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Article
Publication date: 24 May 2011

Catherine E. Connelly, Daniel G. Gallagher and Jane Webster

This empirical study aims to determine whether justice perceptions formed in one context (i.e. the agency or the client) relate to work behaviors in another context (i.e. the…

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Abstract

Purpose

This empirical study aims to determine whether justice perceptions formed in one context (i.e. the agency or the client) relate to work behaviors in another context (i.e. the client or the agency). To provide a balanced perspective, it seeks to examine both organizational citizenship behaviors (OCBs) and counterproductive workplace behaviors (CWBs). It also aims to understand how workers' “volition” or their attitudes towards temporary employment would affect their behaviors.

Design/methodology/approach

To test the hypotheses, 157 temporary agency workers were surveyed; these data were analyzed with structural equation modeling (SEM). To ensure that the measures were appropriate for the context of temporary agency employment, a two‐stage pretest was conducted.

Findings

The results suggest that temporary agency worker perceptions of interpersonal justice from their agencies and their client organizations “spillover” and are indeed related to their OCBs and CWBs in both contexts. Furthermore, the extent to which workers voluntarily chose temporary agency employment related to agency‐directed OCBs, while a preference for permanent employment related to client‐directed OCBs.

Originality/value

This study provides insight into the ways in which perceptions formed in one context (i.e. interpersonal justice) may spill over and affect behaviors in another context. The findings also contribute to the broader literature on how volition affects temporary agency worker behaviors.

Details

Career Development International, vol. 16 no. 2
Type: Research Article
ISSN: 1362-0436

Keywords

Book part
Publication date: 3 May 2018

M. Christian Mastilak, Linda Matuszewski, Fabienne Miller and Alexander Woods

Commentators have claimed that business schools encourage unethical behavior by using economic theory as a basis for education. We examine claims that exposure to agency theory…

Abstract

Commentators have claimed that business schools encourage unethical behavior by using economic theory as a basis for education. We examine claims that exposure to agency theory acts as a self-fulfilling prophecy, reducing ethical behavior among business students. We experimentally test whether economics coursework or a manipulated competitive vs. cooperative frame affects measured ethical behavior in simulated decision settings. We measure ethical behavior using established tasks. We also measure ethical recognition to test whether agency theory reduces recognition of ethical issues. Exposure to agency theory in either prior classwork or the experiment increased wealth-increasing unethical behavior. We found no effect on unethical behavior that does not affect wealth. We found no effect of exposure to agency theory on ethical recognition. Usual laboratory experiment limitations apply. Future research can examine why agency theory reduces ethical behavior. Educators ought to consider unintended consequences of the language and assumptions of theories that underlie education. Students may assume descriptions of how people behave as prescriptions for how people ought to behave. This study contributes to the literature on economic education and ethics. We found no prior experimental studies of the effect of economics education on ethical behavior.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-78754-973-9

Keywords

Article
Publication date: 1 November 2018

Maurice Yolles

Complex systems adapt to survive, but little comparative literature exists on various approaches. Adaptive complex systems are generic, this referring to propositions concerning…

Abstract

Purpose

Complex systems adapt to survive, but little comparative literature exists on various approaches. Adaptive complex systems are generic, this referring to propositions concerning their bounded instability, adaptability and viability. Two classes of adaptive complex system theories exist: hard and soft. Hard complexity theories include Complex Adaptive Systems (CAS) and Viability Theory, and softer theories, which we refer to as Viable Systems Theories (VSTs), that includes Management Cybernetics at one extreme and Humanism at the other. This paper has a dual purpose distributed across two parts. In part 1 the purpose was to identify the conditions for the complementarity of the two classes of theory. In part 2 the two the purpose is to explore (in part using Agency Theory) the two classes of theory and their proposed complexity continuum.

Design/methodology/approach

Explanation is provided for the anticipation of behaviour cross-disciplinary fields of theory dealing with adaptive complex systems. A comparative exploration of the theories is undertaken to elicit concepts relevant to a complexity continuum. These explain how agency behaviour can be anticipated under uncertainty. Also included is a philosophical exploration of the complexity continuum, expressing it in terms of a graduated set of philosophical positions that are differentiated in terms of objects and subjects. These are then related to hard and softer theories in the continuum. Agency theory is then introduced as a framework able to comparatively connect the theories on this continuum, from theories of complexity to viable system theories, and how harmony theories can develop.

