Managerial third party dispute resolution: An overview and introduction to the special issue

In this article I review each of the five articles included in the special issue on managerial third party dispute resolution. This review is followed by a brief listing of the goals for this special issue and three suggestions for future research. These suggestions include the need for more focus on the nonunion sector, a call for interdisciplinary research, and a plea for research concentrating on managerial third party dispute resolution in other cultures.     

An investigation of managerial interventions in employee disputes

Seventy four university managers described up to six recent conflicts and reported on their intervention strategies. Findings show that managers use a range of strategies, including overlooking, as interventions for employees’ disputes, instead of favoring the use of any particular one. Choices of intervention strategies were influenced by the type of issue being disputed, the seriousness of the dispute, and managers’ self-efficacy with mediation. Specifically, managers most frequently used mediation to resolve task-related disputes, and tended to use a variety of different strategies to intervene in personality conflicts. When managers perceived conflicts to be highly serious, they most frequently used mediation, followed by arbitration, offering incentives, and lastly, overlooking. Managers with a high degree of mediation self-efficacy more frequently mediated employees’ disputes, whereas managers with a low degree of mediation self-efficacy more frequently overlooked employees’ disputes. Theoretical and practical implications of these findings are discussed.     

Beyond third party role: Disputes and managerial intervention

This article reviews the research findings on managerial third party intervention and the factors that affect role choice. It explores the implications of research findings and advocates using a political approach to investigate the ways that managers enter into disputes, both directly and indirectly, and through such roles as conflict orchestrators. It calls for reexamining the assumptions that underlie this research and for focusing on the process of defining conflicts, uncovering coalitions and networks of relationships, and linking third party intervention to the ideology that underlies organizational disputes.     

Promoting research access and informant rapport in corporate settings: Notes from research on a crisis company

Obtaining evidence on managerial action is inevitably difficult. Although it has been suggested that critical events such as corporate crises provide opportunities for research, there has been a lack of discussion on what aspects of management such conditions help to illuminate and how they could be exploited in obtaining both formal access and rapport with individual informants. Based on fieldwork experience this paper suggests that corporations in crisis should be taken seriously in research on managerial action because they may both facilitate access and liberate and motivate individual managers to reflect on both their own acts and intentions and on those of other individuals.     

Inside the mediation room - efficiency,voice and equity in workplace mediation

Existing research into workplace mediation in the UK has tended to focus on managerial perceptions. Consequently, there has been a unitarist emphasis on the business case for mediation, revolving around its alleged superior efficiency properties compared to conventional rights-based procedures. This paper develops the research agenda in two respects: first, it foregrounds the experiences of participants in mediation through 25 interviews with individuals drawn from a variety of contexts. Second, it extends the analysis beyond the efficiency of mediation to consider issues of voice and equity. In doing so it explores the role played by mediation within the negotiation and re-negotiation of workplace relations and also the way in which it shapes, and is shaped by, power and control. In the cases examined in the paper, mediation not only facilitated employee voice, but allowed subordinates to challenge the authority of supervisors and line managers. However, the influence of mediation on the balance of workplace power relations outside the mediation room was much more limited.     

Managerial style and the strategic choice of executive incentives

This paper analyzes a two-stage duopoly model where owners provide incentives to managers who then select output levels. Unlike the previous Cournot models on the strategic use of incentives (e.g. Fershtman and Judd, 1987; Sklivas, 1987), managers hold different beliefs about their rivals. Managers and executives are classified by ‘management style’ based on the aggressiveness of their beliefs. It is shown that many of the standard results of the strategic managerial incentive literature no longer hold when executives have differing managerial styles. For example, owners may ‘penalize’ their managers for sales, or they may optimally instruct their managers to maximize profits, in contrast to the standard Cournot findings. Indeed, the model yields a necessary and sufficient condition for compensation contracts to specify pure profit-maximizing behavior when managers have differing managerial styles. Thus, the analysis suggests that when ownership and control are separated, owners must carefully assess the belief structure (management style) of their executives before designing the compensation package.     

