International Review of Industrial and Organizational Psychology, 2002 (International Review of Industrial and Organizational Psychology)

International Review of Industrial and Organizational Psychology 2002 Volume 17 Edited by Cary L. Cooper and Ivan T. Ro...

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International Review of Industrial and Organizational Psychology 2002 Volume 17 Edited by

Cary L. Cooper and Ivan T. Robertson University of Manchester Institute of Science & Technology, UMIST

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International Review of Industrial and Organizational Psychology 2002 Volume 17



International Review of Industrial and Organizational Psychology 2002 Volume 17 Edited by

Cary L. Cooper and Ivan T. Robertson University of Manchester Institute of Science & Technology, UMIST


Copyright  2002 by John Wiley & Sons Ltd, Baffins Lane, Chichester, West Sussex PO19 1UD, England National 01243 779777 International (+44) 1243 779777 e-mail (for orders and customer service enquiries): [email protected] Visit our Home Page on http://www.wiley.co.uk or http://www.wiley.com All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1P 0LP, UK, without the permission in writing of the Publisher. Other Wiley Editorial Offices John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, USA WILEY-VCH GmbH, Pappelallee 3, D-69469 Weinheim, Germany John Wiley & Sons Australia, Ltd, 33 Park Road, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, 2 Clementi Loop #02-01, Jin Xing Distripark, Singapore 129809 John Wiley & Sons (Canada) Ltd, 22 Worcester Road, Rexdale, Ontario M9W 1L1, Canada

The Library of Congress has cataloged this serial publication as follows: International review of industrial and organizational psychology. —1986—Chichester; New York; Wiley, c1986— v.: ill.; 24cm. Annual. ISSN 0886-1528 = International review of industrial and organizational psychology 1. Psychology, Industrial—Periodicals. 2. Personnel management—Periodicals. [DNLM: 1. Organization and Administration—periodicals. 2. Psychology, Industrial—periodicals. W1IN832UJ HF5548.7.157 158.7'05—dc 19 86-643874 AACR 2 MARC-S Library of Congress [8709] ISBN 0-470-84295-4 Typeset in 10/12pt Plantin by Dorwyn Ltd, Rowlands Castle, Hants Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wilts This book is printed on acid-free paper responsibly manufactured from sustainable forestry, in which at least two trees are planted for each one used for paper production.

CONTENTS About the Editors

vii

List of Contributors

ix

Editorial Foreword

xi

1.

Coping With Job Loss: A Life-facet Perspective Frances M. McKee-Ryan and Angelo J. Kinicki

1

2. The Older Worker in Organizational Context: Beyond the Individual James L. Farr and Erika L. Ringseis

31

3. Employment Relationships from the Employer’s Perspective: Current Research and Future Directions Anne Tsui and Duanxu Wang

77

4. Great Minds Don’t Think Alike? Person-level Predictors of Innovation at Work Fiona Patterson

115

5. Past, Present and Future of Cross-cultural Studies in Industrial and Organizational Psychology Sharon Glazer

145

6. Executive Health: Building Self-reliance for Challenging Times Jonathan D. Quick, Cary L. Cooper, Joanne H. Gavin and James Campbell Quick

187

7. The Influence of Values in Organizations: Linking Values and Outcomes at Multiple Levels of Analysis Naomi I. Maierhofer, Boris Kabanoff and Mark A. Griffin

217

8. New Research Perspectives and Implicit Managerial Competency Modeling in China Zhong-Ming Wang

265

Index

283

Contents of Previous Volumes

295

ABOUT THE EDITORS Cary L. Cooper Ivan T. Robertson

Manchester School of Management, University of Manchester Institute of Science and Technology, PO Box 88, Manchester, M60 1QD, UK.

Cary L. Cooper is currently BUPA Professor of Organizational Psychology and Health in the Manchester School of Management, and Deputy Vice-Chancellor (External Activities) of the University of Manchester Institute of Science and Technology (UMIST). He is the author of over 80 books (on occupational stress, women at work and industrial and organizational psychology), has written over 300 scholarly articles for academic journals, and is a frequent contributor to national newspapers, TV and radio. He is currently founding editor of the Journal of Organizational Behavior and co-editor of the medical journal Stress Medicine. He is a Fellow of the British Psychological Society, The Royal Society of Arts, The Royal Society of Medicine and the Royal Society of Health. Professor Cooper is the President of the British Academy of Management, is a Companion of the (British) Institute of Management and one of the first UKbased Fellows of the (American) Academy of Management (having also won the 1998 Distinguished Service Award for his contribution to management science from the Academy of Management). He is the editor (jointly with Professor Chris Argyris of Harvard Business School) of the international scholarly Blackwell Encyclopedia of Management (12-volume set). He has been an adviser to the World Health Organziation, ILO, and recently published a major report for the EU’s European Foundation for the Improvement of Living and Work Conditions on ‘Stress Prevention in the Workplace’. Professor Cooper was awarded the CBE (Commander of the Excellent Order of the British Empire) by the Queen in 2001 for his contribution to organizational health. Ivan T. Robertson is Professor of Work and Organizational Psychology in the Manchester School of Management, UMIST, and Pro-Vice-Chancellor of UMIST. He is a Fellow of the British Academy of Management, the British Psychological Society, and a Chartered Psychologist. Professor Robertson’s career includes several years experience working as an applied psychologist on a wide range of projects for a variety of different organizations. With Professor Cooper he founded Robertson Cooper Ltd (www.robertsoncooper.com), a business psychology firm which offers consultancy advice and products to clients. Professor Robertson’s research and teaching interests focus on individual differences and organizational factors related to human performance. His other publications include 25 books and over 150 scientific articles and conference papers.

CONTRIBUTORS Cary L. Cooper

University of Manchester Institute of Science and Technology, PO Box 88, Manchester M60 7QD, UK

James L. Farr

Department of Psychology, The Pennsylvania State University, 615 Moore Building, University Park, PA 16802, USA

Joanne H. Gavin

Department of Management, University of Texas, Box 19467, Arlington, TX 76019, USA

Sharon Glazer

Department of Psychology, San Jose State University, 1 Washington Square, San Jose, CA 95192-0120, USA

Mark A. Griffin

School of Management, Queensland University of Technology, PO Box 2434, Brisbane, Qld 4001, Australia

Boris Kabanoff


Angelo J. Kinicki

Department of Management, College of Business, Arizona State University, PO Box 874006, Tempe, A285287-4006, USA

Naomi I. Maierhofer


Frances M. McKee-Ryan Department of Management, West Virginia University, PO Box 6025, Morgantown, WV 26506-6025, USA Fiona Patterson

Institute of Work Psychology, University of Sheffield, Sheffield S10 2TN, UK

James C. Quick

Department of Management, University of Texas, Box 19467, Arlington, TX 76019, USA

Jonathan D. Quick

World Health Organization, Ave Appia, 1211 Geneva 27, Switzerland

x

INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002

Erika L. Ringseis

Faculty of Law, University of Calgary, 2500 University Drive NW, Calgary, ABT IN4, Canada

Anne Tsui

Department of Management of Organization, Hong Kong University of Science and Technology, Clear Water Bay, Hong Kong

Duanxu Wang

School of Management, Zhejiang University, Yuquan Campus, Hangzhou 310027, People’s Republic of China

Zhong-Ming Wang

School of Management, Zhejiang University, Xixi Campus, Hangzhou 310028, People’s Republic of China

EDITORIAL FOREWORD In this issue of the International Review of Industrial and Organizational Psychology we have some of the leading international scholars on a range of I/O psychology topics. We are revisiting the theme of Job Loss, with a superb upto-date account of state of the art research in this increasingly important area by Frances McKee-Ryan and Angelo Kinicki. Allied to this is the subject of the Older Worker, which is comprehensively reviewed by James Farr, which provides all researchers and practitioners with food for thought about where the science needs to go and what the implications for practice are in the future. Employment Relations as a whole is explored by Anne Tsui and Duanxu Wang, which puts into context some of the earlier chapters and provides us with a path forward not only for future research, but also in terms of practice in the world of work. Some of the newer areas of review are by Fiona Patterson in her piece ‘Great Minds Don’t Think Alike?’, which explores the field of managerial performance. Sharon Glazer helps us look at the areas of cross-cultural psychology as it applies to I/O Psychology, exploring the past, present and future research in this growing field. Jonathan Quick, Cary Cooper, Joanne Gavin and Jim Quick highlight another increasingly topical theme of Executive Health, exploring what has been done and what more needs to be done to promote enhanced executive well-being. The theme of Values and Culture in Organizations by Naomi Maierhofer, Boris Kabanoff and Mark Griffin is another very topical issue, particularly with the increasing interest in mergers and acquisitions and culture change projects throughout the developed and developing world. And finally, Zhong-Ming Wang updates us on the recent research in the field of I/O Psychology in China, where a great deal of scientific work has been carried out in recent years. We hope you will find these self-contained reviews bring a new dimension to your research and development and how this research might translate into effective practice. CLC ITR May 2001

Chapter 1 COPING WITH JOB LOSS: A LIFE-FACET PERSPECTIVE Frances M. McKee-Ryan West Virginia University, USA and Angelo J. Kinicki Arizona State University, USA Job loss is a life event in which paid employment is involuntarily taken away from an individual (Latack, Kinicki, & Prussia, 1995). Job loss (an event) is differentiated from unemployment (a state) by the notion of duration. That is, job loss leads to unemployment unless an individual becomes immediately employed following job displacement. Job loss and unemployment thus form a continuum in which job loss anchors one end and prolonged unemployment the other. We use the term job loss throughout this review to reflect the fact that job loss is a life event that must be adjusted to after the fact. Research on life event stressors reveals that job loss is a very stressful event (Hobson, Kamen, Szostek et al., 1998; Holmes & Rahe, 1967) that has been occurring in spite of strong global economies during the last five years. For example, 3.3 million workers were displaced in the US between 1997 and 1999, and there were an additional 15 738 mass layoff events in 2000 that affected 1 835 592 individuals (Bureau of Labor Statistics, 2001). While some countries experienced favorable unemployment rates in 2000 that were below 5% (e.g., Ireland, Mexico, Netherlands, Norway, United Kingdom, United States, Switzerland, and Sweden), others encountered unemployment rates greater than 8% (e.g., Finland, France, Germany, Italy, and Spain; Yardeni, 2001). All told, the Geneva-based International Labour Organization estimated that one billion people, 30% of the world’s workforce, were either jobless or unemployed in 2000 (Taylor, 2001). Unfortunately, the frequency of job loss around the world is not expected to abate in the future. These trends highlight the importance of understanding the effects of job loss and the process by which people cope with this work role transition.

International Review of Industrial and Organizational Psychology, 2002 Volume 17 Edited by C. L. Cooper and I. T. Robertson.  2002 John Wiley & Sons, Ltd.

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Research on job loss has been conducted throughout the world and generally falls into one of four general themes: documenting negative outcomes associated with job loss, investigating job loss interventions and job-search efforts aimed at increasing reemployment, examining how people cope with the stress and strain of unemployment, and examinations of the job search process following job loss. Due to the vast literature on job loss and the fact that Winefield (1995) and Hanisch (1999) recently summarized past research on this topic—Winefield completed his review in late 1993 and Hanisch’s review spanned 1994 to 1998—we focus on providing an overview of research pertaining to the first three general themes published since 1993. We do not review research pertaining to the job search process because it is summarized in a recent meta-analysis by Kanfer, Wanberg, and Kantrowitz (2001). This review is divided into five sections: (1) a review of research pertaining to the outcomes associated with job loss, (2) an examination of the effects associated with job loss interventions, (3) a review of research pertaining to antecedents and consequences of coping with job loss, (4) a discussion of a new approach—the life-facet model of coping with job loss—for studying the process of coping with job loss, and (5) conclusions and recommendations for future research.

THE OUTCOMES OF JOB LOSS Because job loss and unemployment have been related to a myriad of outcomes, we structure this section by reviewing research in terms of the outcome taxonomy suggested by Latack, Kinicki, and Prussia (1995). They propose that people attempt to maintain equilibrium in four key dimensions of their lives (i.e., economic, psychological, physiological, and social) following job loss. Economic Impacts The most obvious negative outcome of job loss is the loss of income. Negative economic impacts of job loss are well documented (e.g., Jackson, 1999; Kokko & Pukkinen, 1998; Liira & Leino-Arjas, 1999; Nordenmark & Strandh, 1999; Vinokur, Price, & Caplan, 1996), and the economic detriment of job loss increases as unemployment duration extends (e.g., Brief, Konovsky, Goodwin, & Link 1995; Huang & Perrucci, 1994; Kinicki, Prussia, & McKee-Ryan, 2000; Liira & Leino-Arjas, 1999; Sales, 1995). Reemployment earnings also tend to be lower than pre-job loss levels (Couch, 1998; Kong, Perrucci, & Perrucci, 1993; Perrucci, Perrucci, & Targ, 1997). Moreover, the financial impacts of job loss have been implicated in further detriment to the displaced worker on other outcomes (e.g., Turner, 1995). Experiencing both economic strain and psychological need because of unemployment resulted in lower psychological well-being for unemployed

COPING WITH JOB LOSS

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workers (Nordenmark & Strandh, 1999; Rantakeisu, Starrin, & Hagquist, 1999). Financial strains are negatively associated with well-being and positively linked to anxiety, depression, experiential deprivation, and emotional distress (e.g., Brief et al., 1995; Grossi, 1999; Shams, 1993; Wooten, Sulzer, & Cornwell, 1994). Economic strain positively predicts both job seeker and partner depression, diminished social support, less relationship satisfaction, and deterioration of parent–child relationships (e.g., Kong, Perrucci, and Perrucci, 1993; Ortiz & Farrell, 1993; Perrucci, 1994; Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996), while avoiding financial hardship increased the likelihood of perceiving job loss as a career growth opportunity (Eby & Buch, 1995). Results from two countries with differing levels of unemployment benefits reflect the importance of financial resources in the psychological outcomes of unemployment: In the Netherlands—a country with generous unemployment benefits—no differences were found in psychological distress among unemployed and employed workers (Schaufeli & van Yperen, 1993), while a study of unemployed women in Hong Kong found that 54% could be classified as ‘probable clinical cases’, a much higher percentage than found in samples from other countries. The authors attribute this difference to the lack of unemployment insurance benefits available to these women (Lai, Chan, & Luk, 1997). In sum, job loss and unemployment are associated with economic strains, which in turn influence other aspects of a person’s life. These results are consistent with those reported in previous reviews (Hanisch, 1999; Winefield, 1995) and highlight the importance of examining a broader range of impacts resulting from displacement (cf. Latack, Kinicki, & Prussia, 1995; Winkelmann & Winkelmann, 1998). Psychological Impacts As with the research on the economic detriments of job loss, the preponderance of research on the psychological effects of job loss reflects a negative impact on a wide array of outcomes for the displaced worker. Job loss was identified as the life event with the most detrimental effect on psychological well-being in men (Iwasaki & Smale, 1998), and the unemployed show lower well-being (e.g., Kabbe, Setterlind, & Svensson, 1996; Marks & Fleming, 1999; Shams & Jackson, 1994) and higher psychological distress (e.g., Jackson, 1999; Lai, Chan, & Luk, 1997; Leana & Feldman, 1995; Liira & LeinoArjas, 1999; Viinamäki, Koskela, & Niskanen, 1993) than their employed counterparts. Job loss and unemployment are negatively related to mental health (e.g., Gallo, Bradley, Siegel, & Kasl, 2000; Wanberg, 1995) and positively linked to anxiety (e.g., Fergusson, Horwood, & Lynskey, 1997; Hamilton, Hoffman, Broman, & Rauma, 1993; Kabbe, Setterlind, & Svensson, 1996; Lai, Chan, & Luk, 1997; Leana & Feldman, 1995; Miller & Hoppe, 1994; Rasky, Stronegger, & Freidl, 1996; Theodossiou, 1998),

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hostility (e.g., Perrucci, 1994), and anger (Archer & Rhodes, 1995). The unemployed are confronted with shaming experiences (e.g., Rantakeisu, Starrin, & Hagquist, 1999), tend to see themselves in less positive terms than do the employed (e.g., Sheeran, Abrams, & Orbell, 1995; Sheeran & Abraham, 1994; Singh, Singh, & Rani, 1996; Walsh & Jackson, 1995), and may display a ‘grief-like response’ to unemployment (Archer & Rhodes, 1993, 1995). As with economic impacts, many psychological detriments increase as unemployment persists (e.g., Fergusson, Horwood, & Lynskey, 1997; Liira & LeinoArjas, 1999; Shams & Jackson, 1994; Underlid, 1996; Viinamäki, Koskela, & Niskanen, 1996). Depression is among the most often studied and most pervasive job loss outcomes (e.g., Crepet, Piazzi, Vetrone, & Costa, 1993; Dooley, Catalano, & Wilson, 1994; Ginexi, Howe, & Caplan, 2000; Hamilton et al., 1993; Jex, Cvetanovski, & Allen, 1994; Kokko & Pukkinen, 1998; Liira & Leino-Arjas, 1999; Miller & Hoppe, 1994; Theodossiou, 1998; Turner, 1995; Underlid, 1996; Viinamäki, Koskela, & Niskanen, 1993, 1996; Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996; Wooten, Sulzer, & Cornwell, 1994). Studies comparing unemployed and employed samples consistently find greater evidence of depression for the unemployed groups, even when controlling for demographic risk factors. For example, a recent meta-analysis of five studies involving 1509 displaced workers found a corrected correlation of 0.54 between becoming unemployed and depressive affect (Murphy & Athanasou, 1999). Results are less consistent for the impact of job loss on self-esteem. Three studies found no differences between the unemployed and employed on levels of self-esteem (e.g., Creed, 1999; Kinicki, Prussia, & McKee-Ryan, 2000; Tiggemann & Winefield, 1984), while two others found the unemployed to have lower self-esteem (Muller, Hicks & Winocur, 1993; Theodossiou, 1998). Other studies found that self-esteem diminished for women, but not men (Goldsmith, Veum, & Darity, 1997) and for the long-term unemployed, but not for the short-term unemployed or employed (Sheeran, Abrams, & Orbell, 1995), while self-esteem increased significantly for those students who became satisfactorily employed upon leaving school. Levels did not change for those who were unemployed or dissatisfactorily reemployed (Dooley & Prause, 1997). In a test of self-esteem as a moderator between job loss and psychological strain, there were no moderating effects for men and only partial support for women (Jex, Cvetanovski, & Allen, 1994). These inconsistent results may be explained by the effect of prior expectations on self-esteem (Winefield & Tiggemann, 1994) and the fact that self-esteem is a stable characteristic that takes a long time to change. Turning our attention to the importance of optimism in confronting unemployment, recent research highlights the protective effect of high self-esteem and optimism on outcomes for displaced workers. First, unemployed workers with high self-esteem demonstrate an optimistic response bias. High self-

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esteem participants tend to underestimate changes for the worse over time and to overestimate improvements in unstable or ambiguous situations (Foster & Caplan, 1994). Two studies showed that those who became reemployed had reported higher initial levels of optimism than those who remained unemployed over time (Leana & Feldman, 1995; Wanberg, 1995), while another demonstrated that less optimistic women were more likely to be psychologically damaged than their more optimistic counterparts (Lai & Wong, 1998). The attributions made for job loss also influence the reaction to job loss (cf. Thomson, 1997). Making an internal attribution for job loss is associated with negative outcomes, while external attributions exhibit a protective effect from negative outcomes (e.g., Miller & Hoppe, 1994; Najam, Ashraf, Nasreen, Bashir, & Khan, 1995; Prussia, Kinicki, & Bracker, 1993). Similarly, Broman, Hoffman, and Hamilton (1994) highlight the role of self-blame in the increased depression and anxiety over time of workers who seek mental health services. These results differ from previous results of two studies cited by Winefield (1995) in which the attribution for job loss did not affect outcomes. Another recent trend suggests that perceptions of control over the situation are positive for the unemployed worker. For example, an internal locus of control predicted the likelihood of gaining full-time permanent employment (e.g., Ginexi, Howe, & Caplan, 2000) and was negatively related to depression and anxiety (Shams & Jackson, 1994). Another important variable in job loss is the degree of time structure. The unemployed tend to display less time structure than the employed (e.g. Jackson, 1999) and moving from unemployment to employment can increase time structure (e.g. Wanberg, Griffiths, & Gavin, 1997). However, the unemployed are not homogeneous in their activity level and the more the time of the unemployed is filled, the better their mental health (Underlid, 1996). Increased time structure is associated with improved mental health (Wanberg, Griffiths, & Gavin, 1997), diminished distress, and improved chances of reemployment (e.g., Jackson, 1999). Similarly, involvement in non-work activities is negatively related to distress (Gowan, Riordan, & Gatewood, 1999). In summary, consistent with Hanisch (1999) and Winefield (1995) we find that unemployment is related to a host of deleterious outcomes for the displaced worker. Recent research suggests that high levels of self-esteem, optimism, the ability to make an external attribution for job loss, and an internal locus of control may be important resources for workers faced with job loss. Physical Health Impacts Unemployment is linked to physical health in two ways: changes in reported symptoms, levels of health and disease and changes in health-related behaviors. Each is discussed in turn. Employment was positively related to health (Ross & Mirowsky, 1995), while unemployment was linked to increased physical illness (e.g., Schwarzer, Jerusalem, & Hahn, 1994;


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Turner, 1995) and health complaints (e.g., Schwarzer, Jerusalem, & Hahn, 1994) and to diminished physical functioning (Gallo et al., 2000), health (e.g., Roberts, Pearson, Madeley, Hanford, & Magowan, 1997), and vigor (Muller, Hicks, & Winocur, 1993). The unemployed display higher blood pressure, anxiety, sleeping disorders, lack of appetite, chronic diseases, gastrointestinal diseases, chronic liver disease, and respiratory disease (cf., Rasky, Stronegger, & Freidl, 1996). One study found that the unemployed displayed more headaches and sleep problems, but did not rate their physical health as any worse than the employed (Kabbe, Setterlind, & Svensson, 1996). Unemployed workers with high levels of psychosomatic symptoms were worse off than their employed and low-symptom counterparts (Viinamäki, Koskela, & Niskanen, 1993). Similarly, Grossi, Ahs, and Lundberg’s (1998) lab study of the effects of a stressful task on the unemployed showed that low baseline levels of salivary cortisol and low reactivity to stressors were linked to negative outcomes for the worker, reflecting negative affectivity and emotional withdrawal. Thus unemployment is linked to negative health outcomes for the displaced worker. The next set of studies examined the impact of unemployment on health behavior of the unemployed. Unemployment is linked to an increase in high-risk health behaviors (Rasky, Stronegger, & Freidl, 1996), and the lifestyle factors of addictive behaviors were better predictors of long-term unemployment than were health variables (Liira & Leino-Arjas, 1999). For example, unemployment was related to increased alcohol use and abuse in four studies (Catalano, Dooley, Wilson, & Hough, 1993; Claussen, 1999; Rasky, Stronegger, & Freidl, 1996; Viinamäki, Niskanen, Koskela, & Kontula, 1995), but was unrelated in another study (Kabbe, Setterlind, & Svensson, 1996). Mittag and Schwarzer (1993) found that self-efficacy moderated alcohol use among unemployed men. One community study found widespread behavioral differences between the unemployed and employed: The unemployed drank more alcohol and smoked more, they were less likely to have physical activity, brush their teeth, or to try to lose weight or diet, and they were more likely to take sleeping pills or see a general practitioner than were the employed (Rasky, Stronegger, & Freidl, 1996). One study, in contrast, found more positive changes in health behaviors for unemployed rather than employed workers among workers in physically strenuous jobs (Liira & Leino-Arjas, 1999). Taken together, however, recent results continue to demonstrate negative impacts of unemployment on physical health and physical health behaviors identified previously (e.g., Hanisch, 1999; Winefield, 1995). Social Impacts The social impact of job loss comprises the social activities, levels of social support, and the impact on the spouse and family of the displaced worker.



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The unemployed tend to be less involved in social activities over time (Underlid, 1996). Unemployment is also linked to increased social dysfunction (Lai, Chan, & Luk, 1997), family violence (Schliebner & Peregoy, 1994), and violent behavior (Catalano, Dooley, Novaco, Wilson, & Hough, 1993). Moreover, unemployment affects social support. The unemployed report lower levels of social support in three studies (Jackson, 1999; Kinicki, Prussia, & McKee-Ryan, 2000; Viinamäki, Koskela, & Niskanen, 1993), but not in another (Schwarzer, Jerusalem, & Hahn, 1994), while two studies showed that social support diminishes as unemployment persists (Kinicki, Prussia, & McKee-Ryan, 2000; Kong, Perrucci, & Perrucci, 1993). Moreover, possessing low levels of social support has negative effects on general and mental health (Roberts et al., 1997). For example, lacking social support is linked to facing greater problem severity and the use of avoidance coping (Walsh & Jackson, 1995), as well as increased illness (Schwarzer, Jerusalem, & Hahn, 1994), psychosomatic symptoms (Viinamäki, Koskela, & Niskanen, 1993), emotional stress (Jackson, 1999), and depression (Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996). Social support (Jackson, 1999) and job-seeking support (Wanberg, Watt, & Rumsey, 1996) also predicted reemployment and job search intensity (Rife & Belcher, 1993). Consistent with Winefield’s (1995) conclusion, social support appears to be an important resource for displaced workers. Such support may come from a spouse or other family member(s). For example, being in a de facto relationship was associated with improved subjective well-being (Marks & Fleming, 1999) and those with a working spouse were less likely to be classified as having high levels of psychosomatic symptoms (Viinamäki, Koskela, & Niskanen, 1993). Family support also combined with other resources to predict psychological well-being, anxiety, and depression (Shams, 1993), while family strength was a negative predictor of depression (Vosler & Page-Adams, 1996). As for impacts on the spouse and family of the displaced worker, research revealed that job loss is not an individual issue, but a household concern, affecting spouses (e.g., Howe, Caplan, Foster, Lockshin, & McGrath, 1995; Huang & Perrucci, 1994; Vinokur, Price, & Caplan, 1996; Walsh & Jackson, 1995) and families (Perrucci, 1994; Schliebner & Peregoy, 1994). These findings are consistent with those summarized by Hanisch (1999). In sum, research to date demonstrated negative effects across the economic, psychological, physiological, and social aspects of the life of the displaced worker (Latack, Kinicki, & Prussia, 1995). We now turn our attention to job loss interventions.

JOB LOSS INTERVENTIONS Hanisch (1999) reviewed intervention research and noted the beneficial effects of stress management (Maysent & Spera, 1995), expressive writing


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(Spera, Buhrfeind, & Pennebaker, 1994), Job Clubs (Rife & Belcher, 1994), and the JOBS program (e.g., Caplan, Vinokur, & Price, 1997; Vinokur, Price, & Schul, 1995) on the well-being and reemployment of participants. She also noted that interventions should be specifically developed for men and women, older workers, and the families of displaced workers. Our review shows that these trends continued, as recent interventions were targeted at a variety of groups and continue to show positive outcomes. Interventions generated positive psychological effects (e.g., Bikos & Furry, 1999; Creed, Hicks, & Machin, 1998; Saam, Wodtke, & Hains, 1995; Vinokur, Schul, Vuori, & Price, 2000) and bolstered the likelihood of reemployment (e.g., Eden & Aviram, 1993; Saam, Wodtke, & Hains, 1995; Vinokur et al., 2000; Vuori & Vesalainen, 1999). Only one study found no differences between participants and controls on reemployment after 3 months (Creed et al., 1998). This may reflect a tendency to publish only positive results. Further, it appears that interventions disproportionately benefit those who are most at risk for the negative outcomes of job loss, such as those with low selfefficacy and high levels of depression (e.g., Creed, Hicks, & Machin, 1998; Eden & Aviram, 1993; Vinokur, Price, & Schul, 1995; Vinokur et al., 2000) suggesting that interventions should be specifically targeted to at-risk displaced workers.

COPING WITH JOB LOSS Coping is defined as cognitive and behavioral efforts to manage the internal and external demands associated with person–situation transactions that tax or exceed a person’s resources (Folkman, Lazarus, Dunkel-Schetter, DeLongis, & Gruen, 1986). This definition highlights that coping is distinct from coping effectiveness. That is, coping is defined in terms of what people do in specific situations without reference to whether or not it works (Latack & Havlovic, 1992). Coping theory is based on the notion that individuals first appraise a situation as harm/loss, threat, or challenge, and then engage in different coping strategies aimed at resolving the stressful situation. In terms of job loss, it is generally expected that displaced workers who effectively cope with job loss will experience more favorable psychological and mental health outcomes and obtain more satisfactory reemployment than those who ineffectively cope with displacement (Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1995; Kinicki, Prussia, & McKee-Ryan, 2000). Coping has generally been classified into two general categories: problem/ control-focused coping and emotion/escape-focused coping: Different names are used by different authors when describing the same basic coping strategy. Problem/control-oriented coping is aimed at directly addressing the root of the problem, while emotion/escape-related coping seeks to manage the emotional



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response to the stressor (Lazarus & Folkman, 1984). A third category, symptom management coping, also was proposed (Leana & Feldman, 1990). This strategy consists of those activities an individual uses to alleviate the consequences of a stressful event. Hanisch (1999) notes that this strategy encompasses activities that are generally included in the broader category of emotion/ escape-focused coping. In order to structure our review in this section, we examine the measures of coping with job loss, discuss the antecedents and consequences of coping with job loss, and attempt to reconcile inconsistencies in past research by highlighting the role of personal meaning and coping goals within the coping process. Coping Measures Coping is a situationally specific phenomenon that must be studied in relation to a specific stressful encounter (Lazarus & Folkman, 1984). This implies that job loss researchers should use customized measures designed to expressly assess coping with job loss (Latack, Kinicki, & Prussia, 1995). Kinicki and Latack (1990) and Leana and Feldman (1990) developed such measures. Kinicki and Latack’s Coping with Job Loss Scale (CWJLS) is composed of three control-focused dimensions (proactive search, non-work organization, and positive self-assessment) and two forms of escape-focused coping (distancing from loss and job devaluation). Leana and Feldman’s (1990) scales assess one dimension for problem-focused coping (i.e., behaviors associated with job search, retraining efforts and seeking geographical relocation) and one for symptom-focused coping (i.e., behaviors associated with seeking financial assistance and social support, and becoming involved in community activities). The reliability and factor structure of the CWJLS was supported by judge analysis and exploratory and confirmatory factor analysis (Kinicki & Latack, 1990; Kinicki, Prussia, & McKee-Ryan, 2000; Wanberg, 1997). The reliability and two-factor structure of Leana and Feldman’s scales were supported by Leana and Feldman (1990). We located 16 studies that empirically examined coping with job loss. Of these, five used the coping with job loss scales developed by Kinicki and Latack (1990; Gowan, Riordan, & Gatewood, 1999; Kinicki & Latack, 1990; Kinicki, Prussia, & McKee-Ryan, 2000; Lai & Wong, 1998; Wanberg, 1997), six used Leana and Feldman’s (1990) measures (Bennett, Martin, Bies, & Brockner, 1995; Leana & Feldman, 1990; 1991; 1995; Leana, Feldman, & Tan, 1998; Malen & Stroh, 1998), three relied on modifications of Folkman et al.’s (1986) Ways of Coping Checklist (Frese, Fay, Hilburger, Leng, & Tag, 1997; Grossi, 1999; Walsh & Jackson, 1995), and two used ad hoc scales (Cassidy, 1994; Schaufeli & VanYperen, 1993). Because the Ways of Coping Checklist contains serious psychometric short-comings (Parker, Endler, & Bagby, 1993; Wineman, Durand, & McCulloch, 1994) and does not specifically measure coping with job loss, results based on these measures and the ad


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hoc scales must be interpreted with caution. Although research is still needed to improve the psychometric properties of both the CWJLS and Leana and Feldman’s scales, we recommend that future research rely on coping scales specifically designed for a job loss context. Antecedents and Outcomes of Coping with Job Loss Antecedents of coping Perceptions or attributions about job loss, cognitive appraisal, emotional arousal, coping goals, and coping resources (which include individual characteristics [internal] and environmental objects or conditions [external] a person can draw upon to cope with job loss) are theoretically predicted to influence the choice of a coping strategy following job displacement (e.g., Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1988; Prussia, Kinicki, & Bracker, 1993; Thomson, 1997). Unfortunately, research does not support any clear pattern of relationships between these antecedents and coping. For example, problem/control-focused coping was positively (Grossi, 1999) and negatively related (Leana & Feldman, 1991) to marital status, gender obtained both significant (Leana & Feldman, 1991; Malen & Stroh, 1998) and insignificant (Walsh & Jackson, 1995) relationships with problem-focused and escape/symptom-focused coping, and financial resources were negatively associated with problem-focused coping and unrelated to escape coping (i.e., distancing from job loss). Gowan, Riordan, and Gatewood’s (1999) longitudinal covariance structure analysis further demonstrated that social support was positively associated with both job search activities (i.e., problem-focused coping) and the escapefocused dimension of distancing from job loss, while education and financial resources displayed inconsistent patterns with these two coping strategies during the same time frame. Kinicki, Prussia, and McKee-Ryan’s (2000) results are similar to Gowan, Riordan, and Gatewood’s in that the predictors of problemand emotion-focused coping changed over time. Economic discrepancy was positively related to problem-focused coping both in the anticipatory stage of job loss and 4 months following displacement (i.e., outcome stage), but only to emotion-focused coping in the outcome stage. Further, the coping resources of self-esteem, life satisfaction, and social support were associated with decreased emotion-focused coping at the anticipatory state, and increased problem-focused coping at the outcome stage. Finally, Kinicki and Latack (1990), Leana and Feldman (1990), and Wanberg (1997) similarly failed to uncover common predictors of problem-focused or emotion-focused strategies. Outcomes of coping Despite evidence showing that job search behaviors are related to reemployment (e.g., Kanfer, Wanberg, & Kantrowitz, 2001; Schaufeli & VanYperen,



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1993; Wanberg, 1997; Wanberg, Kanfer, & Rotundo, 1999), four studies documented that problem-focused coping did not facilitate reemployment. Kinicki, Prussia, and McKee-Ryan’s (2000) results revealed that problemfocused coping between the time the layoff notification was received and actual displacement was unrelated to the quality of reemployment 4 months later. Cassidy (1994) found that unemployed university graduates used more problem-focused coping following graduation than employed graduates. Further, the problem-focused strategy of job search activities was not significantly associated with reemployment, while the escape strategy of distancing from job loss was positively related to reemployment after 6 months (Gowan, Riordan, & Gatewood, 1999). Leana and Feldman’s (1995) study showed that displaced workers who were reemployed 9 months after a plant closing used more problem- and symptom-focused coping during the first wave of data collection than did unemployed individuals. Contrary to expectations, however, the reemployed also engaged in the escape-focused strategy of psychological distancing at time 1 more so than those still unemployed at time 2. With respect to psychological outcomes, neither problem- nor escaperelated coping predicted mental health measured after a 3-month time lag (Wanberg, 1997), and Leana and Feldman’s (1990) cross-sectional study of two different samples failed to uncover any significant relationships between either problem- or symptom-related coping and life satisfaction. Similarly, Gowan, Riordan, and Gatewood’s (1999) results revealed that problemfocused coping was unrelated to distress, but emotion-focused coping (i.e., distancing) was negatively linked to distress 6 months later. Two crosssectional studies reinforced this later finding. Emotion-focused coping was negatively related to emotional distress (Grossi, 1999) and general health (Lai & Wong, 1998). Summary and recommendations Past research has uncovered neither common predictors nor common outcomes of engaging problem/control-focused and emotion/escape/symptomfocused coping strategies. Taken together with recent research suggesting that a particular cognition or behavior may have elements of both problem- and emotion-focused coping (Latack & Havlovic, 1992) and methodological concerns regarding coping measurement (cf. Dewe & Guest, 1990; O’Driscoll & Cooper, 1994), future research should reconceptualize how we model coping strategies within the process of coping with job loss. We propose that increased understanding into the process of coping with job loss can be enhanced by considering the role of the personal meaning of the job loss transition to a displaced worker. Our belief is that the inconsistency found in past research is partially due to the idiosyncratic nature in which people appraise job loss and to the subsequent coping goals that people pursue in an attempt to deal with their appraisals. Drawing from Latack,


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Kinicki, and Prussia’s (1995) model of coping with job loss, the next section explores the nature of the personal meaning of job loss and the role of coping goals in explicating the process of coping with job loss.

Personal Meaning of Job Loss to an Individual and Coping Goals Fineman (1983) was one of the first researchers to assert that individuals differ in the meaning they ascribe to losing their jobs. He suggested that job loss can be debilitating and stressful for some individuals while at the same time representing an invigorating and uplifting experience for others. His views suggest that the personal meaning of job displacement is an important variable in the process of coping with job loss. Despite the inclusion of personal (DeFrank & Ivancevich, 1986) and personality moderators (Leana & Feldman, 1988) in conceptual models of coping with job loss, however, most of the previous empirical research operated under the implicit or explicit assumption that job loss is perceived homogeneously by all displaced employees. In contrast to this view, and consistent with Fineman’s perspective, Latack, Kinicki, and Prussia (1995) proposed that individuals interpret and respond to job displacement according to their own needs and values and that job loss is experienced differently by individuals. Indirect evidence supports this proposition. Personal meaning of job loss Past research has examined two related issues pertaining to the meaning of job loss. The first seeks to characterize how different subgroups react to job loss, while the second seeks to understand whether or not people pursue different coping goals in response to being displaced. In the first general vein, the notion that reactions to job loss differ for various groups is generating theoretical and empirical support. Price, Friedland, and Vinokur (1998) hypothesize that job loss impacts lower level employees economically, while professional employees are more likely to experience a threat to their identity. Payne and Jones’ (1987) results comparing unemployed and reemployed workers who were either working class or middle class revealed differing patterns of outcomes by employment status for the working- and middle-class groups and significant interactions between class and employment status. They conclude that the meaning of employment differed by class or occupation level. Turner (1995) found that financial strain explained significantly more variance in depression for those without a college education than for those with a degree. The detrimental effects of job loss were limited to college graduates when the individual became reemployed in a secure job. Along the same lines, Wanberg and Marchese (1994) found four distinct clusters of job losers, each identified by a different set of concerns resulting from the job loss (confident but concerned,



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distressed, unconcerned and indifferent, and optimistic and coping). This stream of research suggests that the meaning of job loss differs for various groups of displaced workers. Related research also is accumulating to suggest that the individual experience of job loss varies as well. For example, Wheaton (1990) argued that the role context prior to job loss influences the meaning of the event for the individual, such that experiencing a high degree of role stress prior to losing a job diminishes the impact of the event. Similarly, Latack and Dozier (1986) submit that job loss can be appraised as a challenge or opportunity for the job loser, and can thus be seen as an opportunity for growth. Coping goals The way that an individual copes with job loss differs based upon the personal meaning of the job loss event. Latack, Kinicki, and Prussia (1995) theoretically expanded on this idea by proposing that coping goals mediate the relationship between the appraisal of job loss and the choice of coping strategies. According to these authors, ‘a coping goal represents an individual’s desired end result that he or she seeks to accomplish in response to a perceived harm/loss or threat’ (p. 323). This implies that displacement leads an individual to establish a relevant coping goal (e.g., reemployment, retirement, go back to school, take time off to regroup). Displaced workers thus are expected to pursue specific coping strategies involving cognitive and/or behavioral activities that are driven by specific coping goals. For example, a displaced worker might spend time hiking or take time to visit family members in another country if his/her goal is to reduce the strain and anxiety associated with unemployment. Oppositely, a person is more likely to attend outplacement services if financial pressures spawn a coping goal to become reemployed as quickly as possible. Recent research in the job loss literature reinforces the hypothesis that people establish different coping goals after becoming displaced. Two studies demonstrated that people pursue different coping goals (Pernice, 1996; Tang & Crofford, 1999) such as finding another job immediately, taking some time off before looking for a job, finding alternatives to employment (e.g., leisure or volunteer work), retiring, or going back to school/seeking training. Moreover, the congruence or match between coping decisions (i.e., goals) and objective outcomes was the strongest predictor of depression among unemployed autoworkers (Hamilton et al., 1993). Specifically, those that wanted a job and got one, didn’t want a job and didn’t get one, or didn’t like their job and subsequently lost it were significantly less depressed than individuals with a mismatch between goals and outcomes. Hamilton et al. conclude that ‘the objective reality of unemployment builds a subjective world for the worker who experiences it’ (p. 243). Most recently, Prussia, Fugate, and Kinicki (2001) conducted an 18-month study of 126 employees whose plant had closed. Results from a covariance


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structure analysis revealed that the intensity of displaced workers’ reemployment coping goal was positively related to the effort they put into seeking reemployment. Those displaced workers with higher reemployment goal intensity pursued reemployment with greater earnest, which in turn influenced the likelihood of becoming reemployed. Summary and recommendations The implication of research reviewed in this section is that individuals do not respond to unemployment in a homogeneous way. This conclusion helps to understand the inconsistent relationships between coping strategies and outcomes. It appears that people vary their coping strategies to accomplish different coping goals. This further implies that the directional relationship between coping strategies and outcomes is not the same for any given sample of displaced workers. All told then, there appears to be support for our proposition that deeper insight into the process by which displaced workers cope with job loss can be achieved by including a role for individuals’ personal meanings and coping goals into future research.

LIFE-FACET MODEL OF COPING WITH JOB LOSS Our proposed model jointly builds on past research and Latack, Kinicki, and Prussia’s (1995) cybernetic model of coping with job loss. They hypothesize that individuals compare their status on four life facets (economic, psychological, physiological, and social) with a referent goal or standard following job displacement. The next step in the coping process represents a discrepancy appraisal: a cognitive assessment of whether the discrepancies in life facets represent harm/loss or threat. In turn, these discrepancy appraisals lead to coping goals. Coping efficacy, defined as an individual’s belief about successfully enacting various coping strategies, is predicted to moderate this relationship. The coping process continues as people begin to enact coping strategies aimed at pursuing different coping goals. Latack, Kinicki, and Prussia also propose that coping resources directly influence discrepancy appraisals and the choice of coping strategies. Finally, the cybernetic process results in the coping strategies influencing either the referent goal or standard or a feedback sensor. Although this model represents a significant integration of past research and is beginning to generate positive empirical verification (e.g., Prussia, Fugate, & Kinicki, 2001), we believe it contains three theoretical deficiencies. First, Latack, Kinicki, and Prussia (1995) identified four job loss discrepancy facets that are clearly relevant to displaced workers. That said, however, other literatures suggest that there are additional life facets that should be considered in the process of coping with job loss. Consider spirituality. Shams



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and Jackson’s (1993) study of 139 employed and unemployed individuals in England showed that religiosity had both a positive direct effect on psychological well-being and moderated the impact of unemployment on well-being. Additional life facets need to be included in Latack, Kinicki, and Prussia’s model. Second, Latack, Kinicki, and Prussia hypothesized that the accumulation of discrepancies on the life facets manifests in the intensity of the harm/ loss or threat appraisal. Based on the personal meaning perspective, we propose that it is important to ‘unbundle’ appraisal into its component parts because amalgamating appraisal dimensions reduces the explanatory power provided by the facet discrepancy appraisal approach. Recall that past research on the antecedents and outcomes of coping with job loss demonstrated that the amalgamation of coping strategies led to inconsistent results. Rather than continuing to mask the underlying relationship between appraisal and coping with a lack of specificity in theory and measurement, we propose a more detailed facet model that includes a one-to-one correspondence between facet appraisals, coping goals, and facet coping. Third, Latack, Kinicki, and Prussia’s model does not completely incorporate a consideration of personal meaning of the job loss event. For example, they do not incorporate any variables or processes to explain how the alignment of coping goals and coping strategies directly influences outcomes (cf. Hamilton et al., 1993; Prussia, Fugate, & Kinicki, in press). We model a variable to explicitly assess this alignment. The proposed model—shown in Figure 1.1—builds on the three limitations noted above and provides additional theoretical specificity throughout the coping process. Figure 1.1 shows that there are three exogenous variables predicted to influence all seven facet appraisals: work role centrality, coping resources, and demographic characteristics. These variables represent important personal characteristics and coping resources that affect the appraised meaning of the job loss event and place the event within a personal context. In turn, the seven facet appraisals are hypothesized to impact seven corresponding facet coping goals in a one-to-one fashion: Coping efficacy moderates this relationship. People are expected to set coping goals to resolve negative appraisals when they believe they are capable of coping with the facet at hand. The seven facet coping goals are then hypothesized to directly influence their same dimension of facet coping, which also is moderated by coping efficacy. In order to account for the role played by the match between a person’s coping goal and his/her coping efforts, we include a variable to represent the alignment between facet coping goals and facet coping strategies. Finally, it is predicted that subjective well-being and quality of reemployment are positively influenced by the alignment between coping goals and coping strategies. Over time, Figure 1.1 shows that the status of subjective well-being and quality of reemployment feedback to affect work-role centrality and coping resources. We now consider the individual components of the model depicted in Figure 1.1.


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Exogenous Variables as Predictors of Facet Appraisals Figure 1.1 contains three sets of exogenous variables—work-role centrality, coping resources, and demographic variables—predicted to influence appraised discrepancies, which were derived from previous coping (e.g., Lazarus & Folkman, 1984) and job loss research (e.g., Kinicki & Latack, 1990; Lai & Wong, 1998; Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1988, 1990; 1992, 1995; Leana, Feldman, & Tan, 1998; Price, Friedland, & Vinokur, 1998; Wanberg & Marchese, 1994; Wanberg, Watt, & Rumsey, 1996; Wanberg, Kanfer, & Rotundo, 1999). These variables represent important personal characteristics and coping resources that influence the appraised meaning of the job loss event. That is to say, these variables differentially affect facet appraisals. Facet appraisals Stress and coping research highlights the role of appraisal in the stress reaction (cf. Latack, Kinicki, & Prussia, 1995; Warr, Jackson, & Banks, 1988). How the individual appraises a situation—the subjective, cognitive assessment of the stressor—is a critical component in the stress and coping process. Facet appraisals exist when there is divergence between current and desired states along a particular life dimension. Whereas previous conceptualizations of appraisal have been focused on an overall, gestalt meaning to the individual, the facet approach focuses on specific life facets that are impacted by job loss. Latack, Kinicki, and Prussia outlined four life dimensions on which displaced workers may experience appraisals and we identified three additional life facets potentially impacted by job loss in the literature: spiritual, daily routine, and sense of purpose. The seven resulting facets are depicted in Figure 1.1 and outlined below. Psychological appraisals represent the psychological impact of job loss, including the mental, cognitive, emotional, and intellectual effects. Physiological appraisals include the physical reaction to the job loss, such as somatic complaints, illness, weight loss or gain, and change in physical health. Spiritual appraisals reflect detriment to a connection to something greater than oneself. Daily routine appraisals include diminished structure to one’s daily activities. Sense of purpose appraisals reflect damage to one’s sense of purpose in life. Social appraisals entail the loss of important social relationships or the ability to interact socially. Financial appraisals encompass the loss of income and inability to meet financial obligations following job loss. We now turn our attention to the exogenous variables as predictors of particular facet appraisals, noting that the exogenous variables are predicted to differentially affect the seven facet appraisals. Work-role centrality Work-role centrality represents the importance of the work role to the person’s sense of self. The link between work-role centrality and appraisal arises from


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research indicating that the more central a role to the person’s sense of self or identity, the greater impact of the loss of that role (e.g., Ashforth, 2001; Burke, 1991; Ganzevoort, 1998; Thoits, 1991, 1995). Within a job loss setting, work-role centrality and the related concept of employment commitment have been linked to psychological, spiritual, sense of purpose, and social impacts of job loss (e.g., Kinicki, 1989; Price, Friedland, & Vinokur, 1998; Warr, Jackson, & Banks, 1988; Wanberg & Marchese, 1994) for the displaced worker. Coping resources Latack, Kinicki, and Prussia (1995) propose a direct effect of coping resources on appraisals. In general, resources lessen the impact of a stressful event such that the presence of resources should be negatively associated with appraisals (e.g., Aspinwall & Taylor, 1997; Latack, Kinicki, & Prussia, 1995; Lazarus & Folkman, 1984). This set of relationships is based upon Hobfoll’s resource conservation theory (e.g., Hobfoll, 1989; Hobfoll, Banerjee, & Britton, 1994; Hobfoll, Freedy, Green, & Solomon, 1996; Hobfoll, Freedy, Lane, & Geller, 1990) Three resources are particularly relevant for coping with job loss: personal, social, and financial resources. Personal resources are internal resources upon which an individual may draw to cope with job loss and comprise self-esteem and optimism, an internal locus of control, and good physical health. Personal resources influence the appraisal of a stressor, such that a high level of resources is negatively related to appraisal (e.g., Hobfoll et al., 1989, 1990, 1994, 1996; Latack, Kinicki, & Prussia, 1995; Lazarus & Folkman, 1984). That is to say, possessing personal resources diminishes appraisals. Personal resources are predicted to decrease psychological, physiological, and spiritual appraisals (e.g., Dooley & Prause, 1997; Foster & Caplan, 1994; Ganzevoort, 1998; Ginexi, Howe, & Caplan, 2000; Kinicki & Latack, 1990; Kinicki, Prussia, & McKee-Ryan, 2000; Lai & Wong, 1998; Leana & Feldman, 1995; Shams & Jackson, 1994; Vosler & Page-Adams, 1996; Wanberg, 1995, 1997). Social resources comprise social support, defined as instrumental and emotional aid exchanged through social interactions (Latack, Kinicki, & Prussia, 1995). Conceptual models suggest that social resources play a significant role in coping with job loss (Ashforth, 2001; DeFrank & Ivancevich, 1986; Hobfoll et al., 1990; Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1988), and empirical results provide support for this assertion (e.g., Kinicki & Latack, 1990; Kinicki, Prussia, & McKee-Ryan, 2000; Kong, Perrucci, & Perrucci, 1993; Leana & Feldman, 1995; Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996). Social resources are predicted to negatively relate to appraisals, as predicted by the direct effects model of social support (cf. Kinicki, McKee, & Wade, 1996). In particular, social resources are predicted to affect psychological, physiological, daily routine, and social appraisals (e.g.,



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Jackson, 1999; Kinicki, Prussia, & McKee-Ryan, 2000; Kong, Perrucci, & Perrucci, 1993; Roberts et al., 1997; Schwarzer, Jerusalem, & Hahn, 1994; Viinamäki, Koskela, & Niskanen, 1993; Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996; Walsh & Jackson, 1995) The most obvious effect of displacement is to reduce or completely remove income. Many of the negative effects of job loss are traced to this removal of income (e.g., Price, Friedland, & Vinokur, 1998; Turner, 1995). Therefore, possessing financial resources such as adequate household income, cash reserves or savings, liquid assets, or severance pay is expected to alleviate these detriments (e.g., Aspinwall & Taylor, 1997; Latack, Kinicki, & Prussia, 1995; Lazarus & Folkman, 1984; Leana, Feldman, & Tan, 1998). Hobfoll et al. (1996) refer to money as an ‘energy resource,’ or a resource that can be used to improve access to other resources. As such, financial resources are predicted to be negatively associated with appraisals because they provide resources upon which the displaced worker may draw to cope with the economic reality of diminished income due to job loss (Hobfoll et al., 1996; Latack, Kinicki, & Prussia, 1995). The financial impacts of job loss often manifest in psychological, physiological, social, and economic appraisals (e.g., Brief et al., 1995; Eby & Buch, 1995; Grossi, 1999; Kong, Perrucci, & Perrucci, 1993; Nordenmark & Strandh, 1999; Ortiz & Farrell, 1993; Perrucci, 1994; Rantakeisu, Starrin, & Hogquist, 1999; Shams, 1993; Vinokur, Price, & Caplan, 1996; Vosler & Page-Adams, 1996; Turner, 1995; Wooten, Sulzer, & Cornwell, 1994). We thus predict that financial resources will be negatively related to these appraisals. Demographic variables Previous research highlights that different groups experience job loss in different ways. In particular, reactions to job loss differ based upon the demographics of age (e.g., Gallo et al., 2000; Grossi, 1999; Hamilton et al., 1993; Wanberg & Marchese, 1994; Wanberg et al., 1996), occupational level (e.g., Payne & Jones, 1987), gender (e.g., Eby & Buch, 1995; Goldsmith, Veum, & Darity, 1997; Mittag & Schwarzer, 1993; Najam et al., 1995; Rantakeisu, Starrin, & Hagquist, 1999; Rasky, Stronegger, & Freidl, 1996; Theodossiou, 1998; Underlid, 1996; Walsh & Jackson, 1995), and education (e.g., Cassidy 1994; Crepet et al., 1993; Gowan, Riordan, & Gatewood, 1999; Price, Friedland, & Vinokur, 1998; Schaufeli & vanYperen, 1993; Turner, 1995; Vesalainen & Vuori, 1999). For illustration, Theodossiou (1998) replicated earlier findings and reported that middle-age workers were worse off psychologically than either young or older workers. Similarly, differences in the likelihood of reemployment among men and women were found (e.g., Vesalainen & Vuori, 1999). Thus work-role centrality, coping resources, and demographic variables are important predictors of the seven facet appraisals for individuals faced with


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displacement. We now turn our attention to the relationships between facet appraisals, coping goals, coping, and coping efficacy. Life Facets: Appraisal, Coping Goals, Coping Efficacy, Coping, and Coping Alignment Latack, Kinicki, and Prussia (1995) propose that appraisals experienced along the life facets influence the formation of a coping goal to decrease these negative appraisals. Thus the facet level coping goals are developed in response to facet appraisals. These facet coping goals are correspondingly related to the coping strategy or strategies used by the person to cope with job loss. Figure 1.1 graphically depicts the importance of the facets within this relationship; that is, the one-to-one correspondence at the facet level between facet appraisals, coping goal(s), and coping. In addition to the direct effects, it is further predicted that facet coping efficacy moderates these relationships (Latack, Kinicki, & Prussia, 1995). Coping efficacy represents the extent to which an individual believes he or she can successfully execute a particular coping strategy and therefore reduce perceived appraisals (Latack, Kinicki, & Prussia, 1995). The importance of self-efficacy has been demonstrated in a job loss context (e.g., Kanfer & Hulin, 1985; Wanberg, Kanfer, & Rotundo, 1999). Those with higher levels of efficacy are predicted to be more likely to set coping goals, and to engage behavior to accomplish those coping goals. Thus the relations between facet appraisals and facet coping goals and between facet coping goals and facet coping strategies will be stronger for those displaced workers with high levels of corresponding (i.e., facet level) coping efficacy. Previous conceptualizations of coping focused on the direct effects of coping behavior on outcomes and led to inconsistent and confusing patterns. We propose that this relationship is mediated by the alignment of the coping behavior with the coping goal (cf. Hamilton et al., 1993; Prussia, Fugate, & Kinicki, 2001). That is, it is not the coping behavior per se that affects outcomes, but the correspondence of that behavior to the coping goal set by the individual in response to the facet appraisals he or she experiences. The importance of this alignment was demonstrated empirically in predicting wellbeing (Hamilton et al., 1993) and reemployment (Prussia, Fugate, & Kinicki, 2001). Outcomes and the Feedback Loop The preceding discussion supports the proposition that the alignment between facet level coping and coping should result in improved outcomes for the job loser in terms of subjective well-being and reemployment over time. Coping with job loss is a dynamic process that changes over time (Kinicki & Latack, 1990; Kinicki, Prussia, & McKee-Ryan, 2000; Latack, Kinicki, &



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Prussia, 1995). Latack and colleagues thus highlight the role of duration within the coping process, noting that coping and the coping process continue as long as appraisals continue to exist. Within the context of coping with job loss, these appraisals are predicted to continue until satisfactory reemployment is achieved (Latack, Kinicki, & Prussia, 1995). It is important to consider the quality of reemployment rather than merely examining reemployment, because previous studies have shown that the positive effects of becoming reemployed may be limited to those who have regained high-quality reemployment (Dooley & Prause, 1997; Kinicki, Prussia, & McKee-Ryan, 2000; Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1995; Wanberg, 1995). Moreover, high levels of subjective well-being and high-quality reemployment are predicted to influence the original exogenous variables of work-role centrality and coping resources. The prediction for work-role centrality centers on the idea of ‘role realignment’ or a shift in the relative importance of roles to the person (Ashforth, 2001; Thoits, 1995). The importance of the work role to the overall sense of self should be lower for those who have not regained quality employment as these individuals seek to distance themselves from their former roles. The predictions for the coping resource variables (e.g., personal, social, and economic resources are based on Hobfoll’s (1989) resource conservation model and Latack, Kinicki, and Prussia’s notion of resource replenishment. According to the latter, coping persists until disequilibrium is eradicated by regaining high-quality reemployment. Resources are depleted or ‘used up’ during the course of coping, hence the attainment or lack of attainment of quality reemployment leads to replenishment or depletion (respectively) of resources (e.g., Kinicki, Prussia, & McKee-Ryan, 2000).

CONCLUSION AND DIRECTIONS FOR FUTURE RESEARCH We uncovered five key trends in this review. First, the negative effects of job loss vary as unemployment continues. Similarly, the antecedents and outcomes of coping vary by the duration of job loss. These results underscore the need for more longitudinal research that examines the coping process at various time intervals from the time a person is notified about displacement to a point beyond reemployment. We need a better understanding of how people cope at various stages of the coping process. It also is important to note that the coping process does not stop for people with a low quality of reemployment (Latack, Kinicki, & Prussia, 1995). Future research is needed to document what occurs after displaced workers become reemployed. Second, researchers are still using generic coping scales as opposed to measures specifically targeted for this work role transition. Future job loss research should use scales like those developed by Kinicki and Latack (1990) or Leana and Feldman (1990).


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Third, we uncovered hundreds of studies that examined various correlates of job loss and unemployment. Although we attempted to summarize this work as accurately as possible, it clearly is time for a meta-analysis of the job loss literature. The recent meta-analysis by Kanfer, Wanberg, and Kantrowitz (in press) is a good example. Fourth, inconsistent relationships between coping and outcomes appear to be associated with the failure to consider displaced workers’ coping goals (Latack, Kinicki, & Prussia, 1995; Prussia, Fugate, & Kinicki, in press). We suspect that future research will continue to obtain conflicting results unless researchers determine a method to measure the link between an individual’s coping goals and coping strategies. It may be necessary to reevaluate the way we measure coping in order to accomplish this recommendation. Finally, people do not respond homogeneously to job loss. This implies that future researchers should incorporate a perspective that considers the ‘personal meaning’ of job loss into theoretical and empirical studies. We thus proposed the life-facet model of coping with job loss to foster research into this new perspective. The life-facet model of coping with job loss provides a new explanatory framework within which to examine the process of coping with job loss at the individual level. This model extends prior theorizing and addresses limitations found in previous conceptualizations of coping with job loss (e.g., Latack, Kinicki, & Prussia, 1995; Leana & Feldman, 1988) and in empirical studies of coping by proposing a new level of specificity. In particular, we propose that appraisal should be ‘unbundled’ into the particular life facets impacted by job loss, identify the coping goal as central to determining what coping strategies are engaged by the displaced worker, and highlight the importance of the alignment between the coping goal and coping behaviors at the facet level in influencing well-being and the quality of reemployment over time.

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Chapter 2 THE OLDER WORKER IN ORGANIZATIONAL CONTEXT: BEYOND THE INDIVIDUAL James L. Farr Pennsylvania State University, USA and Erika L. Ringseis University of Calgary, Canada Work organizations are experiencing great changes in terms of their markets, competitors, structures, work procedures, human resource policies and procedures, and workforces. Myriad specific changes are occurring, and we note here but a few. Careers are no longer guaranteed linear progressions through single organizations (Heise, 1990; Sullivan, 1999). Successful employees in organizations will now have to develop strategies for step-by-step progression through careers not marked by formally defined paths (Walker, 1992). Advances in technology require employees to engage continually in on-going training and updating (Livingstone, 1993). Organizational initiatives, such as downsizing or teams, affect the roles that are available for employees, and the role-related skills that are required. Howard (1995) noted that the workforce differs sharply from that of the past; it is more diverse with more women, more ethnic and racial minorities, and more older workers. Although Howard was discussing specifically the workforce in the USA, her comments extend to other countries. A changing workforce in a changing workplace underscores the need for research investigating how employees, and organizations, can be effective and successful in today’s global economy. The workforce and workplace changes that are relevant to older workers are the focus of this chapter. One changing demographic factor in the workplace is that of employee age. Indeed, the combined effect of four forces is an aging workforce. First, the Baby Boomers are aging. Thus, there are a large number of older employees in society and in the workplace. Second, the incoming younger work cohort, sometimes labeled the Baby Bust generation, is also few International Review of Industrial and Organizational Psychology, 2002 Volume 17 Edited by C. L. Cooper and I. T. Robertson.  2002 John Wiley & Sons, Ltd.


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in number (Warr, 1994). Thus, the average age of employees may be older than in organizations of the past. Third, due to a loss in retirement security for many individuals, in countries such as the USA where there is no mandatory retirement age for most jobs, the proportion (and absolute number) of older workers delaying retirement has been increasing over the past decade (e.g., see data presented in Tsui & Gutek, 1999). Finally, due to an increase in attention to legal issues concerning age discrimination in employment, more organizations are re-training and retaining older workers rather than trying to move them out (Thayer, 1997). Thus, it is necessary and desirable to examine what is known about the organizational factors that contribute to older worker success in the workplace and what may block or attenuate their success.