Findings

Anticipation is explained in terms of an agency’s meso-space occupied by a regulatory framework, and it is shown that hard and softer theory are equivalent in this. From a philosophical perspective, the hard-soft continuum is definable in terms of objectivity and subjectivity, but there are equivalences to the external and internal worlds of an agency. A fifth philosophical position of critical realism is shown to be representative of harmony theory in which internal and external worlds can be related. Agency theory is also shown to be able to operate as a harmony paradigm, as it can explore external behaviour of an agent using a hard theory perspective together with an agent’s internal cultural and cognitive-affect causes.

Originality/value

There are very few comparative explorations of the relationship between hard and soft approaches in the field of complexity and even fewer that draw in the notion of harmony. There is also little pragmatic illustration of a harmony paradigm in action within the context of complexity.

Book part
Publication date: 16 August 2005

Alison R. Fragale

The verbal and nonverbal behaviors that individuals display (i.e., their communication styles) influence the status positions they attain in their task groups. Prior research has…

Abstract

The verbal and nonverbal behaviors that individuals display (i.e., their communication styles) influence the status positions they attain in their task groups. Prior research has generally concluded that communication behaviors that convey agency (i.e., characteristics denoting intelligence, ambition, and dominance) are more effective for obtaining a high-status position in a task group than communication behaviors that convey communality (i.e., characteristics denoting warmth, sincerity, and agreeableness). The message from these prior studies is that it is more status enhancing to be smart than to be social. The objective of this chapter is to challenge this assertion and argue that in some task groups it may be more status enhancing to be social rather than to be smart. I suggest that the status benefits of particular communication styles depend on the characteristics of the group to which an individual belongs to. Thus, in contrast to prior research in this area, I argue for a more contextual approach to the study of communication styles and status conferral, focusing on how structural and process differences between groups influence how the group members’ words and actions are evaluated.

Details

Status and Groups
Type: Book
ISBN: 978-1-84950-358-7

Article
Publication date: 8 January 2021

Maurice Yolles

This paper is in two parts. The purpose of the first part was to explore the basis for the creation of an agentic ecology theory that could provide a generic multidisciplinary…

Abstract

Purpose

This paper is in two parts. The purpose of the first part was to explore the basis for the creation of an agentic ecology theory that could provide a generic multidisciplinary context-free manifold that can be applied to specific domains and contexts. As an element of this, it explored the relationship between agency and its agents (at various foci) and the nature of agency ecologies. It also explored the relationship between viability and sustainability. In this second part, the purpose is to create an agency model that will recognise the analytical and decision-making attributes of the viability–sustainability relationship by centring on the modelling a socioeconomic ecosystem and a social disciplinary species model.

Design/methodology/approach

Agency theory will be used to model a generic agency ecology and its environment of subordinate elements – especially those subordinates that can be used as amenities to satisfy the needs to agency development. Part 1 of the paper took a tour of concepts relevant to the representation of ecosystem structures and their application. Part 2 will centre on delivering a schema capable of embracing agency ecology from which applications may derive.

Findings

It is shown agency theory is not only a modelling schema but can also provide diagnosis to examine the condition of, or for locating problems within, an agency in its ecosystem environment. This is illustrated within a socioeconomic context.

Research limitations/implications

The paper is conceptual in nature, without any to diagnose any substantive issues within the socio-economic context.

Originality/value

A generalized agency ecology approach is proposed over this two-part paper that is novel through the use of 3rd order cybernetics.

Article
Publication date: 2 February 2015

Martin R. W. Hiebl

This paper aims to explore the differing attitudes of salaried chief financial officers (CFOs) that can be associated with agency theory and stewardship theory. CFO attitudes are…

1779

Abstract

Purpose

This paper aims to explore the differing attitudes of salaried chief financial officers (CFOs) that can be associated with agency theory and stewardship theory. CFO attitudes are investigated because CFOs typically face additional agency conflict in their roles as overseers of the financial and accounting functions that are responsible for the production of numerical information used as a basis for incentive compensation.

Design/methodology/approach

A qualitative field study of 14 large privately held Austrian manufacturing companies was conducted. The findings rely on information retrieved from 18 semi-structured interviews conducted with individuals from these companies.

Findings

The findings reveal a number of contextual factors that influence stewardship and agency attitudes of salaried CFOs. CFOs, who mainly report formally to owners, perceive more control in the hands of the owners. Short-term management appointments appear to facilitate agency-like behavior, whereas the existence of owner–managers and the typical CFO's maturity in terms of age and wealth seem to nurture stewardship behavior.

