Richard S. Allen

Linking strategic practices and organizational performance to Porter's generic strategies

Purpose – While Porters generic strategies are a widely accepted typology of strategic options for businesses, prior studies have not linked specific strategic practices with each generic strategy and explored the associations between the practices and overall organizational performance. The purpose of this paper is to propose and test the following two hypotheses: specific strategic practices (or tactics) can be identified which are associated with each generic Porter strategy; and there are specific strategic practices which are more strongly associated with higher levels of organizational performance within each generic strategy.Design/methodology/approach – To test these hypotheses, a questionnaire was developed and administered to a sample of 226 working adults. A factor analysis and regression analyses were used to analyze the data.Findings – Findings include a list of critical strategic practices significantly associated with organizational performance for each of Porters generic strategies.Resea...

Critical tactics for implementing Porter's generic strategies

Purpose – To identify and cite examples of critical tactics for implementing Porters generic strategies.Design/methodology/approach – A survey of over 200 organizations was conducted to determine their relative use of tactics and organizational performance. Factor analysis and regression analyses were used to identify tactics that were strongly related to organizational performance. Examples of implementation are presented to illustrate use of the critical tactics.Findings – A list of ten tactics were identified as significantly related with the generic strategies and higher levels of organizational performance.Research limitations/implications – As is typical with survey research, the convenience sample of organizations used in this survey may or may not be representative of all organizations. Also, when using regression analysis it is important to keep in mind that correlation does not necessarily mean causation. Therefore we are not certain that the significant tactics caused the higher levels of orga...

Perceived diversity and organizational performance

Purpose – The purpose of this paper is to investigate the relationship between employee perceptions of diversity within the senior management, management and non‐management levels of their organizations and their perceptions of organizational performance.Design/methodology/approach – Surveys were administered to 391 managers or professionals in 130 organizations located in the southeastern United States to determine their perceptions of diversity and performance within their organizations.Findings – Regression analysis found strong support for the hypothesis that employee perceptions of diversity at the senior management level of an organization is positively related to perceptions of organizational performance. Likewise, there was support for the hypothesis that employee perceptions of diversity at the non‐manager level were positively related to perceptions of organizational performance.Research limitations/implications – The current study was based strictly on perceptual measures. Future research could...

The role of the reward system for a total quality management based strategy

This study examines the impact of reward practices on the relationship between an organizational strategy based on the principles of total quality management (TQM) and perceptions of firm performance. Major findings include: higher levels of firm performance were significantly correlated with greater use of TQM practices, but not with greater use of quality rhetoric in either formal strategic documents or informal strategic discussions; the use of extrinsic reward practices – including profit sharing, gainsharing, employment security, and comp time – exhibited a significantly positive moderating effect on the relationship between TQM and perceived firm performance. Regarding implications for practitioners, it is insufficient to include quality rhetoric in the formal and informal strategy. As the anecdotal literature has often advocated, the current research provides empirical support that management must “walk the talk” with regard to TQM efforts. Further, in order to realize even higher levels of firm performance, an organization should utilize reward practices which specifically complement its TQM‐based strategy.

What makes a “research star”? Factors influencing the research productivity of business faculty

Purpose - The purpose of this paper is to identify factors influencing extremely high or low research productivity for business faculty members. Design/methodology/approach - Using data originating from a random sample of 236 faculty members across a wide range of accredited business schools and a web-based survey, main effects are hypothesized and explored. The authors examine only extreme data points of high (and low) research productivity to focus on high-performing research “stars.” Findings - It is found that research “stars” hold higher academic rank, possess greater time management skills, individually place a high value on research, report higher time available to conduct research, enjoy higher institutional support in the form of graduate assistants and summer research support, have fewer course preparations, and work for departments with a similar priority placed on research. Research limitations/implications - The authors found that certain person- and situation-level factors differentiate high and low performing faculty members’ research output. Practical implications - The paper has implications for university administrators regarding recruiting, selecting, and managing faculty members’ research performance. Originality/value - Research productivity and intellectual contributions continue to dominate much of higher education as a primary measure of faculty members’ success. One area that remains under-explored in the business literature is what “makes a research star” and, to the contrary, what factors predict extremely low faculty research productivity? Shedding light on this research question provides practical benefits for universities by enabling administrators to better recruit, select, motivate, and develop productive faculty members.

