Nagarajan Ramamoorthy

Causes and consequences of psychological contracts among knowledge workers in the high technology and financial services industries

As organizations shift the central focus of their competitive strategy away from value appropriation towards value creation it is to knowledge workers that they will look to provide the innovation to fuel their continued development. The state of the relationship between the knowledge worker and the employer - the psychological contract - will determine whether this source of innovation and creativity is released. In this study, we developed and tested a causal model of the causes and consequences of psychological contract. Over four hundred participants who were knowledge employees drawn from eleven leading edge companies in the high-technology software, manufacturing and financial services sector participated in the study. We found support for the hypothesis that the psychological contract and those organizational processes relating to procedural justice would have a direct effect on two critical organizational outcomes, namely, employee commitment and intention to remain with the organization. We also found support for the hypothesis that psychological contract variables mediated the relationship between organizational processes and employee commitment and intention to stay with the organization.

Individualism/Collectivism, Perceived Task Interdependence and Teamwork Attitudes among Irish Blue-Collar Employees: a Test of the Main and Moderating Effects?

Two-hundred and four blue-collar employees participated in a study in which we tested for the effects of individualism/collectivism (I/C) orientations (solitary work preference, supremacy of individual goals, competitiveness, and self-reliance dimensions) and perceived task interdependence on two employee attitudes: team loyalty and prosocial behavior. We found support for the hypothesis that perceived task interdependence had positive effects on team loyalty and prosocial behavior. Further, solitary work preference, supremacy of individual goals, and self-reliance dimensions of I/C had main effects on loyalty to the team. The supremacy of individual goals dimension of I/C also had a main effect on pro-social behavior. We also found that task interdependence moderated the relationships between solitary work preference and pro-social behavior. The implications of our findings are discussed.

Employee Attitudes and Behavioral Intentions: A Test of the Main and Moderating Effects of Individualism-Collectivism Orientations

In this study, we examine whether individualism/collectivism (I/C) orientations predict employee attitudes and behavioral intentions, and also consider whether I/C orientation moderates the relationship between equity perceptions and these variables. Four hundred and two employees from 11 high technology and financial services companies participated in this study. Results indicated that the competitiveness dimension of I/C moderated the relationships between equity perceptions and effort, and equity perceptions and obligations towards teamwork. Similarly, the solitary work preference dimension of I/C moderated the relationships between equity perceptions and career intent, and equity perceptions and obligations towards teamwork. The interactions between equity perceptions and I/C dimensions produced interesting effects. The results suggest that varying levels of equity perceptions are associated with different effects on employee attitudes and behavioral intentions depending on the level of employee individualism or collectivism orientations. Also, the solitary work preference dimension of I/C was positively related to organizational commitment contrary to the hypothesized direction. Implications for research and practice are discussed.

Commitment, flexibility and the choice of employment contracts

The study of the factors influencing a firm’s choice of employment contract occupies a critical role in the strategic human resource management literature. However, existing research does not adequately address an important question in an uncertain environment: Can a firm balance the apparently conflicting considerations of ‘commitment’ and ‘flexibility’, underlying employment contracts? By integrating research on transaction cost economics and the resource-based view, we propose that a firm may avoid the tradeoff between commitment and flexibility by differentiating between two types of human asset specificity: ‘firm specificity’ and ‘usage specificity’. The interplay between the two types of human asset specificity and their value-creation potential has fundamentally different implications for a firm’s choice of employment contract. By distinguishing between behavioral and competitive uncertainties, we propose that different types of uncertainties may influence levels of commitment and flexibility, and ultimately the choice of employment contract. Implications for research and practice are discussed.

Organizational Justice Perceptions and Employee Attitudes among Irish Blue Collar Employees: An Empirical Test of the Main and Moderating Roles of Individualism/Collectivism **

Prior research indicates that individualism - collectivism orientations (I/C) of employees, as well as organizational justice perceptions - procedural and distributive justice perceptions - influence the following employee attitudes: affective/normative commitments, pro-social behaviour, team loyalty, and tenure intent. Research also suggests that I/C orientations are related to justice perceptions with individualism orientation favouring equity principle and collectivism orientation favouring equality principles. Under the assumption that individualism orientation favours equity and procedural justice principles, we empirically test the main effects of I/C orientations and justice principles on employee attitudes. In addition, we also test whether I/C orientations moderate the relationships between justice perceptions and these employee attitudes. We tested these hypotheses using a survey methodology consisting of a sample of two-hundred and four employees from Ireland. Implications for research and practice are discussed.