A MODEL OF THE OLDER WORKER WITHIN AN ORGANIZATIONAL CONTEXT Farr, Tesluk, and Klein (1998) suggested a conceptual model of the relationship between various aspects of organizational context and the behavior and attitudes of older workers (see Figure 2.1). Their conceptual model is like an onion, with layers of contextual effects at macro- and micro-organizational levels. An important feature of the Farr, Tesluk, and Klein model is that the various layers are assumed to have reciprocal relationships with each other, that is, each layer both affects and is affected by the other layers. It should be especially noted that the older worker is assumed to be an active (although partial) determinant or creator of the organizational context, following both current thinking in life-span development (e.g., Birren & Schaie, 1996) and industrial-organizational psychology (e.g., Schneider, Goldstein, & Smith,1995). The different layers of the Farr, Tesluk, and Klein (1998) model represent the levels in the larger work environment that indirectly and directly impact the older worker. At the outermost layers of the model are the macro-level factors, such as organizational design, structure, and strategy,which serve to specify the range of possible technologies, work practices, policies, procedures, and human resource activities in the organization. For instance, many organizations are currently undergoing a shift from hierarchical, rigid structures designed to maximize productive efficiency to more flexible designs, flatter structures, and strategies designed to promote innovation in an increasingly competitive and fast-paced technological and business environment. These changes in basic organizational structures and designs require changes in work organization, organizational policies, and human resource practices. Job descriptions now include a wider range of tasks, work is more often team-based, and policies and practices are designed to encourage active participation and continuous learning on the part of employees (Lawler, 1992). Such changes in organizational and human resource policies, practices,


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Figure 2.1 The Onion Model: The relationship between the older worker, the immediate work environment, organizational policies and practices, and the organizational structure. Adapted with permission from Farr, J. L., Tesluk, P. E., & Klein, S. R. (1998). Organizational structure of the workplace and the older worker. In K. W. Schaie & C. Schooler (Eds), Impact of Work on Older Adults (pp. 143–185).  Springer Publishing Company, Inc., New York 10012

and procedures may be experienced by older workers through their immediate work environment, for instance, by changing work group norms and climate, the nature of supervision, and the specific types of tasks required in their job. These types of changes may also have more direct effects on older workers, for example, in the form of early retirement incentives that may be offered as part of the organization’s downsizing efforts. Together, these multiple layers of the onion model function as the set of organizational factors and structures that influence the older worker. It is important to note that these influences operate at multiple layers in the organization and are interrelated. Although the Farr, Tesluk, and Klein (1998) model was concerned only with aspects of organizational context, it is clear that the addition of an additional layer to represent the environment (with


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business, economic, social, and cultural components) in which the organization itself is embedded would yield a more complete conceptualization of the relevant contextual factors. Finally, at the heart of the Farr, Tesluk, and Klein model (see Figure 2.1) is the older worker, who is certainly affected by the organizational environment, but whose personal attributes (e.g., experience, abilities, existing knowledge and skills, personality, motives) interact with these various contextual factors in the manifestation of work performance, other behaviors, and affective reactions. Warr (2001) has recently described in depth the research evidence that addresses age-related changes in the physical abilities, cognitive abilities, knowledge, personality traits, and motives of people, that is, the substance of the central core of the Farr, Tesluk, and Klein (1998) model. In particular, Warr has interpreted and discussed those various age-related changes with regard to work-related requirements. In this chapter we do not attempt to update Warr’s review in a comprehensive way, nor do we repeat in detail his findings. We do briefly mention some of Warr’s summaries of research evidence and expand upon some conclusions that are especially relevant to the general theme of the chapter, the reciprocal relationship between older workers and their organizational context. Organizational context factors are many and we cannot address them all. We have chosen to focus on issues related to older workers within those aspects of organizational context that appear to be experiencing rapid and large change. We also generally restrict our review to those domains where we have some relevant work-related research evidence to inform our discussion, although we will import thinking and data from other disciplines and settings where we think there may be applicability but little organizational data. We also consider a variety of outcome measures in our review, using as our overarching conceptual construct what can be labeled as ‘success’. Success can refer at the individual level (the older worker) to effective task and contextual performance (Borman & Motowidlo, 1993) and to positive affective states (e.g., job satisfaction, organizational commitment) and at the work group level (the older worker’s work group) to group goal attainment, group viability, innovation, and well-being (e.g., Hackman, 1990; West, Borrill, & Unsworth, 1998). We also consider failure to achieve success and attenuated levels of success. We examine success at each of the levels of the onion model (Farr, Tesluk, & Klein, 1998), noting both extant findings and unanswered research questions.

THE CORE OF THE MODEL: CHARACTERISTICS OF THE OLDER WORKER AND SUCCESS There are several comprehensive reviews of the relationships between age and various measures of work-related abilities, traits, motives, knowledge, performance, and attitudes (see, e.g., Warr, 1994, 2001; Charness & Bosman, 1990;



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Salthouse & Maurer, 1996). Aging has been found to affect physical and cognitive abilities, and varying relationships have also been found between age and employee performance and attitudes and between age and some traits and motives. The following is only a brief synopsis of available research, based primarily on Warr (2001), with a few selected additions from recent research. Effects of Aging on Various Abilities Warr (2001) noted that, although physical fitness, sensory systems, and physiological processes have been examined extensively as a function of age, these factors are not always systematically studied in relation to age differences and are rarely investigated in terms of their impact on common work-related tasks. Furthermore, although on average physical health, flexibility, and strength decrease in older populations, there are considerable individual differences. Since work tasks vary widely in terms of their physical, psychomotor, and sensory demands, Warr also noted that much additional research is needed to understand which physical and physiological factors associated with age decrements impact success on particular types of tasks and activities. Such specific knowledge of the effects that aging has on physiological processes could assist organizations to make useful accommodations for declines due to aging, and, thus, help older workers in being successful on the job. Age differences in cognitive abilities have been studied extensively, but again most of this research has been relatively context-free laboratory investigations (Warr, 2001). Both general and specific measures of fluid intelligence demonstrate age-related decrements in performance and can appear in individuals as young as 40 years (Park, 1994). Additionally, older individuals on average show lower performance on ability measures that require complex forms of specific information processing activities, such as selective and divided attention, memory for previously experienced material, use of working memory, dual task performance, and speeded responses to presented information (Warr, 2001). Again, older individuals generally exhibit large individual differences in their performance on such tasks. Furthermore, even when cognitive decrements are found, their magnitudes have been shown to be reduced by a variety of interventions, such as re-training older individuals in the use of cognitive resources, buffering their task self-efficacy, and providing memory aids and other environmental cues for task performance. Many of the age-related decrements in cognitive task performance occur in cross-sectional data throughout the adult life-span (Warr, 2001), but longitudinal data frequently do not demonstrate much decline until individuals are in their 60s and beyond (Schaie, 1994). Since birth cohort differences on measures of cognitive ability have been found with more recently born cohorts having higher scores, the larger and earlier occurring age-related differences found in cross-sectional data may reflect these cohort differences rather than changes across time within a cohort (Warr, 2001).


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Age and Personality Traits and Motives

Investigations of age-related aspects of personality traits have addressed several specific research questions. A basic question has been whether there are age-related differences in the relative strength of an individual’s personality traits within a population. This question requires longitudinal data and addresses issues of change versus consistency over time in the relative position of an individual’s score on a personality trait measure within the distribution of such scores for the population. A recent meta-analysis of such rank-order consistency of personality traits by Roberts and DelVecchio (2000) found that there was a general increase in such consistency as persons’ age, although their results suggest that the increase may occur in a few steps, rather than as a gradual and relatively constant increase. Rank-order consistency was found to peak after age 50 and remain at a high level with increasing age through the early 70s. Data sets for more elderly individuals were insufficient for metaanalysis. Judge, Higgins, Thoresen, and Barrick (1999) examined the reliability of Big Five personality traits over 50 years with 5 waves of longitudinal data obtained first when the sample members were in early adolescence and last when they were in their mid-50s to early 60s. Although there were some differences across the 5 traits and age ranges, the average reliability was quite high with coefficient alpha equal to 0.85. For all 5 personality traits test-retest correlations were statistically significant for every pair of time intervals, although long intervals were characterized by lower stability. Somewhat surprisingly, the patterns of correlation found between career success measures and personality measured either in adolescence or in adulthood were also similar in magnitude. Highest correlations were found between career success measures and the traits of neuroticism (negative relationships) and conscientiousness (positive relationships). Several large-sample studies have examined the question of whether there are mean personality trait score differences for younger and older individuals (Warr, 2001). A summary of those studies indicates that age differences have been found on both ‘Big Five’ traits and on more specific traits. For example, older individuals have been found to have higher average scores on measures of conscientiousness and agreeableness, but lower scores on openness to experience and change orientation. Warr (2001) notes that the work-related implications of these differences are not clear, nor are comparable results found in all studies. However, the need for data on whether personality–performance relationships moderate age–performance relationships seems apparent. Warr (2001) also reviewed age-related differences in motives, a term he used to label a large number of more specific affective states, including needs, values, preferences, and interests, that share a connection to the direction and intensity of behavior. Warr noted that little research has been conducted about age-related differences in motives, especially in terms of work. He did



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suggest that changes in adaptation levels, the establishment of behavioral habits, the alteration of social comparison processes, and different social norms about older and younger employees may affect the perceived value of work behaviors for older workers. Further, Warr (2001) noted that motivation has been shown to be influenced by perceived instrumentality of behavior for various outcomes and that older workers might have differential instrumentality beliefs because of self-perceived changes in physical and cognitive abilities. Relationship of Age and Knowledge Age is not a true determinant of knowledge, but the greater average experience of older individuals frequently results in research studies demonstrating positive correlations between age and knowledge. Knowledge has been operationalized in terms of both declarative and procedural knowledge, and positive relationships of age with both forms of knowledge have been reported. There are many qualifiers to this general statement (Warr, 2001). First, the individual’s experience must be relevant to the knowledge domain being measured. Second, individuals have widely varying amounts of knowledge in different domains (affected in part by large differences in specific types of experience). Third, younger individuals on average may have greater amounts of relevant experience in some knowledge domains than older persons, reversing the direction of the age and knowledge relationship (see Ackerman, 2000, for specific examples). Fourth, most of the age-related research has been conducted in knowledge domains that are not closely tied to knowledge requirements of specific jobs. Thus, we have little information about jobrelevant knowledge at different ages (Warr, 2001). Relationship of Age and Work Performance Despite the limited findings about job-relevant knowledge at different ages, the general trend of data drawn from more global knowledge domains looks encouraging for older workers since meta-analyses (e.g., Dye, Reck, and McDaniel, 1993) have found that job knowledge on average is positively correlated with job performance. Warr (2001) also notes that the greater knowledge that older employees may have has the potential to compensate for age-related decrements in information processing capabilities noted previously. However, both meta-analytic and narrative reviews of the relationship between age and job performance have generally concluded that they have no overall linear association (e.g., McEnvoy & Cascio, 1989; Park, 1994; Waldman & Avolio, 1986; Warr, 2001). We suggest that contextual differences among jobs are possible reasons for the lack of an overall correlation between age and job performance and examine some of these later in the chapter. However, there are also some possible individual-level moderators of


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the age–job performance relationship and we briefly examine some of those before turning to contextual factors. Individual-level Moderators of the Age–Performance Relationship Types of performance One factor to consider in the age–performance relationship is that of the multi-dimensional nature of performance (Austin & Villanova, 1992). Some components of the job may be performed less well by older workers than other components of the job (Park, 1994). Thus, to categorize job performance as ‘same’ or ‘worse’ ignores the multi-dimensional nature of most jobs. The relatively recent recognition that the effectiveness of an employee is related both to task performance and to contextual performance or organizational citizenship behavior (e.g., Borman & Motowidlo, 1993) reinforces Park’s (1994) conclusion. Historically, organization leaders have been concerned with employee task performance or those activities that contribute to the organization’s technical core (Borman & Motowidlo, 1993). Formal job descriptions aim to capture the essence of what is required for task performance, and managers are generally expected to evaluate task performance. However, task performance is not the only employee performance that may have an effect on an organization (Borman & Motowidlo, 1993). Aspects of individual behavior in addition to task performance that influence overall organizational and group effectiveness have been labeled as Organizational Citizenship Behaviors (OCB). Organizational Citizenship Behavior refers to extra-role activities that, in their aggregate, contribute to organizational effectiveness (Smith, Organ, & Near, 1983). Specifically, OCB was originally defined as ‘individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization’ (Organ, 1988, p.4). The three main aspects of this definition are that OCB: (a) are discretionary, or extra-role, (b) are not formally recognized by the reward system in the organization, and (c) promote effective organizational performance (Organ, 1997). The analyses of questionnaires designed to measure OCB have yielded several underlying factors. One of the key OCB researchers recommends using the label ‘OCB-I’ to designate those behaviors directed at individuals. These include spontaneous, helpful, social acts directed toward fellow employees, such as assisting new employees (Organ, 1997). ‘OCB-O’ refers to citizenship behavior that more directly benefits the organization, such as complying with rules and procedures and using organizational resources efficiently (Borman & Motowidlo, 1993; Organ, 1997). Demographic variables have not been strong predictors of OCB. However, empirical results have rarely investigated the effects of age, or of age diversity,



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on OCB (Organ & Ryan, 1995; Organ & Lingl, 1995). Although a recent meta-analysis of OCB predictors indicates that tenure is not predictive of OCB-I or OCB-O (Organ & Ryan, 1995), age per se was not a variable that was considered. Given the likelihood that the interpersonal skills and workrelated values do differ for older and younger workers, further investigation into the relationship between age and OCB would be valuable. Individual differences We cannot ignore individual differences that may affect job performance, or interact to affect job performance, as we age. For example, cognitive ability is seen as the strongest predictor of job performance (Hunter & Hunter, 1984). Thus, even if an older employee with high cognitive ability experiences some cognitive declines, he/she may outperform a younger individual with less cognitive ability. Additionally, some personality factors may affect the degree to which aging and performance are related. Self-efficacy and self-esteem in general may affect the degree to which aging plays a role in performance (Park, 1994). People who are more confident in their abilities may be more likely to compensate for age-related declines in performance and may also be more inclined to seek additional feedback, training, and education (Colquitt, LePine, & Noe, 2000). In meta-analyses of the relationships between several core selfevaluation traits (self-esteem, generalized self-efficacy, internal locus of control, and emotional stability) and both job satisfaction and performance, Judge and Bono (2001) found positive correlations among these traits and both workrelated outcomes. Although Judge and Bono imply that these traits are relatively stable over time, their findings suggest the possibility that organizational, group, and task factors that enhance the state level of these self-evaluations may also enhance employees’ job satisfaction and performance. The periodic assessment of the self-evaluations of older workers in comparison to younger workers could be a useful way for an organization to monitor whether existing policies and procedures may have unintended, age-related, negative effects. Cleveland and Shore (1992) examined another type of self-evaluation variable, the subjective perception of age. They argued that perceptions of one’s age may be more important than chronological age in influencing the behavior and attitudes of employees. Further, they suggested that the perceptions by others (e.g., supervisors, peers) of a worker’s age would have more influence on their interactions with and evaluations of the worker than would chronological age. Their data supported their arguments; age perceptions interacted with chronological age to account for more variance in job performance measures than chronological age alone. The aging process may be important to job functioning, but the way that people view their personal aging process is also important (Cleveland & Shore, 1992). Cleveland, Shore, and Murphy (1997) have extended the work of Cleveland and Shore to include longitudinal data and have obtained results that generally confirmed the earlier findings.


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The subjective perception of age can also be linked to another individual difference variable that may moderate the age–performance relationship, selfidentity. Self-identity has been defined as the individual’s psychological relationship to particular social category systems (Frable, 1997). The salience of age as a factor in the self-identity of the older worker is likely to be stronger in individuals who perceive themselves as ‘old’. How we identify and classify ourselves can affect choices and perceptions we make in the world around us, and, thus, affect also our attitudes and behavior. Additionally, identity theory suggests that there are individual differences in the salience of various personal roles or social categories for self-identification (Frone, Russell, & Cooper, 1995). Thus, persons differ in how they define themselves and in what they consider important in their personal construal of identity. Frable (1997) has noted the complexity of a person’s identification make-up. People can form self-identities on the basis of many factors, including age, gender, race, ethnicity, sex, and class. Although relatively little research examining age as a component of self-identity has been conducted, recent qualitative research by Dittman-Kohli, Westerhof, and Kohli (2001) found differences in self-identity as a function both of age and employment status (e.g., employed, unemployed, retired). Of importance to the consideration of identity related to older workers is the point that, in addition to self-identity, others can also define identity (Nkomo & Cox, 1996). There are also likely to be individual differences in the salience of particular characteristics for one’s construal of identity regarding other persons. Objective differences between co-workers on age would likely be associated with increased salience of age as a factor in the categorization of individuals and definition of identity. To the extent that co-workers use age as an important categorizing factor and older workers perceive themselves as being old, the beliefs, attitudes, and behavior of both the older and younger workers are more likely to be consistent with stereotypes of the older worker. These stereotypes may become even more salient in certain situational conditions, but we postpone detailed consideration of these contextual factors until our next major section. Summary A number of age-related differences have been demonstrated by research studies looking at factors that have been shown themselves to be related to success at work. These factors include various physical and cognitive abilities, traits and motives, and procedural and declarative knowledge. There is also evidence for overall relationships between age and some work attitudes and non-performance behaviors (Warr, 2001). Older employees generally have lower turnover and absenteeism rates, are generally higher in job satisfaction, and are more committed to organizations than younger employees. However, we have few generalizable conclusions that can be drawn about employee age and work performance. While individual differences affect the



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relationship between age and performance, as outlined above, the Farr, Tesluk, and Klein (1998) model (see Figure 2.1) also suggests that these limited conclusions about the age–performance relationship are partly the result of interactions between employee age and contextual factors that operate at several different levels within the organization. We now turn our attention to the next layer of the Figure 2.1 model and some selected contextual factors that seem useful in understanding the experiences and effectiveness of the older worker.

THE SECOND LAYER: CONTEXTUAL FACTORS IN THE IMMEDIATE WORK ENVIRONMENT In this section we examine factors related to the older worker’s tasks or job, immediate manager, and work group. These factors are shown in Figure 2.1 as residing in the layer of the model immediately surrounding the older worker. According to a well-supported theory of work adjustment (Dawis & Lofquist, 1984), the human resources goal of the organization should be to seek correspondence between the worker and the work environment. The concept of correspondence suggests that both satisfaction (how the worker feels about the environment) and satisfactoriness (how appropriate the individual is for the work environment) should be investigated in organizations (Dawis & Lofquist, 1984). Although it was not a focus of Dawis and Lofquist’s Work Adjustment Theory, aging may cause changes in what leads to satisfaction or what enables satisfactoriness. Thus, variables in the work environment, such as characteristics both of the work to be performed and of the context in which the work is performed, may differentially affect satisfaction and satisfactoriness for older workers in contrast to younger employees. Much of the research that looks at the older worker has done so within a general demographic attribute framework. Research on employee age (or any other demographic variable) that ignores contextual factors has limited utility because it is based on several unreasonable assumptions (Tsui & Gutek, 1999). Such work-related demographic research has been labeled as the categorical approach by Tsui and Gutek. They note that the categorical approach is based on the premise that the individuals in a certain category or level of a demographic characteristic (e.g., older workers) have experiences at work that differ from those of individuals in other categories or levels (e.g., younger workers). Further, the categorical approach assumes that all individuals in a given category have identical work experiences that are themselves invariant across work situations. Clearly, not all older workers share identical work experiences, nor does a single older worker have identical experiences in all work situations. Tsui and Gutek (1999) advocate the inclusion of contextual factors in demographic research, such as those in the second layer of Figure 2.1. They


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also note that research on work-related demographic differences that incorporates contextual factors has taken two forms, the compositional approach and the relational approach. The compositional approach looks at the distribution of demographic attributes among the members of work groups, larger organizational units, or whole organizations to see whether employee experiences and group functioning are affected by different compositions or distributions of specific demographic variables. This approach might compare whether outcome variables (e.g., performance, turnover rate, group conflict, etc.) differed for work groups composed only of older employees, only of younger employees, or of mixed age-group employees. While the compositional approach considers the impact of a contextual factor, demographic distribution within the unit of analysis, it does not examine whether individuals within the same organizational unit might have different experiences. The relational approach (or relational demography approach) focuses on the difference between an individual’s demographic attributes and those of the other group members. This approach might examine whether an older employee in a work group of mostly younger workers has a different work experience (e.g., performs better; is less satisfied; etc.) than a younger member of that group. Other research and thinking about contextual factors that might be related to older worker performance and attitudes have focused on contrasting how older workers perform in, or have preferences for, work situations that differ in terms of the contextual factors. For example, research might contrast the performance and motivation of older workers in jobs that are relatively enriched in terms of challenge and autonomy with older workers’ performance and motivation in jobs that are relatively impoverished in those job characteristics. Ideally, research would address both demographic and situational factors, but such studies are rare at present. We first examine research that investigates the worker age in terms of demographic relationships between supervisors and employees, as well as among employees. We then discuss task and job context factors, including information processing demands and knowledge requirements, job characteristics, and the immediate physical work environment itself. Demography and Diversity Research in organizational demography suggests that people prefer to work with others who are similar to themselves (see, e.g., Tsui , Xin & Egan, 1995). Thus, it is important to consider not only the employee’s age, but also the age of those with whom he or she works. As is discussed below, little research has examined diversity in supervisor–subordinate dyads, but what exists suggests that similarities in demographic factors, such as race, sex or age, result in more positive relations and affect (Tsui, Xin, & Egan, 1995). Similar results are frequently found for the demographic differences among employees within work groups.



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Relational demography (supervisor and employee) Relational demography research suggests that supervisors may exhibit more negative affect toward employees who differ in age from themselves and also that they would be likely to give these employees lower performance ratings (Tsui & O’Reilly, 1989). Subordinates who were different from their supervisors in terms of age tended to experience more role ambiguity, but Tsui and O’Reilly found no relationship between supervisor–subordinate age differences and performance evaluations. Other studies have indicated that supervisors who differ in age from their subordinates tend to give less favorable performance evaluations (Cummings, Zhou, & Oldham, 1993). BarnesFarrell (1993) found that supervisor–employee age disparity was not related to supervisory ratings of the employees’ current performance, but was negatively related to ratings of employee potential. In addition, Ferris, Judge, Chachere, and Liden (1991) obtained a complex set of results when they examined the relationship between performance evaluations and differences in supervisor age and average work group member age. They found that older supervisors tended to give higher ratings to members of younger work groups, whereas younger supervisors tended to rate members of older work groups more favorably. Thus, a highly variable set of results have been obtained that may be related to other contextual factors which differed among the studies reviewed here. A single research study has examined the relationship of age diversity between supervisor and employees and measures of organizational and job withdrawal (Tsui, Egan, & O’Reilly, 1992). Such age diversity did not have an effect on absenteeism, although there were greater levels of turnover intention for employees who were different in age than their supervisors. A few studies have examined employee attitudes as a function of employee relative age with regard to their supervisor. Vecchio (1993) found that employees who were older than their manager reported more positive interpersonal relations and attitudes toward the manager, while Smith and Harrington (1994) concluded that older workers would have more negative attitudes concerning younger managers. More recently, Farr and Ringseis (1998) examined differences in work-related attitudes and behavioral intentions between employees whose supervisor was about the same age as the employee, versus employees with a supervisor who was either older or younger than the employee. The results suggested that similarities and differences in the ages of individuals in direct-report relationships at work were associated with differential attitude patterns. For example, Farr and Ringseis found that employees who had bosses of the same age reported significantly higher job satisfaction than employees with bosses of a different age. Additionally, turnover intention was lower for employees with a boss who was the same age than for employees with an older or younger boss. Employees with a boss who was a different age also had lower levels of organizational commitment than


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individuals with a boss who was the same age, with the strongest effect for the affective commitment component. These findings were obtained regardless of the absolute age of the employee or boss. However, in addition, affective commitment was much lower for older workers with younger bosses than for older workers with similarly aged bosses. Finally, Epitropaki and Martin (1999) found that when employees and managers had a high-quality relationship, age differences between them had no relationship with measures of employee well-being. However, when the employee–manager relationship was poor, employees who differed in age from their manager also had lower levels of well-being than employees similar in age to their manager. As indicated in the studies reviewed above, age diversity between supervisors and subordinates does seem to result in some negative effects, although the findings are not unequivocal. It appears that age differences between supervisors and subordinates are likely to be related to increased withdrawal behaviors and turnover among employees. The impact of supervisor– employee age diversity on employee performance evaluations may be affected by several other contextual factors such that no simple statement about the relationship can be made (cf., Ferris et al., 1991; Williams & O’Reilly, 1998). In addition, almost all of the research examining employee–manager age differences and similarities has examined only the outcomes of the employee. In an interesting exception, Mayo, Pastor, and Meindl (1996) found that dissimilarity in age among work group members was positively related to managers’ self perceptions of their effectiveness in transformative leadership, that is, transmitting high expectations about performance, articulating goals, creating group visions, creating opportunities for learning and development, and establishing emotional involvement with the employees. Mayo, Pastor, and Meindl did not expect these findings and attempted to explain them in terms of possible links between group heterogeneity and group performance. However, we have noted that there is no simple relationship between age diversity and group performance so this is not likely to be the complete explanation. Additional age-diversity research from the perspective of the managers of work groups should yield interesting data. Diversity in age among employees Age diversity within work groups has been shown to be frequently a strong predictor of workplace withdrawal measures, such as absenteeism and turnover (Williams & O’Reilly, 1998). Those individuals who differ more from others in their workgroup in terms of age are more likely to leave the organization than those who are more similar in age (Cummings, Zhou, & Oldham, 1993; O’Reilly, Caldwell, & Barnett, 1989), or intend to leave (Tsui, Egan, & O’Reilly, 1992). Additionally, employees who differ more in age tend to be absent more often than the individuals who are about the same age as their coworkers (Cummings, Zhou, & Oldham, 1993). Differences in age also tend to



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be associated with increased turnover, withdrawal, and negative work experiences (Williams & O’Reilly, 1998; O’Reilly, Caldwell, & Barnett, 1989; Wiersema & Bird, 1993). Thus, organizational attachment, including turnover, absenteeism, and psychological commitment, and job satisfaction and other affective variables appear to be affected negatively by diversity in group member demographic characteristics, including age (Milliken & Martins, 1996). Research on the effects of age diversity within work groups on group performance has not yielded simple overall results. O’Reilly, Caldwell, and Barnett (1989) found no significant relationship between diversity in age and the outcome measure of social integration. Although Zajac, Golden, and Shortell (1991) found negative effects for age diversity in group members on group performance (innovation), several other studies have found no effect (e.g, O’Reilly & Flatt, 1989; Bantel & Jackson, 1989), while still other research findings suggest complex, interactive effects of age diversity with additional factors (e.g., Pelled, Eisenhardt, & Xin, 1999). Thus, the effect of age diversity on performance is unclear. Organizational demography has been criticized for being atheoretical and offering only a ‘black box’ explanation for the relationship of demographic variables, such as age, with various group outcome measures (e.g., Lawrence, 1997). The group processes that may link diversity factors with performance are not well understood (Milliken & Martins, 1996). Thus, the social and psychological mechanisms by which diversity has a positive or a negative influence on performance and the differences in the various research studies in terms of how they assess group processes may explain the varying results. Riordan (2000) has called for research examining possible mediating variables in order to explicate the psychological mechanism underlying the effects of relational demography. The research of Pelled (1996, 1997) and colleagues (Pelled, Eisenhardt, & Xin, 1999) documents the complex relationships that may exist between age diversity, group process, and group performance. Pelled and colleagues suggest that conflict defines part of the ‘black box’ between work group diversity and group performance and they hypothesize that the diversity variables that increase emotional conflict include the demographic factors of age, sex, and race. Emotional, or affective, conflict within a work group has a negative impact on performance, but task-related or substantive conflict, however, is positively correlated with performance (Pelled, Eisenhardt, & Xin, 1999). Task conflict is a driven by functional background differences, such as differences in training or departmental affiliation. Although diversity in age, as a demographic variable, should trigger emotional conflict, the results of Pelled, Eisenhardt, & Xin’s research (1999) suggest that age similarity can also trigger emotional conflict through the process of social comparison. They note that individuals may choose agesimilar others at work to make career- and work-related comparisons, such as salary or promotion comparisons and job responsibility and performance comparisons. Employees are likely to expect that task factors like level of


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responsibility and outcomes like salary will be age-related with older employees on average being higher. It is obviously difficult to untangle the complicated relationship among age, careers, and experience. Further research that investigates the combined effect of these factors would be helpful to understand how age diversity can be used to further effective task conflict while avoiding negative emotional conflict. We also need research concerning age-diversity in work groups that takes a longitudinal perspective. A number of authors have noted that surface-level demographic features, such as age, are likely to have their major impact on work behaviors and attitudes in the short term, while longer-term impact is likely to come from diversity in ‘deeper-level’ variables such as attitudes, values, and goals (e.g., Harrison, Price, & Bell, 1998; Milliken & Martins, 1996; Williams & O’Reilly, 1998). In the short term, readily observable demographic characteristics are likely to induce co-worker behavior and attitudes based on stereotypes, while over time, individuating information about attitudes, goals, and values concerning various group members becomes better known to co-workers and has an increasingly important role concerning their behavior and attitudes. We do not have studies that look at group processes and outcomes over time in terms of the relationships among group members of varying ages. Such research would be very valuable. Structure of Work: Team-based and Individual Increasingly, organizations are using work groups or teams rather than individuals as the level of responsibility for task accomplishment (LePine, Hanson, Borman, & Motowidlo, 2000; West, Borrill, & Unsworth, 1998). West and colleagues note that several reviews of research regarding groupbased working and the introduction of teams as organizational change interventions have found that such structures and interventions can have positive impacts on organizational effectiveness. They do, however, caution that there can be serious difficulties in implementing work groups in organizations due to ineffective group processes and poor individual team member skills and abilities. Group-based work has a different mix of requisite knowledges, skills, and abilities (KSAs) than individual work, especially those related to teamwork and contextual performance (Borman & Motowidlo, 1993; LePine et al., 2000). Of particular relevance to this chapter is whether the KSAs of older workers are likely to be helpful or harmful to group-based work requirements. Little research concerning work teams has directly addressed the older worker. Given that older workers can be expected on average to have greater amounts of relevant experience than younger workers for tasks requiring interpersonal skills, we might anticipate that older workers could supply enhanced knowledge or wisdom concerning these aspects of intra- and intergroup functioning. Older workers have also been found to have work values and attitudes that seem likely to encourage contextual performance behaviors, such as



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helping others, and adopting mentoring relationships with other workers, but again there is no explicit research addressing these issues. Research on group diversity would suggest that groups with members of varying ages may have process difficulties, including emotional conflict, that would likely result in reductions in teamwork and contextual performance (e.g, Pelled, Eisenhardt, & Xin, 1999). Riordan and Weatherly (1999) found that actual and perceived similarity were positively related to several measures of organizational citizenship and helping behavior. Zenger and Lawrence (1989) concluded that age differences among group members were associated with less within-group communication. Chattopadhyay (1999) found differences among older and younger workers in terms of the relationship of age diversity to citizenship and interpersonal behaviors. Age dissimilarity was associated with more altruism and peer interactions for younger workers, while age similarity was related to higher levels of these variables for older workers. Little research has contrasted relatively homogeneous groups that differ in average age or age-related variables (e.g., tenure, experience). Such research would be valuable, as indeed would be additional studies concerning the relationship of age, tenure, and experience diversity with group process measures. Job and Task Factors There are several ways in which jobs and tasks can be categorized that may have different implications for older workers. Extensive bodies of research exist that look at job scope or complexity, including both the motivational implications of job characteristics and the cognitive demands of information processing and knowledge requirements, and at the stability of job requirements. While only a limited amount of such research has directly considered the older worker, other findings in these research domains can contribute to our thinking about such employees. Additional factors that we consider are the physical demands of work and the degree to which jobs or occupations are stereotyped with regard to typical employee age. Job scope or complexity Jobs that are more complex or have wider scope of responsibilities have been found to be generally more motivating than simple or narrowly defined jobs for employees of all ages when examined in cross-sectional research. In this line of research job complexity or scope has typically been defined in terms of such factors as degree of autonomy, variety of tasks performed or skills used, proportion of the total task that an individual performs, and impact of task performance on other people (see, e.g., Hackman & Oldham, 1975; Parker & Wall, 1998). High levels of motivation generally contribute to improved performance. However, with increased complexity can come higher levels of information processing demands and knowledge requirements, which make


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effective performance more difficult to achieve. These paradoxical effects of job complexity or scope require more consideration. Motivational attributes of jobs Research explicitly looking at whether job scope is related to the work motivation of older workers has sometimes been conducted with longitudinal designs. This design allows the examination of whether complex and simple jobs have different dynamic relationships with motivation. Such studies have reported that more complex jobs can maintain motivation over time and continue to be motivating for older workers (see, e.g., Schooler, 1987; Schooler, Mulatu, & Oates, 1999). Thus, employees in jobs that offer intellectual stimulation are more likely to perform effectively as they age than are employees engaging in more mundane tasks who may become unmotivated and bored over time (Avolio & Waldman, 1987). Information processing demands and knowledge requirements Various specific tasks, and jobs overall, have quite different information processing demands and different levels of specific and general knowledge requirements. Warr (1994) has described how different combinations of processing demands and knowledge requirements can lead to different predictions about the relationship between age and performance, such that age could have a positive, negative, or no relationship with job performance. The mix of various processing and experience factors that exist in the population of jobs may help to explain meta-analytic results showing no overall relationship between age and job performance (e.g., McEnvoy & Cascio, 1989). Park (1994) has also suggested that meta-analyses’ non-significant results disguise the true, but complex, nature of the relationship between age and performance. She noted that employees in jobs requiring high speed of processing may experience more difficulties as they age than employees in jobs requiring more crystallized abilities. Park also suggested that employees in maintenance situations, or situations that do not require changes or transitions in job tasks, will not experience declines in performance due to declines in cognitive abilities, but that jobs involving creativity or on-going adjustment may present problems for older workers. Indirect support for this maintenance hypothesis comes from research that examines work performance of employees at jobs involving creativity, such as scientists and researchers (see, e.g., Simonton, 1988; Blackburn & Lawrence, 1986). These findings revealed that performance in the research and development jobs had an inverted-U relationship with age (Park, 1994). Physical demands of work Human factors research has investigated methods by which to optimize the physical demands of work and the work environment for various populations,



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including the older worker. Although a complete review of current human factors research is beyond the scope of this chapter, there are several key issues to note. First, increasing the level of illumination in a workplace lessens the negative consequences of age-related eye changes. Older adults generally require more illumination than younger adults in order to see well (Charness & Bosman, 1990). A second factor to consider in workplace design is that of glare control. Older workers are more susceptible to glare, and this should be considered with video or computer displays, and room design (Azar, 1998). Additionally, age-related changes in depth perception, contrast sensitivity, visual field size, and dynamic visual acuity should be taken into account in order to improve the visual work environment for the older worker (Charness & Bosman, 1990). Steps can also be taken to compensate for hearing loss in older workers. Increasing the volume of important sounds, controlling background noise and reverberation, and facilitating speech understanding by making adjustments in how verbal information is presented can all facilitate older worker performance (see Charness & Bosman, 1990, for a complete review). The ergonomic changes to the immediate work environment described above are possible retroactive improvements to the workplace. However, before new automated equipment is introduced, Rogers (cited in Azar, 1998) suggests that technology designers should consider factors such as glare and illumination, and should also implement other design characteristics that can facilitate the performance of older workers (e.g., align keys with functions; use large text for instruction; etc.). Indeed, a well-designed workplace, with welldesigned equipment, can compensate for many of the performance decrements experienced by older workers. Age stereotypes and jobs Occupations and jobs may be characterized by age stereotypes (e.g., Cleveland and Landy, 1983), that is, some jobs or tasks may be considered to be associated with younger employees, while others are considered more likely to be performed by older employees. The performance of an employee whose chronological age does not match the stereotypic age for a particular job or occupation may be evaluated differently than that of an employee whose age better matches the age-type. Cleveland and Landy (1983) suggested that agetyping of jobs and occupations occurs when important performance and task dimensions for the job or occupation are related to generally accepted age stereotypes. Early studies of the stereotypes of older workers found them to include beliefs that older workers are relatively low in work motivation, work capacity, potential for development, flexibility, and acceptance of change, but relatively high in stability and dependability (e.g., Rosen & Jerdee, 1976a, b). More recent research (e.g., Warr & Pennington, 1994) has found that


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non-managerial jobs reported by personnel managers to be for ‘younger persons’ were characterized as requiring high levels of cognitive resources (e.g., listening closely to instructions; picking up new ideas quickly; concentrating on details for long time periods); adaptation to change (including use of new technology); energy (including performing a wide range of activities); and speeded responses (including having external pacing, continuous and rapid performance). The characteristics of non-managerial jobs perceived as mostly for ‘older people’ included requirements of wisdom and independence (including using previous experience, working without close supervision), reliability, and working with the public. The data from Warr and Pennington (1994) refer to non-managerial jobs and other research has shown that managerial jobs and careers are characterized by age-grading related to level within the organization (e.g., Lawrence, 1988), that is, there are expectations about the ages of lower-, middle-, and upper-level managers and individuals falling outside the expected age-range for their level are perceived differently than those whose ages match expectations. Furthermore, the categories of ‘older’ and ‘younger’ worker can themselves change according to occupation or job; for example, a 35-year-old professional athlete is likely to be categorized as an older worker, while a 45year-old corporate CEO may be perceived as young. Thus, the reactions and behavior of other employees and managers to an ‘older’ worker are likely to be influenced by complex interactions among multiple age-related stereotypes about persons of a given chronological age, about occupations, and about particular jobs or tasks. Research examining the joint influence of such stereotypes in work settings is needed. Brief, Dietz, Cohen, Pugh, and Vaslow (2000) recently examined the interaction of belief in racial stereotypes and economic justifications for discriminatory behavior on personnel judgements and found that individuals were more likely to exhibit judgements consistent with their level of racial bias when they were given a credible economic justification for discrimination. Constructive replication of this study with ageism as a focal variable would be interesting and valuable in order to learn about the existence of more subtle forms of ageism in organizations. Also of relevance to our perspective that we must examine older workers within their organizational context is the impact that age-related stereotypes about jobs, tasks, and older workers may have on older workers themselves. Are there contextual factors that make more salient age stereotypes to older workers themselves? Self-identity is related to social identity in that the social groups with whom we identify also constitute one basis for our social identity. If an older worker is employed in a work setting that enhances the salience of age, then that worker’s self-identity and associated behaviors, beliefs, and attitudes are likely to be affected by age and related variables. Contextual factors that are likely to make age salient to the older worker are similar to those that influence the salience of age to others in the workplace and include



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task content, change, and technology. Tasks that are speeded, jobs that are characterized by changing requirements, and high tech information and communication systems that are frequently used by all employees are among the contextual variables that make age salient to all members of the work group. We expect that the impact of age is greater in these settings than in those where age is not so salient. An intriguing development related to self-identity and stereotypes is the concept of stereotype-threat that Steele and colleagues have proposed with regard to racial stereotypes and groups. They suggest that situations in which there occurs the evaluation of an individual on factors related to a group stereotype that is relevant for the individual lead to the perception of stereotype threat and, subsequently, to lower performance on the factor being evaluated. Stereotype-threat is defined as the risk of confirming negative stereotypes that may causally influence group members’ actual performance (Steele & Aronson, 1995; Steele, 1997). In particular, Steele and Aronson found that Black participants underperformed relative to Whites on a challenging verbal test only when it was presented as an ability diagnostic. Stereotype-threat research has not been extended to older workers, but such research could be useful. Summary Job performance is jointly affected by a job’s motivating potential, its difficulty, and workplace design. Because of decrements in decision-making speed, concentration, and problem solving, the performance of older workers may suffer if the job is too cognitively demanding (Warr, 1994). However, Schooler, Caplan, and Oates (1998) note that older workers often have higher levels of motivation and commitment. Older workers are also likely to maintain motivation levels for more interesting and challenging work. Such enhanced motivation may compensate for cognitive deficits, consistent with the general view that performance is a joint function of ability and motivation. Furthermore, research reviewed by Salthouse and Maurer (1996) suggests that older workers often are able to adopt different work strategies that also allow them to compensate for the negative effects of cognitive slowing and other deficits. One recommendation for improving the workplace to increase successful performance by older workers is to take proactive work design measures that also may compensate for cognitive declines, while still presenting older workers with challenging work. Sterns and Camp (1998) suggest that various workplace interventions can be used to assist older workers. Research examining how best to facilitate older patient understanding and adherence to medical regimens can be applied to work settings. For example, the availability of memory aids, such as charts or written instructions, and appropriate training in their use could eliminate some of the problems that older workers might have with declines in working memory (Sterns & Camp, 1998).


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Many contextual factors in the immediate work environment influence both the performance and attitudes of older workers and the behavior and attitudes of other organizational members. The roles of age stereotypes about older persons and about jobs are not well understood. Considerable additional research is needed to understand these complex relationships.

LAYER THREE: ORGANIZATIONAL POLICIES AND PRACTICES We consider in this section how selected organizational policies and practices, such as training and development, career management, and retirement incentives, may affect older worker performance and attitudes. Training and Development We focus on three aspects of organizational training and development that seem especially relevant for older workers: job-related obsolescence, the developmental opportunities in current jobs, and design of the learning environment. Job-related obsolescence Core factors in the likelihood either of employees being satisfactory in terms of performance or an employment situation having satisfactoriness for the employee are work-relevant skills and knowledges. Of particular importance to older workers is the issue of obsolescence in terms of the level and types of skills and knowledges that are necessary for success in employment. As job requirements change, requisite skills and knowledges also change and older workers on average face more risk of their obsolescence. Indeed, skill and knowledge obsolescence were identified as major factors leading to the withdrawal of middle-aged workers from the workforce (Barnes-Farrell, 1993). Obsolescence has been perceived by employees as a major threat both to employment security and to personal identity (Pazy, 1994). Training and development activities are important opportunities for the prevention and remediation of obsolescence so their availability for older workers can be especially critical. However, companies have traditionally been hesitant to invest in training older workers (Forteza & Prieto, 1989). In addition, older workers have been found to have lower levels of motivation to engage in training and development in a recent meta-analysis (Colquitt, LePine, & Noe, 2000). Older workers also tend to be lower in self-efficacy following training concerning their ability to implement what was learned (Colquitt, LePine, & Noe, 2000), and in some cases older employees themselves also indicate that they are not able to learn effectively (Warr, 1998). Organizations that place the principal burden on employees for initiating involvement in developmental



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activities may be establishing organizational conditions for increased obsolescence among their older workers (Pazy, 1994). In addition, Kozlowski and Farr (1988) found that updating behaviors among engineers were related to challenging work assignments and the use of current technologies. Thus, conditions that seem to encourage updating exist when up-to-date skills and knowledges are required to perform current work assignments, and opportunities for relevant training and development are made available by the organization. Individuals facing obsolescence may become overly focused on only relatively narrow aspects of the problem. One common response to the threat of becoming obsolete is constriction (Pazy, 1996). Constriction refers to a narrowing of focus to one’s immediate set of problems and concerns and a narrowing of possible solutions to the obsolescence. The older worker perceiving personal obsolescence in current job duties is likely to devote all developmental energy and time to activities that address deficits in one’s capacity to complete those present assignments and may ignore longer-term implications and potential solutions. Furthermore, an individual facing severe threat may use only one or two possible approaches to updating of the many that exist. However, different individuals may adopt different schemas and coping mechanisms to define and deal with the threat of obsolescence (Pazy, 1994, 1996). Organizational rank and career stage are main determinants of which schema are adopted (Pazy, 1994). Although Pazy did not measure age per se, career stage may be highly correlated with age. Since older workers are likely to perceive obsolescence as a more severe threat than younger workers, the older individuals may have more problems using an appropriate schema to deal with the threat of obsolescence than younger employees. For example, in a field where it is necessary to learn a large quantity of data, an appropriate schema might be knowing a lot about a little (KLOTL), or studying one topic area in great depth. In this context, an inappropriate schema would be to know a little about a lot (KLLOT), whereby a little bit of knowledge of a lot of things is gathered through actions such as broad scanning (Pazy, 1994). Pazy defined a total of 11 schemas concerning obsolescence and updating that workers employed, suggesting considerable individual differences in how older workers may frame the issue of potential job obsolescence. Guidance from managers or others within the organization could be useful to help older workers identify appropriate strategies for attacking their deficits and to understand the range of possibilities that might exist. Developmental opportunities in current jobs Related to the use of challenging work assignments to combat obsolescence among older workers is the broader use of work assignments as a means of providing broad-based skill development for all employees. Tesluk and Jacobs (1998) have suggested a number of ways that organizational practices and


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policies can enhance the developmental value of past work assignments, or experience, for the future performance of employees. They note that typically experience is thought of simply as a quantitative measure of tenure with an individual’s experience being the amount of time on a job or as an employee of an organization. Tesluk and Jacobs argue that another dimension of work experience might be labeled as qualitative. Qualitative experience refers to the variety and complexity of the tasks a person has performed over a career or other amount of time. In terms of continued value to the organization, the older worker who has more qualitative experience seems likely to be superior to one with more quantitative, but limited qualitative experience, especially in changing organizations. Organizational human resource practices that can enhance the qualitative dimension of experience include the frequent use of taskforce and cross-functional team assignments, the use of sequenced assignments that build knowledge and skill sets, and the provision of systematic feedback that highlights what can be learned from past work (Tesluk & Jacobs, 1998). Design of learning environments A meta-analysis of the relationship of performance in job-related training with age revealed that older trainees learned less and took longer to complete the training program than younger trainees, although the differences were smaller in field samples than in the laboratory (Kubeck, Delp, Haslett, & McDaniel, 1996). This finding raises serious concerns about the design of training programs. Much of the concern about designing effective learning environments for older workers has been within the context of training programs related to new technologies. One example of technology-driven obsolescence is the speed with which computers change the methods by which tasks are performed in many jobs. Many older workers experience work difficulties in the information age (Morrell & Echt, 1996). This is due to a number of factors, including the fact that the target audience of most computer manufacturers and programmers has been younger adults and adolescents for whom the technology is not a major change. Another important factor that has limited effective computer use by older workers has been the lack of sufficient instructional materials for this population (Morrell & Echt, 1996). Another type of task on which older individuals have consistently shown poorer performance than younger ones is dual-task, or divided attention paradigms. Kramer and Larish (1996) have reviewed the literature on dual-task performance. Because multiple demands in complex jobs can require that employees engage in dual-task activities, older workers may experience performance decrements. Although training can help dual-task performance in all age groups, results of several of the studies outlined by Kramer and Larish suggest that it may be possible to use particular training strategies to assist older subjects. For example, using a combination of part and whole task training can facilitate performance. Additionally, feedback appears to have a beneficial effect



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on dual-task performance, although further research is required to determine optimal amounts (Kramer & Larish, 1996). Inclusion of pictures in directions, and utilization of ‘on-line, proceed at your own pace’ tutorials have also proven effective for training older workers on computers (Morrell & Echt, 1996). These results may be generalizable to other situations, including computer training. Other research has shown that training which encourages the learner to explore fully new knowledge structures or systems, to test one’s knowledge extensively so that errors are likely, and to learn from those errors is more effective in terms of transfer of training than tutorial-style training that attempts to minimize trainee errors during learning (Frese & Zapf, 1994). Research that examines the generalization of these results to older worker populations is needed, but the frequent use of tutorial-style training related to learning both hardware and software systems suggests that it may be fruitful to examine error-training procedures with older individuals. Forteza and Prieto (1989) summarized research examining what characteristics should be considered when designing a training course for older workers. They suggested that ‘[t]eaching must necessarily be slow, deliberate, repetitive, and distributed in units of time with material that makes sense by itself and that can easily be connected with other material’ (p. 468). Training methods that have been successful in general in adult learning also show benefits for older workers, such as active learning, discovery training, and experimental learning, instead of straight lecture and memorization. Selfprogrammed learning, whereby workers can control the speed of information presentation as well as the order of presentation, may be especially beneficial for older workers (Forteza & Prieto, 1989). Summary Organizational incentives, formal and informal, that encourage older workers to participate in developmental activities are needed to expand training involvement and reduce obsolescence. Warr (2001) has noted that senior management support and resource allocation are required to create organizational programs and policies that can effectively increase such participation. Such programs combined with effective learning designs can enhance the older worker’s efficacy about learning, actual learning in training, and transfer from training to the job. Human resource systems that recognize the developmental opportunities that can exist in an employee’s current job can enhance the value of seniority in the organization and create a better work climate for older employees and a more effective organization. Career Management For several decades following World War II large corporations developed human resource practices that stressed job security and organizational


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responsibility for career planning and development, especially for individuals in management positions. Managers in many organizations expected long careers with a single employer and promotion patterns that rewarded loyalty and seniority. Organizational success was generally defined in these organizations by upward progress through the corporate hierarchy. In the last two decades of the twentieth century and continuing into the twenty-first century, organizations facing new patterns of competition began to change their organizational structures and their career management practices. Seniority became less important as a factor in advancement and job security was frequently abandoned as a mainstay of corporate human resource policy. As results of these changes, an increasing number of managers faced career plateauing and job loss following organizational downsizing. Career plateauing Allen, Poteet, and Russell (1998) have discussed the evolving definition of career plateauing, initially defined as the point in a manager’s career at which further hierarchical advancement is unlikely. Later this definition was expanded to include job content and responsibility plateauing, chararacterized by work tasks that remain relatively constant in challenge and demands. Finally, Chao (1990) found that the individual’s perception of being plateaued was more important than objectively assessed plateauing (measured as length of time since last promotion or job tenure), a finding replicated by Tremblay, Roger, and Toulouse (1995), among others. The large number of Baby Boomers reaching mid-career at the time when organizations began to reduce the number of managerial layers and to reduce their workforces resulted in a large reduction in the number of promotional opportunities for middle managers (Feldman, 1996). For organizations an important issue is the work motivation and performance of the plateaued managers facing work that doesn’t challenge them, and with reduced prospects of future improvement in job content or hierarchical level. It has been frequently recommended that organizations offer psychological growth through enriched work assignments for those individuals for whom hierarchical advancement is not likely (Rotondo & Perrewe, 2000). For individuals the issues are related to coping with their plateaued status and finding satisfaction and self-worth in their jobs. Not surprisingly, Allen, Poteet, and Russell (1998) found that plateaued managers had less favorable job attitudes than non-plateaued managers, and that those who perceived that they were plateaued both in terms of hierarchy and job content had less favorable attitudes than those plateaued in terms of only one reason. Those plateaued in terms of job content only had less favorable work attitudes than those plateaued in terms of only hierarchy. The managers who were plateaued in terms of job content only tended to be younger than those plateaued hierarchically and expressed a higher intention to leave the organization than



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those hierarchically plateaued. Ettington (1998) found that plateaued managers received lower performance ratings than non-plateaued managers, whether plateauing was assessed objectively or subjectively, while only managers who perceived themselves as plateaued had lower job satisfaction. Objectively plateaued managers who did not perceive themselves as plateaued had higher job performance ratings and higher job satisfaction than those who did perceive themselves as plateaued. Thus, some managers appeared to cope with their objective plateauing better than others. Rotondo and Perrewe (2000) contrasted the coping responses and various outcome measures for employees who did and did not perceive themselves to be plateaued. Both plateaued and non-plateaued employees reported similar levels of most positive coping responses (work on special projects or teams, mentoring, new job assignments, serving as a technical expert), but plateaued employees reported more lateral transfers. For plateaued employees, the use of these positive coping responses was in general more strongly related to favorable work attitudes and performance than was the case for non-plateaued employees. The exception was that use of lateral transfers was correlated negatively with job attitudes for plateaued employees. The use of negative coping responses (e.g., blaming the organization, decreased quality and quantity of work, psychological withdrawal, alcohol/drug use) was negatively correlated with work attitudes and performance for both plateaued and nonplateaued employees. It is encouraging to note that the positive coping responses described by Rotondo and Perrewe are amenable to organizational support through availability of resources and managerial practices and policies. Ettington (1997) has also noted several human resource practices that may assist the plateaued employee in successful coping. These include the use of regular multisource (or 360 degree) feedback that examines a broad range of performance dimensions to provide many possible indicators of the employee’s contributions, and the design and delivery of training for all employees that focuses on the organization’s future business needs and not just on the skills needed for higher-level positions. Downsizing, job loss, and early retirement In addition to career plateauing, an even more negative outcome for many older workers has been job loss following organizational downsizing. While older American workers have some legal protection against discriminatory job loss on the basis of age through the Age Discrimination in Employment Act, organizations using downsizing to cut costs have incentive to remove older employees from the workforce since they typically have higher average compensation than younger workers. In addition, when an organization downsizes by closing entire plants or units, older workers have few additional legal protections. Labor economic research reviewed by Chan and Stevens (1999) indicates that the probability of job loss increased most in the USA for workers


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aged 55–64 during the last 20 years. Empirical research conducted by Chan and Stevens (1999) found that the probability of an older worker returning to the workforce within 2 years following job loss decreased substantially if the worker was 60 or older at time of job loss. Furthermore, the odds of subsequent job loss were increased as a function of the age at which the initial job loss occurred. Many older workers eventually withdrew from the workforce in terms of actively seeking employment and ‘retired’, although certainly it is likely that many would perceive their retirement as involuntary (Chan & Stevens, 1999). Many organizations in the last two decades have used early retirement incentives as a human resource tool to manage organizational size and composition. Frequently, organizations planning to downsize or restructure their overall workforce have offered early retirement packages to all employees who met seniority and age criteria. Organizational management generally prefers to decrease workforce size through early retirement than through layoff. The early retirement package is often offered to eligible employees for a limited period of time, and employees may perceive a threat of layoff for those who decline the early retirement offer. Thus, employees may differ in terms of whether they view acceptance of early retirement as voluntary or forced (Hardy & Quadagno, 1995; Isaksson & Johansson, 2000). Research has shown that retirement-related reactions are associated with perceptions of whether early retirement was voluntary. Those employees who view their early retirement as more voluntary also have more favorable reactions and other outcome variables than those perceiving it as involuntary (Shultz, Morton, & Weckerle, 1998). There have been several interesting, recent extensions of existing research on early retirement packages as parts of organizational downsizing plans. Isaksson and Johansson (2000) examined the effects over time of voluntary and forced employment status, both retirement and continued employment, in an organization that offered all employees over age 55 the opportunity to apply for early retirement, but then did not accept all such applications. Thus, in their research sample were groups of individuals who wanted to remain working but were forced to retire, those who wanted to remain working and did, those who wanted to take early retirement but were not allowed to, and those who wanted early retirement and received it. They found that a match of desired and actual employment status resulted in positive outcomes across an 18-month interval, while involuntary status, whether retirement or employment, was associated with negative outcomes. Mollica and DeWitt (2000) examined the reactions to an early retirement program of employees who had not been eligible for early retirement and had remained in the organization. Those who perceived the early retirement package as overly generous had increased intentions to quit, especially if they were higher in tenure with the company. Employee age did not have a differential relationship with intention to leave for those employees who judged the retirement package to be overly



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generous. However, a secondary analysis revealed that the subgroup of older employees with lower tenure did not intend to leave the organization at a higher rate. The attitudes and behavior of the survivors of organizational layoffs have also been examined. Mishra and Spreitzer (1998) summarize much of this research and present a typology of survivor responses. They note that survivors have variable reactions to layoffs and the resulting downsizing of the organization that can be summarized along two dimensions: an active-passive continuum and a constructive-destructive continuum. Crossing these two dimensions yields four categories of responses to layoffs among the survivors which Mishra and Spreitzer label as fearful, obliging, cynical, and hopeful. These response syndromes result from a two-stage appraisal process in which the survivors first appraise the degree of threat they perceive from the layoffs and then engage in a secondary appraisal of coping resources that are available. Organizational factors of perceived justice and trust influence the primary appraisal of threat, while factors of empowerment and work redesign influence the secondary appraisal of coping resources. Thus, the responses of survivors to layoffs and a downsized organization is likely to be positive to the extent that the organization is high in perceived justice and trust and is characterized by empowered survivors with varied and autonomous jobs that do not result in role overload. Mishra and Spreitzer (1998) do not consider whether demographic characteristics of employees would interact with the organizational factors in their model. To the extent that older workers are likely to differ from younger workers on the variables influencing survivor reactions, we would expect age-related differences. This is a research domain of considerable promise. Summary Career management practices in organizations must take more explicit account of the increasing likelihood that individuals will not simply progress upward through an organizational hierarchy during their careers. Alternate career paths that involve multiple definitions of success and multiple career trajectories must be encouraged and rewarded. Many lines of research converge on the conclusion that work content that provides intrinsic challenge and satisfaction for the older worker may be the core element in any successful strategy for dealing with such career concerns as plateauing and the downsized organization. Retirement Policies In addition to questions related to downsizing, several issues related to organizational retirement practices and policies characterize recent research concerning older workers. In the USA mandatory retirement ages have been abolished for almost all occupations, the exceptions being commercial airline


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pilots and individuals in public safety jobs (police, firefighting, corrections), allowing older workers discretion regarding their retirement age. Data on socalled voluntary retirement age have indicated a recent shift in the USA in the employment participation rates of older employees with a greater percentage electing to remain employed, reversing or at least slowing a long trend toward earlier retirement. Structural factors such as the ages at which various levels of retirement funds are provided have predictable and large effects on retirement decisions, but many older Americans do base their retirement decisions on personal considerations. Important among these are health considerations and perceptions about financial status in retirement. Planned retirement age decreases as health concerns and perceived financial status increase (e.g., Taylor & Shore, 1995; Beehr, 1986; Feldman, 1994). Among work-related attitudes, occupational commitment and organizational commitment have been found to correlate positively with planned retirement age (e.g., Taylor & Shore, 1995; Adams, 1999), while job satisfaction has not correlated significantly with planned retirement age (e.g., Adams, 1999; Taylor & Shore, 1995). Increasing numbers of older workers do not simply choose between continued employment and retirement. A growing option is some form of parttime or bridge employment (Hayward, Hardy, & Liu, 1994; Feldman, 1994; Weckerle & Shultz, 1999). Bridge employment is a transition between fulltime employment and retirement that may assist the older worker in adjusting to the transition from being ‘employed’ (full-time) to ‘retired’ (Hansson, DeKoekkoek, Neece, & Paterson, 1997) and typically is characterized by a reduction in hours worked and/or responsibilities (Weckerle & Schultz, 1999). Weckerle and Schultz (1999) examined the factors that were associated with older workers’ consideration of retirement, continued full-time employment in their present job, bridge employment in present type of work, or bridge employment in a different type of work. Perceptions of current and future financial situation were the most consistent factors that distinguished workers. Those who were satisfied with their current financial situation reported active consideration of retirement, those who were dissatisfied with their future financial prospects were considering continued full-time employment, and those whose average financial satisfaction fell between those of the retirement and continued employment groups were most likely to be considering some form of bridge employment. The concept of bridge employment complicates the traditional view that older workers simply move from employment to retirement. Hayward, Hardy, and Liu (1994), Mutchler, Burr, Pienta, and Massagli (1997), and Hansson et al. (1997) all argue that the structure of the retirement decision and process is even more complicated than the addition of bridge employment would imply. They note that fairly large proportions of older workers move back and forth multiple times from employment to retirement. They note that this is not simply periods of employment and unemployment, but changes in whether individuals identify themselves as retired or members of the workforce.



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Much of the research on multiple labor market exits and entrances by older workers has been focused on economic and structural factors related to this phenomenon, but some of the research has been behavioral in nature. Eichar, Norland, Brady, and Fortinsky (1991) studied a sample of older workers who had re-entered the workforce following an official retirement to take part-time jobs generally unrelated to their pre-retirement work. Eichar et al. found that intrinsic factors relating to skill and autonomy had a positive effect on employee job satisfaction. Regressions performed with situational variables yielded significant results only for intrinsic indicators of skill and autonomy, and not any extrinsic measures, such as medical insurance or material benefits. Additionally, objective intrinsic characteristics of the work affected satisfaction directly, regardless of the mediators tested (such as work orientation). In light of these results, Eichar et al. discuss the growing mismatch between the available part-time jobs for these older workers and desirable levels of intrinsic characteristics. Most part-time positions are in the service sector, and were previously held by teenagers and young workers who generally viewed their position as temporary. However, the availability of these younger workers is decreasing and organizations increasingly are looking to older workers for these jobs. Because such positions are often ‘at best modestly challenging, and at worst stultifying’ (p. 617), Eichar et al. (1991) suggest that further research is needed concerning the performance and reactions of older workers in this type of job. Indeed, research should also investigate how jobs previously performed by teenage part-time staff can be adjusted to accommodate better an aging work population. Summary Few industrial-organizational psychologists have studied retirement, as studying how people leave the workforce never seemed as central as studying their behavior at work, but changes in the dynamics of the workforce and in the varieties of transitions that characterize the retirement process have altered things. ‘Partially’ retired individuals constitute a potentially important pool of human resources for organizations facing skilled labor shortages. Increased life expectancies and the improved health status of older persons suggest that an increasing number of older workers will want to maintain at least some employment beyond traditional retirement ages. Organizations need to develop flexible human resource practices that allow them to take advantage of this opportunity while meeting the needs of older workers.

THE FINAL LAYER OF THE ONION MODEL A number of authors writing about organizational research, including Cappelli (1999), Rousseau (1997), and Howard (1995), have identified several themes


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related to the changing nature of organizations and work. Few of these have examined employee age or career stage to any great degree, but they represent domains of human resources research especially relevant to today’s rapidly evolving world of work. Thus, the incorporation of these macro-level factors into the context of older worker research is strongly needed. The themes that we have selected for inclusion from a much longer list identified by Cappelli, Rousseau, Howard, and other authors include new employment relationships; the shift to greater self-management for employees; and managing organizational change and individual transitions. New Employee Relationships Older workers today face a completely different workplace than the one they originally entered when they started their careers. Organizations are flatter, resulting in reduced opportunities for promotions and advancement as traditionally conceptualized (Ahlburg & Kimmel, 1986). This suggests that one focus of organizational human resource directives should be to examine alternative forms of recognition and job advancement that will motivate, reward, and stimulate employees regardless of age. Although promotional success opportunities may be limited, the ways to reach psychological success are infinite (Hall & Richter, 1990). Baby Boomers are just the first cohort in a generation that has witnessed a dramatic shift in organizational structure (Ahlburg & Kimmel, 1986). Care should be taken, however, to ensure that no negative feelings occur. Research suggests that downward status moves can have a negative impact and require a great amount of psychological adjustment (West, Nicholson & Rees, 1990). New employment relationships include the outsourcing of functions previously performed by an organization’s employees, contract employees with limited employment terms, and many types of short-term work groups with shifting memberships, often geographically separated and linked only by telecommunication systems (sometimes labeled ‘virtual work groups’). Many of the human resource issues related to these new employment relationships involve the access to and distribution of various kinds of rewards, both extrinsic and intrinsic, and touch on such factors as perceived fairness, relationship with performance (individual and group), and the nature of the rewards themselves (Rousseau, 1997). As permanence of employment with a single organization becomes more tenuous and hierarchies within organizations become flatter, rewards are shifting from promotion and salary increase toward those that are more longer term (and perhaps more intrinsic) in nature. For example, developing personal skills and knowledge (and future employability) and performing interesting and challenging work are common intrinsic rewards. In addition, research is recognizing that employees look at compensation and other conditions of employment as ‘reward bundles’, not as single, discrete rewards (e.g., Gerhart & Milkovich, 1993).



