Interpersonal trust and formal controls in hierarchical relationships

This paper examines the influence of the level of interpersonal trust between superior and subordinate managers on the control behaviour of the former. On the basis of a questionnaire survey and interviews of senior managers from business organisations in Sri Lanka, and a survey of managers in Beijing-China the study explores the control behaviour of superior managers when their trust in a subordinate is high or low. Sri Lanka and China, societies in which the dependence on interpersonal trust is believed to be high, were chosen for the study to maximise the effect of interpersonal trust.

The findings of this study indicate that a superior’s high (low) trust in a subordinate is associated with a low (high) level of monitoring and a high (low) level of social interactions. The hypothesis that a superior’s high (low) level of trust is associated with a low (high) level of reliance on formal control was supported only in the Sri Lankan sample. These findings are at least indicative of control behaviour of superior managers in Sri Lanka and China and possibly of other countries in Asia. An understanding of the trust-sensitive control behaviour of managers in this region is particularly important for designing and implementing effective control systems for international organizations operating in the region.

Micro finance programs: caring for those missed by formal social protection mechanism

In line with the current global trend of economic and social restructuring, it has become essential to address the issue of poverty and social protection for the poorer segment of the population who are not covered by formal social protection mechanisms. Micro finance institutions (MFIs) in developing countries have been working towards poverty alleviation and enhancing social protection for the last few decades. MFI’s provision of financial assistance to the poor has been instrumental in improving the overall quality of the impoverished. Based on an in-depth qualitative study conducted across three different types of NGOs (Non Governmental Organization) in the Philippines, this study found a relationship between micro finance programs and improved social protection. The study reveals that MFIs have the ability to make a positive impact on areas such as entrepreneurship, education, housing, job security and income generation.

The role of formal mentoring on business success and self-esteem in participants of a new business start-up program

The current study investigated the relationship between career-related mentoring, psychosocial mentoring, business success, and self-esteem in participants of a program that was designed to assist in the establishment of a new business. Seventy-seven protégés and their matched mentors were included in the study. A comparison of mentor and protégé perceptions revealed that mentors considered themselves to provide higher levels of psychosocial support than did the protégés. Protégé perceptions of business success were predicted by the frequency of mentor contact and the level of career-related support provided by their mentor.

Interpersonal trust and formal controls in low systemic trust societies

This study is concerned with the role of interpersonal trust in management control. On the basis of a questionnaire survey and interviews of senior managers from business organisations in sri lanka, the study explores the control behaviour of superior managers when they trust or distrust their subordinates. Sri lanka, a society in which the dependence on interpersonal trust is high, was chosen for the study to maximise the effect of interpersonal trust.

The findings of this study indicate that a superior's high trust in a subordinate is associated with a low level of monitoring, a high level of social interactions, and a low reliance on formal controls. In contrast, a superior's low level of trust in a subordinate is associated with a high level of monitoring, a low level of social interactions, and a high reliance on formal controls. Because the data emanate from experienced senior managers, these findings are at least indicative of control behaviour of superior managers in sri lanka and possibly of similar countries in asia. An understanding of the control behaviour of managers in this region is particularly important for designing and implementing effective controls systems for firms, subsidiaries, branches or joint-ventures operating in the region.

Incorporating learning styles into an assessment of formal management development

Students are a primary product of the management education system. To assess the impact of a basic course, the change in competencies of students over the duration of the course is examined. This study found that even a basic subject design had a significant and substantial impact on the competence development of the students. From the perspective of students-as-products, the baseline provided here allows for the testing of alternative designs of educational systems, whereby alternative designs have to prove a benefit above and beyond that of a basic teaching system.

The assessment of formal management development : a method, a baseline and the need to incorporate learning styles

Purpose – To assess the impact of a course on the development of management competencies for students over the duration of the course, by examining changes in the competencies of the students. The potential impact of student learning styles was also examined in the study.

Design/methodology/approach – A “Pre, Post, Then” design and a combination of paired sample t-tests, and alpha and beta change statistics were used to examine the change in competencies over time.

Findings – This study found that even a standard subject design had a significant and substantial impact on the management competence development of the students.

Practical implications – From the perspective of students-as-products, the base line provided here allows for the testing of alternative designs of educational systems, whereby alternative designs have to prove a benefit above and beyond that of a basic teaching system. Therefore, the present study should assist the field of management development to create a range of design options.

Originality/value – This study applies a powerful and under-utilised research method to provide a base line of the amount of management development that can occur in a typical formal management course, but is unique in that it includes the impact of the students’ learning styles.