Using profit sharing to enhance employee attitudes: A longitudinal examination of the effects on trust and commitment

The ability of profit sharing to increase organizational performance via positive changes in employee attitudes has yielded mixed results. Drawing on principal agent, expectancy, and organizational justice theories, we assess how perceptions of profit sharing (capacity for individual contribution and organizational reciprocity) alter organizational commitment and trust in management using longitudinal data provided by 141 engineering employees. Favorable perceptions of profit sharing served to increase organizational commitment while only organizational reciprocity predicted trust in management. The relationship between organizational reciprocity and commitment was partially mediated by trust in management. Implications for the design of profit sharing initiatives are noted. © 2002 Wiley Periodicals, Inc.     

Trust me,I'm your boss: Trust and power in supervisor–supervisee communication

This study examined employees' perceptions of trust, power and mentoring in manager–employee relationships in a variety of sectors, including health care, education, hospitality and retail. The main theoretical frameworks used were communication accommodation theory and social identity theory, in examining the manager–employee relationships from an in-group/out-group perspective. Computer-aided content analyses revealed a number of emergent communication and relationship themes that impact upon the level of ‘in-groupness’ and therefore trust in supervisor–supervisee relationships. While it may be illusory to believe that any organization can enjoy complete trust among its workforce, it is clear that certain communication characteristics can result in greater trust in manager–employee relationships, even within the context of organizational constraints. It is argued that the results of the study could be used to inform human resource management academics of key aspects of managerial communication that should be further researched, and also provide insights into the main communication skills that managers should focus upon to improve trust in the workplace.     

Relationships between organizational justice,organizational trust and organizational commitment: a cross-cultural study of China,South Korea and Australia

In an increasingly globalized world, organizations that operate in more than one country are a substantial part of the world economy. It is therefore beneficial to understand the attitudes of employees in different countries and their impact on the organization. One important area is organizational justice and its relationships with organizational trust (OT) and organizational commitment. This empirical study collected survey data from university employees across China, South Korea and Australia. We proposed that OT would mediate the relationships between affective organizational commitment (AOC) and both distributive justice (DJ) and procedural justice (PJ) in all three countries. In Australia, we found that PJ and AOC were significantly related, and OT fully mediated the PJ-AOC relationship. In China and South Korea, both DJ and PJ were significantly related to AOC, and OT fully mediated the PJ-AOC relationship. OT partially mediated the DJ-AOC relationship in China but fully mediated this relationship in South Korea. Implications for theory and for management practitioners are discussed, and areas for future investigation are identified.     

Five Steps to Leading Your Team in the Virtual COVID-19 Workplace

The emergence of COVID-19 has presented employees and employers new challenges as many employees and managers were forced to work in a remote environment for the first time. For many reasons, managing virtual teams is different than managing employees in a traditional face-to-face office environment. Although many managers have been learning how to lead their virtual teams over the last several months, we offer five steps for leaders to follow for how to maximize the effectiveness of a remote workplace. By taking specific actions and ensuring the organization has a culture to support their virtual workforce, leaders can improve the performance output and engagement of their teams. The five steps are: first establish and explain the new reality; second, establish and maintain a culture of trust; third, upgrade leadership communication tools and techniques to better inform virtual employees; fourth, encourage shared leadership among team members; and fifth, to create and periodically perform alignment audits to ensure virtual employees are aligned with the organization’s cultural values including its commitment to mission. All these steps start with the realization that managing a team is going to be different when the members are dispersed, and new leadership strategies, communication routines and tools are required.     

The relationship between ‘high-performance work practices’ and employee attitudes: an investigation of additive and interaction effects

In order to improve our understanding of mediating variables inside the ‘black box’ of the firm's labour management, this paper examines the relationship between high-performance work system (HPWS) practices and employee attitudes. Using a randomly selected, national population sample, clear evidence was found for a positive relationship between HPWS practices and the attitudinal variables of job satisfaction, trust in management, and organizational commitment, implying that HPWS can provide win-win outcomes for employees and employers. However, the study also tests – from an employee perspective – the ‘complementarities thesis’ and finds negative interaction effects among HPWS practices. This strengthens the argument that there are likely to be limits to the positive outcomes of HPWSs for employees. Evidence of sequencing in the employee attitudinal responses to HPWSs was also found, with job satisfaction as the key mediating variable.     