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Self-management Because careers are no longer direct series of upward moves in a particular organization, continuous learning is the new strategy of career development (Hall & Mirvis, 1995). A person may have a series of short careers within his/ her lifetime, and may face several job transitions (Hall & Mirvis, 1995; Brett, 1984; Sullivan, 1999). Career counseling for older workers should focus on the potential for psychological fulfillment and personal development rather than on traditional indicators of success (Hall & Mirvis, 1995; Pinder & Walter, 1984). Because of this individualization of career trajectories, the current trend is on self-management of careers and related employment issues. The shift to greater self-management refers to the trend for more personal (and less organizational and managerial) responsibility for employees’ careers, employment security, and current goal setting and performance (e.g., Latham & Locke, 1991; Manz, 1992; Mirvis & Hall, 1994). Increasingly, employees are expected to take charge of planning developmental activities that enhance employability and correct competency deficits. The reduction of levels in the typical organizational hierarchy also has pushed what were usually managerial functions to the level of the work group and individual employee, giving rise to ‘self-managed and self-leading work groups’ (Manz, 1992) and ‘empowered employees’ (Liden & Arad, 1996). Recent research in both Europe (e.g., Frese, Fay, Hilburger, Leng, & Tag, 1997; Fay & Frese, 2001) and North America (e.g., Wanberg & Kammeyer-Mueller, 2000) has addressed the importance of employees being self-motivated and proactive at work. Frese and his colleagues use the term ‘personal initiative’ to refer to an employee taking an active and self-starting approach to work tasks and goals and persevering to attain those goals even when faced with barriers to task accomplishment. Personal initiative has been shown to be related to a variety of individual traits and orientations and to characteristics of the work situation, as well as correlated with effective performance at both the individual and organizational levels (Fay & Frese, 2001). Wanberg and Kammeyer-Mueller (2000) examined proactivity among organizational newcomers. They found that proactivity, as measured by such behaviors as feedback seeking and relationship building, was related to several work outcomes, including job satisfaction, role clarity, social integration, and intention to remain with the organization. While Fay and Frese (2001) did not indicate whether employee age was related to personal initiative, Wanberg and Kammeyer-Mueller (2000) found that older newcomers were more likely to view situations as opportunities and not threats. Additional research on the extent to which older workers exhibit proactive and self-motivated behavior and on the organizational factors that encourage such behavior among older workers is needed.


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Organizational Change and Individual Transitions

Organizational change through downsizing, restructuring, joint ventures, and mergers and acquisitions has been rampant during the past 15 years and shows little sign of becoming less a fact of contemporary organizational life (Howard, 1995). With such organizational change typically come new technology, organizational culture, strategy, and employment arrangements (Rousseau, 1997). Similarly, individual employee transitions (hirings, terminations, transfers, promotions, demotions, etc.) typically occur as a result of organizational change. Acceptance of and adaptation to organizational change by employees have been recently examined from several research perspectives. Pulakos and her colleagues have obtained evidence suggesting that adaptability by employees is important in a wide variety of occupations (Pulakos, Arad, Donovan, & Plamondon, 2000). Their results indicate that adaptability is a multidimensional construct with components that involve various types of unpredictability, variety, creativity, and learning. Rousseau and Tijoriwala (1999) found considerable variation among employees of an organization undergoing large-scale change in their beliefs about the reasons for the change. While most employees believed the managerial account of the reason for the change effort (which was quality improvement), a substantial number of employees believed the actual reason was either economic or political in nature. Those who believed the managerial reason tended to be in organizational units in which change had been more effectively implemented and to be higher in trust of management. Wanberg and Banas (2000) examined the relationships among several individual and situational variables and openness to change and workrelated responses to an organizational change process. While employee age was not significantly correlated with openness to change, job satisfaction, or actual turnover, it did correlate negatively with work irritation (the tendency to become angry, aggravated, and annoyed at work) and intention to turnover when these were measured during the change process. Thus, older workers exhibited higher levels of some negative work outcomes while the change process was being implemented. Neither Rousseau and Tijoriwala (1999) nor Pulakos et al. (2000) report relationships of age with perceived reasons for organizational change or with adaptability, respectively. Given that a component of the common stereotype about older persons is that they do not accept change readily (Von Dras & Blumenthtal, 2000), more empirical data on the relationship of worker age with organizational change reactions would provide interesting information about the validity of the stereotype. Central to research on organizational change and individual transitions has been a focus on perceived organizational justice as a mediating variable in the relationship between such change and employee responses (Rousseau, 1997). Justice perceptions can be further differentiated into several categories, including procedural and distributive (Greenberg, 1996). Procedural justice



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refers to the perceived fairness of organizational procedures used to make decisions (usually, allocation or selection decisions), whereas distributive justice refers to the perceived fairness of the decision outcomes. Increasingly, research evidence has demonstrated that how an organization manages the change process has an important impact on justice perceptions and consequently on employee reactions to change. New employment relationships, the shift to greater self-management, and the management of organizational change and individual transitions all appear to have important implications for older workers. All involve change and perhaps represent different types of violation of the psychological contract (Rousseau, 1995) that older workers have developed during their lengthy terms of employment. A psychological contract is a set of beliefs held by an individual (an employee) regarding the terms of one’s exchange relationship with the employing organization. Traditionally, in large US organizations, most employees believed that their psychological contract with the organization included the promise of (‘working life’ long) job security, upward progression, and general work stability and predictability in exchange for organizational loyalty and acceptable work performance. Psychological contract violation has been found to be related to decreased job satisfaction, reduced work performance (especially in terms of citizenship behaviors), and increased turnover intentions (Morrison & Robinson, 1997). Research contrasting the perceived violation of older workers’ psychological contracts with that of younger employees has not been reported. However, one could speculate that older workers, in general, are likely to believe they deserve more entitlements than younger workers due to their increased experience and seniority and, thus, experience more severe perceived contract violation when perceived promises are unmet. Researchers predict that the Baby Boom cohort (those born between 1946 and 1964) will have slower advancement, lower compensation, lower job satisfaction, reduced organizational commitment and increased absenteeism and withdrawal than has been experienced previously by smaller cohorts (Ahlburg & Kimmel, 1986). Research, however, has mainly been conducted on older workers born before the Baby Boom years. Thus, research needs to examine issues beyond generic successful aging at work, including specific issues related to the Baby Boom cohort. Future success for following generations will depend upon the recognition of, and effective response to, the problems caused by the Baby Boomers in the workplace. A point that often goes unnoticed is that the Baby Boomers are causing changes in the workplace. The values, family orientations, and behaviors of the Baby Boomers have affected the manner by which industry conducts its work (Hall & Richter, 1990). More than any other cohort in the past, Baby Boomers are concerned about quality of life issues and finding personal psychological meaning in their work (Pinder & Walter, 1984). Thus, not only does research need to consider the effects that older workers are experiencing


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in today’s workplace, but what changes organizations are experiencing because of older workers. Conclusion We offer two tables that provide summary information related to the various layers of the Farr, Tesluk, and Klein (1998) model. Table 2.1 summarizes the Table 2.1

A summary of conclusions at each level of the onion model

Level

Heading

Conclusions

The older worker

Abilities

● Avoid highly speeded tasks when possible ● Increase reliance on accultural knowledge, crystallized intelligence, verbal comprehension and experience ● Consider multiple dimensions of performance; no linear relationship between age & performance supported; consider task and job type as moderators of age–performance relationship ● Capitalize on the increase in satisfaction & commitment with older workers

Performance

Attitudes Contextual factors in immediate work environment

Job characteristics Demography

Work Environment Organizational policies/practices

Training

Plateauing Downsizing Organizational structure: the final layer

Organizational demography Organizational culture New employee relationships Selfmanagement Organizational change

● Aim for intrinsic motivation in tasks ● Use memory aids to compensate for cognitive decline ● Consider diversity training to compensate for negative effects of age diversity or relational demography between supervisor and subordinate dyads and within work groups ● Consider human factors: decrease glare, assess illumination levels, etc. ● Include older workers in training ● Teach appropriate schemas for obsolescence ● Use self-programmed, self-paced training ● Provide challenging work and opportunities to serve as mentors and specialized technical experts ● Consider levels of perceived justice and trust when designing downsizing plans ● Consider not only the individual, but the individual within the organization ● Stereotype education may be necessary for younger workers ● Use alternate forms of job advancement and recognition ● Teach employees to self-manage their careers ● Consider procedural justice as changes occur



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general conclusions that have been discussed under each level of the model of older workers within their organizational context. There are several recommendations for practice that may help to enhance older worker success, in terms of both task performance and attitudes, as an individual, in the immediate work environment, in the organization, and in the larger social environment. Table 2.2 follows the same structure as Table 2.1 and proposes areas for future research related to older workers that seem especially critical to us. An organization’s workers, young and older, can benefit from carefully instituted human resources and human factors initiatives, but we need to know more about many things. We hope that these suggestions will stimulate organizational researchers to examine these and other issues related to older workers. We also hope that our readers themselves reach the status of older workers one day! Table 2.2 A summary of recommendations for research at each level of the onion model Level

Recommendation for further research

The older worker: the core

● What role does experience play in compensating for age-related declines in performance? ● What trade-offs exist between the varying demands at work, such as interpersonal, cognitive and adaptive? ● What factors moderate the relationship between cognitive decline and work performance (e.g., factors such as attitude, perceived age, selfefficacy, etc.)? ● What is the relationship between age and contextual, or OCB, aspects of performance?

Contextual factors in immediate work environment

● How do the different factors of organizational demography research (such as age, race and tenure) interact? ● What age-related changes are avoidable or reversible with sufficient training or adequate workplace design? ● What type of memory aids are most effective for given situations? ● How can jobs be designed to optimize intrinsic motivation? ● How can the impact of stereotypes and self-stereotypes about older workers be reduced?

Organizational policies/practices

● How can human resource practices emphasize intrinsic rewards instead of traditional extrinsic factors? ● What is the current psychological contract in organizations? ● What are older employee reactions to psychological contract violation, and how can these be made more adaptive? ● How can we bridge the gap between the desires of part-time older workers and the available work?

Organizational structure: the final layer

● How are older workers affected by the new employment relationships with the organization? ● What skills are necessary for the new age of ‘self-career management?’ ● How do increased numbers of older workers affect the organization? ● What factors related to the implementation of organizational change affect its acceptance by older workers?


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Chapter 3 EMPLOYMENT RELATIONSHIPS FROM THE EMPLOYER’S PERSPECTIVE: CURRENT RESEARCH AND FUTURE DIRECTIONS Anne Tsui Hong Kong University of Science and Technology and Duanxu Wang Zhejiang University, People’s Republic of China The past twenty years have witnessed unprecedented changes in the economic landscape around the world. Major corporate restructuring has occurred and in most cases is still ongoing in the US, the UK, Japan, Korea, China, the eastern European block, and more recently, SE Asia. A major consequence of corporate restructuring is the change in employment relationships with employees at all levels (Burack, 1993; Cappelli, 1999; Handy, 1990). In the US alone, it has been estimated that more than 5 million white-collar jobs have been eliminated by over 85% of the Fortune 1000 companies (Cameron, Freeman & Mishra, 1991; Casio, 1993). Hundreds and thousands of managers, who enjoyed upward mobility and job security for decades post World War II, have been laid off (Bluestone & Harrison, 1988). Employment security, which used to be a source of pride for many organizations, is no longer part of the employment contract in most contemporary firms. Even the People’s Republic of China, the only remaining large socialist state in the world where employment was guaranteed for life for all workers, introduced a new Labor Law in 1995 stipulating that all employees, including those in state-owned enterprises, be covered under employment contracts. The ‘iron rice bowl’ no longer exists, at least not according to legal regulation. These trends are of great concern to academic scholars who continue to believe and argue that ‘people’ are an organization’s most valuable resource (Pfeffer, 1994; Snell, Youndt & Wright, 1996; Ulrich, 1997; Wright & McMahan, 1992). Many scholars have documented different employment relationship International Review of Industrial and Organizational Psychology, 2002 Volume 17 Edited by C. L. Cooper and I. T. Robertson.  2002 John Wiley & Sons, Ltd.


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approaches, trying to demonstrate the superiority of some over others as a competitive tool for organizations operating in both the United States and beyond (Davis-Blake & Uzzi, 1993; Miles, 1989; Morishima, 1999; Romme, 1999; Tsui, Pearce, Porter & Hite, 1995; Tsui, Pearce, Porter & Tripoli, 1997; Wang & Mobley, 1999). Despite the large body of literature on this topic, however, there is still no definitive answer to a fundamental question. What are the alternative employment relationship approaches, that an employer can use to gain competitive advantage in the hyper-competitive and intensely complex global economy? One possible reason, we propose, is the lack of clarity on: (1) the concept of employment relationship; (2) the process by which this relationship influences ‘people’ and the firm; (3) the factors that should be considered in choosing an employment relationship approach that will realize its intended potential; and (4) its potential relationship to or distinction from the concept of psychological contract. Our discussion in this chapter is intended to provide some clarity on these issues through reviewing and organizing the relevant literature. We first review the existing literature on the approaches to the study of employment relationship, the effect of employment relationship on individuals and firms, and the factors that may influence a firm’s decision in adopting different employment relationship approaches. Then, we identify important conceptual gaps where there is a need for future systematic research. In particular, we call for conceptual integration between the concept of psychological construct from the individual perspective and employment relationship from the perspective of the employer. A preliminary conceptual framework that integrates the two perspectives is offered to guide future research.

APPROACHES TO THE STUDY OF EMPLOYMENT RELATIONSHIP By employment relationship, we refer to the formal and informal, the economic, social, and psychological connection between an employee and his or her employer. We identified five general approaches to the study of employment relationships based on the existing literature. The first approach is to view employment relationship as an employment contract. Typical examples are the labor contract (Ehrenberg & Smith, 1994; Hart, 1983), the compensation or incentive contract (Hart & Holstrom, 1987), or the consulting contract. This is an economic orientation to the idea of employment relationships. The second is a psychological orientation as captured by the idea of psychological contracts (Millward & Brewerton, 2000; Rousseau, 1995). The third approach is based on workforce governance models (e.g., Osterman, 1988; Walton, 1985). The fourth is related to human resource management research (e.g., Arthur, 1994; Delery & Doty, 1996). The fifth approach has its foundation in administrative science and views employment relationship explicitly as the exchange between contributions offered by the employee and


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inducements offered by the employer (Barnard, 1938; March & Simon, 1958; Tsui et al., 1997). Based on the first approach, the employment relationship can be thought of as a formal contract between the employee and the employer (Ehrenberg & Smith, 1994). As a formal contract, it should ideally lay out explicitly all that each party promises to do (e.g., work outputs) or give (e.g., pay or benefits) and what will happen if either party fails to perform as promised. This would include a penalty should either party fail to deliver or abrogate the contract. In reality, most employment contracts are incomplete and implicit and that penalty is seldom enforced or enforceable even when a party fails to deliver as promised. This is because employment contracts are insufficient to capture the complexity of all the possible expectations of both parties. For example, rarely could an employer spell out in advance all the specific tasks that may be required of employees. Doing so would limit the flexibility of the employer in responding to changing conditions, and it would also require that employers and employees renegotiate their employment contract when each new situation arises—which would be costly to both parties. As Rousseau (1995) states, ‘Completeness is not a fact of contracts’ (p. 19). As such, employment contracts (either their presence or their contents) are not a useful tool for managers to use to induce a high level of contribution and are not a meaningful concept for research because of their amorphous nature. Psychological contracts refer to a subjective belief by an employee in the mutual obligations between the employee and the employer (Rousseau, 1995). Unlike employment contracts, which can be written or formally specified, a psychological contract is inherently perceptual (Robinson, 1996). Due to this implicit nature, even employees holding the same job and working for the same employer, may have completely different psychological contracts (Rousseau & Tijoriwala, 1996). Further, a psychological contract could change over time as a result of changes within the employee, changes in the conditions of the firm, or interaction between the employer and the employee. As a result, unmet expectations and unfulfilled promises become a frequent occurrence, at least from the employee’s perspective. Empirical studies (e.g., Robinson & Rousseau, 1994) have demonstrated that about 55% of the employees reported violation of their contracts within two years of their employment. Furthermore, research has studied psychological contracts primarily from the point of view of the employee, while other approaches on employment relationship focus on the employer’s perspective. Herein lies the major distinction between employment relationships and psychological contracts. The former refers to an employer’s approach in managing the relationship with groups (or all) of employees in the firm since it is not efficient for a firm to have a unique employment relationship with each and every single employee. A psychological contract is inherently an individual-level phenomenon. It is held ‘unilaterally by the employee’ (Millward & Brewerton, 2000). As Rousseau (1989) clarified, ‘individuals have psychological contracts,


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organizations do not’ (p. 126). Millward and Brewerton (2000) offered a comprehensive review and discussion of the psychological contract idea from the employee’s perspective. The third through to the fifth approaches briefly introduced above address the employment relationship issue, directly or indirectly, from the employer’s perspective. The focus of this literature review is on the employer’s perspective in defining employment relationships. We now discuss these three approaches, from the employer’s perspective, in the literature. Employment Relationship from the Employer’s Perspective The first formal discussion of the idea akin to employment relationship is perhaps that by Barnard (1938). In treating the organization as a cooperative system, Barnard considered the relationship as one of providing inducements by the firm for the purpose of eliciting desired contributions from employees. Barnard did not specify particular forms of this relationship but his idea was considered the genesis of the concepts of both psychological contracts (Millward & Brewerton, 2000) and employment relationships (Tsui et al., 1997). One defining characteristic of the employment relationship literature from the employer’s perspective is that it focuses more on the content or type of the relationship and less on the process, that is, how and why a certain approach is developed or chosen by an employer. As such, the literature is rich with a large number of typologies, some based on control theories while others are based on a configuration of human resource management practices. A second notable feature of this literature is that the typologies converge on two general models; one focuses the employee’s attention and efforts on the job while the other focuses employee attention on the organization as a whole. Tsui et al. (1995) referred to one as a job-focused employee–organization relationship and the other as an organization-focused employee–organization relationship. These may be considered prototypic approaches in that they represent ideal forms even though actual practices may depart in varying degrees from these ideal forms. A third characteristic is that these two prototypic models are internally coherent such that job-focused models tend to involve a short-term relationship and limited investment by both the employee and the employer while the organization-focused models involve a mutual long-term and broad investment between them. Table 3.1 summarizes the typologies of employment relationship approaches identified in the workforce government and human resource management literature. Employment Relationship Emerging from Workforce Governance Models Etzioni (1961) presented one of the first formal discussions of the workforce governance issue with implications for the employment relationship with


EMPLOYMENT RELATIONSHIPS Table 3.1

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Typologies of employment relationship approaches Job-focused approach

Organizationfocused approach

Hybird/mixed/ other approaches

Etzioni (1961)

Utilitarian

Normative

None

Ouchi & Johnson (1978)

A type

Z type

None

Workforce governance models

Ouchi (1979, 1980)

Market

Clan

Bureaucracy

Walton (1985)

Control

Commitment

None

Lawler (1988, 1992)

Control-oriented

High involvement

Job and parallel suggestion involvement

Osterman (1988)

Industrial

Salaried

Craft, secondary

Mahoney & Watson (1993)

Authoritarian

Employee involvement

Collective bargaining

Romme (1999)

Domination

Self-determination

Circular organizing

Cost

Commitment

None

Employee skills and organizational structures; Employee motivation

None

Flexible production

Transitional

Human Resource Systems Arthur (1992, 1994) Huselid (1995)

MacDuffie (1995)

Mass production

Delery & Doty (1996)

Market

Internal

None

Kalleberg et al. (1996)

Low-performance work organization

High-performance work organization

Trainers

Youndt et al. (1996)

Administrative

Human-capitalenhancing

None

Ichniowski et al. (1997)

Traditional

Innovative

Two mixed systems

Wood & Menezes (1998)

Low ‘highcommitment management’

High ‘highcommitment management’

Medium ‘highcommitment management’

employees. He described two forms of employee involvement. One form of involvement is utilitarian, in which the relationship is functional or instrumental. Employee compliance is limited to performance of a specific job with explicit rewards. There is no expectation by the firm of employees’ psychological involvement or extended investment of their careers in the firm. The other form of involvement is normative, in which the relationship is social and psychological. The employee is expected to have full involvement with the


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organization and to consider the organization’s well-being over and above their personal and job concerns. A similar typology was found in Ouchi and Johnson (1978). They proposed two ideal types of organizational control: type A organization and type Z organization. The type A organization is characterized by a short-term relationship between the employer and the employee. It is associated with highly specialized tasks and a tightly monitored system. Evaluation takes place frequently and relies on hard measures. The type Z organization, in contrast, is characterized by a long-term relationship between the employer and the employee. It emphasizes collective or group decision-making and strong coordination between organizational units. It maintains control through developing common beliefs and values. Employees are required to develop broad skills through extensive training and are expected to focus on the success of collectivity in addition to the individual’s job. Evaluation takes place over the long term and relies on implicit and informal criteria. Ouchi (1980) offered an extension by introducing, in addition to market (similar to A type) and clan (similar to Z type), a bureaucratic form of control. The market form of control consists of spot contracts between two parties that are mediated by price mechanisms. When individual performance can be measured with certainty, this form of control has relatively low transaction costs, and is efficient in mediating the exchange relationship. However, when the measurement of performance becomes ambiguous, the transaction costs in the market form can increase to an unbearable level and the bureaucratic form can be more efficient. The bureaucratic form can reduce opportunistic behavior by monitoring performance through rules and hierarchical authority. Finally, when individual performance is highly ambiguous, bureaucracies also could fail due to the goal incongruence between two parties. Under the clan form of control, the organization develops common values and beliefs and reduces the goal incongruence through a process of intense socialization of employees. There is clear conceptual similarity between the utilitarian, A type and market form of control and between the normative, Z type and the clan in terms of desired employee behavior and in the methods used to induce the behaviors involved. Walton (1985) proposed a workforce management model that involves two strategies. He referred to them as the control strategy and the commitment strategy. The control strategy is associated with well-specified jobs and individual accountability. Employees are responsible for performing individual jobs and are provided with individual incentives. There is little voice and job security. Employees are viewed as variable costs to be minimized. The organization maintains coordination and control through rules and procedures. In contrast, organizations with the commitment strategy recognize employee commitment as a source of competitive advantage. They maintain coordination and control through shared goals, values, and traditions. Under the commitment strategy, the team is frequently used as the basic accountable unit



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and individual responsibilities extend to upgrading system performance. Employees are encouraged to participate in decision-making and are expected to focus on group achievement. In return, they are provided with some employment security, priority in training and retraining, gain-sharing and profitsharing. Lawler (1988, 1992) also distinguished an involvement-oriented approach from a control-oriented approach. The control-oriented approach assumes that hierarchy and vertical relationships are the best ways to manage people. It is associated with simplified, standardized, and specialized job tasks at the lowest level and with hierarchical decision-making. Rewards are based on carefully measured individual job performance. In contrast, under the involvement-oriented approach employees are encouraged to participate in decision-making. They are given information about the performance of the organization and have the power to influence decisions. In return, employees are provided with extensive training and high pay and are rewarded on the basis of organizational performance. There are three forms of involvement according to the degree to which the firm provides performance information, organization-based rewards, and the power to make decisions. In the parallel suggestion-involvement approach, employees are asked to suggest improvements and given the chance to influence decisions. The job-involvement approach is associated with job enrichment or teams. Employees are required to use a variety of skills and knowledge, given decision-making power in the immediate job and feedback, and rewarded on the basis of job and/or team performance. In the high-involvement approach, employees have input to strategic decisions. In return, the employer offers organization-based rewards such as profit-sharing, gain-sharing, and employee ownership. There is a clear conceptual parallel between Lawler’s typology and the typologies discussed by Etzioni, Ouchi, and Walton. Osterman (1988) identified four employment subsystems that differ in job classification and job definition, employee deployment, job security, and wage rules. In the industrial model, work is organized into a series of tightly defined jobs with clear work rules and responsibilities. Employees may move from one job to another and have clear job ladders and promotion sequences. There is no formal job security and rewards are based on job classification. In the salaried model, job descriptions are changeable and the administrative procedures are personalistic. Employees are provided with employment security and merit pay. Under both the industrial and salaried models, the employer is responsible for training and external entry to job ladders generally occurs at only a few points. In contrast, the distinctive characteristic of both the craft and the secondary models is the presumption of considerable interfirm movement. Employees acquire general instead of firm-specific skills and employee mobility is encouraged. The industrial model and the salaried model are embedded in the internal labor market while the craft model and the secondary model are embedded in the external labor market. The industrial and salaried models have high resemblance to the control and involvement approaches


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described by Lawler (1988, 1992), the control and commitment models in Walton (1985), the market and clan by Ouchi (1980), and the utilitarian and normative involvement models described by Etzioni (1961). Mahoney and Watson (1993) identified three types of workforce governance: the authoritarian model, the collective bargaining model, and the employee involvement model. They differ in the degree to which employees can influence decisions regarding conditions of employment. In the authoritarian model, there is limited employee participation in such decisions. The employer could deploy employees in the most efficient manner to pursue the interests of the organization. In the collective bargaining model, employees indirectly participate in such decisions through union representation. In contrast, employees directly participate in the decision-making in the employee involvement model. Thus, the focus of these models is on the extent to which employees can influence outcomes important to the employee in the employment relationship. European scholars have also documented variations in modes of control in recent years. For example, Romme (1999) contrasted self-determination as an alternative form of control to traditional control, which is embedded in the hierarchy. Various versions of self-determination exist, including autonomous work groups, self-designing organizations or self-managing teams. These forms of control emphasize spontaneous communication and informal cooperation, and commitment to group objectives. Thus, domination leads to a contractual relationship with employees while self-determination leads to a partnership, due to shared ownership (psychologically, legally, or both). Romme used a case study to illustrate the feasibility of integrating both traditional and self-organizing types of control. In summary, there is agreement among different scholars that there are two general modes of control. One mode relies on the hierarchy and authority resides in the employer. The other mode relies on value and authority is shared with employees. The former focuses employees on performing their jobs well while the latter expects employees to be concerned about the larger unit. Most discussion of these workforce governance models also involves several human resource management practices (such as training, pay, benefits) which have the function of stimulating or reinforcing employee behavior desired by the employer or to provide outcomes important to the employees. However, the same practice may target different outcomes. For instance, although both Lawler (1988, 1992) and Mahoney and Watson (1993) focused on employee participation in decision, they differed in the decision contents. Mahoney and Watson (1993) emphasized the decisions regarding conditions of employment (i.e., the firm’s return to the employee) while Lawler (1988, 1992) discussed decisions that influence organizational direction and performance (the employee’s contribution to the firm). Also, various HR practices such as job description, compensation system, and performance appraisal are used to communicate the employer’s expected contributions in



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these models. However, the specific employee behavior, actions, or attitudes are not fully spelled out. For example, when employers expect broad contribution, they are likely to evaluate or reward employees on the basis of group and organizational performance. One can infer from these practices that the employer desires the employees to focus their effort to benefit the entire organization and not only their individual jobs. Identifying a coherent set of human resource systems for each workforce governance model is not the explicit purpose of this literature. Instead, there is a separate stream of research that explicitly focuses on human resource practices in influencing firm performance and which have direct implications for the employment relationship with employees. Another distinction between the governance literature and the human resource management literature is that the former tends to be conceptual while the latter is predominantly empirical. We now turn to a review and discussion of these HR models that have implication for employment relationships. Employment Relationship Emerging from the Human Resource Management System We identified eight studies that offered typologies of human resource management systems that direct implication for employment relationship with employees. Table 3.1 summarized these eight studies. Four of the studies identified two systems and four studies offered additional hybrid or mixed systems. Seven of the eight studies identified two systems that show a conceptual parallel to the two models in the workforce governance literature. The exception is Huselid (1995), which focused on only the organization-focused HR system. His study represents a group of studies that focus exclusively on what is called ‘high-performance work systems’ or ‘high-commitment’ management systems (e.g., Guthrie, 2001; Hoque, 2000; Osterman, 1994). These studies do not contrast two or more different employment systems and thus we did not include them in this review, except Huselid (1995), which is included here for illustration. Based on a cluster analysis of ten human resource management practices in a sample of 30 US minimills, Arthur (1992, 1994) identified two configurations of human resource systems: control (he referred to this as the cost reduction system in the 1992 paper which used the same data set as the 1994 paper) and commitment (he referred to this as the commitment maximization system in the 1992 paper). The commitment system defines job tasks broadly, uses self-managing teams, and provides extensive training and development, relatively high pay, extensive benefits, and employee voice. Employees are paid a salary and have stock ownership. In contrast, the cost system defines job tasks narrowly, uses intense supervision and control, has limited training, relatively low pay, limited benefits, and little employee voice. The skill requirements are low and rewards are based on individual performance. Peck (1994)


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also contrasted two employment relationship approaches that are very similar to the typology identified by Arthur (1992, 1994). He described the transactional contract as similar to the job-focused employee relationship in Tsui et al. (1995). It is characterized by narrow job scope, tangible outcomes and a relatively short-term time frame. In contrast, the relational contract is similar to the organization-focused employee relationship and is characterized by open-ended jobs, loyalty, security and trust as well as continuation of relationship. Using factor analysis, Huselid (1995) identified two bundles of HR practices from 13 elements of ‘High-Performance Work Practices’. He labelled them as ‘employee skills and organizational structures’ and ‘employee motivation’ respectively. The ‘employee motivation’ bundle included the use of formal performance appraisals, the link between these appraisals and employee compensation, and promotion based on merit. The ‘employee skills and organizational structures’ bundle was mainly characterized by the presence of an internal labor market, training, employee participation and voice, and incentive compensation. Unlike other studies, both factors are high-performance systems and thus both imply an organization-focused employment relationship. Huselid described how the two systems are related to form an integrated high-performance system, ‘core competencies are developed through selection, training and the design of work (factor 1, employee skills and organizational structures) and are subsequently reinforced through the second factor, employee motivation’ (p. 647). MacDuffie (1995) identified three clusters of production systems, a flexible production system, a transitional system, and a mass production system, by combining a bundle of HR practices and manufacturing practices. The ‘flexible production’ system involves extensive training, plant performance-based compensation, teamwork, extensive job rotation, and employee participation in production-related decisions. In contrast, limited training and lack of contingent compensation, teamwork, and job rotation, and no voice by employees characterize the ‘mass production’ system. The transitional system is a hybrid that has features of both the mass production and the flexible systems. For example, it has less teamwork, training, employee participation, and contingent compensation than the flexible production system and implements less employee suggestion. However, it has much more training and contingent compensation than the mass production system. Using seven strategic human resource practices, Delery and Doty (1996) conceptually defined two ‘ideal’ employment systems, that is the market-type system and the internal system. The market-type system was associated with little use of internal career ladders, little training, no employment security, and little employee voice but has profit-sharing and broadly defined jobs. Performance was measured by quantifiable output or result-oriented measures. The internal system, in contrast, was characterized by extensive use of a well-defined career ladder, training and socialization, employment security, employee voice, tightly defined jobs



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and little use of profit-sharing. Performance was measured by behaviororiented measure. With the exception of job definitions and profit-sharing, these two employment systems are also consistent with that by Arthur (1994) and MacDuffie (1995) and the workforce governance models. Delery and Doty (1996) considered tightly defined jobs and very little use of profitsharing as features of the internal system. Using a national sample of 629 US establishments (independent operating units of different organizations), Kalleberg et al. (1996) identified three clusters of organizations: high performance, low performance, and trainers. They found employees in high-performance organizations had a high level of participation in decision-making, received more training, were provided with profit-sharing and internal careers. Low-performance organizations were lower on training and internal careers but higher on profit-sharing and employee participation in decision-making than trainers. The trainers were lower than high-performance organizations on all HR practices except training. Building on prior work, Youndt, Snell, Dean & Lepak (1996) also proposed two HR systems: an administrative system and a human-capital-enhancing system. The human-capital-enhancing system includes HR practices that affect skill acquisition and development while the administrative system includes standardized policies and procedures. Employees under the humancapital-enhancing system are provided with comprehensive training and compensation that is based on group performance and the employee’s skills. Technical and problem-solving skills are required and performance appraisal is developmental and behavior-based. In contrast, under the administrative approach, there is no comprehensive training for employees and compensation is based on individual performance rather than group or firm performance. Performance appraisal is administrative and results-based. The high-performance (Kalleberg et al. 1996) and the human-capital-enhancing systems (Youndt et al., 1996) have their conceptual parallel in the commitment system by Arthur (1994), the high-performance work system by Huselid (1995), the flexible production systems by MacDuffie (1995) and the internal systems by Delery and Doty (1996). The low-performance and administrative systems, on the other hand, are similar to the cost control system (Arthur, 1994), the mass production system (MacDuffie, 1995) and the market-type system (Delery & Doty, 1996). Most recently, Ichniowski, Shaw, and Prennushi (1997), informed by empirical distribution of a set of human resource practices variables, identified four HR systems: the innovative system, the traditional system, and two mixed systems. Seven HR practices were used to distinguish these four systems. Comprehensive training, high employee involvement, information sharing between workers and management, employment security, a broad multiattribute pay plan, and open-ended job tasks characterize the innovative system. In contrast, the traditional system was characterized by little formal training, close supervision by foremen, strict work rules and narrow job


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responsibilities, no teamwork, and incentive pay based on quantity and not quality of output. One mixed system is similar to the innovative system except that it lacks one or more of extensive screening, job rotation, multi-attribute incentive pay, and employment security. The other mixed system is similar to the traditional system except that it has worker involvement in teams and labor– management communication. Lastly, Wood and Menezes (1998) examined the effect of ‘high-commitment management’ on firm performance. They used data from the 1990 UK workplace industrial relations survey and the employers’ manpower and skills practices survey and separated the firms into high, low, and medium levels of high-commitment management, using seven subsets of human resource practices. The high ‘high-commitment management’ group scored high on direct communication, appraisal, autonomy, and information sharing from management. The low ‘high-commitment management’ group scored lowest on six of the seven HR practices. Again, high-commitment management seems to imply an organization-focused employment relationship while the lowcommitment management is more like a job-focused approach. Several observations could be derived from a comparison of these human resource systems. First, most of them use multiple human resource practices. This reflects the recent emphasis on a bundle of HR practices such that each configuration provides an internally consistent set of activities that provide an integrative and consistent message to employees. Many authors consider human resource practices as the primary instrument that firms use in communicating expectations and obligations to employees, that is, the basis for their psychological contracts (Guest, 1998; Rousseau & Greller, 1994). Second, all of these studies identified two primary systems with each of them comprising a set of HR practices that aim to achieve a balance between the scopes of responsibility or contributions expected of employees and the types of rewards that the employer offers to the employees. These two primary systems are highly similar to the two major models that are identified in the workforce governance literature. Third, different methods were used to construct the HR systems. For instance, Huselid (1995) used factor analysis while Arthur (1992, 1994) and MacDuffie (1995) used cluster analysis. Huselid and Becker (1997) used both factor and cluster analyses. Ichniowski, Shaw, and Prennushi (1997) identified the HRM systems by inspection of the distributions of the HRM variables. Youndt et al. (1996) simply combined various HR items into HR systems, based on earlier work. Factor analysis and cluster analysis were most frequently used to identify employment relationship approaches. The former is appropriate when the object is to estimate the economic return of various categories. The disadvantage is that it loses a lot of texture if the object is to understand patterns of practice across firms. Cluster analysis captures this pattern though determining the number of clusters can be a challenge without conceptual guidance. Even with different methods, however, there is a high level of consistency among the models identified by different authors.



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Fourth, for the same employment relationship, a different set of human resource practices is used. Table 3.2 summarizes the HR practices associated with each of the two prototypic employment relationship approaches. The last column shows the frequency with which a practice was used in defining the employment system across the studies. It appears that five human resource practices best distinguish the two approaches: job definition (specified versus open-ended), basis for reward (individual versus group), participation and voice (limited versus extensive), training (little versus comprehensive), and employment security (low versus high). Some of these practices are aimed at stimulating employee efforts and attention (e.g., job definition, basis for reward) while other practices are returns or rewards to the employees (e.g., voice and employment security). Some practices are not entirely clear about their intent or effect, for example, comprehensive training. It could be both for stimulating performance (e.g., to improve future job skills) and for showing a commitment to or an investment in the employees (e.g., for career development). In summary, the workforce governance and the human resource management literature does not provide a clear distinction between the contributions needed from employees and returns to the employees in the employment relationship. The fifth or final approach to the study of employment relationship, based on the inducement and contribution perspective, makes this distinction most explicit. Employment Relationship Based on the Inducement–Contribution Framework March and Simon (1958) further formalized the concepts of inducements and contributions which originated with Barnard (1938) in defining the exchange between an employee and an employer. Inducements are ‘payments’ that an employer provides to the employee in exchange for contributions or ‘payments’ that an employee provides to the employer (March & Simon, 1958, p.104). An employee is ‘satisfied’ when payment made by the employer is equal to or greater than the payment that he or she gives to the employer. An organization is ‘solvent’ when the employee’s payment is equal to or greater than the payment by the employer. A balanced employment relationship is attained when inducements are matched with contributions. Such is the case with job-focused or organization-focused employment relationship approaches identified in the literature. The job-focused approach resembles a pure economic exchange whereby the employer offers short-term economic inducements in exchange for well-specified contributions by the employee. A classic example is the relationship between a brokerage firm and a stockbroker. Neither party expects contributions or inducements beyond those specified. It is a balanced relationship because the exchange is relatively short term and close-ended for both parties. Tsui et al. (1997) referred to this as the ‘quasi spot contract approach’. The organization-focused employment


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relationship resembles a social exchange entailing unspecified, broad, and open-ended obligations on the part of both parties (Blau, 1986). In this relationship, the inducements offered by the employer go beyond short-term monetary rewards. They include an extended consideration of an employee’s overall well-being as well as an investment in the employee’s career within the firm. The employee’s obligations are contributions that go beyond performance of the job by treating the unit’s or the organization’s interests as important as his or her core duties. Tsui et al. (1997) called this the ‘mutual investment’ which is also a balanced relationship because it involves openended and long-term investment in each other by both the employee and the employer. The widespread corporate restructuring in the 1980s and early 90s suggested a paradox in the employment relationship approach found in many US firms and beyond. On the one hand, employers were engaged in major reduction of the workforce to gain efficiency. On the other hand, firms were appealing for a high level of employee commitment from their employees either directly (Pare, 1989) or through the widespread use of high-involvement programs (Lawler, Mohrman & Ledford, 1992). As Tsui et al. (1995) asked, ‘Is it possible for organizations to have both the freedom to terminate workers and expect them to be committed to the organization at the same time?’ (p. 118). In other words, can firms simultaneously adopt some features of the job-focused approach (i.e., limited inducements) and some features of the organization-focused approach (i.e., high level of expected contributions) in their employment relationship with employees? Tsui et al. (1997), in a study of ten companies in five competitive industries, found the existence of both balanced and unbalanced employment relationship being employed with a variety of jobs in each of the ten firms. One unbalanced approach is that in which expected contributions exceeded offered inducement (referred to as the ‘underinvestment approach’) and the other is one in which expected contributions are less than offered inducements (referred to as the ‘overinvestment approach’). The essential features of these four approaches are summarized in Table 3.3. As shown, the quasi spot contract has the features of a pure economic change with the primary focus on job-level contributions matched with shortterm and limited inducements. The mutual investment has the features of a social exchange in which employees are expected to make broad contributions at the unit or organizational level matched with extended inducements. The underinvestment is unbalanced in favor of the employer who expects broad contributions while offering narrowing inducements. The overinvestment is unbalanced in favor of the employee with the employer expecting narrow contributions but offering extensive inducement. Tsui et al. (1997) provided evidence on the adoption of all types of employment relationships by the ten firms in their sample, suggesting that the two prototypic approaches that dominate the literature are no longer sufficient to capture the reality in the contemporary context.


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Another distinction between the recent development by Tsui et al. (1997) and the models in the workforce governance and the human resource management literature is that the latter generally focus on the firm even though Osterman (1988) distinguished the approach toward hourly workers (as in the industrial model) and that toward the salaried employees (as in the salaried model). Tsui et al. (1997) proposed a finer analysis by arguing for focusing the employment relationship entirely at the job level. For example, the jobfocused approach may be appropriate for jobs with a high degree of measurability while the organization-focused approach may be suited for jobs with a high degree of interpersonal, informational, or technological embeddedness (Davis-Blake & Uzzi, 1993). The overinvestment approach may be useful to retain employees in jobs with extremely rare and valuable skills and a high level of firm-specific knowledge. The use of multiple employment relationship approaches at the job level provides the firms with the needed flexibility while maintaining a balanced exchange in most job categories. With the increasing use of contract workers and temporary employees, the existence of different employment relationships within a single firm is becoming a norm rather than an exception. In summary, recent development on employment relationship has extended beyond the two prototypic types by including two unbalanced approaches. While earlier typologies have their conceptual grounding in control theory and contingency perspective, recent development (e.g., Tsui et al., 1997) uses exchange theory as its conceptual foundation. The rise of unbalanced approaches was in part a response to the major corporate restructuring that requires firms to be lean and mean on the one hand but desiring greater commitment from employees on the other. With increasing global competition and the need for both efficiency and flexibility in the deployment of employees, the use of unbalanced approaches along with the two balanced approaches has become a necessity for most companies. Do these different approaches lead to different outcomes for the organization and the employees? The literature review below provides some, but incomplete, answers to this question.

THE EFFECTS OF EMPLOYMENT RELATIONSHIP ON FIRMS AND EMPLOYEES Although the conceptual models in the workforce governance literature propose a linkage between the nature of employment relationship and firm performance, few systematic empirical studies have tested this relationship directly. Most of the claim has been based on conceptual argument supported by case studies. For example, Walton (1985) suggested that the commitment strategy, based on conceptual analyses, should be associated with a relatively higher level of firm performance, employee satisfaction, and safety, and a lower level


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of absenteeism and turnover. Lawler (1992) reported that the involvementoriented approach generally outperformed the control-oriented approach, basing this on many case studies of companies that have adopted quality of work life programs and involvement teams. Ouchi and Johnson (1978) provided some evidence on the superiority of the Z type over the A type for organizational control. They found that executives in type Z organizations had a relatively higher level of mental health and stronger attachments to their organization than their counterparts in type A organizations. In the strategic human resource management literature, most studies focus on testing the relationship between a set of HR practices in the form of a system and firm performance. Some studies investigated the direct relationship while others tested a contingency hypothesis with business strategy as a contingent variable. We limited our review to those studies that related a typology of HR systems to firm or individual outcomes. Therefore, studies that focus on one specific HR practice (e.g., Cowherd & Levine, 1992) or use an aggregate of multiple HR practices (e.g., Guthrie, 2001; Hoque, 2000) are not included. We identified eight recent empirical studies that examined the link between bundles of HR systems and a variety of firm performance indicators. Using a sample of 30 US minimills, Arthur (1994) examined how the control and commitment HR systems were related to labor productivity, quality, and employee turnover at the firm level. He found that organizations with a commitment system had higher labor productivity, higher quality, and lower employee turnover than those with a control system. Huselid (1995), in a national sample of nearly a thousand publicly held US firms, found that the ‘employee skills and organizational structures’ bundle was negatively related to employee turnover and positively related to corporate financial performance (i.e., Tobin’s Q and gross rate of return on assets). They also found that the employee motivation bundle was positively related to productivity and Tobin’s Q. Unfortunately, his results did not support the theoretical expectation that fit between HR bundle and business strategy contributes to firm performance. In a sample of 62 worldwide auto assembly plants, MacDuffie (1995) compared the relative effects of the three clusters of production systems on assembly plant productivity and quality. In terms of labor productivity, he found that plants with a ‘flexible production’ system outperformed those with either ‘transitional’ or ‘mass production’ systems. With respect to quality, plants with a ‘flexible production’ system outperformed those with a ‘transitional’ system that, in turn, outperformed those with a ‘mass production’ system. Delery and Doty (1996) used a sample of 216 US banks and found a positive relationship between the financial performance of the firm (ROA and ROE) and the use of profit-sharing, results-oriented appraisal and employment security. However, they did not find the expected effects of HR systems and the fit between HR system and business strategy on firm performance. They



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concluded that the market system is superior to the internal system for firm performance. This conclusion might be misleading. The authors categorized profit-sharing and result-oriented performance evaluation as belonging to the market-type system while employment security belongs to the internal system. However, both profit-sharing and employment security are typically considered as practices related to an organization-focused employment relationship approach. Thus, the results of this study are quite consistent with others that have shown the financial benefits of an organization-focused employment relationship. Kalleberg et al. (1996) compared perceptual measures of firm performance among three groups of firms involving 727 US establishments. They showed that firms in the high-performance cluster have different human resource practices than those in the lower performance cluster. Youndt et al. (1996), in a sample of 97 US plants in the metal-working industry, found the ‘humancapital-enhancing’ system to be positively related to multiple dimensions of operational performance (i.e., employee productivity, machine efficiency, and customer alignment). In addition, the results showed that the fit between the human-capital-enhancing system and quality strategy was positively related to multiple dimensions of operational performance (i.e., employee productivity, machine efficiency, and customer alignment). They also found that the fit between cost strategy and the administrative system contributed to equipment efficiency. Ichniowski, Shaw and Prennushi (1997), in a sample of 36 steel finishing lines in 17 US steel companies, found that the configuration of HR systems had larger effects on productivity than the sum of effects of individual HR practices. They compared the relative effects of the four HR systems on productivity and quality at the level of the production line. The innovative system had higher productivity than the two mixed systems that, in turn, had higher productivity than the traditional system. In terms of quality, the innovative system was better than the two mixed systems but the traditional system and one mixed system was better than the traditional system and another mixed system. This shows support for the positive firm effects of the organization-focused employment relationship with employees. Finally, Wood and Menezes (1998) used government survey data and analyzed the performance impact of a high-commitment management (HCM) system in over 1600 UK establishments (about 20% public and 80% private employers). They found both high and low HCM groups to be superior on job creation and financial performance, relative to the medium HCM group. However, the medium HCM group did better on absenteeism and labor productivity. There is no difference among the groups on productivity change, labor turnover, and employee relation climate. These results suggest the possibility of contingent factors that might account for the superior performance of the medium HCM group on some performance measures. Table 3.4 summarizes the studies that have investigated the consequences of HR systems (reflecting different employment relationships) on firm


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performance. It shows the sample, the method and the results on the effect of HR systems as well as results on the contingency hypothesis investigating the effect of fit between business strategy and HR systems on firm outcomes. In general, these studies provide evidence to suggest that the organizationfocused employment relationship approach tends to fare better in terms of firm-level performance, over the job-focused or other mixed systems. However, the exceptions (e.g., Ichniowski, Shaw and Prennushi, 1997; Wood & Menezes; 1998) as well as the results of the contingency hypotheses (using business strategy as the contingent factor) suggest that other approaches might be better under some conditions. Much less research has been conducted on the nature of employment relationship as defined from the employer’s perspective on individual level outcomes. In filling this gap, Tsui et al. (1997) explicitly investigated the effect of both balanced and unbalanced approaches on employees. In their study of ten large US companies involving 85 jobs and 972 employees, they found the mutual investment approach to be better than the other approaches in terms of both employees’ attitudes (commitment, perceived fairness and trust in coworkers) and behaviors (attendance, performance and extra-role behaviors). The overinvestment approach also demonstrated positive effects on the employees. This study confirmed that the organization-focused approach in which firms invest in the employees (extensive training and employment security), along with a strong expectation of employee investment in the firm (open-ended jobs and focus on group-level performance), could lead to favorable outcomes for employees in terms of both performance and attitudes. In summary, all of the studies reviewed collected data by interviewing or surveying HR managers and other executives in the companies. This is an appropriate method since the focus is on the employer perspective of the employment relationship. However, all data were cross-sectional, limiting our confidence on the causality between HR systems and firm outcomes. It could be that financially successful firms could afford to share more profit with employees and provide employment security. In addition, it is difficult to accurately compare and contrast findings from these studies because they differed in their theoretical perspectives, samples, and measurement. Huselid (1995) and Kalleberg et al. (1996) used a national sample of US firms. Other researchers used samples from one particular industry such as steel (Arthur, 1994; Ichniowski, Shaw & Prennoshi, 1997), metal-working (Youndt et al., 1996), auto assembly (MacDuffie, 1995), or banking (Delery & Doty, 1996). Most samples involved US firms except for MacDuffie (1995) who used a sample of worldwide auto assembly plants and Wood and Menezes (1998) who used UK establishments. In addition, different measures of firm performance were used in these studies. Youndt et al. (1996) and Kalleberg et al. (1996) used perceptual measures of firm performance. Others used objective measures of productivity, quality (Arthur, 1994; Ichniowski, Shaw & Prennushi, et. al., 1997; MacDuffie, 1995) and/or firm’s financial performance



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such as Tobin’s Q, ROA and ROE (Delery & Doty, 1996; Huselid, 1995; Wood & Menezes, 1998). Kling (1995), on the basis of his review of the literature, was sceptical of the relationship between high-performance work systems and firm performance. Research on alternative HR systems since his review, however, offers more convincing evidence on the positive relationship between the organization-focused employment relationship and firm performance even though other employment relationship approaches also may be related to firm performance, depending on the business strategy or other unmeasured contextual factors. This leads us to consider the next important question. Why and when do firms use different approaches, including the jobfocused spot contracts as well as an underinvestment strategy? Why do some firms even use the overinvestment approach where expected contributions are less than offered inducements? Are firm decisions always governed by economic rationality or are there other factors that may influence the choice of employment relationships by their executives? The literature offers some, but quite limited, answers to these questions. Research is sorely needed to understand the determinants of employment relationship approach choices.

THE DETERMINANTS OF EMPLOYMENT RELATIONSHIPS Many researchers have discussed, but seldom tested, the factors that may influence the choice of employment relationship approaches. For example, Osterman (1987) suggested that the industrial model is appropriate for bluecollar work while the salaried model is usually applied to white-collar work. Ouchi (1980) considered the market to be efficient when individual performance can be measured unambiguously. When individual performance is highly ambiguous, the clan would be more appropriate to control values and beliefs due to low observability of behaviors and outcomes. Similarly, Tsui et al. (1995) identified, conceptually, a large number of determinants of the choice between job-focused and organization-focused employment relationship approaches. These include both factors in the external environment (e.g., economy, government regulations, industry, labor market condition) and factors inside the firm (e.g., business strategy, technology, structure, culture). They hypothesized on the factors that would lead to adoption of a main employment relationship approach (either job- or organization-focused) or a mixture of both approaches. They called for empirical studies on these propositions. In a recent conceptual paper on human resource architecture, Lepak and Snell (1999) argued for the importance of the uniqueness and value of employee knowledge and skills in influencing choice of employment modes such as internal development versus external acquisition. A similar logic applies to the choice of employment relationship. For example, overinvestment might be used with employees who have skills that are both valuable to the firm and quite rare in the labor market. On the contrary, underinvestment


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might be a logical approach when the human capital is plentiful and not valuable. Thus, technology and job characteristics are potentially important antecedents. Most empirical studies have analyzed the factors leading to the use of a specific human resource policy or practice rather than the configuration of HR practices. For example, several studies have examined the determinants of internal labor markets (ILMs), a typical feature of an organization-focused employment relationship. Using a sample of 309 large US establishments, Pfeffer and Cohen (1984) found that internal labor market arrangements (e.g., internal hiring and promotions) depended on firm-specific skill requirements, technological change, the industrial sector, the presence of a personnel department, unionization, the labor market, organizational size, firm growth, and branch status. Baron, Davis-Blake and Bielby (1986) examined the determinants of ILMs at both the firm level and the job level. They argued that organizational characteristics influenced the use of ILMs at the firm level and job characteristics influenced the use of ILMs at the job level. Although they found weak influence of organizational characteristics on the use of ILMs, data from 1883 jobs in these establishments showed that the use of ILMs was influenced by job-level factors such as firm-specific training, occupation, the size of the job, the composition of incumbents’ gender, complex information skills, and unionization. These findings support the job-level analyses by Tsui et al. (1997). Drawing on case studies of three organizations in different industries, Bills (1987) developed a model of the determinants of ILMs. On the basis of this model, he identified many determinants of ILMs such as economic environment, the nature of labor supply, the relative power between labor and management, workforce skills, and the need to secure commitment of employees. Davis-Blake and Uzzi (1993) examined the factors influencing the use of temporary workers and independent contractors. In a large sample of organizations surveyed by the US Department of Labor, they found the use of temporary workers (who tend to be under a job-focused employment relationship) to be negatively related to firm-specific training, government oversight, bureaucratized employment practices, establishment size, and requirements for high levels of informational or technical skill. However, the use of independent contractors was positively related to bureaucratized employment practices, establishment size, and being part of a multiple-site firm. In addition, variation in employment needs was positively related to the use of temporary workers and the use of independent contractors. Peck (1994), in a sample of 45 firms, examined the relationship between business strategy and the choice between transactional contracts and relational contracts. He found that firms pursuing prospector strategy were more likely to use relational contracts while firms pursuing defender strategy were more likely to use transactional contracts. A few studies have investigated the determinants of HR systems, or bundle of human resource practices, especially the adoption of ‘high-performance



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work systems’. For example, Arthur (1992) examined the impact of business strategy on the choice of HR system. He found that minimills pursuing a differentiation strategy were more likely to use the commitment HR system while minimills pursuing a cost leadership strategy were more likely to use the cost HR system. In addition, he suggested that firm size, firm age, tightness of the local labor market, location, and unionization might influence the choice of HR system. However, the results failed to find the impact of these factors on the choice of HR systems. Osterman (1994) focused on the determinants of adoption of four ‘innovative work practices’: self-directed work teams, job rotation, quality circles, and Total Quality Management. In a study of 694 US manufacturing establishments, he found factors related to the adoption of these systems included being in an internationally competitive product market, having a technology that requires a high level of skills, and a strategy that emphasizes variety, service and quality. The use of innovative work practices also was related to extensive training and innovative pay systems (i.e., profitsharing, bonus, and pay for skill). Ichniowski and Shaw (1995) modelled the adoption of innovative HR systems as an investment decision. They argued that the costs and revenues of adoption determined the adoption of innovative HR systems. In a sample of 35 production lines in 21 steel companies, they found several organizational characteristics to influence the adoption of innovative HR systems. For instance, the average production worker age and manager tenure were negatively related to the adoption of innovative HR systems. This suggested that there were ‘birth effects’ in that new plants were more likely to adopt innovative HR practices. In addition, there were ‘threat effects’ in that firms were more likely to adopt innovative HR practices when they had the threat of plant shutdown and/or laid-off workers. Pil and MacDuffie (1996), drawing on evolutionary economics and innovation literature, hypothesized that ‘highinvolvement work practices’ were more likely to be adopted in firms with poor performance relative to competitors, longer employee tenures, no recent layoffs or downsizing, as well as in firms that were undergoing significant environmental ‘disruptions’ (e.g., deregulation). Using two-period (1989 and 1993–1994) data in matched samples of 43 worldwide auto assembly plants, they found plants that underwent a major disruption in their operations were indeed more likely to adopt ‘high-involvement work practices’. Finally, Huselid and Rau (1997) developed a model of ‘high-performance work systems’ as a function of industry and organizational characteristics. Industry characteristics included industry complexity, munificence, and dynamism while organizational characteristics included firm size, composition of workforce, union coverage, capital intensity, R&D intensity, firm systematic risk, competitive strategy, intrafirm variability of HR strategy, managerial values, and provision of employment security. In a longitudinal study, they found that both organizational characteristics and external environment contingencies were associated with the adoption of ‘high-performance work systems’. Specifically,


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firms emphasizing cost leadership were less likely to adopt the ‘employee skills and organizational structure’ bundle. In summary, researchers have examined various external environmental factors and organizational characteristics as the determinants of HR systems and employment relationship approaches. In general, competitive strategy, technology, organizational size, organizational age, industry, unionization, branch status, and organizational culture were viewed as important factors that could influence employer choice of HR practices and systems. However, the empirical findings failed to offer consistent support on these antecedents. The main consistent finding is that competitive strategy generally influences the choice of HR systems and employment relationship (Arthur, 1992; Huselid & Rau, 1997; Osterman, 1994; Peck, 1994). Clearly, more theoretical development and empirical work are desirable. The review has revealed many conceptual and empirical gaps in the literature on employment relationship as defined from the employer’s perspective. Further, this literature is silent on the conceptual relationship between employment relationships and psychological contracts. This is a glaring conceptual omission since the two concepts are intricately related. In the final section below, we discuss a number of these conceptual gaps, ending with a proposed preliminary model that attempts to integrate employment relationship (as defined by the employer) with psychological contracts (as perceived by the employees).