The Contingent Effects of Social Network Sparseness and Centrality on Managerial Innovativeness

Prior research has highlighted that network sparseness and network centrality enhance innovativeness through access to information and influence, respectively. We advance this perspective by exploring the extent to which individual actions are needed to mobilize information and influence accessed through social networks, and whether such information and influence would mutually reinforce to enhance managerial innovativeness. Our findings found partial support for the idea that actions are needed to actualize potential resources embedded in social networks, as centrally positioned managers enjoy higher innovativeness when they engage in ambassador activities. We also found that advice network sparseness and advice network centrality had independent, not interactive relationships with managerial innovativeness, suggesting that they offer distinct routes to achieving managerial innovativeness. Overall, our research clarifies the relationships of two important social network attributes on managerial innovativeness, and also sheds new light on how managerial action matters in realizing social network advantages for innovative ends.     

Bank monitoring,managerial ownership and Tobin's Q: an empirical analysis for India

The paper examines how banking relationships and managerial ownership relate to firm valuation. It is argued that both the number of banking relationships (which serves as an external monitoring function) and managerial ownership (which serves as an internal monitoring function) affect firm value, while internal monitoring by managers and external monitoring by banks were viewed as substitutes or complements. After controlling for the effect of exogenous variables, the results reveal the existence of a complementary monitoring effect between banks and the managerial group. On the other hand, the results indicate that increased external monitoring by banks will simultaneously raise the incentive on the part of managers to engage in internal monitoring. Also, firm valuation is found to be a significant determinant of managerial ownership. A disaggregated analysis of firms according to size and leverage suggests the existence of a complementary monitoring effect between banks and managers, except for small‐sized firms. Copyright © 2007 John Wiley & Sons, Ltd.     

THE REMUNERATION OF NON-OWNER MANAGERS IN SMALL AND MEDIUM-SIZED UK ENTERPRISES

Virtually all prior research on small and medium sized enterprise (SME) management has focused on owner managers. This article, however, empirically examines the determinants of managerial remuneration for a sample of 97 UK SME non-owning managerial employees. the empirical analysis, based upon data obtained from interviews with middle (i.e. non-director level) managers and the published financial records of their employing firms lodged at Companies House, first examines the influence of firm size and performance and then augments the empirical model to include pay composition, industrial sector, external labour market and human capital variables. The empirical results indicate that the average profitability of the employing firms is not a significant determinant of managerial remuneration. However, composition of pay appears to have a significant effect upon total remuneration since, even after controlling for other influences, managers in receipt of annual bonuses and/or profit-sharing bonuses are estimated to earn an additional £6,600. the managers’age and qualifications, and the asset size, industry and location of their employing firms are also significant factors and collectively are able to explain a large proportion of the cross-sectional variance in remuneration. Though there is a lack of previous empirical research on SME managerial pay.     

The Relationship between Organizational Culture and Energy Performance: A Municipal Energy Manager Level Study

For energy managers, finding personal meaning in the activities they are engaged in and gaining an identity in connection between energy efficiency and organizational goals is a necessary condition to mobilize passion and commitment, which in turn are fundamental to achieve organizational goals under tight budget constraints. Despite this, little is known about how municipalities, which are typical budget‐constrained organizations, can enhance the empowerment of employees with roles as energy managers. This paper draws from the literature on the person–organization fit in order to adapt and test the hypothesis that multiple dimensions of organizational culture are strong predictors of perceived managerial and technical energy performance. Data from 729 questionnaire responses from energy managers of Italian municipalities show that formalization, team orientation, innovation, centralization and reward systems are the key elements that enable energy managers to act as business partners instead of task managers. Causal relations are discussed and presented along with theoretical and policy implications that can provide inspiration also to private organizations. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

An Empirical Exploration of Decision-making Under Agency Controls and Stewardship Structure

abstract Two theories have emerged in the managerial control literature as to the best way for organizations to ensure that managers are acting in the firm's best interest: agency theory, which stresses controlling decision‐makers through monitoring and incentives aligned with organizational goals, and stewardship theory, which stresses that decision‐makers will act in the organization's best interest even in the absence of controls. Much of the research investigating the utility of these two positions is based on archival data where actual decision‐making can only be inferred. In this study, we utilize a laboratory methodology in order to determine if decision‐makers actually make different decisions when under the types of control (or lack thereof) suggested in these two theories. The results of this study show that individuals under agency controls invest more in alternatives that maximize profits of an organization than individuals under stewardship controls.     

