Why do employees hold their vested stocks while they can sell them?

We proposed an integrated model of risk-balancing arguments and the emergence of psychological ownership to investigate employees' propensity of holding awarded stocks under a broad-based stock incentive plan. Analysis was conducted using a sample of 391 employees of a semiconductor foundry located in Taiwan. The results provided strong indication that psychological ownership motivation contribute to explain employees' willingness to hold vested stocks from broad-based stock plans. This study provide stimulating insight into the psychological mechanisms through which the individual's risk-aversion and wealth effects influence employees' intentions to hold vested stocks and further extends our understanding on how broad-based stock plans can develop an employees sense of ownership.     

The influence of individual characteristics,plan characteristics and work-related factors on salaried employees' attitudes towards profit sharing: a Canadian case

We examined the influence of individual and plan characteristics and work-related factors on salaried employees' attitudes towards profit sharing. Employees who were committed to their company, had a high work ethic, did not feel there should be a guaranteed minimum pay-out and who believed that there was a connection between exerting effort and their job performance as well as between their own performance and profit-sharing pay-outs had a more favourable attitude towards profit sharing in general. Employees who were committed to their company, had greater knowledge of their company's profit-sharing plan, preferred the cash bonus distribution scheme and believed there was a connection between their own performance and profit-sharing pay-outs had a more favourable attitude towards their company's profit-sharing plan. The results suggest that individual characteristics and work-related factors are as important to the successful implementation of a profit-sharing plan as the features of the plan itself.     

The impact of psychological ownership on employee retention in mergers and acquisitions

Research has demonstrated that turnover rates among employees and executives in the acquired firm are much higher during an M&A event. Recent empirical and review articles on M&A have also shown that employee retention/turnover can best be understood by looking at psychological attributes and perceptions of M&As, thus drawing significant attention to the psychological and ‘human’ side voids to theoretically exploit and enhance understanding of people-related problems in M&A endeavors. In this article, we develop a moderated mediation model and propose that acquired firm employees' psychological ownership is positively related to acquired firm employees' retention through the direct and mediating effects of employees' commitment and involvement in M&A. We also propose that the effect of acquired firm employees' psychological ownership on employees' commitment and involvement and, ultimately, acquired firm employees' retention is moderated by loss of acquired firm autonomy. We also discuss implications for theory and practice, as well as future research directions of such an employees' psychological ownership perspective on retention effects.     

Performance benefits of reward choice: a procedural justice perspective

Reward choice – employees' ability to exercise control over the formal rewards they receive from work – is an important part of many HRM strategies. Reward choice is expected to increase employee performance, but conflicting findings highlight the need to better understand how and when it will do so. Based on fairness heuristic theory, we predicted that procedural justice mediates reward choice's influence on performance, and that choice attractiveness moderates that influence. A field study and an experiment both had similar results, supporting our predictions. Reward choice can increase performance by as much as 40 per cent, but only when the available choices are attractive to employees.     

Why do employees keep choosing the high-premium health care plan? An investigation of the financial consequences and logic of employee health care plan selections

In 1991, Dannon employees had the choice to stay with their current health care plan or switch to a new plan which offered a lower premium and less hospital cost coverage that better fit the needs of most employees. Both plans were the same in all other respects. Only 25% of employees chose the new lower-premium plan over the old plan. This article reports a collaborative effort between The Dannon Company and Cornell University's Center for Advanced HR Studies to identify the patterns of employee choices, and the effects of those choices on the actual costs that employees incurred. The actual decisions of 287 Dannon employees were examined, and the out-of-pocket costs that they actually incurred in the two years after the plan was introduced were calculated. © 1996 by John Wiley & Sons, Inc.     

Empowered self‐development and continuous learning

Organizational changes are creating the need for continuous learning environments that support employees' self‐development. Self‐development means seeking and using feedback, setting development goals, engaging in developmental activities, and tracking progress on one's own. This assumes that people are capable not only of monitoring their own behaviors, but also of recognizing which behaviors and outcomes are most favorable and desirable. Drawing on self‐determination theory, this article shows how organizations can encourage self‐development by providing nonthreatening performance feedback, ensuring behavioral choices for learning, encouraging feedback seeking, and rewarding participation in learning activities and other self‐determined behavior. © 1999 John Wiley & Sons, Inc.     