CONCEPTUAL GAPS AND A PRELIMINARY INTEGRATIVE MODEL We have focused in this chapter on the employment relationship from the employer’s perspective. The literature review on this perspective provided us with some answers to the questions we raised at the beginning of the chapter. However, it also left many unanswered questions and revealed many unresolved issues. Research through the 1990s seems to support the dominance of two balanced approaches, and though some mixed approaches were also mentioned, none received any significant attention. Tsui et al. (1997) were the first to call attention to the nature and implications of two unbalanced approaches. As the environmental context increases in complexity and globalization intensifies competition, would more firms move toward the use of unbalanced relationships, especially the underinvestment approach? Based on the norm of reciprocity and exchange theory, can firms sustain the unbalanced approaches in the long term, and if so, for how long? Interestingly, the typology of these four approaches (two balanced and two unbalanced) has its conceptual parallel in the four types of psychological contracts described by Rousseau (1995). The transactional contract in her typology has its counterpart in the job-focused approach while the relational



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contract is directly comparable to the organization-focused approach. Based on the two dimensions that define the four approaches, the balanced contract in Rousseau’s typology should be parallel to the overinvestment approach from the employer’s perspective (specified performance terms and long-term duration). However, the description of the relationship (such as mutual support and ongoing development) suggests that it is more similar to the mutual investment approach. The transitional approach has a striking resemblance to the underinvestment approach. This implies a high degree of congruence when the organization uses the job-focused approach and when the employees perceive, and ideally also prefer, a transactional contract. Congruence also exists when the organization wants an organization-focused approach and employees perceive as well as prefer a relational contract or a balanced contract. Shore and Barksdale (1998) offer a typology of psychological contracts that is even more similar to the typology of employment relationships in Tsui et al. (1997). Using perceived obligations by the employer and by the employee (as perceived by the employee), these authors define a mutual lowobligation contract (similar to the quasi spot contract) and a mutual highobligation contract (similar to mutual investment). The two unbalanced contracts are overobligation (similar to overinvestment) and underobligation (similar to underinvestment). The important question to consider is when congruence or incongruence between the employment relationship defined by the employer and the psychological contract perceived by the employee would occur and what the consequences would be of the congruence or incongruence? It seems that clarity in communicating the employer’s intended employment relationship to the employee is the first important step to avoiding mismatch in perceptions in the contract formation stage, and perceived contract violation subsequently. What is the best method to communicate expected contributions (such as concern for the entire organization) or the intent underlying inducements (such as concern for the employee career)? Researchers have considered human resource practices as the primary instruments for this communication. For example, expectations for an organizational-level contribution would be implied in the use of organization-based profit-sharing schemes or the use of individual performance goals and evaluation standards tied directly to organizational-level objectives and their achievement. Clarity in expectation is also achieved when there is consistency in the message implied by the various human resource practices. This accounts for why researchers emphasize the importance of internal coherence in the bundle of HR practices (e.g., Arthur, 1994; Delery & Doty, 1996). However, misalignment is not only possible, but perhaps frequently occurs, resulting in mixed messages and misperception of the contract. Further, Rousseau (1995) argued that there are many agents that might influence the perceived contract. Supervisors, mentors, co-workers and top managers may send messages or make decisions that are incongruent with formal policies. Research should examine


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when a particular agent would be the most important for a particular employee in a particular context in influencing perceptions of the psychological contract. This research might uncover how HR systems influence firm-level effects, through psychological contracts. These processes could include factors that might moderate employee perceptions of the psychological contract, their behavioral responses, and the relationship between employee responses and firm outcomes. To examine these linkages would require cross-level conceptualization, cross-level analyses as well as inclusion of both psychological and structural variables. The conceptual and methodological challenges will be large but essential for unpacking the complex processes. The consequences of mismatch in perceptions of inducements are obvious and many. Most research on violation of psychological contracts is about the employer not delivering promised inducements (a promise as perceived by employees though it may not be intended by the employer). These studies consistently find contract violation to be associated with higher turnover (Guzzo, Noonan & Elron, 1994), lower trust and job satisfaction (Robinson & Rousseau, 1994), lower commitment and less organizational citizenship behavior (Robinson & Morrison, 1995). Recently, Porter, Pearce, Tripoli and Lewis (1998) explicitly examined the discrepancy in perceptions of inducements. Executives were asked about the actual level of offered inducement and employees reported the actual inducements received. They found most executives reporting a higher level than that perceived by employees. This discrepancy, not surprisingly, resulted in lower organizational satisfaction. Should employees be involved in defining inducements? Would employee involvement necessarily lead to a higher level of inducements than without employee involvement? What lessons can we learn from the participation literature (Cotton, Vollrath, Froggatt, Lengnick-Hall & Jennings,1988; Heller, Pusic, Strauss & Wilpert, 1998) about the advantages or disadvantages of involving employees in defining inducements? Millward and Brewerton (2000) offered an informative and comprehensive discussion on the contracting process that may be relevant in considering issues related to the development of inducements. Should employees be involved in defining contributions? How much influence or say should employees have? Rousseau and Greller (1994) maintained that ‘the ideal contract in employment would detail expectations of both employee and employer’ (p. 386). What lessons can we learn from goal theory (Locke & Latham, 1990) in terms of employee involvement in specifying contributions and resulting performance? Negotiation literature suggests that joint problem-solving leads to integrative solutions (Thompson, 1990; Lewicki, Saunders & Minton, 1999). However, bargaining tends to be based on a competitive assumption and a narrow, short-term view of what an employee and an employer can offer (Rousseau & Greller, 1994). Negotiation theories might be complemented by exchange theory to provide insight into the conditions when parties are willing to take a broad long-term view and



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when joint specification of contributions might be optimal. A critical question that must be resolved is whether high expectation and high investment is always the optimal employment relationship, a possible conclusion based on available evidence. A number of studies have found that the organizationfocused approach is superior to other approaches in terms of both employee responses (Tsui et al., 1997) and some measures of organizational performance (Arthur, 1994; Delery & Doty, 1996; MacDuffie, 1996; Wood & Menezes, 1998; Youndt et al., 1996). Similar findings exist in the psychological contract research. For example, Shore and Barksdale (1998) found the employees holding mutual high-obligation contracts reported higher affective commitment, perceived organizational support, a positive career future, and a lower level of turnover intentions than employees holding other types of psychological contracts. However, it could be possible that research has not adequately captured the conditions when low expectations and low investment or the transactional contract might provide flexibility to the employer and a possible lifestyle option to the employee (Rousseau, 1995). Lastly, researchers have approached the employment relationship from either the employee’s or the employer’s perspectives but not from both. The value of an integrative conceptualization is obvious. It might uncover the process or mechanisms by which employment relationships through HR systems relate to firm performance (Becker & Gerhart, 1996). Millward and Brewerton (2000) concluded that further conceptualization of psychological contracts or employment relationships should take ‘into consideration the wants and offers of both individual and organization (Herriot, Hirsch & Reilly, 1998) in the way originally envisaged by Barnard in 1938’ (p. 51). Rousseau and Greller (1994) offered some excellent discussions on how human resource practices may influence the psychological contract construction process by employees, including creation, maintenance, and change. However, they did not explicitly consider the employer’s perspective of the relationship. We propose below a preliminary framework that attempts to integrate psychological contracts (from the employee perspective) and employment relationships (from the employer perspective) in the aim of achieving a more comprehensive understanding of employee motivation and behavior and the relationship between these individual-level reactions to firm-level outcomes. A Preliminary Integrative Framework of Employment Relationships and Psychological Contracts First, we offer definitions of the key constructs to avoid the conceptual muddle that Guest (1998) articulated so eloquently. Following the Barnard and Simon and March tradition, we define employment relationship as the employer’s expectation of contributions desired from the employees and inducements the employer actually offers. The relationship focuses on the actual expectations communicated to employees and the actual inducements being


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offered. The relationship is usually defined at the job level and similar jobs might be under a similar approach. It is possible that some firms may adopt one approach for all employees in all jobs in the organization. Following Rousseau, we define psychological contracts as an employee’s perception or belief about the exchange agreement between him or herself and the employer, the agreement regarding contributions he or she is willing to give and returns he or she can expect to receive, that is, his or her perception of returns promised by the employer. This definition does not include expectations (i.e., what the employee would like to receive his or her preferences) that the employee may have of the employer. We agree with Guest (1998) that expectations or preferences should be considered as inputs to the construct rather than the content of the psychological contract. By these definitions, we can evaluate congruence between the employer and the employee’s understanding of the employment relationship. Congruence on expected contributions (by the employer) and provided contributions (by the employee) results in satisfaction with the relationship by the employer. Congruence in expected (i.e., promised) inducements (by the employee) and provided inducements (by the employer) results in satisfaction with the relationship by the employee. Employee responses (commitment, trust, performance) and employer outcomes (performance, innovation, cohesion) are manifestations of the satisfaction by either party or both parties. On the basis of these definitions, we propose a framework in which employment relationships defined by the employer are the primary agent influencing the psychological contract of the employee. The framework also specifies a set of antecedents of employment relationship approaches and other agents influencing psychological contracts, as well outcomes of the employment relationship at both the individual and the firm levels. Figure 3.1 is a graphic representation of this preliminary integrative framework. Antecedents are those factors that may influence the firm’s choice of employment relationship approach. These antecedents are based on prior research as well as ideas in Tsui et al. (1995). These include external factors such as the macroeconomic environment, government regulations regarding employment, industry norms and practices, and the specific labor market conditions. Internal factors include the business strategy of the firm, organizational culture, the technology and skills requirements, the structure of the firm such as decentralization and divisionalization, the characteristics of the jobs in terms of measurability and observability of performance, and the relationship with the labor union. Each of these factors would suggest whether the jobfocused, the organization-focused, or one or more of the unbalanced approaches might be adopted for the employees concerned. For example, a strong union would likely drive the company to adopt an overinvestment employment relationship with employees in the bargaining unit. The strike by United Airlines in most of year 2000 was a push toward a more favorable set of inducements without a corresponding increase in contributions. Consider the



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role of culture, which we define as the core beliefs and values espoused by an organization’s executive leadership. Leadership beliefs of the role of the employee in relation to that of the firm and its customers or products may differentiate firms that are quick to adopt an underinvestment approach under economic stress from firms that commit to a mutual investment approach even in times of extreme performance pressure. An example is Hewlett Packard, which is known for its organization-focused employment relationship with all of its employees, regardless of level or rank, which transcends good times and bad. Such corporate culture places value on the dignity of the human and would not compromise valuing employee contributions under any circumstance. This kind of culture may be more an exception than the norm but it highlights the importance of culture and leadership values in the employment relationship approach adopted by the firm. The employment relationship approaches include two balanced and one or more mixed approaches, consistent with the typology offered by Tsui et al. (1997). Each specifies the employer’s expectations regarding employees’ contribution, and the inducement that the employer is willing and able to offer. The intended employment relationships are implemented through a set of human resource practices such as recruiting, performance appraisal, training, and compensation. These HR practices represent what organizations expect from employees in terms of contributions and what organizations provide to them in terms of inducements. They shape employees’ psychological contracts. Other agents that might influence the psychological contract are supervisors and co-workers. The interpersonal relationship with these two groups may modify interpretation of the employer’s intended employment relationship. Leader–member exchange captures the quality of relationship between the employee and the immediate supervisor. It can both shape the psychological contract and modify the influence of the contract on attitudes and behavior (Rousseau, 1995). For example, the employee may engage in extra-role behavior under an extremely supportive and stimulating supervisor regardless of the nature of the employment relationship specified by the employer. A similar process occurs with relationship with co-workers. The co-workers may both influence the formation of the psychological contract (such as through the normative contract) or moderate the effect of the psychological contract on attitudes and behavior. The employee him or herself is another potential agent. The individual’s past experiences (with different employment relationships or having experienced repeated violations of contracts) and expectations or preferences (e.g., lifestyle) may further modify his or her perceptions and beliefs about the employer’s expected contributions and offered inducements. We adopt Rousseau’s (1995) typology of four psychological contracts: contractual, relational, balanced or transitional. These are cognitive schemas that represent individuals’ belief structure of what is expected to occur in the organization (inducements) and what is expected of them (contributions). Congruence between employment relationship and psychological contract will



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lead to favorable outcomes while incongruence will influence negatively on employee attitudes and behavior, which in turn will depress organizational performance, innovation, and cohesion, among other outcomes. We cannot end our discussion of this topic without considering the nagging question of ‘who is the employer?’, a nebulous idea without a consensus in the field. The question of who defines the employment relationship must be resolved before we can have any serious progress in further theory development and empirical research. We propose that the organization’s perspective of the relationship is an outcome of decisions made by a group of managers regarding policies and practices that cover the basic conditions of employment and the total set of performance expectations from employees. These are human resource systems (which include formal practices and articulation of core values embedded in the company’s culture) first, then other agents such as supervisors, co-workers, mentors, or perhaps even professional colleagues outside the firm. This approach allows some freedom to the researcher to define the organization either narrowly as the set of human resource policies or broadly to include all the potential influences on employee perceptions of the contract. The proposed framework is more heuristic than a theory because (1) it lacks parsimony and (2) it has not specified the theoretical logic that underlies each of the linkages. We suggest taking parts of the framework and conducting theoretical and empirical analyses on each part systematically. For example, contingency theory (Govindarajan, 1988; Miles & Snow, 1984), agency theory (Eisenhdart, 1989; Fama & Jensen, 1983), configuration theory (Doty & Glick, 1994; Meyer, Tsui & Hinings, 1993) and institutional theory (Meyer and Rowen, 1977; Scott, 1995) might provide guidance on the relationship between the antecedents and employment approaches. Ideas from socialization (Bauer, Morrison & Callister, 1998), goal-setting (Locke &Latham, 1990), and participation (Cotton et al., 1988) may offer insight on how to achieve congruence between the employment relationship intended by the employer and the psychological contracts perceived by the employee. Equity theory (Cropanzano & Folger, 1996; Mowday, 1996) and a social comparison process provide relevant concepts for understanding employee responses to congruence or lack of congruence, which can be in the direction of either overreward (as in the overinvestment condition) or underreward (as in the underinvestment condition). Psychological contract authors (e.g., Millward & Brewerton, 2000; Guest, 1998; Rousseau & Greller, 1994) have raised many other potentially interesting questions on the contracting process (the link between agents and psychological contracts), contract violation (the link between employment relationships and psychological contracts) and outcomes (the link between psychological contracts to employee and organizational outcomes). The framework also shows that employee responses and firm performance may also influence the choice of employment relationship approaches by the


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firm. In addition to responding to internal and external factors that are exogenous to the employment systems, employers may also adjust their approaches over time as a result of observing employee reactions and adjusting to firm-performance issues (e.g., Pil & MacDuffie,1996). In this way, employment relationships (or HR systems) are both emergent as well as planned strategies. In conclusion, what we have offered is one more step toward the ‘general theory’ that Guest called for in his 1998 treatise. He proposed a model that focuses only on the employee’s perspective. Our framework incorporates the employer’s perspective as well by including the types of employment relationship, influences on them, how they influence employees’ psychological contracts and the outcomes of these process and realities on employees and the organization.

ACKNOWLEDGEMENTS We wish to thank the helpful suggestions made by Jeffrey Arthur, John Delery, Mark Huselid and Sjoerd Romme. We also acknowledge the financial support of the Wei Lun Fellowship and an Area of Excellence Grant on China Business and Management from the Hong Kong University of Science and Technology. This chapter was written when Anne S. Tsui was Distinguished Visiting Professor at Peking University.

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Chapter 4 GREAT MINDS DON’T THINK ALIKE? PERSON-LEVEL PREDICTORS OF INNOVATION AT WORK Fiona Patterson University of Sheffield, UK INTRODUCTION Over the past two decades there has been an explosion of interest in innovation. Organizations have become increasingly aware that it is vital for productivity and growth in all sectors. Management scientists have noted that the downsizing and process re-engineering in the 1990s has had limited success on organizational prosperity, such that business strategy for the millennium must reflect an intense desire to create new markets through innovation (Hamel & Prahalad, 1994). With more dispersed and virtual working, role innovation is essential (Herriot & Anderson, 1997; King & Anderson, 1995), since clearly defined job descriptions are a thing of the past. The topic of innovation has generated a great deal of theoretical debate (Delbecq & Mills, 1985; Glynn, 1996; Kanter, 1983; Quinn, 1992; Senge, 1990; Van de Ven, 1986). This review is intended to investigate the recent literature examining innovation at the individual level. Despite the colossal literature base straddling many academic disciplines, there has been a distinct lack of clarity regarding individual differences in the propensity to innovate. Although there is a fervent practical need to understand innovation in organizations, this area of research has generally been under-represented in the occupational psychology literature. Sternberg (1999) suggests at least six roadblocks to the psychological study of creativity and innovation, including a pervasive confusion of terminology (both in terms of definitions and criteria for assessment), a lack of theoretical development on origins, and a focus on innovation as a unidimensional concept. There is no taxonomy or organizing framework at the individual level to aid the researcher in tracing the literature over many decades. International Review of Industrial and Organizational Psychology, 2002 Volume 17 Edited by C. L. Cooper and I. T. Robertson.  2002 John Wiley & Sons, Ltd.


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Since the purpose here is to focus on the person-level antecedents of innovation, we necessarily draw upon contemporary developments in individual differences research. Our aim is to chart the recent literature by adopting a confluence approach to the study of individual-level innovation. First, an overview of the issues concerning definitions and theoretical development is presented, an area that has been particularly troublesome. Second, since there has been increasing recognition that innovation involves multiple components at the individual level, the literature can be classified into that concerning associations between innovation and, (1) intelligence, (2) knowledge, (3) personality and (4) motivation. Each of these research territories will be reviewed in turn. Finally, a summary of research findings is presented and some implications for future research and practice are suggested.

DEFINING INNOVATION Ironically, one of the few aspects of the literature consistently agreed upon is that there is confusion over definitions. An array of terminology can be traced throughout the literature where creativity and innovation are often used interchangeably (King, 1990). Mumford and Gustafson (1988) entitled their review the ‘Creativity Syndrome’, reflecting the lack of integrative theory. Sternberg (1999) noted that research in this area has been clouded by a tradition of mysticism and spirituality, making it harder for scientific psychologists to be heard. Over the years, the concepts of creativity and innovation have acquired a variety of definitions, which are generally dependent on the level of analysis being employed. Although some clarity has been achieved over the past decade, confusion of terminology has pervaded the literature. Early literature tended to focus on creative thinking, where it was assumed to be an aspect of general intelligence (Cattell, 1971; Spearman, 1931; Westcott & Ranzoni, 1963). Later research focused more on creative achievement, and moved to recognizing that other variables should be examined, such as personality and motivation. In organizational contexts, the term innovation is used more often (see Sternberg, 1999; Williams & Yang, 1999), and emphasizes the invention of new products, processes and procedures to benefit the organization (West & Farr, 1990). Essentially, creativity and innovation are viewed as overlapping constructs. The central distinction between creativity and innovation has been with regard to novelty. Creativity is solely concerned with the generation of new and completely original ideas, whereas innovation also encompasses the application of novelty to produce something new and useful (King, 1990; Lumsden, 1999; West & Farr, 1990). Axtell, Holman, Unsworth, Wall, Waterson and Harrington (2000) suggest that innovation is a complex, iterative process, and that although numerous approaches exist, there are two main stages. First, an ‘awareness’ or suggestion phase and second, an implementation phase. There is good evidence to suggest that different person-level variables play a part in


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each of these two aspects. For example, idea generation is likely to involve aspects of creative thinking, and is largely dependent on individual-level variables. Idea implementation will involve social processes, where introducing new ideas necessarily involves the support and approval of others. Therefore, at an individual level of analysis, aspects of personality, motivation and knowledge are likely to be involved. This does not, however, preclude the role of environmental factors in shaping this iterative process, such as feedback, leadership, resource availability, organizational climate and so on, which indubitably play a significant part in shaping the innovation process (see Scott & Bruce, 1994). Our purpose here however, is to focus on clarifying the individual difference variables that are key resources in this process. In reviewing the literature specifically at the individual level, three main components are evident in innovation process. These include (1) creative and original thinking (idea generation), (2) a contextual application and assessment of those ideas (to assess domain relevance) and (3) implementation. It is likely that different individual variables play a part in each of these components and this can be used as an initial framework to explore the literature. For example, creative thinking and contextual application are likely to be influenced by aspects of cognition and knowledge, and implementation may be more heavily influenced by social factors and involve aspects of personality. Our aim is to explore the individual antecedents for each of the three components in the innovation process, which is illustrated in Figure 4.1. At this stage it is emphasized that since the terms creativity and innovation have been used interchangeably, any review will inevitably highlight this situation. Throughout we will generally refer to the propensity to innovate although the author acknowledges that the literature uses terms such as creative thinking, creative problem-solving, creative achievement and so on. Before exploring the evidence in more detail, the theoretical developments in innovation research are reported.

THEORETICAL DEVELOPMENTS IN INNOVATION RESEARCH Many have lamented the lack of theoretical understanding of how innovation operates as a psychological construct (e.g. Glover, Ronning & Reynolds, 1989; King, 1990; King & Anderson, 1995; King, Walker & Broyles, 1996; Martindale, Anderson, Moore & West, 1996; Zhou, 1998). For assessment purposes, the literature is rife with isolated measures of varying levels of breadth, often with no substantial link with theory, resulting in an inherent ambiguity of explanations. Without reference to theoretical developments, we are simply adding further complexity to an already troubled area, and exponentially increasing the number of unanswered research questions. Despite decades of research, there has been little synthesis of the literature to build a theoretical framework with which to explore the interrelations


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between the person-level constructs associated with innovation. The majority of previous literature has been aimed instead at adding to the list of correlates with indices of innovation or creativity. Further, it appears that research efforts have shifted the focus away from examining the individual antecedents to innovation and centred more on contextual variables to investigate predictors of innovation (Glynn, 1996; Zhou, 1998). Indeed, given the level of crisis over definition one might legitimately ask whether innovation is accessible for scientific theory and research? All is not bleak. More recently, researchers have recognized that an integrative theoretical approach is needed to explain individual differences in innovation (Collins & Amabile, 1999; Csikszentmihayli, 1996; Sternberg, 1999). Sternberg and Lubart (1991, 1996, 1999) offer a confluence approach to aid our understanding. They proposed an ‘investment theory’, suggesting that innovative individuals ‘buy low and sell high’ their ideas, using an econometric theoretical perspective. Essentially, the notion is that innovative individuals pursue ideas that are unknown or out of favour, but that have growth potential (buy low). The innovator then persists in the face of resistance and eventually the idea is implemented (sells high). According to this notion, Sternberg and Lubart (1999) suggest that the propensity to innovate requires six distinct resources including intellectual abilities, knowledge, thinking styles, personality, motivation and environment. Further, this implies interactions between components such as intelligence and motivation, where high levels of both could multiplicatively enhance the propensity to innovate. Also there could be thresholds to certain resources (e.g. knowledge) below which innovation will not occur, regardless of the levels attained on other components. This represents one of the first attempts at providing an integrative approach since it allows us to account for the diversity of findings in different domains. So, for example, there may be domain-specific components (e.g. knowledge) and other components (such as intrinsic motivation), which are relevant across all domains. However, this model has still to be reviewed in relation to current models of personality, (e.g. the five-factor model, see Costa & McCrae, 1992; Digman, 1990; Goldberg, 1990) and intelligence (e.g. Ackerman, 2000). Further, the model needs further empirical assessment, particularly in an occupational domain. This said, Sternberg and Lubart’s model does provide us with a much needed taxonomy with which to consider the person-level antecedents to innovation. Innovation and Intelligence Whether the propensity to innovate is associated with intelligence has captured the intrigue of countless authors over several decades (Cattell & Butcher, 1968; Eysenck, 1995; Getzels & Jackson, 1962; Glynn, 1996; Gough, 1976; Guilford, 1959; Helson, 1976; Kibanoff & Rossiter, 1994; Gardner, 1988; MacKinnon, 1963; Mednick, 1962; Rossman & Horn, 1972;


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Sternberg & O’Hara, 1999; Taylor & Barron, 1963; Terman, 1947; Torrance, 1967; Welsh, 1975; Yamamoto, 1965). However, it is disappointing to observe a perpetual sense of ambiguity in this area, and the findings are generally inconclusive. In overview, Sternberg and O’Hara (1999) suggested that the convention is to view the propensity to innovate and intelligence as overlapping constructs, but the precise nature of the association is still unclear. Historically, the literature in this area can be classified into the propensity to innovate as (1) a subset of general intelligence, (2) an aspect of genius (3) a set of cognitive abilities and mental processes, (4) that which observers judge to be ‘intelligence’ (i.e. perceived intelligence) to explain the findings. A brief review of each of these is provided. Innovation as an aspect of general intelligence Early research claimed that creativity was equivalent to high intelligence (e.g. Spearman, 1927, 1931). Several authors have questioned this view over the past century (Barron & Harrington, 1981; Eysenck, 1995; Vernon, 1970), since high innovators may have high intelligence, but high intelligence does not guarantee innovation. The best known researcher in this field is Guilford (1950, 1959, 1988). In his theory of the Structure of Intellect (SI), he claimed that creative thinking was a mental ability, involving divergent production (the generation of information from given information, where the emphasis was on variety of output from the same source). For assessment purposes, the notion of ‘divergent thinking’ (DT) emerged, as contrasted with convergent type of tests familiar from traditional IQ testing. Guilford claimed ‘the greatest importance of divergent production abilities is in connection with creative thinking . . . an important part of problem-solving’ (Guilford, 1977, p.108). In this way, much of the literature in this area generally explores relations between creative thinking and intelligence. Many researchers followed Guilford’s work by producing evidence that ideational fluency, in terms of quantity of new ideas, underlies DT scores, and made attempts to investigate the nature of DT production and intelligence (see Hocevar, 1981; Campbell, 1960; Simonton, 1988). However, in their review of over 70 studies, Barron and Harrington (1981) noted that DT test scores often failed to correlate significantly with various indices of creativity. More importantly, numerous studies investigating the relationship between DT abilities and traditional measures of intelligence have yielded incongruous results (Cattell, 1971; Gough, 1976; Helson & Crutchfield, 1970; Rossman & Horn, 1972). In a much cited review, Torrance (1967) summarized 388 correlations involving intelligence measures and the Torrance Tests of Creativity (TTCT; a measure of DT) and reported a median correlation of 0.06 for his figural DT tests and 0.21 for his verbal DT tests. Other follow-up investigations have tested the possibility of a curvilinear or heteroscedastic relationship between intelligence and innovation in the hope of more accurate



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results (Simonton, 1984). Such a hypothesis would seem plausible in that levels of intelligence would potentially become less influential as the level of intelligence increases beyond certain levels (see Eysenck, 1995). However, tests of this hypothesis have proved inconclusive (Simonton, 1984; Barron & Harrington, 1981). Barron and Harrington (1981) doubted whether DT tests measured abilities actually involved in creative thinking and rejected the whole divergent-convergent dichotomy.1 A more detailed investigation of DT is beyond the scope of this review, and it is well documented in previous literature (e.g. Kibanoff & Rossiter, 1994). In summary, Guilford’s model has been persistently criticized on both technical and conceptual grounds (see Butcher, 1973; Brown, 1989; Horn, 1977; Vernon, 1979; Amabile, 1996; Sternberg & O’Hara, 1999) and the notion of DT has largely lost favour. Innovation and genius From the mid-1970s onwards, Eysenck (1979, 1995) suggested that genius, as the most obvious manifestation of high intelligence, was closely tied to the propensity for innovation (also see Lubinski, 2000, for a review). However, there has been a considerable lack of evidence to support this proposal. For example, Roe (1952, 1953) found a high degree of ability in the eminent scientists she studied but found great variation between the types of ability individuals demonstrated (i.e. verbal, numerical and abstract reasoning). In Terman’s (1925, 1947) studies of genius, he followed 1500 children with IQs of over 140, but found that intelligence was not a sufficient condition for innovation. Several decades on, Eysenck (1994) himself recognized that there was insufficient evidence of a direct relationship between innovation and intelligence and suggested that it is a necessary, but not a sufficient condition for innovation. Innovation and cognitive abilities Perhaps the most promising account of the role of cognitive abilities in the innovation process is that of Ward, Finke and Smith (1999; see also Finke, Ward & Smith, 1992; Smith, Ward & Finke, 1995; Policastro & Gardner, 1999). They claim that in order to understand the role of cognitive abilities in creative thinking, we must draw upon current models in cognitive psychology, and use experimentally based observations of the processes that underlie generative tasks. Their work follows an earlier framework based on a heuristic approach, called the Geneplore model (Finke, Ward & Smith, 1992). The model proposes that many creative activities can be described in terms of an initial generation of ideas or solutions followed by an extensive exploration of those ideas. Initial ideas are referred to as ‘preinventive’, in the sense that they are incomplete solutions, but offer promise in terms of originality


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and utility. The model assumes that one would alternate between generative and exploratory phases, refining the structures according to the demands or constraints of the particular task. Examples of generative processes include retrieval of existing structures from memory, forming associations between them, mental synthesis and transformation of new structures, analogous transfer of information from one domain to another and so on. Exploratory processes are defined by how these various processes are employed or combined. By considering these various generative and exploration processes and their interactions, the diverse aspects of creative thinking can be studied within a cognitive framework. In other words, the process involves both generative thinking and contextual application, which requires both cognitive abilities and aspects of knowledge (see Figure 4.1). The Geneplore model describes creative thinking as a continual iteration of generative and exploratory steps, and the cognitive processes that are common to both. This notion is consistent with modern paradigms of intelligence more generally, where for example Sternberg (1999) describes intelligence as involving synthetic, analytical and practical aspects of cognition. This ‘creative cognition’ approach emphasizes that generative capacity is a property of normative human cognition, and that there exist individual differences in the capacity for generative thinking. In other words, highly creative thinkers do not use different forms of generative thinking to those who are judged less creative. Individual differences occur due to variations in the use and application of these generative processes, coupled with the complexity of the knowledge-based cognitive structures of different individuals. This implies that assessment techniques could be devised to assess an individual’s capacity for generative thinking for use in occupational assessment. However, it is important to note that finely tuned generative thinking and contextual application is only a small part of the innovation process, and an array of other resources are important before new ideas come to fruition, such as motivation and personality. Innovation and perceived intelligence Much of the early literature converged on the notion that innovative individuals are often perceived and rated by others as more intelligent than less innovative individuals (Barron & Harrington, 1981). For example, in MacKinnon’s (1962) studies of architects, despite a correlation of –0.08 between scores on the Terman’s Concept Mastery Tests (TCMT; Terman, 1956) and professional rated innovation, staff ratings of the single adjective ‘intelligent’ correlated 0.39 with the innovation indices. This finding affords some insight into the relationship between innovation and intelligence in the natural language and emphasizes the role of intelligence as knowledge. MacKinnon (1962) concluded, ‘a distinction must be made between IQ intelligence and effective intelligence; and it is on the latter that creative



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architects excel’ (p. 23). Although MacKinnon did not provide a theoretical explanation for ‘effective intelligence’, this is perhaps is our first clue to understanding that traditional measures of intelligence (e.g. IQ) do not adequately account for this ‘real-world’ intelligence. Summary The literature on innovation and intelligence has lacked clarity. Historically, there have been links suggested between innovation and IQ, genius and various intellectual capacities. More recent literature suggests that cognitive abilities are required in both generative and exploratory thinking. Part of the problem has been that intelligence, similar to innovation, is often viewed as a unitary concept. Previous notions of intelligence have tended to overemphasize cognitive abilities and downplay the role of knowledge-based intelligence. By using modern paradigms of intelligence we may find greater clarity in the research findings, where cognitive abilities and knowledge-based intelligence are treated separately (see Ackerman, 1996, 2000). For example, Lubinski (2000) recommends that Ackerman’s model of adult intellectual development might be especially useful to research domains where knowledge is as important as intellectual processing abilities (Ackerman, 2000; see also Warr, 2001). Historically these two aspects have been confused and, in conclusion, intelligence comprising both cognitive abilities and knowledge is linked with the innovation process. Innovation and Knowledge Almost all researchers in the field, regardless of their theoretical approach, have assumed that knowledge is a key variable in both generative thinking and innovation. Essentially, knowledge is believed to be a basic requirement if one is to create something new within a particular domain. Yet the literature also highlights that if one has too much expertise in one area, then this can also be a block to creating something new and useful within that domain (Sternberg, 1999). In this way, it has been almost universally assumed that there is an inverted U relationship between knowledge and innovation. Too much or too little knowledge will not lead to new inventions. ‘Knowledge may provide the basic elements, the building blocks out of which are constructed new ideas, but in order for these blocks to be available, the mortar holding the old ideas together must not be too strong’ (Weisberg, 1999, p.226). Weisberg (1999) emphasizes that a great deal of time and effort needs to be expended in a discipline to achieve mastery (known as a ‘ten year rule’; see Hayes, 1989). In addition, the time to achieve mastery will differ according to the domain. Perhaps one of the most widely cited studies in this area is that of Simonton (1984), who studied the lives of over 300 eminent people. Although his primary focus was to examine lifespan development of innovation, his studies


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revealed a curvilinear relationship between eminence and level of education, thereby suggesting an inverted U relationship between knowledge and innovation. This view resonates with other studies, demonstrating that both lack of familiarity and excessive familiarity within a subject domain can be detrimental to innovation (Frensch & Sternberg, 1989; Williams & Yang, 1999). Sternberg (1997) argues that the cost of expertise can result in more rigid thinking and reduced flexibility in problem-solving brought about by overreliance on procedural knowledge. Sternberg (1999) claims, ‘One cannot move beyond where a field is if one doesn’t know where it is. On the other hand, knowledge about a field can result in closed and entrenched perspective, leading to a person’s not moving beyond the way in which he or she has seen problems in the past’ (p. 11). Frensch and Sternberg (1989) tested these assumptions and demonstrated that experts in bridge, the card game, were less able than novices in adjusting to changes in the game rules, particularly for significant conceptual changes rather than surface-level changes. The literature also highlights the importance of ‘immersion’ in domainspecific knowledge as an essential prerequisite for innovation (e.g. Cropley, 1992; Csikszentmihayli, 1996; Gardner, 1993; Hayes, 1989; Howe, 1999; Nickerson, 1999). Weisburg (1999) emphasizes the role of practice by studying the career path of the Beatles (who started with cover versions, then produced their own records within an existing style, then later, produced significant innovation). Csikszentmihayli (1996) concluded that a person who wants to make an innovative contribution must not only work within a system, but must also reproduce that system within his or her own mind. In other words, one must have personal mastery and an accurate sense of domain (contextual) relevance before one can hope to change it for the better (Policastro & Gardner, 1999; Boden, 1992; Senge, 1990). This said, we must also recognize that a deeply knowledgeable person may never produce a significant innovation. In this way, it is suggested that knowledge is necessary, but not sufficient for innovation to occur. Summary There is evidently an inverted U relationship between knowledge and innovation. Yet, we need to understand how knowledge is actually used in the innovation process. It may be that different forms of knowledge operate at different phases of the innovation process. For example, immersion in a given discipline may lead to automaticity and tacit knowledge, which is sure to play a part in generative thinking. Practical knowledge in a domain is perhaps more likely to influence the contextual application of these new ideas, which is likely to include knowledge of practical constraints, for example. Knowledge of practical limitations may lead to further generative thinking (see Figure 4.1). Further research is clearly warranted in this area, particularly in organizational settings.



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Innovation and Personality From several decades of empirical research on the association between innovation and personality, a fairly consistent set of core characteristics have emerged (Barron, 1968; Barron & Harrington, 1981; Brown, 1989; Cattell, 1971; Feist, 1999; McCrae, 1987; MacKinnon, 1965; Nicholls, 1972; Welsh, 1975). Some of these include imaginative, inquisitive, high energy, high desire for work role autonomy, social rule independent and high self-confidence. However, one of the inherent frustrations with the literature is that there has been limited assimilation of the commonality between these characteristics. Many have transpired from independent empirical studies, examining a small number of these characteristics separately. Although there is some consistency of findings, there still remain some persistent anomalies. For example, Sternberg (1988) observed a paradox between possible socially withdrawn behaviour and socially integrated tendencies to be associated with innovation. It has been suggested that innovative individuals have a drive for accomplishment, have a need to form alliances (Gardner, 1988; Hennessey & Amabile, 1988) and are charismatic (Torrance, 1967; Walberg, 1969). Conversely, Feldman (1988) and Gardner (1988) suggested that what distinguishes innovative individuals is their lack of fit to their environment. Others claim that introversion is associated with the propensity to innovate (Feist, 1999) and yet, some empirical studies have demonstrated that extraversion is associated with innovation (King, Walker & Broyles, 1996; Patterson, 2000). Similarly, Feist (1999) highlights a paradox where ‘creative people appear to be simultaneously very labile and unstable and yet can be rather controlled and stable’ (p. 288). In various studies of psychopathology and innovative individuals, some have found a positive association (Barron, 1968; Cattell, 1971; Gotz & Gotz, 1979; MacKinnon, 1978; Mohan & Tiwana, 1987; Roe, 1953; Eysenck, 1994) whereas others have found a negative relationship (Kessel, 1989; Maslow, 1976; Rogers, 1976). To add further complexity, and perhaps least frequently cited, Eysenck (1994) identified another set of characteristics that appeared to have no such obvious connection with innovation (and may be described by some as negative characteristics) such as disorderly, outspoken, uninhibited, quarrelsome, asocial and, in the extreme, psychopathic. This mismatch of findings was confirmed in Barron’s (1968) summary, suggesting that the creative person is both more primitive and more cultivated, more destructive, a lot madder and a lot saner, than the average person! An organizing framework is patently needed to identify some concomitancy in findings about the relations between innovation and personality. Typically, the Five Factor Model (FFM) of personality has now become almost a universal template with which to understand the structure of personality (see Costa, 1997; McCrae & Costa, 1997; Matthews & Deary, 1998; Digman, 1990; Goldberg, 1993; Saucier, Hampson & Goldberg, 2000). The FFM


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dimensions include Extraversion (warmth, gregarious, activity), Neuroticism (anxiety, depression), Openness To Experience (ideas, aesthetics), Agreeableness (compliance, straightforwardness), and Conscientiousness (order, dutifulness, competence). Given that there is a growing consensus that the FFM is an appropriate model for charting individual differences among adult populations,2 it provides a useful structure to review associations with innovation. In addition, since Eysenck has been one of the major authors in this field, his competing three-factor model of personality will be examined, comprising Extraversion, Neuroticism and Psychoticism. Innovation and the five-factor model of personality (FFM) Openness To Experience. The dimension consistently hypothesized to be most closely associated with innovation is Openness To Experience (McCrae, 1987; Martindale et al., 1996; King, Walker & Broyles, 1996; Feist, 1999). In occupationally based meta-analytic studies, openness is often shown be predictive of training criteria (Salgado, 1997; Barrick & Mount, 1991) and therefore tends to confirm that Openness is associated with new ways of thinking and embracing change. Costa and McCrae (1992) described open individuals as ‘willing to entertain novel ideas and unconventional values’ (p. 15) and ‘curious about both inner and outer worlds . . . their lives are experimentally richer’ (p. 15). In tracing the literature over several decades one can draw parallels with the various characteristics associated with innovation and those used to depict openness (e.g. imaginative, original, flexible, adventurous, unconventional). There is good empirical evidence to support this assertion. Martindale et al.’s (1996) experimental study showed that highly innovative individuals habituated more slowly to external stimuli than less innovative individuals. The results suggest that innovative individuals are more motivated to approach novel stimuli than avoid repetition. This concurs with other literature claiming that innovative people show greater fluctuations in level of arousal than do less innovative people (Eysenck, 1995; Martindale, 1989). McCrae (1987) claimed that openness is especially related to aspects of intelligence, which he believed contributed to innovation. Alternative formulations of the FFM label this factor Intellect (e.g. Goldberg, 1990), and openness scores are often modestly associated with both education and measured intelligence. As highlighted earlier, this claim is problematic since many have rejected the existence of DT (see Barron & Harrington, 1981), and so use of DT tests as a criterion for establishing validity of other measures is generally unwarranted (Wallach, 1971; Nicholls, 1972). In this way, there may be some continuing doubt over what precisely openness is measuring (see Ferguson & Patterson, 1998). However, McCrae (1987) claimed that aspects of intelligence could indicate aptitude for creative thinking, while openness is the catalyst that leads to creative expression and achievement. King, Walker



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and Broyles (1996) suggest that openness mediates the relationship between creative ability and creative accomplishments. Further, King, Walker and Broyler (1996) suggest that openness enhances the individual’s intrinsic motivation towards novelty and therefore works in a multiplicative way to produce innovation. In this way, we are beginning to draw links between other resources necessary for innovation to occur. In summary, although there are some inconsistencies in the findings, openness is perhaps the most important personality dimension to predict the propensity for innovation. Agreeableness. Innovative individuals are frequently described as arrogant, hostile, challenging, rebellious, non-conforming, and argumentative. Similarly, individuals low on agreeableness are described as ‘headstrong, outspoken and argumentative’ (Costa & McCrae, 1992). A host of empirical studies have demonstrated a negative association between agreeableness and innovation (Eysenck, 1995; Feist, 1993; 1999; Getzels & Csikszentmihayli, 1976; Helson & Crutchfield, 1970; King, Walker & Broyles, 1996; Patterson & Ferguson, in press). Similarly, empirical studies have shown innovators to have high social rule independence (Rossman & Horn, 1972) suggesting a negative association between innovation and agreeableness. This concurs with the evidence demonstrating that psychoticism is related to innovation and Eysenck’s (1995) proposition that high innovators are disorderly, outspoken, uninhibited, quarrelsome, and asocial. Individuals low on agreeableness are described as preferring to ‘compete rather than cooperate’ (Costa & McCrae, 1992, p.18), and are described as less compliant. Arguably, these are exactly the type of qualities important in achieving innovation in highly competitive organizational environments, and may be more influential in the implementation phase of the innovation process. King, Walker and Broyles (1996) suggest that agreeableness may lead to conformity, and since innovation requires independence of thought and action, this explains the negative association. In their (1996) study, participants were asked to complete a measure of the FFM, Torrance’s Test of Creative Thinking (TTCT; Torrance, 1974) and to list their creative accomplishments over the past 2 years. Accomplishments were then rated by an independent panel for level of achievement and originality. In this way, the researchers aimed to examine the relations between the FFM, creative thinking and creative achievement. The results showed that agreeableness was negatively associated with creative achievement but not with creative thinking. Therefore, similar to studies of openness we may conclude that agreeableness is important in the implementation of new ideas rather than in original thinking. This affords much intuitive sense in that the implementation of new ideas is likely to involve social processes. Conscientiousness. The vast majority of the literature in this area has demonstrated that lack of conscientiousness is associated with innovation (Walker, Koestner & Hum, 1995; Feist, 1999; Patterson, 2000; Robertson, Baron,


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Gibbons, MacIver & Nyfield, 2000; King, Walker & Broyles, 1996; Getzels & Csikszentmihayli, 1976). Descriptors of conscientiousness include fastidious, compulsive, neat, punctual, reliable and methodical (see Costa & McCrae, 1992, p.16). Hogan and Ones (1997) argue that conscientiousness is associated with an interpersonal strategy for dealing with others by being compliant and dependable where, ‘People who earn the reputation of being Conscientious do not make waves, do not challenge authority, like rules, and avoid arguments, ambiguities and altercations’ (p. 853). This array of descriptors is consonant with the various characteristics used to describe individuals who are not judged as innovative. The evidence suggests that individuals high on conscientiousness are more resistant to changes at work, and are more likely to comply with rules and organizational norms (see Hogan & Ones, 1997; Patterson & Ferguson, in press). Within the personality literature however, researchers have criticized the conceptualization of conscientiousness given its broad bandwidth (Barrick & Mount, 1991; Block, 1995; Hough, 1992; Robertson et al., 2000). In other words, conscientiousness comprises facets of order, dutifulness, selfdiscipline and deliberation, but also of competence and achievement striving. The dilemma is that innovation is usually positively associated with achievement motivation and persistence (e.g. Amabile, 1983; Costa & McCrae, 1992) but negatively associated with being methodical and dutiful. In an empirical study of the association between conscientiousness and managerial performance, Robertson et al. (2000) demonstrated differential results depending on whether the criterion was general performance or promotability. The results showed that conscientiousness was positively associated with work performance factors such as organized and quality focus. However, promotability comprised facets of articulate, innovative, motivated, and persuasive, and each of these was negatively associated with conscientiousness. Broadly, Robertson et al. (2000) caution against using broad-level dimensions of personality using the FFM and support a more multi-faceted view of both work performance and personality, particularly when considering conscientiousness. Extraversion. The association between extraversion and innovation is something of a conundrum. MacKinnon (1962) demonstrated that introverts performed better than extraverts on creative thinking tests. In contrast, AguilarAlonso (1996), Martindale and Dailey (1996), King, Walker and Broyles (1996), Tapasak, Roodin and Vaught (1978) and Richardson (1985) report positive associations between extraversion and innovation. A factor analytic study conducted by Mangan (1987) showed a positive association between extraversion and originality but not between extraversion and fluency. Martindale and Dailey’s (1996) study suggests that innovative individuals are more able to shift between primary process thinking (fantasy, reverie and dreaming) and secondary process thinking (reality-oriented thinking), and that this is



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linked with both extraversion and psychoticism. Leith (1972) and Rump (1982) however, found no association between extraversion and innovation. One of the few common features of these studies is that they were not conducted in organizational settings, most being student-based studies, so that we lack a clear picture of the association between extraversion and innovation in organizations. Feist (1999) suggests that on balance, introversion is positively associated with innovation. However, his review focused on a host of studies investigating personality characteristics associated with artists and scientists. He claims that asocial characteristics, namely introversion and independence, are generally common to both. Similarly, many have argued that isolation and withdrawal are necessary conditions for creativity (e.g. Barron, 1963; Csikszentmihayli & Getzels, 1973). One of the problems here is that there is little evidence from organizational contexts. However, in meta-analytic studies of occupational work performance more generally (e.g. Salgado, 1997), extraversion has been shown to be a valid predictor for occupations where interpersonal factors are likely to be important for effective job performance (e.g. sales, managers and other professional occupations). This suggests that extraversion is likely to be important in managerial and professional occupations where innovation is an important part of the job role, particularly in the implementation phase of the innovation process. This remains to be empirically tested. We may conclude that extraversion is perhaps a less important dimension of personality in predicting innovation. Further, the evidence suggests that hypotheses need to be generated separately, depending on the occupational domain being studied. Additional research is required, particularly in occupational contexts. Neuroticism. There is relatively little research directly examining an association between neuroticism and innovation. In what literature is available, there appear to be some inconsistencies. For example, in McCrae’s (1987) studies of the FFM, he found no association between neuroticism and DT. Neither did he find any association between self-report, peer and spouse appraisal of neuroticism, and performance on a variety of DT tests. Similarly, King, Walker and Broyles (1996) found no association between neuroticism and indices of either creative thinking or creative accomplishments. Conversely, other studies have suggested a positive association between neuroticism and innovation (e.g. Feist, 1993, 1994). However, these studies tend to have been with artists and scientists and therefore, the association between neuroticism and innovation could be differential depending on the domain of interest. For example, Feist (1999) observed that artists appear to be more anxious, emotionally labile and impulsive than the scientists he studied. Certainly, more thorough investigation in this area is necessary. For example, meta-analytic studies of personality and work performance more generally, suggest that there may be a curvilinear association between emotional stability and


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performance (Salgado, 1997; Barrick & Mount, 1991), and this could be tested in the innovation arena. Perhaps the first step is to examine possible links at a facet level of analysis. For example, Costa and McCrae’s (1992) conceptualization of neuroticism comprises six facets, including anxiety, hostility, depression, self-consciousness and impulsiveness. The innovation literature has previously suggested differential results for each of these facets. For example, innovation is associated with moderate levels of anxiety (Wallach & Kogan, 1965; Nicholson & West, 1988), low self-consciousness (Helson & Crutchfield, 1970), hostility towards others (Eysenck, 1995) and high emotionality (Feist, 1999). Further testing of these observations needs to be conducted in organizational settings before we can draw conclusions in this area. Eysenck’s three-factor model The main competing model of personality has been Eysenck’s three-factor model (1975, 1991) including Neuroticism, Extraversion and Psychoticism. Eysenck (1995) claimed that psychoticism is most closely associated with the propensity to innovate3 (with descriptors such as aggressive, antisocial, toughminded, unempathetic). Unlike many other authors in this field, Eysenck provided an inclusive and causal theory of the links between innovation and personality. He linked psychoticism to biological mechanisms and suggested a possible genetic basis for innovation. Eysenck (1995) claimed that the propensity to innovate is associated physiologically with the hippocampal formation, and with the level of activity of dopamine and serotonin, the former heightening, the latter lowering the propensity to innovate. He suggested that this influence is directly on cognitive inhibition. When lacking, in the extreme form, it results in functional psychosis (schizophrenia, manic-depressive illness), and in lesser extent, innovation. Therefore, the association between psychoticism and innovation is caused by a widening associative horizon linked with lack of latent inhibition and/or negative priming. Eysenck (1995) referred to a wealth of empirical support for his theory (Furnham & Yazdanpanaki, 1994; Routh, 1971; Miller & Chapman, 1983; Stavridou & Furnham, 1994; Woody & Claridge, 1977). However, the vast majority of studies have used DT tests in order to validate this claim, which we know is problematic. Further, studies examining the relationship between Eysenck’s three-factor model and innovation suggested that although psychoticism is most strongly associated with innovation, significant associations have also been found with extraversion and the Lie Scale (L) of the EPQ-R (a measure of Eysencks’s model, 1991; see Eysenck & Furnham, 1993). Further explanation of these findings is needed. However, in overview Eysenck (1995) presented some cogent and very compelling arguments for his theory. Eysenck also noted that psychoticism does not guarantee creative achievement and that in order to predict creative achievement (innovation), ‘many other conditions must be fulfilled, many other traits added (e.g. ego-strength), many abilities



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and behaviours added (e.g. IQ, persistence)’ (p. 279). In brief, psychoticism alone is not enough to predict the propensity for innovation. Summary Using two competing models of personality, the FFM and the Eysenck threefactor model, it has been possible to draw some broad conclusions abut the interrelations between the characteristics previously associated with innovation. Essentially, innovation is positively associated with openness and lack of agreeableness and conscientiousness. Similarly, innovation is positively associated with psychoticism. Association with extraversion and neuroticism is less certain and information is lacking from organizational research. The literature suggests that further investigation is required at the facet level of analysis and some aspects are likely to be domain specific. Innovation and Motivation High levels of motivation are undoubtedly required for innovation (Crutchfield, 1962; Amabile, 1983; 1996; Perkins, 1988; Csikszentmihayli, 1988; Gruber & Davis, 1988; Gardner, 1993). Innovators are viewed as displaying a devotion and total absorption in their work (Barron, 1963; MacKinnon, 1962; Gruber & Davis, 1988; Eysenck, 1994). The most influential researcher in this field has been Theresa Amabile, who offered a componential model (Amabile, 1983, 1996). Her studies suggest that innovation involves three major components including intrinsic task motivation, domain-relevant skills (i.e. expertise) and innovation-relevant process (cognitive skills and work styles conducive towards novelty). The model implies that intrinsic motivation is conducive towards innovation and that extrinsic motivation is detrimental. Her early work was based on the rationale that intrinsic motivation led to increased interest and challenge in approaching a given task. Conversely, extrinsic motivation was defined as the motivation to engage in a task in order to meet some external goal or to achieve some external recognition, based on contingent reward. In this way, a number of contextual factors have been identified as external constraints on innovation, such as expected evaluation and surveillance. Her work has been influential in promoting the important role of motivation on innovation and where we can also begin to draw some links with possible environmental influences on innovation at the individual level. In Sternberg and Lubart’s (1991, 1999) investment theory, motivation is named as one of the key resources required for innovation to occur. In extending Amabile’s model, Sternberg and Lubart (1995) suggested that taskfocused motivation is essential. They suggest that intrinsic motivators are more likely to lead to task-oriented motivation but that some extrinsic motivators may increase an individual’s concentration on a task. Broadly, the literature suggests that intrinsic motivation is a prerequisite for innovation but


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that the impact of extrinsic motivators is less clear (Collins & Amabile, 1999). In exploring contextual and environmental effects on motivation, Amabile (1979, see also Collins & Amabile, 1999) suggests that expected performance evaluation has a detrimental effect on innovation. However, the evidence suggests that in the workplace, evaluation that is informative (i.e. constructive, supportive and recognizes accomplishment) can be conducive to innovation (Amabile & Gryskiewicz, 1989; Amabile, 1996). Amabile (1996) suggested that intrinsic motivation is particularly important in tasks that require novelty and extrinsic motivators may be a distraction during the early stages of the innovation process. At other points in the process, where persistence and evaluation of ideas are required, synergistic extrinsic motivators may help innovators to persist in solving the problem within the domain. In related studies, Zhou (1998) examined the interactive effects of three contextual variables (feedback valence, feedback style and task autonomy) on innovation. In this study, 210 business studies students were asked to roleplay a personnel director in a steel company, and to provide innovative (novel and useful) solutions for the problems presented in an in-basket task comprising 22 memos. The experimenter manipulated both the type of feedback and the instructions that participants received during the experiment. The results showed that individuals who received positive feedback given in an informational style, and who worked in a high task autonomy environment, generated the most innovative solutions. In explaining these findings, Zhou (1998) draws upon cognitive evaluation theory (Deci & Ryan, 1987), proposing that perceived competence (an individual belief that he or she is capable of doing the task) and self-determination (an individual’s perception that he or she is the driving force behind successful performance of the task), are the two main antecedents of intrinsic motivation. In other words, positive feedback leads to greater innovation because it enhances an individual’s perceived competence. When positive feedback is delivered in an informational style, it further boosts perceived competence and self-determination, resulting in elevated intrinsic motivation and enhanced innovation. Zhou also suggests that when autonomy is high (in terms of work methods, work scheduling and work criteria) and when an individual receives positive informational feedback, this is likely to lead to the highest innovative production. Support for this notion was demonstrated in Axtell et al.’s (2000) study of machine operators in a manufacturing organization, who demonstrated the important role of self-efficacy in role innovation (see also Parker, 1998). This also suggests that contextual factors are likely to have the strongest influence in the implementation phase of the innovation process. Summary Intrinsic motivation is clearly described as a key resource for innovation to occur. In relation to extrinsic motivation, Amabile’s (1993) theoretical model



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of synergistic motivators suggests that any extrinsic motivator that enhances an employee’s sense of competence, without undermining self-determination, should enhance intrinsic motivation and, thus, increase the propensity for innovation. The literature in this area undoubtedly highlights the important role of the work environment in shaping innovation. However, Collins and Amabile (1999) note that future research should also explore the impact of individual differences in personality or experience, which may influence the way a person interprets or reacts to such extrinsic motives or constraints. The environment is likely to have a differential impact on individuals. In essence, researchers must use confluence approaches, and similar to other antecedents discussed here, must be complemented by consideration of other individuallevel resources.

THE PERSON-LEVEL PREDICTORS IN THE INNOVATION PROCESS Although the literature in this area has suffered from a lack of transparency over the years, recent confluence approaches have provided greater comprehensibility (Sternberg, 1999). Cognitive abilities, knowledge, personality and motivation are key resources at the person level of analysis. Also, it appears that different resources are important at different phases of the innovation process. For example, tacit knowledge is likely to be important in idea generation. Practical knowledge is influential in the contextual assessment of those new ideas to a given domain. Personality characteristics are likely to be influential in both contextual assessment and implementation of a new idea. The main aim of this review was to summarize the literature on the personlevel predictors of innovation. A summary of these variables is presented in Figure 4.2. The innovation process is conceived of comprising problem identification (either by the individuals, group or organizations), an idea-generation phase, a contextual assessment of the new idea and, finally, implementation. The process is multifaceted and iterative. For example, knowledge of results is likely to shape the propensity for further innovation. If implementation is not successful, intrinsic motivation to innovate may dissipate over time. Figure 4.2 presents a summary of the various resources thought to influence the innovation process. This is not to say that these resources do not shape other phases of the process; Figure 4.2 highlights where they are likely to be most influential. Without question, more data are needed from organizational settings in order to validate these assumptions. It is certain that innovation cannot be truly understood without exploring environmental variables and group and organizational influences, particularly for the implementation phase of the innovation process. However, we must first determine the antecedents and the person qualities that lead to innovation. Further, person-level analysis has begun to offer a theoretical understanding


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of the individual-level variables involved. Before drawing conclusions in this area, some broad implications for organizational practice are presented.

PRACTICAL IMPLICATIONS The findings have various practical implications for organizational research, particularly in relation to selection and assessment, self-selection and the management of innovation. Each of these is outlined below. Selection and Assessment Having identified key resources required for innovation, this knowledge could be applied for use in organizational selection and assessment. For example, since the literature suggests there are individual differences in the capacity for generative thinking (Ward et al., 1999), assessments of this nature may be used in selection scenarios. Similarly, in relation to personality, we may choose to select individuals high on openness as a predictor of innovation. For other dimensions of personality, however, the implications are less obvious, particularly in relation to conscientiousness. For example, the evidence demonstrates that lack of conscientiousness is associated with innovation. Conversely, many criterion-related validation studies in selection research have shown conscientiousness to be the best personality indicator of ‘successful’ job performance more generally (Barrick & Mount, 1991; Barrick, Mount & Strauss, 1993; Salgado, 1997; Schmidt & Hunter, 1998). Since many have argued that innovation is a highly desirable facet of employee behaviour (Kanter, 1991; Van Gundy, 1987; Glynn, 1996; Quinn, 1992; Van de Ven, 1986), how do we reconcile this observation? In short, it is not possible to draw firm conclusions without further investigation, particularly at the facet level of analysis. However, since organizational structures have changed dramatically over the past few decades, traditional employee characteristics of ‘getting on and doing what you’re told’ may be becoming obsolete for organizations operating in highly competitive markets (Jackson & Wielan, 1998). For example, Schmidt and Hunter’s (1998) metaanalytic results were based on data collected over 85 years of research, and since the pace of organizational transition has been dramatic over the past decade alone, future studies may provide very different results. Alternatively, we could argue that organizations are not yet ‘ready’ to recruit individuals who are likely to challenge the status quo, question authority and are less conforming. Self-selection Building on Schneider’s attraction-selection-attrition theory (ASA; see Schneider, Smith, Taylor & Fleenor, 1998), people are differentially attracted


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to an organization on the basis of the organization’s structure, strategy and culture. In this way, innovative people are more likely to be attracted to organizations that are externally perceived as innovative. In other words, selfselection may also play a part in attracting innovative employees. If this is the case, perhaps organizations need to evaluate how they are viewed externally and consider the way new employees are socialized into the work environment (Anderson & Ostroff, 1997). The Management of Innovation The literature shows lack of agreeableness to be associated with innovation, and suggests that innovative employees are likely to challenge the status quo, be outspoken and defy those higher up the organizational hierarchy. Perhaps the greatest challenge is how best to manage such individuals, both in terms of maintaining harmonious interpersonal relationships with co-workers and promoting management styles that facilitate innovation. There is no easy answer, and there is little literature in this area to provide practical recommendations. Perhaps an initial step is to encourage managers to welcome and invite challenge from employees, and treat innovative individuals as a source of ideas, rather than insubordinate employees. In relation to enhancing motivation, the literature provides some relatively clear-cut solutions for how contextual factors might influence intrinsic motivation for tasks. The difficulty is in attempting to enhance intrinsic motivation for tasks in environments that are likely to have many controlling extrinsic constraints. Such constraints could be pay for performance, competition, surveillance and ‘accounting for hours’. Collins and Amabile (1999) suggest that one strategy to preserve intrinsic motivation and enhance innovation is to ‘immunize’ for the negative effects of these phenomena (see also Hennessey et al., 1989; Hennessey & Zbikowski, 1993). For example, managers might emphasize the informational nature of these types of evaluations for developmental purposes, rather than their controlling nature. In this way, the intention would be to reinterpret these extrinsic motivators and hence reduce the perceived constraints associated with these types of controls.

CONCLUSIONS AND IMPLICATIONS FOR FUTURE RESEARCH Although the literature in this area has had a difficult history, we have moved towards greater consensus about the key resources required for innovation at the person level. Future research needs to focus on developing a unifying theoretical perspective, which may be grounded in biological and neuropsychological perspectives. At present much of the literature on definitions is tautological, and we know little about the causal relationships between the resources required for innovation to occur. Research could also draw upon



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interactionist models of human behaviour, which may tell us more about the interplay of these variables (Saklofke & Zeidner, 1995; Sternberg & Ruzgis, 1994; Van Heck, Bonaiuto, Deary & Nowack, 1993; Warr, 2001). For example, only recently has it been proposed that there is a link between personality and intelligence. These two areas of research have most commonly been treated as separate entities for study, but some have begun to explore the associations between them (Ackerman & Heggestad, 1997). In researching these possibilities we are likely to learn more about the multiplicative effects of the various person-level resources for innovation. The main aim of this review was to summarize the variables associated with individual-level innovation. This is an area that has generally been underrepresented in the organizational psychology literature, particularly in reference to theoretical developments. Undoubtedly, more field-based research is required in organizational settings to further validate these findings.

NOTES 1. Use of DT tests as a criterion for establishing validity of other measures, such as measures of personality, is unwarranted (Wallach, 1971; Nicholls, 1972). 2. The FFM approach is not without its critics (Block, 1995; Goldberg, 1993), particularly in relation to Openness (Ferguson & Patterson, 1998; see also Ackerman & Heggestad, 1997). The researcher must also be vigilant that the development of Costa and McCrae’s FFM was driven partly by rational, and partly by statistical methods. 3. In relation to the FFM, Psychoticism is believed to be negatively associated with both Agreeableness and Conscientiousness.

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Chapter 5 PAST, PRESENT AND FUTURE OF CROSS-CULTURAL STUDIES IN INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY Sharon Glazer San Jose State University, USA INTRODUCTION Interest in cultural research began with the Father of Psychology, Wilhelm ¨ Wundt (Ongel & Smith, 1994), but pursuit of the assessment of cultural differences and similarities was put on the backburner until recently. Crosscultural studies in Industrial and Organizational (I/O) psychology further lack a history (cf. Erez, 1994a). Although work-related psychology research is plentiful in single-nation studies, such as the United States, the United Kingdom, Sweden, Israel, India, Germany, Japan, and Finland, cross-cultural I/O psychology research may be insufficient because there are not enough theories in single-nation I/O psychology studies in general. And as Berry (1989) suggests, deriving etics (i.e., universal theories) might be done by imposing a theory established in one culture to other cultures. Nonetheless, there was a thrust in cross-cultural comparative research after the 1980s when Hofstede (1980) published his research of a typology of values (individualismcollectivism, power distance, uncertainty avoidance, masculinity-femininity) on which to compare more than 40 nations. Most of the countries exemplified in cross-cultural research are in fields other than I/O psychology. In the Journal of Cross-Cultural Psychology only two ¨ I/O-related articles were published in the period 1970–1993 (Ongel & Smith, 1994). Should one consider social psychology to be strongly related to I/O psychology in terms of themes addressed then one might presume that articles falling under the cross-cultural social psychology heading may be relevant to cross-cultural I/O psychology, as well. Examining only human resources and organizational behavior journals, Tayeb (1994) noted that nearly 94% of the International Review of Industrial and Organizational Psychology, 2002 Volume 17 Edited by C. L. Cooper and I. T. Robertson.  2002 John Wiley & Sons, Ltd.


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articles mentioned the importance of cross-cultural research, but very few had actually tested its relevance. Erez (1994a) also found that of over 2000 articles from 13 English-language journals, written by authors from eight different countries, under the heading of ‘Applied and Organizational Psychology,’ during the period of 1980–1989, only 21 were cross-cultural studies! The purpose of this chapter is to present a review of cross-cultural and cross-national studies that have been conducted in I/O psychology-related topics and to determine topics for future research. Before delving into the literature review, it would serve well to note here that while the terms ‘crosscultural’ and ‘cross-national’ are very different, they will be used interchangeably as a result of their misuse in the studies reviewed. It is my belief that cross-cultural research is conducted when culture variables are studied as explanations for nations’ effects on other variables. Georgas and Berry (1995) argued that interchanging these terms would amount to abandoning ‘culture as a theoretical concept in cross-culture research’ (p. 127), because the very characteristics making up a nation do not necessarily make up a culture. Culture can be defined as values, attitudes, meanings (attributed to language), beliefs, and ways of acting and interacting that are learned and shared by a group of people over a period of history and are often taken for granted as reality by those within the ‘said’ culture (Earley & Singh, 1995; Tayeb, 1994; Zapf, 1991). The term ‘nation’ includes social, education, business, political, and economic factors in addition to culture (Tayeb, 1994), although many cultures can make up a nation. Culture can also be influenced by linguistic, economic, political, legal, and religious systems, but they are not necessarily characteristic of the culture at all times. Thus, a cross-national study may be a cross-cultural study if culture variables are accounted for, but not all crosscultural studies are necessarily cross-national. When a cross-national study is conducted, assessment of variables specific to culture may not be necessary, but when striving to conduct a cross-cultural study, it will be those characteristics defining culture which one wants to examine closely to determine if any variations or similarities exist between or among them. Work-related Terms Across Cultures Another problem with cross-cultural research is the lack of conceptual definitions for relevant terminology. For example, England and Harpaz (1990) studied the meaning of ‘working’ in a sample of workers in Belgium, the Federal Republic of Germany, Israel, Japan, Netherlands, and the USA. They found three major distinctions for defining ‘working.’ These categories included: (1) reason for engaging in work (i.e., economic support or because of feelings of obligation); (2) expected outcomes for engaging in working activities; and (3) controls related to performing in work. Similarly, the word ‘career’ can readily be translated into Hebrew, however for Israelis it has a connotation of ‘egoistic, self-centered motivation that is socially undesirable’


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(Etzion & Bailyn, 1994, p. 1543). In a study of the European operations of Arthur Andersen and Company, Jinkerson, Cummings, and Neisendorf (1992) noted that the term ‘culture,’ as in organizational culture, defined by the Americans, was not easily understood by all respondents. The results of these studies imply that even ‘simple’ terms have complex and different meanings across cultures. Good translations are vital for comparing variables across cultures. Ryan, Chan, Ployhart, and Slade (1999) learned that the measurement of job satisfaction, workload and stress, quality culture, and supervisory communication (with 11 items) was invariant for US and Australian workers of a multinational organization, but not for the Mexican and Spanish, or US and Mexican workers of the same company. Without measurement invariance subsequent analyses are futile (see Cheung & Rensvold, 1999, for detailed description of testing factorial invariance across cultures). As research in I/O psychology develops, researchers should beware of falling into the trap of generalizing theories and research methods developed in one dominant culture to other cultures (Henderson, Sampselle, Mayes, & Oakley 1992), as different factors function differently on the other cultures’ perceptions of the world (Zapf, 1991). Using them incorrectly in research can compromise results and interpretation of findings. Thus, the greatest obstacle is transferring ‘meaning’ (Jankowicz, 1994). ‘When we go across cultures, we go across lines of manifest as well as latent content’ (Matsumoto, 1995, p. 228). In other words, there are as many cultural variations underlying meanings of general constructs (Antonucci, Fuhrer, & Jackson, 1990; Jankowicz, 1994). Not understanding what terms mean or finding that constructs do not hold the same meanings to people of different cultural backgrounds may be professional suicide for a consultant and misleading for the researcher.