The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment

This study investigates the relationships among administrative performance appraisal (PA) practices, perception of organizational justice and organizational commitment. The results obtained from 395 employees who work in manufacturing companies in Taiwan show that the implementation of administrative PA activities is highly associated with employee perception of organizational justice and that the level of perceived organizational justice is highly associated with the level of organizational commitment. The results also demonstrate that perceived organizational justice has a partial mediating effect on the relationship between administrative PA practices and organizational commitment. Theoretical and practical implications of these results are discussed.     

团队中“投桃报李”的交换关系如何影响员工创新?——职场精神力与集体主义倾向的作用

创新是企业乃至国家兴旺发达的不竭动力,团队成员作为组织中员工交互最为频繁的社会交换关系,对员工创新极大产生影响。基于社会认同理论,构建一个有调节的中介模型,探究团队成员交换对员工创新行为的作用机制。运用SPSS 23.0和Amos 22.0对412份问卷进行分析,研究发现,团队成员交换以职场精神力为部分中介正向影响了员工创新行为,其中,集体主义倾向在上述关系中起到了调节作用,即员工集体主义倾向越高,团队成员交换对职场精神力的影响越大,从而对创新行为影响越大。研究结论在理论与实践上为组织创新管理和团队管理提供了重要的启示。     

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.     

Enhancing firm performance through internal market orientation and employee organizational commitment

Considering the importance of retaining key staff and managing the negative impact of high labor turnover on firm performance, this study investigates the notion of internal market orientation (IMO) as an employee management tool for helping companies retain employees and leverage performance via their organizational commitment. Drawing on data from three different managerial respondents in 275 companies based in China, the findings demonstrate the precedential effect of IMO on corporate performance through employees’ organizational commitment and retention. Interdepartmental relationship and interdepartmental communication, together with ownership types are identified as potential moderating variables, which may vary IMO’s effectiveness in the framework. This study provides scholars and practitioners with empirical evidence of IMO’s contribution to different industries and markets. Building on a western perspective, this study extends the literature in an emerging market context and specifically has implications for managing Chinese employees.     

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.     

Electronic monitoring in public organizations: evidence from US local governments

Technology use in the workplace expands the ability to monitor employees through activities such as website tracking, email scanning, and social media monitoring. Monitoring is a fundamental aspect of the relationship between organizations, employees, and stakeholders and can affect perceptions of privacy, autonomy, and trust in the workplace. However, electronic monitoring is little investigated in public management research and we have minimal knowledge about the factors that prompt public managers to adopt electronic monitoring. Focusing on small- and medium-sized US municipalities, we investigate types of electronic monitoring and how organizational, sociopolitical, and technological factors shape electronic monitoring intensity. We test our hypotheses with data from a 2014 national survey of 2,500 local managers, website coding data, and US Census data. We find that electronic monitoring, especially monitoring online activities, is a response to organizational centralization, participation of internal stakeholders, social media use, and technology concerns.     

物流企业员工关系管理策略对组织承诺的影响研究

运用员工关系管理和组织行为学的理论,在大量问卷调查的基础上,通过对我国物流企业员工关系管理策略与员工组织承诺之间关系的实证研究,揭示了不同员工个人特征对企业员工关系管理策略的认知和组织承诺的影响,更重要的是揭示了物流企业不同的员工关系管理策略对组织承诺有着显著影响。研究结果对企业员工关系管理策略的调整与改善有一定的借鉴意义。     

The moderating effect of leadership on perceived organizational justice and affective commitment: a study in China

While western literature proves the importance of procedural justice, interactional justice is found to have a greater impact on employees in China. This study investigates the effect of employees’ perceptions of organizational justice on affective commitment, and the moderating effect of leadership style in the relationship. The authors proposed that the positive association of interactional justice with affective commitment is stronger than the positive association of procedural and distributive justices with affective commitment. In addition, the authors hypothesized that leadership style in teams moderates the relationship between interactional justice and affective commitment. Data were collected from 10 companies in Shenzhen, Shanghai, Beijing, Wenzhou, Wuhan, and Qingdao, China. The results support the hypotheses stating that interactional justice has a robust impact on affective commitment and that leadership in teams moderates the relationship. These findings have important implications for human resource management. When setting up HR policy in China, putting the right HR procedures in place is essential. Employees’ affective commitment relies heavily on interactional justice and whether or not employees perceive that they are being treated fairly by their managers. We discuss the implications of these findings.     