Intercultural competence and expatriates

This study examines the simultaneous effects of employees' fit with their organization, job and supervisor on their job satisfaction, organizational commitment and turnover intention in Turkish banks by paying special attention to the moderating role of perceived organizational support (POS) in these relationships. Survey data collected from 213 employees who work in five different banks operating in Istanbul, Turkey, show that employees' value fit with their organization increases their job satisfaction and organizational commitment significantly while having no direct effect on their turnover intention. The results also suggest a positive association between employees' fit with their job (needs–supplies fit) and their job satisfaction along with the negative, direct impact of job fit on turnover intention. The hypothesized relationships between employees' value fit with their supervisor and selected employee outcomes are not supported. With respect to the moderating role of POS, the overall findings indicate that a high level of organizational support suppresses the effects of employees' value fit with their organization on their job satisfaction and organizational commitment as well as reducing the relationship between their job fit and job satisfaction and turnover intention.     

Leadership behaviors and human agency in the valley of despair: A meta-framework for organizational change implementation

For organizational leaders, implementing change in a workplace means influencing employees to do something new or behave differently. For employees, implementing a change at work requires detaching from familiar routines and social systems, learning and practicing the change, and imagining a future in which the change is valued by the organization. As they apply their agency to implement change, employees may experience loss, uncertainty, and frustration that manifests as despair, which can jeopardize the change process and its outcomes. We assemble a meta-theoretical framework using human agency theory, the Valley of Despair model of organizational change, and Full-Range Leadership Theory to explore ways that leaders' behaviors relate to employees' agentic orientations and behaviors during the implementation phase of the organizational change process. Taking both organizational change leaders' and employees' perspectives into account, the theory derived from our meta-framework argues that leaders' behaviors can shape employees' agency and their behaviors during the implementation stage of change in two important ways: 1) certain leader behaviors are likely to prime agentic orientations that facilitate changing, and 2) certain leader behaviors may help to mitigate employees' despair, enabling the firm to derive value from employees' change implementation behaviors.     

Managerial telework allowance decisions – a vignette study among German managers

Managers play an important role in the implementation of telework in organizations since they frequently have final approval over employees' requests for telework arrangements. Drawing upon March's (1994) dual-logic theory of decision making, the study examines antecedents of managers' responses to employees' requests for telework. Using a vignette study with a balanced experimental design, we investigated the impact of person-related, task-related and organizational context factors on managerial telework allowance decisions in German organizations. Several person- and task-related factors were found to be significantly related to managers' telework allowance decisions. Organizational context factors, such as a family-supportive organizational culture and formal policies were found to either directly or indirectly influence managers' responses to employees' requests for telework. More specifically, formal telework policies were important in stimulating favorable managerial telework allowance decisions when applicant criticality was low and the organizational culture was family-unsupportive. In line with March's (1994) theory of decision making, the study shows that utility maximization is only one perspective of decision making which managers apply to telework allowance decisions. Rule following and considerations of appropriateness are also taken into account by managers when deciding upon employees' telework requests.     

Exploring the factors associated with employees' perceived appraisal accuracy: a study of Chinese state-owned enterprises

Western employment practices have increasingly been used in emerging markets, but little is known about the factors influencing non-Western employees' views regarding Western employment practices. This paper presents a study that investigates the factors associated with Chinese employees' perceived appraisal accuracy. Based on the extant literature, the study tests six aspects of a performance appraisal (PA) system: employees' perceptions of distributive justice, procedural justice, interactional justice, administrative purpose, developmental purpose and the use of multiple raters. A mixed methods approach was used to collect the data; quantitative data collected from a survey were used to test the hypothesized relationships and qualitative data collected from interviews were used to help explain the underlying logic behind the relationships. The results of the hypotheses testing show that employees' perceived accuracy of PA is positively associated with the three types of justice and the two purposes of PA. The findings from the interviews indicate that employees' perceptions of appraisal accuracy are influenced by certain Chinese cultural characteristics and management traditions. The implications of the findings for research and practice are discussed.     