PERSONNEL PSYCHOLOGY Most research in personnel psychology is related to training and development. Because people go across cultural and national borders, training and development appear to be important for enhancing individuals’ and organizations’ effectiveness. However, many researchers and companies have neglected to emphasize the importance of appropriate selection procedures and subsequent appraisal of the sojourners/expatriates’ performance on overseas assignments. Through an extensive review of literature, it is apparent that little money is spent on training and developing sojourners; however, I would wager that even less money is spent for selecting the right people for an assignment abroad. Usually, the person sent or reassigned has performed well at ‘home,’ and it is assumed that he or she will perform well abroad too. This assumption relates to ‘The Peter Principle.’ Management may promote or reassign


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someone to the highest level of incompetence. In the case of the expatriate, he or she might return home early from an assignment, because the person did not have what it takes to fulfill the assigned role. The expatriate might feel detached from the parent company (having been away) and, by returning early, feel devastated for not completing the assignment, thereby ensuring a poor performance appraisal review, not to mention the enormous loss of money to the company who sent the incumbent. These problems call for developing and assessing better selection tools and designing performance appraisal review systems that are relevant and appropriate for a sojourner or expatriate (and for the repatriate who returns with new skills). Training and Development Across Cultures Around the 1970s, and somewhat in the 1960s and 1950s, researchers started to develop, implement, and publish cross-cultural training programs (cf. Fowler, 1994). Because international businesses and availability of expatriate positions were increasing, so was the need for sound cross-cultural training. Cross-cultural training is a preparatory process designed to help people live, work, study, and perform well in various cultures through the development of behavioral, cognitive, and affective abilities (Fowler, 1994). A large part of cross-cultural training was established as a result of poor communication with hosts of a foreign environment (Hammer & Martin, 1992). Through quantitative and qualitative research, a number of researchers (e.g., Bhawuk, 1998; Bhawuk & Brislin, 1992; Gregersen & Black, 1990; Hammer & Martin, 1992; Watson & Kumar, 1992) illustrated that intercultural communication training can have a positive effect on an expatriate’s assimilation in his or her new environment, improved performance, and effective decision-making. Noting the importance of adjustment, in 1955 Lysgaard discussed this issue for foreigners visiting the United States on a Fulbright grant. Later, in the 1960s, others also began to examine how foreign expatriates acclimated in the United States. Unfortunately, research at that time was still centered on the USA (i.e., how others adjusted in the USA). Today, scholars (e.g., Aycan & Berry, 1996; Saunders & Aycan, 1997; Ward & Kennedy, 1996; Ward & Rana-Deuba, 1999; 2000) are studying expatriate, sojourner, and immigrant adjustment throughout much of the world. In particular, scholars and practitioners are recognizing that training is helpful to all who go abroad (Bhawuk & Brislin, 1992). Training programs should provide a taste for differences across cultures and the tools to handle them (Ptak, Cooper, & Brislin, 1995; Triandis & Singelis, 1998). In a review of literature on cross-cultural training, Hesketh and Bochner (1994) declared that cross-cultural training was needed, especially as the number of multinational corporations from the United States and Great Britain onto mainland Western Europe and a few select other countries increases. Unfortunately, since the 1960s cross-cultural training has been rare. A lack of



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cross-cultural training may have led to a great loss of money for many organizations. Copeland and Griggs (1985) noted that US firms, whose expatriates could not complete their overseas job due to their inability to adjust to the new culture, lose nearly $2 billion annually. If only more than just 30% of multinational organizations would invest in preparing their employees for work in a foreign country through cross-cultural training (Black, 1988, cited in Deshpande & Viswesvaran, 1992) would less than 20–40% return home early (Deshpande & Viswesvaran, 1992). A possible holdup of cross-cultural training is lack of evidence that it works (Black & Mendenhall, 1990). In order to acquire evidence of its effectiveness or failure, training needs to be conducted. As the problem and the solution are so intricately interwoven, organizations tend not to provide financial support to test the effectiveness of training. Often organizations do not recognize that even if cross-cultural training fails, it does not indicate that the expatriate’s adjustment ability got worse, rather it probably had no change. However, we will never know of its effectiveness without developing culture theories that are applicable to cross-cultural training (Bhawuk, 1998). Not implementing cross-cultural training keeps the problem in its fury, but implementing cross-cultural training can at least partly, if not greatly help an expatriate in his or her assignment for the full duration. Monies spent on training an expatriate who returns early is money well spent for reassessing and developing the training program. Evidence of the usefulness of cross-cultural training has been accumulating in the past decade. Research has shown that cross-cultural skill development, adjustment, and performance are better with cross-cultural training than without it (Gannon & Poon, 1997; Goldstein & Smith, 1999; Kealey & Protheroe, 1996). Although people learn from experience and the consequence of experience shapes present and future behavior (Black & Mendenhall, 1990; Deshpande & Viswesvaran, 1992), not everyone has had experience abroad. Therefore, cross-cultural training is intended to shape behavior in a new cultural setting. Cross-cultural training is often divided into cognitive and experiential-based training. Goldstein and Smith (1999), in a post-test only design study, found that student sojourners attending an experiential week-long training program faired better, in terms of cross-cultural adaptability and emotional resilience, than a control group and international students, in general. Moreover, adding a cognitive component to an experiential cross-cultural training program was even better than one or none, but neither experiential nor cognitive was better than the other (Hammer & Martin, 1992; Harrison, 1992). Harrison (1992) concluded that receiving explanations of behaviors increased the amount of learning that occurred in a cognitive approach and that learning occurred in the experiential training approach, but combined approaches were significantly more effective on learning measures than either of the individual methods alone. Similarly, Gannon and Poon (1997) found little difference between experiential (simulation game), integrative (lecture, discussion,


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group exercise), or video-based training approaches. However, MBA students in the experiential programs were more satisfied and felt it more useful and relevant than MBA students in the other conditions. Not only might people have been more satisfied with experiential-based training, but also anxieties were greatly reduced when it was introduced to the cognitive-based training (Hammer & Martin, 1992). With cross-cultural training, self-confidence and cross-cultural perceptions, as well as interactive skills, self-development, adjustment, and performance are improved (Deshpande & Viswesvaran, 1992). Utility of training Deshpande and Viswesvaran (1992) were the only researchers found thus far to have exemplified the utility gain of cross-cultural training for expatriates in a new culture. They suggested that future studies need to incorporate measures of nature of occupation (i.e., complexity), job characteristics, cultural familiarity, nature of sojourner–host interactions, mode of adjustment, various individual (e.g., personality) and organizational factors (e.g., selection criteria), and non-work factors (e.g., cultural novelty) as potential moderators of the effectiveness of cross-cultural training and length of sojourn. For example, ‘if trained employees stayed within the organization for a period of five years, a training program for one hundred managers would translate into utility gains of $390 000 (10 000 × 0.78 × 100 × 5) for the organization’ (Deshpande & Viswesvaran, 1992, p. 305). Selection As human resource management (HRM) practices globalize (Aycan, Kanungo, Mendonca, et al., 2000; Aycan & Kanungo, 1997; Aycan, Kanungo, & Sinha, 1999) and expatriates are making selection decisions in their host cultures, it becomes imperative to learn how adopting certain selection techniques impacts applicants or trading-off selection practices affects the assessor. Different means of selection and retention are still among the many new demands placed upon the increasing number of international businesses around the world (Gregersen & Black, 1990). In addition, it is apparent that early returns are partly due to adjustment problems. In this section, I discuss quantitative predictors of adjustment, as well as attitudinal factors (e.g., satisfaction and commitment) and behavioral tendencies that might be considered before selecting and sending someone overseas. As the European Community allowed its members to work anywhere in the 15-country alliance, people began to encounter ‘strange’ selection procedures. For example, Shackleton and Newell (1991) learned that, in Britain, interviews were usually conducted by a panel, whereas in France interviews were usually held by successive individuals. British employers used references more than French employers. French companies put more emphasis on personality



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tests, graphology tests, and biodata than the British, but the British relied more on formal and structured techniques (Naulleau & Criccom, 1993), as offered by assessment centers. The French relied more on intuitive-type methods of selection and abstract management styles (Naulleau & Criccom, 1993; Shackleton & Newell, 1991), although they did not consider these techniques to be logical and they rated these techniques negatively (Steiner & Gilliland, 1996). In fact, selection decisions based on work-sample tests, interviews, and resumes were considered more reliable (Steiner & Gilliland, 1996). Therefore, when designing a global selection process for a multinational firm, it is important not only to examine the validity of the selection tools, but also how favorable the various methods are in a given social context. Moreover, knowing what are acceptable and normal selection practices can help to avoid any ethical and legal repercussions. Another problem in selecting expatriates is relying on professional experience and reputation (in other words, tenure and rank) of the candidate, as opposed to capabilities to do the work and adjustability (Bhawuk & Brislin, 1992; Gregersen & Black, 1990). However, Gregersen and Black (1990) noted that the higher the position an expatriate held in the organizational hierarchy, the more likely he or she wanted to return home prior to completing the contracted time. People in high positions were probably sent abroad because of a long tenure with a company and seniority was probably strongly related to assignments cut short. There are a number of reasons why people cut their assignments. First, going home may reduce feelings of loneliness from the absence of important corporate information and resources (Gregersen & Black, 1990). Another possibility for going home may be to gain access to those who determine promotions. People who are prone to feeling ‘left out’ may not be suitable to work in another country and those deploying people for work outside of the country are most likely unaware that a good worker in one country (regardless whether ‘good’ is through merit or seniority) may not be good in another. Assessing intercultural sensitivity (e.g., Triandis & Singelis, 1998) and personal aspirations with a company prior to selecting someone to work abroad may help avoid high costs of an early return. Bhawuk and Brislin (1992) and Bhawuk (1998) proposed a measurement of sensitivity for those considering careers in international business. Triandis and Singelis (1998) empirically supported the usefulness of assessing ‘subjective Individualism and Collectivism’ as a way of training people to recognize that there is much variation even within a culture. Thus, it is not only important to know how cultures differ, but also how people within a culture differ in terms of values held. Number of years spent abroad (i.e., more than 3 years), number of foods tried, and people who enjoyed working on international fair activities were important variables related to intercultural sensitivity (Bhawuk & Brislin, 1992). Age, friends from other cultures, and knowing more than one language


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had no significant impact on sensitivity (Bhawuk & Brislin, 1992). Probably, intercultural sensitivity does not stem from what and whom one knows, but from one’s personality in liking to seek new experiences. Interculturally sensitive people have respect for and enjoy interacting with culturally different others. Moreover, they accept the special qualities that make each culture unique. It follows that people without extensive cross-cultural experience should be deployed to countries that are not crucial to their operation or are proximally similar in culture. People who have large cross-cultural transitions (e.g., New Zealand students studying abroad in Europe and the Americas) are more likely to have socio-cultural adjustment problems than those who made small transitions (i.e., Malaysians going to their neighboring country, Singapore) (Ward & Kennedy, 1996), because large transitions indicate fewer available cultureappropriate skills (Mak, Westwood, Ishiyama, & Barker, 1999; Triandis, 1997; Ward & Kennedy, 1996). To ease adjustment in large transitions, developing language and interpersonal skills with hosts can help sojourners adapt (Cui, van den Berg, & Jiang, 1998). Moreover, how easy it is to transfer from one culture to another positively impacts adjustment (Paik, Rody, & Sohn, 1998) and self-efficacy. On the basis of a study of Korean managers working in the USA, it appears that moving from a high power distance and high uncertainty avoidance, as well as feminine culture, to a culture with lower uncertainty avoidance and power distance may be easier than the opposite (Paik, Rody, & Sohn, 1998; Triandis, 1997). Thus, while sensitivity may not be impacted by language knowledge (Bhawuk & Brislin, 1992), intercultural communication capabilities do have an impact on adjustment (Cui, van den Berg, & Jiang, 1998). Furthermore, research has shown that expatriates in Hong Kong, Japan, Korea, Taiwan, Belgium, England, the Netherlands, and West Germany were more likely to complete an assignment when committed to the parent company (Gregersen & Black, 1990). Commitment to the host company did not account for a large amount of variance in intention to leave. Sojourners’ relations to a host company may be seen as transient, and therefore, less committed than to the parent company (Alnajjar, 1999). Ward and RanaDeuba’s (1999; 2000) studies also showed that relations with co-nationals helped sojourners’ (in Nepal) psychological adjustment and contact with their hosts helped sojourners adapt to their host nation’s customs and norms. Moreover, not only was adjustment to host nationals and environment important in retaining expatriates, but also their commitment level to the parent and host organization. If one felt greater attachment to the parent organization than to the host company and proximally distanced from the parent organization, expatriates would have been less likely to complete their assignment before their contract was over. Commitment to parent and host companies may be difficult to assess when the potential sojourner has not yet visited or lived in the host country.



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However, Orpen (1990) suggests measuring action tendency of attitudes (i.e., how one ‘wants to act’ with respect to various job aspects). The Action Tendency of job satisfaction among 53 Australian employees, for example, was highly correlated with separate measures of job involvement, work motivation, and overall job satisfaction. In addition, Montagliani and Giacalone (1998) recommended looking at the predictive validity of impression management and cross-cultural adaptation measures. A more concrete way of assessing a potential sojourner for a job may be through assessment centers (Briscoe, 1997). Thus far, Briscoe has recommended that designers of assessment centers be culturally sensitive, experienced, and/or trained. Designers should take into consideration the cultural sensitivity of the assessees and choose assessors who have knowledge of national and cultural issues. When implementing assessment centers, Briscoe suggested evaluating the behaviors of assessees on the basis of predetermined criteria that are justified. Another avenue for research is on risk takers (e.g., Goszczynska, Tyszka, & Slovic, 1991). A common cliché is that the most successful managers were those who were not afraid to take risks. Perhaps those who adjust best in overseas assignments are those who are not afraid to take risks when interacting with people of diverse cultural backgrounds. Such studies should also examine what constitutes ‘risky behavior’ in various cultures and how risktaking is perceived by people of a given culture in order to interpret the data correctly. Recently, research on an expatriate’s adjustment has been focusing on family adjustment (Caligiuri, Hyland, Joshi, & Bross 1998). Longitudinal research suggests that the family has a great deal of influence on an expatriate’s adjustment and assignment completion. Families that conceived of moving to a new country in a positive light adjusted better than those who perceived the move negatively. In determining whether to send someone abroad, family characteristics appear to play a mediating role in the success of the expatriate. However, assessing family characteristics can be dangerous to the incumbent’s working relationship with the organization, especially if the family does not see the international move positively. Perhaps, then, a solution might be to provide a great deal of preparation for the family. Performance Appraisal Performance appraisal review systems (PARS) have rarely been studied in a cross-cultural context or from an indigenous perspective. In this section PARS of individuals’ work performance is discussed. Group appraisal1 brings in numerous issues that would require more space than is available here. It should be expected that the PARS of a parent company would change in subsidiaries in light of cultural context. For example, while feedback is intended to shape performance (Earley, 1986), feedback has different effects on workers’ performance in different countries (Earley & Stubblebine, 1989).


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Feedback may help reduce work-role uncertainty and help an individual, who is from a culture valuing high uncertainty avoidance, to structure and plan his or her work-related activities. It might also reduce conflict by maintaining a formal pattern of interaction between workers and managers in a high power distance society. Also, the level of trust in one’s supervisor mediates one’s acceptance of feedback for improving performance (Earley, 1986). Whether the feedback is in the form of praise or criticism can be differentially effective in changing a worker’s performance. However, in collectivist societies, individual feedback may pose a threat to social relationships and harmony. In an individualistic society, where competition and individual achievement are valued, individual feedback may be better received (without losing face) (Weldon & Jehn, 1995). These results strongly suggest that it is vital to know in which cultural contexts to implement certain kinds of PARS. In particular, expatriate managers should be extremely cognizant of both the organization’s culture and the country’s cultural contexts, as HR techniques developed in one culture are not readily applied in another culture. Feedback systems, such as that of the PARS, may need to be tailored to fit the cultural milieu where an expatriate sojourns. Who does the appraising also depends on the cultural context. No research has been found to provide insight on this. However, if one is an expatriate the immediate supervisor in the host national firm and one’s immediate supervisor in the parent country might be the appropriate appraisers. Acceptance of subordinates’ or colleagues’ PARs may depend on culture; ratees in some cultures might find subordinate and/or peer evaluations offensive. A selfappraisal might be appropriate in some cultural contexts, but not in others (Farh, Dobbins, & Cheng, 1991). Farh, Dobbins, and Cheng found that collectivists (i.e., Taiwanese) are modest in self-ratings of performance and rarely (if at all) exaggerate their accomplishments. In fact, Taiwanese employees gave themselves lower self-rating in their job performance than their supervisors did. However, when the items loading on a variable were worded negatively, leniency bias, as opposed to modesty, was shown. Furthermore, the evaluations given to subordinates by both US and Taiwanese supervisors were not more or less lenient from each other. Collectivist subordinates’ ratings will probably not be inflated, yet not accurate either. Using self-ratings should be considered carefully in the context of various cultures, because in some cultures self-ratings may be lenient, whereas in other cultures ratings may be modest. In addition, it may be prudent for HR departments to consider the wording of the performance appraisal review form, as negative wording in collectivist cultures may aid in truth reporting and greater reliability of the PARS. Another important issue to consider is conducting reviews of individuals’ performance by comparing people to others and inadvertently raising or lowering the status of others (Barnlund & Araki, 1985). In an individualistic



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society that type of appraisal would be acceptable, as it confirms the unique contributions of each person in the society and encourages competition for the purpose of development (Gelfand, Spurlock, Sniezek, & Shao, 2000). However, in cultures that stress harmonious group relations, such comparisons could break up the group’s unity. When managers and subordinates are from different countries there may be difficulty understanding each other’s behaviors (Shaw, 1990). If a multinational firm relies on self-ratings, there may be bias against employees who do not engage in individual aggrandizement. As a result, comparing employees’ selfratings would be an incorrect indication of true performance. Because people tend to perceive in ways that reflect what they value (Triandis, 1994), especially when making decisions regarding performance appraisal (Ralston, Gustafson, Elsass, Cheung, & Terpstra, 1992), and both the rater and the ratee have different criteria for a ‘good performer,’ not being aware of cultural differences can be very damaging (Shaw, 1990). Thus, an expatriate going from an individualistic society to a collective society would need to learn, for example, that there is little variance in manager and subordinate behaviors across situations, whereas in individualistic societies a foreign manager may have several different behavioral styles that can be used across different situations (Shaw, 1990). Next, dimensions assessed should be based mainly on important task performance dimensions that are related to a particular job (Kealey & Protheroe, 1996) or to skills needed to adjust. For the first year of being back home, repatriates should probably be appraised like expatriates, because their behaviors, attitudes, and even values change during their overseas assignment (Black, 1992). Thus, evaluations may be based on expatriates’ or repatriates’ abilities to apply learned skills in the context of a new or renewed cultural environment. Some of the skills include: (1) working effectively with other people, which means enhancing one’s partnership skills by developing effective exchange in decision-making and shared risk-taking (Dean & Popp, 1990; Kealey & Protheroe, 1996); (2) dealing with unfamiliar situations and lifestyle changes, which means adjusting or adapting to a host national by adjusting to the job, interacting with host nationals (Black, 1992; Dean & Popp, 1990), and accepting cultural rituals and integrating into the host’s society by engaging in outside-work activities; and (3) expecting communication problems, because communication skills are important for building trust and understanding (e.g., listening and observing, tolerating cultural differences, dealing patiently with ambiguous situations to enhance job performance) (Dean & Popp, 1990; Kealey & Protheroe, 1996; Masterson & Murphy, 1986). These dimensions may prove to be more important in enhancing performance than the tasks needed to achieve the goal of an assignment, because a lack of skills in these areas may have direct effects on employees’ work behaviors and assignment completion. There is a great need for more research on performance appraisal review systems. This review provides some possibilities for further studies on performance appraisals.


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 ORGANIZATIONAL PSYCHOLOGY Motivation and Values

For the most part, work motivation researchers are concerned with eliminating factors that block people from working effectively and determining factors that motivate them to engage in more productive work. Work-related motivation has been studied from a cross-cultural perspective in terms of work values. Work values guide people’s behaviors. A primary reason to study values and attitudes held by individuals in organizations and societies around the world is presumably to gain a greater understanding and appreciation of their motivational influence on varying behaviors in an international workforce (Dahler-Larsen, 1998; Yavas, Luqumani, & Quraeshi, 1990). Understanding the meanings of people’s values (Dahler-Larsen, 1998) and attitudes might help researchers learn how differently people of various cultural or national groups behave under similar situations. Likewise, when one studies organizations in another culture, one intends to learn procedures that seem to be working well for the organization in one country in order to develop and implement changes in another country that would affect organizations’, groups’, and individuals’ abilities to produce better products and solve problems (Magyari-Beck, 1992). Consequently, learning about values, attitudes, and procedures helps consultants to develop effective training and development strategies (Yavas, Luqumani, & Quraeshi, 1990). Work values and motivators differ across cultures and managers do not always know what motivates their employees (Silverthorne, 1992). For example, a large gap was found between what managers perceived motivated their subordinates and what the workers reported to be motivating in Russia and the USA. In contrast, Taiwanese managers seemed to be fairly consistent with their subordinates regarding reported motivators. That is, workers’ reported motivators and managers’ perception of motivating factors were congruent in Taiwan. Other studies have shown that value orders do not necessarily differ across countries, and across cultures within countries, but the mean scores of the values differ significantly (Elizur, Borg, Hunt, & Magyari-Beck, 1991; Maurer, Oszustowicz, & Stocki, 1994; Schwartz & Sagie, 2000; Yamauchi, 1993; Yavas, Laqumani, & Quraeshi, 1990). Not only were there differences between Far Eastern and Western cultures and Communist/former Communist and Western cultures, but even between those belonging to similar cultures, like Germany and Holland (Elizur et al., 1991), China and Japan (Yamauchi, 1993), and Poland and Germany (Maurer, Oszustowicz, & Stocki, 1994). Moreover, differences in the extent to which attributes and end states are valued do not only vary across regions and countries within regions, but also between cultures within a country. Shackleton and Ali (1990) found that British nationals rated low on power distance and uncertainty avoidance, Sudanese nationals rated high on power distance and low on uncertainty



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avoidance, and Pakistanis in Pakistan and Great Britain were completely opposite from British nationals (i.e., Pakistanis were high on power distance and uncertainty avoidance). This may imply that culture of origin had a stronger influence over work values than one’s present cultural sphere, even when born in a country not of family origin. Moreover, unlike the other studies that included power countries or industrialized societies (i.e., Poland, Germany, USA, China, Korea, Taiwan, Holland, Hungary, and Israel), Sudan and Pakistan are considered Third World. Perhaps with increasing industrialization, managerial values across countries will converge with those held by workers of highly industrialized societies. Another possibility is that gross national product (GNP) is related to the differences in values. Countries with a high GNP (i.e., Germany, the United States, Britain, Australia, and New Zealand) had lower Protestant Work Ethic (PWE) scores than countries with relatively low GNPs (i.e., India, Zimbabwe, and the West Indies); Hong Kong had an intermediate score, and Israel had a low score on PWE (Furnham, Bond, Heaven et al., 1993). Also, countries with high power distance and low collectivism (or high individualism) scores can be attributed with low PWE scores. Niles’ (1999) recent study added that Sri Lankans valued hard work more than Australians, even though Sri Lankans saw no relationship between hard work and success (as the Australians do). Niles suggested that there may be a normative sense of ‘oughtness’ in responses, that is, Sri Lankans are expected to value hard work, and therefore endorse it. In other words, having a high PWE was socially desirable and therefore rated stronger by countries with low GNPs. Attitudes Satisfaction Assessing differences in satisfaction among culturally different employees has implications for recruitment (At-Twaijri, 1987). Job, life, and non-work satisfaction, as with some studies on work values, across countries, have been found to be fairly similar across ten Western European countries (Near & Rechner, 1993). However, within certain countries, for example, Saudi Arabia, expatriates indicated greater job satisfaction than Saudis (Yavas, Luqumani, & Quraeshi, 1996). Wages and everyday-life benefits (housing, car, private school education for children) allotted to expatriates might have been better than for the Saudis. Saudi Arabia is a wealthy oil state, although the working class is not wealthy. In poor nations, financial satisfaction positively correlates with life satisfaction (Diener & Diener, 1995; Oishi, Diener, Lucas, & Suh, 1999), whereas in wealthy nations home-life satisfaction positively correlates with life satisfaction (Oishi et al., 1999). Most expatriates get paid well and family expenses are paid for by the parent company. These expenses are not taken care of when one works in his or her local company.


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Thus, future research could examine if expatriates’ job satisfaction stems from having an opportunity to reach self-actualizing goals (Near & Rechner, 1993; Oishi et al., 1999) without having to worry about financial stability. Organizational Commitment The concept of organizational commitment has been investigated in a number of countries, including Slovenia, West Germany, Israel, Hungary, Italy, England, Japan, the United Arab Emirates, Malaysia, Korea, Hong Kong and the ˇ USA (Alnajjar, 1999; Andolˇsek & Stebe, 2000; Besser, 1993; Cohen, 1999; Glazer, 1995; 1999; Glazer, Daniel, & Short, 2000; Lincoln & Kallenberg, 1985; Near, 1989; Pearson & Chong, 1997; Sommer, Bae, & Luthans, 1996; Tjosvold, Sasaki, & Moy, 1998). In each of these studies the measurement of organizational commitment was valid. However, not all the measurement ˇ scales were the same. For example, Glazer and Andolˇsek and Stebe used Allen and Meyer’s (1990) questionnaire assessing affective and continuance commitment. Near and Sommer, Bae, and Luthans used the Organizational Commitment Questionnaire (Porter, Steers, Mowday, & Boulian, 1974), which assesses an affective commitment component of organizational commitment. Alnajjar (1996) used an Organizational Commitment Scale he developed, which also taps into the affective commitment component. Organizational commitment has been considered a global and stable attitude toward an organization. Affective commitment is often defined as an emotional attachment, identification with, and involvement in an organization (Allen & Meyer, 1990). Continuance commitment can be defined as a calculative attitude toward the organization. That is, people tend to stay with an organization because they would lose too many accumulated benefits by leaving it, or there are no alternative jobs available. Finally, normative commitment (Allen & Meyer, 1990) has rarely been investigated cross-culturally, although research stipulates a demand for it. Normative commitment is related to feelings of obligation toward one’s organization. For the most part, each of these studies showed that organizational commitment is interpreted differently across cultures and that predictors of organizational commitment differ across cultures. In particular, it appears that there are unique cultural indicators of organizational commitment. For example, in the USA freedom might be a unique predictor of organizational commitment, whereas in Japan, seniority is a unique predictor (Near, 1989). Also, social bonding has a greater effect on commitment in collectivist cultures than in individualistic cultures, and structural bonding may be more predictive of commitment in individualistic cultures than in collectivistic cultures (Williams, Han, & Qualls, 1998). Furthermore, the significance of values as predictors of affective and continuance commitment differs across collectivist and individualist ˇ cultures (Andolˇsek & Stebe, 2000; Glazer, Daniel, & Short, 2000). The effects of organizational commitment on turnover intention are also inconclusive



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(Abrams, Ando, & Hinkle, 1998). Overall, these studies suggest that in order to develop a universal understanding of organizational commitment, data based on all organizational commitment scales, including normative commitment, and indigenous scales of commitment (not published or yet developed) must be collected. Relying on the Western approach to organizational commitment is inherently limited in scope and efficacy (Kao & Sek-Hong, 1993). For example, trust along with specific contractual obligations (which denotes a worker’s relationship to the organization) is rarely studied as a predictor of commitment, yet in Japan these variables yielded greater commitment than in the USA. It appears that the cultural dimension of individualism and collectivism (Randall, 1993) might determine predictors of commitment. In individualist societies, group is not the most important factor and thus, developing trust among group members is not essential and neither is commitment based on trust. For this reason Kao and Sek-Hong suggested that high trust was a more important factor influencing high levels of organizational commitment in the Japanese culture than in Western cultures. Another research question is whether organizational commitment is stable? Alnajjar’s (1999) study on (affective) organizational commitment showed that United Arab Emirates (UAE) citizens were more committed than expatriates. This might indicate that because sojourners’ relationship with a host company is transient, they might have little intention of forging a strong bond. Instead, their bond has remained strong for the parent company. This speculation needs further investigation. Organizational Development and Team Building Organizational Development (OD), a process that has its roots in England and the USA, has been taken to non-Western countries. Some practitioners have been finding that the applicability of OD is not suitable in some cultures (Bendix, 1994; Earley, 1994). For example, the Chinese cultural ethos precludes emotional self-disclosure, especially to strangers or out-group members. The Chinese values of respect for and acceptance of authority, strict hierarchical communication lines, and authoritarian rule (Westwood, Tang, & Kirkbride, 1992) go against the philosophies espoused by some OD interventions (e.g., sensitivity training). Often in team-building programs, it is expected that people air their dirty laundry (about personal, individuating issues) in order to unify a group. Such a strategy would likely fail in China, especially since groups tend to be quite unified as decision-making styles of Chinese teams tend to be adapting, that is, members make stable and consistent, reliable, precise, efficient, prudent, methodical, and conforming (rarely challenging norms) decisions (Dollinger & Davis, 1998). Although the theoretical end result of team building, in the USA, may seem compatible with a collectivist culture (Earley, 1994), interventions that call for open criticism of others (e.g., confrontation


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meetings, role negotiation techniques, third-party interventions, and even survey feedback) might be perceived as a threat to authority or to oneself by way of self-disclosing. One might also argue that while Western companies intervene with group-building exercises to build cohesion, the sense of cohesion already exists in Eastern work groups. Moreover, by changing the balance of power by empowering subordinates in high power distance cultures, performance decreases (Eylon & Au, 1999). This suggests that in cultures like China, where power distance is high, instituting a (US style) team-building exercise, which would empower the team members, would actually have a negative impact on group performance and this might produce great anxiety and instability in the group’s functioning. Therefore, training should be molded in a framework that takes into account a worker’s cultural background and individual differences or experiences that shape an employee’s values and beliefs. A universal OD theory must allow for organizations to be similar in some respects, compromise on differences, and accept differences that cannot or will not change. In other words, the keys to successful OD and change lie in three ‘Cs,’ that is, finding commonality, reaching compromise, and considering differences. ‘Articulating differences . . . may make interactants more aware of conflicting needs, preferences, and agendas that must be accommodated’ (Burgoon, Berger, & Waldron, 2000, p. 120). Naulleau and Criccom (1993) found that management styles differed between France and Britain, in that British participants in management development programs may be offended by abstract ideas while French participants may be frustrated by non-formalized or non-structured approaches. Likewise, Vertinsky, Tse, Wehrung, and Lee (1990) found that some norms of organizational design and management can be globalized (i.e., a process through which cross-cultural and national differences converge) to Canada, Hong Kong, and China, and others cannot. For example, the Chinese placed higher value on experimentation and innovation than Canadians and Hong Kong workers. The similar norms reflected adaptations to national economic and regulatory environments. This is also reflected in Dalbert and Katona-Sallay’s (1996) study that Hungarians’ belief in a ‘just world’ (i.e., justice rendered to everyone) became stronger as people adapted to political and economic changes which included the opportunity to practice religion (which was strongly related to belief in future compensation and belief in a just world). Finally, Bendix (1994) concluded that corporate changes in the USA and Denmark will be most effective when (1) government regulations or other corporate policies change; (2) the implementation of restructuring directly impacts operations; (3) direct execution of changes led by top management appears to be important to the permanency of the efforts; (4) corporate-wide participation makes for more effective implementation; and (5) the organization’s task environment is involved. However, differences were noted in the extent of change agents’ involvement (higher involvement in the USA than in Denmark), US organizations’ reliance on prepackaged programs (e.g., total quality management and socio-technical systems redesign), and



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Danish organizations’ employment of changes on a need by need basis and delegation of authority. For the Danish, hearing lectures and information gathering activities (i.e., cognitive activities) played an important role in changes, whereas actual training (i.e., experiential activities) played a significant role among the US cases (Bendix, 1994). The effectiveness of OD and change will be successful to the extent to which practitioners recognize differences in cultural values. Therefore, Perlaki (1994) suggested three strategies before implementing changes. First, choose OD interventions that are relatively compatible with the culture’s characteristics and/or organizational culture. Second, choose organizations, organizational units, and work groups whose culture is relatively compatible with OD values. Third, help organizational members diagnose and develop their own OD interventions that will be compatible with their own culture and their own concept of organizational change. Notwithstanding, foreign trainers should also be aware of the minute details that may normally be taken for granted within one’s culture; for example, a foreign female facilitator may not be respected highly in countries where men are usually the authoritative figures in the workplace. Thus, every aspect of a training seminar, including the person who conducts it, should be piloted before an organization spends its resources to train its employees. Leadership and Conflict Management In 1994, at an international meeting, representatives from 56 countries came together to develop an international study on leadership called, ‘The Global Leadership and Organizational Behavior Effectiveness Research Program’ or GLOBE (House, Hanges, & Ruiz-Quintanilla, 1997; House, Hanges, RuizQuintanilla et al., 1999). With 62 cultures embedded in about 58 countries sampled, this study promises to provide a better understanding of culture’s influence on leadership behavior, universal ideals of leadership behaviors, attributes, and characteristics, culture-specific details that vary across cultures, and a large database from which to build a global theory of leadership. Furthermore, this data will include information that could explain why cultures are different or similar on various leadership issues. GLOBE data were collected from middle managers in over 1000 companies from two of three target industry sectors (food processing, telecommunications services, and financial services). Four levels of analyses are available for study: the individual, the industry, the organization, and the nation. The research agenda includes four major phases: (1) data collection and assessment of data’s psychometric properties; (2) testing hypotheses about etic and emic aspects of leadership; (3) assessing longitudinal or causal relations between culture and organizational leadership effects; and (4) determining etic and emic leader behaviors that affect organizational consequences within and across cultures. The first phase has been completed. It was concluded that the concept of, social status of, and amount of influence that is exerted by leaders


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differ across cultures. The second phase of the research is underway, as papers are being published and presented at conferences by teams of GLOBE collaborators. Throughout this section, some of the papers written during the second phase of GLOBE will be reviewed, along with non-GLOBE papers. Western conceptualizations of predictors of managerial effectiveness differ across cultures (Den Hartog, House, Hanger et al., 1999; Den Hartog, Maczynski, Motowidlo et al., 1997; Drost & Von Glinow, 1998; Rahim, Antonioni, Psenicka, Kim, & Khan, 1999). Culture impacts leadership behavior and expectations for leadership behavior. Understanding how cultures vary along actual and desired leadership approaches can make international business liaisons more effective. For example, collectivist society members consider the effects of their decision on other members of the in-group, whereas the individualistic society member makes decisions where individual interests and satiation are the most important concerns. Therefore, for members of the collectivist culture, conflict should be avoided in order to preserve relationships, promote harmony, and foster a sense of shared responsibility (Chu, Spires, & Sueyoshi, 1999). Knowing the extent to which people of other cultures expect to be directed can help managers to prepare or modify leadership styles. For example, Finnish expatriates indicated that their German, British, and French subordinates expected them to be more authoritative than participative (Suutari, 1997). These results are consistent with Schmidt and Yeh (1992) who found that English leaders emphasized the traditional bureaucratic formal authority, position power, and assertiveness in their relations with their subordinates. An authoritarian leader preference was even more pronounced in Estonia and Russia, where Finnish expatriates perceived that their host subordinates expected an almost dictatorial approach to decision-making. Moreover, the locals shirked the opportunity to take responsibility for tasks and even depended on strict rules, definitive roles, and criticism to motivate them to work (Suutari, 1997). It is possible that Eastern European workers, in general, are like Polish workers, who value power distance, but at the same time, when leaders distribute tasks, the subordinates perceive the leaders as imposing upon them, thereby causing a reduction in creativity (Savicki, 1999). These behaviors are further exemplified in Den Hartog et al.’s study (1999), whereby Polish managers are depicted as preferring ‘an autocratic style, diplomacy, risk avoidance, and [strong] administrative skills’ (p. 262). Comparing two collectivist societies, it was found that the Japanese preferred mediation and arbitration more than the Spaniards, but they both favored negotiating and complying (i.e., conflict-reducing or harmony-enhancing), and least favored threatening, accusing, and ignoring (i.e., confrontational procedures) (Leung, Au, Fernández-Dols, & Iwawaki, 1992). Chu, Spires, & Sueyoshi (1999) also found that the Japanese preferred a non-compensatory process (i.e., nonconflict-confronting) to compensatory processes (i.e., conflict-confronting). The authors argued that the concern over preserving in-group harmony would use up



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cognitive capacity, therefore making the Japanese less likely to employ a decision model that demanded high cognitive effort. This is consistent with other studies that found Japanese prefer being bridgers rather than adaptors or innovators (Dollinger & Davis, 1998) and favour femininity (or social connectedness) over masculinity (Powell & Kido, 1994). Japanese workers placed greater emphasis on bureaucratic channels and less emphasis on sanctions than Taiwanese workers (Schmidt & Yeh, 1992). In fact, Taiwanese employees were found to perceive both transactional and transformational leadership, although they preferred transformational leadership (Singer & Singer, 1990). Japanese managers reason to subordinates by way of example, decisions are made by groups, and information is readily available so that subordinates are responsible for getting work done (Rao, Hashimoto, & Rao, 1997). That effective leadership would be negatively influenced by a coercive power base, but positively influenced by a personal power base (e.g., legitimate and expert power) in collectivist cultures (i.e., South Korea and Bangladesh) was found in Rahim et al. (1999). This might explain why Nigerians were in favor of arbitration and accepting the situation when handling conflict (Gire & Carment, 1993). Turkish managers also preferred peaceful means of dealing with conflict, such as collaboration (Kozan, 1989). This was preferred over forcing and compromise, which were favored more than avoiding styles. In Jordan, the order of preference for conflict management styles was slightly different. Jordanian managers also used collaboration more than compromise, but these were used more than accommodation and avoiding, followed by forcing (Kozan, 1989). Olekalns (1997) notes that unequal power in an organization is more likely to result in suppression of conflict. That Japanese are more hierarchically differentiated than Germans or Americans, makes the acceptance of power inequalities more likely in the Japanese culture (Tinsley, 1998). A culture’s level of hierarchical differentiation (Tinsley, 1998) and management support (Song, Xie, & Dyer, 2000) explains the preference for the deferring to status power conflict model, that is, those with high status have the power to create and enforce their resolution. Australians emphasized friendly reasoning and bargaining with subordinates (Schmidt & Yeh, 1992). Their emphasis on reasoning may be related to Australian leaders’ perceptions that their subordinates are in control of their behaviors (Ashkanasy, 1997). Trust in subordinates is important if one expects to be a transformational leader. New Zealand police officers were found to favor and be transformational leaders, as opposed to transactional leaders (Singer & Singer, 1990). Canadians also preferred conflict-management behaviors (i.e., negotiation and mediation) that aligned with transformational leadership (Gire & Carment, 1993). In general, it appears that employees of different cultural backgrounds prefer leaders who motivate them through challenging goals (Singer & Singer, 1990). Moreover, attributes related to transformational leadership styles are universal and related to the concept of an excellent leader, even though the


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perception of the effectiveness of these leaders varies across cultures (Den Hartog et al., 1999). Other researchers (e.g., Brodbeck, Frese, Akerblom et al., 2000; Den Hartog et al., 1997; Tolgerdt-Andersson, 1993) showed differences in leadership styles by country and geographical location. Analyzing advertisements in search of executives, Tolgerdt-Andersson (1993) concluded that although more than 50% of the advertisements for executives mentioned a need for social and personable qualities (i.e., cooperative and possessing ability to motivate/inspire others) in Sweden, Denmark, Norway, France, Germany, and Britain, people in Scandinavian countries preferred them more. Brodbeck et al.’s (2000) study further indicates that ‘team collaboration’ and ‘team integration’ are important attributes of excellent leaders among people of Nordic countries. In both Tolgerdt-Andersson and Brodbeck et al.’s studies, no trait was unique and specific only to Europe, as leadership requirements differed between countries and regions. Leadership and Organizational Position It was once noted that leaders at different organization levels are concerned with different means of obtaining organizational goals (Etzioni, 1959). Since then little has been done to support this and related ideas. Den Hartog et al. (1999) ascertained that Dutch respondents felt that a good manager at a top level needed to achieve goals through ‘innovative, visionary, persuasive, longer-term oriented, diplomatic, and courageous’ (p. 248) means, whereas an excellent lower level manager achieved goals by providing ‘attention for subordinates, team-building, and participative’ (p. 248) management. Differences regarding leadership qualities at various levels of an organization’s hierarchy are also apparent in a study of Mexican workers in Baja California (Drost & Von Glinow, 1998). Managers’ ratings of nine leadership qualities were factored out as two distinct constructs, consideration (i.e., relationship-oriented leadership) and initiating structure (i.e., task-oriented leadership). However, nonmanagers’ ratings did not show a distinction, instead the initiating structure was embedded in consideration, as what the authors described was congruent with the Mexican culture that imbues authoritative, yet friendly supervisors. Finally, these studies have strong implications in understanding cultural similarities. It appears that most people prefer peaceful ways of handling conflicts or making decisions. People also prefer leaders to be transformational. Unfortunately, reality usually differs from preferences (Albaum, Murphy, & Strandskov, 1990; Den Hartog et al., 1997; Den Hartog et al., 1999; Powell & Kido, 1994; Singer and Singer, 1990; Suutari, 1997; TolgerdtAndersson, 1993) and more attention needs to be paid to both reality and preferences. The reality is that the enactment of leadership styles differs (Drost & Von Glinow, 1998; Rao, Hashimoto, & Rao, 1997; Savicki, 1999; Schmidt & Yeh, 1992). Thus, just because a certain style is said to be



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preferred, when it comes to behavior, subordinates might unconsciously suggest they need more authoritative leaders (through non-verbal or verbal communication). The studies reviewed provide information that can help people interact with leaders or subordinates of different national or cultural backgrounds, at home or abroad. Managers will be better prepared to predict ethical, political, social, or economic issues prevalent for the maintenance of an effective multinational company (Albaum, Murphy, & Strandskov, 1990). More research needs to be conducted on what leadership should entail, the effectiveness of leaders, what traits are universal versus culture specific, what type of organization needs what type of leader, which leadership style is preferred and by whom, and what relationships between different leadership styles and outcomes are moderated by various cultural dimensions. In addition, research is needed on the interaction of leaders and followers of different ethnic or cultural backgrounds, as cultural differences might explain problems in interaction (Chong & Thomas, 1997). These ideas for leadership research topics are far from being conclusive. However, through the GLOBE data set, answers to many of these and other questions can be investigated. Group Research As companies move from individual work to teamwork, an area that should be of interest to the company is the effect of changes on performance. Erez and Somech (1996) concluded that giving specific goals, communicating information that others might need, and providing incentives can help to eliminate any threat to social loafing in individualistic cultures. In collectivist cultures, performance will not be deterred by social loafing, but it might increase with incentives, as well as with specific and difficult goals. As more and more organizations from individualistic societies look upon the success of organizations in collectivist societies, a key element to remember is that the importance of performing well differs across cultures. In collectivist cultures, people perform well, so as not ‘to cheat’ other in-group members (Hui & Graen, 1997), whereas in individualistic cultures, people perform well, because they either want to receive a reward or to show that they can be held accountable for achieving goals. Also, in individualistic cultures, reward that is associated with a valued outcome would likely increase individuals’ performance in their groups. It is possible that with regulations, deadlines, and reward opportunities, individualists might feel that they need to behave in a way that is normative in their culture (Gelfand & Realo, 1999). Negotiation Negotiating across cultures is a topic that has rarely been investigated. Thus far, research has shown that individualists tend to compete when they are held accountable, and they often do not succeed in cooperating (Gelfand & Realo,


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1999). Even Probst, Carnevale, and Triandis (1999) noted that vertical individualists do not cooperate well within their own group, but instead compete against each other. An anomaly to this is that Americans (erroneously) perceive themselves to be concerned over their negotiating partners, but Greeks perceive their American counterparts as not being concerned about them (Gelfand & Christakopoulou, 1999). In other words, it might be that Americans do not even realize that being held accountable makes them more competitive nor do they realize that they are not showing any interest in building relationships with their opponents. Moreover, Americans, possibly without recognizing it, seem to consider themselves to be better than their colleagues (Gelfand & Christakopoulou, 1999). In fact, as in American sport, Americans racked up points or claimed negotiated gains for themselves, whereas Greeks shared information. Thus, Americans engaged more in individuating behaviors than in relational behaviors (Gelfand et al., 2000). Gelfand and colleagues’ research on negotiation is only the beginning. More research is needed with samples from many more countries. Impression Management Impression management is defined as a tendency to present oneself in the best possible light so as to be socially accepted. In the organization, people play roles, and to perform well one must adhere to certain social standards. Thus, national culture may have an impact on one’s impression management. For example, inexperienced sojourners may present themselves in ways that are appropriate for their home country, but not their host country. Mendenhall and Wiley (1994) maintain that training expatriates about how host nationals engage in impression management behavior would facilitate their adjustment with the host, and give them a better understanding of the appropriate normative behavior and how to build relationships with host nationals on the basis of normative behaviors. Ability to control communication patterns (i.e., impression management) is related to cross-cultural adaptation (Montagliani & Giacalone, 1998). Occupational Stress Laungani (1993) wrote that, in addition to unique values and ideologies held by people within each culture, there are unique sets of stressors or demands on individuals. The ways in which individuals react to these stressors are, therefore, also culture-specific. In other words, culture might impact the perceptions of stressors and development of strains (Bhagat, O’Driscoll, Babakus et al., 1994; Keinan & Perlberg, 1987), but that has not been studied enough. Further, it is realistic to suggest that one would find that the stress process (i.e., stressors leading to appraisal, which might produce strains and consequences) is the same across cultures (Baba, Galperin, & Lituchy, 1999;



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Bhagat et al., 1994; Glazer, 1999; Xie, 1996), but that the intensity of stressors (Ghadially & Kumar, 1989; Hurrell & Lindstrom, 1992; Keinan & Perlberg, 1987), and the appraisal and coping with stressors and strains are different between cultures (Bhagat, Moustafa, Krishnan, Harnisch, & Ford, 2001; Bhagat et al., 1994; Ghadially & Kumar, 1989; Laungani, 1993; Hurrell & Lindstrom, 1992; Kawanishi, 1995; Kirkcaldy & Cooper, 1992; 1993; Kirkcaldy, Brown & Cooper, 1994; Lindstrom & Hurrell, 1992). The management of stress also differs across cultures (Laungani, 1993). For example, in India, stress (i.e., strain) is not perceived as a problem requiring the attention of experts (as it is perceived in Britain or other Western countries, for that matter). Rather, they engage in homeopathic treatments such as yoga, a popular form of treating psychological disorders, including stress (Laungani, 1993). The collectivist cultures of Indians and Taiwanese were also found not to engage in ‘scientific’ coping strategies, as the Americans had (Ghadially & Kumar, 1989), although Bhagat et al. (1994) would argue that the problem-focused coping ameliorates the effects of stressors on strain in collectivist cultures (e.g., India, South Africa, and Spain). It appears that while the overall associations between stressors and strains are similar, there are significant differences across cultures as to which stressors and strains relate. In fact, it can be concluded that stressors, strains, and coping strategies are neither the same nor significantly related the same way in the USA and Finland (Lindstrom & Hurrell, 1992; Hurrell & Lindstrom, 1992), Germany and the United Kingdom (Kirkcaldy, Brown, & Cooper, 1994; Kirkcaldy & Cooper, 1992; 1993), Israel and the USA (Keinan & Perlberg, 1987) and Poland and the Netherlands (Schaufeli & Janczur, 1994). In Hurrell and Lindstrom’s studies (Lindstrom & Hurrell, 1992), both Finnish and Americans had the highest level of job demands during the midcareer stage. For Americans, job demands had little effect during the first and last career stage, but they did have an effect early in one’s career in Finland. Also, Type A behavior and internal locus of control were high for both UK and German managers and police (Kirkcaldy, Brown, & Cooper, 1994; Kirkcaldy & Cooper, 1992). Moreover, in both countries, the correlations between Type A behavior and job-related pressures were not significant and locus of control did not moderate the relationship between job-related stressors and work satisfaction (Kirkcaldy & Cooper, 1992). Finally, subjective work stressors (i.e., uncertainty, imbalance between investments and outcome, and lack of control), personality variables (i.e., self-esteem and reactivity), and work situation variables (i.e., work experience, affiliation time, number of hours per employee per week, team size, and intensity of patient contact) were equally important in predicting burnout in Poland and Holland (Schaufeli & Janczur, 1994). Other than these similarities, Finnish and American managers had different stressor and strain symptoms, as well as different ways of coping with and


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managing them. German managers and police officers differed significantly from their UK counterparts (Kirkcaldy, Brown, & Cooper, 1994; Kirkcaldy & Cooper, 1992), in terms of stressors, strains, and coping styles, including leisure activities (Kirkcaldy & Cooper, 1993). Also, Polish and Dutch nurses had different levels of stressors associated with different levels of strains (Schaufeli & Janczur, 1994). Noting that the reporting, perception, and importance of job-related demands and control variables differed across these national cultures (Hurrell & Lindstrom, 1992; Kirkcaldy, Brown, & Cooper, 1994; Kirkcaldy & Cooper, 1992; 1993), researchers must become sensitive to unreported stressors. Stressors that are not acknowledged might still exist. Observational field research may be necessary to study unreported stressors in the workplace. Moreover, as Bhagat et al. (1994) suggested, cross-cultural research concentrating on emic aspects of stress and coping would be highly beneficial, as the information would be more informative to expatriates than an overall model of stress would be. As cross-national business exchanges increase, it will become more important than ever before to know which stressors a worker from one country may perceive, as this knowledge will help his or her counterpart from another country to be more sensitive to his or her needs, by minimizing potential sources of strain in business interactions (Kirkcaldy & Cooper, 1992). Social support A moderator of stress, that may be culture-dependent, is social support (Beehr & McGrath, 1992). However, the relationship between social support and stressors and strains has not been established. Social support may prove to have great differences in various cultures (Beehr & McGrath, 1992; Fischer & Shavit, 1995). Antonucci, Fuhrer, and Jackson (1990) suggested that in some cultures social support works through a process of reciprocity. Some cultures value the social behavior of reciprocity, but Antonucci and colleagues found that it is augmented by socio-demographic variables, for example, age. Another study discussed earlier showed that Germans seek more social support from friends, whereas UK managers seek social support from family (Kirkcaldy & Cooper, 1992). Liang and Bogat (1994) found that among Chinese with an external locus of control, perceived availability of potential support resources produced both main and buffering effects. However, received social support yielded negative buffering effects. For the American sample, perceived and received social support buffered the effects of stress, but only for internals. Researchers of this study suggest that future investigations on the buffering model of social support can examine cultural factors as they relate to its provision, perception, receipt, and utilization (Liang & Bogat, 1994). In other words, future research should examine how culturally specific values moderate the relationship between stressors, social support and strain (see review by Beehr & Glazer, 2001).



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By studying variations in social network formations in Israel and USA, Fischer and Shavit (1995) exemplified the importance of understanding how culture and societal norms frame individuals’ social worlds. Their study helps one to understand the values Israelis and Americans hold that shape their perception of stress. Fischer and Shavit depicted the differences in social network formations between Israelis and Americans by discussing the kinds of social interaction each society engages in over the course of their lives (e.g., scouts, military, and neighborhood friendships in Israel vs. more autonomy in America). The analysis suggested that Israelis have a stronger social network than Americans, and would, therefore, probably perceive fewer stressors (Fischer & Shavit, 1995; Keinan & Perlberg, 1987), because they engage in many more social activities throughout their lives than Americans. When researchers engage in cross-cultural studies, that is, comparing results of within-country analyses, variables that were developed in one country must be invariant across the cultures studied. However, few researchers have reported the validity of the stress variables, as Green, Walkey, and Taylor (1991) did with the Maslach Burnout Inventory (MBI) in New Zealand, Great Britain, Estonia, and the USSR. The results of their study were successfully and reliably replicated cross-culturally. In 1995, Peterson and colleagues conducted a 21-nation study to determine the predictive validity of role ambiguity, role overload, and role conflict. To test the invariance of the models, they performed confirmatory factor analysis. They contended that role stressors ‘contain a core of meaning wrapped up in the nature of relationships within formal organizations’ (Peterson et al., 1995, p. 448). More studies are needed to confirm the generalizability of stress measures. Researchers cannot assume that translated concepts carry the same meaning across cultures. For example, the term ‘stress’ in Hebrew (‘lachatz’ or ‘metach’) would be translated back into English as ‘pressure’ or ‘tension’, respectively. Thus, if a researcher designs a survey in English and intends to ask about stressors, but uses the term stress in his or her questionnaire, this term could be translated into Hebrew as ‘metach’, and interpreted as tension, which is strain and not a stressor. The data from the Hebrew language surveys and from the English language surveys would therefore not be equivalent. Justice Organizational justice has been a growing topic of study in I/O psychology since the mid-1980s. It had its beginnings primarily in Adams’ (1965) equity theory and Thibaut and Walker’s (1975) theory of procedural justice. However, crosscultural studies of justice have not been based on organizational justice. Through the review of the following studies, implications for further study of justice in organizations (i.e., organizational justice) can be derived. It is apparent that culture exerts influence over the perceptions of justice. Bond and Smith (1996), in their literature review, noted that the concern of people in


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collective cultures for maintaining harmony should result in egalitarian resource division. Distributing equally to in-group members preserves harmony and positive ‘guanxi’ (or relationships) (Hui & Graen, 1997). However, members of a collectivist society should only show an egalitarian division of resources when allocating to in-group members who are also co-workers or when dividing a fixed amount of reward, otherwise they resemble North Americans (Hui & Graen, 1997; Hui, Triandis, & Yee, 1991). Vertical collectivists (conceptualized as sharing and benevolence to in-group members and recognizing a hierarchy in status) tend to be cooperative when working within their own group, but less cooperative when they have to work with other groups (Probst, Carnevale, & Triandis, 1999). Moreover, when the allocator’s personal input is low, distributions to in-group members follow an equity rule (Morris & Leung, 2000). Like the Chinese, Indians are variable in their conception of justice and fairness; a group-level analysis is insufficient and misleading (Singh, 1996). The concern of people in individualistic cultures for performance should result in equitable resource divisions. Allocation of rewards based on performance (i.e., merit-based rewards) is further supported by Berman and Murphy-Berman’s (1996) research. Vertical individualists compete for personal gain (Probst, Carnevale, & Triandis, 1999), thereby justifying meritbased rewards. The concern for oneself is so great, as is individual freedom and humanism, that even when someone commits an immoral act, such behavior is not expected to be either punished or rewarded. Instead, reward would go to the individual who competed fairly and maintained moral behavior (Lee, Pepitone, & Albright, 1997). Additional studies on procedural justice (e.g. Azzi, 1992) and a review of research (e.g., Morris & Leung, 2000) can be found in social psychology journals. The studies reviewed, though based on student samples, have implications for future organizational justice research. Expatriates will likely perceive justice from their own cultural lenses, but understanding how people of other national cultures perceive justice will help expatriates adjust to the realities of a new environment and different organizational (unwritten) policies. ADDITIONAL WORK-RELATED ISSUES Gender Issues I/O psychologists have sometimes delved into gender issues, especially as related to equity and equality (Clark, 1991) and sexual harassment (Gelfand, Fitzgerald, & Drasgow, 1995). In a 57-nation study, Clark (1991) found that worldwide (i.e., country was the unit of analysis), women’s access to highstatus positions had been favorable from 1960 to 1980. However, Jacobs and Lim (1992) found that the chances of men being employed in a predominantly ‘female’ occupational or industrial group are greater than for women in ‘male’ occupations. Nevertheless, as the size of an organization increased, so did integration of women into a predominantly male workforce.



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A hindrance to women’s chances of attaining promotion in high-status positions, may be the increasing number of multinational corporations (Clark, 1991), but their entrance to higher education institutions strengthens their chances, or so it would seem. Wright, Baxter, and Birkelund (1995) examined the low representation of women in positions of authority as a possible predictor of gender inequality in seven nations, including the USA, Canada, the UK, Australia, Sweden, Norway, and Japan. The gender gap for authority in the English-speaking countries was smaller than in the Scandinavian countries and much smaller than in Japan where the gender gap was large, despite the fact that equality of gender roles (which is clearly a culture value) was most pronounced in Scandinavia, particularly in Sweden, and lowest among Americans (in relation also to Canada and Australia) (Baxter & Kane, 1995). Gender inequality in positions of authority may be due to political and economic factors (Wright, Baxter, & Birkelund, 1995), whereas women’s ties to men may be explained by a culture value for egalitarianism (Baxter & Kane, 1995). It appears that valuing equality does not necessarily lead to equality in reaching positions of authority and vice versa. As Etzion and Bailyn (1994) pointed out, American female technical workers were neither socially supported nor socially opposed in taking on work and family roles, they simply did it. Some might argue that women do not achieve high status because of their own work values. Women, in Hungary, Israel, and the Netherlands rated affective values (e.g., esteem, relations with co-workers and supervisors, opportunity for interaction with people, and recognition) higher than men did (Elizur, 1994). They also rated some of the instrumental values (e.g., hours of work, pay, benefits, work conditions, and job security) higher than men, but men ranked pay value higher than women did (Elizur, 1994). Finally, men ranked most of the cognitive values (e.g., work and organizational influence, independence, and responsibility) higher than women, but women ranked meaningful work higher than men (Elizur, 1994). Men had a stronger motivation to achieve power (and have influence) than women (Bruins, Ouden, Dépret et al., 1993; Elizur, 1994), and for that reason women might not have reached many positions of authority. However, when it comes to egalitarianism, it appears that people in progressive Western European countries, for example Holland, nominated females for a vacant leadership position more often than Eastern Europeans from Poland (Bruins et al., 1993). Pay Differentials It has been established that women are, for the most part, paid less than men in most industrialized societies, but according to Clark (1991) their wages will eventually even out with those of men. Thus an area for future research is to find out how people view unequal pay. Do people believe women are underpaid, or simply paid less, but equitably in relation to their job requirements? Furthermore, the word ‘underpaid’ may be a reflection of the values


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held by members of a society; clarification of this term across cultures can help one to understand issues of gender equality. Sexual Harassment Gelfand, Fitzgerald, and Drasgow (1995) conducted a confirmatory factor analysis of the Sexual Experiences Questionnaire in the USA and Brazil. Their purpose was to determine if Brazilian and US women would rate the scales such that three factors would be derived, including gender harassment, sexual harassment, and sexual coercion. Researchers concluded that the scale was invariant between the USA and Brazil, which meant that when studying the concept of sexual harassment, using this survey, comparability of results could be assumed. Future studies should examine how countries differ both on a cultural and an individual level on this type of survey. It is not unusual for business people who go abroad to learn that touching a woman is or is not tolerated. However, little is known about how these behaviors are perceived by the recipients, nor how the recipients would tolerate or accept the ‘gesture’ from someone not of the same national background. Dual-career Families Thus far little cross-cultural research has been conducted on the stress of men’s and women’s shifting or dual roles as careerist and spouse/parent. Future research will probably start to show a greater interest in this topic on a cross-cultural level than it has ever done before, especially when more working mothers are assigned overseas positions. Etzion and Bailyn’s (1994) research can be used as a model for future studies, as they examined how American and Israeli women deal with the stressors of career and family. American women were found to emphasize career and compromise family, whereas Israeli women compromised ‘getting ahead’ in a career in order to have a family. For the Israelis, having to compromise a career is not perceived as a sacrifice, but for their American counterparts, not having a family is a sacrifice and more American women than Israeli women opt not to have children. Moreover, although career and family are socially desirable for Israelis, career is not expected to dominate family life. However, in America, holding both a career and a family is accepted, but they are given little support for either. Thus, Israeli women, expecting success in work, personal, and family life domains, are supported. Yet, Israeli women choosing both and wanting to succeed in both have higher burnout than their American counterparts the further along the hierarchical ladder they move. At the same time, one needs to consider that more professional Israeli women than American women were married (75% and 52%, respectively) and few American women had children (31%) compared to Israeli professional women (77% had children) (Etzion & Bailyn, 1994).



