Parsing organizational culture: How the norm for adaptability influences the relationship between culture consensus and financial performance in high‐technology firms

The relationship between organizational culture and financial performance remains elusive even though researchers have studied it for some time. Early research suggested that a strong culture that aligns members' behavior with organizational objectives boosts financial performance. A more recent view is that, because strong cultures promote adherence to routines and behavioral uniformity, they are less effective in dynamic environments. We suggest that the relationship between culture and performance can be reconciled by recognizing that culture encompasses three components: (1) the content of norms (norm content); (2) how widely members agree about norms (culture consensus); and (3) how intensely organizational members hold particular norms (norm intensity). We hypothesize that “strong cultures”—where a high consensus exists among members across a broad set of culture norms—can contribute to better financial performance even in dynamic environments if norm content intensely emphasizes adaptability. We test this hypothesis in a sample of large firms in the high‐technology industry. Firms characterized by higher culture consensus and intensity about adaptability performed better three years later than did those characterized by lower consensus, lower intensity about adaptability, or both. We discuss how parsing culture into content, consensus, and intensity advances theoretical and empirical understanding of the culture–performance relationship. Copyright © 2014 John Wiley & Sons, Ltd.     

Does participative leadership enhance work performance by inducing empowerment or trust? The differential effects on managerial and non‐managerial subordinates

We examined whether participative leadership behavior is associated with improved work performance through a motivational process or an exchange‐based process. Based on data collected from 527 employees from a Fortune 500 company, we found that the link between superiors' participative leadership behaviors and subordinates' task performance and organizational citizenship behavior toward organizations (OCBO) was mediated by psychological empowerment (motivational mediator) for managerial subordinates. Yet, for non‐managerial subordinates such as supporting and front‐line employees, the impact of participative leadership on task performance and OCBO was mediated by trust‐in‐supervisor (exchange‐based mediator). Implications for theories and practices are discussed. Copyright © 2009 John Wiley & Sons, Ltd.     

Which comes first,organizational culture or performance? A longitudinal study of causal priority with automobile dealerships

Prior research supports a link between organizational culture and performance but generally falls short of establishing causality or determining the direction of a culture–performance (C‐P) relationship. Using data collected from 95 franchise automobile dealerships over 6 years, we studied longitudinal culture–performance relationships to determine whether culture or performance has causal priority, or alternatively, whether a reciprocal relationship exists. Results from cross‐lagged panel analyses indicate that culture “comes first,” consistently predicting subsequent ratings of customer satisfaction and vehicle sales. Furthermore, the positive effect of culture on vehicle sales is fully mediated by customer satisfaction ratings. Copyright © 2015 John Wiley & Sons, Ltd.     

Two roads to effectiveness: CEO feedback seeking,vision articulation,and firm performance

Humble leadership is attracting increased scholarly attention, but little is known about its effects when used in conjunction with less humble leadership behaviors that rely on a perception of the leader as confident and charismatic. This study contrasts the effects on top management team (TMT) potency and organizational performance of a more humble (feedback seeking) and a less humble (vision) CEO leader behavior. We hypothesize that CEO feedback seeking increases TMT potency and firm performance by communicating to TMT members that the organization values their input and encouraging their own feedback seeking, whereas CEO vision articulation influences these outcomes by fostering greater clarity about the firm's direction, and an enhanced ability to coordinate efforts within the TMT. CEOs who have not developed a vision can achieve a similar positive impact on TMT potency and firm performance by seeking feedback. In a sample of CEOs and TMT members from 65 firms, both CEO feedback seeking and vision articulation exhibit positive direct relationships with firm performance. However, only feedback seeking displays an indirect effect on performance via TMT potency. Finally, CEO feedback seeking has its strongest effects on firm performance and TMT potency for CEOs who are not seen as having a vision.     

Individualism-collectivism as an individual difference predictor of organizational citizenship behavior

Though it appears intuitively appealing that individual differences should be related to a person's decision to perform citizenship behaviors, the search for such individual differences has yet to yield clear results. In this study, data were collected to assess the extent of a relationship between individualism–collectivism as a within culture individual difference and self-reports of organizational citizenship behaviors. Results suggest that if an individual holds collectivistic values or norms, he/she would be more likely to perform citizenship behaviors. In addition, this relationship was found to be robust to common method effects and to the effect of the relationship between procedural justice and OCB. Implications for the way collectivistic tendencies within cultures may be used in organizations are discussed.     

