1. Trang chủ
  2. » Kinh Doanh - Tiếp Thị

Resizing The Organization 13 pps

10 174 0

Đang tải... (xem toàn văn)

THÔNG TIN TÀI LIỆU

Thông tin cơ bản

Định dạng
Số trang 10
Dung lượng 129,54 KB

Nội dung

the candidate can expect in that area of the employment rela- tionship. If the company is confident in what it can offer in that area, the chances of a successful relationship are good. On the other hand, if an employee prioritizes outcomes that the organi- zation will have difficulty providing, the organization may be bet- ter off not to hire that individual. Conclusion At the most basic level, organizations have responded to competi- tive pressures by implementing business strategies (like resizing) that alter the nature of the psychological contract between the organi- zation and its employees. As the psychological contract continues to be transformed, employees frequently perceive their organization as failing to live up to its psychological contract obligations. Resiz- ing efforts make employees more likely to perceive that the rela- tional or socioemotive component of the psychological contract has been violated (Cavanaugh & Noe 1999; De Meuse, Bergmann, & Lester, 2001). Relational elements of the psychological contract focus on the benefits of a long-term relationship built on trust, re- spect, and loyalty. For many employees, resizing denotes a viola- tion of their expectations of job security. For others, it means a violation of the expectation that organizational members will be treated with respect. These perceptions carry major implications for organizations, since recent research suggests that the relational component of the psychological contract contains obligations that employees value most (Lester & Kickul, 2001). If organizational leaders do not address these perceived psychological contract breaches, their organizations are likely to suffer detrimental con- sequences. Previous research has demonstrated that psychological contract breach can adversely affect employee attitudes and be- haviors (Robinson, 1996; Robinson & Rousseau, 1994). Fortunately, organizational change and psychological contract breach do not have to be inescapably tied to one another. Man- agement can take a number of steps to reduce the occurrence or magnitude of perceived psychological contract breach. Most of these steps revolve around efforts to improve the communication occurring among executives, human resource staff, supervisors, and the employees who may be affected the most by the changes. RESIZING AND THE PSYCHOLOGICAL CONTRACT 101 TEAMFLY Team-Fly ® 102 RESIZING THE ORGANIZATION Organizations must build norms of open, honest, and ongoing communication. Resizing organizations cannot avoid resistance to change com- pletely. Organizations that have made the effort to build cognition- based trust over time with their employees will be more successful in dealing with employee concerns during times of organizational change and likely will face less opposition to the resizing effort. The reason that cognition-based trust has a significant effect on the suc- cess of change efforts is that it influences the employees’ willing- ness to accept the social accounts given by organizational leaders. Organizations that are suffering from low levels of cognition-based trust likely will encounter more difficulty in managing their resiz- ing efforts, because change agents within the organization lack credibility. By improving communication networks and more closely aligning human resource practices with organizational strategies, these organizations will build trust. In so doing, they will possess greater capabilities for achieving resizing objectives because their employees will perceive higher levels of psychological con- tract fulfillment. References Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology (pp. 267–299). Orlando, FL: Academic Press. Announced job cuts hit record high in April. (2001, May 3). USA Today. Argyris, C. (1960). Understanding organizational behavior. Homewood, IL: Dorsey Press. Bergmann, T. J., & Scarpello, V. (2001). Compensation decision making. Fort Worth, TX: Dryden Press. Bies, R. J., & Moag, J. S. (1986). Interactional