Performance-enhancing compensation practices and employee productivity: The role of workplace bullying

Performance-enhancing compensation practices are designed to increase employee productivity through greater accountability, while highlighting performance differentials across employees. While productivity increases may occur, these practices can also stimulate an unintended consequence: workplace bullying. In this paper, we present a typology and conceptual model that explore the boundary conditions under which performance-enhancing compensation practices may result in bullying behavior with differential effects on target and perpetrator productivity. We propose the mediating roles of individual competition and stress between zero-sum pay systems and workplace bullying. In our model, we propose that perpetrators will realize increased productivity. This increased productivity will be generated through instilling fear in the targeted employee to compete for output, which will increase the perpetrator's relative ranking. As a result, targets will tend to suffer decreased productivity. We conclude with a discussion of the theoretical contributions, practical implications, and offer directions for future research.     

Identification-commitment inventory (ICI model): confirmatory factor analysis and construct validity

The aim of this study is to confirm the factorial structure of the Identification-Commitment Inventory (ICI) developed within the frame of the Human System Audit (HSA) (Quijano et al. in Revist Psicol Soc Apl 10(2):27–61, 2000; Pap Psicól Revist Col Of Psicó 29:92–106, 2008). Commitment and identification are understood by the HSA at an individual level as part of the quality of human processes and resources in an organization; and therefore as antecedents of important organizational outcomes, such as personnel turnover intentions, organizational citizenship behavior, etc. (Meyer et al. in J Org Behav 27:665–683, 2006). The theoretical integrative model which underlies ICI Quijano et al. (2000) was tested in a sample (N = 625) of workers in a Spanish public hospital. Confirmatory factor analysis through structural equation modeling was performed. Elliptical least square solution was chosen as estimator procedure on account of non-normal distribution of the variables. The results confirm the goodness of fit of an integrative model, which underlies the relation between Commitment and Identification, although each one is operatively different.     

Organizational change cynicism: The role of employee involvement

Organizational change efforts can bring about a range of outcomes: some intended, such as organizational survival and profitability, and some unintended, such as heightened levels of organizational change cynicism (OCC) among employees. This article focuses on processes for managing OCC: we examine the role of information sharing and involvement in decision making as ways to lessen employee reports of OCC. While both of these strategies have the potential to be effective, they rest on a significant assumption—namely, that employees will enthusiastically embrace any opportunities to become involved. In this research, we investigate this assumption through an analysis of the relationship between an employee's willingness to become involved (”active orientation”) on employee reports of their OCC. We find, using data from 1,214 public‐sector employees, that an active orientation toward involvement plays a significant role as a moderator in reducing employee reports of OCC. The findings suggest that HR practitioners concerned about OCC should encourage their line managers to adopt a participatory style of management (information sharing, involvement in decision making), especially in those workplaces where employees are more likely to embrace the opportunities for involvement. © 2008 Wiley Periodicals, Inc.     

Ethical climate and pro-social rule breaking in the workplace

Pro-social rule breaking (PSRB), rule-breaking to promote the interests of the organization, is a burgeoning topic on the scholarly landscape, but drivers of this behavior remain largely unexplained. This paper seeks to extend theory on PSRB by conceptualizing this behavior as an ethical decision requiring tradeoffs and ethical assessments. Specifically, we offer a model of PSRB that contextualizes the behavior within Victor and Cullen's (1988) five-dimensional typology of organizational ethical climate. We offer a set of propositions that provides theory on the role of each climate type on PSRB, as well as additional theorizing about salient individual attributes that impact PSRB. In addition to clarifying PSRB as an ethical decision, this paper offers theory at multiple levels of analysis on what drives PSRB. Specifically core self-evaluations are proposed as antecedents to PSRB. This theorizing is also integrated into literature on HR policy and HR decision-making implications of the model for HR practitioners are discussed, and a set of future research directions are offered.     

Is Prestige Only Beneficial? A Cost of Perceived External Prestige Among Accounting Employees

Abstract

Perceived external prestige (PEP), which is an employee’s belief of how outsiders view his or her organization, has a positive effect on multiple employee job outcomes. However, we posit that PEP also carries costs that arise due to increases in the perception of coworker competitiveness that negatively affects some job outcomes. Prior research has not yet examined negative outcomes of PEP. Using structural equation modeling with survey data from a sample of 477 accounting professionals employed in public accounting firms, we find that PEP is negatively related to job satisfaction and positively related to turnover intentions through its relationship with perceptions of the competitiveness of coworker environment, thus documenting a cost of PEP. Overall, though, we find that the net effect of PEP on job outcomes remains positive. Additionally, we find these relationships hold with 383 accounting professionals in industry. Implications for research and practice are discussed.     

