Executive remuneration, financial performance and corporate governance in UK and Spanish listed firms

This study examines the relationship between executive directors’ remuneration and the financial performance and corporate governance arrangements of the UK and Spanish listed firms. These countries’ corporate governance framework has been shaped by differences in legal origin, culture and backgrounds. For example, the UK legal arrangements can be defined as to be constituted in common-law, whereas for Spanish firms, the legal arrangement is based on civil law. We estimate both static and dynamic regression models to test our hypotheses and we estimate our regression using Ordinary Least Squares (OLS) and the Generalised Method of Moments (GMM). Estimated results for both countries show that directors’ remuneration levels are positively related with measures of firm value and financial performance. This means that remuneration levels do not lead to a point whereby firm value is reduced due to excessive remuneration. These results hold for our long-run estimates. That is, estimates based on panel cointegration and panel error correction. Measures of corporate governance also impacts on the level of executive pay. Our results have important implications for existing corporate governance arrangements and how the interests of stakeholders are protected. For example, long-run results suggest that directors’ remuneration adjusts in a way to capture variation in financial performance

Internal market orientation:construct, measurement and consequences

This thesis contributes to the paucity of marketing research into the area of internal marketing. Drawing from knowledge developed in a diverse range of marketing and management literatures, the domaill of internal marketing is clarified Gild a new concept, internal market orientation is developed. A new instrument, measuring the internal market orientation, is developed and subjected to standard scale development procedures. Six dimensions of the construct are confirmed; collegial interaction, group interaction, jorlllal interaction, external envirollment, wage flexibility and job flexibility. A sample of 766 UK retail store managers are surveyed to identify levels of internal market orientation and external market orientation in large UK multi-product, multi-site retailers and the structural relationships between internal market orientation, extemal market orientation alld company performance are examined. The external market orientation construct is applied to the local retail market and established measurement instruments adapted to this pwpose. Three measures of performance are employed ill this study. The structural relationships between the six dimensions of internal market orientation and the three dimensions of external market orientation are examined employing structural equations methodology, using LISREL 8.3. alld the impact of internal market orientation Oil external market orientation and company performance is measured. The study finds no direct link between internal market orientation and financial performance but does identify the moderated role of internal market orientation on financial performance. Significant relationships between three of the six dimensions of internal market orientation and the three dimensions of external market orientation are identified and the impact of internal market orientation on the retention of employees and their behaviour is also identified. The research findings contribute to marketing theory by providing empirical evidence to support the long held assumption that internal marketing has an impact on marketing success and offers an explanation of the mechanism by which this influence operates. For marketing practitioners, the research findings offer additional information on which services marketing strategies may be formulated.

Leadership and the negotiation of order in small groups

This thesis is focussed on the role differentiationhypothesis as it relates to small groups (Bales, 1958). The hypothesis is systematically examined, both conceptually and empirically, in the light of the Equilibrium Hypothesis (Bales, 1953) and the Negotiated Order Theory of leadership (e.g. Hosking, 1988). Chapter 1 sketches in a context for the research,which was stimulated by attempts during the 60s and 70s to organise small groups without leaders (the leaderless group, based on isocratic principles). Chapter 2 gives a conceptual and developmental overview of Bales' work, concentrating on the Equilibrium Hypothesis. It is argued that Bales' conceptual approach, if developed, can potentially integrate the disparate small groups and leadership literatures. Chapters 3 and 4 examine the concepts `group', `leader' and `leadership' in terms of the Negotiated Order perspective. In chapter 3 it is argued that two aspects of the concept group need to be taken separately into account; physical attributes and social psychological aspects (the metaphysical glue). It is further argued that a collection of people becomes a group only when they begin to establish a shared sense of social order. In chapter 4 it is argued that leadership is best viewed as a process of negotiation between those who influence and those who are influenced, in the context of shared values about means and ends. It is further argued that leadership is the process by which a shared sense of social order is established and maintained, thus linking the concepts `leadership' and `group' in a single formulation. The correspondences with Bales' approach are discussed at the end of the chapter. Chapters 5 to 8 present a detailed critical description and evaluation of the empirical work which claims to show role differentiation or test the hypothesis, both Bales original work and subsequent studies. It is argued here, that the measurement and analytical procedures adopted by Bales and others, in particular the use of simple means as summaries of group structures, are fundamentally flawed, and that role differentiation in relation to particular identifiable groups has not been demonstrated clearly anywhere in the literature. Chapters 9 to 13 present the empirical work conducted for the thesis. 18 small groups are examined systematically for evidence of role differentiation using an approach based on early sociometry (Moreno, 1934). The results suggest that role differentiation, as described by Bales, does not occur as often as is implied in the literature, and not equivocally in any case. In particular structures derived from Liking are typically distributed or weak. This suggests that one of Bales' principal findings, that Liking varies independently of his other main dimensions, is the product of statistical artifact. Chapter 14 presents a general summary of results and presents some considerations about future research.