Dimensions of individualism-collectivism: a comparative study of five cultures@@@Individualizmo-kolektyvizmo dimensijos: penkių kultūrų lyginamoji analizė

Abstract The present study examined cultural differences on seven dimensions of individualism – collectivism orientations in Bulgaria, India, Ireland, Israel and the United States. These cultures did not differ on the individualism – collectivism dimensions of emphasis on in-dividual welfare and self-reliance. Differences exist on the dimensions of competitiveness, solitary work preference, supremacy of individual interests and supremacy of individual go-als, and lack of sacrifice for the group. Results showed that Irish and American cultures were somewhat similar and Indian and Bulgarian cultures were somewhat similar with Israelis exhibiting higher individualistic tendencies. Therefore, multi-national organizations may find it difficult to transplant their home country managerial practices (e.g., reward systems, performance appraisal systems, and team-based job design) in a foreign country subsidiary having a different cultural orientation. Results also indicated that similarities exist suggesti-ng that cultural values may be converging to some extent due to globalization.

Employee stock option plan and employee attitudes: A test of extrinsic versus intrinsic models

Purpose – The objective of this research is to present a causal model of the influence of stock options on psychological contract and employee attitudes, and report results of an initial empirical examination of this model.Design/methodology/approach – To test the model, data were collected using a survey methodology from 98 employees in a large financial services firm. Multiple‐regression equations were used to derive the path coefficients.Findings – The psychological contract variable of met expectations mediated the relationships between stock options and tenure intent and organizational commitment thus providing support for the intrinsic value model. Equity perceptions mediated the relationship between stocks exercised and met expectations. Equity perceptions, however, did not mediate the relationship between stock options and employee attitudes. Similarly, stock earnings also had a direct effect on external career intent indicating that employees who had exercised their stock options were looking for...

Leader–member exchange, subordinate stewardship, and hierarchical governance

In this article, by integrating the institutional theory, leader–member exchange (LMX) theory, and stewardship theory, we propose a model of subordinate stewardship behaviors in organizational hierarchies and the resultant hierarchical governance structures. First, we develop propositions suggesting that the quality of LMX (supervisor–subordinate) is determined by three antecedents: leader characteristics, subordinate characteristics, and internal organizational context. The quality of LMX, in turn, affects the subordinate stewardship behaviors. Second, by integrating institutional theory and stewardship theory, we propose that the interaction between isomorphic pressures and the level of subordinate stewardship behaviors may result in four distinct types of hierarchical governance structures: isomorphic stewardship, isomorphic controls, firm-specific controls, and firm-specific stewardship. These governance mechanisms reflect the internal drive toward subordinate stewardship, while complying with the external norms of isomorphism. Thus, different types of governance structures may exist between and within firms. Implications of this model are discussed here.

Self-Directed Learning Readiness, Individualism–Collectivism and Adult Student Learning in Online Environment: Development and Test of a Causal Model

Over the past few decades, distance learning as a training method has grown considerably. while distance learning has had different forms such as correspondence course, interactive television – the advent of technology – has enabled teaching institutions and individuals to engage in distance learning, notably online learning, as evidenced in the growth of online degrees. The education delivered through web-enabled technology has been an attractive aspect of obtaining education for adult learners who are full-time employees and/or have other commitments such as family obligations or engage in frequent travel. Given the asynchronous and flexible nature of learning it is of paramount importance to institutions and individuals to identify individual differences relating to the learning that may help or hamper their learning process.

The Psychological Foundations of Supervisor–Subordinate Information Asymmetry

Information asymmetry in an employment relationship is much researched in the organization studies literature because of its consequences for employment contracts, compensation, and rent appropriation by the involved parties. However, its psychological antecedents have not been adequately addressed so far. We conceptually investigate the psychological drivers of supervisor–subordinate information asymmetry by primarily invoking social exchange theory. Whereas agency theory examines how information distribution is driven by self-interest seeking, social exchange theory emphasizes how individuals may be motivated to fulfill social obligations and not by exclusive self-interest seeking. This paper advances several propositions regarding the influence of a subordinate’s and supervisor’s psychological variables, such as relational identification, disposition for relational trust, assumed similarity, and the shaping techniques used by a supervisor on information asymmetry. In doing so, it highlights the underlying social exchange (social attraction and reciprocity), and the cognitive, affective, and behavioral processes. The influence of the psychological variables on information asymmetry may be moderated by contextual factors, such as interactional justice climate in teams, agency costs, and the type of employment relationship.