The transformational management of conflict: A perspective from the early Christian church

An understanding of transformational leadership has been developed for many spheres of management, but not previously for organizational conflict. This paper analyzes a successful conflict mediation attempt in the early Christian church and draws from it elements of a model of the transformational management of conflict that can be applied by managers in many contemporary work organizations. The elements include (a) reframing the conflict, (b) a focus on a shared organizational vision, (c) the placement of responsibility for dispute resolution in the hands of organizational members directly and indirectly involved in conflict, and (d) the use of communication devices consistent with the desired outcome. The paper suggests skills necessary for managers to implement the model and implications for research on it.     

Managers as informal third parties: The impact of supervisor-subordinate relationships on interventions

This research focuses on the distinctions between formal and informal third parties articulated by Kolb and Sheppard (1985), the most important of which is the relationship that exists between the third party and the disputants. Several hypotheses are advanced regarding the consequences of a sudden change in the relationship on the process and outcomes of the intervention. An experimental simulation of a supervisor-subordinate discussion (about a dispute among subordinates) is conducted with 62 undergraduate volunteers as participants. The supervisors in the experimental group receive negative affective information about the subordinate prior to the meeting, which is expected to influence the relationship and hence the intervention. Results indicate that in the experimental condition performance evaluations were lower, ratings of trust were lower, and the atmosphere in the discussion was rated as less friendly. Interestingly, in dyads where the negative information was discussed openly each of the ratings was higher than when the negative information was not discussed, as was the satisfaction reported by each of the participants. The implications of these findings for future research are discussed.     

The perceived importance of HR duties to Danish line managers

Today, HR scholars widely acknowledge that realising HRM requires the involvement of all managers and that the personal motivation of line managers plays an important role in their successful involvement. Yet, previous research has neglected to study how line managers rate the importance of particular HR duties and how the importance assigned to HR duties varies across managers. Based on a survey of 1,500 Danish managers, we find that ‘motivating others’ is considered the most important HR duty whereas ‘team building’, ‘handling conflicts’ and ‘coaching’ are considered the least important HR duties. Female top managers in the public sector exhibit the greatest interest in HR whereas men at lower managerial levels in the private sector give lowest priority to HR work. We conclude with possible explanations for the observed differences in a Danish context and beyond and provide suggestions for facilitating managerial involvement in HRM. In doing so we are well aware that the Scandinavian model of HRM in general and the Danish implementation in particular may represent a unique frame for the results.     

Strategic Global Human Resource Management: The Role of Inpatriate Managers

The need for highly qualified multicultural managers will increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized. At the same time, relational view of human capital provides insight into the value of managers who have unique local market knowledge (i.e., social knowledge). By integrating the two aspects of the resource-based view, one can develop a dynamic capabilities approach to staffing global assignments. Within this integrative theoretical perspective, inpatriate managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations. It is envisioned that through this unique building of managerial talents, organizations can develop/maintain a distinct competitive advantage in the markets they enter. This article explores inpatriation as an innovative means to develop managers as strategic resources to be used in formulating and implementing a global strategic plan.     

Changing legitimate discourse: a case study

This study is concerned with the explanations that managers give to various company stakeholders, in the case of factory closures for example. More generally, the paper examines the way justifications of managerial action are produced and “consumed”, and how the “legitimacy” on which they are based can change over time. With the help of a longitudinal case study the paper describes and seeks to explain the legitimisation processes involved in the major organisational transformations that the case firm has had to face due to radical market changes (joining EU) and organisational changes. It is argued that managers may become prisoners of their context. This may mean that even if they made “correct” decisions, they may still justify these actions “incorrectly” relative to the new cultural and market environment, and thus do not acquire legitimacy. In the reported case almost the whole executive board of the firm was fired—the first time such a thing had happened in the history of Finnish corporate life. It is also shown that the justification of managerial action may be deliberately manipulated in public discourse. One powerful legitimative device in such discourse is to invoke financial distress, or the idea of such distress, which may be needed for triggering genuine changes.     

