Engaging employees in company success: The UPS approach to a winning team

UPS is the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. One of the company's missions is to maintain a financially sound company, with broad employee ownership, that offers a long‐term competitive return to shareowners. This ownership culture is demonstrated through ownership guidelines for managers and supervisors as well as several employee stock programs. The ownership culture is vigorously promoted throughout UPS by a variety of communication channels. Employee ownership is core to the UPS culture, and it translates into a strong work ethic, with employees engaged in growing the business and committed to the company's success. © 2005 Wiley Periodicals, Inc.     

THE EFFECTS OF EMPLOYEE OWNERSHIP ON EMPLOYEE ATTITUDES: AN INTEGRATED CAUSAL MODEL AND PATH ANALYSIS*

Research on employee-owned organizations to date has utilized alternative theoretical perspectives and has examined varying attitudinal outcomes. This study reviews previous research and attempts to integrate the findings into a causal model that combines the results of prior studies. the resulting causal model was tested empirically with a sample (N= 181) of employees from a firm that adopted an employee ownership programme. Financial value of the ESOP was positively related to satisfaction with the ESOP plan, but was not related to other attitudinal variables. Perceived influence from ownership was positively related to ESOP satisfaction, job satisfaction, and organizational commitment. ESOP satisfaction, job satisfaction, and organizational commitment were negatively related to turnover intention. ESOP satisfaction and turnover intention were related to actual employee turnover behaviour over an extended time period.     

The impact of large-scale employee share ownership plans on labour productivity: the case of Eircom

Large-scale employee share ownership plans (ESOPs) have been a distinctive characteristic of Irish public enterprise reform, with shareholdings of 14.9% being allocated to employees as part of firm restructuring and privatisation programmes. This paper presents a case study analysis of a large-scale ESOP in Eircom, Ireland's former national telecommunications operator. We identify changes in labour productivity (LP) during 8 years before and after the establishment of the company's ESOP and use a framework based on Pierce, Rubenfeld and Morgan (1991, The Academy of Management Review, 16, 121–144) and Pierce, Kostova and Dirks (2001, Academy of Management Review, 26, 298–310) to explore the role played by the ESOP. The ESOP was found to play a key role in enabling firm-level reform through concession bargaining and changes in employee relations, and thereby indirectly affecting LP. However, despite the substantial shareholding and influence of the ESOP, we find that it has failed to create a sense of psychological ownership among employees, and thereby further impact on productivity.     

Employee ownership and firm performance: a meta‐analysis

Employee ownership has been an area of significant practitioner and academic interest for the past four decades. Yet, empirical results on the relationship between employee ownership and firm performance remain mixed. To aggregate findings and provide potential direction for future theoretical development, we conducted a meta‐analysis of 102 samples representing 56,984 firms. Employee ownership has a small, but positive and statistically significant relation to firm performance ( = 0.04). The effect is generally positive for studies with different sampling designs (samples assessing change in performance pre‐employee–post‐employee ownership adoption or samples on firms with employee ownership), different performance operationalisation (efficiency or growth) and firm type (publicly held or privately held). Suggesting benefits of employee ownership in a variety of contexts, we found no differences in effects on performance in publicly held versus privately held firms, stock or stock option‐based ownership plans or differences in effects across different firm sizes (i.e. number of employees). We do find that the effect of employee ownership on performance has increased in studies over time and that studies with samples from outside the USA report stronger effects than those within. We also find little to no evidence of publication bias.     

Graduate Recruitment In the Australian Public Sector

ABSTRACT

Service orientation in the HRM system is a lever for public employees to serve the public even beyond their work roles. Our research seeks to understand how work engagement links service-oriented high-performance work systems (HPWSs) to public employees’ service-oriented behaviours. Employees and their managers from public legal service agencies in the Vietnamese context were recruited as participants in our research project. The research results demonstrated the role of employee work engagement in mediating the relationships between service-oriented HPWSs and service-oriented in-role performance as well as service-oriented organizational citizenship behaviour (OCB). The interactions were also found between service-oriented HPWSs and HRM system strength, as well as between service-oriented HPWSs and public service motivation in catalysing work engagement.     

Perceived investment in employee development,intrinsic motivation and work performance

The purpose of this study was to explore alternative relationships between perceived investment in employee development, intrinsic motivation and different facets of work performance. Three cross‐sectional surveys of a total of 826 respondents from organisations located in Norway showed that the relationship between perceived investment in employee development and work effort was mediated by intrinsic motivation. In addition, intrinsic motivation was found to moderate the relationship between perceived investment in employee development and organisational citizenship behaviour. The form of the moderation revealed a positive relationship only for employees with high levels of intrinsic motivation.     