justice: Communication cri- teria of fairness. In R. J. Lewicki, B. H. Sheppard, & M. H. Bazer- man (Eds.), Research on negotiation in organizations (pp. 43–55). Greenwich, CT: JAI Press. Bies, R. J., & Shapiro, D. L. (1988). Voice and justification: Their influ- ence on procedural fairness judgments. Academy of Management Jour- nal, 31, 676–685. Bies, R. J., Shapiro, D. L., & Cummings, L. L. (1988). Causal accounts and managing organizational conflict: Is it enough to say it’s not my fault? Communication Research, 15, 381–399. Brockner, J. (1992). Managing the effects of layoffs on survivors. Califor- nia Management Review, 34, 9–28. Cascio, W. F. (1998). Learning from outcomes: Financial experiences of 311 firms that have downsized. In M. K. Gowing, J. D. Kraft, & J. C. Quick (Eds.), The new organizational reality: Downsizing, restructuring, and revitalization (pp. 55–70). Washington, DC: American Psycho- logical Association. Cavanaugh, M. A., & Noe, R.A. (1999). Antecedents and consequences of relational components of the new psychological contract. Jour- nal of Organizational Behavior, 20, 323–340. Cobb, A. T., & Wooten, K. C. (1998). The role social accounts can play in a “justice intervention.” In R. W. Woodman & W. G. Passmore (Eds.), Research in organizational change and development (Vol. 11, pp. 73–115). Greenwich, CT: JAI Press. Conger, J. A., & Kanungo, R. N. (1987). Toward a behavioral theory of charismatic leadership in organizational settings. Academy of Man- agement Review, 12, 637–647. De Meuse, K. P., Bergmann, T. J., & Lester, S. W. (2001). An investigation of the relational component of the psychological contract across time, generation, and employment status. Journal of Managerial Is- sues, 13, 102–118. De Meuse, K. P., Bergmann, T. J., & Vanderheiden, P. A. (1997). Corpo- rate downsizing: Separating myth from fact. Journal of Management Inquiry, 6, 168–176. De Meuse, K. P., & Tornow, W. W. (1990). The tie that binds—has become very, very frayed! Human Resource Planning, 13, 203–213. De Meuse, K. P., Vanderheiden, P. A., & Bergmann, T. J. (1994). An- nounced layoffs: Their effect on corporate financial performance. Human Resource Management, 33, 509–530. Eagly, A. H., & Chaiken, S. (1993). The psychology of attitudes. New York: Harcourt Brace Jovanovich. Ehrlich, C. J. (1994). Creating an employer-employee relationship for the future. Human Resource Management, 33, 491–501. Folger, R. (1993). Reactions to mistreatment at work. In J. K. Murnigham (Ed.), Social psychology in organizations: Advances in theory and practice (pp. 161–183). Upper Saddle River, NJ: Prentice Hall. Folger, R., & Bies, R. J. (1989). Managerial responsibilities and procedural justice. Employee Rights and Responsibilities Journal, 2, 79–90. Greenberg, J. (1990). Organizational justice: Yesterday, today, and to- morrow. Journal of Management, 16, 399–432. Huseman, R., Hatfield, J., & Miles, E. (1985). Test for individual percep- tions of job equity: Some preliminary findings. Perceptual and Motor Skills, 61, 1055–1064. RESIZING AND THE PSYCHOLOGICAL CONTRACT 103 104 RESIZING THE ORGANIZATION Huseman, R., Hatfield, J., & Miles, E. (1987). A new perspective on equity theory: The equity sensitivity construct. Academy of Management Re- view, 12, 222–234. Jaffe, D. T., & Scott, C. D. (1998). Rekindling work commitment and ef- fectiveness through a new work contract. In M. K. Gowling, J. D. Kraft, & J. C. Quick (Eds.), The new organizational reality: Downsizing, restructuring, and revitalization (pp. 185–205). Washington, DC: Amer- ican Psychological Association. Jones, F. F., Scarpello, V., & Bergmann, T. J. 1999. Pay procedures—What makes them fair? Journal of Occupational and Organizational Psychol- ogy, 72, 129–145. Kickul, J., & Lester, S. W. (2001). Broken promises: Equity sensitivity as a moderator between psychological contract breach and employee at- titudes and behavior. Journal of Business and Psychology, 16, 191–217. King, W., Miles, E., & Day, D. (1993). A test and refinement of the equity sensitivity construct. Journal of Organizational Behavior, 14, 301–317. Kochan, T. A. (2001). How to update