Value Congruence and Charismatic Leadership in CEO–Top Manager Relationships: An Empirical Investigation

Although charismatic leadership theorists have long argued that leader–follower value congruence plays a central role in the development of charismatic relationships, few studies have tested this proposition. Using data from two studies involving a total of 329 CEOs and 1807 members of their top management teams, we tested the hypothesis that value congruence between leaders and their followers is empirically linked to follower perceptions of the charisma of their leader. Consistent with a relational perspective on charismatic leadership, strong support was found for the hypothesis that perceived value congruence between leaders (CEOs) and their followers (members of their top management teams) is positively related to follower perceptions of the degree of charisma possessed by the leader. Conversely, only limited support was found for the hypothesis that actual value congruence is linked to perceptions of charismatic leadership. Implications of these findings for research and practice are discussed.     

HOW MANY SMALL FIRMS ARE ENOUGH?

Individual investors are undiversified, holding on average less than four securities in their personal portfolios. The small firm literature focuses on CAPM (systematic risk, full diversification concept) premia, and the actual performance of small firm portfolios held by investors is overstated because of the presence of unsystematic risk. This paper illustrates the magnitudes of total risk for small and large firms, and the behavior of such measures as portfolio size is altered. Small firms contain more risk as shown by the finding that a diversified portfolio of small firms has greater variability than a single, typical large firm. While small firms outperform large firms, investors should be aware of the implications for small firm undiversified portfolios. Because small firms contain large amounts of unsystematic risk, diversification is important if investors are going to capture the small firm premia reported in the literature.     

CHANGING VOLATILITY AND THE PRICING OF OPTIONS ON STOCK INDEX FUTURES

This paper presents empirical results regarding the suitability of the Black model for the pricing of options on stock index futures. Whaley's technique is used to present empirical evidence regarding the pricing biases of the model. Information provided by the implied volatilities suggests that model refinements should address the changing volatility issue.     

Organization and human resource professionals in transition

A critical issue confronting business management in the 1980s is how to successfully manage organizations and human resource issues at a time of rapid changes in markets, products, technology, and competition. These issues are aggravated by changing social values, government legislation, and international economics which impact on human resource managers even more. This article argues for a new type of professional, one who combines expertise in aligning the organization structure and culture with human resource systems and business strategy. The organization and human resource professionals (O&HR) role described is not totally new but a logical next generation extension of a role currently found at General Electric.     

Users'' attitudes as a guide to the evaluation of hospital nursing units

Information about the attitudes of patients, doctors, nurses, etc. toward the physical environment of hospital nursing units may contribute to assessments of the need for modernization or new units, and to the evaluation of alternative strategies for satisfying these needs. Existing techniques for the measurement of attitudes can be adapted to record reliable and valid judgements from the people who use nursing units rather than relying upon expert opinions at second-hand. Of the many factors which influence users' attitudes a person's role is especially important since it determines the nature of his experiences, and what he does in the nursing unit. An illustrative analysis has identified, in a sample of 34 units, physically distinct types which can be discriminated in terms of their functional areas. Users' attitudes vary according to the type of unit which they occupy. The general pattern of attitudes varies according to role; as does the relative importance attached to different aspects of the unit. The development of standardized questionnaires for recording users' attitudes would provide a useful tool for the planning and design of hospital nursing units.     

Technological overlap,technological capabilities,and resource recombination in technological acquisitions

The performance of technological acquisitions depends heavily on the overlap between the knowledge bases of the target and acquirer. We argue that overlap is best viewed as two distinct constructs: target overlap, the proportion of the target's knowledge base that the acquirer already possesses, and acquirer overlap, the proportion of the acquirer's knowledge base duplicated by the target. Each affects the value created from the firms' technological capabilities differently due to absorptive capacity, knowledge redundancy, and organizational disruption. Further, the low quantity of innovations observed in acquisitions with low target overlap may conceal an offsetting increase in their novelty. Copyright © 2013 John Wiley & Sons, Ltd.