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Future research on gender issues and income ought to examine how women are supported and perceived by society for having a career. If there are sufficient workers in the workplace, perhaps women workers will be thought of as taking away jobs from men. Safety and Health Another important topic for I/O psychologists is that of safety. Safety research can have many implications for multinational organizations, as it must be a priority in the work environment. Janssens, Brett, and Smith (1995) examined whether predictors of workers’ perceptions of safety in manufacturing plants varied between the USA, France, and Argentina. In France, the concern for safety was weak as a result of diffused responsibility over safety management. In Argentina, however, productivity was everyone’s responsibility so that management could be more attentive to safety needs. Thus, it appears that when management’s role is to emphasize safety, rather than productivity, accidents are low. Understanding how safety is perceived by people of different cultures may help expatriates to adjust accordingly when working in new cultures where safety standards and management differ from the expatriate’s country of origin. Further, knowing the relationship between people’s feelings of responsibility for maintaining safety can help a facilitator develop a strategy for training others on safety issues in the workplace. In some cultures, even if management cared for safety more than productivity, unsafe behaviors and accidents may be high because ‘guanxi’ has not been developed between managers and subordinates (Hui & Graen, 1997). Guanxi is loosely translated as ‘relationship.’ When managers are not thought of as in-group members, Hui and Graen suggested, deviant behaviors might arise, but not out of spite for the out-group, rather, in order to do something good for members of the in-group. In other words, if it seems that an in-group member needs something and to get it requires doing something, even if knowingly immoral or hazardous, it might be done. Finally and relatedly, an area of great concern is the perception of safety by immigrants within countries. Many countries, like the USA, have strict safety laws. However, when someone emigrates from a country where these laws are not in place or enforced, safety behaviors decrease. Understanding people’s approaches to safety will make the solution less challenging. Another question on safety issues deals with violence in the workplace. What constitutes violence in the workplace and how is it handled?

CONCLUSION This literature review was conducted with the aim of bringing to light crosscultural research that has been conducted with respect to Industrial and


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Organizational psychology. Cross-cultural research in work-related psychology is glaringly weak and has a great deal of room for expansion, innovation, and improvement. The scope for future studies is apparently plentiful. First of all, as scholars in pursuit of generalizing human behavior in the workplace, it is important to maintain a respectable level of scientific analysis, if only by giving a priori hypotheses and explanations as to why theories or relationships should or should not be found. Second, as the advent of technological advancements is making the world more accessible to researchers than ever before, lack of communication between researchers becomes a diminishing excuse for not conducting cross-cultural research. Third, it is clear that the need for ‘transferable’ (Bendix, 1994) theories and application of theories is more relevant than ever before, as consultants, employees, and organizations cross national borders. As the internet and other forms of technology make cross-cultural research ‘easier’ to conduct, methodological issues in conducting crosscultural research will become more stringent. Stricter methods for carrying out cross-cultural research, including language translations, will facilitate the understanding of human behavior. Studies reviewed here should be replicated and conducted more precisely with culture variables and a priori predictions need to be tested, in order to build cross-cultural theories in I/O psychology. Fourth, theories developed by studying populations within one context and/or one culture must be generalized and compared to other cultures. In order to maximize international business collaboration and to understand the framework of differences and similarities, current organizational culture and national culture should be evaluated (Silverthorne, 1992) cross-culturally. Throughout the chapter I have addressed possible directions for future studies in cross-cultural I/O psychology research. Some topics not reviewed, but which call out for cross-cultural attention include, but are not limited to, entrepreneurship (Bhawuk & Udas, 1996), career-choices (Leong, Austin, Sekaran, & Komarraju, 1998), communicating over the internet (Jarvenpaa & Leidner, 1999; Kersten & Noronha, 1999) and organizational citizenship behavior. Moreover, more research is needed that assesses culture and human values and norms, as they might have implications for selection and training programs. One culture and personal values scale that is becoming recognized in the literature was developed by Schwartz (1992). His scale assesses 10 human values and 7 cultural values. At both the individual level of analysis and the cultural level of analysis, the values have guided our understanding of societies, as the magnitude of importance each value had to individuals and to cultures differed (Schwartz, personal conversation, 25 June 1997). Unlike Hofstede’s (1980) dimensions, Schwartz’s values are specific and involve either the individual as the unit of analysis or the culture as the unit of analysis, depending on how one’s study is constructed. Thus, I suggest that future researchers use Schwartz’s Values Survey to test hypotheses and explain cross-cultural findings. Finally, the sophistication of research techniques has led some researchers to analyze the utility of cross-cultural training. This step is important as many



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business decision-makers are skeptical about introducing cross-cultural training due to the lack of evidence showing that it is worthwhile and cost-saving. With the recent trend toward increasing numbers of multinational firms (Deshpande & Viswesvaran, 1992; Tolgerdt-Andersson, 1993), I believe more research in I/O psychology will naturally emerge. ‘The activity of working and the outcomes flowing from working are of fundamental significance to many if not most individuals in industrial societies’ (England, 1990, p. 30). This activity will inevitably call for research in areas such as selection, appraisal, motivation, stress, interpersonal interactions, and so on. The conduct of cross-cultural studies will require a competent research team such as the one studied by Bantz (1993). The advantages of crosscultural research are great. In order to gather meaningful data, researchers will somehow have to not only work across cultures (as House, Hanger, & RuizQuintanilla, 1997; House et al., 1999; Peterson et al., 1995, have done), but also across time and space (Bantz, 1993).

ACKNOWLEDGMENTS The author wishes to extend gratitude to Terry A. Beehr for his thoughtful comments and insight on previous drafts of this chapter and to Cary Cooper for inviting me to write this book chapter.

NOTE 1. Kirkman and Shapiro’s (1997) study of performance evaluations in self-directed work teams introduced concepts such as social loafing (cf. Erez & Somech, 1996) and free riding (cf. Erez, 1994b), distributive and procedural justice of rewards based on group performance (Kirkman & Shapiro, 1997), and team trust and confidentiality when conducting PARS.

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Chapter 6 EXECUTIVE HEALTH: BUILDING SELF-RELIANCE FOR CHALLENGING TIMES Jonathan D. Quick World Health Organization, Switzerland Cary L. Cooper The University of Manchester Institute of Science & Technology, UK Joanne H. Gavin and James Campbell Quick The University of Texas at Arlington, USA This chapter provides a comprehensive review of the literature on managerial and executive health in the context of industrial and organizational psychology. While the issue of managerial and executive health is a relatively new one in the research literature, it is of great interest in the practice literature. Executive health is currently a leading edge issue for managers, executives, and organizations for at least three reasons, discussed in the first section of the chapter. The chapter is organized into five sections. The first section elaborates the rationale for the current concern with managerial and executive health, which emerges from the medical, organizational and political science literatures. The second section presents distinguishing executive profiles that have important implications for their health and well-being, with particular attention focused on their psychological drives, emotions, needs and personalities. The third section presents the major conceptual frameworks or models of managerial and executive health, including attention to major models of stress in organizations. The fourth section considers the current state of the science in terms of research data and knowledge, to include historical biographical data on select leading business executives of the past 150 years. The fifth and final section of the chapter discusses what needs to be known about managerial and executive health in the future.



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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 WHY IS MANAGERIAL AND EXECUTIVE HEALTH IMPORTANT?

Managerial and executive health has become a leading edge concern for many for at least three reasons. First, the terrain of the new competitive landscape has increased the performance pressures and job insecurities to which managers and executives are subject. Second, managers and executives play key roles in the creation of economic benefits and wealth, not only for themselves and their families, but for a wide range of beneficiaries throughout an entire society. Third, there are a variety of economic and organizational risks and costs associated with managerial and executive disability and death, for which not only managers, executives, and their families but also a wider range of constituencies pay a price. These are important concerns to understand because of their implications for managerial and executive health as well as the consequences of managerial and executive health. The New Competitive Landscape Managers’ and executives’ health is at risk on the new organizational landscape, a landscape being shaped by competition and technology in the context of globalization and complexity of business (1994;1995;1997). These forces are subjecting managers and executives to escalating performance pressures while at the same time there is the increasing reality of job insecurity for many in the workplace. This new organizational reality has important implications for managers, executives, and all those in organizations (Gowing, Kraft & Quick, 1998). Globalization The world is in the midst of a second great period of globalization that commenced roughly following the end of the Cold War and the dismantling of the Iron Curtain at the end of the 1980s (Friedman, 1999). The first great period of globalization occurred in the late 1800s and up until World War I, which effectively brought about a New World order and a constraint on markets and trade. The current period of globalization has created a major restructuring of the competitive landscape for a wide range of industries, and the restructuring is ongoing. Margaret Thatcher was a symbolic and substantive driving force for this period of globalization. As the British politician who captured the leadership of the Conservative Party in 1975 from Winston Churchill’s protégés, Thatcher made two speeches filled with militant hostility to the Communist Party in 1976 (Young, 1989). This won her the name Iron Lady from the Russians and established her global identity. She went on to become Prime Minister in 1979, led the British in the Falklands War in 1983, and transformed the British economy into a much more competitive economic system.


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While symbolic of this era of globalization and rapid expansion of free enterprise, a number of Thatcher’s policies and their effects carried social costs (see for example the comparative divorce rate in the UK pre- and postThatcher versus other European Union countries). Change is one of the distinguishing features of the new competitive landscape ushered in by Thatcher and others. Thus, markets are opening up all around the world and it is increasingly difficult for a manager, executive, or organization to identify a safe harbor protected from the ongoing sea changes that buffet most industries and economic sectors. Complexity of business In addition to the force of globalization, there is a second major force operating on the new competitive landscape. Business is becoming more complex, which requires managers and executives to evolve new cognitive maps and models not only to understand their business and key elements in the business environment but as a basis for informed judgement (Priem, 1994). Two important aspects of this increasing complexity in business are the ongoing leveraging effects of technology and the increased rate of change demanding ever faster response times from business systems and the managers and executives running them. For example, during the period of its spinoff activities from General Motors, EDS lost a critical focus on technological advances in its industry and effectively lost its lead in the industry to the likes of IBM and CSC who were busy working the leading edge of technological advances (Mack & Quick, 2002). The newly independent EDS worked to catch up and reposition itself in a rapidly changing business context. Job pressure For the most senior executives and CEOs in organizations around the world, these combined forces of globalization and the complexity of business are immediate sources of job pressure in their daily work. Given senior executives’ and CEOs’ responsibility for the short- and long-term strategy of the business, their accurate and effective decision-making on a wide range of fronts is a key feature of their job performance (Priem, Rasheed, & Kotulic. These senior executives and CEOs have access to timely and accurate sources of information and are, therefore, directly subject to the forces buffeting them and their firms. However, for the wide range of supporting managers, aspiring executives, and executives who are further down in the organization, they may not be able to see and understand these forces quite as quickly or immediately. Yet the consequence of these forces and the decisions which senior executives and CEOs make in response to changes in the environment is a high level of job pressure.


190 INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Job insecurity A wide range of well-known organizations from US-based Eastman Kodak and IBM to UK-based BP/Amoco and Unilever, and German-based Siemans and Daimler-Benz to Dutch-based Phillips have engaged various strategies in response to the new competitive landscape. These strategies have included downsizing, layoffs, re-engineering, reshaping, reduction in force, mergers, early retirement, redundancies, and outplacements (Gowing, Kraft, & Quick, 1998). A common feature of all these organizational strategies is the increase in job insecurity, and conversely the decrease in job security, for people throughout an organization. This has been especially true with the thinning of middle managerial ranks in many organizations, without a comparable reduction in the workload and demands for the remaining managers and executives. Hence, the job pressure per manager or executive has steadily increased over the past decade. The Good News—Economic Benefits and the Creation of Wealth A second reason why executives’ health is important is their contribution to economic activity, the success of the organization, and the creation of wealth. The research on upper echelons, senior executives, and top management teams shows their positive effects on the success of the firm, resulting in economic benefits for many and, by extension, the creation of wealth. Hambrick’s (1987) research has established the positive effects a CEO can have on the success of his or her company compared to its industrial peers as well as the important role the top management team plays in the strategic success of the company. For example, as of 1995, Jack Welch created $52 billion market value added during his tenure as CEO of GE and Roberto Goizueta created $59 billion during his tenure as CEO of Coca-Cola. While both of these senior executives were handsomely rewarded economically for their efforts, their families and employees also garnered substantial economic benefit as well as the shareholders in these firms. Ireland, Hitt, Camp and Sexton (2001) suggest that entrepreneurship and strategic management actions are the two pathways to the creation of firm wealth. What is important to note here, and which has implications for the health of many, is the well-established, positive linear relationship between health status (more specifically, morbidity and mortality) and socio-economic status, which is composed of income level, educational level, and occupation status. Thus, the argument goes that healthy executives make important economic contributions to their organizations and communities as well as to their societies in a larger sense. Recent fieldwork at Alcon Laboratories clearly demonstrates a commitment to health that originates at the very top levels of the organization and permeates throughout (Gavin, Cooper, Quick, & Quick, work in progress). Every aspect of health is important at Alcon and this has resulted in an extremely efficient and productive company. As a member of the Nestlés


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family, Alcon accounts for only a small portion of their holdings but it produces over 18% of their profit. The Bad News—Managerial and Executive Disability and Sudden Death A third reason why executive health is important concerns the costs associated with managerial and executive health problems, disabilities, and/or death. Competitive pressures place managers’ and executives’ health at risk, as in the case of Texas Instruments’ CEO Jerry Junkins who died very prematurely and unexpectedly in 1996 at the age of 58 of a heart attack during a major downsizing. In addition, there can be significant organizational crises resulting from the health problems, disabilities, and deaths of managers and executives, especially senior executives and CEOs. Gilbert notes a number of significant adverse consequences for the United States during periods when the country’s chief executive (Gilbert, 2000) was suffering health problems or disabilities, either of a physical or a psychological nature (Gilbert, 1998). For example, Dwight David Eisenhower’s 1955 heart attack disabled him for several months, with adverse consequences on the economy and the discharge of his duties. In another example, Calvin Coolidge was traumatized by the early death of his son, with rather serious psychological consequences and depression preventing him from engaging his leadership and decision-making roles as the country’s chief executive. Executive health is an important issue for individuals, corporate boards, and organizations. Executive health risk factors and the consequences, both good and bad, of executive health need to be identified and acted upon.

MANAGERIAL AND EXECUTIVE PROFILES: THE EXECUTIVE CULTURE Though limited, there is empirical and biographical research as well as clinical practice that form the basis for personality profiles of managers and executives. These profiles have implications for better understanding their health and wellbeing. This section presents profiles from two dimensions, then explores the executive culture. The first dimension focuses attention on the research distinguishing the motivations of the best, and arguably the healthiest, managers and executives. The second dimension focuses attention on the deeper psychological dynamics, anxieties, and emotions of managers and executives. Managerial and Executive Motivation McClelland’s (McClelland, 1975; McClelland & Burnham, 1995) research on the needs for achievement, affiliation, and power which motivate managers


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and executives found a distinguishing need structure, arguably different from that of other organizational members or professionals. Managers and electives were distinguished by their strong motivation for power and comparatively weak motivation for affiliation. More importantly, the best managers and executives had a very high motivation for socialized power and a weaker motivation for personalized power. Socialized power is characterized by the ability to inhibit and self-control one’s use of power, a respect for others’ rights and a concern for fairness, the ability to build systems and develop people, a capacity to work collaboratively, and a commitment to the value of work per se. On the other hand, personalized power is characterized by impulsive and erratic use of power, a rude, overbearing, and exploitative manner with others, the capacity for competitiveness and defensiveness, difficult yet inspirational behavior, and a commitment to the value of efficiency. These power needs have implications for the health and well-being of an executive’s work environment and for their own health if the needs are frustrated or go unmet. Figure 6.1 includes two profiles; one for the successful executive and one for the successful middle manager. The profiles include a comparison of several characteristics in which executives differ from managers. These characteristics are: self image, need to win, risk-taking, dominance, interpersonal relations and hostility/anger. One of the strongest characteristics the typical executive demonstrates is a competitive nature. He or she is willing to take risks and stand firm when challenged on ideas or plans. This ability to hold to one’s ideas comes from a strong sense of self and confidence in one’s ideas.

Figure 6.1

Managerial and executive profiles


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Most of these characteristics are beneficial. However, there is another side to the typical executive profile, a side which may have unexpected or unanticipated adverse health outcomes. The successful executive often has higher levels of hostility and a higher need to dominate those around him or her than does the typical middle manager. In addition, the interpersonal skills of the executive are often lower than those of the manager. This combination of higher hostility and fewer interpersonal skills to communicate and work through the hostility constructively can take a toll of the health of the executive, as well as those around (see for example the lethal problem of unverbalized hostility in the case of Billy Budd [Melville, 1962]). House’s (House, Spangler, & Woycke, 1991) research with US presidents draws particular attention to the necessity for managers and executives to display high activity inhibition. Put another way, the necessities to manage and cope effectively with frustration and delay need gratification. A manager’s or executive’s inability in this aspect of their motivation and behavior can have disastrous consequences. This is illustrated in the case of the vice-chairman of a fast food chain who, in a most public setting, lost his temper in response to a comment made by his wife, turned to her, and struck her. While the corporate chairman terminated him on the spot as would be expected, the incident raises the question of what emotional buildup or conflicts were operating within the vice-chairman and what feelings within himself he had failed to understand. Managerial and Executive Psychology If McClelland provides a clear picture of managerial and executive motivation, then Kets de Vries (Kets de Vries, 1995) offers a deeper understanding of their psychology with the caveat that a clear knowledge of the psychological underpinnings of behavior can be difficult to come by even for the experts. Managers and executives are predisposed to action, not to reflection or introspection. Further, they have a notoriously underdeveloped capacity for understanding and dealing with emotions, their own or others. However, as Kets de Vries points out, the manager or executive who begins to gain such insight and understanding may overcome obstacles that place him or her at risk along with the organization. For example, Henry Ford’s psychological and emotional makeup handicapped his company and with a deeper knowledge of himself he might have overcome the handicap. While many executives and managers have a high degree of status sensitivity and ambition, there are those who might be identified as organizational heroes because of their capacity to metabolize the emotional pain and suffering endemic to organizational life (Frost & Robinson, 1999). Unfortunately for these heroic managers and executives, there are health risks associated with their actions. Suicide is the extreme case of psychological disturbance among executives. Levinson (1963) explored the psychodynamics of suicide from a psychoanalytic point of view. So, for example, if Admiral Jeremy Boorda, US


194 INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Chief of Naval Operations in 1996, had a better understanding of his feelings, fears, and emotions, he might not have taken his own life on 16 May of that year (Quick, Quick, Nelson, & Hurrell, 1997). Only a small number of managers or executives, most of the rest being reluctant, ever ask themselves why they act the way they do. As a result, most fail to understand their own managerial behavior and that of others. Most managers and executives are sensitive to numbers, figures, and objects while being emotionally distant from the people with whom they work. There are exceptional executives who are able to form comfortable emotional ties and bonds with their work teams, yet these are the exception and not the rule. The Executive Culture Schein (1996a,b) has developed a profile of the executive culture that is rooted in this psychodynamic understanding of executive psychology and behavior. This executive culture spans organizations as opposed to being local within an organization. Schein (1996a,b) points out that entrepreneurs (e.g., Lee Turburn of Flashnet), founders of organizations (e.g., Herb Kelleher at Southwest Airlines), and members of owning families (e.g., John D. Rockefeller Jr) are more diverse and less typical of the cultural profile developed for promoted CEOs and executives. The assumptions of the executive culture are presented in Table 6.1. The picture that emerges from these assumptions is remarkably resonant with the psychological profile that Ketz de Vries and Levinson paint as well as the distinguishing characteristics in Figure 6.1. The struggle for many executives is around personal issues, interpersonal relationships, and emotional life. On the one hand they cannot escape these inevitable aspects of the human condition and on the other hand they are not attuned to their emotional lives in a way to become familiar and comfortable with the emotional flow of life. Warren Buffett’s (Lowenstein, 1995) personal journey in this dilemma is an interesting case in point. Schein’s financially focused embattled lone hero depiction not only resonates with observation and experience, but highlights the insular nature of the executive culture and its lack of openness to those not perceived in some way as peers of equal stature in their own professional right. With this said, however, there is real danger in drawing conclusions about specific managers or executives based upon assumptions, stereotypic profiles, or the insular nature of the culture. There are concerned and caring executives who somehow achieve a balance between a focus on the financial bottom line and the human side of the enterprise, of which McGregor (1960) wrote eloquently several decades ago. Gordon Forward exemplifies an executive who fashioned a career around McGregor’s ideas, as well as Maslow’s before him (Quick, Nelson, & Quick, 1990). Even given the exceptions and outliers, there is value in understanding the executive culture for those concerned with the health of managers and executives.


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Assumptions of the executive culture

Financial focus ● Executives focus on financial survival and growth to ensure returns to shareholders and to society ● Financial survival is equivalent to perpetual war with one’s competitors Self-image: The embattled lone hero ● The economic environment is perpetually competitive and potentially hostile, so the CEO is isolated and alone, yet appears omniscient, in total control, and feels indispensable ● Executives cannot get reliable data from subordinates so they must trust their own judgment Hierarchical and individual focus ● Organization and management are intrinsically hierarchical; the hierarchy is the measure of status and success and the primary means of maintaining control ● The organization must be a team, but accountability has to be individual ● The willingness to experiment and take risks extends only to those things that permit the executive to stay in control Task and control focus ● Because the organization is very large, it becomes depersonalized and abstract and, therefore, has to be run by rules, routines (systems), and rituals (‘machine bureaucracy’) ● The inherent value of relationships and community is lost as an executive rises in the hierarchy ● The attraction of the job is the challenge, the high level of responsibility, and the sense of accomplishment (not the relationships) ● The ideal world is one in which the organization performs like a well-oiled machine, needing only occasional maintenance and repair ● People are a necessary evil, not an intrinsic value ● The well-oiled organization does not need people, only activities that are contracted for Reprinted from Three cultures of management: The key to organizational learning, E. H. Schein, Sloan Management Review, 38(1), 9–20, by permission of the publisher. Copyright  1996 by Sloan Management Review Association. All rights reserved.

FRAMEWORKS FOR MANAGERIAL AND EXECUTIVE HEALTH We begin this section with a brief discussion of the four key dimensions of executive health, which are physical, psychological, spiritual, and ethical. We then go on to discuss the existing frameworks for managerial and executive health, many of which give consideration to the dimensions of health noted here. This section also gives consideration to appropriate managerial and executive stress theories as they relate to health. This seems appropriate in light of the fact that stress is directly implicated in four of the ten leading causes of death in the industrialized countries and indirectly implicated in a further three leading causes.


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Four Dimensions of Managerial and Executive Health

We define managerial and executive health along the physical, psychological, spiritual, and ethical dimensions (Quick, Gavin, Cooper, & Quick, 2000). While the physical and psychological dimensions of health are traditionally accepted, the spiritual dimension has gained recent attention. Most health models do not include an ethical dimension. However, it seems highly appropriate given Hippocrates’ statement of an ethical code, a variation of which is still taken today as an oath by physicians. Therefore, we include ethical character as a fourth and equally important dimension of health. Physical dimension Biological inheritance, diet and nutrition, physical fitness, and a variety of other factors influence physical health. Physical health has, in recent history, often been defined in terms of freedom from disease and illness. Complete physical health includes cardiovascular fitness, musculoskeletal strength and muscular flexibility. These complementary aspects of physical health collectively serve as a foundation for an individual. Psychological health Psychological health is often defined as the ability to deal constructively with reality, the capacity to adapt to change, the capacity to love, and the ability to direct one’s emotional energy in creative and constructive outlets. Consideration should be given to a manager’s or executive’s cognitive and affective, or emotional, functioning to assess psychological health. Spiritual health By spiritual health, we are not referring to a religious orientation nor to a particular, or in fact any, faith-based system of belief. While greater attention is being given to the spiritual aspects of healing in many health care delivery systems, spiritual health continues to be a somewhat elusive dimension of a manager’s or executive’s overall health and well-being. Ethical character The fourth dimension is ethical character, which completes the foundation for managerial and executive health. Character is who you are when no one is watching. Character is the personal code that provides the strength and insight to make the ethical and right decisions, especially in situations where there are no clear cues for what is the right action to take. Managerial and executive character provides the strength to make right decisions even when faced with the possibility of immediate negative feedback.


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Frameworks for Managerial and Executive Health There are two broad categories of frameworks for managerial and executive health. These come from: (1) preventive medicine, and to a lesser extent its roots in public health and treatment intervention, which gives strong emphasis to physical health and well-being; and (2) the psychoanalytic and mental health tradition, which gives strong emphasis to psychological health and wellbeing. No existing frameworks have been identified for managerial and executive health which give primacy to spiritual health or to ethical character. Preventive medicine frameworks The largest number of frameworks for managerial and executive health come under this heading, and are represented also by executive health programs featured in a wide range of US medical schools and health clinics. While most of these frameworks give primacy to physical health, many incorporate features of psychological and spiritual health. Few give consideration to ethical character, an exception being our own model presented elsewhere. Executive health model. The executive health model in Figure 6.2 is defined along the four health dimensions previously discussed and emphasizes two sets of factors that influence health. These two factors are strength factors and health risk factors, the framework coming directly from preventive medicine. The original model identified four strength factors (i.e., physical fitness, executive network, stress management skills, and balanced investment in life activities), and four health risk factors (i.e., Achilles Heel, loneliness of command, work demands and overload, and crises and failures) based on a review of the literature. However, these were not intended as a delimiting set of either strength factors or health risk factors. Cooper Clinic model. The Cooper Clinic model is positioned on a prevention framework with the distinctive centerpiece being the pioneering aerobic fitness intervention activities of Kenneth Cooper. The Cooper Institute for Aerobics Research offers behavioral science and health promotion activities for managers and executives in a wide range of organizations. In addition to the aerobics fitness centerpiece, the Cooper Clinic model emphasizes health risk assessments and diagnosis along with emphases on diet and emotional balance as bases for achieving optimal health and well-being. Duke executive health program. Part of the Duke Center for Living and Duke University Health System, this program has a strong emphasis on comprehensive health assessments. The standard health assessments cover health, fitness, and nutritional evaluations by physicians and stress management evaluations by a health psychologist. While a variety of optional diagnostic features are


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also offered, they are all of a physical nature in contrast to a clinical psychological nature. Johns Hopkins executive health program. Part of the Johns Hopkins Health System, this program is designed for corporate executives and provides a comprehensive health assessment and preventive strategy. The program has a dual emphasis on the needs of executives and their families. Psychological evaluations and assessments are not featured in this program. Mayo Clinic executive health program. This program emphasizes comprehensive medical evaluations anchored in the traditional Mayo diagnostic expertise and drawing on the most current knowledge in preventive medicine. The program draws on a comprehensive medical history of the executive in addition to basic screening and laboratory tests. Cleveland Clinic executive health program. This program is part of The Cleveland Clinic’s Center for Corporate Health, which also includes programs in behavioral health, health maintenance, industrial hygiene, ergonomics, and occupational health. This program has an examination emphasis for the early detection and prevention of health programs in executives. Psychoanalytic and mental health frameworks While the preventive medicine frameworks have a heavy emphasis on physical health, diagnostic screening, early detection, and early treatment intervention, the psychoanalytic and mental health frameworks have an emphasis on an executive’s psychological health. The two primary frameworks in this area are (1) the Menninger model for mental health, a psychoanalytically based model which was the springboard for (2) Harry Levinson’s own psychoanalytic model of mental health and later executive stress. Menninger model for mental health. The Menningers did pioneering work on the topic of mental health in the early twentieth century, based on a psychoanalytic foundation and evolved into a therapeutic prescription for the treatment of patients, to include managers and executives. The core of the Menninger model is seven criteria of emotional maturity: (1) the ability to deal constructively with reality; (2) the capacity to adapt to change; (3) a relative freedom from symptoms that are produced by tensions and anxieties; (4) the capacity to find more satisfaction in giving than in receiving; (5) the capacity to relate to other people in a consistent manner with mutual satisfaction and helpfulness; (6) the capacity to sublimate, to direct one’s instinctive hostile energy into creative and constructive outlets; and (7) the capacity to love. From this foundation, the Menningers have developed the Menninger Leadership Center through which executive, organizational, and family


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business consultations are conducted. The executive consultations are a form of executive coaching using the core didactic, psychodynamic model at the center of Menningers. Levinson’s executive health model. Levinson (1975; 1981) used the Menninger model as a springboard for his own thinking and stayed within rather traditional psychoanalytic theory as his approach to the mental health of managers and executives. His early criteria for mental health grew out of the Menninger model and were slightly different. His five criteria were that mentally healthy people: (1) treat others as individuals; (2) are flexible under stress; (3) obtain gratification from a wide variety of sources; (4) accept their own capacities and limitations; and (5) are active and productive. Levinson used his mental health model to address problems of suicide, burnout, depression, and stress among executives. Levinson’s psychoanalytic theory of stress, which focuses on the discrepancy between the individual’s ego ideal and self-image, is one aspect of his overall mental health model. Theories of Managerial and Executive Stress Given the direct and indirect contributions which stress makes to a wide variety of fatal and nonfatal health problems, it is appropriate to briefly discuss relevant theories of managerial and executive stress. In addition to Levinson’s psychoanalytic theory of stress, there are five other stress theories that have been used with managers and executives. We briefly discuss each of these theories. Homeostatic theory Homeostatic theory is based in Walter B. Cannon’s (Cannon, 1932) original model of the psycho-physiology of the stress response. Benson (1974; 1975) applied the theory with managers and executives through the relaxation response as a counter to the stress response. At its core, this theory assumes stress to be an arousal function for which the calming response of relaxation is the antidote. Within this theory, Selye’s (Selye, 1976) research drew attention to stress’ contribution to the diseases of maladaptation. Selye’s general adaptation syndrome extended Cannon’s homeostatic theory by adding the stages of resistance and exhaustion which followed the elicitation of the stress response, also called the alarm reaction by Selye and the emergency response by Cannon. Occupational stress theory Cooper (Cooper & Marshall, 1976; Cooper & Melhuish, 1980) and his associates developed an occupational stress model for managers and executives


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whose primary distinguishing features are an emphasis on identifying the unique sources of stress for a given occupation. Hence, every occupation and every job can have an identifying stress fingerprint. For example, the sources of stress for electrical industry executives would be expected to be significantly different from the sources of stress for senior bomb disposal officers in Northern Ireland. In addition to attention to organizational strain, Cooper’s theory drew attention to the wide range of health problems associated with work stress. Organizational stress theory Kahn and his associates’ (Kahn, Wolfe, Quinn, Snoeke, & Rosenthal, 1964) social psychological research on organizational stress focused primarily on the problems of role conflict and ambiguity within organizations. While they examined the organizational costs for these problems, they also gave particular attention to the psychological and interpersonal problems people at work might experience in relationship to these stresses. This stress theory framework has been especially useful in examining the work–home conflicts which managers, executives, and their families experience as a result of multiple and competing demands. Person–environment fit theory Evolving out of Kahn’s social psychological research on organizational roles, Edwards (Edwards, 1996) brought particular attention to person– environment fit theory in the domain of stress. The theory gives primary attention to the ways in which a person’s skills and abilities clearly match a defined organizational role at work. There are variations on this basic person– environment fit model, such as examining the matching of a person’s values and beliefs with their organizational environment. Preventive stress management theory Quick and Quick (Quick & Quick, 1984) translated preventive medicine concepts into an organizational context, overlaid them on a stress process model, and developed a theory of preventive stress management (Quick, Nelson, & Quick, 1990). The central concepts in the theory rest on primary, secondary, and tertiary (Quick, Barab, Fielding, Hurrell, Jr et al., 1992) strategies which, respectively, focus on the sources of the stress, the response to the stress, or symptoms of distress. These notions of prevention may be applied at either the organizational or individual level. Most organizational preventive stress management is of a primary or secondary nature while individual preventive stress management covers the spectrum of primary, secondary, and tertiary prevention (Quick et al., 1997), often with a heavy emphasis on secondary prevention activities in American culture.


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 The Duke Executive Health Program

We have briefly reviewed a wide range of frameworks for managerial and executive health as well as theories of managerial and executive health. Here we take a look at one leading program in some depth. The Duke Executive Health Program was chosen by General Motors Corporation as a center of excellence in executive health for GM’s major, longitudinal study of 3500 of their executives (Mayo, Mass General, and Johns Hopkins were the other three centers of excellence chosen by GM). In addition to GM, Wendy’s International, Corning, Kuwait Food Company, and John Deere are among the organizations that rely on the Duke Executive Health Program. The Duke program has three distinguishing features. Distinguishing features Duke’s program is distinguished by: (1) its integration of the four major components of the comprehensive health assessment at one site, the Center for Living, within the Duke University Medical Center in Durham, North Carolina; (2) its strong practice foundation in preventive medicine; and (3) Executive Escapes. Duke’s Executive Escapes are an innovative and attractive delivery mechanism for their comprehensive health assessment and intervention program. The core of Duke’s preventive medicine orientation is a fourcomponent health assessment, as outlined in Table 6.2, which is a comprehensive mind–body evaluation by physicians, clinical health psychologists, registered dieticians, and exercise physiologists. This comprehensive approach recognizes the multidimensionality of managerial and executive health while offering medical, behavioral, and psychological intervention for lifestyle change. Table 6.2

Comprehensive health assessment

Medical evaluation ● Medical history ● Laboratory tests Psychosocial risk factor screening ● Risk factor assessment ● Clinical health consultation Nutrition assessment ● Dietary patterns and lifestyle issues ● Three-day food journal Fitness assessment ● Physiological exercise tests ● Frequency, duration, and intensity prescribed


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Medical evaluation. The first component of the comprehensive assessment is the medical evaluation which begins with the completion of a complete medical history prior to coming to Duke. Once on site, the executive completes a physical exam and the laboratory tests included in Table 6.3. Beyond this battery of tests, Duke offers additional services upon request. These include flexible sigmoidocopy for colon cancer or other abnormalities of the lower large intestine, hemocysteine test for coronary artery disease, eye examination, and HIV test. For women executives, additional services include mammography, gynecological examination, pap smear, quantitative digital radiography to test bone density for osteoporosis, and abdominal/pelvic ultrasound. Table 6.3 ● ● ● ● ● ● ●

Medical evaluation

Physical exam Blood chemistry and hematology profile Chest X-ray Electrocardiogram (ECG or EKG) Exercise stress test Stool Guaiac test Body fat assessment

Psychosocial risk factor screening. The second component is the psychosocial risk factor screening; the four factors are identified in Table 6.4. Stress, hostility, depression, and social support have all been shown to be health risk factors (Beck, Rush, Shaw, & Emery, 1979; Cohen, Kamarck, & Mermelstein, 1983; Cook & Medley, 1954; Seeman & Berkman, 1988), and in particular may be underassessed in executives (Kline & Sussman, 2000; Robinson, 1998). Depression has specifically been identified as a major risk factor for suicide, as in the case of Admiral Boorda, who as Chief of Naval Operations in 1996 took his own life, as well as having adverse effects on productivity (Kessler & Frank, 1997). Table 6.4 ● ● ● ●

Psychosocial risk factor assessment

Perceived stress Hostility/cynicism Depression Social support

Nutrition assessment. The third component is the nutrition assessment that includes a review of typical dietary patterns of the executive and executive lifestyle issues that affect food choices. Diet has been demonstrated to play a role in health as well as in a wide range of health disorders, from obesity to cardiovascular disease. This is done under the supervision of a registered


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dietician and aimed at fitting health nutrition into an executive’s active lifestyle. Fitness assessment. The fourth component is the fitness assessment along the three dimensions of the fitness triangle listed in Table 6.5. An exercise physiologist uses the assessment as the basis for creating a detailed prescription outlining the frequency, duration, and intensity of fitness activities selected by an executive. A customized plan with training recommendations for each of the three sides of the triangle gives an executive a blueprint for action. Table 6.5

The fitness triangle

● Flexibility ● Cardiovascular ● Strength

Referral recommendations The Duke Executive Health Program is designed for the fundamentally healthy executive who does not have major medical or psychological disorders. The program is capable of taking this executive to the leading edge of health, fitness, and activity. The program is also capable of making referral recommendations where major medical problems are identified through the assessment process. While a medical history is taken, a comparable psychological history is not taken nor are major life change events assessed. During the clinical health psychology feedback sessions, other psychological or developmental issues may arise that can be addressed or, again, referred to appropriate specialists. Overall, the Duke program is an excellent one.

WHAT WE KNOW ABOUT MANAGERIAL AND EXECUTIVE HEALTH Concern for managerial and executive health has been well documented throughout the popular press and in the emerging research literature, although to a lesser extent in the latter. Attaining and safeguarding the health of managers and executives has become so important to organizations that as far back as 1994 comprehensive physical exams were being offered as an executive benefit offered by over 85% of companies (Schellhardt, 1994). It has become clear that the health of top management people is of significant importance to the effective and profitable continuation of the organization. However, this concern for the well-being of managers and executives has only recently begun to manifest itself in the medical and academic research literature. Further, we believe we are only seeing the tip of the iceberg.


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Epidemiological Research The concern for the health of managers and executives has resulted in a significant amount of epidemiological information being gathered. With most organizations offering these extensive physical exams to upper-level employees, thousands of men and women are taking advantage of this benefit. Unfortunately until recently, very few if any attempts were made to collect these data in an effective, systematic method that allowed these men and women to be evaluated collectively. Personal physicians are conducting some of the medical exams; however, many of the managers and executives eligible for this health benefit are going to specialized clinics like the Cooper Clinic. The Cooper Clinic has been providing comprehensive physical assessments since 1970. They have conducted thousands of exams on individuals from all walks of life, but a large number have been on managers and executives. Although this information is available, there has been no attempt to isolate the data on executives and evaluate their health as a group. Like the Cooper Clinic, the British United Provident Association (BUPA), the leading independent health and care organization in the UK, has recognized the need for specific information on the health of managers and executives. Working with the University of Manchester Institute of Science & Technology (UMIST), BUPA is actively evaluating research designs, which will provide this important information. Empirical Research The challenge facing both the Cooper Clinic and BUPA is the organization of archival data. The study of General Motors mentioned earlier will effectively address this data analysis problem by designing the study from its inception to collectively examine executives’ health. The data collected during this period will be examined at the individual level for the benefit of each person but also at the group level to have some of the first empirical health information about executives. Biographical Profiles While we have little in the way of epidemiological and empirical research data, history does offer us an opportunity to look at executives and evaluate their health from a physical, psychological, spiritual and ethical perspective. We may not always achieve a full understanding of all areas of the individual’s health but we can often gain valuable insight. One area in which this type of research has been successful is in a study of the presidents of the United States. Research by Robert Gilbert (1998) looks at the impact the health of the top-ranking executive has on the country. Gilbert uses official records and


206 INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 interviews with White House physicians to evaluate the health of the president, his effectiveness and the ramifications to the country. He also looks at the impact of succession and the 25th Amendment of the constitution. When President Clinton injured his leg in a fall the decision was made to do the required surgery under local anesthetic so the president could remain conscious during the entire procedure and the vice-president would not have to be made acting president. While the results of a unhealthy or disabled president may be more far-reaching than those of an unhealthy executive, the comparisons and risks to the organization and its stakeholders are obvious. Succeeding through Strength Winston Churchill The psychological health of an executive is critically important for logical and effective decision-making. While the impact of sound decision-making is critical in an organization, nowhere is decision-making more important than with a political leader during wartime. Winston Churchill is just such an example. Churchill was the prime minister of England during a time when the future of the world was being determined. One obstacle stood in the way of Churchill effectively leading England: clinical depression. Throughout his adult life, Churchill was plagued with episodes of depression (Soames, 1998). By carefully managing these episodes, Churchill was able to rise above this problem and lead the country to victory in World War II. He was so successful in managing this risk that during his time in office few knew of the psychological problems he faced. Katharine Graham Katharine Graham is another example of a leader who used her personal strength to rise to the occasion and assume a challenge presented to her. The sudden and unexpected death of Phil Graham left his wife with one of the largest and arguably most respected newspapers in the country (Graham, 1997). Although the Washington Post was originally owned by Katharine’s father, Phil Graham had managed the paper since their marriage and Katharine had remained at home, raising the couple’s children. By the time of her husband’s suicide, Katharine had forgotten any idea of a career in journalism. She had become the wife of a successful man and spent her time in the role of wife and mother. With his death, Katharine had to either lose the Post, which had been in the family for years, or muster her courage, face her fears and try to run the paper herself. Not only did Katharine Graham rise above her fears, she became one of the most successful and respected journalists in the country.


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John P. Morgan, Jr Many executives achieve professional success and financial wealth. However, this accomplishment is often at the cost of other aspects of their lives. Many executives sacrifice their relationship with family and friends to myopically focus on career achievement. They spend little to no time away from work and often lose any interpersonal skills they ever possessed. Relationships resolve around professional success and achievement. Growing up, J.P. Morgan, Jr watched his father live a flamboyant and extravagant life (Wheeler, 1967). He watched him virtually ignore his family and focus all his attention on work (Forbes, 1981). He was always in the spotlight, displaying behaviors that the young J.P. vowed never to repeat. Morgan was successful in breaking the cycle of his father’s behavior. J.P. Morgan, Jr, while just as professionally successful as his father, led a life that was also committed to family and friends. He occasionally displayed his father’s quick temper but quickly gained control. He developed his interpersonal skills and made them one of his greatest strengths. Andrew Carnegie Healthy individuals go beyond the traditional ideas of physical and psychological health. They recognize that achieving spiritual and ethical health requires going beyond the inclusion of one’s own need and considering the needs and concerns of others. Men like Andrew Carnegie achieved this goal by using their financial success not only for the benefit of themselves and their families but also for the benefit of others. One of the central themes in Andrew Carnegie’s life was sharing the wealth he had accumulated. He expressed his feelings about the attainment of wealth in an article entitled ‘Wealth’ which appeared in the North American Review (1899). For Carnegie, individuals who attained great financial success were only stewards of the money and owed something back to their community. He rose above the needs of self to see and address the needs of others. In recognizing that he had more money than he or his family could ever need or use, Carnegie put the money to use to better the lives of those in his community. Through the Carnegie Foundation, he built libraries and established support funds to financially help the families of individuals who died or were injured in a heroic act. By the end of his life in 1919, Andrew Carnegie had donated more than $350 million to make the lives of those around him better (Wall, 1992). Bill Gates A contemporary executive who shares Carnegie’s insight to wealth is Bill Gates. As the richest man in the world, Gates has seen his opportunity to give


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back to the country that helped him earn his fortune. Through the Microsoft Corporation, Gates has placed computers into many schools and libraries. The foundation found it fitting to give back to the community through technology, the source of its wealth. Gates and his wife, Melinda, have accepted the personal challenge of addressing world health. Though contested by his peers, Gates recently stated that technology was not the answer to all the world’s problems. Children dying of diseases and malnutrition didn’t need a computer, they needed food and medicine. In this vein, the Gates have donated over $5.5 billion of their own personal fortune to provide medical help and research for the underprivileged of the world (Hafner, 1999). Joseph P. Kennedy Another mechanism through which executives build strength is through networking with peers in other high-level positions. Because of their elevated status, many executives experience isolation from those who were their confidants. The process of networks allows executives to have dialogues with others about their concerns and conflicts. It allows them to tap into the experiences of others and obtain valuable feedback on their most current issues. However, like most processes, networking can be abused. A good example of abuse of networking is Joseph Kennedy. Kennedy was an individual whose unrelenting drive and ambition led him to abuse the influence and power of his strong network of associates. Kennedy had grown up in an environment that approved unhealthy use of political power. His father, Patrick, had been an influential member of the Boston Irish community and had used his influence over his friends and associates to gain a stronghold in Boston’s Ward Eight (Whalen, 1964). These same lessons came from Kennedy’s father-in-law, John F. ‘Honey Fitz’ Fitzgerald. And the abuse of power was passed on to Joseph Kennedy’s sons at an early age. When Joe Jr was concerned about not lettering his last year at Harvard, Kennedy used his ‘persuasion’ and he and his friends convinced the coach to allow Joe Jr to play for one inning to ensure his lettering (Kessler, 1997). Overcoming Risks and Problems John D. Rockefeller, Sr Often when executives are faced with overcoming risks or problems, they must hit bottom before they truly face the need for change. Such was the case with John D. Rockefeller. In the early days of his career, Rockefeller was so worried about losing his wealth that he alienated himself from everything and everyone. He trusted no one and enjoyed nothing that his wealth could buy. He lived obsessed about protecting what he had accumulated. He had even


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managed to estrange his own brother with his miserly and distrusting nature (Carnegie, 1984). This obsession plagued Rockefeller through his mid-fifties. By that time, he had such digestive problems he could hardly eat anything. Even keeping milk and soda crackers down was a challenge. He had also begun to lose all of his hair. The doctors had little hope of his survival if he did not change his outlook. At this point Rockefeller made a decision to stop worrying about losing his money and to enjoy it himself and to share his wealth with others. From that point on Rockefeller had a new life. He overcame his fears and found comfort and true joy in sharing what he had gained. Instead of dying alone at 53, Rockefeller lived happily to 98 and used his wealth to improve the lives of millions around the world. Michael Eisner The impact of executive health is not simply felt by the individual and his or her family. The health of an executive can have serious ramifications for the organization as well. One organization that faced this crisis twice is the Disney Company. When Wall Street heard about Walt Disney’s cancer, a substantial drop in stock price occurred (Worrell, Davidson, Chandy & Garrison, 1986). Fifteen years later, an article in Wall Street Journal questioned if the company had ever recovered from Mr Disney’s death (1982:1). The loss of Mr Disney is not the only crisis in top management that the company faced. Michael Eisner joined Disney in 1984. Within 10 years, Eisner and the late Frank Wells had returned Disney to the profitable company it once was. Then in July 1994, the announcement that Michael Eisner had undergone quadruple by-pass surgery brought a drop in the Disney stock price. Fortunately Eisner had a quick recovery and within two days of his return, the stock price rose by $5 per share and continued to rise (Huey, 1995). John Curtis, Jr While many executives succeed in overcoming their problems, some do not have the ability or strength to fight and ultimately fail. John Curtis, Jr, CEO of Luby’s Cafeterias, saw his responsibilities as insurmountable and took his life in the face of such pressure. Curtis had only been in the CEO position for three months when he was found in a cheap motel where he had slit his own throat (Pedersen, 1997). From all outside appearances Curtis had the ideal life. He was married to his high school and college sweetheart and they had three children. Curtis was active in his church and civic organizations (Austin American-Statesman, 1997). He had been with Luby’s for 18 years and was groomed to take over as CEO. The organization was doing well and nothing seemed as if it should be


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causing the 49 year old undue pressure. However, the pressure was too much according to Curtis’s 24-year-old son Daniel. ‘I think my father just didn’t think he could handle the pressure of being a CEO. He took decision-making personally,’ Daniel said (Herrick, 1997). Robert S. McNamara Sometimes, leaders and executives are successful in effectively coping with and overcoming their problems only to transfer the problem to their spouse. When an individual facing a problem or crisis effectively copes with the physical and psychological outcomes of the stress but the spouse of that person does not, crossover effects can be seen (Westman & Etzion, 1995). Robert McNamara is a perfect example of effective coping and crossover stress. During the Vietnam conflict when the decisions made by McNamara were sending thousands of young men to their deaths, he seemed to cope with the stress extremely well. Many marveled at his ability to remove himself from the emotional side of the work he was doing. Some felt he went too far in removing himself and felt he had become completely dispassionate about the number of lives his decisions were costing the country (Byrne, 1993). What many at the time did not know, however, was that McNamara’s wife was suffering from severe stomach ulcers brought on by her husband’s job. Dimensions of Health Lee Iacocca Not all executives face serious challenges in attaining the four dimensions of health. Many begin their careers aware of the need to safeguard the physical, psychological, spiritual and ethical well-being that they have attained. And many continue through their career without ever losing the healthy balance they worked so hard to achieve. Others face serious life crises that cause them to lose focus and get out of balance. The crisis faced by Lee Iacocca was the death of Mary, his wife of 37 years (Iacocca, 1988). After Mary’s death, Iacocca seemed to be searching to replace the void in his life. Within the next 11 years, he married and divorced twice. Both marriages were to younger women and neither lasted for more than 3 years. Iacocca has remained single since his last divorce in 1994. While neither marriage succeeded in rebuilding the balance, he seems to have found his stability on his own. Sir John Templeton An example of an individual who experienced the tragic loss of his wife of many years is John Templeton. However, in Templeton’s case, instead of


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throwing him out of balance this tragedy helped him recognize the need for balance in his life. Sir John realized after the death of his wife that even though we may get things wrong in the first part of our lives, we have an opportunity to correct them (Berryessa & Kirzner, 1988). After spending the first half of his life working long, hard days on Wall Street, Templeton, like John Rockefeller, decided that there was something missing in his life. In 1987, Sir John established the John Templeton Foundation, which utilizes his personal funds to support over 100 programs worldwide (www.templeton.org). The Foundation, through the personal guidance of Templeton, has added significantly to the monetary value of the Nobel Prize and other programs which promote the foundation primary goals. These goals include: stimulating serious links between science and all religions, promoting appreciation for character-building, and encouraging appreciation for the benefits of freedom.

WHERE DO WE GO FROM HERE? The somewhat insular nature of the executive culture has led to very limited epidemiological research data on the health risks and problems of managers or executives as key groups within organizations. Individual practitioners, such as Leonard Moss (1981), working as a psychoanalytic consultant to Mobil Oil executives during the 1970s and 1980s, may develop an appreciation and understanding of local executive and managerial cultures within an organization. However, the systemic body of knowledge is limited. The biographical data that we have reviewed offers a much deeper appreciation of individual executives’ lives and health. Therefore, our first suggestion is that more organizations follow the lead of General Motors in their major longitudinal study of 3500 of their top managers and executives through Duke University Medical Center, Harvard Medical School, the Mayo Clinic, and Johns Hopkins University. The Duke program model that incorporates medical, psychological, and as appropriate or called for, spiritual help, has much to offer in adding to our knowledge in the field. Beyond this suggestion, there are two other categories of suggestions we offer for the future. The first category of suggestions applies to organizations and the second category applies to individual managers and executives. What Can Organizations Do? Our review of the literature and evidence suggests three recommendations for organizations concerning the health of their managers and executives. These are to: (1) proactively identify and manage known health risks; (2) emphasize prevention and health risk screening; and (3) encourage and endorse individual health enhancement and disorder prevention programs.


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Known health risks arise in two forms, the first environmental and the second personal. There is an increasingly well-known set of health risk factors which are based in either the physical environment or the psychosocial environment. Identifying and managing known health risks is not necessarily highly complicated. Management may include simple actions such as avoidance of physical danger. For example, the CEO of a small company in the scrap metal industry who was decapitated by putting his head in a shredding machine and then telling the operator to turn it on was simply being foolhardy. Paul Chapparone’s elaborate personal security systems are born of his experience of being held hostage as an EDS executive in Tehran, Iran, in the 1970s. At a more personal level, organizations should manage the health risks of key executives, just as the federal government is systematically monitoring the health of Vice-President Richard Cheney because of his known cardiovascular health risks. Organizations can also benefit from the use of preventive medicine and public health with their managers and executives by emphasizing prevention and health risk screening. Health risk screening, which is a key basis for early intervention, is central to eliminating, correcting, and/or managing health problems before they cause serious and/or irreversible problems for a manager, an executive, or the organization. Annual medical and psychological examinations or health checks make economic sense for organizations to fund on behalf of their managers and executives. Finally, organizations can encourage a norm of health enhancement and disorder prevention plans on the part of their managers and executives. The executive culture is well attuned to the management of a portfolio of financial assets for the health and success of the enterprise. Managers and executives are accustomed to having a plan or plans for ‘managing the business.’ In a similar fashion, managers and executives should be encouraged to have a plan or plans for managing their health. Their physical and psychological health are key assets for the business and, as we have previously seen, there are substantive costs and losses for the business especially when a key executive or manager is disabled or dies unexpectedly. What Can Individual Executives and Managers Do? In addition to the actions which organizations can take in their own interests as well as in the interests of their managers and executives, there are several actions which individual managers and executives may take on their own behalf. Three recommendations in this regard are to: (1) accept personal responsibility for their health; (2) set examples for their peers and subordinates; and (3) look for and invest in the positive, without denying risks. Managerial and executive health concerns in the final analysis are matters of personal responsibility. A person cannot be saved from himself or herself. For that reason, individual managers and executives should accept personal


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responsibility for their own health. This acceptance of responsibility includes the development of a personal health plan (this does not have to be an elaborate or written document) with both actions and behaviors to do, such as physical exercise, as well as those to avoid, such as overeating. The acceptance of personal responsibility is partly a matter of self-interest and a matter of the acceptance of responsibility for others. Given the many people in their personal and professional lives who depend upon a manager or executive, it is also for the benefit of these others that one should accept personal responsibility for their health. One of the central learning mechanisms that all people engage in is learning through observation and example. We have illustrated with the biographical sketches above some of the lessons about health, or health problems, from which others might learn. At a much more direct and personal level, we learn both good and bad patterns of behavior from those to whom we are most close, either mimicking or mirroring that which we see. For this reason and because managers and executives are role models for so many others, they can benefit many through the setting of good examples. By modeling healthy patterns of behavior, managers and executives have far wider reaching positive effects than those to their own health. By the same token, the reverse occurs when managers and executives engage in adverse or unhealthy patterns of behavior. Concluding Comment Managers and executives are on the dawn of a new millennium that is characterized by a dramatic period of globalization in business and industry, with the associated competitiveness that places high levels of pressure on them. Managerial and executive health is one of the key assets organizations and individuals have in succeeding on this new competitive landscape.

ACKNOWLEDGEMENTS The authors express their appreciation for three sources of support for this research. First, BUPA, the largest medical insurance company and private hospital group in the United Kingdom, has substantially funded Cary L. Cooper’s research group at University of Manchester Institute of Science & Technology (UMIST). Second, James Campbell Quick at The University of Texas at Arlington and Jonathan D. Quick at the World Health Organization appreciate a trust gift given to support this and related executive health research. Third, James Campbell Quick thanks The University of Texas at Arlington for the Faculty Development Leave during which this research was completed. The authors thank David Sampson, Christopher Shook and Kevin Waters, MD for helpful comments and suggestions on the development of this article.


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Chapter 7 THE INFLUENCE OF VALUES IN ORGANIZATIONS: LINKING VALUES AND OUTCOMES AT MULTIPLE LEVELS OF ANALYSIS Naomi I. Maierhofer, Boris Kabanoff and Mark A. Griffin Queensland University of Technology, Australia

OVERVIEW Values research is diverse. Disciplines such as psychology, management, sociology, anthropology, and philosophy have each addressed the topic over extended periods of time. Values are also discussed widely in popular and professional management publications. The downside of such a pervasive construct is that each area has its own definitions and orientations toward values, often with different research aims. The purpose of the present chapter is to review the recent literature on values in culture behavior. Our primary interest is the influence of work values in organizations and their relationship to a range of organizationally relevant outcomes. We distinguish between work values and other types of values. Our review emphasizes the importance of work values. Our starting point is the nature of values, beginning with the meaning of the construct itself. We review the issues of value specificity and the level of abstraction, which have received attention recently. The next part of the chapter addresses the multilevel nature of values in organizations. The distinction between individual, group, and organizational values has theoretical, methodological, and practical implications. The third part of the chapter is devoted to a closer inspection of the influence of values in organizations. Research linking values and outcomes in organizations is systematically reviewed within a multilevel framework. The framework identifies strengths and weaknesses in current values research and points to directions for future research.



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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 NATURE OF VALUES What Is a Value?

Disagreement about the nature of values has produced research that is often difficult to compare and it is even harder to build a picture of how values function in organizations. Part of the contention stems from the multidisciplinary nature of values research; different perspectives on values have seen them described as needs, personality types, motivations, goals, utilities, attitudes, interests, and nonexistent mental entities (Meglino & Ravlin, 1998). Arguably the most commonly cited definition of a value comes from Rokeach (1973, p.5): an enduring belief that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. The primary aspect of the values construct is the element of desirability. To have a value, by definition, ascribes desirability or worth; it denotes significance or importance (Connor & Becker, 1975). The origin of the term value comes from the Latin derivation of ‘valere’ meaning to be worth (Case, 1939). The beginning of value research as it is known today came when the definition of value was extended beyond the concept of worth. Social scientists in the 1950s (e.g., Kluckhohn, (1951) expanded the definition of an absolute value of an object, to an attribute of a person who valued the object (Spates, 1983). Debate shifted to whether a value pertained to what a person ‘should do’ or what a person ‘wanted to do’. Deliberations during the 1960s favored what one ought to do. Today most definitions of values involve a latent construct that refers to the way in which people evaluate activities or outcomes (Roe & Ester, 1999). The notion of desirability implies a quantity or magnitude, which enables a value to be considered more highly valued, less highly valued, or equally valued when compared with another value (Braithwaite & Scott, 1991). Distinguishing Values from Other Constructs While the evaluative and desirable aspects of values are generally agreed upon, the conceptual distinctions among the similar yet distinct constructs of values, attitudes, and norms are often blurred. The confusion arises as all three are belief-based concepts. Rokeach (1973) defined both attitudes and values as part of a person’s belief system, with attitudes taking a lower position than values in a person’s belief hierarchy. The belief-based approach to attitudes is consistent with the Theory of Reasoned Action (Fishbein & Ajzen, 1975) and the Theory of Planned Behavior (Ajzen, 1985) which aim to explain the relationship between attitudes and behavior. The feature that distinguishes attitudes and values is the level of specificity of the belief/s and the target/s. Attitudes are a group of beliefs that are all related to a specific target situation or object (Hollander, 1971). The focus of an attitude is on a specific outcome, such as smoking behavior, where all the underlying beliefs associated with


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smoking form an attitude towards smoking. Believing that smoking causes cancer, believing that your friends don’t like smoking, and believing smoking reduces your fitness all contribute to your attitude towards smoking. An attitude encompasses a range of beliefs that focus on a specific situation or object. In comparison, a value is a single belief associated with a range of situations or objects (Rokeach, 1973). An example of a value would be a belief in the importance of cooperation. This value could be related to a general aspect of life (I should cooperate with others), or about working (I should cooperate with my co-workers), or about a specific organization (I should cooperate with my supervisor). The single belief of ‘cooperation’ may be applied to many situations. Maio, Roese, Seligman, and Katz (1996) provide a clear distinction between the two concepts: ‘Values are abstract evaluations of the importance of different ways of being or end-states of existence, and attitudes are abstract evaluations of the favourability or unfavourability of specific objects’ (p. 172). As stated, attitudes can be favorable or unfavorable, that is positive or negative, while values are always stated in the positive. Parsons (1966) first distinguished the concepts of values and norms, but again the distinction is often blurred. Norms specify the ways group members are expected to behave and interact together (Cooke & Szumal, 1993). Values shared by the group about certain modes of behavior and acceptable conduct, are similar to norms. Norms, however, are more specific than values and have explicit behavioral expectations—norms may be consistent with values that apply to broader concepts (Wiener, 1988). A norm could be ‘to respond to a request by your supervisor in the shortest time possible’. This specific and explicit behavioral guide would be consistent with the broader value of cooperation (as described in the previous example). Figure 7.1 provides a summary of the distinction between values, attitudes, and norms. The figure emphasizes that attitudes, values, and norms are all

Number of Specific Beliefs about a . . . . . . . Specific Situation/Behavior Belief that smoking causes cancer Belief that your friends don’t like smoking Belief that smoking reduces your fitness

ATTITUDE: Smoking is bad

Single General Belief about a . . . . . . . . . . . . Range of Situations/Behaviors VALUE: Belief that cooperation is important

I should cooperate with others I should cooperate with my co-workers I should cooperate with my supervisor, Bill

Single Specific Belief about a . . . . . . . . . . . . Specific Behavior NORM: Belief that I should respond to a request by my supervisor in the shortest time possible

Figure 7.1

I should respond to a request by my supervisor in the shortest time possible

The difference between attitudes, values, and norms


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belief-based concepts and highlight the differences in the levels of specificity of the beliefs and related situations and/or behaviors. Specific Versus General Values Values can be associated with broad categories that are applicable in most situations, or they can be relevant only to a particular situation. As values can be associated with different foci, values have been postulated and values measures developed that vary in their level of abstraction. Despite the variability in the focus of values research, clear distinctions among the different approaches to values are not often made or discussed in the research literature. Recent research has started to address this inadequacy (Roe & Ester, 1999). Value measures can be separated by their focus. At their broadest, values can be applied in all settings; this category of values is referred to as life values or general values. The alternatives are values with a more narrow focus that apply in a given situation such as work, family, or other particular contexts. Both life values and work values have been used in I/O psychology and management research. Recent research into the structure of values has empirically distinguished different types of values (Elizur & Sagie, 1999; Roe & Ester, 1999; Sagie & Elizur, 1996). Sagie and Elizur (1996) identified two criteria, or facets with which values can be classified— modality and life area. Modality refers to three types of values, those that have practical consequences like economic security (material values), those associated with feeling and emotion (affective values), and those values related to meaningful life or broadening one’s horizons (cognitive values). Life area refers to the sphere of human activity the values relate to, including work, religion, culture, sports, politics, and life in general (equated to home and family). Using a multidimensional scaling technique (Guttman’s smallest space analysis) Sagie and Elizur (1996) distinguished these facets. In follow-up research Elizur and Sagie (1999) showed not only that work values could be distinguished from life values, but they also occupied a smaller space, indicating they were more focused. The order of value preferences also differed for life and work values, highlighting the importance of the context. Relationships Among Different Value Domains The relationship between different value domains has been conceived in a few ways (Roe & Ester, 1999). As described, Sagie and Elizur (1996) proposed a cognitive structure that produces structural similarities between life and work values. A second approach examines the correlations between values with similar content at different levels (Ros, Schwartz, & Surkiss, 1999), hypothesizing that work values emerge from general values projected into the domain of work. Another possibility suggested by Roe and Ester (1999) is that life



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values develop from work values, given the centrality of work in daily life. Research in this area continues to explore the relationship between value domains.