Employee ownership and affective organizational commitment: employees’ perceptions of fairness and their preference for company shares over cash

Interest in profit-sharing and employee ownership is growing among both practitioners and researchers. This study examines the relationship between the preferences and perceptions of employees regarding an ongoing share ownership plan on the one hand, and the employees’ affective organizational commitment on the other. After controlling for various personal and work-environment characteristics and for size of the financial contribution it was found that preference for ownership and the perceived fairness of the employee ownership plan were significant predictors of affective commitment. These findings support the notion that employee ownership may have intrinsic motivating effects on employees by way of a mediating mechanism, whereby the effects of ownership on organizational commitment depend on how employees evaluate and perceive formal ownership plans.     

Organizational flexibility in Korean companies: rules and procedures on managerial discretion and employee behaviour

This paper examines organizational flexibility in Korea by concentrating on the rules and procedures on managerial and employee behaviours (safeguard and control rules), and their association with size, ownership, strategy and performance. The data reported were collected from forty-five organizations in South Korea. The results showed that flexibility in terms of low control rules (rules on employees) relates to innovation strategies, and lack of flexibility (high control rules) relates to cost-reduction strategies. The results also show that in Korea, a 'fit' between this aspect of organizational flexibility and strategy had a positive impact on organizational performance. Rules on managerial behaviour (safeguard rules) were strongly related to family or individual ownership in the Korean context. The implications of 'congruence' between organizational strategy and presence/absence of flexibility for employee behaviour are discussed.     

Challenged and satisfied: the role of organisational ownership and employee involvement

Abstract

This study aims to offer a more fine-grained approach to our understanding of the relationship between job stress and job satisfaction. Building on organisational theory and Job Demand-Control model, we investigated an important institutional characteristic – organisational ownership – as an additional moderator to influence the interactive effects of job demands and control upon job satisfaction. Using data collected from 1838 Chinese retail sector employees, we found that this three-way interaction was strongest for employees working in foreign-invested firms, who experienced higher employee involvement at work and perceived a high level of challenge-related stress. The relationship was weakest for employees in state-owned enterprises who reported low levels of both employee involvement and challenge-related stress. Our study constitutes an early attempt to assess the impact of institutional characteristics such as ownership on aspects of human resources management, and highlights the need for further research to recognise the importance of such characteristics as contextual factors that influence the effect of organisational practices and the work environment upon individual work-related outcomes. The paper’s concluding sections elaborate on the contributions our research makes both to theory as well as to the practicalities faced by human resource managers in contexts such as China.     

Stimulating Strategically Aligned Behaviour Among Employees

Strategically aligned behaviour (SAB), i.e. employee action that is consistent with the company's strategy, is of vital importance to companies. This study provides insights into the way managers could promote such behaviour among employees (who can be managers as well) by stimulating employee motivation, by informing employees, and by stimulating the development of their capabilities. The results of surveys conducted in three organizations suggest that, first, perceived efforts by management aimed at motivating and informing employees (both managers and non-managers), and at developing their capabilities, each are related to SAB. Second, among the perceived efforts to stimulate motivation among employees, providing a rationale for the strategy and an open communication climate have a stronger relationship with SAB than participation in decision making and supportiveness. Third, the perceptions of the different types of managerial effort are related to each other. For this reason, the efforts have direct as well as indirect relationships to SAB. Fourth, each of the perceived efforts seems to be complementary to the others, in the sense that the relationship of one type of effort to SAB is stronger when other types of effort are perceived to be higher.     

In what ways do Chinese employees speak up? An exchange approach to supervisor–subordinate guanxi and voice behavior

Few studies have investigated the effect of supervisor–subordinate guanxi (s–s guanxi) on employee voice behavior. From a social exchange perspective, the current study sheds light on the effect of s–s guanxi on employee voice behavior through the mediating roles of psychological ownership and psychological empowerment. A theoretical model is developed and empirically tested with a sample of 299 supervisor–subordinate dyads. The results generally support our hypothesis that s–s guanxi can influence employee voice through the mediating roles of psychological ownership and psychological empowerment. However, counter to our hypothesis, we find no support for psychological ownership mediating between s–s guanxi and promotive voice. Implications and contributions are discussed.     

The Impact of Management Control on Employee Motivation and Performance in the Public Sector

Abstract

This study examines the relations among various types of management control, intrinsic and extrinsic motivation, and performance in the public sector. We draw on motivation crowding theory and self-determination theory to argue that four different types of management control (i.e. personnel, cultural, action, and results control) are likely to have an influence on intrinsic motivation and/or extrinsic motivation. We test a structural equation model using survey data from 105 similar departments in the public sector. Our findings indicate that the use of personnel and cultural controls is positively associated with employees’ intrinsic motivation, and that the use of results controls is positively associated with employees’ extrinsic motivation. Moreover, both intrinsic motivation and extrinsic motivation are positively associated with performance. Taken together, these findings support the idea advocated by New Public Management proponents that results control can enhance employee motivation and performance in the public sector. However, the findings also highlight an essential nuance; in addition to results control, personnel and cultural controls are also important, as they enhance intrinsic motivation and performance. This implies that a sole focus on results control is too narrow and can lead to suboptimal levels of employee motivation and performance in the public sector.     

