Kenneth R. Ferris

Occupational reality shock and organizational commitment: Evidence from the accounting profession

Abstract A longitudinal field survey was undertaken to investigate the effects of occupational reality shock on the organizational commitment attitudes, intentions, and behavior of professional accountants. Comparative data was collected over a one year period from a sample of accountants employed in the controllers division of a large (Fortune 100) industrial firm and from a sample of accountants employed by a “Big Eight” public accounting firm. The results portray reality shock as having a significant, asymmetrical impact on the work-related attitudes, intentions, and to a lesser extent behavior of accountants employed in both organizational settings.

Evidence for a Curvilinear Relationship Between Job Performance and Turnover

Research on job performance and turnover has not investigated the possibility of a curvilinear relationship between these variables. The present study tested for the presence of a curvilinear relationship between job performance and turnover in two diverse employee groups, using samples of 169 male accountants (average age: 25.6 years) and 107 owner-operator truck drivers (average age: 38.4 years). Measures of performance for the two samples were obtained from company records. Testing for a curvilinear effect within each sample was done by regressing performance and the performance squared term on turnover, and confirming the findings by using logistic regression. The resulting standardized regression equations were plottedfor each sample, using scores one to three standard deviations above and below the mean of the independent variables. Results indicated that performance was related to turnover in a curvilinear fashion in both professional and non-professional samples.

Organizational commitment and performance in a professional accounting firm

Abstract In recent years, the concept of employee commitment to the organization has received increased attention as a determinant of employee performance. Research on the relationship between these two variables, however, has produced conflicting results. The study reported herein examines the relationship between a group of antecedent variables and organizational commitment, and the relationship between commitment and employee performance. The study was carried out using a sample of 123 junior-level staff accountants and a validation sample of 46 senior-level accountants. It was found that for both samples, work-related antecedent variables influenced commitment whereas personal variables did not. With respect to the commitment-performance relationship, the results differed between the two samples. At the junior-level, performance was found to be influenced by a willingness to exert effort on behalf of the organization, whereas at the senior-level, performance was found to be influenced by a desire to maintain membership in the organization.

Sources of professional staff turnover in public accounting firms: Some further evidence

A recent article by Rhode et al. (1977) identified 39 variables associated with professional staff turnover in public accounting firms. The present study attempted to extend this prior work by examining the antecedents of the turnover act, namely those variables associated with the turnover decision. Using a valence-instrumentality-expectancy framework, measures of task outcome valence and instrumentality were evaluated with turnover expectations for a sample of 306 staff-level accountants. The findings indicated that the turnover decision was largely a function of negatively-valued task outcomes and the likelihood of obtaining these outcomes in ones current position, and the higher likelihood of obtaining certain positive outcomes in alternative positions.

Explanatory variables of auditor performance in a large public accounting firm

Abstract Prior research on the determinants of individual performance in professional accounting firms has been narrowly focused on the relationship between individual motivation and performance. This study deviates from that trend and examines the relationships between a broad group of employee characteristics and auditor performance. Data for the study was collected from a sample of 90 staff-level auditors and was analyzed using canonical correlation analysis. The results indicated that while rated performance was primarily a function of the auditors motivation and organizational commitment, rewarded performance (or salary) was primarily a function of task-related ability and the interpersonal attraction between the auditor and his supervisor.

The Valuation of PBGC Insurance Premiums Using an Option Pricing Model

This study applies an option pricing model to empirically derive pension put values for a sample of 176 individual pension plan sponsors insured by the Pension Benefit Guaranty Corporation (PBGC). This study finds that the pension put values for a group of 22 underfunded sponsors were significantly greater than the insurance premiums paid to the PBGC. On the other hand, for a group of 154 overfunded sponsors, the put values were also greater than the pension premiums paid to the PBGC, although the difference was not statistically significant. These findings suggest that underfunded plan sponsors are significantly undercharged by the PBGC, while overfunded plan sponsors are approximately fairly charged.

A comparison of V-I-E model predictions: A cross-national study in professional accounting firms

Abstract Behavioral research in accounting has largely ignored the impact of cross-national differences. This paper deviates from that trend and reports the results of a study comparing the predictive ability of the Valence-Instrumentality-Expectancy (V-I-E) model of motivation in two cultural settings: Australia and the United States of America. Data was collected from a matched sample of 45 staff-level auditors drawn from a large public accounting firm in each of the two respective countries. The findings indicate that few differences exist between the two groups with respect to personal value structures, motivation levels, and perceptions of the work environment. The results are significant both as a systematic cross-national comparison of accounting groups and as an extension of current V-I-E research in accounting.

Perspectives on Accounting Systems and Human Behaviour

The extant literature with regard to the impact of accounting systems on human behaviour is described. How accounting systems, the components of such systems and the information produced by such systems induce both intended and unintended behavioural outcomes is focused on.

Perceived environmental uncertainty, organizational adaptation, and employee performance: A longitudinal study in professional accounting firms

Abstract The importance of organizational adaptation to the environment has been long recognized. A major feature of this adaptation process involves coping with environmental uncertainty. This paper reports the results of an exploratory longitudinal study which investigated the effectiveness of organizational coping in several large professional accounting firms. A significant positive relationship was observed between the reported level of organizational coping and employee performance. The implications of this finding for professional accounting firms, and organizations in the general, are discussed.

Educational predictors of professional pay and performance

Abstract This paper reports the results of a study which examined the relationship between several educational indices, and the pay and performance of professional accountants. The findings indicated that there was little relationship between educational background and subsequent on-the-job performance. With respect to pay, the results indicated that, at the entry level, salary was primarily a function of the level of educational attainment and the quality of the institution attended. No relationship was found between academic performance and public accounting compensation.