High‐performer turnover and firm performance: The moderating role of human capital investment and firm reputation

Research has shown a complex relationship between turnover and firm performance. Not only does it matter who leaves (e.g., high‐performing versus low‐performing employees), but the context also stands to influence this effect in complex ways. We apply human capital theory, social capital theory, and the cost–benefit perspective to propose two boundary conditions to the high‐performer turnover and firm performance relationship. Specifically, we predict that the negative impact of high‐performer turnover on firm performance will be the strongest for reputable firms and for firms who invest less in human capital (e.g., selection, training, and incentive‐based pay). We present data from 155 South Korean firms that support the hypothesized model. We discuss findings in terms of current and future theory, practical implications, and subsequent research needs. Copyright © 2012 John Wiley & Sons, Ltd.     

Consequential cognition: Exploring how attribution theory sheds new light on the firm‐level consequences of product recalls

It is unclear why some firms suffer greater negative consequences than others following a product recall. To shed light on this question, we extend attribution theory to the firm level to explore how consumers engage in an attributional process following product recalls that shapes their responses to firms. Integrating attribution theory and the demand side theoretical perspective, we assert that consumer judgments of responsibility toward manufacturers are shaped by causal data regarding the locus of causality (i.e., manufacturer or supplier) and controllability (i.e., prior knowledge or awareness) of a recalled product's potential for harm. We then examine the impact of product recall characteristics on judgments of responsibility and firm‐level outcomes using an experimental test involving responses from 320 subjects. Our findings suggest that judgments of responsibility are attributed to the manufacturing firm more when consumers are given causal information indicating that the firm is the source of, or is aware of, a product's defects. The results also indicate that judgments of responsibility can have costly firm‐level consequences in the form of reputational damage, diminished consumer purchase intentions, and increased legal damage recommendations. We discuss theoretical contributions, practical implications, and opportunities for further research.     

Relation between occupational safety management and firm performance

Occupational accidents severely deteriorate human capital, and hence negatively affect the productivity and competitiveness of countries. But despite this, we still observe a scarcity of preventive practices, an unsatisfactory management commitment and an absence of safety culture among Spanish firms. The result is evident in firms’ high accident rates. This situation is a consequence of the general belief among firms that investing in safety is a cost, and hence has negative repercussions for their competitiveness. The current work aims to identify good practices in safety management, and analyse the effect of these practices on a set of indicators of organisational performance. For this, we first carry out an exhaustive literature review, and then formulate a series of hypotheses. We then test the proposed model on a sample of 455 Spanish firms. Our findings show that safety management has a positive influence on safety performance, competitiveness performance, and economic-financial performance. Hence they provide evidence of the compatibility between worker protection and corporate competitiveness.     

Intra‐individual variability in job complexity over time: Examining the effect of job complexity trajectory on employee job strain

Drawing on gestalt characteristics theory, we advance the literature on the effect of job complexity on employee well‐being by considering intra‐individual variability of job complexity over time. Specifically, we examine how the trend, or trajectory, of job complexity over time can explain unique variance of employee job strain. Across two longitudinal data sets, we consistently find that, with the average level of job complexity during a given period held constant, a positive job complexity trajectory (i.e., an increasing trend in complexity) is associated with higher employee job strain. Based on job‐demand‐control theory and the exposure‐reactivity model, we further establish that job autonomy and employee emotional stability jointly moderate the relationship between job complexity trajectory and employee job strain. Specifically, for employees with high emotional stability, job autonomy mitigates the job strain brought by positive job complexity trajectory, whereas for employees with low emotional stability, job autonomy does not help to reduce the adverse effect of the increasing trend. These findings not only contribute to extend the understanding of the job complexity – strain relationship, but also suggest a promising, dynamic avenue to study the effects of work characteristics on employee well‐being as well as other outcomes. Copyright © 2016 John Wiley & Sons, Ltd.     