Research limitations/implications

Further (quantitative) research is needed to corroborate the findings in this study, which are derived from a qualitative research approach. Further research on agency and stewardship behavior should also include the view of principal with respect to agent actions, as this paper shows that principal opinion strongly affects the way agents perceive control.

Practical implications

The findings suggest that the behavior of company owners can influence and change a manager's agency or stewardship attitude. Owners who desire a culture of stewardship should set long-term goals and facilitate long-term management appointments. Moreover, owners can lower a manager's perceived level of owner control by adopting an active role in management.

Originality/value

This paper is the first to analyze stewardship and agency attitude of salaried CFOs in privately held companies. It, therefore, adds to the current literature on the role of the CFO, as well as to the literature on governance issues in privately held firms.

Details

Qualitative Research in Financial Markets, vol. 7 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

Book part
Publication date: 4 September 2019

Barry M. Mitnick and Martin Lewison

Despite the existence of a variety of approaches to the understanding of behavioral and managerial ethics in organizations and business relationships generally, knowledge of…

Abstract

Despite the existence of a variety of approaches to the understanding of behavioral and managerial ethics in organizations and business relationships generally, knowledge of organizing systems for fidelity remains in its infancy. We use halakha, or Jewish law, as a model, together with the literature in sociology, economic anthropology, and economics on what it termed “middleman minorities,” and on what we have termed the Landa Problem, the problem of identifying a trustworthy economic exchange partner, to explore this issue.

The article contrasts the differing explanations for trustworthy behavior in these literatures, focusing on the widely referenced work of Avner Greif on the Jewish Maghribi merchants of the eleventh century. We challenge Greif’s argument that cheating among the Magribi was managed chiefly via a rational, self-interested reputational sanctioning system in the closed group of traders. Greif largely ignores a more compelling if potentially complementary argument, which we believe also finds support among the documentary evidence of the Cairo Geniza as reported by Goitein: that the behavior of the Maghribi reflected their deep beliefs and commitment to Jewish law, halakha.

Applying insights from this analysis, we present an explicit theory of heroic marginality, the production of extreme precautionary behaviors to ensure service to the principal.

Generalizing from the case of halakha, the article proposes the construct of a deep code, identifying five defining characteristics of such a code, and suggests that deep codes may act as facilitators of compliance. We also offer speculation on design features employing deep codes that may increase the likelihood of production of behaviors consistent with terminal values of the community.

Details

The Next Phase of Business Ethics: Celebrating 20 Years of REIO
Type: Book
ISBN: 978-1-83867-005-4

Keywords

Article
Publication date: 8 July 2019

Maurice Yolles

Agency is inherently an institution and involves dynamic socio-cultural processes that facilitate development. This paper is written in three parts. The purpose in Part 1 was to…

Abstract

Purpose

Agency is inherently an institution and involves dynamic socio-cultural processes that facilitate development. This paper is written in three parts. The purpose in Part 1 was to represent agency theory as an institutional theory, and consideration was made of the relationship between development, growth and globalisation. In Part 2, the purpose was to explore development with respect to the political context, explaining in terms of culture under what conditions political groups may come to power. Using political frames intended to define their nature and realities, they seek to attract agents in their political sphere to gain administrative power. In this Part 3, the purpose of this paper is to model, using cybernetic agency theory, the nature of development and reduction to instrumentality.

Design/methodology/approach

Development theory is a multidisciplinary field in which research and theories are clustered together and set within an adaptive institutional activity system framework. An adaptive activity system has a plural membership of agents represented by agency. In Parts 1 and 2 of this paper, agency was shown to have an institutional basis. Activity system development was also explained as a process of institutional evolution, and its potential was shown to provide power acquisition in a political landscape by competitive political frames which vie for support in a place of potentially susceptible agents. Here in Part 3, agency theory will be used to model the dynamic relationships between political frames and the agents that they wish to attract by projecting both cognitive and emotional structures, this enabling the anticipation of behaviour.

Findings

These relate to the three parts of the paper taken together. Agency is an evolutionary institutional system that can represent socio-political development. A model for political development has been created that identifies the conditions under which formal political groups are able to promote frames of policy to attract support from autonomous agents that constitute the membership of the activity system, and hence gain agency status. On the way to this, it connects Bauman’s theory of liquid modernity to Sorokin’s theory of socio-cultural dynamics and cultural stability. One result is the notion of liquid development, an unstable condition of development in adaptive activity systems. Agency theory can usefully explain detailed changes in agency, the relationships between agency agents, and interactions between agencies, this embracing institutional processes.

