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Article
Publication date: 28 September 2011

Xin Liang and Joseph Picken

The purpose of this paper is to attempt to verify the predicted relationship between the demographic (i.e. tenure, functional background, etc.) difference and cognitive…

Abstract

Purpose

The purpose of this paper is to attempt to verify the predicted relationship between the demographic (i.e. tenure, functional background, etc.) difference and cognitive difference among top managers and examine how such a relationship is affected by the communication among top managers.

Design/methodology/approach

The authors hypothesized that there is a positive relationship between demographic deviation and cognitive deviation of a focal manager on a TMT, and that such a relationship is mediated by the degree of communication that the focal manager has with other team members on the TMT. Using Structural Equation Modeling techniques, these hypotheses were tested based on a sample of 348 top managers that consist of 28 top management teams.

Findings

It was found that the hypothesized relationship between demographic deviation and cognitive deviation of a focal top manager was supported with respect to the tenure of a manager, but not the functional background of a manager. Moreover, it was found that communication frequency of a focal manager with other team members mediated the relationship between the tenure deviation and the cognitive deviation of the focal manager and that tenure deviation negatively influenced communication frequency, which in turn, negatively influenced the cognitive deviation of the manager.

Practical implications

These findings imply that: when constructing a competitive top management, practitioners such as boards of directors of a firm should pay more attention to the tenure diversity of a top management team because tenure diversity influences the cognitive diversity of the team; and communication among members of a management team can reduce the cognitive differences among members. However, communication happens more frequently among managers with similar tenure than among managers with dissimilar tenure. To promote consensus, managers need to watch for the forming of group fault lines along tenure within their teams.

Originality/value

As far as is known, this is the first study that uses relational demography to examine the influence of tenure difference on cognitive difference among members of a top management team and to expose a mediating role played by communication frequency.

Details

Leadership & Organization Development Journal, vol. 32 no. 7
Type: Research Article
ISSN: 0143-7739

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Book part
Publication date: 11 August 2014

John G. Sessions and Nikolaos Theodoropoulos

Efficiency wage theory predicts that firms can induce worker effort by the carrot of high wages and/or the stick of monitoring worker performance. Another option available…

Abstract

Efficiency wage theory predicts that firms can induce worker effort by the carrot of high wages and/or the stick of monitoring worker performance. Another option available to firms is to tilt the remuneration package over time such that the lure of high future earnings acts as a deterrent to current shirking. On the assumption that firms strive for the optimal trade-off between these various instruments, we develop a two-period model of efficiency wages in which increased monitoring attenuates the gradient of the wage-tenure profile. Our empirical analysis, using two cross sections of matched employer-employee British data, provides robust support for this prediction.

Details

New Analyses of Worker Well-Being
Type: Book
ISBN: 978-1-78350-056-7

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Article
Publication date: 25 June 2021

Daniel Tidbury, Steven F. Cahan and Li Chen

Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to…

Abstract

Purpose

Board faultlines, which reflect intrinsic divisions of board members into relatively homogeneous subgroups, are associated with poor firm performance. This paper aims to extend the existing board faultline research by examining how acquisition deal size moderates the negative implications of board faultlines.

Design/methodology/approach

This paper uses a sample of acquisitions and a quantitative research approach to conduct statistical analysis.

Findings

Using a sample of acquisitions announced between 2007 and 2016, this paper finds evidence suggesting that strong faultlines are associated with poorer acquisition outcomes in the long-term, but not in the short term. Further, this paper finds that the effect of faultline strength on long-term acquisition outcomes is weaker for larger acquisition deals than smaller acquisition deals. The findings are consistent with deal size moderating the relation between faultlines and acquisition outcomes.

Research limitations/implications

This paper addresses possible endogeneity through firm fixed effects and instrumental variable analysis. Although this paper provides evidence on the moderating role of deal size in the context of faultlines, future research could examine the role of additional moderators, such as pro-diversity, trust, board leadership and board and task characteristics.

Practical implications

The findings suggest that boards need to be aware of situations where the negative effects of faultlines are more likely to come to the fore. For example, faultlines are more likely to play a role in more routine, obscure monitoring than for high-profile strategic decisions.