Behaving safely under pressure: The effects of job demands,resources, and safety climate on employee physical and psychosocial safety behavior

Introduction: Previous research has shown that employees who experience high job demands are more inclined to show unsafe behaviors in the workplace. In this paper, we examine why some employees behave safely when faced with these demands while others do not. We add to the literature by incorporating both physical and psychosocial safety climate in the job demands and resources (JD-R) model and extending it to include physical and psychosocial variants of safety behavior. Method: Using a sample of 6230 health care employees nested within 52 organizations, we examined the relationship between job demands and (a) resources, (b) safety climate, and (c) safety behavior. We conducted multilevel analyses to test our hypotheses. Results: Job demands (i.e., work pressure), job resources (i.e., job autonomy, supervisor support, and co-worker support) and safety climate (both physical and psychosocial safety climate) are directly associated with, respectively, lower and higher physical and psychosocial safety behavior. We also found some evidence that safety climate buffers the negative impact of job demands (i.e., work–family conflict and job insecurity) on safety behavior and strengthens the positive impact of job resources (i.e., co-worker support) on safety behavior. Conclusions: Regardless of whether the focus is physical or psychological safety, our results show that strengthening the safety climate within an organization can increase employees' safety behavior. Practical implication: An organization's safety climate is an optimal target of intervention to prevent and ameliorate negative physical and psychological health and safety outcomes, especially in times of uncertainty and change.     

Social support and managerial affective responses to job stress

This research examines the moderating or buffering effects of two social support variables—support from the work group and from the supervisor—on the relationships of role conflict and ambiguity to intrinsic job satisfaction, job involvement and job anxiety. Data were collected from a sample of 89 middle-lower managerial personnel in a large, heavy equipment manufacturing firm in the Midwest. The moderated regression technique was used in data analysis. Significant interactions were obtained between the role variables and both social support variables. The results were in the predicted direction for positive work outcomes (i.e. job satisfaction and involvement) and contrary to prediction for negative work outcome (i.e. job anxiety). Implications of the findings for future research, the management of stress and leadership behaviour are discussed.     

Job insecurity in managers: Antecedents and consequences

To date, popular accounts and systematic studies of the effects of job insecurity have focused exclusively on firms in acute crisis. In contrast, this study examines perceptions of the reactions to insecurity as a chronic, ambiguous threat. None of the 1291 managers surveyed was currently facing layoff, but half worked for firms that had laid off managers in the previous five years and half worked in a stable, expanding firm. As in previous studies, concern about any aspect of job insecurity was associated with decreased personal well-being and deterioration of work behavior and attitudes. However, only a small minority of managers were seriously worried about imminent job loss, with substantially more anxious about a deterioration in working conditions and long-term security.     

Relationship of safety climate perceptions and job satisfaction among employees in the construction industry: the moderating role of age

This study examines the degree to which construction sector employees perceive that safety is important in their organizations/sites and how job satisfaction affects these perceptions when age is introduced as a moderator variable. Two-way analysis of variance demonstrated that job satisfaction has a strong effect on perceived management commitment to work safety and that this relationship was moderated by respondents’ age. Job satisfaction was associated with perceived accident rate and safety inspection frequency, but the proposed role of age in this linkage was not confirmed. Consequently, the findings indicated that by increasing the level of job satisfaction, perceptions of these safety climate aspects proved to be more positive. The conclusion is that these relationships could further lead to a lower percentage of accidents and injuries in the workplace and better health among employees. A significant relationship between job satisfaction, age and perceived co-workers’ commitment to work safety was not found.     

