Dual roles in psychological contracts: When managers take both agent and principal roles

Departing from the long-espoused assumption that managers act only as agents in employees' psychological contract with the organization, this paper asserts that in addition to the agent role, some managers, in an attempt to further their own self-interests, form and enact their own psychological contracts as principals with select employees. The combination of these dual roles often yields unacknowledged but significantly negative consequences for the employing organizations, the managers who choose a principal role, and the select employees with whom they form a psychological contract. Drawing upon agency, psychological contract, and social exchange theories, we develop the distinctive characteristics of the agent vs. principal roles, identify the antecedents that motivate managers to assume a principal role, develop four archetypes for combining the dual roles, and suggest the potentially harmful consequences for the above three parties mentioned. The paper concludes with theoretical and practical implications and suggestions for future research.     

Understanding the Change–Cynicism Cycle: The Role of HR

Employee change cynicism is an unintended consequence of organizational change, which can undermine the effectiveness of change initiatives. Based on social information processing theory, we examine the impact of two human resource roles (administrative expert and strategic change agent) on the relationship between the quantity of organizational change and employee change cynicism. Using multilevel data from 1,831 employees in 70 organizations, we find employees who are exposed to more organizational change report higher levels of change cynicism. However, the strength of the organizational change–cynicism relationship is affected by the role of HR in the employees’ organizations. When HR undertakes an administrative expert role, change is more likely to generate change cynicism. When HR undertakes a strategic change agent role, change is less likely to generate change cynicism. Our results suggest that organizations need to think carefully about the role of HR during organizational change and encourage HR to adopt a strategic change agent role. © 2015 Wiley Periodicals, Inc.     

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

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

Core self-evaluations and salary attainment: the moderating role of the developmental network

Core self-evaluation (CSE) has been shown to be robust as a predictor of employees' salary attainment. Although the developmental network is suggested to have a positive impact on salary, do all high-CSE individuals benefit from their developmental networks similarly? We incorporate both personality research and developmental network research to explore this question in two studies. In Study 1, we investigated whether developmental network size moderates the positive CSE–salary relationship. In Study 2, we explored whether the organizational status and the strength of ties of one's developers moderate the positive CSE–salary relationship. Results indicated that high-CSE individuals with developmental networks characterized by fewer developers and by strong ties reported higher salaries than others. Overall, our findings demonstrate that the positive CSE–salary link may vary depending on the structural characteristics of the developmental network.     

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.     

Organizational Contexts for Environmental Construction and Objectification Activity

This paper argues that organizations are the source of an adaptation–construction cycle. In that cycle, the consequences of organizational adaptations to current environmental states are constructed by the organization's managers into new environmental states. Therefore organizational action in response to environmental conditions has both an adaptive component and an unintended environmental enactment component. The paper identifies attributes of adapting organizations that increase the level of managerial activity devoted to environmental construction and objectification. The theoretical logic of delineating these organizational attributes moves the paper beyond present versions of enactment theory, ‘social construction of reality’ theory, and structuration theory to focus on predictors of variation in concrete activity resulting in environmental construction and objectification. Based on the discussion of the organizational predictors, propositions to be tested in future empirical research are offered. Also, the propositions are used to suggest extensions to enactment theory, social construction of reality theory, structuration theory, and contemporary versions of neo‐institutional theory. These extensions are detailed in the discussion section.     

Multi-cultural leadership teams and organizational identification in international joint ventures

Many international joint ventures (IJVs) fare poorly. An important factor is that members of an IJV top management team (TMT), which generally comprises people from different cultures, often find it difficult to work together. In this paper we argue that social identity theory and organizational identification processes can help us understand why this is so. We propose that factionalism in a TMT is a significant hazard posed by member identification with different parents. In addition, identification with both the IJV and a parent firm can lead to significant role conflict for IJV top managers. Factionalism and role conflict in turn can result in poor intra-TMT communications and inefficient decision making. Literature in social identity theory and organizational identification suggests that the relative status and power of parents as well as successes of IJVs can affect TMT members' identification with the IJV or the parent company. Preliminary field interviews provide general support for these propositions. Our analysis suggests that organizational identity and identification can be a valuable tool to facilitate the understanding of TMT functioning and IJV performance.     

HR managers in five countries: what do they do and why does it matter?

The 1980s saw the need for change in the organizational role of human resource (HR) professionals, from the traditional employee champion and administrative expert to strategic business partner and change agent. The argument posited was that a more challenging environment compels organizations to turn to managing their HRs as a source of competitive advantage and that means an increasing business partnership for HR professionals. However, very few studies examine the execution of these multiple, sometimes contradictory roles, despite the risk that neglecting traditional roles endanger organizational performance in the long term. This five-country comparative study finds that multiple roles are at least moderately executed, and that these HR roles have different impact depending on the aspect of organizational performance. As well, a more challenging environment, defined here as legal constraints and industry challenges, generally does not have a significant moderating effect on the impact of the different HR roles on organizational performance.     