Originality/value

The study is multidisciplinary as it draws on the management, organizational behaviour and psychology and finance literature. It contributes to the developing literature on faultlines in several important ways. First, this paper supports their view that faultlines have adverse effects on board performance by showing that faultlines negatively impact discrete strategic investment decisions. Second, this paper provides evidence that deals size moderates the faultline-acquisition performance relation, indicating that the role of faultlines is contextual. Third, this paper finds evidence that suggests investors do not factor in board faultlines when responding to acquisition announcements.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

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Article
Publication date: 10 December 2019

Kirsten Thommes and Janny Klabuhn

Past research on how to compose a team is ambiguous, especially with respect to diversity dimensions. The authors argue that previous inconsistencies in results have…

Abstract

Purpose

Past research on how to compose a team is ambiguous, especially with respect to diversity dimensions. The authors argue that previous inconsistencies in results have arisen for two main reasons. First, there is a lack of clarity about the concept of age diversity, as age separation, age variety and age disparity are frequently used synonymously, but capture very different aspects of diversity. Second, in many research settings, age and tenure diversity have been intertwined. When staffing teams, many staff managers ask for staffing advise concerning staff diversity in order to enhance efficiency. This staffing problem is mainly a question how homogeneous and heterogeneous teams should be composed. In this paper, the authors capture both – age and tenure diversity – as well as their interaction and argue that age separation and tenure variety are most likely to affect team performance in a routine task. The paper aims to discuss these issues.

Design/methodology/approach

The authors are testing the hypothesis using rich quantitative field data from a steel company.

Findings

The results show that age separation decreases performance while tenure variety increases performance. Moreover, the beneficial effects of tenure variety cannot arise when age separation is too large.

Research limitations/implications

The authors show that diversity research is very sensitive to the operationalization of diversity.

Practical implications

Managers can benefit from the study by learning how to optimally staff teams: while age diversity should be low, tenure diversity can be high.

Originality/value

Due to the unique data set, the authors can separate the influence of tenure and age diversity.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 9 no. 1
Type: Research Article
ISSN: 2049-3983

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Article
Publication date: 23 October 2007

Michael L. McIntyre, Steven A. Murphy and Paul Mitchell

This paper seeks to argue that boards can be playing a more proactive role in contributing to organizational effectiveness and that their composition requires greater

Abstract

Purpose

This paper seeks to argue that boards can be playing a more proactive role in contributing to organizational effectiveness and that their composition requires greater research attention. By integrating the organizational behaviour literature on teams with the governance literature, the paper empirically examines the relationship between key board composition variables and firm performance.

Design/methodology/approach

At this stage in the development of the approach, the focus is on a sub‐set of the elements proposed in the group dynamics literature. The population for this study comprises all companies included in the Canadian TSE 300 Composite Index (renamed the S&P/TSX Composite Index). This study uses cross‐sectional regression analyses to examine the nature of the relationships between board composition and firm performance.

Findings

The data analyses revealed that high levels of experience, appropriate team size, moderate levels of variation in age and team tenure were correlated with firm performance.

Research limitations/implications

Boards of directors (BOD) are teams whose effectiveness can be assessed through group dynamic constructs in the organizational behaviour literature. Further research is needed to examine the intricate dynamics that might moderate or mediate the relationship between board characteristics and firm performance.

Practical implications

The findings provide a much‐needed benchmark to consider whether the composition of boards is optimal, given the functions and mandate. In addition, the study highlights the opportunity costs of boards, restricting their roles to agency issues.

Originality/value

This interdisciplinary paper tests some of the many variables that can be extrapolated from the group dynamics research. The paper calls on boards to examine what BOD functionality really entails, and argues for more proactive behaviours aimed at strategic firm issues.

Details

Corporate Governance: The international journal of business in society, vol. 7 no. 5
Type: Research Article
ISSN: 1472-0701

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Article
Publication date: 1 February 1998

BRETT MYORS

An alternative method of utility analysis based on tenure, rather than dollar value performance, is presented. The standard deviation of employees' tenure with an…

Abstract

An alternative method of utility analysis based on tenure, rather than dollar value performance, is presented. The standard deviation of employees' tenure with an organisation becomes the individual differences parameter, rather than SDy, and mean dollar value performance (Y) provides the scaling onto dollars. Results suggest that the new model produces utility estimates that are not significantly different from the classic Brogden‐Cronbach‐Gleser model.

Details

Journal of Human Resource Costing & Accounting, vol. 3 no. 2
Type: Research Article
ISSN: 1401-338X

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Article
Publication date: 24 February 2020

Jan Philip Weber and Gabriel Lee

The purpose of this paper is twofold: first, the authors construct a country-specific time-varying private rental regulation index for 18 developed economies starting from…

Abstract

Purpose

The purpose of this paper is twofold: first, the authors construct a country-specific time-varying private rental regulation index for 18 developed economies starting from 1973 to 2014. Second, the authors analyze the effects of their index on the housing rental markets across 18 countries and states.

Design/methodology/approach

The authors’ index not only covers 18 developed economies over 42 years but also combines both tenure security and rent laws. The authors’ empirical framework is that of panel regressions with time and country fixed effects.

