Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management...

12
:RUN &RQWH[W DQG WKH 'HILQLWLRQ RI 6HOI +RZ 2UJDQL]DWLRQDO &DUH ,QIOXHQFHV 2UJDQL]DWLRQ %DVHG 6HOI(VWHHP $XWKRUV 'DQLHO - 0F$OOLVWHU DQG *UHJRU\ $ %LJOH\ 6RXUFH 7KH $FDGHP\ RI 0DQDJHPHQW -RXUQDO 9RO 1R 2FW SS 3XEOLVKHG E\ Academy of Management 6WDEOH 85/ http://www.jstor.org/stable/3069320 . $FFHVVHG Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Journal. http://www.jstor.org This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PM All use subject to JSTOR Terms and Conditions

Transcript of Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management...

Page 1: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

:RUN�&RQWH[W�DQG�WKH�'HILQLWLRQ�RI�6HOI��+RZ�2UJDQL]DWLRQDO�&DUH�,QIOXHQFHV�2UJDQL]DWLRQ�%DVHG�6HOI�(VWHHP$XWKRU�V���'DQLHO�-��0F$OOLVWHU�DQG�*UHJRU\�$��%LJOH\6RXUFH��7KH�$FDGHP\�RI�0DQDJHPHQW�-RXUQDO��9RO������1R�����2FW����������SS���������3XEOLVKHG�E\��Academy of Management6WDEOH�85/��http://www.jstor.org/stable/3069320 .$FFHVVHG������������������

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academyof Management Journal.

http://www.jstor.org

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 2: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

? Academy of Management Journal 2002, Vol. 45, No. 5, 894-904.

WORK CONTEXT AND THE DEFINITION OF SELF: HOW ORGANIZATIONAL CARE INFLUENCES ORGANIZATION-BASED

SELF-ES TEEM

DANIEL J. McAT..TISTER National University of Singapore

GREGORY A. BIGLEY University of Washington

We investigated how work context leads to employee self-definition. We propose that the employees of organizations whose values and organizing principles center on fulfilling employees' needs and acting in their best interests will report higher levels of organization-based self-esteem. Further, we argue that perceptions of organizational fairness and job authority mediate this relationship through the social-psychological process of reflected appraisal. Results based on analyses of data from a sample of 186 managers and professionals from 69 different organizational settings support our model.

Self-perceived competency and self-evaluation may be assumed to be a function of social learning expe- rience and the value a person has come to place on himself as a function of his interaction with others. Thus, organizations, and their environments, and their actors may be viewed in terms of the self- evaluations that such environments cultivate.

Korman, 1970: 33

Organization-based self-esteem (OBSE) reflects "an employee's evaluation of his or her personal adequacy and worthiness as an organizational member" (Gardner & Pierce, 1998: 50) and "the self-perceived value that individuals have of them- selves as organizational members acting within an organizational context" (Pierce, Gardner, Cum- mings, & Dunham, 1989: 625). Employees with high OBSE are secure in the belief that they are trusted, valued, contributing organization members (Pierce, Gardner, Dunham, & Cummings, 1993; Gardner & Pierce, 1998). Because of major transfor- mations in the context of work in many organiza- tions-reduced reliance on bureaucratic controls, increasingly decentralized decision-making au- thority, and accelerated adaptation to changing business conditions-the importance of OBSE to employee and organizational effectiveness may be on the rise (Gardner & Pierce, 1998; Pierce et al.,

We would like to thank Chad Higgins, Jackson McAl- lister, Marcia Miceli, Gretchen Spreitzer, Carolyn Weithoff, and Andy Wicks for their comments on earlier versions. In addition, we are grateful to Maureen Am- brose and the three anonymous reviewers from this jour- nal for their valuable assistance.

1993). Empirical findings show that work-based self-esteem is associated with increased comfort with, and sustained commitment during, radical change (Hui & Lee, 2000; Spreitzer & Quinn, 1996) and improved job performance when traditional forms of work support are absent (Pierce et al., 1993). Positive self-regard is now considered an essential building block in human-resource-based competitive strategies (Lawler, 1992; Pfeffer, 1998), and OBSE has been associated with such key out- comes as job satisfaction, organizational commit- ment, performance, and organizational citizenship (Pierce et al., 1989, 1993; Gardner & Pierce, 1998).