employment and labor policies for the twenty-first century workforce and economy. Perspectives on Work, 3, 12–17. Kotter, J. P. (1973). The psychological contract: Managing the joining-up process. California Management Review, 15, 91–99. Larkin, T. J., & Larkin, S. (1996, May–June). Reaching and changing front-line employees. Harvard Business Review, pp. 95–104. Lester, S., & Kickul, J. (2001). Psychological contracts in the twenty-first century: An examination of what employees value most and how well organizations are responding to these expectations. Human Re- source Planning, 24, 10–21. Lester, S. W., Turnley, W. H., Bloodgood, J. M., & Bolino, M. C. (2002). Not seeing eye to eye: Differences in supervisor and subordinate perceptions of and attributions for psychological contract breach. Journal of Organizational Behavior, 23, 39–56. Leventhal, G. S., Karuza, J., & Fry, W. R. (1980). A theory of allocation preferences. In G. Mikula (Ed.), Justice and social interaction (pp. 167–218). New York: Springer-Verlag. Levinson, H., Price, C. R., Munden, K. J., & Solley, C. M. (1962). Men, management, and mental health. Cambridge, MA: Harvard University Press. Lind, E. A., & Tyler, T.R. (1988). The social psychology of procedural justice. New York: Plenum Press. M&A in 2000: Fast start . . . fading finale. (2001, January 4). [Thomson Financial Quarterly League Table.] Available on-line: http://www.tfsd. com/home.asp. Macneil, I. R. (1985). Relational contract: What we do and do not know. Wisconsin Law Review, 483–525. McAllister, D. J. (1995). Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Manage- ment Journal, 38, 2449. Miles, E., Hatfield, J., & Huseman, R. (1989). The equity sensitivity con- struct: Potential implications for worker performance. Journal of Management, 15, 581–588. Mishra, A. K., & Spreitzer, G. M. (1998). Explaining how survivors re- spond to downsizing: The roles of trust, empowerment, justice, and work redesign. Academy of Management Review, 23, 567–588. Morrison, E. W., & Robinson, S. L. (1997). When employee feels be- trayed: A model of how psychological contract violation develops. Academy of Management Review, 22, 226–256. Noer, D. M. (1993). Healing the wounds: Overcoming the trauma of layoffs and revitalizing downsized organizations. San Francisco: Jossey–Bass. Organ, D. W. (1988). Organizational citizenship behavior. San Francisco: New Lexington Press. Osland, J. S., Kolb, D. A., & Rubin, I. M. (2001). Organizational behavior: An experiential approach. Upper Saddle River, NJ: Prentice Hall. Phillips, J. M. (1998). Effects of realistic job previews on multiple organi- zational outcomes: A meta-analysis. Academy of Management Journal, 41, 673–690. Robbins, S. P. (2001). Organizational behavior. Upper Saddle River, NJ: Prentice-Hall Robinson, S. L. (1996). Trust and breach of the psychological contract. Administrative Science Quarterly, 41, 574–599. Robinson, S. L., Kraatz, M. S., & Rousseau, D. M. (1994). Changing the obligations and the psychological contract. Academy of Management Journal, 37, 437–452. Robinson, S. L., & Rousseau, D. M. (1994). Violating the psychological contract: Not the exception but the norm. Journal of Organizational Behavior, 15, 245–259. Rousseau, D. M. (1989). Psychological and implied contracts in organi- zations. Employee Responsibilities and Rights Journal, 2, 121–139. Rousseau, D. M. (1990). New hire perceptions of their own and their em- ployer’s obligations: A study of psychological contracts. Journal of Organizational Behavior, 11, 389–400. Rousseau, D. M. (1995). Psychological contracts in organizations: Under- standing written and unwritten agreements. Thousand Oaks, CA: Sage. Rousseau, D. M. (1998). The “problem” of the psychological contract con- sidered. Journal of Organizational Behavior, 19, 665–671. RESIZING AND THE PSYCHOLOGICAL CONTRACT 105 106 RESIZING THE ORGANIZATION Rousseau, D. M., & Greller, M. M. (1994). Human resource practices: Ad- ministrative contract makers. Human Resource Management, 33, 385–401. Rousseau, D. M., & McLean Parks, J. (1993). The contracts of individuals in organizations. In L. L. Cummings & B. M. Staw (Eds.), Research