How organizational cognitive neuroscience can deepen understanding of managerial decision-making:a review of the recent literature and future directions

There is growing interest in exploring the potential links between human biology and management and organization studies, which is bringing greater attention to bear on the place of mental processes in explaining human behaviour and effectiveness. The authors define this new field as organizational cognitive neuroscience (OCN), which is in the exploratory phase of its emergence and diffusion. It is clear that there are methodological debates and issues associated with OCN research, and the aim of this paper is to illuminate these concerns, and provide a roadmap for rigorous and relevant future work in the area. To this end, the current reach of OCN is investigated by the systematic review methodology, revealing three clusters of activity, covering the fields of economics, marketing and organizational behaviour. Among these clusters, organizational behaviour seems to be an outlier, owing to its far greater variety of empirical work, which the authors argue is largely a result of the plurality of research methods that have taken root within this field. Nevertheless, all three clusters contribute to a greater understanding of the biological mechanisms that mediate choice and decision-making. The paper concludes that OCN research has already provided important insights regarding the boundaries surrounding human freedom to act in various domains and, in turn, self-determination to influence the workplace. However, there is much to be done, and emerging research of significant interest is highlighted.

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.

High-performance human resource practices, citizenship behaviour and organizational performance:A relational perspective

Taking a relational perspective on the employment relationship, we examined processes (mediation and moderation) linking high-performance human resource practices and productivity and turnover, two indicators of organizational performance. Multilevel analysis of data from hotels in the People's Republic of China revealed that service-oriented organizational citizenship behavior (OCB) partially mediated the relationships between high-performance human resource practices and both performance indicators. Unemployment rate moderated the service-oriented OCB-turnover relationship, and business strategy (service quality) moderated the service-oriented OCB-productivity relationship. Copyright of the Academy of Management, all rights reserved.

Human resource management and organizational performance:evidence from the retail banking sector

Underpinned by the resource-based view (RBV), social exchange theory (SET), and a theory of intrinsic motivation (empowerment), I proposed and tested a multi-level model that simultaneously examines the intermediate linkages or mechanisms through which HPWS impact individual and organizational performance. First and underpinned by RBV, I examined at the unit level, collective human capital and competitive advantage as path-ways through which the use of HPWS influences – branch market performance. Second and-, underpinned by social exchange (perceived organizational support) and intrinsic motivation (psychological empowerment) theories, I examined cross and individual level mechanisms through which experienced HPWS may influence employee performance. I tested the propositions of this study with multisource data obtained from junior and senior customer contact employees, and managers of 37 branches of two banks in Ghana. Results of the Structural Equation Modeling (SEM) analysis revealed that (i) collective human capital partially mediated the relationship between management-rated HPWS and competitive advantage, while competitive advantage completely mediated the influence of human capital on branch market performance. Consequently, management-rated HPWS influenced branch market performance indirectly through collective human capital and competitive advantage. Additionally, results of hierarchical linear modeling (HLM) tests of the cross-level influences on the motivational implications of HPWS revealed that (i) management-rated HPWS influenced experienced HPWS; (ii) perceived organizational support (POS) and psychological empowerment fully mediated the influence of experienced HPWS on service-oriented organizational citizenship behaviour (OCB), and; (iii) service-oriented OCB mediated the influence of psychological empowerment and POS on service quality and task performance. I discuss the theoretical and practical implications of these findings.

The brain in business:the case for organizational cognitive neuroscience?

The application of cognitive neuroscientific techniques to understanding social behaviour has resulted in many discoveries. Yet advocates of the ‘social cognitive neuroscience’ approach maintain that it suffers from a number of limitations. The most notable of these is its distance from any form of real-world applicabity. One solution to this limitation is ‘Organisational Cognitive Neuroscience’ – the study of the cognitive neuroscience of human behaviour in, and in response to, organizations. Given that all of us will spend most of our lives in some sort of work related organisation, organisational cognitive neuroscience allows us to examine the cognitive underpinnings of social behaviour that occurs in what may be our most natural ecology. Here we provide a brief overview of this approach, a definition and also some possible questions that the new approach would be best suited to address.

Should I stay or should I go? Explaining turnover intentions with organizational identification and job satisfaction

The social identity approach is a powerful theoretical framework for the understanding of individuals behaviour. The main argument is that individuals think and act on behalf of the group they belong to because this group membership adds to their social identity, which partly determines ones self-esteem. In the organizational world, social identity and self-categorization theories state that a strong organizational identification is associated with low turnover intentions. Because identification is the more general perception of shared fate between employee and organization, we propose that the relationship between identification and turnover will be mediated by job satisfaction as the more specific evaluation of ones task and working conditions. In four samples we found organizational identification feeding into job satisfaction, which in turn predicts turnover intentions.