Job engagement,perceived organizational support,high‐performance human resource practices,and cultural value orientations: A cross‐level investigation

Drawing on social exchange theory, we developed and tested a cross‐level model of organizational‐level predictors of job engagement. Specifically, we examined the impact of high‐performance human resource (HR) practices on employee engagement and work outcomes. Based on a sample of 605 employees, their immediate supervisors, and HR managers from 130 companies, our results indicated that high‐performance HR practices were directly related to job engagement as well as indirectly related through employees' perceived organizational support. In turn, job engagement was positively related to in‐role performance and negatively related to intent to quit. Culture was found to act as a critical contextual factor, as our results also revealed that the relationship between HR practices and perceived organizational support was stronger when collectivism was high and when power distance orientation was low. Overall, the findings shed new light on the processes and conditions through which employee work‐related outcomes are enhanced owing to high‐performance HR practices. Copyright © 2015 John Wiley & Sons, Ltd.     

The relationship between multiple levels of learning practices and objective and subjective organizational financial performance

Multi‐level learning approaches suggest that individuals, groups and organizations act both independently and interact dynamically to contribute to organizational performance. We directly examined this proposition in an Australian sample using a longitudinal design that employed subjective and objective financial performance data. Respondents completed a survey that provided details on their individual, team and organizational learning practices (ILP, TLP and OLP, respectively), and self assessed performance compared to 3 years ago. Concurrently, we collected objective performance data (sales/employee numbers) at 3 yearly intervals and averaged these data to create an index. Using hierarchical and moderated regression, we found a positive main effect for OLP with both subjective and objective performance. Main effects for ILP and TLP were not found. Further, we found a significant interaction between ILP and TLP such that the effect of TLP on productivity was better in organizations with less ILP. Three‐way interactions were not found. Overall, these results provide some support for the model. We discuss some limitations of the study and make recommendations for future studies. Copyright © 2009 John Wiley & Sons, Ltd.     

The relationships of distributive justice and compensation system fairness to employee attitudes in international joint ventures

Employee perceptions of the fairness of general corporate systems have thus far not received enough attention in the organizational justice literature. To fill this gap, we examined perceptions of the fairness of the compensation systems of international joint ventures in China. It is argued that perceptions of compensation system fairness are positively related to the three distributive justice dimensions, i.e., performance‐based distributive justice, comparative distributive justice relative to foreign expatriates, and comparative distributive justice relative to local colleagues. Perceptions of compensation system fairness are also hypothesized to mediate the relationships between the three distributive justice dimensions and organizational commitment and turnover intention. A survey of 161 Chinese employees in Sino‐foreign joint ventures found a positive relationship between perceptions of distributive justice and perceptions of compensation system fairness. In particular, compensation system fairness was more strongly associated with performance‐based distributive justice than with the other two distributive justice dimensions based on social comparison. The mediating role of compensation system fairness was strongly supported. Copyright © 2007 John Wiley & Sons, Ltd.     

Interactive effects of impression management and organizational politics on job performance

The purpose of this research was to explore the interactive effect of organizational politics and impression management on supervisor ratings of employee performance. We hypothesized that the negative relationship between organizational politics and supervisor‐rated performance is weaker among employees who are high in impression management than among those low in impression management. Data were collected from a matched sample of 112 white‐collar employees and their supervisors. Results indicated that the interaction of organizational politics and impression management explained a significant incremental amount of variance in supervisor ratings of employee performance. These findings demonstrated that the extent to which an individual engaged in impression management in a non‐political atmosphere may have been a key component to receiving favorable performance ratings. Copyright © 2004 John Wiley & Sons, Ltd.     

Isms and schisms: A meta‐analysis of the prejudice‐discrimination relationship across racism,sexism, and ageism

Racism, sexism, and ageism persist in modern day organizations and may translate into workplace discrimination, which can undermine organizational effectiveness. We provide the first meta‐analysis comparing the relationships between these three types of prejudice (racism, sexism, and ageism) and three types of workplace discrimination (selection, performance evaluation, and opposition to diversity‐supportive policies). Across outcomes, racism was associated with workplace discrimination, whereas sexism was not. Ageism was associated with discriminatory selection and opposition to organizational policies supporting older workers; however, ageism was not related to discriminatory performance evaluation. Consistent with prior research and theory, Implicit Association Test measures were related to subtle discrimination (opposition to diversity‐supportive policies) but not deliberate discrimination (selection and performance evaluation). Finally, prejudice was more strongly associated with discrimination against real as compared with hypothetical targets. Implications for organizational researchers and practitioners are discussed. Copyright © 2017 John Wiley & Sons, Ltd.     