Research limitations/implications

The implication of this research is that it will allow empirical methods to be used that potentially enables political outcomes in complex socio-political environments to be anticipated, given additional appropriate measurement criteria.

Originality/value

The synergy of agency and institutional theories to explain the process of development is new, as is its application to the political development process in a political landscape. As part of this synergistic process, it has been shown how Bauman’s concept of liquidity relates to Sorokin’s ideas of socio-cultural change.

Article
Publication date: 9 November 2012

Sergio Lazzarini, Gazi Islam and Luiz Mesquita

The purpose of this paper is to reconcile alternative managerial views regarding self‐serving behavior in organizations: while some propose that such behavior is commonplace and…

Abstract

Purpose

The purpose of this paper is to reconcile alternative managerial views regarding self‐serving behavior in organizations: while some propose that such behavior is commonplace and detrimental to performance, and suggest policies to counteract such conduct, critics contend that such policies generate distrust and diminish performance. The authors integrate elements from agency and interactional justice theories, and hypotheses that managerial attitudes not related to self‐interest can influence behaviors often attributed to the desire to curb self‐interest, and vice‐versa.

Design/methodology/approach

The authors employ structural equation modeling based on survey data from 387 team‐leaders from both Brazil and the USA.

Findings

An asymmetric relation is found in the aforementioned theoretical “cross‐talk:” managers concerned with self‐interest tend to devise policies solely focused on curbing self‐interest, while managers concerned with justice not only adopt justice‐enhancing practices but also certain incentivizing agency‐related practices which jointly increase performance.

Research limitations/implications

By proposing and testing theoretical interactions between agency and justice theories, support is found for both enthusiasts and critics of self‐interestedness, but pointedly they occur in different domains.

Practical implications

The results suggest that managers should foster interactional justice, promoting incentivizing agency‐related behaviors that may be interpreted as justice‐seeking, while avoiding those that send a message of distrust.

Originality/value

To the best of the authors' knowledge, this is one of the first empirical papers directly addressing the ongoing debate raised by Ghoshal and others on the merits of managerial theories based on the assumption of self‐interest.

Details

Management Research: Journal of the Iberoamerican Academy of Management, vol. 10 no. 3
Type: Research Article
ISSN: 1536-5433

Keywords

Article
Publication date: 25 June 2020

Ann Sophie K. Löhde, Giovanna Campopiano and Andrea Calabrò

Challenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and…

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Abstract

Purpose

Challenging the static view of family business governance, we propose a model of owner–manager relationships derived from the configurational analysis of managerial behavior and change in governance structure.

Design/methodology/approach

Stemming from social exchange theory and building on the 4C model proposed by Miller and Le Breton-Miller (2005), we consider the evolving owner–manager relationship in four main configurations. On the one hand, we account for family businesses shifting from a generalized to a restricted exchange system, and vice versa, according to whether a family manager misbehaves in a stewardship-oriented governance structure or a nonfamily manager succeeds in building a trusting relationship in an agency-oriented governance structure. On the other hand, we consider that family firms will strengthen a generalized exchange system, rather than a restricted one, according to whether a family manager contributes to the stewardship-oriented culture in the business or a nonfamily manager proves to be driven by extrinsic rewards. Four scenarios are analyzed in terms of the managerial behavior and governance structure that characterize the phases of the relationship between owners and managers.

Findings

Various factors trigger managerial behavior, making the firm deviate from or further build on what is assumed by stewardship and agency theories (i.e. proorganizational versus opportunistic behavior, respectively), which determine the governance structure over time. Workplace deviance, asymmetric altruism and patriarchy on the one hand, and proorganizational behavior, relationship building and long-term commitment on the other, are found to determine how the manager behaves and thus characterize the owner's reactions in terms of governance mechanisms. This enables us to present a dynamic view of governance structures, which adapt to the actual attitudes and behaviors of employed managers.

Research limitations/implications

As time is a relevant dimension affecting individual behavior and triggering change in an organization, one must consider family business governance as being dynamic in nature. Moreover, it is not family membership that determines the most appropriate governance structure but the owner–manager relationship that evolves over time, thus contributing to the 4C model.

Originality/value

The proposed model integrates social exchange theory and the 4C model to predict changes in governance structure, as summarized in the final framework we propose.

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