Billy Tat Wai Yu and To Wai Ming
This paper aims to describe an application of key concepts in agency theory to organizational development. Specifically, it seeks to highlight that formal control systems, the…
Abstract
Purpose
This paper aims to describe an application of key concepts in agency theory to organizational development. Specifically, it seeks to highlight that formal control systems, the ways to regulate employees' performance, are associated with an important factor for organizational development – the capacity for improvement.
Design/methodology/approach
The paper presents a literature review on organizational development and agency theory, and an empirical examination of the relationships between bureaucratic control systems, task programmability and the organization's capacity for improvement. The hypotheses of interrelationships among different control systems, task programmability and the capacity for improvement were tested with a sample of 237 employees in the service industry.
Findings
Results indicate that input control is a significant factor in determining an organization's capacity for improvement, and task programmability moderates the relation between a bureaucratic control and the organization's capacity for improvement.
Research limitations/implications
The results are based on a cross‐sectional self‐report study. It is advisable to include managers' assessment of subordinates' capacity of improvement in further research.
Originality/value
The effect of formal controls on organizational performance was controversial. This paper reveals the moderating role of task programmability in a control‐performance relationship. In doing so, this paper sheds light on how a manager can enhance his/her subordinates' performance on organizational improvement through different control tactics.
Details
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This study explores the impact of difficult coworkers on employees' turnover intention. Additionally, this study investigates the roles of employees' attitude toward difficult…
Abstract
Purpose
This study explores the impact of difficult coworkers on employees' turnover intention. Additionally, this study investigates the roles of employees' attitude toward difficult coworkers, perceived organizational support and affective commitment in the relationship between difficult coworkers and turnover intention.
Design/methodology/approach
Based on the stimulus-organism-response theory, a theoretical model was established that linked difficult coworkers to employees' attitude toward the, then to turnover intention directly and indirectly through perceived organizational support and affective commitment. The model was validated using responses from 343 Chinese employees in Macao's banking industry.
Findings
Results of the partial least squares-structural equation modeling (PLS-SEM) showed that difficult coworkers significantly influenced employees' attitude toward them. Employees' attitude toward difficult coworkers had a small and significant effect on turnover intention while perceived organizational support and affective commitment mediated the relationship between attitude toward difficult coworkers and turnover intention.
Originality/value
The study is the first empirical study to employ the stimulus-organism-response theory to characterize the impact of difficult coworkers on turnover intention. Fortunately, perceived organizational support and affective commitment were able to lessen the impact of difficult coworkers on turnover intention.