An Exploration of How the Employee–Organization Relationship Affects the Linkage Between Perception of Developmental Human Resource Practices and Employee Outcomes*

abstract The purpose of the present study was to examine whether and how the quality of the employee–organization relationship (EOR) influences the relationship between employee perception of developmental human resource (HR) practices and employee outcomes. Analyses of 593 employees representing 64 local savings banks in Norway showed that four indicators of the EOR (perceived organizational support, affective organizational commitment, and procedural and interactional justice) moderated the relationship between perception of developmental HR practices and individual work performance. A strong and direct negative relationship was found between perception of developmental HR practices and turnover intention, but perceived procedural and interactional justice moderated this linkage. No support was found for a mediating role of the EOR indicators in the relationship between perception of developmental HR practices and employee outcomes. Implications and directions for future research are discussed.     

Causes and consequences of psychological contracts among knowledge workers in the high technology and financial services industries

As organizations shift the central focus of their competitive strategy away from value appropriation towards value creation it is to knowledge workers that they will look to provide the innovation to fuel their continued development. The state of the relationship between the knowledge worker and the employer - the psychological contract - will determine whether this source of innovation and creativity is released. In this study, we developed and tested a causal model of the causes and consequences of psychological contract. Over four hundred participants who were knowledge employees drawn from eleven leading edge companies in the high-technology software, manufacturing and financial services sector participated in the study. We found support for the hypothesis that the psychological contract and those organizational processes relating to procedural justice would have a direct effect on two critical organizational outcomes, namely, employee commitment and intention to remain with the organization. We also found support for the hypothesis that psychological contract variables mediated the relationship between organizational processes and employee commitment and intention to stay with the organization.     

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.     

Identification and Trust in Public Organizations: A communicative approach

Abstract

Little empirical research has examined the link between organizational identification and organizational trust. Identification presupposes a level of consistency in its object, and this study proposes that trust can reduce uncertainty between organization and employee, enabling a bond between the two to form. Secondly, this research looks at how interaction with various organizational groups may affect organizational trust, thereby indirectly encouraging identification. It is thus proposed that organizational trust should be understood as an important mechanism mediating the relationship between interaction with employees at different levels of the organizational hierarchy and identification with the organization as a whole.     

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.     

Maintaining Leadership Legitimacy in the Transition to New Organizational Forms

Numerous new organizational forms have been proposed for ensuring the continuous strategic renewal of a firm. In essence, these forms are distinguished by: (1) their emphasis on bottom-up entrepreneurship, and (2) their reliance on a co-operative network that allows these entrepreneurial units to share their competencies with one another. One of the key behaviours required for the success of such an organization is employee empowerment. We argue in this paper that the legitimacy of corporate leadership during the restructuring of a traditional bureaucratic organization is crucial to its eventual transformation to one of the new organizational forms. The current wisdom of a two-stage transformation process, where an authoritarian restructuring precedes the more participative revitalization, is thus challenged. The transformation may get stalled after the restructuring stage because of top management’s inability to empower the firm’s employees at will, having lost their trust during restructuring     

Serving two organizations: Exploring the employment relationship of contracted employees

Although growth has occurred in contract employment arrangements both in the public and private sectors, scant research has been conducted on the organizations and employees affected by these arrangements.This study examines the employment relationship of long‐term contracted employees using a social exchange framework. Specifically, we examine the effects of employee perceptions of organizational support from contracting and client organizations on their (a) affective commitment to each organization and (b) service‐oriented citizenship behavior. We also examine whether felt obligation toward each organization mediates this relationship. Our sample consists of 99 long‐term contracted employees working for four contracting organizations that provide services to the public on behalf of a municipal government. Results indicate that the antecedents of affective commitment are similar for the client and contracting organization. Employee perceptions of client organizational supportiveness were positively related to felt obligation and commitment to the client organization. Client felt obligation mediated the effects of client perceived organizational support (POS) on the participation dimension of citizenship behavior. Our study provides additional support for the generalizability of social exchange processes to nontraditional employment relationships. Implications for managing long‐term contracted employees are discussed. © 2006 Wiley Periodicals, Inc.