Predicting the form and direction of work role performance from the Big 5 model of personality traits

This research examined the prediction of the form and direction of work role performance from the Big 5 model of personality traits. Nine dimensions of work role performance are created by cross‐classifying the form of work role behavior (proficient, adaptive, and proactive) with the level at which that behavior contributes to effectiveness (individual, team, and organizational). The authors collected self‐report measurements of personality from 1447 government employees and supervisor ratings of performance. Openness to experience and agreeableness had opposing effects on individual proactivity – openness was positively related, whereas agreeableness was negatively related to this dimension. Openness to experience also had opposing effects on the form of work role performance – it was positively related to individual and organizational proactivity but negatively related to team and organizational proficiency. Conscientiousness was a stronger predictor of individual task proficiency than the remaining eight dimensions, whereas the reverse was true for neuroticism. Extraversion was negatively related to individual proficiency. Using a broad taxonomy of performance that incorporates a theoretical framework for distinguishing between constructs shows promise for identifying which personality traits are important for which aspects of work role performance. Copyright © 2011 John Wiley & Sons, Ltd.     

The cross‐level effects of culture and climate in human service teams

This two‐level study of child welfare and juvenile justice case management teams addresses construct, measurement, and composition issues that plague multilevel research on organizational culture and climate. Very few empirical studies have examined both culture and climate simultaneously, and none have provided evidence that culture and climate are distinct or similar constructs. Confirmatory factor analysis (CFA), within‐group consistency analysis (r_wg), between‐group differences (ICC and eta‐squared), and hierarchical linear models (HLM) analysis provide evidence that climate and culture are separate constructs that vary by organizational unit, and are related to work attitudes, perceptions, and behavior. Findings link team‐level culture and climate to individual‐level job satisfaction and commitment, perceptions of service quality, and turnover. Copyright © 2002 John Wiley & Sons, Ltd.     

The interactive relationship of competitive climate and trait competitiveness with workplace attitudes,stress, and performance

There has been a considerable debate about the individual and organizational benefits of competition. Adopting a person–environment fit perspective, this research examined the influence of competition as an interaction between trait competitiveness and competitive climate. Using a sample of information technology workers, competitive climate was considered as both an individual level variable and a workgroup variable. Results show that the effect of competitive climate depended on trait competitiveness and the level at which climate was assessed for four of the outcomes assessed: job satisfaction, organizational commitment, job dedication, and supervisor‐rated task performance. In general, the effect of competitive climate was more negative for individuals lower in trait competitiveness. Competitive psychological climate was associated with greater stress regardless of the level of trait competitiveness but was not directly related to self‐rated task performance. Findings suggest that managers should be cautious in encouraging competitive climate. Copyright © 2007 John Wiley & Sons, Ltd.     

Organizational citizenship behavior in work groups: A team cultural perspective

Although researchers have often found positive relationships between organizational citizenship behavior (OCB) and performance rating, very few studies have scrutinized the team contexts in which such relationships exist. This study examines how OCB influences job performance ratings within different team cultures, as measured by team collectivism and individualism. On the basis of multilevel data collected from 81 teams working at a multinational bank in Hong Kong, team collectivism and individualism were found to moderate the OCB–performance rating relationship such that OCB targeting individuals improved rated performance in highly collectivistic teams only, whereas only organizational OCB produced a significant improvement in highly individualistic teams. The implications of these findings and directions for future research directions are discussed here. Copyright © 2012 John Wiley & Sons, Ltd.     

Leader–member exchange and job performance: The effects of taking charge and organizational tenure

We theorized and tested the mechanisms by which leader–member exchange (LMX) quality is associated with job performance. The results obtained using 212 employee–supervisor pairs from eight Chinese companies indicated that LMX quality had an indirect and positive relationship with taking charge via psychological empowerment and had an indirect and positive relationship with job performance via taking charge. In addition, organizational tenure significantly moderated the relationship between taking charge and job performance, such that the positive effect of taking charge on job performance became weaker as organizational tenure increased. Furthermore, organizational tenure significantly moderated the indirect positive relationship between LMX quality and job performance via taking charge; the indirect effect became weaker as organizational tenure increased. These results suggest that organizations should encourage managers to develop high‐quality LMX with their subordinates, which may make them feel more empowered and engage in more taking charge, and result in better job performance. Copyright © 2014 John Wiley & Sons, Ltd.     