Does homesickness undermine the potential of job resources? A perspective from the work–home resources model

Rapid economic development in recent decades has resulted in a considerable increase in the number of people working far away from their home locations. Homesickness is a common reaction to the separation from home. Our research uses the work–home resources model to explain how the experience of homesickness can undermine the positive effect of job resources on job performance (i.e., task performance and safety behavior). In addition, we hypothesize that emotional stability and openness are key resources that can buffer the negative interference of homesickness with the job resources–performance relationship. We conducted two studies to test our hypotheses. Study 1 was a two‐wave longitudinal study using a migrant manufacturing worker sample. In this study, homesickness was measured at the between‐person level, and performance was measured three months later. Study 2 was a daily diary study conducted in a military trainee sample. In this study, homesickness was measured at the within‐person level to capture its fluctuations over 20 days, and daily job performance was assessed using supervisor ratings. Both studies showed evidence of the hypothesized moderating effect of homesickness and three‐way interaction effects of job resources, homesickness, and key resources (i.e., emotional stability and openness) on task performance and safety behavior.     

Temporary jobs and the severity of workplace accidents

Introduction. From the point of view of workplace safety, it is important to know whether having a temporary job has an effect on the severity of workplace accidents. We present an empirical analysis on the severity of workplace accidents by type of contract. Method. We used microdata collected by the Italian national institute managing the mandatory insurance against work related accidents. We estimated linear models for a measure of the severity of the workplace accident. We controlled for time-invariant fixed effects at worker and firm levels to disentangle the impact of the type of contract from the spurious one induced by unobservables at worker and firm levels. Results. Workers with a temporary contract, if subject to a workplace accident, were more likely to be confronted with severe injuries than permanent workers. When correcting the statistical analysis for injury under-reporting of temporary workers, we found that most of, but not all, the effect is driven by the under-reporting bias. Conclusions. The effect of temporary contracts on the injury severity survived the inclusion of worker and firm fixed effects and the correction for temporary workers' injury under-reporting. This, however, does not exclude the possibility that, within firms, the nature of the work may vary between different categories of workers. For example, temporary workers might be more likely to be assigned dangerous tasks because they might have less bargaining power. Practical implications. The findings will help in designing public policy effective in increasing temporary workers' safety at work and limiting their injury under-reporting.     

Routinization of job context and job content as related to employees' quality of working life: A study of Canadian nurses

The literature on routinization of work is both ambiguous and equivocal when its impact on quality of working life is considered. The classical management literature suggests that routinization of work has a positive influence on individual performance and by implication on the quality of working life resulting from the overall prosperity generated. However, more recent literature on job characteristics and job design argues that routinization of work has a negative impact on individual performance as it suppresses creative expression on the job. This paper suggests that these mixed findings are due to an inadequate theoretical grasp of the concept of routinization and presents empirical evidence which attempts to clarify the ambiguity. Data were collected from 1148 nurses working in anglophone hospitals in the greater Montreal area in the form of a field survey questionnaire. The results indicated that nurses who worked routine shifts perceived higher levels of quality of working life compared to those on non-routine shifts. The results also indicated that nurses who experienced high routinization in job content perceived lower levels of quality of working life compared to those nurses who experienced low routinization in job content. Implications of these findings for future research are discussed.     

Beyond the mean: Understanding firm‐level consequences of variability in diversity climate perceptions

We develop and test an organizational‐level model of the consequences of diversity climate for company performance. Drawing from affective events theory and the organizational climate literature, we highlight the role of idiosyncrasies in employees' diversity climate perceptions. Specifically, we consider diversity climate strength (i.e., agreement in employees' climate perceptions) as a boundary condition of diversity climate's organizational‐level effects and expect high climate strength to be particularly beneficial in demographically diverse organizations. Moreover, we introduce collective positive affect as an underlying mechanism of diversity climate's conditional effects on company performance. Hypotheses are tested in a study of 82 German small‐and‐medium‐sized companies with 13,695 surveyed employees. Results show a moderated mediation relationship where diversity climate is only positively related to organizational performance (via collective positive affect) at relatively high diversity climate strength. Although this finding holds for both demographically diverse and homogeneous organizations, post hoc analyses provide initial evidence that a strong climate only helps to realize the effects of diversity climate on collective positive affect when members of age‐ and gender‐related demographic subgroups converge in their climate perceptions. Our study contributes to a better understanding of diversity climate as an effective lever for managing diversity.     