in organizational behavior (pp. 1–43). Greenwich, CT: JAI Press. Rousseau, D. M., & Tijoriwala, S. A. (1998). Assessing psychological con- tract: Issues, alternatives and measures. Journal of Organizational Be- havior, 19, 679–695. Rousseau, D. M., & Tijoriwala, S. A. (1999). What’s a good reason to change? Motivated reasoning and social accounts promoting orga- nizational change. Journal of Applied Psychology, 84, 514–528. Schein, E. H. (1965). Organizational psychology. Upper Saddle River, NJ: Prentice-Hall. Shapiro, D. L., Buttner, E. H., & Barry, B. (1995). Explanations: What fac- tors enhance their perceived adequacy? Organizational Behavior and Human Decision Processes, 55, 23–40. Shore, L. F., & Tetrick, L. E. (1994). The psychological contract as an ex- planatory framework in the employment relationship. Trends in Or- ganizational Behavior, 1, 91–107. Sims, R. R. (1994). Human resource management’s role in clarifying the new psychological contract. Human Resource Management, 33, 373–382. Sitkin, S. B., & Bies, R. J. (1993). Social accounts in conflict situations: Using explanations to manage conflict. Human Relations, 46, 349–370. Thibaut, J., & Walker, L. (1975). Procedural justice: A psychological analysis. Mahwah, NJ: Erlbaum. Turnley, W. H., & Feldman, D. C. (1998). Psychological contract viola- tions during organizational restructuring. Human Resource Manage- ment, 37, 71–83. Turnley, W. H., & Feldman, D. C. (2000). Re-examining the effects of psy- chological contract violations: Unmet expectations and job dissat- isfaction as mediators. Journal of Organizational Behavior, 21, 25–42. Tyler, T. (1988). What is procedural justice? Criteria used by citizens to assess the fairness of legal procedures. Law and Society Review, 22, 301–355. Tyler, T. (1994). Psychological models of the justice motive: Antecedents of distributive and procedural justice. Journal of Personality and So- cial Psychology, 67, 580–863. Tyler, T., Degoey, P., & Smith, H. (1996). Understanding why the justice of group procedures matters: A test of the psychological dynamics of the group-value model. Journal of Personality and Social Psychology, 70, 913–930. U.S. Bureau of Labor Statistics. (2001, May 17). Extended mass layoffs in the first quarter of 2001 [News release]. Available on-line: http://www.bls. gov/mlshome.htm. Vanderheiden, P., De Meuse, K., & Bergmann, T. (1999). And the beat goes on: Corporate downsizing in the twenty-first century. Human Resource Management, 38, 261–268. Vroom, V. H. (1964). Work and motivation. New York: Wiley. Wilhelm, W. R. (1994). Guest editor’s note: The employment contract. Human Resource Management, 33, 323–324. Wanous, J. P. (1980). Organizational entry: Recruitment, selection, and social- ization of newcomers. Reading, MA: Addison-Wesley. RESIZING AND THE PSYCHOLOGICAL CONTRACT 107 CHAPTER 6 The Impact of Corporate Downsizing on Employee Fulfillment and Organizational Capability Jack W. Wiley Scott M. Brooks Emily L. Hause A new wave of holistic models of organizational performance has emerged during the past decade. These models share a common framework that explicitly acknowledges the interrelationships among management strategy and leadership practices, employee satisfaction, customer satisfaction, and the financial outcomes for a business firm. Models such as the Service-Profit Chain, Balanced Scorecard, and High Performance Model provide explanations of how organizations become successful; these models help organi- zations understand, track, and manage their resources. This chap- ter focuses on a key message of these models: carefully selected employee opinions are leading indicators of future business suc- cess. In other words, we suggest that promoting a performance- oriented work environment today will generate greater bottom-line performance tomorrow. Corporate downsizing is a technique designed to promote or- ganizational success by reducing labor cost, generally an organi- 108 zation’s largest expense. Many authors (Cascio, 1998; Vander- heiden, De Meuse, & Bergmann, 1999) have questioned the gen- eral success of layoffs in achieving these goals. Indeed, as De Meuse, Bergmann, and