The ‘country-of-origin effect’ in employee turnover intention: evidence from China

The increasing presence of foreign direct investment in China has boosted the competition for talent among different multinational corporations (MNCs) from diverse national backgrounds. This article investigates the differences in the human resource management (HRM) approaches adopted by the US, European, and Japanese MNC subsidiaries operating in China and explores the relationships between employees' perceptions toward the HRM approaches and turnover intention. Significant differences in the HRM approaches and employees' level of turnover intention were found, indicating a ‘country-of-origin effect’ in HRM approaches that subsequently influences employees' attitudes. In addition, this article produces evidence suggesting that the perception of HRM characteristics predicts employees' intentions to quit. Implications for HRM convergence or divergence debate are discussed.     

Happy together,or not? Balanced perceived investment in standard and nonstandard employees

This study investigated whether the relationship between temporary employees' perceived investment in employee development and work outcomes was moderated by temporary employees' perceived investment in standard employee development (PISED). A study among 2022 Norwegian temporary employees showed that the relationship between perceived investment in temporary employee development and in-role and contextual performance was moderated by the temporary employees' PISED. These results suggest that client organizations that invest more in standard employee development will get the most of their investments in temporary employee development. Implications for practice and future research are discussed.     

Using the Harvard HRM model to conceptualise the impact of changes to supervision upon HRM outcomes for different types of Australian public sector employees

Within the Australian context of a shortage of skilled professionals, this article uses the Harvard model of human resources management (HRM) to conceptualise how changes in stakeholder interests coupled with changes to situational factors affect public sector HRM policy choices that in turn affect HRM outcomes for different types of public sector employees. The findings obtained using path analysis suggest that the proposed model explained almost 50% for nurses and less than 14% for police officers. In the case of nurses, the strong significant relationship between HRM inputs and outputs may provide a further plausible explanation for one of the long-term consequences of new public management – namely, the inability to retain skilled employees (especially those in the health sector) across numerous OECD countries. The implication of these findings is that the present public sector HRM policy choice should be re-examined because of its impact on HRM outcomes. Moreover, public sector employees should not be regarded as one uniform group that responds alike to the same policy. Whilst the merits of pursuing a strong auditing focus may have benefited organisations financially, the benefits can only remain if public sector employees, including professionals, are prepared to work under those conditions. The inability to retain nurses in numerous countries, coupled with past studies that have identified (poor) management as a contributing factor, suggests that past HRM policy choices may have to be replaced by new HRM policy choices that focus on employees' perceptions of well-being. However, more studies using different types of professionals are required to confirm the generalisability of these findings.     

Employees' Nonwork Obligations and Organizational Commitments: A New Way to Look at the Relationships

The authors 1 adopted a family resource view of nonwork obligations and examined these obligations' relationships to dimensions of employees' organizational commitment. Complex interactions were found between employees' marital status, number of children, and having relatives nearby as related to the continuance dimension, but not the affective dimension, of commitment. In particular, results were strongest when the focus was on employees' perceptions of whether they would experience a high personal sacrifice if they were to leave their organizations. These findings are discussed in the context of developing family‐friendly human resource programs that may help employees feel less “trapped” in organizations. © 2001 John Wiley & Sons, Inc.     

Perceived human resource system strength and employee reactions toward change: Revisiting human resource's remit as change agent

Although scholars have highlighted human resource's (HR's) important role as a change agent, we know little about the extent to which HR influences the change context to foster positive employee responses and support organizational changes. This study positions perceived HR system strength as an important internal context factor that influences employees' reactions toward change. Drawing on emotion theory and social exchange theory, we analyze the mechanisms through which employees' perceptions of HR system strength lead to positive employee responses to organizational change. Data from 704 employees in a UK police force showed that employees' perceptions of HR system strength were positively related to their ability to cope with organizational change and that this relationship was simultaneously mediated by state positive affect and perceived organizational support. Moreover, our findings demonstrated that coping with organizational change was positively related to employees' change‐supportive behavior. This study is important because it broadens the remit of HR's role as change agent and provides valuable insight into how HR positively influences employee outcomes during organizational change.     