LEVELS OF ANALYSIS AND VALUES IN ORGANIZATIONS The Level of Analysis The values construct is a powerful concept because it can be meaningfully applied at many levels of social analysis including cultural, societal, organizational, and individual (Kabanoff, Waldersee, & Cohen, 1995). Within organizations, there are a number of levels at which the values construct can be applied. Values research has addressed individual, group, and organizational levels of analysis and has also investigated relationships among values across levels of analysis. Recently, there has been a call for research in all areas to combine multiple levels of analysis (Cappelli & Sherer, 1991; House, Rousseau, & Thomas-Hunt, 1995) and emphasize the context surrounding individual-level processes (Klein, Tosi, & Cannella, 1999). Several researchers have recently described frameworks to direct future research into the linkage between values and organizational behavior. A characteristic of these frameworks is that they are multilevel in character, linking values to behaviors at several levels of analysis. Roe and Ester (1999) proposed a framework linking general values with work values, and both types of values are linked with work activity. This structure is proposed to be repeated at three levels of analysis: country, group, and individual. Each level of the framework is linked to the one above by the equivalent variable. The emphasis of this model is to incorporate values at different levels and to encompass both work and general values in explaining the role of values in organizations. Sagie and Koslowsky (1998) provide a similar but more detailed model of work values at the individual, group, and company levels. At each level values are related to outcomes at that level—individual performance, group functioning, and organizational productivity. National and multinational values are also included as influences on company values. Similar to that of Roe and Ester (1999), this framework emphasizes the importance of investigating the function of values at different levels of the organization. Meglino and Ravlin’s (1998) framework for the effect of values also incorporates multiple level influences and moderating variables. Each level of analysis raises different issues for the conceptualization and measurement of values. In addition, the relationship between values at different levels of analysis is an important aspect of many practical organizational interventions. Below, we review defining characteristics of values at each of these levels of analysis and raise issues for investigating links among values across the different levels.


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INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 Values and Individual Employees

A common way to conceptualize values is as characteristics of individual employees within the organization. These personal values have been of interest to researchers from a variety of areas for quite a long time. The study of individual values is the most common psychological approach to values research. Individual values are important in organizations because reactions to the work environment are partially determined by the degree to which values are attained (Locke, 1976). Individuals join an organization with their own needs, priorities, and dispositions. These individual attributes play an important part in shaping the values held by any individual within an organization. Most research at the individual level assumes that individuals bring relatively stable values to the organization (Ravlin & Meglino, 1989). Values develop through a variety of early life experiences and organizational socialization is unlikely to alter the basic value structure an individual brings to the organization (Lusk & Oliver, 1974). Although individual values are clearly important for individual behavior in organizations, there has been little systematic investigation of the psychological processes that give rise to work values. Indeed, the assumption that individual values are stable across different organizational contexts was not tested in any of the studies we reviewed. The cognitive structure of values has been investigated by some researchers (Ravlin & Meglino, 1987). Cognitive approaches emphasize the way individual values influence the selection and interpretation of external stimuli (Ravlin & Meglino, 1987). This research suggests that values are hierarchically organized in memory and that individuals find opportunities in the workplace to apply their dominant value in uncertain situations. Cognitive explanations also underlie some arguments for the importance of value similarity among individuals in organizations. For example, individuals with similar values may coordinate more successfully and have clearer role expectations with less ambiguity and conflict (Meglino, Ravlin, & Adkins, 1989). Most individual definitions of values emphasize the cognitive aspect of belief structures. However, the link between values and dispositions suggests that affective structures should also be important for understanding values at the individual level. Although values have been linked to affect-related outcomes such as job satisfaction, there has been little attempt to relate affective experience to the nature and development of work values. The link between values and personality also remains unclear in many studies. Personality constructs such as protestant work ethic and authoritarianism have been incorporated into values research. However, other personality systems, such as the five-factor model, and dispositional differences in affectivity have not received systematic research attention.



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Values of Supervisors and Leaders Taking account of the hierarchical level of an individual is another way of understanding the multilevel structure of values in organizations. The importance of hierarchical level is recognized in studies investigating how the values of CEOs and company founders influence company development (e.g. Schein, 1983). In this case, the source of the values is at the individual level but the role of the person who holds a particular value is a key factor determining the way that values influence other outcomes. Senior leaders are an obvious source of this type of influence because their power and centrality provides greater potential to translate values into behaviors. The values of these key members in the organization are distinct from the values of other employees. Little research has investigated values across different levels of organizations. At the senior levels of organizations, research in the areas of CEO impact and so on provides some indirect evidence for the role of values. Little attention has been paid to other hierarchical levels within an organization. Maierhofer, Griffin, and Sheehan (2000) investigated the link between the individual values held by managers and the values and behaviors of the staff they supervised. The two distinct sources of values are both derived from individuals, but they may have quite different consequences within an organization. The distinction between leaders’ values and employees’ values is a frequent omission in the literature (Hofstede, Neuijen, Ohayv, & Sanders, 1990) and further research is required to understand the link between these different sources of individual values in an organization. Research in the areas of value congruence does recognize the role of supervisor values. For example, Meglino, Ravlin, and Adkins (1989) found that congruence between employee and supervisor values was related to employee satisfaction. However, as we note in the second part of this chapter, congruence studies tend to minimize the role of direct influence at each hierarchical level. Therefore, these studies provide limited information about the specific way individual values operate at different hierarchical levels. Overall, research involving the values of supervisors and managers faces some complex issues regarding levels of analysis. In some studies, managers’ values are used to represent the values of the organization (Chatman, 1991). In this case, the values are conceptualized at a level of analysis beyond the individual but the validity of this conceptualization depends on the degree to which the manager’s values actually represent the organization. In other studies, manager values have been conceptualized as individual values but operating at a different level of analysis to employees (Maierhofer, Griffin, & Sheehan, 2000). In this case, the validity of the higher-order values construct depends on the functional relationship that operates between the values at each level. In both cases, the research is investigating values across multiple levels of analysis. It is important for future research to recognize these


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different levels and take steps to establish the validity of constructs at each level of analysis. Values at the Group Level The first level of analysis beyond the individual that we consider is the group level. In this case, the values are conceptualized as properties of the group, rather than properties of the individuals. Moving to a level of analysis beyond the individual raises a range of methodological issues that add complexity to values research. The important issue is whether values held by a group are simply an aggregate of the values held by individuals, or whether they are a conceptually distinct construct. If a group’s values are simply an average of the values held by the members of the group, value measurement is relatively straightforward. The intensity with which the group holds a value can be assessed by the mean agreement on the importance of a value—the smaller the deviation of importance scores from the mean, the more intensely the value is held by the group (Wiener, 1988). How widely held the value is can be measured by calculating how many of the group members rated the value as important, as opposed to neutral, or unimportant (Wiener, 1988). Values that are intensely and broadly held are then strong values; values that are not intensely or broadly held are weak values. If, however, group values as a whole are more than a sum of its parts, measurement is based on more than aggregate scores. Evidence suggests that group values are indeed more than an aggregate of the values held by the individuals (Schein, 1990). Key leaders and founding group members often steer the values of the group (Hofstede et al., 1990; Schein, 1983). In addition, critical incidences in the history of the group also influence the values held by the group, which are evident in symbolic devices such as myths, rituals, stories, legends, and specialized language (Schein, 1990). Values are transmitted by socialization of new group members and maintained through both formal and informal social interactions in the group (Shockley-Zalabak & Morley, 1989). Individuals enter a group with their own personal values, which may not be the same values that are held by the group (Chatman, 1989). The distinction between group and individual values allows for a measurement of the discrepancy between an individual’s values and those held by the group (Roe & Ester, 1999). As an alternative to the aggregate measures, group members are often asked how important certain values are to themselves as individuals, and how important they perceive the values to be to the group. It is essential that group members share these values for them to be considered ‘group’ values, irrespective of the method of measurement (Meglino & Ravlin, 1998). Alternatively, erroneous conclusions will be drawn if the underlying values are diverse and not shared by the group (James, 1982). Given that homogeneity is a necessary but not sufficient condition for group values, it raises the question



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of how divergence or conflict within the group is reconciled to this requirement. Roe and Ester (1999) suggest considering different levels as nested groups with increasing homogeneity the lower one gets; a department has more homogeneous values than an organization, while a team has greater homogeneity than a department. Values at the Organizational Level: Organizational Culture At the organizational level we are concerned with the domain that most of us know as organizational culture though we also consider findings from a closely related field—organizational climate. Especially when it comes to quantitatively-based studies of culture and climate, which are the main focus of this chapter, a number of authors have pointed out that the measures and methods culture and climate researchers use are virtually indistinguishable (Denison, 1996; Payne, 2000). In keeping with the rest of the chapter, our emphasis here is upon some of the basic processes and assumptions about how values at a macro level may influence behaviors and outcomes. While most readers will have a good sense of what organizational culture is, a good, standard definition is nevertheless useful for contextualising our review, thus we define it here as: a set of cognitions that are shared by all or many members of a social unit; these cognitions are acquired through social learning and socialization processes, and they include values, common understandings, and patterns of beliefs and expectations (Rousseau, 1990, p.154). Denison (1996) described the appearance of studies applying quantitative methods to the study of culture as a ‘curious development’ (p. 620). Why ‘curious’? Because, as Denison pointed out, the culture perspective emerged as a ‘reaction against the pervasive positivism, quantification, and managerialism of mainstream organizational studies’ (pp. 619–620). However, even though the original exponents of culture research might have frowned upon the efforts of later quantitative researchers, their original assumptions about the nature of a culture shaped in several important ways the approach of the later ‘quantitavists’ to the problems of measuring organizational values or culture. The two key assumptions that we focus on are: 1. All organizations have a culture. 2. Culture is reflected in people’s shared values and assumptions. All organizations have a culture (Or do they?) As scholars have pointed out (e.g. Ashkanasy, Wilderom & Peterson, 2000), the original culture researchers drew heavily upon an anthropological tradition. Therefore they were concerned with describing behavior, broadly defined, in an ideographic, conceptualized way, from an emic (native) point of view, and with an emphasis on ‘appreciating’ the underlying values and


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assumptions that made groups of people different; or in Hofstede’s evocative phrase, on understanding the ‘software of the mind’ (Hofstede, 1997). With their focus on a fine-grained, rich description of the ‘native point of view’, it can be readily appreciated that they found that every organization could be seen as having, in one way or other, a distinctive character or culture. At some level of analysis every group or organization is different from every other. To put it another way, if culture is viewed as something that an organization is rather than something that an organization has (e.g. Meek, 1988; Smircich, 1983), that is, culture is viewed as a root metaphor, then virtually by definition each organization must be/have a culture. Quantitative evidence: For There have certainly been quantitative studies that have assumed that organizational culture exists and can fairly simply be measured provided one has a psychometrically valid scale. The typical design for such studies has involved asking members of, often, a single organization or organizational subgroup to describe the values of their organization and correlating their scores with some other perceptual measure such as perceived performance, commitment, satisfaction, change processes, and so on. Such studies may or may not tell us much about organizational values and culture—we simply cannot tell, on the basis of the evidence they provide. Other studies have used a more complex and sophisticated design. A seminal example of such a study is that by O’Reilly, Chatman, and Caldwell (1991). O’Reilly and colleagues surveyed virtually all of the new recruits employed by the West Coast offices of the eight largest US accounting firms prior to their joining each firm. Using a well-developed survey questionnaire called the Organizational Culture Profile (OCP) they asked recruits to describe the sort of workplace culture they preferred to work in. They also asked approximately 18 senior accountants within each office to describe the actual organizational culture, also using the OCP. After 12 months, recruits whose preferred culture scores were closer to those of the senior accountants were more satisfied and more committed to their organization. After 24 months, recruits whose preferred culture scores were more discrepant from those of the senior accountants were more likely to have left. This study is impressive on a number of counts: it measured cultural preferences prior to joining the organization; information about the actual culture was gathered from a different source, the design was longitudinal in nature rather than cross-sectional, as well as including an objective outcome measure, namely turnover. On the other hand, the study provided little insight into the culture processes that are assumed to produce these outcomes and several very plausible alternative, noncultural mechanisms could explain the findings. This includes that new recruits who share the preferences and outlooks of senior managers will tend to be happier than those who don’t; that is,



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the views of the senior accountants may be far from widely shared in each organization—a causal process that is quite inimical to the ‘shared culture’ explanation. While value congruence between supervisors and subordinates is the important mechanism in this explanation it does not involve what we have previously defined as culture unless we ‘redefine’ culture as the values of senior managers. Another empirically impressive study is that reported by Shortell, Rousseau, Morrison et al. (1991) in which culture data were gathered from more than 7000 members of 61 US hospitals that were implementing a Total Quality Management strategy. They were surveyed using a culture scale based on Quinn and colleagues’ Competing Values Framework (e.g. Quinn & Cameron, 1988). Hospital departments that were rated by their members as more flexible and group-oriented (i.e. more cohesive, more caring and participative) were also those that were better at implementing quality improvement processes. The results are supportive of, and compatible with, a cultural interpretation but again there are several complicating factors. First, while Shortell et al.’s study estimated the level of values agreement among respondents from the same department before aggregating them, the index of agreement they used (the ratio of within group to between group variance) has been criticized (e.g. James, Demaree, & Wolf, 1993) and therefore it is difficult to decide how much value agreement or sharing there actually was. Second, the cross-sectional nature of the study raises, of course, the inevitable questions of ‘causality’—did a culture exist prior to the quality interventions, or were respondents’ reports about their culture driven by the relative success or failure of the quality implementation program? Nevertheless, as we have noted, the findings from studies of this scale and scope cannot be disregarded and they provide evidence in support of the culture construct and its influence upon both individual and organizational outcomes. There is, however, a further point that needs to be made about the culture measures used by these two, large-scale studies. Although regularly called value measures (e.g. Ashkanasy, Broadfoot, & Falkus, 2000), both the scales used in large part ask organizational members to report on organizational practices and norms in relation to structure, communication, performance, and so on. Practices are generally considered to be an aspect or indicator of culture, albeit a ‘surface’ rather than a deep one. However, there is some question about whether such measures are really tapping what most would consider the core distinguishing features of the organizational culture construct, that is, values and assumptions. This point becomes important when we next consider a number of studies that suggest a much more qualified answer to the question of whether all organizations have cultures. The following studies offer more compelling evidence on the question of whether all organizations have cultures because they were explicitly concerned with testing this proposition.


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Quantitative evidence: Against Hofstede and colleagues (1990) surveyed 1295 members of 20 units in ten different organizations from Denmark and the Netherlands. The survey included three types of measures: a measure of perceived work practices (e.g. punctuality, promotions, pace of work); work goals (e.g. importance of security, pay), and general beliefs (e.g. the desirability of competition between employees). Though Hofstede and colleagues did not assess levels of intraunit agreement on any conventional basis, their conclusions are worth repeating: ‘The popular literature on corporate cultures . . . insists that shared values represent the core of corporate culture. This study, however, empirically shows shared perceptions of daily practices to be the core of an organization’s culture’ (p. 311). While Hofstede and colleagues did not question that the organizations they studied had cultures, they justified this view on the basis of interpreting cultures as organizational practices since there was little evidence of differences in work goals and general beliefs linked to organizational units. Since the units that they studied differed in size, industry (e.g. banking, manufacturing, R&D) and sector (public versus private), one might conclude that it is wholly unnecessary to draw upon culture as an explanation for the differences in organizational practices found among the organizations they studied. The next study we consider, by Patterson, Payne, and West (1996), might be seen as an unlikely candidate for present purposes since it was designed to be a study of organizational climate rather than culture, and it included members from subunits of only one organization. However, it is included on two grounds—it was concerned explicitly with establishing the level of agreement or sharing by employees of perceived organizational values and practices, and it set out to test the proposition that groups working on common tasks in relative isolation would tend to develop shared perceptions. That is, the notion that groups that interact with each other regularly and in isolation from other groups develop shared understandings and perceptions potentially can inform us about the conditions under which organizational cultures develop. Unfortunately, from both climate and culture perspectives the study found little evidence that groups that shared tasks and physical location agreed in their perceptions of work values and practices. A subsequent study casts further grave doubt on the ubiquity of shared values in organizations. Payne (2000) describes a study that used the same survey instrument as Patterson and colleagues—the Business Organization Climate Index (BOCI; Payne, Brown & Gaston, 1992) to survey 2150 employees from 56 UK organizations across a range of industries. The BOCI comprises 17 scales covering aspects such as Technical and Scientific Orientation, Interpersonal Aggression, Customer Service, Rules Orientation, and so on. This work by Payne and his colleagues is to our knowledge unique in that it gathered information from a relatively large number of respondents, across



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multiple organizations, using a sophisticated survey instrument, and then examined value consensus in these organizations using the best available statistical procedures. Of the 45 organizations Payne and colleagues analyzed they identified only three in which there was significant consensus among respondents on all 17 subscales of the BOCI; for 18 organizations there was consensus on 12 or more scales, and 24 shared consensus on more than half the scales. By a strict definition, a very small proportion of organizations (3/45) showed evidence of employee consensus about the full range of organizations’ values, while using a somewhat less strict criterion, between a third and a half of organizations showed evidence of value consensus across at least some value dimensions. We are therefore left with a somewhat equivocal answer to the question: Do all organizations have cultures? While we can empirically identify organizations in which there are high levels of value consensus, there seems to be quite compelling evidence that many, perhaps most, organizations do not have the value consensus that is considered a central feature of organizational culture. However, before concluding that the evidence is, on balance, unfavorable to the widespread existence of organizational cultures, we need to consider the other major assumption that has shaped how researchers have sought to identify organizational cultures—the notion of shared values. How are values shared? The notion of sharedness is, if anything, more central to our notions of organizational culture than even the concept of value. If something, be it values, beliefs, assumptions, or practices, is not shared by the members of an organization, there cannot, prima facie, be a culture. However, it is worth noting that empirical researchers of culture have adopted a particular and rather limited version of what it means for values to be shared—sharing requires that there must be agreement or consensus amongst all, or at least the large majority of members about the importance of different values or beliefs. While this is undoubtedly a form of sharing, perhaps the strongest form (i.e. similarity), it may not be the only way in which values can be ‘shared’. As we have already explained in this chapter, there are a number of levels and ways in which values can be shared among organizational members. For example, Schein observed ‘Culture as a state does not have to imply unanimity or absence of conflict. There can be some very strongly shared assumptions and large areas of conflict and/or ambiguity’ (2000, p. xxv). Martin (1992) explored these different ‘forms of sharing’ in greater detail. She identified three different cultural perspectives, only the first of which corresponds with what most assume culture to be, that is all or most members share common assumptions or values. Martin called this the integrationist perspective of culture. The second form of ‘sharing’ she identified was what she termed a differentiation perspective. In this form of culture values are shared


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within distinct subgroups that may be based upon occupational, status, gender, age or other shared characteristics, but these values are not shared across these subgroups. In a sense this is a ‘subculture culture’ but it still requires that there must be some consensus within subgroups, and it assumes that there is some degree of mutual accommodation between subgroups in order for the larger groups not to disintegrate. Finally, Martin identifies the fragmentation perspective in which there is no stable value consensus either across the larger group or within subgroups—any groupings that emerge do so around specific issues and objectives, are short-lived and reflect the pursuit of some shared, concrete interests rather than the sharing of broad values or goals. Fragmented organizational ‘cultures’ may be seen as not being cultures at all, but rather collectivities held together by some combination of shared legal, institutional, physical, geographic, and economic constraints and conditions. Shalom Schwartz (1992), a leading values scholar, has also provided some important theoretical and empirical clues to how values may not be consensual but still involve a form of sharing in that people and groups may hold different but compatible values. Schwartz has identified 10 main value types or value systems that each combine specific values with a common theme: Self-Direction—valuing independent thought and action Stimulation—valuing variety and stimulation Hedonism—valuing the pleasure of satisfying or organismic needs Achievement—valuing personal success through demonstrating competence according to social standards Power—valuing status and prestige, control and dominance Security—valuing safety, harmony and stability of society, relationships and self Conformity—valuing the restraint of actions, inclinations and impulses likely to upset or harm others or that are contrary to social norms Tradition—valuing respect, commitment, and acceptance of one’s cultural customs and beliefs Benevolence—valuing helpfulness, loyalty, honesty, forgivingness, true friendship Universalism—valuing the appreciation of tolerance for, and protection and welfare of all people and of nature Figure 7.2 shows how these 10 value systems relate to each other in two ways: adjoining values are seen as different but compatible, while opposing values on the ‘value circle’ are in conflict. For example, power and achievement value systems are compatible because both emphasize the pursuit of personal goals such as status, achievement, and dominance, but they conflict with or are incompatible with universalism and benevolence because the acceptance of others as equals and concern for their welfare interferes with the pursuit of personal success and dominance. This



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Figure 7.2 A summary of Schwartz’s value types and compatibilities and conflicts among them. Reproduced from Schwartz (1992) by permission of Academic Press


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suggests that there are three ways in which values can be ‘shared’ or perhaps more appropriately ‘coordinated’ within an organization—values can be consensual, compatible, or conflictful. For example, imagine that we had an organization in which one ‘group’ placed a high value on Power and another placed a high priority on Security—the values of those two groups are quite different but also quite compatible according to Schwartz’s theory, therefore we could have a cultural system in which values are not shared in the sense that they are identical but shared in the sense that they are compatible. It might appear counter-intuitive to suggest that there might also be cultures in which values are actually conflictful. This would seem to contradict Schein’s suggestion (1985) that shared values benefit cultural systems because they facilitate internal integration and external adaptation. Perhaps conflictually-based cultural systems that are viable, that is can persist over time, are comparatively rare but they may nevertheless exist. For example, when one group has the coercive or legal power to enforce compliance, and perhaps to manipulate perceptions, then even systems in which there are strong value conflicts may persist for considerable periods. Such systems will, we anticipate, have quite different dynamics, structures, roles, and relationships from those in which values were consensual or compatible. This has some interesting implications for how we conceptualize and study organizational values and culture. Cultures as configurations It seems it would be useful to reinterpret culture-values within a broader, organizational configuration framework (Meyer, Tsui, & Hinings, 1993) that moves us away from focusing on values as the sole indicator of the nature and existence of organizational culture. Meyer, Tsui, and Hinings (1993) defined an organizational configuration as ‘any multidimensional constellation of conceptually distinct characteristics that commonly occur together’ (p. 1175). Well-known typologies such as Mintzberg’s (1979) theory of organizational types, and Miles and Snow’s (1978) theory of strategy types are both configurational because they provide a rich description of a particular type of organization in terms of a number of distinct, conceptual dimensions and propose that these types represent the range of viable or sustainable organizational forms and strategies. That is, while other combinations are possible, they do not occur because these combinations do not constitute viable forms or configurations. For example, Miles and Snow defined four strategic types— defender, analyzer, prospector, and reactor—in terms of their unique combinations (or configurations) of context, structure, processes, and strategy. While a number of different ‘typologies’ or ‘theories’ of organizational culture have been described (see Trice & Beyer, 1993) none of these have been configurational in nature because they have dealt with: (1) only one form of value sharing—the consensual or integrationist form (Martin, 1992); and (2) only one organizational characteristic—values or beliefs—rather than describ-



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ing how values, practices, structures, processes, contexts and so on, are configured or combined to produce certain organizational types. In other words, we need theories that can specify the contexts, structures, and processes that ‘co-occur’ with consensual, compatible, or conflictful value systems and explain why these particular configurations occur and when they are functional and dysfunctional. To an extent this echoes the goals of the original, qualitative culture researchers who sought to provide a holistic, rich description of a particular culture by showing how various aspects of the organization such as values, practices, structures, and so on were interrelated; however, it is not advocating simply a ‘return’ to the qualitative tradition. Rather, it can be seen that qualitative researchers are generally concerned with providing, in terms of Thorngate’s (1974) Generality–Accuracy–Simplicity (GAS) frame a highly accurate (i.e. detailed, rich, unique) picture of a particular organizational culture whereas quantitative researchers usually seek greater generalization, that is, some of the rich detail is lacking but features that are common/distinctive about the phenomenon being studied are described. While it is not generally the goal of quantitative researchers to provide a description of a unique organizational culture, what they can do is provide a description of the limited number of unique, feasible types of culture by describing how various organizational and contextual aspects are configured to define this limited number of types. That is, this approach falls between the qualitatitivists’ concern with describing what makes each culture unique and quantitativists’ concern with dealing only with dimensions that can be considered general to all cultures. A configurational approach to studying organizations is growing in popularity, having been applied recently to problems such as describing the architecture of human resource management systems (Lepak & Snell, 1999). In a related vein, some writers are calling for organizational researchers to become more concerned with understanding how different organizational contexts influence findings within the field of OB (e.g. Rousseau & Fried, 2001). Hence to the questions we asked originally we offer a partial and broader answer: if we (i.e. quantitative, OB researchers) conceive of culture in the way that we have tended to conceive it, we are likely to find that a considerable proportion of organizations do not have ‘a culture’; however if we conceive of a limited number of culture configurations, one or more of which may overlap with the ‘traditional’ type, and that values form only one, important aspect of each culture configuration then culture is likely to remain a useful and dynamic construct.

THE INFLUENCE OF VALUES IN ORGANIZATIONS In this section we systematically review research into the link between values and outcomes in organizations. The multiple levels in an organization,


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together with a variety of outcomes, produce a complex web of potential pathways that link values and the potential consequences of values. Figure 7.3 is a simplified representation of potential links between values and outcomes across two levels of analysis. The figure first differentiates individual values from values that represent a more aggregate level of analysis. The aggregate level includes studies that assess the value construct as more than an intraindividual process.

Figure 7.3

Major links between values and outcomes in organizational research

Figure 7.3 also distinguishes values from outcomes. We are primarily concerned with the relationship between work values and outcomes and not the relationships between values of different specificity, such as general and work values. For this reason, the framework is limited to values related to work held at different levels in the organization. The figure provides a framework for categorizing a wide variety of studies. We present three broad categories corresponding to the three linking pathways depicted in Figure 7.3. First, we review studies that examine the value– outcome link within a single level of analysis. Second, research is reviewed that examines values and outcomes at different levels of analysis. This type of relationship is typically termed a ‘cross-level’ effect (Rousseau, 1985). The



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first two categories of research focus on the main effects that values have on outcomes. The third category of research is a special case of cross-level research that examines value similarity across levels and the impact this has on outcomes in organizations, that is, the interaction effects or value congruence. Organizing the research in this way allows a detailed review of the various sections of the framework, and also highlights any inadequacies that can be addressed in the future. In addition to reviewing the empirical evidence for the existence of the various pathways, we discuss the theoretical underpinnings for the link between values and outcomes. Some paths have not only received greater research attention but also involve more fully articulated theoretical mechanisms. One criticism of value research is its focus on the content of values and a lack of attention to the processes (Meglino & Ravlin, 1998). By way of contrast, research on the relationship between attitudes and behavior is more strongly grounded in theory (Dose, 1997). Accordingly, reviewing the research evidence for the different pathways provides an opportunity to consider theoretical propositions to explain the observed relationships. Within-level: The Influence of Work Values on Work Outcomes at the Same Level Within-level values research focuses on the link between values and outcomes that are at the same level. Both independent and dependent variables are operationalized at the same level. For example, an individual’s values for achievement may be linked with an individual’s job performance. Similarly, values held by a group are investigated in terms of group outcomes, and organizational values are related to outcomes at the organizational level. Table 7.1 summarizes recent research that falls into each of these categories. The first point to notice about within-level research is the imbalance favoring individual level studies. This imbalance is, in part, a natural consequence of the practical and methodological difficulties involved in studying multiple groups or conducting values research at an organizational level. Research has linked individuals’ values with both behaviors and affective responses. These two different types of outcomes do not have the same underlying theoretical explanations and consequently are considered independently. The link between individuals’ work values and their work behavior The link between an individual’s values and their behavior (e.g., between altruism and helping behavior) is fundamental to the study of values in organizations. We refer to this linkage as a ‘consistency effect’, to indicate the direct link between a value and its associated behavior (Maierhofer, Griffin, & Sheehan, 2000). In defining values, Rokeach (1973) notes that values guide individuals’ attitudes, judgments, and behaviors. Similarly, Kluckhohn (1951)


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refers to the influence of values on the selection of means, modes, and ends of action. Alternatively, over time behavioral conformance may lead to changed values (Cialdini, 1993) or another possibility is that work values have a reciprocally causal relationship with work behavior (Nord, Brief, Atieh, & Doherty, 1988). Taken together, these explanations predict consistency between an individual’s values and their behavior. Despite the theoretical importance of this relationship, little is known about the causality of the relationship (Connor & Becker, 1994) and empirical evidence has been mixed (Meglino & Ravlin, 1998). One of the reasons the link between values and behavior has been difficult to establish is that these beliefs are only one of many potential influences on behavior (Fishbein & Ajzen, 1975). For example, the degree of control a person has over their behavior (Ajzen, 1991), or whether the behavior is performed in public or private (Kluckhohn, 1951), may inhibit people from acting on their values. In addition, certain types of values are more likely to influence behavior directly. For example, functional values related to goals and styles of conduct, such as the value of cooperation, are more likely to guide an employee’s behavior than elitist values, which are concerned with status and superiority, such as the value of coming first (Wiener, 1988). Finally, a lack of direct, behavioral measures in work settings may also have contributed to the difficulty in finding value–behavior links (Meglino & Ravlin, 1998). Prosocial behavior is one outcome that has been linked to values in recent empirical research. These behaviors may or may not be role related, but do contribute to the benefit of other individuals or the organization (Brief & Motowidlo, 1986). Evidence suggests that values of helping others (McNeely & Meglino, 1994), the value of collectivism (Moorman & Blakely, 1995) and values that endorse community support (Popper & Lipshitz, 1992) are important to this type of behavior (see Table 7.1). Goodman and Svyantek (1999) matched employee-reported and ideal values with supervisor ratings and performance appraisal data of participants’ task and contextual performance. The manufacturing plant employees’ ideal values were related to both their task and contextual performance. However, in a different setting, secretaries’ value for helping others was associated with prosocial behavior directed at individuals but not prosocial behavior associated more generally with the university for which they worked (McNeely & Meglino, 1994). These results reflect the situational nature of the links between values and behaviors. Moorman and Blakely (1995) found individuals’ collectivism was related to employees’ citizenship behavior in a financial services organization. Specifically, self-report questionnaires illustrated a link between valuing collectivism and the behaviors of interpersonal helping, individual initiative, and promoting the organization. Collectivism was not related to the citizenship behavior of personal industry, which may have been perceived as more aligned to personal gain than organizational benefit and, hence, more closely associated with the value of personal achievement. These findings demonstrate the



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importance of matching a particular value with the corresponding behavior it is assumed to influence. Failure to do so may underestimate the influence values have on behavior. Popper and Lipshitz (1992) examined the behavioral intentions of Israeli soldiers to participate in additional national service on a voluntary basis. Individuals who rated values that endorse supporting the community as important were more likely to indicate their willingness to commit to extra service. On the other hand, extra-role behaviors such as volunteering for assignments were related to community values, as well as values that benefit the individual. Another area of interest is the link between values and behaviors that may be ethically based, such as equity-based decision-making. Judge and Martocchio (1995) conducted an experiment in which supervisors in non-academic departments of a university were given scenarios to assess the disciplinary decision required in each instance. Each situation was manipulated on six variables related to the seriousness of the subordinate’s behavior. Supervisors who valued fairness were more likely to favor harsher consequences for employees’ transgressions, which was seen as maintaining equity. An area that has not received much attention is the link between values and behaviors that directly benefit the well-being of the individual, such as their personal safety. In a study of hairdressers, Maierhofer, Griffin, and Sheehan (2000) linked self-reported safety behavior with employees’ value of time in the workplace. The more that participants valued timeliness, the less likely they were to report taking the time to use gloves when handling chemicals. However, the value of preventive measures was not related to glove use. This result demonstrates that even when values are intuitively related to behavior, they may be superseded by other values that are more important when placed in context. Maierhofer and Griffin (2001) linked values and behavior of employees in a large public sector organization. The values of teamwork, safety, and customer service were most closely linked to teamwork, safety, and customer service behaviors respectively. There were nonspecific cross-links, such as a link between teamwork values and customer service behaviors, but the strongest links were between a value matched with its corresponding behavior. This research again highlights the importance of measuring the correct values to elicit a value–behavior linkage. A difficulty with research in this area is that many studies use different values measures. The variety of measures used is often criticized for hampering progress in the area (Connor & Becker, 1975; Connor & Becker, 1994; Meglino & Ravlin, 1998), although it could be argued that the range of values measured strengthens the evidence for a link between values and behavior. Despite the range of measures used, there was general agreement for the discernible existence of a value–behavior link. Individuals’ values were linked to outcomes in disciplinary decisions (Judge & Martocchio, 1995), safety behavior (Maierhofer, Griffin, & Sheehan, 2000; Maierhofer & Griffin, 2001), contextual performance (Goodman & Svyantek, 1999), prosocial behavior


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(McNeely & Meglino, 1994), and organizational citizenship behavior (Moorman & Blakely, 1995). Although each paper found at least one link between individuals’ values and their behavior, the links were not straightforward. Often results were complicated by only some values being aligned with particular behaviors, and in these instances situational influences are a likely explanation for the differential results. Therefore, there may not be a single universal answer to which individual values influence contextual performance or any other specific behavior. Moreover, generalizations may be limited by situational influences such as a particular industry or occupation. It is commonly presumed that values influence individuals’ behavior in organizations. However, the broad generalizations about the value–behavior link at an individual level, while grounded in theory, do not have much empirical support. There appears to be an implicit assumption that the link exists, which precludes the need for testing. Although extra-role or prosocial behavior has received considerable research attention, greater focus on the relation of values to performance is required. Furthermore, additional research is required before generalizations about the link between values and behavior within individuals can be inferred, particularly in relation to employee performance. In addition, future research at this level needs to incorporate more objective measures of performance to reduce the impact of social desirability, cognitive consistency, and common method effects on findings. With the exception of Goodman and Svyantek (1999), Maierhofer and Griffin (2001), and McNeely and Meglino (1994), most papers have relied solely on self-reported measures of behavior. The link between an individual’s values and their affective responses The link between values and affective responses is grounded in the idea that a person with a given set of values will respond or perceive situations in a certain way because of their values. Kalliath, Bluedorn, and Strube (1999) suggest that strong values lead to a sense of certainty about one’s self and generally give an individual a more positive outlook. This link suggests there is a preconceived element of self that influences affective responses independent of the situation. While the influence of personality on disposition or affective responses at work is more frequently discussed (Eid & Diener, 1999; Furnham & Heaven, 1999; Schaubroeck, Ganster, & Kemmerer, 1996; Warr, 1999), similar processes can also be considered in linking individuals’ values and their affective responses. The evidence linking individuals’ values and their affective workplace responses, such as organizational commitment and job satisfaction, is mixed (see Table 7.1). Self-report questionnaires showed clerical workers with high intrinsic values generally had higher normative commitment, while those with higher extrinsic values had higher instrumental commitment (Butler & Vodanovich, 1992). In addition, hospital employees’ values related to human



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relations, open systems, rational goals, and internal processes were also found to be linked to their organizational commitment and job satisfaction (Kalliath, Bluedorn, & Strube, 1999). A survey of staff from an employee-owned organization revealed that individuals with strong participatory values had higher commitment than those with high instrumental values (Oliver, 1990). Furthermore, the affective commitment of soldiers to the Israel Defense Force was related to individuals’ values associated with community benefit, and not to values aligned with personal benefit (Popper & Lipshitz, 1992). Nevertheless, Finegan (2000) failed to find a similar connection between individuals’ values and their commitment in a study of petrochemical plant employees. Furthermore, a modified version of Rokeach’s value survey (McDonald & Gandz, 1991), used to assess work values, found no association between individuals’ values related to humanity, adherence to convention, bottomline, and vision and their affective, normative, or continuance commitment. Findings that link individuals’ values and their job satisfaction are also mixed. In a survey of technology employees in Taiwan, Cheung and Scherling (1999) found each aspect of satisfaction measured was related to corresponding values, that is, task, team and reward values were associated with task, team and reward satisfaction respectively. In contrast, Chatman (1991) did not find a relationship between individuals’ values based on values derived from their Organizational Culture Profile (OCP) (O’Reilly, Chatman, & Caldwell, 1991) and job satisfaction. In summary, research into the link between what a person values at work and their affective responses in the workplace has produced diverse results. Five of the seven studies that measured affective responses found a link, while the other two failed to. Similar to research linking values and behavioral outcomes, the measures used were often dissimilar. The notion of values as a dispositional characteristic of the individual that can influence how they perceive and interpret a situation therefore deserves further consideration. A strength of all the within-individual level papers was that they were conducted in applied settings. While the variety of measures used makes direct comparisons difficult, all but two papers connected peoples’ work values with an outcome for those individuals in the workplace. These results should inspire future research to continue in this direction. Group values—group outcomes Very little research has examined the values and outcomes of groups or teams in organizations (see Table 7.1). An exception is a recent study by Jehn, Chadwick, and Thatcher (1997), which examined the effects of value congruence on work group conflict and performance of 88 five-person work group teams. Over a 14-week period, teams of students consulted various organizations to identify a problem for the organization, develop a solution, and present a plan for implementation. Using the Organizational Culture Profile


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(O’Reilly, Chatman, & Caldwell, 1991) both the values of the group and congruence of the group members’ values was assessed. Groups that held a shared set of values were included in further analyses to investigate if the values that characterized the group were linked to group outcomes. Values related to outcome orientation and detail orientation related to actual group performance, while values of decisiveness, aggressiveness, and stability related to perceived group performance. Outcome orientation values were associated negatively with perceived performance. These results suggest that the type of values held by the group are important for how effectively the group functions. These findings highlight that simply sharing values is only part of the story. The content of the values shared by the group may also be a factor in group performance because some values may be more suited to group functioning. More research is required at this level of analysis to investigate group outcomes such as group affect and group coherence, as well as group performance. Organizational values—organizational outcomes Organizational values are often used to define or describe the culture of an organization (Schein, 1985; 1990). Literature on organizational values is fragmented between research that clearly states that the researchers are investigating values, and research that explicitly focuses on culture but that operationalizes culture using organizational values. To omit the culture research would underestimate the extent of research into organizational values and also ignore the meaning of values at this level of analysis. Although not incorporating research that assesses culture using other means (e.g. participant observation), culture research incorporating the measurement of organizational values is included in our review. Despite the large volume of research on organizational values, only a small proportion focuses within level, that is, the connection between the values of an organization and outcomes for that organization as a whole. The necessity of measuring values across multiple organizations makes this type of research extremely difficult. Two studies that have examined the relationship between organizational values and outcomes are reported in Table 7.1. Marcoulides and Heck (1993) investigated 392 participants from 26 organizations. Information about the organization was gathered using one-hour interviews and was used to develop a questionnaire. The values assessed included risk, safety, efficiency, professionalism, marketing and image, and research and development. Performance included dimensions of volume, share, profit, and return. Structural equation modeling demonstrated a link between organizational values and performance through climate, task organization, and individual attitudes. The second study, by Calori and Sarnin (1991), investigated the impact of corporate cultural traits on economic performance. Five companies particip-



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ated in the development of a questionnaire on work-related values and management practices. A different sample of employees from these companies then completed the survey and economic performances of these companies were measured. The work-related values measured included attitude toward change, internal cooperation, self-fulfillment at work, societal contribution, integrity, individuals’ relation to the company, internal competition, and personnel involvement. Overall, within-level research on values is dominated by studies that examine the relationship between individuals’ values and outcomes for those individuals. Levels involving the study of collectives such as groups or organizations remain largely neglected research topics. Cross-level Influence: Individual-level Outcomes Individual’s actions and affective responses at work can be influenced by their own values, as discussed above, but can also be influenced by values from other sources within their organization. In this section we consider the main effects of sources that are independent of an individual’s own values (Table 7.2). One key source of influence is the values of supervisors in the organization. Other sources of values are those held by the group in which an individual works or by the organization as a whole. The direct impact of others’ values on employee outcomes is often overlooked in research because greater attention is focused on the combined effect or interaction between an individual’s values and other values sources (supervisor, group, or organization). Influence of supervisor values on employee outcomes Supervisors have a potentially strong impact on employee outcomes. The values of a supervisor may influence an employee either directly through the supervisor’s espousal of desired values, or indirectly through supervisor behaviors that imply certain values. There is some empirical evidence to support this type of influence. For example, supervisors’ value of fairness has been related to employees’ performance in a retail setting (Adkins & Russell, 1997). This effect could be explained in two ways. First, the supervisor’s value might influence their treatment of employees and hence employees’ performance. Alternatively, the supervisor’s value of fairness might influence their rating of employees’ performance. Particularly when the supervisor has a lot of power, an employee may choose to act in accordance with their supervisor’s values irrespective of their own beliefs. Maierhofer and Griffin (2001) found a relation between a supervisor’s safety values and employee safety behavior in a large public organization, independently of employees’ values or the supervisor’s behavior. In addition to influencing an employee’s behavior directly, a manager may also influence the values of an employee. Maierhofer, Griffin, and Sheehan


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(2000) found a link between a manager’s values and employees’ values in the hairdressing industry. Since this industry comprises predominantly small businesses in which the manager owns the salon and the manager usually recruits staff, the link could be explained through the manager’s selection of staff. Alternatively, the manager may influence staff, particularly new apprentices, while working alongside them in the salon. These preliminary findings invite future consideration. Influence of group values on employee outcomes Only one paper in Table 7.2 contains an example of the influence of group values on outcomes for individuals. Consensus on group values and the content of those values influenced individual employee satisfaction with the group (Jehn, Chadwick, & Thatcher, 1997). Groups that valued supportiveness and decisiveness were more satisfying to individuals, but surprisingly, those groups that valued teamwork were less satisfying. This process of influence remains largely unconsidered and warrants further exploration. Influence of organizational values on employee outcomes The previous section linked work-group values to individual outcomes. Similarly, the values of the organization may have an effect on the employee independent of their own values. Chatman (1991) did not find this linkage, with the organization’s values not directly influencing job satisfaction, turnover intentions, or actual turnover, among employees from eight organizations. Instead, the organization’s values exerted influence via person– organization fit. Other studies have found contrasting results. The clarity with which new recruits perceive an organization’s espoused values influences their commitment to the organization (Caldwell, Chatman, & O’Reilly, 1990). Findings showed normative commitment was greater when new employees had a clear conception of the values of their new organization. Other research has indicated that this influence does not only apply to new employees. Using the Rokeach Value Scale modified for a work context, Finegan (2000) linked the perception of an organization’s values by individuals, who had a mean tenure of 20 years, to affective, normative and continuance organizational commitment. Moreover, values of humanity (e.g. courtesy and consideration) and vision (e.g. development and initiative) were associated with affective and normative commitment, while continuance commitment was related to values of adherence to convention (e.g. obedience and cautiousness) and bottomline factors (e.g. logic and economy). This link between the organization’s values and employee’s commitment was also demonstrated by Kalliath, Bluedorn, and Strube (1999) using the competing values model. Higher levels of organizational values were associated with greater organizational commitment and job satisfaction for hospital employees. Collectively, these papers


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demonstrate that there is a link between an organization’s values and an employee’s satisfaction and commitment. Importantly, the impact of an organization’s values extends beyond the affective responses of employees. Furthermore, Goodman and Svyantek (1999) related perceived corporate culture to supervisor-rated task and contextual performance of individuals. The findings suggest that the more an employee believed the organization valued warmth and competence, the higher their task and contextual performance. Summary Individuals are influenced not only by their own values but also by values from other sources, including their supervisor, their work group, and their organization. These values may have influence that is independent of an individual’s own values. There is also evidence that values from other sources may have an impact on what an individual believes is important at work. The ability of values from other sources to change an individual’s own work values has not received sufficient empirical attention. Interactions—Value Congruence The nature of value congruence Research into value congruence seeks to understand how shared values influence outcomes in organizations. Value congruence may be the sharing of values between an individual and a co-worker, or a supervisor. Another aspect of value congruence is the similarity of an individual’s values to a group. The group can be a work unit or the whole organization. Empirical evidence for each type of congruence will be examined separately below. First, the theoretical mechanism for understanding congruence effects is considered. Schein (1985) posits two functions of shared values: external adaptation and internal integration. Superior organizational performance may be achieved through external adaptation, that is, shared core values in an organization enable an organization to survive and thrive in its environment. These shared values influence employees to behave in ways that support the organization’s success. This premise underlies the use of mission or values statements in organizations. It assumes that shared values have a direct impact on the behavior of individuals. The second function that Schein ascribes shared values in organizations is internal integration, which encompasses two mechanisms (Meglino, Ravlin, & Adkins, 1991). First, shared values enable people to predict each other’s behavior and give people clearer role expectations and consequently, the ability to anticipate a co-worker’s behavior allows employees to interact more efficiently (Kluckhohn, 1951). The resulting positive outcomes produce increased positive affect among employees. In addition, reduced role ambiguity and conflict produce increased satisfaction and



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organizational commitment. This mechanism requires that employees interact on work tasks, which can apply to co-workers or close supervisory relationships. More distal positions will not be subject to these effects (Adkins, Ravlin, & Meglino, 1996). The second mechanism to explain congruence posits that people who share similar values also have similar cognitive processes. A consequence of these similarities is a reduction or elimination of uncertainty, stimulus overload and other negative features of work interactions, producing agreement on the interpretation of environmental events and an effective communication system (Schall, 1983; Schein, 1985). The assumption made in this proposal is that a person is aware of how another communicates, interprets environmental stimuli, and decides what is important; that is they can ascertain the other person’s values (Meglino, Ravlin, & Adkins, 1991). In summary, it is proposed that shared values or interpersonal value congruence produce positive affective and performance outcomes for employees. Congruence has been examined using a range of values sources. The similarity between individual employees and their co-workers, work groups, supervisors and organizations have all been considered (Table 7.3). These different combinations are considered separately. Employee–co-worker value congruence Adkins, Ravlin, and Meglino (1996) examined the overlooked concept of coworker value congruence. Carefully selecting people who work closely together, the study showed that congruence on Comparative Emphasis Scale (CES) values was related to satisfaction with work environment, satisfaction with job-related dimensions, tardiness and days absent but was moderated by tenure. For those whose jobs required interaction with others, value congruence was also associated with supervisors’ ratings of their performance. Employee–group value congruence Very little research has been conducted that examines the values and outcomes of groups or teams in organizations. Recent studies by Jehn and colleagues provide an exception. A study by Jehn, Chadwick, and Thatcher (1997) described earlier examined the effects of value congruence on work group conflict and performance of 88 five-person work groups. Value congruence was related to both task and relationship conflict. Relationship conflict mediated the relationship between value congruence of the group and perceived performance and individuals’ satisfaction. In contrast, there was no reported relationship between value congruence and actual performance. In another study, value diversity was an important explanatory variable for group outcomes of 92 work groups (Jehn, Northcraft, & Neale, 1999). The greater the perceived diversity of group members’ values, the greater the level of reported conflict. Conflict in the group mediated the relationship between


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value diversity and satisfaction, commitment to the group, intent to remain, and both perceived and actual performance. Given that a primary part of the explanation of how congruence influences is through interpersonal communication influencing affective and behavioral outcomes, congruence between employees and co-workers and employees and work groups deserves greater research attention. Congruence with coworkers/work groups may moderate the effects of poor congruence with other value sources such as supervisor or the organization as a whole. Employee–supervisor value congruence Congruence with a supervisor can be viewed as congruence with the supervisor as an individual, or as a member of a management group, or it can be viewed as representing the values of the organization. Here we treat the supervisor as an individual in the employee–supervisor relationship, though we will also consider the other distinctions shortly. Studies of employees’ value congruence with their supervisors have produced mixed results. Meglino, Ravlin, and Adkins (1989; 1991) showed that employee–supervisor value congruence was related to increased employee satisfaction and commitment. Their earlier study examined the value congruence of production employees both with their supervisors and with management. Several congruence comparisons were made revealing that congruence with supervisors was more important for employee satisfaction and commitment than congruence with the organization’s values. In a later study, Meglino, Ravlin, and Adkins (1991) conducted a quasi-field experiment showing participants two videos of leaders with different values. Congruence with the perceived values of the leader was associated with anticipated leader satisfaction. Although congruence between employee and supervisor values has been linked to affective outcomes, the same relationship has not been found in relation to employee behavior. No link was found between subordinate– supervisor value congruence and performance of retail managers (Adkins & Russell, 1997), safety-glove use by hairdressers (Maierhofer, Griffin, & Sheehan, 2000) or the performance of production employees (Meglino, Ravlin, & Adkins, 1989). The extent to which an employee interacts with their supervisor may moderate the influence of value congruence, as may the extent to which the behavior is influenced by external factors, for example in the case of production workers by machine speed (Adkins & Russell, 1997). Maierhofer, Griffin, and Sheehan (2000) found that, for managers who worked alongside employees doing the same work, the manager’s behavior was a stronger predictor of employees’ behavior than was the congruence between their values. These employees were apprentices in training and may have taken their behavioral cues from the manager’s actions, which in this case were not in line with the manager’s self-reported values. Employees may take cues as to a person’s values either from their behavior or from explicit state-



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ments about the importance of particular values (Adkins & Russell, 1997). All four papers assessed employees’ values and supervisors’ values separately and used them to calculate a measure of congruence. None of the papers assessed perceived congruence, which also deserves investigation. Three of the papers used the CES and rank order correlations to estimate congruence, while the fourth paper calculated congruence using an interaction term in regression analysis. Often the values of senior people in an organization are used to represent the values of the organization. The extent to which employees distinguish between supervisors’ values as different from, or representative of the organization, has not been determined and requires further investigation. Employee–organization value congruence The similarity of an employee’s values to the values of their organization has received the most research attention of any type of value-congruence. The interest is due to the importance of employee—organization value congruence for selection, socialization and organizational development programs. The similarity between an individual’s values and the values of their organization has been assessed using different methods. Similarity can be calculated using an individual’s rating of their values and an independent assessment of the values of the organization. A key problem when investigating any linkage of values here is the complex question of how to consistently measure the values of the organization. Chatman (1991) followed the progress of new employees in eight public accounting firms. Person–organization value congruence was assessed by correlating individuals’ values with the values of the organization as reported by 128 partners and managers. The fit assessed at entry was associated with satisfaction and intent to leave 12 months later and also with actual turnover 2.5 years later. Fit was also reassessed at 12 months, and improved fit was associated with more socialization during an employee’s first year and linked to increased satisfaction. O’Reilly, Chatman and Caldwell (1991) assessed congruence in a similar manner and found consistent results. Employees whose values were closer to those of their organization were more satisfied, more committed and less likely to leave one year after completing the OCP and were less likely to have left two years later. Using the same method in a study of 28 Belgian healthcare organizations, Vandenberghe (1999) showed person–organization fit was associated with turnover data one year later. An important point noted was the potential confound of people considering their unit or their profession instead of their hospital when describing organizational values. The difficulties associated with obtaining an independent evaluation of the organization’s values are avoided by asking individuals how similar they perceive their values are to the values of their organization. The argument for operationalizing fit in this manner is that an individual’s perceptions of fit may


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be more important than more objective alternative measures. If an individual believes they do or do not share similar values, this may be all that is necessary to influence behavioral and affective outcomes. Miceli and Near (1994) examined the influence of perceived value congruence on the treatment of employees who report wrongdoings in organizations. Individuals who perceived their values were not similar to those of the organization were more likely to report experiencing retaliation for reporting wrongdoings than those who reported value congruence with their organization. A third alternative for measuring value congruence is to ask for an individual’s perceptions of the values of their organization and calculate similarity with the individual’s own self-reported values. This not only removes the requirement for the individual to conceptualize and assess value similarity, it enables the effects of the individual and the organization to be examined separately as well. Cable and Judge (1996) explored the issue of person– organization value congruence in relation to new employees. On entry they measured new recruits’ own values and their perceptions of how well they fitted the organization. Several months later they assessed employees’ perceptions of the organization’s values, and attitude measures. Employees’ congruence with the values of the organization was related to satisfaction, commitment, intention to leave, and willingness to recommend the organization to others. All of these outcomes, except for turnover intentions, were mediated by the employees’ subjective perceptions of their fit with the organization. These results indicate that individuals are influenced by their perceptions of fit with the organization. Further, these perceptions of fit are based on the similarity of their own values and their perceptions of the organization’s values. Kalliath, Bluedorn, and Strube (1999) used a modified version of Quinn and Spreitzer’s (1991) Competing Values Questionnaire to assess individuals’ own values and those they perceived to be possessed by the organization. The study revealed extremely small effects. More compelling were the main effects (as already described previously). The results did not provide support for the impact of congruence on job satisfaction or organizational commitment. Similarly, Goodman and Svyantek’s (1999) study also produced results that question the influence of value congruence. Their research assessed the discrepancy between employees’ ideal and perceived organizational values. Discrepancy was assessed by ascertaining if perceived values explained additional variance in outcomes after ideal values were entered into hierarchical regression. The larger the difference between an employees’ ideal organizational values and their perception of the values that actually exist in their organization, the lower the associated task and contextual performance were found to be. This difference explained less variance than did perceptions of the organization’s values. Greater value congruence between an employee and their organization has been linked to affective responses (Cable & Judge, 1996; Chatman, 1991;



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Harris & Mossholder, 1996; O’Reilly, Chatman, & Caldwell, 1991), turnover (Chatman, 1991; O’Reilly, Chatman, & Caldwell, 1991; Vandenberghe, 1999) and individual performance (Goodman & Svyantek, 1999). The results are not unequivocal, as recent findings (Kalliath, Bluedorn, & Strube, 1999) and new methods for calculating congruence using polynomial regression (Edwards, 1991) pose further questions to be resolved. Group–organization congruence Another cross-level interaction that can be considered is the similarity between the values of a work group and those of the larger organization. Enz (1988) examined the values of 29 departments from two organizations. Aggregating the values of individuals within the group assessed group values. The values measured were developed from qualitative analysis of interviews with employees and managers. Two types of congruence were investigated, the perceived congruence between the group and the organization’s values, and what was termed latent congruence, the index of net difference between the group’s values as described by group members and the organization’s values as described by senior managers. Latent congruence was unrelated to perceived departmental power, but the greater the perceived similarity between department and senior management on organizational values, the greater the perceived power of the department. Accordingly, congruence as perceived by management was a better predictor of the group’s power than the group members’ perception of congruence. Processes of Influence Previous reviews and empirical papers have urged a greater focus on the theoretical basis for the influence of values in organizations. Our review considers the potential links between values and outcomes in organizations using a multilevel framework. To this point, the framework has been used to summarize and evaluate empirical evidence for the various pathways. We now use the framework to consider the theoretical basis for each link. Figure 7.4 takes the original framework described in Figure 7.3 and elaborates the different pathways of influence. The relationship between an individual’s values and their behavior is the most theorized connection in the multilevel framework (Pathway 1, Figure 7.4). The primary theory originates from early work by those such as Kluckhohn (1951) and Rokeach (1973) who, in their definition of the construct of values, linked the importance of individuals’ beliefs with their behaviors. Individuals use values as guides that tell them what is important and what actions to take. In addition to this seminal work, Schwartz’s theory of norm activation (1968) links an individual’s values to their behavior by a feeling of personal obligation, in which a norm reflects an individual’s


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Figure 7.4

Theoretical links between values and outcomes

commitment to an internalized value. Alternatively, Cialdini (1993) presents the reverse causal linkage, in which, over time, behavioral conformance to group norms may lead to changes in values. These mechanisms may occur simultaneously. Accordingly, Nord et al. (1988) suggest that work values may have a mutually causal relationship with work behavior. Longitudinal research is required to investigate these alternate theories. The second pathway in Figure 7.4 links values and outcomes at higher levels of the organization. There has been less attention devoted to group and organization theories that link values and outcomes at this level. Studies of organizational culture have considered that strength of a culture might have an impact on the performance of an organization. Strong cultures are those in which values are widely shared and deeply held by members of the organization. This sharedness leads to positive outcomes for the group or organization. The notion of a strong culture has received greater attention in the popular press (Peters & Waterman, 1982). Within the research literature the importance of different value patterns has been suggested, although typically not empirically linked with organizational outcomes. More recently, different configurations of culture that do not require widely shared values but rather complementary or conflicting values have been proposed (Martin, 1992; Schwartz, 1992). Pathways 3 and 4 (Figure 7.4) represent the cross-level influences on individuals’ behavior. Pathway 3 shows the direct influence of the behavior of others on an individual’s behavior. The most relevant theoretical mechanism for this process of influence is behavioral modeling (Bandura, 1971b). Behavioral modeling is more widely researched in relation to child and counseling psychology



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than in relation to work behavior. According to the theory of social learning (Bandura, 1971a), an observer watching a person receive a reward perceives the link between the behavior of that person and the reward and is influenced to participate in the same behavior. In instances where the behavior of the individual or model is not directly followed by a reward the observer looks to other cues for similar information. The observer views the model’s status or power as evidence of previous reward in the past, leading the observer to follow the example of the model in order to achieve the same rewards (Bandura, 1971a). Pathway 4 has been included to capture the influence of the values of others on an individual’s behavior. Although any expression of a value is behavior, measuring a value may be a good measure of complementary behaviors. In the example of safety values, complementary behaviors would be talking about safety, posting safety warnings and literature, or always putting safety issues on meeting agendas. While none of these behaviors is actually performing safe procedures in the workplace, they reflect a value of safety. This connection has not received much consideration in organizational or value literature. In a quantitative and qualitative study by Hofstede and colleagues (1990) it was noted that the founders’ and leaders’ values became the employee practices. However, the values of employees did not change to those held by the founders and leaders. The influence of the behavior of others on an individual’s values is a type of normative influence. In social psychology research this type of influence is labeled an injunctive norm, which refers to beliefs about what is and is not acceptable conduct (Cialdini, Reno, & Kallgren, 1990). Pathways 5 and 6 (Figure 7.4) show cross-level influences on the values of subordinates. This link has been considered in the processes of socialization into an organization (Chao, O’Leary-Kelly, Wolf, Klein, & Gardner, 1994). Individuals’ values are influenced through their experiences and they are susceptible to change despite the relative stability of values in certain situations. In the workplace, the values and behaviors of others, including co-workers and supervisors, provide important information that may produce value change. Pathway 5 denotes the influence of others’ values on the values of an individual. This crosslevel values linkage has been labeled value internalization (Maierhofer, Griffin, & Sheehan, 2000). O’Reilly and Chatman (1986) describe a process through which the values of an organization become the values of an individual. Organizations can provide a strong situation in which an individual cognitively restructures their values. Pathway 6, the influence of others’ behavior on individuals’ values, is considered in terms of behavioral or descriptive norms (Maierhofer, Griffin, & Sheehan, 2000). A behavioral norm describes what people do; what is considered normal behavior in a particular context (Cialdini, Reno, & Kallgren, 1990). In this pathway an individual observes others’ behavior and is influenced to change their values to match the behavior of others. It is likely that the greatest influence on an individual’s values occurs when the values and behaviors of others are strongly linked, providing consistent cues as to what is


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important in the organization. These mechanisms to influence individuals’ values deserve greater empirical attention. The final pathway is congruence (pathway 7, Figure 7.4). This path has received a lot of empirical consideration and its development is based in the area of interactional psychology (Chatman, 1989). This theory states that the way an individual’s characteristics combine with the characteristics of the situation influence a person’s affective or behavioral response in that situation (Chatman & Barsade, 1995). Figure 7.4 meets the call for a focus on the process of how values work in organizations. Together with our review of previous studies, the framework provides a guide to areas that have not received more or less research attention. Future research should include simultaneous consideration of multiple pathways of influence across levels to help answer the question of how values and culture influence outcomes in organizations.

SUMMARY AND CONCLUSIONS The mechanisms through which values influence individual-, group-, and organizational-level outcomes have inspired the present chapter. We presented a multilevel framework to review studies that have investigated these mechanisms. It is important to review previously acquired findings and consolidate our current knowledge and insights. After all, the impact that one has on the future is closely related to one’s appreciation of the past! (Hollenbeck, 1998, p. 819). We first examined research within a single level of analysis. Most studies in this section focused on linking individual values with individual outcomes. Research that linked the values and behaviors of individuals is dominated by research on prosocial behaviors. More attention is required on the link between individuals’ values and other aspects of their work performance. This link is fundamental to the use of values as a management tool in organizations. At present, there is a popular belief that by either selecting staff or developing staff with certain values, positive organizational outcomes will be achieved (Alexander, 1987; Edwards, Faerman, & McGrath, 1986; McDonald & Gandz, 1992; Weaver, Trevino, & Cochran, 1999). This belief should be both challenged and elaborated. Research has also considered the link between an individual’s values and their affective responses at work. Although this research does not have a clearly conceptualized theoretical basis, the consequences of individuals’ values on their general affective responses have posed some interesting questions. In comparison to individual-level research, very few studies have examined values and outcomes at the level of the work group or the organization. Practical difficulties in data collection, and the problems associated with measurement of values and outcomes of groups, probably contribute to the lack of research in this area. However, the



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assumption that having certain values is advantageous to an organization’s outcomes will remain an assumption without further investigation. The second type of research that we reviewed were studies that examined main effects across different levels of analysis. Our review showed that only some of the many potential pathways have been considered. Those pathways that have been investigated include the influence of supervisor values, work unit values, and organization values on employee outcomes. In addition to these pathways, there are potential links between sources across levels and between higher-level outcomes and individuals’ values as well as their behavior. These processes are an important part of how values are disseminated in organizations. The potential to influence the values of groups and individuals in organizations, for benefit to the organization, is through these crosslevel mechanisms. Without these processes the only way to influence the values of members of an organization is through selection of staff with the desired values. The final type of research was cross-level interactions, or value congruence studies. This is the main type of multilevel value research. One of the reasons for the large volume of value congruence studies is that the values construct is one of few truly isomorphic constructs. Consequently, values are an excellent focus for research that seeks to understand the nature of ‘fit’ in organizations. As noted in a previous review (Meglino & Ravlin, 1998), values research often suffers by not being the primary focus of a study. The wide applicability of values means that measures of values are often included in a range of research studies. As a result, we have the unusual situation that research examining interactions far outweighs the amount of research examining the main effects of values. Improvements in the statistical procedures for estimating congruence also have potential to increase understanding of main effects (Edwards, 1993; 1994). There is a need to develop a better understanding of the main effects of values on outcomes, regardless of the importance of interactions. Part of the difficulty with and also the interest in values within organizations is the complexity in the sources of values and potential mechanisms of influence. It is this depth that makes values such an important issue in organizations but certainly provides methodological and theoretical challenges to investigators. The review of multilevel values research has identified several potential directions for future studies. In particular, more research is needed to understand the link between values and outcomes within groups and within organizations. Research that explores the full range of influence processes across levels of analysis is also required. In addition to these areas, there is a need for more simultaneous investigation of multiple paths of influence. Including only one source of values or one pathway, limits our understanding of the total impact of values in organizations. The inclusion of multiple levels and the consideration of theories to incorporate these potential influences are evolving understanding of values in organizations in the right direction.