Does a sense of calling facilitate sustainability? Research on the influence of calling on employee green behavior

Organizations recently attach growing importance to sustainable development and green human resource management (GHRM), raising research interest in predicting employee green behavior (EGB). However, the potential linkage between a sense of calling and EGB is neglected. This research fills the void by examining whether, how, and when calling predicts EGB. Drawing upon self-determination theory, we argue that by satisfying three basic psychological needs (i.e., autonomy, competence, and relatedness), a sense of calling enhances employees' prosocial motivation, which in turn promotes EGB. We further propose that calling predicts EGB more effectively for less conscientious employees. We conducted two field surveys to test the hypotheses. Both Study 1 (N = 280) and Study 2 (N = 295) confirm that calling positively affects EGB through partial mediation of prosocial motivation and that conscientiousness negatively moderates the relationship between calling and prosocial motivation as well as the indirect effect. Theoretical contributions and practical implications are discussed.     

Where hukou status matters: analyzing the linkage between supervisor perceptions of HR practices and employee work engagement

This paper highlights the interaction between intended human resource (HR) practices as perceived by supervisors and status similarity between supervisors and employees as a key source of variation in employee work engagement among 298 employees reporting to 54 supervisors at a luxury Chinese hotel. Using a multi-level, process-oriented approach to examine the relationship between intended HR practices by supervisors and engagement as perceived by employees, we show (1) that the interaction of supervisor perceptions of HR practices and supervisor–subordinate hukou (place of origin) status similarity is positively related to employee reports of Leader–member exchange (LMX), HR practices and work engagement; (2) that the interaction of supervisor perceptions of HR practices and hukou status similarity influences employee perceptions of HR practices through LMX; and (3) that the interaction of supervisor perceptions of HR practices and hukou status similarity influences work engagement through employee perceptions of LMX and HR practices. Theoretical and practical implications are discussed.     

Impact of knowledge oriented leadership on knowledge management behaviour through employee work attitudes

Abstract

Despite the acknowledged importance of knowledge management (KM), many employees avoid practicing KM at the individual level. This avoidance often leads to loss of the intellectual capital due to employee turnover. Many potential behavioural remedies are still untapped in the existing literature. This study extends the construct of knowledge oriented leadership (KOL) and examines its role in predicting KM behaviour among employees of the hospitality sector, at the individual level. It also investigates the mediating effect of employee work attitudes including affective commitment, creative self-efficacy and work engagement, by using partial least square for structure equation modelling. This study finds that KOL positively affects KM behaviour, affective commitment, creative self-efficacy and employee work engagement. Work attitudes (affective commitment, creative self-efficacy, work engagement) mediate the relationship of KOL and KM behaviour. Furthermore the direct positive effect of employee affective commitment, creative self-efficacy and work engagement on KM behaviour is also significant. This study contributes to the body of knowledge by extending the construct of KOL, and by investigating the connection between KOL, work attitudes, and KM behaviour among hospitality employees, at the individual level.     

“Want to” Versus “Have to”: Intrinsic and Extrinsic Motivators as Predictors of Compliance Behavior Intention

“Worthless,” “money burning,” or “black holes” is how media and professionals describe compliance practices today. Practitioners are unenthusiastic about control systems, codes of conducts, and systems for compliance management that are increasing in volume but not in effectiveness. In order to help practitioners clarify what actually makes employees comply with their compliance program, this study examines intrinsic and extrinsic motivators of 119 employees from procurement and sales. We contribute to the existing motivation literature, testing the self‐determination theory in low and high hierarchical levels. Our findings show that intrinsic motivators are more strongly and positively related to compliance intention on higher hierarchical levels than the lower ones. However, employees from higher hierarchies show overall less compliance intention than employees from lower hierarchies. © 2015 The Authors. Human Resource Management published by Wiley Periodicals, Inc.     

Understanding employee preferences for investing in employer stock: evidence from France

In this article, we broaden the focus of existing research on employee stock purchase plans by analysing employee preferences for investing in employer stock as a construct distinct from actual investment behaviour. In our analysis of original survey data in a sample of 900 employees in four French companies, we find that employee preferences are influenced by two common cognitive heuristics (representativeness and familiarity), organisational commitment, the perceived quality of corporate communications about these plans and perceived managerial commitment to employee ownership. We did not find, however, that risk aversion, turnover intentions or perceived employee involvement in decision making influenced preferences for investing in employer stock. Our findings have both theoretical and practical implications for understanding and operating these types of employee benefit plans, which are becoming more common across the globe.     

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.     

Employee buyouts and employee involvement: a case study investigation of employee attitudes

This article investigates the association between employee share ownership (ESO) and employee involvement (EI) in an employee‐owned firm.Based on data from the firm’s employers and employees, the article concludes that the mere presence of share ownership is no guarantee on increased involvement for employees, highlighting instead the significance of other variables.