The moderating effects of job control and selection,optimization, and compensation strategies on the age–work ability relationship

Work ability describes employees' capability to carry out their work with respect to physical and psychological job demands. This study investigated direct and interactive effects of age, job control, and the use of successful aging strategies called selection, optimization, and compensation (SOC) in predicting work ability. We assessed SOC strategies and job control by using employee self‐reports, and we measured employees' work ability using supervisor ratings. Data collected from 173 health‐care employees showed that job control was positively associated with work ability. Additionally, we found a three‐way interaction effect of age, job control, and use of SOC strategies on work ability. Specifically, the negative relationship between age and work ability was weakest for employees with high job control and high use of SOC strategies. These results suggest that the use of successful aging strategies and enhanced control at work are conducive to maintaining the work ability of aging employees. We discuss theoretical and practical implications regarding the beneficial role of the use of SOC strategies utilized by older employees and enhanced contextual resources at work for aging employees. Copyright © 2012 John Wiley & Sons, Ltd.     

Family–work conflict and job performance: A diary study of boundary conditions and mechanisms

In this study, we used a within‐person daily research paradigm to examine the relationship between daily family–work conflict (FWC) and daily job performance. On the basis of theory on dynamic behavior, we hypothesized that concentration serves as a mechanism through which daily FWC impairs daily job performance. We further predicted that psychological detachment from work during time‐off (i.e., mentally switching off) buffers the negative relationship between daily FWC and daily job performance. Ninety‐five employees completed daily surveys over one workweek. Multilevel modeling results showed that daily FWC was negatively associated with daily job performance and that concentration mediated this relationship. Furthermore, general psychological detachment, but not daily psychological detachment, buffered the negative relationship between daily FWC and daily job performance. The current findings suggest that daily FWC has negative performance implications and that the general level rather than the daily level of psychological detachment from work helps alleviate the negative implications. Copyright © 2013 John Wiley & Sons, Ltd.     

Team knowledge exchange: How and when does transformational leadership have an effect?

In this study, we examined how and when transformational leadership affected team knowledge exchange. Taking a goal pursuit perspective, we hypothesized two parallel mediating mechanisms—team knowledge goal generation and team knowledge goal striving—linking transformational leadership to team knowledge exchange. In addition, we investigated whether team-level team-member exchange served as a boundary condition that qualified the effects of transformational leadership on team knowledge goal generation and striving. We tested our hypotheses using time-lagged data from 118 work teams of a large Chinese manufacturing firm. Our findings provided support for the proposed parallel mediating mechanisms (i.e., team knowledge goal generation and team knowledge goal striving) that linked transformational leadership to team knowledge exchange. In addition, we found that team-level team-member exchange could strengthen the positive effect of transformational leadership on team knowledge exchange via team knowledge goal generation. By taking the novel lens of team goal pursuit, this study contributes to the literature on leadership and teams by shedding light on how transformational leadership triggers the goal pursuit process of team knowledge exchange.     

Being trusted: How team generational age diversity promotes and undermines trust in cross‐boundary relationships

We examine how demographic context influences the trust that boundary spanners experience in their dyadic relationships with clients. Because of the salience of age as a demographic characteristic as well as the increasing prevalence of age diversity and intergenerational conflict in the workplace, we focus on team age diversity as a demographic social context that affects trust between boundary spanners and their clients. Using social categorization theory and theories of social capital, we develop and test our contextual argument that a boundary spanner's experience of being trusted is influenced by the social categorization processes that occur in dyadic interactions with a specific client and, simultaneously, by similar social categorization processes that influence the degree to which the client team as a whole serves as a cooperative resource for demographically similar versus dissimilar boundary spanner–client dyads. Using a sample of 168 senior boundary spanners from the consulting industry, we find that generational diversity among client team members from a client organization undermines the perception of being trusted within homogeneous boundary spanner–client dyads while it enhances the perception of being trusted within heterogeneous dyads. The perception of being trusted is an important aspect of cross‐boundary relationships because it influences coordination and the costs associated with coordination. © 2015 The Author Journal of Organizational Behavior Published by John Wiley & Sons Ltd     

