An Empirical Analysis of Manufacturing Overhead Cost Drivers

Empirical validity of the claim that overhead costs are driven not by production volume but by transactions resulting from production complexity is examined using data from 32 manufacturing plants from the electronics, machinery, and automobile components industries. Transactions are measured using number of engineering change orders, number of purchasing and production planning personnel, shop- floor area per part, and number of quality control and improvement personnel. Results indicate a strong positive relation between manufacturing overhead costs and both manufacturing transactions and production volume. Most of the variation in overhead costs, however, is explained by measures of manufacturing transactions, not volume.

Authentic Leadership and Behavioral Integrity as Drivers of Follower Commitment and Performance

The literatures on both authentic leadership and behavioral integrity have argued that leader integrity drives follower performance. Yet, despite overlap in conceptualization and mechanisms, no research has investigated how authentic leadership and behavioral integrity relate to one another in driving follower performance. In this study, we propose and test the notion that authentic leadership behavior is an antecedent to perceptions of leader behavioral integrity, which in turn affects follower affective organizational commitment and follower work role performance. Analysis of a survey of 49 teams in the service industry supports the proposition that authentic leadership is related to follower affective organizational commitment, fully mediated through leader behavioral integrity. Next, we found that authentic leadership and leader behavioral integrity are related to follower work role performance, fully mediated through follower affective organizational commitment. These relationships hold when controlling for ethical organizational culture.