The West Midlands road transport industry

The object of this project was to identify those elements of management practice which characterised firms in the West Midlands Road Transport Industry. The object being to establish the contents of what might be termed a management policy portfolio for growth. The First Phase was the review of those factors which were generally accepted as having an influence on the success rate of transport firms in order to ascertain if they explained observed patterns. Secondly, if this were not the case, to instigate a field work study to isolate those policies which were associated with growth organizations. Investigation of the vehicle movements for the entire West Midlands Fleet over a complete licence cycle suggested that conventional explanations could not fully account for the observed patterns. To carry out the second phase of the study a sample of growth firms were visited in order to measure their attitudes on a range of factors hypothesised to affect growth. Field data were analysed to establish management activities over a wide range of areas and the results further investigated through a Principal Components and Cluster Analysis programme. The outcome of the study indicates that some past attitudes on the skills and attitudes of transport managers may have to be re-examined. As a result, the project produced a new classification of road transport firms based not on the conventional categories of long and short haul, or the types of traffics carried, but on the marketing policies and management skills employed within the organization.

Expatriate managers adjustment and its impact on subordinates reactions: a cross cultural leadership study of Kenya and Ethiopia

Research on culture, leadership and adjustment shows that societal culture influences leadership in such a way that it can impact on expatriate managers' effectiveness and adjustment in a new culture. In previous research, cultural background, personality, motives or behaviour of expatriate managers and their followers' reactions to them have been investigated in Europe, America and Asia. However, little attention has been paid on research on expatriate managers in African cultures especially in Eastern Africa. The present study represents an attempt to address the gap by examining how societal culture, leadership and adjustment success are interrelated for expatriate managers in Kenya and Ethiopia. Questionnaire data were obtained from a) local middle managers (N=160) for studying societal culture and leadership in Kenya and Ethiopia, b) expatriate managers in non-governmental organizations - NGOs (N=28) for studying expatriate managers' personality, motives and adjustment success and c) their immediate subordinates (N=125) for studying the expatriate managers' behaviours and their subordinates' reactions to them. Additionally, expatriate managers were interviewed and responses were coded for implicit motives, experiences and adjustment. SPSS was used to analyse data from questionnaires to obtain cultural and leadership dimensions, leader behaviour and subordinate reactions. The NVIVO computer based disclosure analysis package was used to analyse interview data. Findings indicate that societal culture influences leadership behaviours and leadership perceptions while the expatriate managers' motives, behaviours, personality and the cross cultural training they received prior to their assignment impact on the expatriates' adjustment success and on subordinates' reactions to them. The cultural fit between expatriate managers' home country (19 countries) and the target country (Kenya or Ethiopia) had no significant association with adjustment success but was positively related to expatriate behaviour and negatively associated with subordinates reactions. However, some particular societal practices - obviously adopted by expatriates and transferred to their target country - did predict subordinates' commitment, motivation and job satisfaction. Furthermore, expatriates' responsibility motivation was positively related to their adjustment success. Regarding leadership behaviours and effectiveness, expatriate' supportive behaviours predicted subordinates' job satisfaction most strongly. Expatriate managers expressing their management philosophies and experience shed light on the various aspects of adjustment and management of NGOs. In addition, review of Kenyan and Ethiopian cultures and the NGO context in these countries offers valuable information for expatriate managers. This study's general imphcation for Cross Cultural Management and lnternational Human Resources Management is that the combination of culture general and culture specific knowledge and reflections on Eastern Africa countries can inform senior management and international HR staff about the critical issue of what to include in training, coaching, and actual experience in a particular host country in order to ensure effective leadership. Furthennore, this knowledge is expected to influence expatriate managers' behaviour modification to enhance positive subordinate reactions. Questions about how to prepare expatriate managers and subordinates to work more competently and sensitively across cultures are addressed. Further theoretical implications, limitations of the study and directions for future research are also addressed.

The role of line managers in employee career management:an attachment theory perspective

Line managers increasingly play a key role in organizational career development systems, yet few studies have examined the nature of this role or its implications for employee career attitudes and behaviors. In two studies, we used attachment theory to explore this issue. In Study 1, in-depth interviews (N = 20) showed that employees viewed career management as a relational process in which line managers are expected to act as ‘caregiver’ to support individualized career development. Study 2 was a large-scale international survey (N = 891). Participants scoring higher on attachment avoidance in their line manager relationships reported more negative perceptions of career growth opportunities, lower participation in organizational career development activities and higher turnover intentions. Trust in the organization partially mediated the relationship. Theoretical and practical implications for HRM are discussed.

Liquidity and portfolio optimisation

This thesis presents research within empirical financial economics with focus on liquidity and portfolio optimisation in the stock market. The discussion on liquidity is focused on measurement issues, including TAQ data processing and measurement of systematic liquidity factors (FSO). Furthermore, a framework for treatment of the two topics in combination is provided. The liquidity part of the thesis gives a conceptual background to liquidity and discusses several different approaches to liquidity measurement. It contributes to liquidity measurement by providing detailed guidelines on the data processing needed for applying TAQ data to liquidity research. The main focus, however, is the derivation of systematic liquidity factors. The principal component approach to systematic liquidity measurement is refined by the introduction of moving and expanding estimation windows, allowing for time-varying liquidity co-variances between stocks. Under several liability specifications, this improves the ability to explain stock liquidity and returns, as compared to static window PCA and market average approximations of systematic liquidity. The highest ability to explain stock returns is obtained when using inventory cost as a liquidity measure and a moving window PCA as the systematic liquidity derivation technique. Systematic factors of this setting also have a strong ability in explaining a cross-sectional liquidity variation. Portfolio optimisation in the FSO framework is tested in two empirical studies. These contribute to the assessment of FSO by expanding the applicability to stock indexes and individual stocks, by considering a wide selection of utility function specifications, and by showing explicitly how the full-scale optimum can be identified using either grid search or the heuristic search algorithm of differential evolution. The studies show that relative to mean-variance portfolios, FSO performs well in these settings and that the computational expense can be mitigated dramatically by application of differential evolution.