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Chapter 8 NEW RESEARCH PERSPECTIVES AND IMPLICIT MANAGERIAL COMPETENCY MODELING IN CHINA Zhong-Ming Wang Zhejiang University, People’s Republic of China

INTRODUCTION In the last ten years, industrial and organizational psychology (I/O psychology) has developed rapidly in China. This development is closely related to the recent changes in economic and organizational reform. In the previous reviews of I/O psychology, the cross-cultural socioeconomic perspective has been emphasized in relation to the developments in various fields of psychology and human resource management in China (Wang, 1991; 1993; 1996; Wang & Mobley, 1999). Since the mid-1990s, significant social and economic changes have taken place. This has affected human resources management practices and I/O psychology research in China. The Structure of Ownership and Management Systems Since the 1990s, different types of Chinese enterprises such as SOEs (stateowned enterprises), township companies and joint-venture firms have undertaken structural changes in management systems. Most of the SOEs have recently completed their process of transforming the state-ownership system into shareholding systems or other collective ownerships. As a result of the Chinese management systems changes, more attention has been paid to the quality of top management teams and their selection and development under the formal model of a ‘multi-ownership management system’. The main developments in the organizational context are the changes of requirements for the Chinese Modern Enterprise Systems: (1) clearly established ownership; (2) well-defined power and responsibility; (3) separation of enterprise from



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administration; (4) scientific management in practices. These contextual changes have given a new framework of analysis and modeling in personnel management and administration. Practices and Focus of Employment Systems and Career Management Chinese employment systems and career management have made significant changes in the last ten years. One of the changes was to implement various labour contract systems in SOEs. Therefore, assessment and selection became a part of the qualification process in China. The nature of employment has, then, become a competitive practice rather than a practice of life employment and iron-bowl welfare. Also more and more companies are being encouraged to develop cross-regional employment programs so that both the management localization and cross-regional business development can be achieved. As a result of the employment systems change, efforts are being made to facilitate career development. Many Chinese companies have focused upon long-term person–job fit and succession planning, particularly among joint ventures, township companies and private firms. Approaches of Personnel Management Systems Since the mid-1990s, personnel management approaches in China have been changed from the central planning and top-down nomination practice to an ability–performance appraisal and a two-way nomination and selection process. The national leadership examination and testing systems were developed by the Test Center of the Ministry of Personnel and experts from the key universities. More systematic requirements for public selection and assessment are being constructed and implemented nationwide by the National Public Selection and Testing Center. More executive development programs and overseas study tour programs are being conducted to enhance leadership competence among executives and managers. Attention has been paid to the principles and methodology in the assessment and selection of both leaders and employees (Wang, 1997a; Li & Shi, 2000). Motivational Mechanism of Compensation Systems The motivational and regulative mechanism is becoming a key topic of economic reform and organization development in China. In parallel with the organizational systems change and personnel management change, motivational mechanisms have become a focus of reform practice and research in I/O psychology. One significant development is the implementation of various kinds of shareholding and the trial of stock options, and particularly the CEO compensation systems for top management. In relation to these changes,


NEW RESEARCH PERSPECTIVES IN CHINA

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various new performance appraisal systems are being developed in order to strengthen the regulation mechanism (Wang, 2001a). International Management and Technological Innovations As international joint ventures are rapidly developing all over China, there has been an urgent need to develop effective cross-cultural leadership teams and formulate strategic HR models (Wang, 1998; 1999; Wang & Mobley, 1999). Three areas of international management have become active: (1) formulating expatriates’ adaptation and training programs; (2) developing the Third Culture management; (3) encouraging effective cross-cultural leadership teams. In addition to international management, technological innovation and E-commerce are also active areas of recent development in China. More and more companies are preparing themselves for E-business development and virtual organizational change, including enterprise–university management development programs and virtual team-building programs (Wang, 2001b). All of those recent changes have facilitated and called for more systematic research and applications of I/O psychology in China.

NEW RESEARCH PERSPECTIVES Following the above-mentioned cultural, social, economic and managerial changes, new research perspectives are being formulated in the Chinese industrial and organizational psychology with a clear focus upon managerial competencies and selection process modeling. Several new perspectives are worthy of note. Culture-based Conceptions of Key Constructs in Research With the development of I/O psychology and an increasing demand for more culture-specific approaches and principles in China, there is a clear shift of conceptualization in I/O psychology from simple translation and adaptation of the Western concepts to the development of Chinese culture-based and workoriented constructs (Wang 1996). In discussing the indigenous or emic approaches to Chinese personality structure, McGrae, Costa, and Yik (1996) noticed two major efforts: F. M. Cheung and colleagues have developed a new Chinese Personality Assessment Inventory (CPAI) intended to measure both normal personality traits and psychopathology from a distinctively Chinese perspective; and K.S. Yang has conducted a new survey of indigenous Chinese personality adjectives. Evidently, a return to the larger issues of personality and culture has been useful for a clearer understanding of personality structure. Two examples are the Chinese conceptualization of the hierarchical personality model and the two-facet organizational commitment model (Tao, 1999; Liu, 2000).


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The first example is related to the study on personality hierarchical modeling. Most of the personality concept was based upon the structural categorization of key personality traits such as the big-five personality model and other approaches and models. However, some recent interview study showed that the personality traits might be structured differently among Chinese people. According to Chinese traditional literature and cultural conceptualization, personality is more of a hierarchical nature rather than a simple categorization of many traits. In a recent study on the personality structure and its relationship with performance, Tao (1999) formulated and tested a culture-based hierarchical model of personality. This hierarchical model defines personality in four hierarchical levels: (1) an operational level of arts; (2) an interpersonal level of kindness; (3) a societal level of morality; (4) a regulational level of rule. It was found that people behaved differently depending on the characteristics and strength of the dominating level of their personality hierarchy. Our empirical research showed that the operational level of arts was more closely related to task and individual performance, whereas the other higher levels of personality were significantly correlated with satisfaction and organizational job performance. The second example is about the two-facet organizational commitment model. The concept of organizational commitment came from Western studies and focused more upon the bottom-up economical exchange between employees and organizations with a focus of leaving and loss by employees. However, on the basis of a large scale of field interviews and a questionnaire survey, Liu (2000) found that the Chinese culture-based concept of organizational commitment was more related to a top-down social exchange between organization and employees, with a focus of staying and development in the organization by employees. Figure 8.1 presents these cross-cultural differences in conceptualization. As we can see, the solid circle represents the location of the Chinese culture-based concept of organizational commitment, whereas the dashed circle indicates the location of the Western concept of organizational commitment. Apparently, contextual boundaries in cultural characteristics would limit the applicability of some key concepts in nonWestern countries such as China. Efforts have been made in recent industrial and organizational psychology research to identify these cultural and contextual boundaries and formulate more culture-based concepts of HR and organizational behavior. Also, a 3-year longitudinal Sino-Dutch joint research project on HRM practices found that HR practices such as career development, performance appraisal and rewards are more sensitive to cultural variation than other HRM practices because they deal more with interpersonal relations. A culture-based concept of functional and contextual HRM is therefore proposed to capture culturally-general and culturally- specific aspects of human resource management practices (Verburg, Drenth, Koopman, van Muijen, & Wang, Z.-M., 1999). In dealing with critical management events, managers working in joint



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Figure 8.1 Cross-cultural differences in the conceptualization of organizational commitment

ventures from different cultural backgrounds and partnerships made decisions under very different motivations (Smith, Peterson, & Wang 1996). Performance-based leadership compatibility and team effectiveness The Chinese culture is highly relationship (guanxi)-based (Tsui, Farh, & Xin, 2000). Many studies in I/O psychology have focused upon relationshiprelated constructs and team relationship under work settings (e.g., Wang, 1994; 1997b). However, as economic reform progresses, team performance and effectiveness have become the key construct of leadership and team studies. The focus of research and application has shifted from relationshipbased group coordination to performance-based team effectiveness. In a recent field research project on team conflict and team climate and their effects on team performance among 110 teams in 80 organizations in China, Zhu (1998) and Hu (1998) found that team members in joint ventures showed more conflict-avoidance behavior, and were more problem-solving oriented and less cooperative than team members from the state-owned companies. Also, team commitment and mutual support among members didn’t directly lead to a high team performance. Involvement in production and task operations was an intervening variable for the relationship between team commitment and team performance. An overemphasis upon members’ cooperation and mutual support might lead to an avoidance of conflicts and open discussion, and therefore to low performance. The study demonstrated that cooperation and open discussion had significant positive impact upon


270 INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 members’ commitment and constructive communication and problemsolving. The results showed that the stronger the group interaction, the higher the value-sharing. In joint ventures, the quality of conflict resolution greatly improved team climate, whereas in the state-owned companies, an individualistic value orientation had positive effects on team climate. In a more recent 3-year longitudinal study on developing cross-cultural leadership teams in 40 Chinese companies and joint ventures, Wang and Schneider (2001) discovered six key dimensions of team readiness for leadership team development and team effectiveness: 1. Career-identity dimension: readiness for challenging jobs, career potential, and career task accomplishment. 2. Team-responsibility dimension: readiness for team experimenting, risktaking, and responsibility building in teamwork. 3. Relationship-sharing dimension: readiness for peer discussion, joint problem-solving, and networking among team members. 4. Collective-orientation dimension: readiness for team membership, group needs, and group actions. 5. Change-initiative dimension: readiness for change, involvement, and opportunities in teamwork. 6. Interdependence dimension: Readiness for team–member exchange, leader–member exchange, and unwritten rules. It was shown that these dimensions of team readiness significantly affected the effectiveness of cross-cultural leadership teams through variables of both team–member exchange and leader–member exchange (Seers, 1989; Graen & Uhl-Bien, 1995). In another study on leadership teams, a four-level concept of team compatibility was constructed. Based upon some empirical research in international joint ventures in China, the four levels of cross-cultural leadership compatibility were identified (Wang, 1999): 1. Style compatibility: this has three indicators: cultural awareness in the partnership, team readiness for interaction, and task supportiveness for team goals. 2. Competency compatibility: this has three indicators: team network building, competence developing and utilizing, and group information sharing. 3. Commitment compatibility: this has three indicators: goal involvement, team attachment, and career development. 4. Performance compatibility: this also has three indicators: cultural adaptability, team accountability, and organizational capability. The different levels of compatibility represent the phases of leadership team development in joint ventures. Particularly, it is closely related to the degree of



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cultural diversity in the composition of top management teams. Recent longitudinal studies show that a certain level of cultural diversity in the top management team is a healthy mechanism for developing effective leadership teams and managerial practices in international joint ventures in China. When the business develops into the settling down phase, it is especially crucial to keep the level of cultural diversity high and to strengthen HR and new culture building of the company in order to promote the process of multicultural leadership team development (Wang & Schneider, 2001). Organizational Justice, Entrepreneurship and Organizational Performance Other recent active areas in I/O psychology in China are the organizational justice analysis in joint ventures and the entrepreneurship in township companies. In a survey of local employees of joint-venture hotels in China, it was found that procedural and performance-based distributive justice was related to job satisfaction, but interactive justice was not. Senior managers reported a lower level of procedural and interactional justice, and they regarded their pay as less fair than did those in the state-owned hotels in China (Leung, Smith, Wang, & Shun, 1996; Wang, 1998). Entrepreneurship in Chinese companies was another topic in recent research. In a field study on entrepreneurship and organizational performance among 200 executives in the Chinese township companies, Zhou (2001) identified six key elements of entrepreneurship: achievement motivation, opportunity capture, uncertainty tolerance, independent operation, risk-taking, and internal locus of control. Among them, achievement motivation, opportunity capture, and uncertainty tolerance were significantly correlated with organizational performance. The relationship was moderated by self-efficacy, and affected by both company development phase and teams’ strategies. In general, three strategies for organization development were proposed and tested: 1. Personnel and competence strategy: this strategy focuses on facilitating values, motivation, attitudes, skills; enhancing cross-cultural competence and performance; and implementing adaptive training programs, team reward schemes and career development plans. 2. Systems and structural strategy: this strategy emphasizes increasing structural compatibility across organizational levels; developing formal communication networks; and restructuring the personnel selection process and performance appraisal systems. 3. Participation and organizational strategy: this strategy concentrates on improving team commitment and organizational culture; modifying organizational communication and interpersonal coordination; and aiming for a higher level of competence utilization in management.


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COMPETENCY ASSESSMENT AND PERSONNEL SELECTION One of the recent significant developments in industrial and organizational psychology in China has been the active research and applications in personnel assessment and selection. This is closely related to the recent changes in personnel management and human resource development in various Chinese organizations. Personnel Assessment in the 1980s In the 1980s, most research in personnel assessment focused upon changing the traditional way of evaluating enterprise leaders by personal impressions or political affiliations only and upon building up a comprehensive and scientific assessment system for cadre selection and promotion (Wang, 1996; 1997a). As an important cultural characteristic of Chinese society, the moral character factor was found to be a highly valued broad term in leadership assessment, including personal characteristics such as honesty, integrity, positive attitudes, team cooperation, and organizational commitment (Peterson, 1988). A number of studies used new methods such as assessment centers, management situational simulation tests, and task–diary job analysis based on management functions by evaluating verbal ability, written communication ability, interpersonal ability, delegating ability, organizing ability, analytic ability, management creativity and policy implementation ability as well as job evaluation and job ranking for the compensation design (Lu, 1986; Wu, 1986; Zhang, 1988; Wang, E. P., 1996). Recent Shift of Focus in Assessment and Selection The focus of recent studies in personnel assessment and selection has moved from applicant characteristics analysis to a competence–performance analysis and to a group approach to evaluation, for example, a role-set method of multilevel measurement in many industries and governmental departments (Smith & Wang, 1996; Wang, 2001a). More and more research in personnel assessment has been carried out on the basis of work-oriented competency modeling. In a recent project of the national assessment systems development, a leadership competence model with six key components was formulated to include four culture-general functional competencies (planning, organizing, leading, controlling) and two culture-specific competencies (relationship and teamwork competence). This model has been tested using situational scenario design with critical incidents among 3200 middle-level managers from Chinese enterprises (Wang, 2001a). In addition, a national executive assessment system is under development by a group of professors from various universities in China. This system is more comprehensive, competence-based, and technically more situational than



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that of any other personnel assessment systems developed so far. The system includes modules of occupational moral quality (integrity, value and commitment), and motivation (achievement, organizational, relationship motives), occupational personality (conscientiousness, emotional adaptation, group compatibility), managerial skills (strategic decisions, organizing and coordinating, motivational and directing, process monitoring) and managerial performance (behavioural performance, task performance, business performance). There are some methodological improvements compared with the previous assessment systems developed in China. For example, situational judgment questions are used to measure competencies; scenario design is adopted to capture work values and motivational tendencies; and critical incident behaviours were adopted in the measurement design on the basis of real life structured interview and indepth case analysis. After pilot testing, this system will be used for selecting officials and managers all over China. Methodological Considerations in Assessment and Selection As Wang (1996) pointed out, despite great progress in research on assessment and selection both at home and abroad, there were some methodological concerns in personnel assessment research in China: 1. The quality of assessment instruments. Most of the instruments were built upon job analysis results. There are few validation studies on those predictors using real performance indicators. 2. The control or elimination of the social desirability factor in leadership assessment. Many items in leadership assessment instruments were related to highly socially desirable concepts. It is crucial to control possible bias in question design and ratings. 3. The training in psychometric methods and rating skills. For the new leadership and personnel assessment practice, there has been a great need of training in personnel psychological theories, assessment methods and techniques such as structured interview and situational judgment testing to eliminate rating errors and judgment bias. In the recent national assessment systems development, three other methodological considerations have been made in testing managerial competencies: forced-choice design, behaviour-oriented design, and predictor–criterion linkage design. The forced-choice design was used in multichoice questions in which the applicant was asked to make their forced choice for both most likely behaviour and least likely behaviour out of a fouritem multichoice question. In most tests at work, critical incident behaviour was sampled and used in designing scenarios and case situations for national assessment systems.


274 INTERNATIONAL REVIEW OF INDUSTRIAL AND ORGANIZATIONAL PSYCHOLOGY 2002 MANAGERIAL COMPETENCY STRUCTURE As the nationwide economic reform is making great progress, attracting, selecting, keeping and developing qualified leaders and key-position employees has become a major pressing issue among various enterprises including stateowned (SOEs), township firms and joint venture companies. Criteria for Selecting Competent Managers and Entrepreneurs Selecting more skilled entrepreneurs and managers has become one of the main tasks for strategic development in various types of companies. In general, there are four criteria for selecting those candidates: 1. Ideologically and politically qualified, law-abiding. 2. A deep sense of responsibility, career-minded and good management abilities. 3. Ability to make correct decisions in accordance with market changes. 4. Being familiar with the business; armed with modern management knowhow and basic knowledge of finance, science and technology and laws. Those criteria are being operationalized and built into assessment indicators and selection systems. Competence Structure and the Chinese Context Most of recent research on personnel assessment and selection has focused upon assessing managerial competencies among managers, particularly among top management and executives. Many companies have made efforts to ensure effective HRM functions. The utility of job analysis depends much on how to analyze and use this information and this is seen as the key step for personnel selection (Cascio, 1992; Gatewood & Field, 1994), especially if the job analysis is more comprehensive, competence-based and strategy-oriented. When McClelland (1973) proposed the idea of competence, he included components such as motivation, traits, self-concepts, attitudes or values, content knowledge, cognitive and behavioural skills, or any individual characteristic that can be reliably measured and shown to differentiate superior from average performers. Fleishman, Wetrogan, Uhlman, and Marshall-Mies (1995) noted that the term often refers to a mixture of knowledge, skills, abilities, motivation, beliefs, values, and interests. However, what will be the competency structure under the Chinese context? What are the key issues in leadership competency structure? What are the main organizational constraints in utilizing managerial competencies in China? In a joint research project, 221 Chinese top managers from 180 enterprises participated in a survey of managerial competencies (Wang & Kakabadse, 2001). The results



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revealed six reliable managerial competency factors: (1) change uncertainty, (2) people performance, (3) communication feedback, (4) independence, (5) work motivation, and (6) leadership skills. These managerial competency factors were proved to have close relationships with the five business relationship factors: teamwork, relationship improvement, commitment improvement, short- and long-term organizational issues. Some organizational factors had significant effects on the managerial competencies and business relations. In addition, a qualitative analysis on open-ended questions indicated a close relationship of managerial competency with organizational strategies and performance as a top executive. Managerial Competency Modeling Many recent studies in China have focused upon managerial ability and competencies (e.g., Feng, 1998; Wakabayashi & Chen, 1999; Wang, L., Li & Leung, 1999; Wei & Zhang, 1999; Wang 2001a). Wang and Schneider (2001) conducted a 3-year longitudinal research project examining the dynamics of multicultural leadership team development. With an emphasis on cross-cultural managerial value orientation and a competency–performance framework, four key competencies were found to be crucial for working in multicultural leadership teams in joint ventures: cultural competence, achievement competence, decision competence and team competence. In a recent study on managerial competency modeling for assessment and selection, Wang and Chen (2001) used a strategic and hierarchical analysis technique and conducted leadership critical incident analysis to formulate a LISREL model of managerial competency structure. The basic idea was to link work activity, competencies, and work context with strategic objectives. The leadership competency structure is based on job requirements according to the strategic objectives in the organizations. A competence–performance model of leadership is used as a framework. A structured interview among 148 managers was conducted to generate critical behavioural descriptions and a questionnaire was designed for surveys among a sample of 420 managers and their deputy managers from various companies in China. Both criticality and frequency of leadership competencies for manager and deputy positions were analyzed. Based upon the results from the structured interview and managerial job analysis, a tentative model of five dimensions of personal characteristics and managerial performance for managerial competency was proposed: ● Moral quality: leadership integrity, work values, job commitment. ● Personality: conscientiousness, emotional stability, group compatibility, extraversion, openness. ● Motivation: achievement motive, power motive, and relationship motive. ● Managerial skills: strategic decision-making, relationship coordination, empowerment and facilitation, business monitoring, and innovation.


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● Managerial performance: performance.

behavioural,

functional,

organizational

The general results of structural equation modeling showed that there was an implicit managerial competency mental model behind the assessment and personnel decisions. Specifically, there were a few key components underlying the first-order factorial structure. The relationship-based constructs gathered around the second-order structure. Table 8.1 presents the structure of both first- and second-order competency factors. As we can see from Table 8.1, under the Chinese context, relationship-based competencies didn’t appear to be independent first-order factors but fell behind and formed a second-order factorial structure of managerial competency, indicating that under the Chinese setting, relationship-based constructs seem to be dominating the competency modeling process and may affect the general mental model of assessment. The analysis of the relationship between competence components and performance showed that moral quality, personality and motivation were composed into second-order factor 1 and the three managerial skills became second-order factor 2. Both of them were significantly correlated with managerial performance. Table 8.1

Factorial structure of managerial competencies in China

Components

First-order competencies

Moral quality

Work values Job commitment

Personality

Conscientiousness Emotional stability Openness

Competency factors

Second-order competencies Leadership integrity

Second-order Factor 1

Group compatibility Extraversion

Motivation

Achievement motive Power motive

Relationship motive

Managerial skills

Strategic decision-making skill Empowerment/facilitation skill Business monitoring skill

Second-order Factor 2

Managerial performance

Behavioural performance Functionsl performance Organizational performanc

Task performance

Relationship coordination skill Innovation skill

Contextual performance

Relationship Competence and Guanxi Orientation In a recent review of Chinese management studies, Tsui, Farh and Xin (2000) identified six guanxi bases: (1) being related to each other; (2) belonging to the same political party; (3) being former colleagues; (4) being former classmates; (5) being former neighbours; and (6) sharing a natal origin. The results also suggest that guanxi is more pervasive and important in lateral than in vertical



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dyads, indicating that relationship-based constructs are more likely to be connected with networks and across other aspects of work behaviour or competence. In another study involving more than 250 employees, Liang (2000) demonstrated a multidimensional structure of relationship (or guanxi) orientation on the basis of literature reviews and field interviews. The four dimensions of relationship orientation are: task accomplishment, harmony maintenance, social support, and information channel. Among them, task accomplishment is demonstrated as a habitual tendency of solving problems through various kinds of relationship and social networks; harmony maintenance shows conflict avoidance in interpersonal interactions; social support represents a relationship behaviour in obtaining sentimental or task support from other people, whereas information channel means the impression of management behaviour through various types of information channels. The four dimensions of relationship orientation are interdependent with harmonyseeking as a core of the constructs.

CROSS-LEVEL COMPETENCY REQUIREMENTS Job requirements and relevant developmental components are closely related to the organizational context and levels of positions (McCauley, Ruderman, Ohlott, & Morrow, 1994; Wang, 1996; Lindell, Clause, Brandt, & Landis, 1998). Recent research on leadership assessment and selection has also been conducted in identifying different competence requirements across levels of the organization, say general managers and deputy managers, so as to provide evidence for a hierarchical model of assessment and selection (Wang & Chen, 2001). Moral Qualities According to the ratings by general managers and deputy managers on the importance and frequencies of managerial competencies in relation to the position requirements, there are significant differences in moral qualities (leadership integrity, values and job commitment). The main conceptual aspects of values in this study are centered around individualistic orientation and collectivistic orientation (Bond, 1996). Especially in the importance rating of leadership integrity, it was seen as more important for deputy managers than for general managers. Personality Traits and Motivation The data analysis of personality dimensions showed that general managers were required to have higher openness than deputy managers if they wanted to work effectively. In addition to this dimension, there is no significant


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difference among other dimensions of personality in importance and frequency ratings. Among the motives for management, the requirement of a relationship motive is significantly different between general managers and deputy managers in the frequency rating. General managers need more relationship motive than deputy managers do. Also it is more important for general managers to have higher motives for achievement and relationship than deputy managers do in a successful management. However, in terms of motive for power, deputy managers seemed to require a higher level than that of general managers in both importance and frequency ratings. For further studies, it will be useful to distinguish individual-oriented achievement motivation and social-oriented achievement motivation in terms of achievement goal and achievement behaviour, as was suggested in a recent review (Yu, 1996). Managerial Competency Comparing the means between general managers and deputy managers, it was found that general managers were required to have higher levels of strategic decision competence, empowerment competence, and innovation competence. But in assessing relationship coordination and management supervision competence, the deputy managers showed higher scores in the ratings than those of general managers. Performance Criteria Performance criteria have three dimensions: behavioural performance, functional performance, and organizational performance. The analysis showed that deputy managers had higher scores than those of general managers in requirements of behavioural performance and functional performance in both importance and frequency ratings, whereas general managers were required to have higher organizational performance.

GENERAL CONCLUSION: IMPLICIT COMPETENCY MODELING Recent research in I/O psychology in China has largely emphasized managerial competencies of top and senior managers by using job analysis and other assessment and survey methods. Several conclusions could be made based on this review. First, the Chinese business environment has had significant impact upon work behaviour. It is important to link research with corporate strategy, organizational objectives, and organization culture. Recent areas of industrial and organizational psychology in China are more related to the economic reform activities such as the structure of ownership and management systems, em-



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ployment and career systems, personnel management systems, motivational mechanism of compensation systems, and international management and technological innovations. Second, several new research perspectives have been proved to be effective in conducting I/O psychology research in China: developing culture-based conceptions of key constructs in research, focusing upon performance-based leadership compatibility and team effectiveness, and emphasizing organizational justice, entrepreneurship and organizational strategies and performance. Third, there is an implicit competency modeling process underlying personnel assessment and selection. Relationship-based and team-oriented constructs are spread across various kinds of competencies and gather at the second-order structure of managerial competencies. This implicit managerial competency modeling process is crucial for personnel assessment and decision-making. Fourth, there are different job requirements of competencies and performance criteria between general managers and deputy managers. For general managers, it is most important to have higher levels of leadership integrity, openness, extraversion, motive for relationship, strategic decision skill, empowerment skill, and innovation skill. On the other hand, it is most important for deputy managers to have higher levels of values, job commitment, motives for power and achievement, relationship coordination, and process control. As Li and Tsui (2000) pointed out in their overview of management and organizations in the Chinese context, the term ‘Chinese context’ has a dual meaning: a location implying a unique institutional, legal and economic environment directly affecting organizational behaviour, and a cultural variable transcending geographical boundaries with a pattern of behaviour, beliefs, assumptions and values affecting employees’ behaviour. From this perspective, managerial competency models and relevant contingencies are crucial to further understanding of management practices and the human resources process in China.

ACKNOWLEDGMENT This study is supported by a grant from the Chinese National Science Foundation.

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INDEX A type control, governance 82, 94 absenteeism, older workers 43, 44–5 activity inhibition, executives 193 adaptability, older workers 64 addictive behaviors, unemployment 6 administrative system, employment relationships 87, 95, 97 age factors coping with job loss 19 older workers see older workers agreeableness innovation 126, 127, 131, 134, 136 older workers 36 alcohol use, unemployment 6 anger, job loss 4 anxiety innovation 130 job loss 3, 5, 7 assessment centers, expatriates 153 assessment practices China 272–3, 274–5, 277–8 for innovation 135 attitudes cross-cultural studies 153, 156, 157–9 older workers 43, 46–7, 59 values distinguished 218–20 see also organizational commitment; satisfaction attraction–selection–attrition theory 135–6 attributions, job loss 5 authoritarian model, workforce governance 84 Baby Boomers 56, 65–6 balanced contracts 103 behavioral modeling, values 254–5 biographical profiles, executives 205–11 bridge employment, older workers 60 bureaucratic control, workforce governance 82 business complexity, executives 189 career management

China 266 older workers 55–9, 63 career plateauing, older workers 56–7 Carnegie, Andrew 207 categorical approach, demographic research 41 change, organizational 64–6, 160–1, 189 China business environment 278–9 career management 266 compensation systems 266–7 employment systems 266 international management 267 management systems 265–6 motivational mechanisms 266–7 ownership structure 265–6 personnel management systems 266 technological innovations 267 competency assessment 272–3, 274–5 competency modeling 275–6, 279 cross-level competency 277–8, 279 culture-based research constructs 267–71 entrepreneurship 271, 274 implicit competency modeling 279 international management 267, 270–1 managerial competency structure 274–7 new research perspectives 267–71, 279 organizational justice 271 organizational performance 271 personnel selection 272–3, 274–5, 277–8 Churchill, Winston 206 citizenship behaviors older workers 38–9, 47 and values 238–9, 240 clan control, workforce governance 82, 99 class factors, job loss outcomes 12


284


Cleveland Clinic executive health program 199 cluster analysis, HR system construction 88 cognitive abilities innovation 121–2, 123, 134, 135 older workers 35, 37, 39, 48, 51 cognitive evaluation theory, innovation 132 cognitive structure, values 222 collective bargaining model, workforce governance 84 commitment, organizational see organizational commitment commitment strategy, workforce governance 82–3, 93–4 commitment system 85, 87, 94, 96, 101 compensation cross-cultural studies 171–2 and employment relationships see inducement–contribution systems older workers 62 systems in China 266–7 competency assessment, China 272–3, 274–5, 277–8 competency modeling, China 275–6, 279 competition, executive health 188–90 complexity executive health 189 older workers 47–8 compositional approach, demographic research 42 conflict, work groups 45 value congruence 247, 248, 250 conflict management, cross-cultural studies 161–4 conscientiousness innovation 126, 127–8, 131, 134 older workers 36 constriction, obsolescence 53 control, locus of, job loss 5 control-oriented models, workforce governance 82, 83–4, 94, 99 control systems, employment relationships 85, 87, 94, 96, 101 Cooper Clinic model, executive health 197 coping with career plateauing 57 classification 8–9

cross-cultural studies 167–8 definition 8 with job loss 2 antecedents 10, 15, 21 coping alignment 20 coping efficacy 20 coping goals 11–12, 13–14, 15, 20, 22 coping resources 15, 16, 17, 18–20, 21 demographic variables 12, 15, 16, 17, 19–20 facet appraisals 15, 16, 17–21, 22 future research 11–12, 22–3 life-facet model 14–21, 22 measures 9–10, 21 older workers 59 outcomes 10–11, 12–14, 15, 20–1, 22 personal meaning 11–14, 15 social support 7, 10, 18 work-role centrality 15, 16, 17–18, 19–20, 21 work-role contexts 13 with obsolescence 53 older workers 53, 57, 59 theory of 8 coping alignment 20 coping efficacy 20 coping goals, job loss 11–12, 13–14, 22 life-facet model 15, 20, 22 coping resources 15, 16, 17, 18–20, 21 corporate culture see organizational culture correspondence, worker–work environment 41 cost control system 85, 87, 94, 96, 101 co-workers age diversity 44–6, 47 employment relationships 108 values 247, 255–6 see also groups creative thinking 117, 118, 134 see also innovation creativity, definition 116 cross-cultural leadership teams, China 270 cross-cultural studies 145–6, 173–5 attitudes 153, 156, 157–9 conflict management 161–4 development 148–50 dual-career families 172–3


INDEX future research 174–5 gender issues 170–3 group research 165 health 173 impression management 166 justice 169–70 leadership 161–5 motivation 156, 171 negotiation 165–6 occupational stress 166–9, 172 organizational development 159–61 organizational psychology 156–70 pay differentials 171–2 performance appraisal 153–5 personnel psychology 147–56 safety 173 selection practices 147–8, 150–3 sexual harassment 172 team building 159–61 terminology 146–7 training 148–50, 161, 174–5 values 156–7, 171 cross-national studies, use of term 146 see also cross-cultural studies culture cross-cultural research see crosscultural studies definition 146 executive 194–5 organizational 225–9 cultures as configurations 232–3, 254 employment relationships 108 and organizational outcomes 242–3 processes of influence 254 sharedness 229–32 culture-based research constructs, China 267–71 Curtis, John, Jr 209–10 daily routine appraisals 16, 17, 18–19 demographic research 41–2 older workers see older workers demographic variables, coping with job loss 12, 15, 16, 17, 19–20 depression executives 203, 206 job loss 3, 4, 5, 7, 8, 13 development cross-cultural 148–50 older workers 52–5, 63

285

diet, nutrition assessment 203–4 displaced workers, job loss see job loss divergent thinking (DT) 120–1, 126, 129, 130 downsizing, older workers 57–9 see also job loss dual-career families 172–3 dual-task performance, older workers 54–5 Duke executive health program 197, 199, 202–4 early retirement 58–9 economic appraisals, coping 16, 17, 19 economic impacts, job loss 2–3 antecedents of coping 10 coping goals 13 life-facet model of coping 17, 19 economic resources, life-facet model 18, 19 education factors, job loss 19 Eisner, Michael 209 emotional conflict, work groups 45 emotional maturity, model of 199 emotional stability, innovation 129–30 employee involvement models 83, 84 employment commitment 18 employment contracts 78, 79 employment relationships 77–8 balanced approaches 89, 91, 92, 93 antecedents 106, 108 conceptual gaps 102–3 outcomes 98 conceptual gaps 102–5 employment contracts as 78, 79 from employee’s perspective 79–80 see also psychological contracts from employer’s perspective 80, 109 see also human resource management systems; inducement–contribution approaches; workforce governance human resource management systems 78, 81, 84–9, 90 determinants of selection 100–2 outcomes 94–9 psychological contracts 103–4, 108 inducement–contribution approaches 78–9, 89–93, 105–6 antecedents 106–8, 109


286


employment relationships (cont.) determinants of selection 99–100 joint bargaining 104–5 outcomes 98 perception matching 103–4, 106, 108–9 psychological contracts 102–9 integrative model 105–10 mixed approaches 93, 98, 102, 108 outcomes of chosen approaches 93–9 psychological contracts 78, 79–80, 102–9 selection determinants 99–102, 109–10 unbalanced approaches 91, 92, 93 antecedents 106, 108 conceptual gaps 102–3 determinants of selection 99–100 outcomes 98 workforce governance models 78, 80–5, 89, 93–4, 99 employment systems, China 266 entrepreneurship, China 271, 274 ergonomic workplaces, older workers 49, 51 ethical character, executives 196, 207–8, 210–11 executive health 187 biographical profiles 205–11 culture 194–5 dimensions 196 empirical research 205 epidemiological research 205 health risk management 212 importance 188–91, 204 mental health frameworks 193–4, 199–200 motivation 191–3 preventive medicine frameworks 197–9, 202–4, 212 psychoanalytic frameworks 193–4, 199–200 recommendations 211–13 responsibility for 212–13 stress theories 200–2 executive health model 197, 198 executive values 223–4 expatriates dual-career families 172 impression management 166 job satisfaction 157–8 justice 170

organizational commitment 159 performance appraisal 154, 155 safety 173 selection 147–8, 150–3 training 148–50, 174–5 experience older workers 36, 54 openness to 36, 126–7, 131, 134 expressive writing, job loss 7–8 extraversion, innovation 126, 128–9, 130, 131, 134 eye changes, age-related 49 facet appraisals, job loss 15, 16, 17–21, 22 factor analysis, HR system construction 88 families, cross-cultural studies 153, 172–3 family support, job loss 7 feedback, performance see performance appraisal review systems; performance evaluations financial impacts, job loss 2–3 antecedents of coping 10 coping goals 13 life-facet model of coping 17, 19 flexible production system 86, 87, 94, 96 Gates, Bill 207–8 gender differences, job loss 3, 4, 5, 10, 19 gender issues, cross-cultural studies 170–3 Geneplore model, innovation 121–2 generative thinking 121–2, 123, 124, 134, 135 genius, innovation 121 global firms, expatriate staff see expatriates globalization, executive health 188–9 governance models 78, 80–5, 89, 93–4, 99 Graham, Katharine 206 gross national product (GNP), workers’ values 157 group-based work, older workers 44–7 groups cross-cultural studies 165 negotiation 165–6 team building 159–61


INDEX values 224–5, 256 employee–group congruence 247, 248, 250 group outcomes 237, 241–2 group–organization congruence 249, 253 influence on individuals 244, 245 guanxi orientation 276–7 health executive 187–213 and job loss 3, 4, 5–6, 7 coping goals 13 interventions 8 life-facet model of coping 17, 18–19 outcomes of coping 11 health-related behaviors, unemployment 6 hearing, age-related change 49 high-commitment management (HCM) system 88, 95, 97 high-involvement work practices 101 high-performance organizations (HPO) 87, 95, 96 high-performance work systems 85, 86, 87 determinants of selection 100–2 outcomes 94, 96, 99 homeostatic theory, stress 200 hostility executives 193 job loss 4 human-capital-enhancing system 87, 95, 97 human resource management systems China 266 employment relationships 78, 81, 84–9, 90 determinants of selection 100–2 outcomes 94–9 psychological contracts 103–4, 108 Iacocca, Lee 210 idea generation, for innovation 117, 118 cognitive abilities 121–2, 134, 135 knowledge 123, 124 identity, older workers 40, 50–1 impression management, cross-cultural studies 166

287

income, job loss effects 2, 3, 17, 19 inducement–contribution systems, employment relationships 78–9, 89–93, 105–6 antecedents 106–8, 109 determinants of selection 99–100 joint bargaining 104–5 outcomes 98 perception matching 103–4, 106, 108–9 psychological contracts 102–9 industrial model, workforce governance 83–4, 99 information processing, older workers 35, 37, 48 information technology China 267 older workers 49, 54, 55 innovation definition 116–17 person-level 115–16 defining 116–17 future research 136–7 intelligence 119–23, 126, 134, 135 knowledge 122, 123–4, 133, 134 management of 136 motivation 131–3, 134, 136 organizational practice 135–6 personality 125–31, 134, 135, 136 predictors 133–5 theoretical framework 117–19 innovative systems, employment relationships 87, 95, 97, 101 intelligence, innovation 119–23, 126, 134, 135 intercultural sensitivity 151–2 internal labor market determinants 100 internal system, employment relationships 86–7, 94–5, 96 international firms, expatriate staff see expatriates international management, China 267, 270–1 interpersonal skills, executives 193, 207 introversion, innovation 129 investment theory, innovation 119, 131–2 involvement-oriented models human resource management 101 workforce governance 83–4, 94 job complexity, older workers

47–8


288


job loss 1 coping with 2, 8–9 antecedents 10, 15, 21 future research 11–12, 22–3 goals 13–14, 15, 20, 22 life-facet model 14–21, 22 measures 9–10, 21 older workers 59 outcomes 10–11, 12–13, 15, 20–1, 22 personal meaning 11–14, 15 social support 7, 10, 18 interventions 2, 7–8 job-search efforts 2 antecedents of coping 10 coping goals 13–14 outcomes of coping 10–11, 13–14 social support 7, 10 older workers 57–9 outcomes 2, 21 of coping 10–11, 12–14, 15, 20–1, 22 economic 2–3 personal meaning of loss 12–13 physical health 5–6, 7 psychological 2–5, 7, 8 social 3, 6–7 rates of 1 survivor responses 59 unemployment differentiated 1 job obsolescence, older workers 52–3 job performance see performance job pressure, executives 189, 190 job satisfaction see satisfaction job scope, older workers 47–8 job-search activity, displaced workers 2 antecedents of coping 10 coping goals 13–14 outcomes of coping 10–11, 13–14 social support 7, 10 job security, executives 190 Johns Hopkins executive health program 199 joint ventures, China 267, 270–1 justice China 271 cross-cultural studies 169–70 older workers 64–5 Kennedy, Joseph P. 208 knowledge innovation 122, 123–4, 133, 134

older workers

37, 48, 52, 53

labor markets, internal (ILMs) 100 layoffs see job loss leaders, values 223–4 congruence 250–1 cross-level influences 243–5, 255–6, 257 leadership China 269–71, 272, 274–5, 277–8, 279 cross-cultural studies 161–5 employment relationships 108 learning, by older workers 52, 54–5 Levinson’s executive health model 200 life events stressors, job loss see job loss life-facet model, coping with job loss 14–21, 22 low-performance organizations (LPO) 87, 95, 96 management systems, China 265–6 see also human resource management systems; inducement–contribution systems; workforce governance models managers career plateauing 56–7 China compensation 266–7 competency assessment 272–3, 274–5, 277–8 competency modeling 275–6, 279 cross-level competency 277–8, 279 guanxi orientation 276–7 leadership 269–71 organizational justice 271 performance criteria 278 relationship competency 276–7 selection 272–3, 274–5, 277–8 employee age diversity 44 health see executive health values 223–4 congruence 250–1 cross-level influences 243–5, 255–6, 257 marital status, and job loss 10 market control, workforce governance 82, 99 market-type system 86, 87, 94–5, 96 mass production system 86, 87, 94, 96


INDEX Mayo Clinic executive health program 199 McNamara, Robert S. 210 medical evaluation, executives 203 Menninger model, mental health 199–200 mental health executives 193–4, 196, 197, 199–200, 203 biographical profiles 206, 208–10 job loss 3, 4, 5, 7 coping goals 13 interventions 8 outcomes of coping 11 moral qualities, selection in China 277–8 Morgan, John P., Jr 207 motivation China 266–7, 278 cross-cultural studies 156, 171 and executive health 191–3 innovation 131–3, 134, 136 older workers 36–7, 48, 51, 61, 63 multinational firms, expatriate staff see expatriates mutual investment relationships 91, 92 antecedents 108 conceptual gaps 103 outcomes 98 nations, cross-national studies 146 negotiation, cross-cultural studies 165–6 networking, abuse of 208 neuroticism innovation 126, 129–30, 131 older workers 36 normative model, workforce governance 81–2 norms, values distinguished 218, 219–20 nutrition assessment 203–4 obsolescence, older workers 52–3 occupational level factors, coping with job loss 12, 19 occupational stress see stress occupational stress theory 200–1 older workers coping with job loss 19 organizational contexts 31–2, 66–7 age perceptions 39–40

289

career management 55–9, 63 change 64–6 cognitive abilities 35, 37, 39, 48, 51 cognitive demands 48, 51 development 52–5, 63 downsizing 57–9 future research 67 group age diversity 44–6, 47 group-based work 46–7 individual-based work 46–7 individual transitions 64–6 job complexity 47–8 job loss 57–9 job scope 47–8 job’s motivational attributes 48, 61 knowledge 37, 48, 52, 53 knowledge requirements 48 motivation 36–7, 48, 51, 63 new employment relationships 62, 65 obsolescence 52–3 onion model see onion model performance 37–41 personality 36, 39, 63 physical demands 48–9 physical fitness 35, 49 physiology 35, 49 psychological contracts 65 research approaches 41–2 retirement 58–61 rewards 62 self-management 63, 65 stereotypes 49–51, 64 structure of work 46–7 supervisor age 42, 43–4 training 52–5 work adjustment theory 41 workplace design 49, 51 onion model 32–4, 66–7 contextual factors 41–52 future research 67 individual transitions 64–6 new employment relationships 62, 65 organizational change 64–6 organizational policies 52–61 self-management 63, 65 workers’ characteristics 34–41 openness to experience innovation 126–7, 131, 134 older workers 36


290


optimism, job loss 4–5 organizational change cross-cultural studies 160–1 executives 189 older workers 64–6 organizational citizenship behaviors (OCB) definition 38 older workers 38–9, 47 and values 240 organizational commitment China 268 cross-cultural studies 152–3, 158–9 older workers 43–4 and values 240–1, 245–6, 250, 252 organizational configurations, cultures as 232–3, 254 organizational contexts, older workers see older workers, organizational contexts organizational culture 225–9 cultures as configurations 232–3, 254 employment relationships 108 and organizational outcomes 242–3 processes of influence 254 sharedness 229–32 organizational development China 271 cross-cultural studies 159–61 organizational justice China 271 cross-cultural studies 169–70 older workers 64–5 organizational stress theory 201 overinvestment approach, employment relationships 91, 92, 93 antecedents 106 conceptual gaps 103 determinants of selection 99 outcomes 98 ownership structure, China 265–6 part-time employment, older workers 60, 61 pay differentials, cross-cultural 171–2 perceived intelligence 122–3 performance, older workers 35, 37–41 performance appraisal review systems (PARS) 153–5 performance evaluations innovation 132

supervisor–subordinate age diversity 43, 44 performance measures, employment relationships 98–9 person–environment fit theory, stress 201 personal resources, life-facet model of coping 18 personality China 267–8 Chinese selection requirements 277–8 and executive health 191–4 five-factor model 36, 125–30, 131 innovation 125–31, 134, 135, 136 older workers 36, 39, 63 three-factor model 130–1 and values 222 physical dimension, executive health 196 physical fitness executives 204 older workers 35, 49 physical health executives 196, 197, 202–4, 205 biographical profiles 206, 209, 210 and job loss 5–6, 7, 11, 17, 18–19 physiological appraisals, coping 16, 17, 18–19 physiological factors innovation 130 older workers, organizational contexts 35, 49 power, and executive health 192, 208 preventive medicine frameworks, executives 197–9, 202–4, 212 preventive stress management theory 201 proactivity, older workers 63 production systems, employment relationships 86, 87, 94, 96 prosocial behavior see citizenship behaviors protestant work ethic (PWE) 157 psychoanalytic frameworks, executive health 193–4, 199–200 psychological appraisals, coping 16, 17, 18–19 psychological contracts employment relationships 78, 79–80, 102–9 older workers 65


INDEX psychological health, executives 193–4, 196, 197, 199–200, 203 biographical profiles 206, 208–10 see also psychological impacts, job loss psychological impacts, job loss 2–5, 7 coping goals 13 interventions 8 life-facet model of coping 17, 18 outcomes of coping 11 religiosity 15 psychosocial screening, executives 203 psychoticism, innovation 130–1 quasi spot contracts

89, 91, 92, 103

racial stereotypes 50, 51 relational contracts 86, 102–3 determinants of selection 100 relational demography 42, 43–4, 45 relationship competence, China 276–7 relationship satisfaction, job loss 3 religiosity see spirituality retirement policies 58–61 rewards cross-cultural 170, 171–2 and employment relationships see inducement–contribution systems older workers 62 risk-takers, cross-cultural studies 153 Rockefeller, John D., Sr 208–9 role stressors cross-cultural studies 169 executives 201 safety cross-cultural studies 173 health risk management 212 and individuals’ values 239 salaried model, workforce governance 83–4, 99 satisfaction cross-cultural studies 157–8 older workers 39, 41, 61 and values 240, 241, 245–6, 250, 252 satisfactoriness, older workers 41 selection practices China 272–3, 274–5, 277–8 cross-cultural 147–8, 150–3 for innovation 135–6 and values 256, 257

291

self-appraisal, cross-cultural 154, 155 self-determination, workforce governance 84 self-efficacy job loss 6, 8, 20 older workers, performance 39 self-esteem job loss 4–5, 10 older workers 39 self-evaluation, older workers 39 self-identity, older workers 40, 50–1 self-management, older workers 63, 65 self-selection, for innovation 135–6 sense of purpose appraisals 16, 17, 18 sensitivity, intercultural 151–2 sexual harassment 172 sharedness, values 229–32, 246–7 skills development, older workers 53–4, 63 skills obsolescence, older workers 52, 53 social appraisals 16, 17, 18–19 social comparison, older workers 45–6 social impacts, job loss 3, 6–7, 10, 17, 18–19 social learning theory 255 social loafing 165 social networks 169, 208 social resources, coping 18–19 social support cross-cultural studies 168–9 job loss 7, 10, 18 sojourners see expatriates spiritual appraisals 16, 17, 18 spiritual health, executives 196, 207–8, 210–11 spirituality, job loss 14–15, 17, 18–19 spouse support, job loss 7 stereotype-threat 51 stereotypes age-related 49–51, 64 racial 50, 51 strains, cross-cultural studies 166–8, 169 stress cross-cultural studies 166–9, 172 executives 200–2, 203 of job loss see job loss stress management 7–8, 167, 201 Structure of Intellect (SI) theory 120 see also divergent thinking suicide, executives 193–4, 203, 209–10


292


supervisors cross-cultural performance appraisal 154, 155 employment relationships 108 subordinate age diversity 43–4 values 223–4 congruence 248, 250–1 cross-level influences 243–5, 255–6, 257 survivor responses, layoffs 59 task conflict, work groups 45 task performance, older workers 35, 38, 54–5 team-based work, older workers 44–7 teams China 269–71 cross-cultural studies 159–61, 165–6 values employee–group congruence 247, 248, 250 group outcomes 237, 241–2 group–organization congruence 249, 253 influence on individuals 244, 245 technological innovations China 267 design for older workers 49 executives 189 training older workers 54, 55 Templeton, Sir John 210–11 time structure, job loss 5 traditional system 87–8, 95, 97 trainer organizations 87, 96 training cross-cultural 148–50, 161, 174–5 older workers 52–5 transactional contracts 86, 100, 102–3 transitional production system 86, 94, 96 trust, cross-cultural studies 159 turnover, older workers 43, 44–5, 64 type A and Z control 82, 94 underinvestment approach, employment relationships 91, 92 antecedents 108 conceptual gaps 102, 103 determinants of selection 99–100 unemployment job loss compared 1 job loss effects see job loss

rates of 1 unemployment benefits 3 utilitarian model, workforce governance 81 values 217 attitudes distinguished 218–20 congruence 235, 246–53, 257 cross-cultural studies 156–7, 171 cross-level influences 234–5, 243–6, 254–6, 257 definitions 218 employment relationships 108 future research 257 general 220 groups 224–5, 256 employee–group congruence 247, 248, 250 group outcomes 237, 241–2 group–organization congruence 249, 253 influence on individuals 244, 245 individuals 222, 256, 257 affective responses 240–1, 245–6, 250, 252–3, 256 congruence 246–53, 256 influences on 243–6, 253–6 work behavior 235–40, 253–6 influence in organizations 233–56 interaction–value congruence 235, 246–53, 256, 257 levels of analysis 221 group 224–5 individuals 222 organizational 225–33 supervisors 223–4 norms distinguished 218, 219–20 organizational 225–33, 256–7 congruence 249, 251–3 influence on individuals 244, 245–6 organizational outcomes 237, 242–3 processes of influence 254 relationships among domains 220–1 sharedness 229–32, 246–7 specific 220 supervisors 223–4 congruence 248, 250–1 cross-level influences 243–5, 255–6, 257 within-level influences 234, 235–43


INDEX violence, job loss 7 vision, age-related changes

49

wealth creation, executives 190–1 work adjustment theory 41 workforce governance models 78, 80–5, 89, 93–4, 99 Index compiled by Liz Granger

293

work performance see performance workplace design 49, 51 work-role centrality, job loss 15, 16, 17–18, 19–20, 21 Z type control, governance 94

82,


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International Review of Industrial and Organizational Psychology CONTENTS OF PREVIOUS VOLUMES VOLUME 16—2001 1.

Age and Work Behaviour: Physical Attributes, Cognitive Abilities, Knowledge, Personality Traits and Motives Peter Warr

2. Organizational Attraction and Job Choice Scott Highouse and Jody R. Hoffman 3. The Psychology of Strategic Management: Diversity and Cognition Revisited Gerard P. Hodgkinson 4. Vacations and Other Respites: Studying Stress on and off the Job Dov Eden

1 37

65

121

5. Cross-Cultural Industrial/Organisational Psychology Peter B. Smith, Ronald Fischer and Nic Sale

147

6. International Uses of Selection Methods Sue Newell and Carole Tansley

195

7. Domestic and International Relocation for Work Daniel C. Feldman

215

8. Understanding the Assessment Centre Process: Where Are We Now? Filip Lievens and Richard J. Klimoski

245

VOLUME 15—2000 1.

Psychological Contracts: Employee Relations for the Twenty-first Century? Lynne J. Millward and Paul M. Brewerton

1


296

CONTENTS OF PREVIOUS VOLUMES

2. Impacts of Telework on Individuals, Organizations and Families—A Critical Review Udo Konradt, Renate Schmook and Mike Mälecke

63

3. Psychological Approaches to Entrepreneurial Success: A General Model and an Overview of Findings Andreas Rauch and Michael Frese

101

4. Conceptual and Empirical Gaps in Research on Individual Adaptation at Work David Chan

143

5. Understanding Acts of Betrayal: Implications for Industrial and Organizational Psychology Jone L. Pearce and Gary R. Henderson

165

6. Working Time, Health and Performance Anne Spurgeon and Cary L. Cooper

189

7. Expertise at Work: Experience and Excellent Performance Sabine Sonnentag

223

8. A Rich and Rigorous Examination of Applied Behavior Analysis Research in the World of Work Judith L. Komaki, Timothy Coombs, Thomas P. Redding, Jr, and Stephen Schepman

265

VOLUME 14—1999 1.

Personnel Selection Methods Jesus ´ F. Salgado

1

2. System Safety—An Emerging Field for I/O Psychology Babette Fahlbruch and Bernhard Wilpert

55

3. Work Control and Employee Well-being: A Decade Review Deborah J. Terry and Nerina L. Jimmieson

95

4. Multi-source Feedback Systems: A Research Perspective Clive Fletcher and Caroline Baldry

149

5. Workplace Bullying Helge Hoel, Charlotte Rayner and Cary L. Cooper

195

6. Work Performance: A Multiple Regulation Perspective Robert A. Roe

231


CONTENTS OF PREVIOUS VOLUMES 7. A New Kind of Performance for Industrial and Organizational Psychology: Recent Contributions to the Study of Organizational Citizenship Behavior Dennis W. Organ and Julie Beth Paine 8. Conflict and Performance in Groups and Organizations Carsten K. W. De Dreu, Sophia Harinck and Annelies E. M. Van Vianen

297

337

369

VOLUME 13—1998 Team Effectiveness in Organizations, West, Borrill and Unsworth; Turnover, Maertz and Campion; Learning Strategies and Occupational Training, Warr and Allan; Meta-analysis, Fried and Ager; General Cognitive Ability and Occupational Performance, Ree and Carretta; Consequences of Alternative Work Schedules, Daus, Sanders and Campbell; Organizational Men: Masculinity and Its Discontents, Burke and Nelson; Women’s Careers and Occupational Stress, Langan-Fox; Computer-Aided Technology and Work: Moving the Field Forward, Majchrzak and Borys

VOLUME 12—1997 The Psychology of Careers in Organizations, Arnold; Managerial Career Advancement, Tharenou; Work Adjustment: Extension of the Theoretical Framework, Tziner and Meir; Contemporary Research on Absence from Work: Correlates, Causes and Consequences, Johns; Organizational Commitment, Meyer; The Explanation of Consumer Behaviour: From Social Cognition to Environmental Control, Foxall; Drug and Alcohol Programs in the Workplace: A Review of Recent Literature, Harris and Trusty; Progress in Organizational Justice: Tunneling Through the Maze, Cropanzano and Greenberg; Genetic Influence on Mental Abilities, Personality, Vocational Interests and Work Attitudes, Bouchard.

VOLUME 11—1996 Self-Esteem and Work, Locke, McClear and Knight; Job Design, Oldham; Fairness in the Assessment Centre, Baron and Janman; Subgroup Differences Associated with Different Measures of Some Common Job-Relevant Constructs, Schmitt, Clause and Pulakos; Common Practices in Structural Equation Modeling, Kelloway; Contextualism in Context, Payne; Employee Involvement, Cotton; Part-time Employment, Barling and Gallagher; The Interface Between Job and Off-Job Roles: Enhancement and Conflict, O’Driscoll


298

CONTENTS OF PREVIOUS VOLUMES VOLUME 10—1995

The Application of Cognitive Constructs and Principles to the Instructional Systems Model of Training: Implications for Needs Assessment, Design, and Transfer, Ford and Kraiger; Determinants of Human Performance in Organizational Settings, Smith; Personality and Industrial/Organizational Psychology, Schneider and Hough; Managing Diversity: New Broom or Old Hat?, Kandola; Unemployment: Its Psychological Costs, Winefield; VDUs in the Workplace: Psychological Health Implications, Bramwell and Cooper; The Organizational Implications of Teleworking, Chapman, Sheehy, Heywood, Dooley and Collins; The Nature and Effects of Method Variance in Organizational Research, Spector and Brannick; Developments in Eastern Europe and Work and Organizational Psychology, Roe

VOLUME 9—1994 Psychosocial Factors and the Physical Environment: Inter-Relations in the Workplace, Evans, Johnasson and Carrere; Computer-Based Assessment, Bartram; Applications of Meta-Analysis: 1987–1992, Tett, Meyer and Roese; The Psychology of Strikes, Bluen; The Psychology of Strategic Management: Emerging Themes of Diversity and Cognition, Sparrow; Industrial and Organizational Psychology in Russia: The Concept of Human Functional States and Applied Stress Research, Leonova; The Prevention of Violence at Work: Application of a Cognitive Behavioural Theory, Cox and Leather; The Psychology of Mergers and Acquisitions, Hogan and Overmyer-Day; Recent Developments in Applied Creativity, Kabanoff and Rossiter

VOLUME 8—1993 Innovation in Organizations, Anderson and King; Management Development, Baldwin and Padgett; The Increasing Importance of Performance Appraisals to Employee Effectiveness in Organizational Settings in North America, Latham, Skarlicki, Irvine and Siegel; Measurement Issues in Industrial and Organizational Psychology, Hesketh; Medical and Physiological Aspects of Job Interventions, Theorell; Goal Orientation and Action Control Theory, Farr, Hofmann and Ringenbach; Corporate Culture, Furnham and Gunter; Organizational Downsizing: Strategies, Interventions, and Research Implications, Kozlowski, Chao, Smith and Hedlund; Group Processes in Organizations, Argote and McGrath

VOLUME 7—1992 Work Motivation, Kanfer; Selection Methods, Smith and George; Research Design in Industrial and Organizational Psychology, Schaubroeck and Kuehn; A Consideration of the Validity and Meaning of Self-Report Measures of Job Conditions, Spector; Emotions in Work and Achievement, Pekrun and Frese; The Psychology of Industrial Relations, Hartley; Women in Management, Burke and McKeen; Use of Background Data in Organizational Decisions,


CONTENTS OF PREVIOUS VOLUMES

299

Stokes and Reddy; Job Transfer, Brett, Stroh and Reilly; Shopfloor Work Organization and Advanced Manufacturing Technology, Wall and Davids

VOLUME 6—1991 Recent Developments in Industrial and Organizational Psychology in People’s Republic of China, Wang; Mediated Communications and New Organizational Forms, Andriessen; Performance Measurement, Ilgen and Schneider; Ergonomics, Megaw; Ageing and Work, Davies, Matthews and Wong; Methodological Issues in Personnel Selection Research, Schuler and Guldin; Mental Health Counseling in Industry, Swanson and Murphy; Person–Job Fit, Edwards; Job Satisfaction, Arvey, Carter and Buerkley

VOLUME 5—1990 Laboratory vs. Field Research in Industrial and Organizational Psychology, Dipboye; Managerial Delegation, Hackman and Dunphy; Cross-cultural Issues in Organizational Psychology, Bhagat, Kedia, Crawford and Kaplan; Decision Making in Organizations, Koopman and Pool; Ethics in the Workplace, Freeman; Feedback Systems in Organizations, Algera; Linking Environmental and Industrial/Organizational Psychology, Ornstein; Cognitive Illusions and Personnel Management Decisions, Brodt; Vocational Guidance, Taylor and Giannantonio

VOLUME 4—1989 Selection Interviewing, Keenan; Burnout in Work Organizations, Shirom; Cognitive Processes in Industrial and Organizational Psychology, Lord and Maher; Cognitive Style and Complexity, Streufert and Nogami; Coaching and Practice Effects in Personnel Selection, Sackett, Burris and Ryan; Retirement, Talaga and Beehr; Quality Circles, Van Fleet and Griffin; Control in the Workplace, Ganster and Fusilier; Job Analysis, Spector, Brannick and Coovert; Japanese Management, Smith and Misumi; Causal Modelling in Organizational Research, James and James

VOLUME 3—1988 The Significance of Race and Ethnicity for Understanding Organizational Behavior, Alderfer and Thomas; Training and Development in Work Organizations, Goldstein and Gessner; Leadership Theory and Research, Fiedler and House; Theory Building in Industrial and Organizational Psychology, Webster and Starbuck; The Construction of Climate in Organizational Research, Rousseau; Approaches to Managerial Selection, Robertson and Iles; Psychological Measurement, Murphy; Careers, Driver; Health Promotion at Work, Matteson and Ivancevich; Recent Developments in the Study of Personality and Organizational Behavior, Adler and Weiss


300

CONTENTS OF PREVIOUS VOLUMES VOLUME 2—1987

Organization Theory, Bedeian; Behavioural Approaches to Organizations, Luthans and Martinko; Job and Work Design, Wall and Martin; Human Interfaces with Advanced Manufacturing Systems, Wilson and Rutherford; Human–Computer Interaction in the Office, Frese; Occupational Stress and Health, Mackay and Cooper; Industrial Accidents, Sheehy and Chapman; Interpersonal Conflicts in Organizations, Greenhalgh; Work and Family, Burke and Greenglass; Applications of Meta-analysis, Hunter and Rothstein Hirsh

VOLUME 1—1986 Work Motivation Theories, Locke and Henne; Personnel Selection Methods, Muchinsky; Personnel Selection and Equal Employment Opportunity, Schmit and Noe; Job Performance and Appraisal, Latham; Job Satisfaction and Organizational Commitment, Griffin and Bateman; Quality of Worklife and Employee Involvement, Mohrman, Ledford, Lawler and Mohrman; Women at Work, Gutek, Larwood, and Stromberg; Being Unemployed, Fryer and Payne; Organization Analysis and Praxis, Golembiewski; Research Methods in Industrial and Organizational Psychology, Stone

International Review of Industrial and Organizational Psychology, 2002 (International Review of Industrial and Organizational Psychology)

International Review of Industrial and Organizational Psychology, 2006 (International Review of Industrial and Organizational Psychology)

International Review of Industrial and Organizational Psychology