Ann Peng, Rebecca Mitchell, and John M. Schaubroeck
In recent years scholars of abusive supervision have expanded the scope of outcomes examined and have advanced new psychological and social processes to account for these and other outcomes. Besides the commonly used relational theories such as justice theory and social exchange theory, recent studies have more frequently drawn from theories about emotion to describe how abusive supervision influences the behavior, attitudes, and well-being of both the victims and the perpetrators. In addition, an increasing number of studies have examined the antecedents of abusive supervision. The studied antecedents include personality, behavioral, and situational characteristics of the supervisors and/or the subordinates. Studies have reported how characteristics of the supervisor and that of the focal victim interact to determining abuse frequency. Formerly postulated outcomes of abusive supervision (e.g., subordinate performance) have also been identified as antecedents of abusive supervision. This points to a need to model dynamic and mutually reciprocal processes between leader abusive behavior and follower responses with longitudinal data. Moreover, extending prior research that has exclusively focused on the victim’s perspective, scholars have started to take the supervisor’s perspective and the lens of third-parties, such as victims’ coworkers, to understand the broad impact of abusive supervision. Finally, a small number of studies have started to model abusive supervision as a multilevel phenomenon. These studies have examined a group aggregated measure of abusive supervision, examining its influence as an antecedent of individual level outcomes and as a moderator of relationships between individuals’ experiences of abusive supervision and personal outcomes. More research could be devoted to establishing the causal effects of abusive supervision and to developing organizational interventions to reduce abusive supervision.
Torben Juul Andersen and Carina Antonia Hallin
Contemporary organizations operate under turbulent business conditions and must adapt their strategies to ongoing changes. Sustainable performance can be achieved when the organization engages in interactive processes that link emerging opportunities to forward-looking analytics. But few organizations are able to practice this consistently. Fast processes performed by managers at the frontline respond to ongoing environmental stimuli and slow processes initiated by managers at the center interpret events and reasons about updated strategic actions. Current experiential insights from the fast processes can be aggregated systematically to inform the slow processes of reasoning. When the fast and slow processes interact they can form a dynamic system that adapts organizational activities to changing conditions.
Asli M. Colpan and Alvaro Cuervo-Cazurra
Business groups are an organizational model in which collections of legally independent firms bounded together with formal and informal ties use collaborative arrangements to enhance their collective welfare. Among the different varieties of business groups, diversified business groups that exhibit unrelated product diversification under central control, and often containing chains of publicly listed firms, are the most-studied type in the management literature. The reason is that they challenge two traditionally held assumptions. First, broad and especially unrelated diversification have a negative impact on performance, and thus business groups should focus on a narrow scope of related businesses. Second, such diversification is only sustainable in emerging economies in which market and institutional underdevelopment are more common and where business groups can provide a solution to such imperfections. However, a historical perspective indicates that diversified business groups are a long-lived organizational model and are present in emerging and advanced economies, illustrating how business groups adapt to different market and institutional settings. This evolutionary approach also highlights the importance of going beyond diversification when studying business groups and redirecting studies toward the evolution of the group structure, their internal administrative mechanisms, and other strategic actions beyond diversification such as internationalization.
The complexity of modern careers requires personal agency in managing career development and employability capital as personal resources for career success. Individuals’ employability capital also serves as a valuable resource for the sustainable performance of organizations. Individuals’ ability to proactively engage in career self-management behaviors through the use of a comprehensive range of self-regulatory capabilities, known as career metacapacities, contributes to their employability capital. Organizational career development supports initiatives that consider individuals’ proactivity in light of conditions that influence their motivational states, and availability of personal resources helps organizations benefit from individuals who bring information, knowledge, capacities, and relationship networks (i.e., employability capital) into their work that ultimately contribute to the organization’s capability to sustain performance in uncertain, highly competitive business markets. Career development support practices should embrace the individualization of modern-day careers, the need for whole-life management, and the multiple meanings that career success has for individuals.
In a new era of corporate governance defined by increasing shareholder empowerment, scrutiny from external stakeholders, and governance failures, there has been a movement toward redefining corporate governance models and the roles of boards. As a result, researchers and practitioners are left wondering what it means to be an effective board, and how a board can operate in the best interests of a firm’s stakeholders in this current environment. Exploring the expanded roles and demands of directors grounded in shareholder and director primacy debates, as well as reviewing theories and contingencies that link corporate boards to task, group, firm, and enterprise-level outcomes, a research agenda is identified that might better identify the parameters of board effectiveness.
Richard E. Boyatzis
Emotional intelligence (EI) is used in organizational training, coaching, and graduate schools. Despite its acceptance in practical applications, researchers continue to argue about its validity. EI can be defined “as a constellation of components from within a person that enable self-awareness of and management of his/her emotions, and to be aware of and manage the emotions of others.” EI seems to exist at the performance trait or ability, self-schema and trait, and behavioral levels. Based on this multilevel view, all the conceptualizations of EI and the different measures that result are EI. Research on the behavioral level of EI—its assessment, strengths, psychometric validity, and challenges—complements that on other approaches, which have already been the subject of many academic papers.