A model of individual and organizational factors affecting quality-related outcomes

This article integrates previous theory and research on work adjustment, individual performance, human relations, and high involvement systems to develop a model of the individual and organizational factors thought to affect quality-related outcomes. The model suggests that organizational values influence the design of internal organizational systems, and the degree of congruence between individuals and organizational systems influences the attainment of quality-goals. Furthermore, the model emphasizes that the success of a TQM system may depend on the congruence between organizational systems (e.g., human resources practices) and quality goals. A number of research propositions based on the model are offered to motivate future research on quality-related issues.     

The negative effects of delays in information exchange: Looking at workplace relationships from an affective events perspective

Although timely exchange of information is critical to organizations, it often fails to happen. In this paper, we present a conceptual framework for understanding how delays in information exchange negatively impact employee outcomes. Using affective events theory, delays are conceptualized as workplace events. In contrast to prior delay research, we adopt a temporal perspective for studying employees' experiences during a delay and how these experiences influence interpersonal behavior. We suggest that how employees appraise and experience delays depends, critically, upon the coworker and his or her behavior during the delay. We also identify a set of situational and dispositional factors that are important for predicting when delays in information exchange are likely to undermine coworker relationships and when they are not. Throughout the paper, we develop propositions to guide research and human resource management practice.     

Leader–member exchange,subordinate stewardship,and hierarchical governance

In this article, by integrating the institutional theory, leader–member exchange (LMX) theory, and stewardship theory, we propose a model of subordinate stewardship behaviors in organizational hierarchies and the resultant hierarchical governance structures. First, we develop propositions suggesting that the quality of LMX (supervisor–subordinate) is determined by three antecedents: leader characteristics, subordinate characteristics, and internal organizational context. The quality of LMX, in turn, affects the subordinate stewardship behaviors. Second, by integrating institutional theory and stewardship theory, we propose that the interaction between isomorphic pressures and the level of subordinate stewardship behaviors may result in four distinct types of hierarchical governance structures: isomorphic stewardship, isomorphic controls, firm-specific controls, and firm-specific stewardship. These governance mechanisms reflect the internal drive toward subordinate stewardship, while complying with the external norms of isomorphism. Thus, different types of governance structures may exist between and within firms. Implications of this model are discussed here.     

Factors of internal corporate social responsibility and the effect on organizational commitment

Internal corporate social responsibility (CSR) has become an essential part of organizations' social responsibility. Yet, to date, CSR's internal dimension has been widely neglected in the literature. This paper empirically explores the concept of internal CSR and its relationship to employees' affective and normative organizational commitment. For conceptualizing internal CSR, seven factors are theoretically derived based on social exchange theory. The research model is initially tested through a pre-test consisting of 386 respondents from a German company active in the renewable energy sector. The main survey is carried out in an international pharmaceutical company, resulting in 2081 employee responses. The results reveal that the relevant factors constituting internal CSR are present and that the latter has a strong effect on employees' affective organizational commitment and a comparatively low effect on normative organizational commitment. Furthermore, a mediating role of affective on normative organizational commitment is detected.     

Customers cocreating value with the firm: implications for IHRM

The purpose of this article is to develop a theoretical framework for governing an organization's relationships with customers engaged as contributors to the organization's business processes (i.e. customers as quasi-employees). Based on our suggested framework, we explain how appropriate customer-centric HRM practices can support more cost-effective and accommodating adaptations in the organization's governance of its relationships with customers. We complement these propositions with practical examples illustrating how customers who take different cooperative roles will increasingly become valuable organizational assets. The collaborating customers not only provide the information necessary for the successful performance of the service exchange, but also contribute human and social capital in performing tasks that are a complement to or a substitute for employee tasks. In conclusion, we outline implications for international human resource management (IHRM), as well as future research directions for examining the relationships among customer governance, role configurations, and IHRM practices.     

How gender matters: A conceptual and process model for family-supportive supervisor behaviors

Work-family management has become a highly salient issue for organizations as the world of work experiences ongoing changes due to globalization, technological advances, and new challenges spurred by the COVID-19 pandemic. In the past decade or so, the concept of family-supportive supervisor behaviors (FSSB) has been recognized by management and organizational science scholars as an important resource for alleviating negative pressures related to work-family management. However, despite evidence suggesting organizations are heavily gendered (i.e., built upon and structured according to assumptions about gender) and that FSSB represent a set of gendered behaviors, the role of gender is largely missing from FSSB theorization. In addition, little is known regarding the antecedents of FSSB and the mechanisms responsible for the enactment or withholding of FSSB by supervisors. To address these gaps, we perform an interdisciplinary theoretical integration to develop a conceptual and process model of gendered antecedents of the FSSB decision-making process. We present theoretically driven propositions regarding how gender-related variables of the supervisory dyad influence both 1) if/how supervisors become aware of an FSSB opportunity, and 2) supervisors' FSSB decisions to enact, withhold, or neglect FSSB. We conclude with practical implications and opportunities for future FSSB research based on implications of our theoretical insights.     