Aligning reward practices in support of total quality management

T he rise of Total Quality Management represents one of the biggest changes of the past two decades in the way companies are managed. It has become known by various names-TQM. continuous improvement, total quality, process improvement. A survey by Lawler, Mohrman, and Ledford (1995) of the 1,000 largest U.S. companies reports that nearly 75 percent were using TQM practices to manage the organization and 78 percent planned to increase their use of them in the near future. Many studies have found that, in general, TQM has had positive effects on company performance. Yet reports of failure are surprisingly common in the press. Newswee& the Wall Street Journal, and Fortune have all deemed TQM only a partial success or a passing fad. Many firms have tried it, experienced less than positive results, and decided to abandon it. Yet TQM clearly cannot be dead if three-quarters of America’s largest corporations continue to embrace it. The study of organizational development, says Kilmann (1989), suggests that alignment of a company’s system of rewards is a critical ingredient in successful organizational change. We decided to investigate whether anyone has ever taken a close look at the relationship between reward practices and TQM. After a review of the existing literature, we concluded that while some people have pointed out the importance of using reward practices that support TQM, and others have provided anecdotal examples, no one has yet conducted a careful, scientific examination of the topic. So we undertook a survey of a broad range of companies with the goal of determining which reward practices are most appropriate for them to use in support of TQM programs. Our findings suggest that certain practices do play a key role in supporting TQM, and that the use of the proper ones can help make TQM more effective at improving company performance. We reported the Q: Why aren’t T’M practices us effective CYS they could be? A: Reward systemthe missing link that motivates managers and employees to “WC& the tuk” and use TQM to the fullest. results of this study in a very technical format to the academic community (Allen and Kilmann 2001). Our purpose here is to share the findings and implications with a more practitioner-oriented community of managers and decision-makers. The major contribution, we hope, is that they will learn how to tailor their reward systems in support of a TQMbased strategy. They should then be able to make reward practice decisions based on the results of a scientific study rather than relying simply on intuition, experience, or trial and error. Some examples from firms will help illustrate the exemplary use of effective reward practices.

Rewards and Organizational Performance in Japan and the United States: A Comparison

The effectiveness of reward practices in a variety of national cultures is not often studied. Based on an earlier study of reward practices and performance in the United States, this article extends that research to compare U.S. reward practices’ effectiveness with the effectiveness of practices in Japanese organizations. The findings suggest that although some reward practices may be universally effective regardless of national culture, others appear to be effective based on a fit with the prevailing national cultural norms. It is important for managers and human resource professionals to carefully consider national cultural values when designing a rewards system to fit their organizations. Some reward practices may be universally effective regardless of culture; others may be culturally sensitive.

Reward Practices and Organizational Performance

Many current reward practices have not been studied to determine whether their rewards are related to organizational performance. This article describes a study undertaken to explore the relationship between reward practices and organizational performance. The findings suggest that a small group of reward practices is linked to greater perceived organizational performance. Suggestions for managers as well as recommendations for further research are provided.

Cross‐cultural equity sensitivity: a test of differences between the United States and Japan

Purpose – This study aims to examine the cross‐cultural differences in equity sensitivity between the USA and Japan.Design/methodology/approach – A sample of 390 Americans and 202 Japanese were surveyed to determine their equity sensitivities and how each group would likely respond to under‐payment scenarios.Findings – The findings support the notion that the Japanese are in fact more entitled in their equity orientation than Americans. Furthermore, the Japanese were also significantly more likely to respond with overt actions to reduce their feelings of inequity.Research limitations/implications – Foremost among these limitations is the fact that the situation presented to the subjects was hypothetical rather than real. Since it would be considered unethical to manipulate subjects in real work settings a first person scenario approach was utilized consistent with other equity theory literature. While the scenario was easily identifiable by the student subjects, it is unknown if the findings from this res...

Affective organizational commitment and organizational citizenship behavior: examining the relationship through the lens of equity sensitivity

The main purpose of this study was to test the relationship between affective organizational commitment (AOC), organizational citizenship behavior (OCB), and equity sensitivity, which heretofore has not been examined. Results revealed an interaction between AOC and equity sensitivity such that persons with an entitled orientation exhibited higher levels of OCB as their degree of AOC increased. Individuals with an entitled orientation and lower levels of AOC exhibited the lowest levels of OCB. This research suggests that organizations should focus on improving the level of AOC in order to increase the citizenship behavior of their entitled members. The moderating effect of equity sensitivity may help to explain why the relationship between AOC and OCB has been characterized as modest or weak in previous research studies.