In union lies strength: Collaborative competence in new product development and its performance effects

It is widely recognized that new product development (NPD) is a highly interdependent process, yet efforts to empirically model the interdependence and examine its effect on firm performance are scarce. Our study addresses this research gap. We model firms’ abilities to collectively collaborate with suppliers, customers, and internal employee teams in NPD as collaborative competence and examine its impact on project and market performance. Using responses collected from 189 NPD managers, we find empirical evidence for collaborative competence and its differential impact on project and market performance. Specifically, we find that collaborative competence has a direct impact on project performance, but its impact on market performance is indirect, mediated through project performance. The results have significant managerial implications; achieving superior market performance from inter- and intra-organizational involvement is contingent on achieving superior project performance, and companies that fail to achieve desired project performance outcomes will also fail in achieving market performance goals.     

Understanding pension communications at the organizational level: Insights from bounded rationality theory & implications for HRM

This paper applies concepts from bounded rationality theory to develop an integrative model to understand how pension scheme structure and pension scheme communication impact pension participation and contribution rates at organizational level. Organizational pension policies create framing effects that can have intended and unintended consequences depending on how they impact on employees' cognitive processes. Organizational pension communication policy impacts employee pension outcomes through the interaction between fast-acting, automatic System 1 and deliberative, calculating System 2 that typically endorses and occasionally overrides System 1 judgments. System 1 exhibits mental short-cuts (heuristics) and systematic biases. The likelihood of a System 2 challenge to System 1 depends on the personal, socio-demographic and economic characteristics of the individuals within the workforce. We propose that those within the HR function, who understand framing effects, can develop pension policies that positively affect pension plan outcomes at the organization level, specifically the pension participation and average contribution rates, using a combination of policies that in some cases promote System 2 endorsement and in other cases, System 2 engagement.     

Workplace bullying and employee outcomes: a moderated mediated model

Abstract

This paper investigates the relationship between workplace bullying and employee outcomes in a healthcare setting. Drawing on HR process theory, we investigate the mediating role of the perceived effectiveness of implementation of anti-bullying practices on employee outcomes and whether targeted line manager training was a moderator of that relationship. Our multi-level analysis (utilising responses from 1507 employees within 47 hospitals with matched HR Director interviews), finds that the relationship between workplace bullying and employee outcomes is partially mediated by employees’ perceived effective implementation of intended anti-bully practices. The mediated relationship is moderated by targeted line manager training in anti-bullying practices. The mediated moderation model illustrates that it is effective implementation of anti-bullying practices enhanced by targeted training that is required to reduce bullying probabilities and their associated negative employee outcomes. The paper contributes to resource based view of the firm, HR process and human capital theories. The implications for future research and practice are discussed.     

State Ownership,Socio-political Factors,and Labor Cost Stickiness

This article examines the effect of state ownership on the labor cost stickiness of firms in 22 European countries. States are more likely to interfere in the decision-making processes of state-owned enterprises (SOEs) and demand firm activities that are desirable from a socio-political perspective. For example, to win political support, politicians may instruct SOEs to avoid layoffs to minimize unemployment rates. The varied objectives of SOEs also make it more difficult to control managers' behavior, leaving more room for managerial discretion and the pursuit of self-interests through empire-building behavior. Both state intervention and managerial self-interest restrain managers from laying off employees or reducing employee wages when sales decrease, which may lead to greater labor cost stickiness. Data from 1993 to 2012 reveal that SOEs exhibit greater labor cost stickiness than private firms, and their labor cost stickiness also varies predictably with socio-political variables such as election years and left-wing governments.     

Categorical and continuous non-discretionary variables in data envelopment analysis: a comparison of two single-stage models

Non-discretionary or environmental variables are regarded as important in the evaluation of efficiency in Data Envelopment Analysis (DEA), but there is no consensus on the correct treatment of these variables. This paper compares the performance of the standard BCC model as a base case with two single-stage models: the Banker and Morey (1986a) model, which incorporates continuous environmental variables and the Banker and Morey (1986b) model, which incorporates categorical environmental variables. Simulation analyses are conducted using a shifted Cobb-Douglas function, with one output, one non-discretionary input, and two discretionary inputs. The production function is constructed to separate environmental impact from managerial inefficiency, while providing measures of both for comparative purposes. Tests are performed to evaluate the accuracy of each model. The distribution of the inputs, the sample size and the number of categories for the categorical model are varied in the simulations to determine their impact on the performance of each model. The results show that the Banker and Morey models should be used in preference to the standard BCC model when the environmental impact is moderate to high. Both the continuous and categorical models perform equally well but the latter may be better suited to some applications with larger sample sizes. Even when the environmental impact is slight, the use of a simple two-way split of the sample data can produce significantly better results under the Categorical model in comparison to the BCC model.     