A longitudinal study of Chinese managerial behaviour:an inside view of decision-making under the economic reform

This research compared decision making processes in six Chinese state-owned enterprises during the period 1985 to 1988. The research objectives were: a) To examine changes in the managerial behaviour over a period of 1985 to 1988 with a focus on decision-making; b) Through this examination, to throw light on the means by which government policies on economic reform were implemented at the enterprise level; c) To illustrate problems encountered in the decentralization programme which was a major part of China's economic reform. The research was conducted by means of intensive interviews with more than eighty managers and a survey of documents relating to specific decisions. A total of sixty cases of decision-making were selected from five decision topics: purchasing of inputs, pricing of outputs, recruitment of labour, organizational change and innovation, which occurred in 1985 (or before) and in 1988/89. Data from the interviews were used to investigate environmental conditions, relations between the enterprise and its higher authority, interactions between management and the party system, the role of information, and effectiveness of regulations and government policies on enterprise management. The analysis of the data indicates that the decision processes in the different enterprises have some similarities in regard to actor involvement, the flow of decision activities, interactions with the authorities, information usage and the effect of regulations. Comparison of the same or similar decision contents over time indicates that the achievement of decentralization varied according to the topic of decision. Managerial authority was delegated to enterprises when the authorities relaxed their control over resource allocation. When acquisition of necessary resources is dependent upon the planning system or the decision matter is sensitive, because it involves change to the institutional framework (e.g. the Party), then a high degree of centralization was retained, resulting in a marginal change in managerial behaviour. The economic reform failed to increase decision efficiency and effectiveness of decision-making. The prevailing institutional frameworks were regarded as negative to the change. The research argues that the decision process is likely to be more contingent on the decision content than the organization. Three types of decision process have been conceptualized, each of them related to a certain type of decision content. This argument gives attention to the perspectives of institution and power in a way which facilitates an elaboration of organizational analysis. The problems encountered in the reform of China's industrial enterprises are identified and discussed. General recommendations for policies of further reform are offered, based on the analysis of decision process and managerial behaviour.

Task classification and decision processes in monitoring behaviour

Task classification is introduced as a method for the evaluation of monitoring behaviour in different task situations. On the basis of an analysis of different monitoring tasks, a task classification system comprising four task 'dimensions' is proposed. The perceptual speed and flexibility of closure categories, which are identified with signal discrimination type, comprise the principal dimension in this taxonomy, the others being sense modality, the time course of events, and source complexity. It is also proposed that decision theory provides the most complete method for the analysis of performance in monitoring tasks. Several different aspects of decision theory in relation to monitoring behaviour are described. A method is also outlined whereby both accuracy and latency measures of performance may be analysed within the same decision theory framework. Eight experiments and an organizational study are reported. The results show that a distinction can be made between the perceptual efficiency (sensitivity) of a monitor and his criterial level of response, and that in most monitoring situations, there is no decrement in efficiency over the work period, but an increase in the strictness of the response criterion. The range of tasks exhibiting either or both of these performance trends can be specified within the task classification system. In particular, it is shown that a sensitivity decrement is only obtained for 'speed' tasks with a high stimulation rate. A distinctive feature of 'speed' tasks is that target detection requires the discrimination of a change in a stimulus relative to preceding stimuli, whereas in 'closure' tasks, the information required for the discrimination of targets is presented at the same point In time. In the final study, the specification of tasks yielding sensitivity decrements is shown to be consistent with a task classification analysis of the monitoring literature. It is also demonstrated that the signal type dimension has a major influence on the consistency of individual differences in performance in different tasks. The results provide an empirical validation for the 'speed' and 'closure' categories, and suggest that individual differences are not completely task specific but are dependent on the demands common to different tasks. Task classification is therefore shovn to enable improved generalizations to be made of the factors affecting 1) performance trends over time, and 2) the consistencv of performance in different tasks. A decision theory analysis of response latencies is shown to support the view that criterion shifts are obtained in some tasks, while sensitivity shifts are obtained in others. The results of a psychophysiological study also suggest that evoked potential latency measures may provide temporal correlates of criterion shifts in monitoring tasks. Among other results, the finding that the latencies of negative responses do not increase over time is taken to invalidate arousal-based theories of performance trends over a work period. An interpretation in terms of expectancy, however, provides a more reliable explanation of criterion shifts. Although the mechanisms underlying the sensitivity decrement are not completely clear, the results rule out 'unitary' theories such as observing response and coupling theory. It is suggested that an interpretation in terms of the memory data limitations on information processing provides the most parsimonious explanation of all the results in the literature relating to sensitivity decrement. Task classification therefore enables the refinement and selection of theories of monitoring behaviour in terms of their reliability in generalizing predictions to a wide range of tasks. It is thus concluded that task classification and decision theory provide a reliable basis for the assessment and analysis of monitoring behaviour in different task situations.

Careerism:ethical behaviour in an unjust world?

Presentation

Understanding enterprise behaviour:a feasibility study

This paper describes work conducted as a joint collaboration between the Virtual Design Team (VDT) research group at Stanford University (USA) , the Systems Engineering Group (SEG) at De Montfort University (UK) and Elipsis Ltd . We describe a new docking methodology in which we combine the use of two radically different types of organizational simulation tool. The VDT simulation tool operates on a standalone computer, and employs computational agents during simulated execution of a pre-defined process model (Kunz, 1998). The other software tool, DREAMS , operates over a standard TCP/IP network, and employs human agents (real people) during a simulated execution of a pre-defined process model (Clegg, 2000).

Making the organization fly:organizational identification and citizenship in full-service and low-cost airlines

Recently, the service industry has seen a low-cost sector emerge alongside the traditional full-service sector. We explored whether these business models have different implications for employee cooperation, one factor that plays an important role in organizational functioning. Drawing on the social identity perspective, we argue that employees will identify less strongly with the lower-status, low-cost organizations, reducing their intrinsic motivation for such cooperation. We tested these relationships among employees in Thailand's airline industry. In line with expectations, flight attendants working for low-cost airlines (N = 77) perceived their organizations to have lower status than those working for the full-service airlines (N = 77), and this was associated with reduced organizational identification. This in turn predicted lower levels of organizational citizenship behaviour and a stronger desire for organizational exit. © 2010 Hogrefe Publishing.