Although researchers have learned much about the consequences and importance of OBSE over the last ten years, there has been, in comparison, little systematic theory-driven research on its anteced- ents. Initial theorizing (Korman, 1970) and recent correlational reports (e.g., Pierce et al., 1989, 1993) have suggested that organizational context factors influence OBSE. Korman, among the first to con- sider the foundations for self-esteem at work, viewed workplace self-concept as being largely so- cially determined, grounded in social learning ex- perience, and shaped by interactions with others and the institutional arrangements within which interaction takes place (Korman, 1970). Pierce and colleagues echoed this theme: "We concur with Korman's view that the structural features of work environments can and do send strong messages that shape individuals' beliefs about their organiza- tional value" (1989: 645).

However, beyond the general consensus that or- ganizational context affects OBSE, relatively little is known about either which aspects of work con-

894

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 3: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

McAllister and Bigley

text are particularly relevant to OBSE development and change or the psychological mechanisms through which context brings about self-definition. Our study investigated these two issues. Extending the work of Korman (1970) and Pierce and col- leagues (1989), we describe here how organiza- tional care, an emerging concept defining central aspects of work context, influences employees' OBSE through the pivotal perceptions of organiza- tional fairness and job authority. Organizational fairness and job authority have both been impli- cated by organizational care scholars as variables intervening between context and self-concept, and they have been linked, in their respective litera- tures, to employee attributions of self-worth. We systematically integrate them into a framework for understanding OBSE.

ORGANIZATIONAL CARE AND THE TRANSFORMATION OF OBSE

Organizational care is a "deep structure" (cf. Denison, 1996) of values and organizing principles centered on fulfilling employees' needs, promoting employees' best interests, and valuing employees' contributions (Derry, 1999; Liedtka, 1999, 1996; Tronto, 1998). Conceptual work on the role of an "ethic of care" in organizations makes explicit the connection between core organizational values of responsiveness to member needs and members' healthy social-psychological development (Frost, 1999; Held, 1990; Liedtka, 1999, 1996; Wicks, Gil- bert, & Freeman, 1994), including the development of self-esteem (Benner, 1984; Bowden, 1997). Or- ganizational care is "growth enhancing for the cared for in that it moves them towards the use and development of their full capabilities within the context of their self-defined needs and aspirations and in service to the larger community of care" (Liedtka, 1999: 13).

Sustained responsiveness to employee needs and best interests in organizations requires concerted effort from organizational representatives and the support of a care-enabling infrastructure (Kahn, 1993; Liedtka, 1996; 1999; Tronto, 1998). Korman (1970) identified elements of such an infrastruc- ture, including training, support systems, and em- ployee involvement as mechanisms for ego en- hancement. However, from an organizational care perspective, we understand that care cannot be eas- ily equated with any particular configuration of managerial and human resource practices. Equally constructive sets of caregiving practices can exist in different organizations, varying as a function of factors such as basic task requirements, employee developmental needs, resource constraints, and the

innovativeness of organization members (Liedtka, 1999). Furthermore, specific practice sets reflective of organizational care may change over time in response to shifting situational contingencies (such as changes in employee needs or task environments).

Given the highly variable nature of ego-enhanc- ing caregiving practices, the essence of organiza- tional care is contained in the values and principles that bring coherence over time and across situa- tions to organizational routines and practices (Bur- ton & Dunn, 1996; Liedtka, 1999). The emerging literature on people-centered and visionary compa- nies echoes this distinction between organizational care and its more ephemeral manifestations. Al- though the practices of people-centered organiza- tions vary widely, convergence and consistency re- main regarding the beliefs and values upon which such programs and policies are based (O'Reilly & Pfeffer, 2000). Similarly, Collins and Porras (1994: 90) have separated core ideology from specific noncore practices:

A visionary company carefully preserves and pro- tects its core ideology, yet all the specific manifes- tations of its core ideology must be open for change and evolution. For example... HP's 'Respect and concern for individual employees' is a permanent unchanging part of its core ideology; serving fruit and doughnuts to all employees at ten A.M. each day is a noncore practice that can change... 3M's 'Respect for individual initiative' is a permanent, unchanging part of its core ideology; the 15 percent rule (where technical employees can spend 15 per- cent of their time on projects of their choosing) is a noncore practice that can change.