Not part of the family? The limits to managing the corporate way in international hotel chains

Companies increasingly seek solutions to the corporate/local dichotomies perceived to be a feature of more traditional approaches to managing across national boundaries. At the human resource level, the rhetoric of transnationalism emphasizes integration being achieved through 'soft' mechanisms, such as corporate culture devices, which encourage all managers to develop an international (for this read corporate) perspective on what they do. In theory, managerial staff are recruited and promoted on a 'best person for the job' basis and national identities are played down. Drawing upon evidence from three international hotel chains (one American, one French and one Swedish), this paper argues that there is a disjuncture between corporate culture devices which assume that they can transcend national origins and the issues of interest and identity which inform the activities and experiences of managers at unit level. The paper suggests that companies need to be aware of the danger of assuming that one can be trained to be 'one of the family'. Rather, we argue that local managers are potentially disadvantaged in terms of career progression as managers from the parent country utilize criteria of acceptability informed by processes of socialization which are more institutionally embedded and derived than has been assumed.     

Deriving benefits from conflict resolution: A macrojustice assessment

Effective conflict resolution procedures serve to minimize dysfunctional effects of conflict and maximize functional effects. In the literature on conflict resolution procedures, the effectiveness of procedures has been evaluated primarily from the perspective of the individual. This article suggests that a system-level analysis of the pattern of outcomes resulting from different conflict resolution procedures is a necessary component in formulating a comprehensive framework for the design and evaluation of conflict resolution systems in organizations. The analytic questions addressed by this study concern associations between resolution procedures and outcome patterns in a system created specifically for conflict resolution within organizations: the grievance system. The pattern of outcomes was found to vary with the conflict resolution procedure. It is suggested that this has important implications for effective conflict resolution systems.     

Creating Value with Wastes: A Model and Typology of Sustainability Within Firms

The objective of this paper is to construct a model and propose a typology of residual material reclamation practices in manufacturing facilities. The qualitative study based on in‐depth interviews with 60 managers demonstrated that residual material reclamation can be characterized by six key dimensions associated with the recovery and transformation of residuals: reclaiming goals, reclaiming scope, awareness of activities, manufacturing processes, environmental management and variety of materials used. The analysis of each dimension from a managerial point of view suggests five types of residual material reclamation: craft, broad consolidated, narrow consolidated, broad leverage and narrow leverage. The model and typology expand our understanding of residual material reclamation activities within organizations actively involved in sustainable initiatives. This study contributes to proposing an analytical framework aimed at understanding how practices concerning residual material reclamation are managed. Implications for organizational research and management are also discussed. Copyright © 2011 John Wiley & Sons, Ltd and ERP Environment.     

Multisource Ratings Of Managerial Competencies And Their Predictive Value For Managerial And Organizational Effectiveness

This study examined the predictive value of multisource ratings of managerial competencies for managerial and organizational effectiveness. Data from 155 subordinates, 59 peers, and 28 supervisors were gathered in order to provide insight into their perceptions on managerial competencies for their managers. With regard to the outcome variable (i.e., effectiveness), both individual‐level (subordinates’, peers’, and supervisors’ ratings of managers) and organizational‐level (Balanced Scorecard) measures were used. As expected, subordinates, peers, and supervisors have distinct perspectives on the managerial competencies that are relevant for effectiveness. Moreover, the specific managerial competencies differ in terms of their predictive validity respectively for managerial and organizational effectiveness. The outcomes of our study suggest that a multisource and multimethod approach is valuable in assessing both managerial competencies and managerial and organizational effectiveness. Several implications for human resource management practices are discussed. © 2014 Wiley Periodicals, Inc.