The role of manufacturing and market managers in strategy development:lessons from three companies

According to researchers and managers, there is a lack of agreement between marketing and manufacturing managers on critical strategic issues. However, most of the literature on the subject is anecdotal and little formal empirical research has been done. Three companies are investigated to study the extent of agreement/disagreement between manufacturing and marketing managers on strategy content and process. A novel method permits the study of agreement between the two different functional managers on the process of developing strategy. The findings consistently show that manufacturing managers operate under a wider range of strategic priorities than marketing managers, and that manufacturing managers participate less than marketing managers in the strategy development process. Further, both marketing and manufacturing managers show higher involvement in the strategy development process in the latter stages of the Hayes and Wheelwright four-stage model of manufacturing’s strategic role.

Leadership propensity and sales performance among sales personnel and managers in a speciality retail store setting

We propose that specialty store managers, as well as outside sales personnel attached to the store, have selling responsibilities. In addition, we propose that sales personnel, as well as store managers, should have a propensity for leadership, which reflects an individual's enduring disposition to exhibit leadership within the context of his or her organizational roles. In two studies, we develop a new individual difference measure of propensity to lead and investigate its nomological validity within a specialty retail store environment. As predicted, leadership propensity was predictive of self-rated sales performance and a proclivity to identify prospects through cold calls to close sales, to reveal customer orientation, and to exhibit organizational citizenship behavior. We found that propensity to lead did not differ between salespeople and retail store managers, but we found that the respondent's role moderated the relationship between propensity to lead and supervisor performance ratings. Study limitations and managerial implications of this heretofore unidentified trait of salespeople are discussed.

Corporate governance, managers' independence, exporting, and performance of firms in transition economies

Using data on 157 large companies in Poland and Hungary, this paper employs Bayesian structural equation modeling to examine the relations among corporate governance, managers' independence from owners in terms of strategic decision making, exporting, and performance. Managers' independence is positively associated with firms' financial performance and exporting. In turn, the extent of managers' independence is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm's board. We interpret these results as indicating that concentrated owners tend to constrain managerial autonomy at the cost of the firm's internationalization and performance, but board participation of foreign stakeholders enhances the firm's export orientation and performance by encouraging executives' decision-making autonomy.

Corporate governance, managers' independence, exporting and performance of firms in transition economies

Using data on 157 large companies in Poland and Hungary this paper employs Bayesian structural equation modeling to examine interrelationships between corporate governance, managers' independence from owners in terms of strategic decision-making, exporting and performance. It is found that managers' independence is positively associated with firms' financial performance and exporting. In turn, the extent of managers' independence is contingent on the firm's corporate governance parameters: it is negatively associated with ownership concentration, but positively associated with the percentage of foreign directors on the firm's board. We interpret these results as an indication that (i) risk averse, concentrated owners tend to constrain managerial autonomy at the cost of the firm's internationalization and performance, (ii) board participation of foreign stakeholders, on the other hand, enhances the firm's export orientation and performance by encouraging executives' decision-making autonomy.

Managers' perceptual errors revisited:the role of knowledge calibration

Insights from the stream of research on knowledge calibration, which refers to the correspondence between accuracy and confidence in knowledge, enable a better understanding of consequences of inaccurate perceptions of managers. This paper examines the consequences of inaccurate managerial knowledge through the lens of knowledge calibration. Specifically, the paper examines the antecedent role of miscalibration of knowledge in strategy formation. It is postulated that miscalibrated managers who overestimate external factors and display a high level of confidence in their estimates are likely to enact strategies that are relatively more evolutionary and incremental in nature, whereas miscalibrated managers who overestimate internal factors and display a high level of confidence in their estimates are likely to enact strategies that are relatively more discontinuous and disruptive in nature. Perspectives from social cognitive theory provide support for the underlying processes. The paper, in part, explains the paradox of the prevalence of inaccurate managerial perceptions and efficacious performance. It also advances the literature on strategy formation through the application of the construct of knowledge calibration.

"It's not my fault - but only I can change it":counterfactual and prefactual thoughts of managers

In testing for the self-serving bias in performance evaluation, the authors propose that comparing managers' counterfactual and prefactual thoughts about subordinates' performance is more conclusive than the attributional approach and also offers practical advantages. In a study with 120 managers, a 4-way interaction of subordinate performance, temporal perspective, direction, and reference confirmed the predicted pattern. Managers' thoughts about how a weak performance could have been enhanced had external references, but thoughts about how such a performance could be enhanced in the future focused on the leader. This asymmetry was only observed for weak performance. Results are discussed with regard to biases in leaders' performance evaluations and to how counter- and prefactual thoughts could be used for leadership research and practice.