Advanced manufacturing technology and work design:towards a theoretical framework

This paper introduces a theoretical framework to guide research into the psychological effects of advanced manufacturing technology (AMT) on shopfloor operators. The framework has two main aspects. First, based on the emerging literature on the job content implications of AMT, it identifies four key constructs, namely: control, cognitive demand, production responsibility and social interaction. Second, by drawing on the more established job design, stress and related literatures, it predicts how these independent variables differentially affect system performance, job-related strain and job satisfaction. The wider implications and limitations of the theoretical framework are discussed.

The effects of servant leadership on follower performance and well-being:underlying mechanisms, boundary conditions, and the role of training

Based on a review of the servant leadership, well-being, and performance literatures, the first study develops a research model that examines how and under which conditions servant leadership is related to follower performance and well-being alike. Data was collected from 33 leaders and 86 of their followers working in six organizations. Multilevel moderated mediation analyses revealed that servant leadership was indeed related to eudaimonic well-being and lead-er-rated performance via followers’ positive psychological capital, but that the strength and di-rection of the examined relationships depended on organizational policies and practices promot-ing employee health, and in the case of follower performance on a developmental team climate, shedding light on the importance of the context in which servant leadership takes place. In addi-tion, two more research questions resulted from a review of the training literature, namely how and under which conditions servant leadership can be trained, and whether follower performance and well-being follow from servant leadership enhanced by training. We subsequently designed a servant leadership training and conducted a longitudinal field experiment to examine our sec-ond research question. Analyses were based on data from 38 leaders randomly assigned to a training or control condition, and 91 of their followers in 36 teams. Hierarchical linear modeling results showed that the training, which addressed the knowledge of, attitudes towards, and ability to apply servant leadership, positively affected leader and follower perceptions of servant leader-ship, but in the latter case only when leaders strongly identified with their team. These findings provide causal evidence as to how and when servant leadership can be effectively developed. Fi-nally, the research model of Study 1 was replicated in a third study based on 58 followers in 32 teams drawn from the same population used for Study 2, confirming that follower eudaimonic well-being and leader-rated performance follow from developing servant leadership via increases in psychological capital, and thus establishing the directionality of the examined relationships.

A social psychological analysis of strikes

A participant observation method was employed :in the study of a 20-week stoppage at Ansells Brewery Limited, a constituent company of Allied Breweries (U.K.). The strike, :involving 1,000 workers, began :in opposition to the implementation of a four-day working week and culminated in the permanent closure of the brewery. The three main phases of the strike's development (i.e., its :initiation, maintenance and termination) were analysed according to a social-cognitive approach, based on the psychological imagery, beliefs, values and perceptions underlying the employees' behaviour. Previous psychological treatments of strikes have tended to ignore many of the aspects of social definition, planning and coordination that are an integral part of industrial action. The present study is, therefore, unique in concentrating on the thought processes by which striking workers .make sense of their current situation and collectively formulate an appropriate response. The Ansells strike provides an especially vivid illustration of the ways in which the seminal insights of a small number of individuals are developed, via processes of communication and:influence, into a consensual interpretation of reality. By adopting a historical perspective, it has been possible to demonstrate how contemporary definitions are shaped by the prior history of union-management relations, particularly with regard to: (a) the way that previous events were subjectively interpreted, and (b) the lessons that were learned on the basis of that experience. The present approach is psychological insofar as it deals with the cognitive elements of strike action. However, to the extent that it draws from relevant sections of the industrial relations, organizational behaviour, sociology, anthropology and linguistics literatures, it can claim to be truly interdisciplinary.

On the persuadability of memory:is changing people's memories no more than changing their minds?

The observation of parallels between the memory distortion and persuasion literatures leads, quite logically, to the appealing notion that people can be 'persuaded' to change their memories. Indeed, numerous studies show that memory can be influenced and distorted by a variety of persuasive tactics, and the theoretical accounts commonly used by researchers to explain episodic and autobiographical memory distortion phenomena can generally predict and explain these persuasion effects. Yet, despite these empirical and theoretical overlaps, explicit reference to persuasion and attitude-change research in the memory distortion literature is surprisingly rare. In this paper, we argue that stronger theoretical foundations are needed to draw the memory distortion and persuasion literatures together in a productive direction. We reason that theoretical approaches to remembering that distinguish (false) beliefs in the occurrence of events from (false) memories of those events - compatible with a source monitoring approach - would be beneficial to this end. Such approaches, we argue, would provide a stronger platform to use persuasion findings to enhance the psychological understanding of memory distortion.