Neoliberalism, Managerial Citizenship Behaviors, and Firm Fiscal Performance

Abstract

Managers have a pressing need to contribute to profitability and an ethical responsibility to manage in ways that promote a sense of justice and fair play. But do these goals conflict with one another? More importantly, can managerial citizenship enhance firms’ financial success, and does its absence harm the bottom line? Answering these questions is crucial to understanding the future of work, given that pursuit of greater profits and productivity encourages employers to embrace neoliberal practices known to erode trust and reciprocity in work organizations. Survey data and ethnographic case studies have shown that managerial practices promoting organizational trust, reciprocity, and a sense of organizational justice generate worker satisfaction, commitment, and effort. Until now, however, sociologists have lacked data linking workers’ experiences to direct indicators of firm performance. Evaluating findings from survey research and a meta-analysis of 263 studies (involving nearly 1.4 million employees in 192 firms across 49 industries) conducted by Gallup, I demonstrate that managerial citizenship behaviors enhance growth, productivity, profitability, and earnings, while limiting costly problems such as absenteeism, turnover, accidents, defects, and theft. I conclude that managers have a fiscal responsibility as well as an ethical responsibility to adhere to behavioral norms promoting organizational trust, reciprocity, and justice.

Citation

Crowley, M. (2016), "Neoliberalism, Managerial Citizenship Behaviors, and Firm Fiscal Performance", A Gedenkschrift to Randy Hodson: Working with Dignity (Research in the Sociology of Work, Vol. 28), Emerald Group Publishing Limited, Leeds, pp. 213-232. https://doi.org/10.1108/S0277-283320160000028014