Vanderheiden (1997) and Lester and De Meuse (1998) and others illustrate, badly managed layoffs are associated with negative employee opinions and negative implica- tions for financial performance. Armstrong-Stassen (1994) points out that the impact of downsizing on survivors may well be a key element in determining long-term organizational survival. Given these findings, it is the purpose of this chapter to examine how holistic models of organizational performance can help us more effectively understand and manage the impact of layoffs on orga- nizations. More specifically, if certain employee characterizations of the workplace predict success, how do layoffs affect those criti- cal employee opinions? Models of Organizational Performance One holistic model of organizational performance, based on a rig- orous review of multiple case studies, is the Service-Profit Chain (Heskett, Jones, Loveman, Sasser, & Schlesinger, 1994). Analyzing data from several different services industries, these researchers closely examined the connection of internal management prac- tices, employee satisfaction and loyalty, productivity, value, cus- tomer satisfaction and loyalty, growth, and profit. The model they developed to describe these relationships comprises a cause-and- effect series of sequential links: internal service quality practices lead to employee satisfaction, which leads to employee loyalty and productivity, which leads to externally perceived value, which leads to customer satisfaction and loyalty and ultimately to sales growth and profit. The Service-Profit Chain was subsequently tested at Sears (Rucci, Kirn, & Quinn, 1998). The authors, using a time-series research design, present strong evidence regarding how improvements in employee opinions (descriptions of their work environment as measured through employee surveys) drive specific levels of in- crease in customer satisfaction, which in turn generate specific lev- els of revenue growth (see Figure 6.1). DOWNSIZING AND EMPLOYEE FULFILLMENT AND ORGANIZATIONAL CAPABILITY 109 110 RESIZING THE ORGANIZATION It is clear from the description provided that Rucci et al. (1998) relied on measurement systems focused on the extent to which key elements of Sears’s management strategy were successfully opera- tionalized and visible for all three critical stakeholder groups: em- ployees, customers, and investors. The authors concluded that management’s strategic focus was working. In other words, the more compelling Sears became as a place to work, the more com- pelling it became as a place to shop. As sales and revenue grew and store profits increased (as a result of increased customer satisfac- tion and loyalty), the more compelling Sears became as a place to invest. Figure 6.1. The Employee-Customer-Profit Chain at Sears. Attitude about the company Return on assets Operating margin Revenue growth Attitude about the job Employee behavior Employee retention Customer retention Customer impression Customer recommendations Merchandise Value Service Helpfulness 5 Unit Increase in Employee Attitude 1.3 Unit Increase in Customer Impression 0.5 Percent Increase in Revenue Growth A Compelling Place to Work A Compelling Place to Shop A Compelling Place to Invest Drives Drives Source: Reprinted by permission of Harvard Business Review. From Rucci, A. J., Kirn, S. P., and Quinn R. T. “The Employee-Customer-Profit Chain at Sears.” Harvard Business Review, January-February 1998: 91. Copyright © 1998 by the Harvard Business School Publishing Corporation, all rights reserved. . 61, 1055–1064. RESIZING AND THE PSYCHOLOGICAL CONTRACT 103 104 RESIZING THE ORGANIZATION Huseman, R., Hatfield, J., & Miles, E. (1987). A new perspective on equity theory: The equity sensitivity. of these steps revolve around efforts to improve the communication occurring among executives, human resource staff, supervisors, and the employees who may be affected the most by the changes. RESIZING. FULFILLMENT AND ORGANIZATIONAL CAPABILITY 109 110 RESIZING THE ORGANIZATION It is clear from the description provided that Rucci et al. (1998) relied on measurement systems focused on the extent to

Ngày đăng: 02/07/2014, 01:20

w