary, qualitative interview‐based study (Study 3) confirmed that well‐implemented controls facilitate trust in the organization; however, poorly implemented control systems that are inconsistent, overly rigid, or incentivize untrustworthy behavior can undermine trust in the organization. © 2015 Wiley Periodicals, Inc.     

Paternalist leadership style of the organizational trust

This study aims to evaluate the effect of paternalist administrators on the organizational trust of teachers working in their context. The notions of paternalist leadership style, trust, and organizational trust are explained based on literature. The study is based on qualitative research approach. Despite this, the short version of “Paternalist Leadership Scale”, developed by Cheng in 2004 and a short version prepared in 2014 is used initially. Administrators with paternalist leadership characteristic were established with the help of this scale. Later, open ended questions, developed by the authors, were asked to teachers in the schools as organizations of those administrators with the aim of establishing their “trust for the administrator and for the organization”. The sample of the research was made up of 30 teachers working at 5 primary schools of the North Cyprus Ministry of National Education during the 2016–2017 school year. It was observed in the findings that in the eyes of the teachers social characteristics of individuals were most important in creating and enhancing the feeling of trust. In addition, it was observed that personal characteristics were some of the defining factors in developing trust. The conclusion was reached that teachers working with paternalist administrators had positive communications with school administrators and colleagues, and that they carried out their relationships within the rules of good manners and kindness. Again, in the eyes of teachers, it was established that paternalist administrators were eager to renew themselves. Finally, paternalist administrators were found, with a high percentage, to be quite qualified in establishing organizational trust. In conclusion, based on the findings of this study, it can be said that administrators with paternal leadership qualities are qualified in creating organizational trust; therefore, it will be important to train administrators in developing their paternal leadership styles.     

Linking organizational social exchange to intention to leave: Does normative commitment matter?

Abstract

This study examines the effects of organizational social exchange on normative commitment and intention to leave the organization. We develop a moderated mediation model with normative commitment as a mediator in the relationship between organizational social exchange and the intention to leave, and individual-level power distance as a moderator of the indirect link between organizational social exchange and the intention to leave via normative commitment. We collected the data for our two-wave study from 176 employees of a bank in Macau. The results of hierarchical regressions and bootstrapping analyses largely support our hypotheses.     

The Role of Perceived Organizational Performance in Organizational Identification,Adjustment and Job Performance*

abstract Favourable organizational status and prestige has a substantial role in shaping constituents' attitudes and actions. The status and prestige of an organization is often a reflection of its achievements or performance. In the present study, we investigate the role of organizational performance or achievement (as assessed by organizational members) in evoking employees' identification, adjustment, and job performance. The results of this study indicate that two forms of organizational performance (labelled as perceived social responsibility and development and perceived market and financial performance) are associated with organizational identification. However, when compared to perceived market and financial performance, perceived social responsibility and development had a larger effect on organizational identification, which in turn resulted in enhanced employees' work outcomes – adjustment and job performance.     

The Effects Of Organizational Context And Teamworking Activities On Performance Outcomes

Abstract

This article seeks to evaluate the effects of organizational context and teamworking activities on the performance outcomes of public sector workers. Ability, Motivation and Opportunity (AMO) theory is used as the basis of this study in which it is predicted that employees' ability, motivation and opportunities to participate will affect organizational performance. Procter and Mueller's (2000) framework is used to identify relevant HR contextual features, namely discretionary rewards, appraisal, training and development, industrial relations and organizational culture. Data based on the 2003 Local Government Workplace Survey (N = 3,165) were used to test six research hypotheses and related sub-hypotheses. The findings show that individually, the effects of organizational context and teamworking activities were as hypothesized and consistent with AMO theory. However, the interaction effects were far less pronounced in that they were either non-significant or negative, with the exception of the interaction term teamworking X appraisal, which positively predicted organizational commitment. However, the teamworking X appraisal interaction also led to increased stress, something we consider to be a ‘sting in the tail’ for workers. Thus we argue that even though the interaction effects of teamworking and organizational context are minimal, the individual effects contribute to enhanced worker attitudes and perceived organizational performance.     

Examining transformational leadership,job satisfaction,organizational commitment and organizational trust in Turkish hospitals: public servants versus private sector employees

Leadership, job satisfaction, organizational commitment and trust have become important processes for healthcare management in recent years. One of the contemporary human resource management functions in the organizations involves engaging in leadership development, improving organizational trust and organizational commitment and increasing job satisfaction. Considering the rapidly changing healthcare technology and higher levels of occupational complexity, healthcare organizations are increasingly in need of engaging in leadership development in any given area of expertise to address ever-changing nature of the industry and the delivery of quality of care while remaining cost-effective and competitive. This paper investigates the perceptions of both public servants and private sector employees (outsourcing) on transformational leadership, organizational commitment, organizational trust and job satisfaction in Turkish healthcare industry. Additionally, the paper analyzes the predictability of organizational commitment based on employee – both public servants (physicians, nurses, administrative personnel and other healthcare professionals) and private sector employees (outsourcing) (auxiliary services such as administrative assistants, security personnel, kitchen, laundry and housekeeping employees) – perceptions of transformational leadership, job satisfaction and organizational trust. Using a survey instrument with items adopted from the transformational leadership inventory (TLI) [Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers' trust in leader, satisfaction, and organizational citizenship behaviors. Leadership Quarterly, 1, 107–142], the organizational commitment questionnaire [Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Thousand Oaks, CA: Sage], the organizational trust inventory (OTI) [Cummings, L. L., & Bromiley, P. (1996). The occupational trust inventory (OTI): Development and validation. In R. Kramer & T. Tyler (Eds.), Trust in organizations: Frontiers of Theory and Research (pp. 302–330). Thousand Oaks, CA: Sage] and job satisfaction survey (JSS) [Spector, P. E. (1985). Measurement of human service staff satisfaction: Development of the job satisfaction survey. American Journal of Community Psychology, 13, 693–731], this quantitative study was conducted among 2108 healthcare employees (public servants and private employees) in two large government hospitals in Turkey. The study findings indicate a significant difference between the public servants and private sector employees in terms of their perceptions on two dimensions of transformational leadership (being an appropriate model, providing individualized support), overall transformational leadership and one dimension of job satisfaction (communication). The two dimensions of job satisfaction – operating procedures and communication – as well as organizational trust were the significant predictors of organizational commitment of public servants, whereas the two dimensions of leadership – individualized support and fostering the acceptance – as well as the two dimensions of job satisfaction – promotion and contingent rewards – and organizational trust were the significant regressors of organizational commitment of private sector employees. In addition, there is a significant difference between the predictors of the dimensions of organizational commitment (transformational leadership, job satisfaction and organizational trust) in terms of public servants versus private sector employees. Finally, organizational trust has a significant effect on overall organizational commitment as well as its three dimensions for public servants and private employees.