Transformational leadership,relationship quality,and employee performance during continuous incremental organizational change

Although transformational leadership has been investigated in connection with change at higher levels of organizations, less is known about its “in‐the‐trenches” impact. We examined relations among transformational leadership, explicit change reactions (i.e., relationship quality), change frequency, and change consequences (i.e., task performance and organizational citizenship behavior (OCB)) during continuous incremental organizational change at lower hierarchical levels. In a sample of 251 employees and their 78 managers, analyses revealed that the quality of relationships between leaders and employees mediated the influence of transformational leadership on employee task performance and OCB. We also found that change frequency moderated the positive association of relationship quality with task performance and OCB, such that associations were stronger when change frequency was high. Copyright © 2012 John Wiley & Sons, Ltd.     

The moderating effects of political skill on the perceived politics–outcome relationships

Previous research has established that perceptions of organizational politics are associated with negative organizational outcomes. However, this may not hold true for all individuals. We offer subordinate and supervisor political skill, the ability to understand interactions at work and to use that understanding to effectively influence others, as possible moderators. Specifically, this study investigates the impact of both employees' self‐rated political skill and their managers' political skill on job satisfaction, job performance, and manager‐rated commitment. We examined these relationships in an organizational sample of 106 matched dyadic pairs and found mixed support for the joint moderating effect of self and manager political skill on the politics perceptions‐outcome relationships. Strengths, limitations, and directions for future research are discussed. Copyright © 2010 John Wiley & Sons, Ltd.     

Multiple dimensions of human resource development and organizational performance

Building on strategic human resource management literature, this study investigates the effects of various human resource development (HRD) dimensions on organizational performance. We identify four distinct dimensions of HRD that reflect either quantitative or qualitative approaches from either managerial or employee perspectives. Furthermore, we propose that HRD affects organizational performance by shaping employee outcomes, a prevailing but rarely tested assumption. Multi‐source data collected from 207 manufacturing companies at three time points over a 5‐year period largely support our theoretical propositions. A series of structural path analyses confirm that HRD improves employee commitment and competence, which in turn determine the financial performance of the organization. The quantitative dimensions of HRD (resource investment in HRD) predict only employee commitment. By contrast, the qualitative dimensions of HRD (management support for, and perceived benefits of, HRD) enhance both employee commitment and competence. Our analysis also demonstrates synergistic interactions between the quantitative and qualitative dimensions of HRD in predicting employee outcomes. This study elaborates the distinct values of different dimensions of HRD and highlights the significance of employee outcomes as the mediating mechanism between HRD and firm performance. Copyright © 2014 John Wiley & Sons, Ltd.     

Organizational embeddedness,turnover intentions,and voluntary turnover: The moderating effects of employee demographic characteristics and value orientations

To explain why some employees who experience high embeddedness contemplate leaving their organizations and others do not, we examined the moderating effects of employee demographic characteristics (age and gender) and value orientations (individualism and risk aversion) between organizational embeddedness and turnover intentions. Turnover intentions were further expected to increase voluntary turnover. Data were collected from 643 full‐time employees at three points in time over a 12‐month time period in a wide range of organizations in Japan, a relatively low turnover context with little prior embeddedness research. Findings show that gender and risk aversion moderate the relationship between organizational embeddedness and turnover intentions, which in turn predict voluntary turnover. Copyright © 2014 John Wiley & Sons, Ltd.     

Relationship between organizational justice and employee work outcomes: a cross‐national study

This study examined the influence of organizational justice perceptions on employee work outcome relationships as moderated by individual differences that are influenced by societal culture. Power distance, but not country or individualism, moderated the relationships between perceived justice and satisfaction, performance, and absenteeism. The effects of perceived justice on these outcomes were stronger among individuals scoring lower on power distance index, and most of these study participants were in the U.S. (versus Hong Kong) sample. Limitations of the study and the implications of the findings for managing cross‐culturally are discussed. Copyright © 2001 John Wiley & Sons, Ltd.