There has been an “affective revolution” in organizational behavior since the mid-1990s, focusing initially on moods and affective dispositions. The past decade has seen a further shift toward investigating the complex roles played by discrete emotions in the workplace. Discrete emotions such as fear, anger, boredom, love, gratitude, and pride have their own appraisal antecedents, subjective experiences, and action tendencies that prepare people to respond to their current situation. Emotions have intrapersonal effects on the person experiencing them in terms of attention, motivation, creativity, information processing and judgment, and well-being. Some emotions have characteristic voice tones or facial expressions that serve the interpersonal function of communicating one’s state to interaction partners. For this reason, emotions are integral to social processes in organizations such as leadership, teamwork, negotiation, and customer service. The effects of emotions on behavior can be complex and context-dependent rather than straightforwardly mechanistic. Individuals may regulate the emotions they experience, the extent to which they display what they feel, and the actions they choose in response to how they feel.
Research has tended to focus on negative emotions (e.g., anger or anxiety) and their potential negative effects (e.g., aggression or avoidance), but negative emotions can sometimes have positive consequences. Discrete positive emotions have been relatively ignored in organizational research but feeling and expressing positive emotions often have positive consequences. There is considerable scope for investigating the ways in which specific discrete emotions are experienced, regulated, expressed, and acted upon in organizational life. There may also be a case for intentional efforts by organizations and employees to increase the occurrence of positive emotions at work.
Felice B. Klein, Kevin McSweeney, Cynthia E. Devers, Gerry McNamara, and Spenser Blosser
Scholars have devoted significant attention to understanding the determinants and consequences of executive compensation. Yet, one form of compensation, executive severance agreements, has flown under the radar. Severance agreements specify the expected payments and benefits promised executives, upon voluntary or involuntary termination. Although these agreements are popular among executives, critics continually question their worth. Yet severance agreements potentially offer three important (but less readily recognized) strategic benefits. First, severance agreements are viewed as a means of mitigating the potential risks associated with job changes; thus, they can serve as a recruitment tool to attract top executive talent. Second, because severance agreements guarantee executives previously specified compensation in the event of termination, they can help limit the downside risk naturally risk-averse executives face, facilitating executive-shareholder interest alignment. Third, severance agreements can aid in firm exit, as executives and directors are likely to be more open to termination, in the presence of adequate protection against the downside.
Severance agreements can contain provisions for ten possible termination events. Three events refer to change in control (CIC), which occurs under a change in ownership. These are (1) CIC without termination, (2) CIC with termination without cause, and (3) CIC with termination for cause. Cause is generally defined by events such as felony, fraud, embezzlement, neglect of duties, or violation of noncompete provisions. Additional events include (4) voluntary retirement, (5) resignation without good reason, (6) voluntary termination for good reason, (7) involuntary termination without cause, (8) involuntary termination with cause, (9) death, and (10) disability. Voluntary retirement and resignation without good reason occurs when CEOs either retire or leave under their own volition, and voluntary termination with good reason occurs in response to changes in employment terms (e.g., relocation of headquarters). Involuntary termination refers to termination due to any reason not listed above and is often triggered by unsatisfactory performance.
Although some prior work has addressed the antecedents, consequences, and moderators of severance, the findings from this literature remain unclear, as many of the results are mixed. Future severance scholars have the opportunity to further clarify these relationships by addressing how severance agreements can help firms attract, align the interests of, and facilitate the exit of executives.
Jennifer S. Leigh and Amy Kenworthy
Over the last three decades, service-learning has become a well-known experiential learning pedagogy in both management education and higher education more broadly. This popularity is observed in the increasing number of peer-reviewed publications on service-learning in management and business education journals, and on management education topics within higher education journals focused on civic engagement and community-based teaching and learning. In this field of study, it is known that service-learning can result in positive outcomes for students, faculty, and community members. In particular, for students, positive results are related to mastery of course content and group process skills like teamwork and communication, leadership, and diversity awareness. Despite the rise in scholarship, service-learning instructors still face several challenges in the area of best practice standards, fostering deep and cohesive partnerships, and managing institutional pressures that disincentivize engaged teaching practices. With constantly evolving challenges in management education, continued research is needed to understand a variety of service-learning facets such as platforms (face-to-face, hybrid, and virtual learning), populations (graduate vs. undergraduate populations and adult vs. traditional college-age learners), measurement (how to assess university-community partnerships and faculty instruction), and which institutional policies and procedures can enable and reward community-engaged teaching and learning approach.
Jawad Syed and Memoona Tariq
Diversity management refers to organizational policies and practices aimed at recruiting, retaining, and managing employees of diverse backgrounds and identities, while creating a culture in which everybody is equally enabled to perform and achieve organizational and personal objectives. In a globalized world, there is a need for contextual and transnational approaches to utilize the benefits that global diversity may bring as well as the challenges that organizations may face in managing a diverse workforce. In particular, it is important to take into account how diversity is theorized and managed in non-Western contexts, for example in BRICS countries (i.e., Brazil, Russia, India, China, and South Africa) and Muslim-majority countries. The literature confirms the need for organizational efforts to be focused on engaging with and managing a heterogeneous workplace in ways that not only yield sustainable competitive advantage but also are contextually and socially responsible. Organizations today are expected to take positive action, beyond legal compliance, to ensure equal access, employment and promotion opportunities, and also to ensure that diversity programs make use of employee differences, and contribute to local as well as global communities.