Findings

The authors’ index sheds further insights on the extent to which rent and tenure security laws have converged over the past 40 years for each economy. Moreover, the authors show three empirical results. First, stringent rent control regimes do lead to lower real rent growth rates than regimes with free rents. Second, soft rent control regimes with time-limited tenure security and minimum duration periods, however, may cause higher rent growth rates than free rent regimes. Third, rent-free regimes do not show significant high real rent appreciation rates.

Originality/value

The authors’ rental regulation index is the first time-varying index that covers more than 18 economies over 40 years.

Details

International Journal of Housing Markets and Analysis, vol. 13 no. 4
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 8 August 2020

Chitra Dey and Ganesh M.P.

Based on the interpersonal interaction perspective of team cohesion, this study aims to examine the effects of team boundedness, formal coordination and organization tenure

Abstract

Purpose

Based on the interpersonal interaction perspective of team cohesion, this study aims to examine the effects of team boundedness, formal coordination and organization tenure diversity on both task and social cohesion. The authors test for the interaction effect of organization tenure diversity on the relationships between the independent variables and the dimensions of team cohesion.

Design/methodology/approach

Data was collected from 111 software development teams and aggregated to the team level. Common latent factor test for common method bias showed no significant bias. Structural equation modelling (SEM) was used to test all the hypotheses.

Findings

SEM results show that team boundedness and formal coordination have positive and significant association with both dimensions of team cohesion. Formal coordination was found to be a stronger positive predictor for task cohesion than for social cohesion. Organization tenure diversity was found to be a stronger negative predictor for social cohesion than for task cohesion. Organization tenure diversity in the team moderates the relationship between formal coordination and task cohesion.

Research limitations/implications

The data was collected using a cross-sectional design. However, the authors have mitigated the effect of common method variance by adopting both procedural and statistical methods.

Originality/value

This paper expands extant literature by examining the antecedents of two important components of team cohesion, task and social cohesion. The authors proposed and found that the independent variables have different impacts on task and social cohesion. This study furthers both theory and practice by considering team boundedness as a variable of interest and its impact on internal team dynamics.

Details

Team Performance Management: An International Journal, vol. 26 no. 7/8
Type: Research Article
ISSN: 1352-7592

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Article
Publication date: 24 May 2011

Lei Wang

This study aims to examine the relationship between employees' perceived equity and their propensity to unionize in China and the moderating effect of tenure on the relationship.

Abstract

Purpose

This study aims to examine the relationship between employees' perceived equity and their propensity to unionize in China and the moderating effect of tenure on the relationship.

Design/methodology/approach

A survey was administered to 160 employees in a foreign‐invested company in China which had experienced a spontaneous labor strike seven months before the study.

Findings

The results supported the hypothesis regarding the relationship between workers' perceived equity and their unionization propensity in China. In addition, employee tenure was found to moderate this relationship such that the longer the tenure, the weaker the relationship between perceived equity and unionization propensity.

Originality/value

This study provides evidence of the external validity of the relationship between perceived equity and workers' unionization propensity in China. It also demonstrates the different roles employee tenure plays in the relationship. Specifically, senior workers were less likely to join spontaneous unions in China than junior workers when treatment was perceived to be unfair, a noteworthy contrast to existing research findings that senior workers in Western societies are more eager to get involved in union activities than junior workers.

Details

Management Research Review, vol. 34 no. 6
Type: Research Article
ISSN: 2040-8269

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Article
Publication date: 2 March 2012

Jeff Crawford and Lori N.K. Leonard

This study seeks to determine factors that encourage post‐meeting work activity in a software development group by assessing attendee diversity (functional, staffing and…

Abstract

Purpose

This study seeks to determine factors that encourage post‐meeting work activity in a software development group by assessing attendee diversity (functional, staffing and tenure), meeting size, and meeting history.

Design/methodology/approach

One year's worth of meeting data from a software development group in a US‐based financial services company were collected and analyzed. A binary logistic regression analysis was utilized to determine the impact of diversity, meeting size, and meeting history on the likelihood of post‐meeting work activity.

Findings

Tenure diversity and meeting history for each meeting event significantly contribute to the likelihood of post‐meeting work activity.

Research limitations/implications

A lack of variance in the data does not allow for the examination of staffing diversity. Further, generalizability of findings is limited since data come entirely from one organization. Findings suggest that meeting characteristics, specifically tenure diversity and meeting history, can improve the likelihood of post‐meeting work activity occurring.

Practical implications

Findings illustrate that management can leverage tenure diversity and meeting history within a software development group to encourage post‐meeting work activity.

Originality/value

All organizations employ meetings, and research that clarifies how to extract maximum value from meeting events is critical. This study provides a first step in uncovering specific meeting characteristics which are most likely to impact post‐meeting work activity.

Details

Team Performance Management: An International Journal, vol. 18 no. 1/2
Type: Research Article
ISSN: 1352-7592

Keywords

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