Managing Change,or Changing Managers? The role of middle managers in UK public service reform

Abstract

Drawing upon interview data from three case study organizations, we examine the role of middle managers in UK public service reform. Using theory fragments from organizational ecology and role theory, we develop three role archetypes that middle managers might be enacting. We find that rather than wholesale enactment of a ‘change agent’ role, middle managers are balancing three predominant, but often conflicting, change-related roles: as ‘government agent’, ‘diplomat administrator’ and, less convincingly, ‘entrepreneurial leader’. Central government targets are becoming the main preoccupation for middle managers across many public services and they represent a dominant constraint on allowing ‘managers to manage’.     

What happens to CEO compensation following turnover and succession?

When boards hire CEOs, the board and successor CEO have an opportunity to redesign the predecessor's compensation contract. The CEO's relative bargaining power will influence the outcome of compensation negotiations. Analyzing 508 successions, we find that total compensation of successor CEOs increases by 69% over their predecessor, but the structure of successor compensation is heavily influenced by the predecessors’ contracts. When the board's bargaining power is large, successors have a greater proportion of pay-at-risk and smaller proportion of salary. When the CEO's bargaining power is large, there is a smaller proportion of pay-at-risk and relatively greater proportion of salary.     

CHAMPIONS OF CHANGE AND STRATEGIC SHIFTS: THE ROLE OF INTERNAL AND EXTERNAL CHANGE ADVOCATES*

Change advocates who participate in the process of strategy-making can play an important role in enabling organizational adaptation. To examine the nature of this role, this article investigates the influence on strategic shifts of two such participants - new members of the top management team and management consultants. Empirical findings suggest that managers see these two types of change agents as having two different kinds of influence on strategic shifts. Specifically, the change agent role of management consultants is viewed as one that creates pressure for change by helping to shape new managerial perspectives of the environment. In contrast, the change agent role of new members of the top management team is viewed as one that counteracts inertial forces that may block the implementation of change. These results suggest that management consultants may be much more useful in stimulating changes in the ways executives think about their environment than they are in implementing radical strategic changes. To overcome institutional resistance to extreme strategic shifts, organizations may need to resort to stronger political and symbolic actions, such as promoting or hiring new top executives in key leadership roles.     

Organizational sponsorship and service co-development: A contingency view on service co-development directiveness of business incubators

We address the lack of studies focusing on internal organizational sponsorship mechanisms, while considering environmental influencers and focus on a specific type of organizational sponsorship to do so: Business incubators. We argue that to be able to offer a customized incubatee-strengthening service pack, incubator-incubatee interaction is key, requiring clear-cut and directive service co-development instructions, which is our focal construct. To better understand the functioning of this focal construct, we adopt a contingency approach to examine how the incubator's human capital, and the institutional environment impact the incubator's service co-development directiveness. A quantitative empirical study reveals that both human capital and an entrepreneurially-minded regulative and cognitive institutional environment allow an incubator to be directive, thereby laying a foundation for co-development of customized service offerings. Moreover, the incubator's human capital turns out to further stimulate the positive effects of an entrepreneurially-minded regulative environment. All in all, we find that both internal organizational and external institutional elements are pivotal for first-best implementation of the internal sponsorship mechanism ‘service co-development directiveness’.     

Entrepreneurship and Dynamic Capabilities: A Review,Model and Research Agenda*

abstract The emergent literature on dynamic capabilities and their role in value creation is riddled with inconsistencies, overlapping definitions, and outright contradictions. Yet, the theoretical and practical importance of developing and applying dynamic capabilities to sustain a firm's competitive advantage in complex and volatile external environments has catapulted this issue to the forefront of the research agendas of many scholars. In this paper, we offer a definition of dynamic capabilities, separating them from substantive capabilities as well as from their antecedents and consequences. We also present a set of propositions that outline (1) how substantive capabilities and dynamic capabilities are related to one another, (2) how this relationship is moderated by organizational knowledge and skills, (3) how organizational age affects the speed of utilization of dynamic capabilities and the learning mode used in organizational change, and (4) how organizational knowledge and market dynamism affect the likely value of dynamic capabilities. Our discussion and model help to delineate key differences in the dynamic capabilities that new ventures and established companies have, revealing a key source of strategic heterogeneity between these firms.     

Stakeholder Influences in Organizational Survival*

abstract Although much has been written on declines and turnarounds, virtually no research has examined stakeholders' influence in an existence threatening crisis of an organization. This paper provides a theory and a historical case study that show how the most influential stakeholders can be identified and managed during an organizational survival. The proposed model demonstrates how stakeholders' influence in organizational survival consists of both direct resource dependence‐ and structure‐based forms of power. The case analysis then describes an examination of actual stakeholder influences and changes in them during the decline and turnaround process. Finally, based on the findings of the case analysis and the influence identification, propositions are developed. They relate specific types of behaviours of influential stakeholders to the probability of organizational survival, showing how stakeholder management can be operationalized in an organizational turnaround.