Rediscovering the “Human” in strategic human capital

While the field of strategic human capital (SHC) was created as a platform for dialogue between economics-based strategy researchers and psychology-based human resources (HR) researchers, it has increasingly become dominated by the economics-based logic. This paper argues that while such logic is not wrong, it is incomplete. By ignoring aspects of human nature such as free will, identity, meaning/purpose, community, and intrinsic value, it has unnecessarily limited the phenomenon to be studied and the research questions to be asked. I describe these concepts and how they might expand the SHC literature's view of determinants of employees' behavior, particularly their choices to invest in human capital. Finally, I discuss implications for research questions that might bridge the economics and psychology perspectives.     

How do industrial relations climate and union instrumentality enhance employee performance? The mediating effects of perceived job security and trust in management

In this study, we examine the effects of two key variables associated with union effectiveness on the job performance of employees, and the mechanisms that explain such effects. More specifically, we investigate whether employees' perceptions that their union has a constructive relationship with management (industrial relations climate) and is able to act as an agent for their concerns (union instrumentality) promotes their job performance by enhancing their perceived job security and trust in management. Drawing on three waves of data from 303 employees and their immediate supervisors within 17 private enterprises in China, we find employees' perceptions of union effectiveness influence their job performance by enhancing both their perceived job security and trust in management. These findings are consistent with social exchange theory and conservation of resources theory. This article contributes to the literature by improving our understanding of how unions influence employees' work performance and by explaining how employees' perceptions of the industrial relations climate and union instrumentality influence their job performance. It also sheds light on the important issue of the effectiveness of unions in China, a country where the centrality of the Chinese Communist Party is often considered to have reduced the instrumentality of unions.     

Employees' attitudes toward organizational change: A literature review

Organizations are increasingly required to improve their ability to enhance employees' support or acceptance for change initiatives. In studies that have examined the conditions in which employees support organizational change, researchers have focused on various attitudinal constructs that represent employees' attitudes toward organizational change. The constructs, which frequently serve as key variables in these studies, include readiness for change, commitment to change, openness to change, and cynicism about organizational change. These constructs have distinct meanings and emphases and therefore they can provide us with different information regarding employees' evaluation of and concerns about particular change initiatives. In this literature review, the author discusses how the constructs are defined in the organizational change literature and synthesizes the antecedents of each construct. Based on the discussion, it is proposed that the constructs are susceptible to situational variables, and may change over time as individuals' experiences change; therefore, they are better conceptualized as states than as personality traits. ©2011 Wiley Periodicals, Inc.     

Managing the Intangible Aspects of a Project: The Affect of Vision,Artifacts, and Leader Values on Project Spirit and Success in Technology‐Driven Projects

Successful projects are often characterized by a unique spirit. Phase one results, based on 193 employees partaking in 60 projects across organizations, support a model positing that leader building activities affect employees' emotions, attitudes, and behavioral norms that are focused on expected project outcomes, termed project spirit. Spirit affects employees' contextual performance behavior, which in turn affects success as proposed. Phase two cases, designed to ground these results in technology‐driven project contexts, highlight the value of managing the project's intangible aspects captured by spirit. Quantitative and qualitative findings imply that leaders can be coached to execute behaviors that generate a project's spirit, which boosts contextual performance behavior and increases project success.     

Extrinsic motivation as a determinant of knowledge exchange in sales teams: A social network approach

This paper investigates extrinsic motivation as a determinant of knowledge exchange among employees in sales teams. Applying a social network approach, we study different forms of knowledge-exchange behaviors from the perspective of a focal employee and from the perspective of the dyad. From the focal employees' perspective, we disentangle knowledge seeking from knowledge providing, and argue that these two behaviors are affected differently by employees' extrinsic motivation. From the dyad perspective, we take similarity in motivation of tied-to employees and reciprocity of exchange ties into account. To test our hypotheses, we apply exponential random graph models to data gathered from 138 employees in five different sales teams distributed across three companies in Central Europe. The results of our analysis from the focal employees' perspective show that extrinsically motivated employees generally engage in less knowledge exchange. The dyad perspective further highlights that sales employees proceed purposefully when they exchange knowledge with coworkers. For instance, two employees' relative levels of extrinsic motivation determine their willingness to engage in reciprocal knowledge exchange. We discuss the implications of our findings for research on the microfoundations of organizational knowledge management and draw conclusions concerning HRM practices used to foster extrinsic motivation, thereby affecting knowledge exchange.