Contextualizing performance appraisal practices in Chinese public sector organizations: the importance of context and areas for future study

Abstract

Public sector organizations (PSOs) continue to undergo pressures for change due to economic globalization and the changing role of the state, resulting in increased focus on performance management, particularly employee performance appraisal. New public management’s emphasis on transparency, accountability, efficiency and performance highlights the multiple and often conflicting roles and performance outcomes of PSOs, the social and economic contexts in which PSOs operate, and the multiple ways they measure and manage performance. Responding to this special issue and calls for a richer understanding of performance management in PSOs we examine the impact of context on performance appraisal in Chinese PSOs. As China continues its transitions to a market-driven economy, Chinese PSOs have engaged in managerial reforms to improve governance, efficiency and productivity, including the strategic implementation of western-based HRM practices to manage employee performance. Our analysis demonstrates the challenges context poses for analysing HRM practices in Chinese PSOs.     

A Western Australian Test of Invariant Factorial Structure in the Work Autonomy Scale Between Managerial and Non-Managerial Employee Classifications

ABSTRACT

This paper explores the conceptualisation of work autonomy through an investigation of the factorial structure stability of the Global Work Autonomy Scale at different employee levels. After administering the Global Work Autonomy Scale (Breaugh, 1985) to employees in a public sector organisation, analysis of responses confirmed an a priori three-factor model of work autonomy (method autonomy, scheduling autonomy and criteria autonomy) in a group of non-managerial employees (n = 193). A subsequent multi-sample analysis was conducted to test the invariance of the three-factor model for a group of managerial employees (n = 205). After constraining factor loadings and factor covariances, the hypothesised model continued to provide a reasonable fit to the data, confirming the generalisability of the three-factor model to both employee classifications. The methodological and theoretical implications for research into work autonomy are discussed.     

How do high-involvement work processes influence employee outcomes? An examination of the mediating roles of skill utilisation and intrinsic motivation

How do high-involvement work processes influence employee outcomes? In this paper, we use Vandenberg et al.'s [Vandenberg, R. J., Richardson, H. A., & Eastman, L. J. (1999). The impact of high involvement work processes on organisational effectiveness: A second order latent variable approach. Group and Organisational Management, 24, 300–339] elaboration of Lawler's [Lawler, E. E. (1986). High-involvement management: Participative strategies for improving organizational performance. San Francisco, CA: Jossey-Bass] model to test direct links and to explore skill utilisation and intrinsic motivation as mediators. Survey data were collected from a large New Zealand organisation providing distribution services and results were analysed through structural equation modelling. While there are important direct effects, the results demonstrate that both skill utilisation and intrinsic motivation transmit high-involvement processes into valuable outcomes for employees. The benefits to employees of such processes are direct but also lie in the way they make the work itself more motivating and enable them to deploy and grow their skills. This implies that forms of work organisation and supervision that offer workers greater opportunity for discretion, and involvement in the decisions that concern them, create the conditions for greater learning and, in turn, contribute to their well-being.     

The psychological antecedents of employee referrals

This study investigates how different psychological antecedents lead to different components of organizational commitment and employee referrals or employment recommendations in a people-based financial services context. Specifically, we consider the impact of position involvement, volitional choice, and informational complexity on affective, calculative, and normative commitment, which ultimately influences employee referrals in the context of a Flemish bank. Our conceptual model is supported through SEM, and the empirical results show differential impacts of the three psychological antecedents on the various components of organizational commitment and employee referrals. Position involvement and affective commitment represent the key determinants of employee referrals. We also address the theoretical and managerial implications of our research.     