Societal individualism–collectivism and uncertainty avoidance as cultural moderators of relationships between job resources and strain

The job demands–resources model is a dominant theoretical framework that describes the influence of job demands and job resources on employee strain. Recent research has highlighted that the effects of job demands on strain vary across cultures, but similar work has not explored whether this is true for job resources. Given that societal characteristics can influence individuals' cognitive structures and, to a lesser extent, values in a culture, we address this gap in the literature and argue that individuals' strain in reaction to job resources may differ across cultures. Specifically, we theorize that the societal cultural dimensions of individualism–collectivism and uncertainty avoidance shape individual‐level job resource–strain relationships, as they dictate which types of resources (i.e., individual vs. group preference‐oriented and uncertainty‐reducing vs. not) are more likely to be valued, used, or effective in combating strain within a culture. Results revealed that societal individualism–collectivism and uncertainty avoidance independently moderated the relationships between certain job resources (i.e., job control, participation in decision making, and clear goals and performance feedback) and strain (i.e., job satisfaction and turnover intentions). This study expands our understanding of the cross‐cultural specificity versus generalizability of the job demands–resources model.     

The effects of managerial and employee attributions for corporate social responsibility initiatives

Although corporate social responsibility (CSR) can affect employees, we know little about how it affects them. Employees' interpretation of CSR is important because of the paradoxical nature of CSR. When firms operate in ways that seem counter to their nature (i.e., pursuit of social good rather than profit), the causal attributions of affected employees are crucial to understanding their work‐related behavior, as is the role of contextual factors such as leadership processes in shaping these attributions. Drawing from attribution and social learning theories, we develop a multilevel social influence theory of how CSR affects employees. We integrate managers as second observers in the baseline actor (i.e., firm)—observer (i.e., employee) dyad, whereas most attribution theory research has focused on single actor–observer dyads. Multisource field data collected from 427 employees and 45 managers were analyzed using hierarchical linear modeling. Managers' genuine (self‐serving) CSR attributions are positively related to employees' genuine (self‐serving) CSR attributions; and the strength of the relationship between managers' and employees' genuine CSR attributions depends on managers' organizational tenure. Employees' genuine CSR attributions also are positively related to employee advocacy, whereas—interestingly—employees' self‐serving CSR attributions do not appear to harm employee advocacy. Copyright © 2017 John Wiley & Sons, Ltd.     

Employee's turnover intentions and job destination choices

Employee's job destination choices, as part of the turnover process, reflect options for internal organizational or external labor market moves. A sample of 477 employees in 15 firms was used to decipher how bio‐demographic, job, plant, and labor market characteristics are related to five alternative job destinations. Multivariate logistic regression and odds–ratio analyses compared the five models confirming that different sets of variables influence each of the destination choices. Coworkers' intentions have a major significant impact on all destination options. The findings have implications for present turnover models, career paths, and promotion progression in the firm. Copyright © 2001 John Wiley & Sons, Ltd.     

Cross‐level effects of demography and diversity climate on organizational attachment and firm effectiveness

We studied the impact of demographic diversity on individual attachment and firm unit performance in a relatively diverse organization. We implemented cross‐level regression to study gender and race/ethnic categorical, relational, and organizational demography in a sample of 26 units part of a regional restaurant chain. At the individual level, we found that diversity climate (DC) moderates the impact of relational and categorical demography on affective organizational commitment, organizational identification, and intention to quit. At the organizational level, we found that DC moderates the impact of organizational diversity on firm productivity and return on profit. We discuss the importance of organizational DC as organizational context on individual attachment, and implications for firm effectiveness in diverse organizations. Copyright © 2007 John Wiley & Sons, Ltd.