What,when, and who: Manager involvement in predicting employee resistance to acquisition integration

Applying sensemaking research to acquisition integration, we outline factors that influence employee resistance to acquisitions. While integration is widely viewed as important to acquisition outcomes, there is limited systematic study of how employees react to the integration process. Using survey data from Chinese acquirers and applying partial least squares structural equation modeling, we examine what changes with human and task integration with the speed of when changes are made to explore relationships with employee resistance. Consistent with a temporal perspective of acquisition processes and sensemaking we find slower task integration may mitigate employee resistance to acquisition integration. However, employee resistance to the speed that changes are made likely varies for who is involved, suggesting different roles for top and middle managers. Specifically, middle management involvement with slow human integration and top management involvement with fast task integration reduces employee resistance following an acquisition.     

Incentive Pay and Firm Performance: Moderating Roles of Procedural Justice Climate and Environmental Turbulence

In connection with the literature on strategic reward and agency theory, this study investigates the effects of incentive pay on employee outcomes and firm performance. We identify employee outcomes, such as commitment and competence, as mediating processes that explain the effects of incentive pay on firm performance. We further propose procedural justice climate and environmental turbulence as boundary conditions that determine the strength of the effects of incentive pay on employee outcomes. The research model is tested using multisource data collected at three time points over a five‐year period from 227 Korean companies. Our analysis confirmed that incentive pay enhanced employee commitment and competence, which, in turn, improved the operational and financial performances of firms. The effect of incentive pay on employee commitment was negative for firms with a low procedural justice climate, but positive for firms operated under a highly turbulent environment. By contrast, the effect of incentive pay on employee competence was positive only for firms operated under a stable environment. This study enriches the literature by presenting and validating plausible underlying mechanisms and boundary conditions under which strategic performance–contingent incentive pay affects firm performance. © 2015 Wiley Periodicals, Inc.     

High performance work practice implementation and employee impressions of line manager leadership

Human resource management (HRM) research has documented the importance of high performance work practices (HPWPs) to organizations, and recent efforts have argued for increasing attention to the role of line manager implementation of HPWPs. To date, research in this area has focused largely on the organizational or employee implications of HPWP implementation, ignoring the process through which implementation affects outcomes. In this article, we use theory on impression formation to describe the perceptual process through which line manager implementation of HPWPs facilitates the formation of different employee impressions of manager leadership styles. We argue that this process is contingent upon employee attributions of implementation intent, which are influenced by the interaction of employee affective and attributional tendencies with line manager implementation style (i.e., political skill). Our conceptualization of this process contributes to HRM research by demonstrating the benefits of integrating it with leadership theory, as well as identifying the role of interpersonal perceptual processes in the effects of HPWPs.     

High-Performance HR Practices,Work Stress and Quit Intentions in the Public Health Sector: Does person–organization fit matter?

Drawing on the attraction–selection–attrition (ASA) framework, this paper examines a mechanism, namely person–organization (P–O) fit, through which high-performance HR practices (HPHRPs) affect two negative employee outcomes: work-related stress and quit intentions. Using a sample of Egyptian public health sector workers, a mediation model is tested empirically using structural equation modelling. The study results show that HPHRPs positively affected P–O fit, which in turn had significant negative associations with work stress and quit intentions. P–O fit also explained a high proportion of mediation in the relationship between HPHRP and both outcomes.     

Interactions between work and identities: Thriving,withering, or redefining the self?

Interactions between work and identities are an important topic as a result of their influence on both employees' well-being and organizational performance. However, there is a lack of theorizing that comprehensively charts the processes and outcomes of work and identity interactions. In this paper, we formulate an integrated conceptual model of interactions between work and identities, employee reactions to them, and subsequent outcomes. In our model, we bring together well-known and under-examined aspects of work and identity interactions. The model explains how such varied outcomes as employee thriving and withering, and both subjugated and empowered identities derive from encounters between work and identities. The model makes it possible to assess the possible benefits and side-effects of human resource management practices that seek to align work with the worker, and supports human resource managers in distinguishing the positive potential in situations where employees find their work misaligning with their identities.     

A social exchange theory framework for understanding the job characteristics–job outcomes relationship: the mediating role of psychological contract fulfillment

This study integrated the Job Demands-Resources (JD-R) model and concept of psychological contract fulfillment into a social exchange theory process framework to improve our understanding how and when job characteristics interact to influence job outcomes. Using survey data (n = 334), we found evidence to support our hypothesized relationships between job characteristics (job demands and job resources) and job outcomes (job satisfaction and organizational commitment); and the mediating role of psychological contract fulfillment (transactional and relational), such that when job resources (job control and support) were high, the negative effects of high job demands on psychological contract fulfillment were attenuated. Theoretical and managerial implications are discussed.