We should note that organizational care is simi- lar in important respects to perceived organiza- tional support (POS), which refers to employees' "global beliefs concerning the extent to which the organization values general contributions and cares about their well-being" (Eisenberger, Huntington, Hutchison, & Sowa, 1986: 51). However, although organizational care and POS have similar content- organizational support of and care for employees- they exist at different levels of analysis. POS is an individual-level phenomenon, representing the perceived, individualized receipt of support (or care) from an organization. It is egocentric in na- ture, expressed in terms of a belief about the extent to which the organization cares for "me." In con- trast, organizational care is an organization-level and organization-centered phenomenon reflecting perceptions regarding the broad provision of care by the organization to all employees. It captures beliefs about the extent to which the organization cares for employees in general. Thus, as conceptu-

895 2002

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 4: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

Academy of Management Journal

alized here, organizational care is the organization- level equivalent of perceived organizational support.

In keeping with Korman's (1970) initial insights, in our model we propose that organizational con- text affects employee self-esteem at work. Distin- guishing our research, however, is a focus on the underlying values and principles of organizational care that help bring concordance to various human resource policies and programs and also promote responsive and coherent adaptations of them over time. Our argument is that the consistent enact- ment of practices expressing an employee-need- centered focus provides the integrated experiential base upon which employee beliefs about self- worth, including organization-based self-esteem, develop.

We have argued that organizational care is re- lated to OBSE. However, the critical question of our study remains: What are the psychological mecha- nisms linking organizational care with an employ- ee's assessment or reassessment of self-concept in terms of self-worth as an organization member? One important way in which people form self- concepts is through inferences drawn from how others (including individuals, groups, and organi- zations) treat them (Cooley, 1902; James, 1890; Mead, 1934; Rosenberg, 1979). This basic idea of "reflected appraisal" is foundational to sociological theories of the self (Gecas, 1982), and it has been extended to describe more fully how members' per- ceptions of treatment within groups and organiza- tions influence their understandings of who they are (e.g., Brockner, 1988; Tyler, Kramer, & John, 1999). Fairness (Tyler & Lind, 1992) and job author- ity (range of discretion and influence; Pierce et al., 1989; Schwalbe, 1985; Van de Ven & Ferry, 1980) are highly salient signals employees use to deter- mine the degree to which they are valued by their organizations. We argue that fairness and job au- thority represent for employees crucial reflected appraisals on the part of the organization that me- diate between organizational care and OBSE.

Effects of Organizational Care on OBSE through Perceived Organizational Fairness

Employees in organizations see themselves as fairly treated when they believe they have received, or will receive, what they are entitled to or deserve (Tyler, 1989). Management scholars and social psy- chologists alike readily acknowledge that the stan- dards of fair treatment individuals use in continu- ing relationships extend well beyond the perceived equitability of material reward distributions to mat- ters of perceived responsiveness to need, the integ- rity of decision-making processes, and the appro-

priateness of interpersonal treatment (Bies & Moag, 1986; Deutsch, 1975; Konovsky, 2000). Accord- ingly, a caring value system-centered on fulfilling employees' needs and attending to employees' best interests-can be expected to shape organizational practices, programs, and managerial behaviors so that the various fairness standards employees use are met over a range of fairness domains (such as rewards and punishments, formal procedures, and informal interpersonal treatment) and organiza- tional issues (such as compensation, performance evaluation, and promotion) (Burton & Dunn, 1996; Liedtka, 1996). Thus, we would expect organiza- tional care to be positively related to perceived organizational fairness.

Perceived organizational fairness, in turn, is ex- pected to influence OBSE. Fairness assessments are particularly important to employees because expe- rienced fairness is a highly salient indicator of an individual's status in, and therefore value to, an organization (Tyler & Lind, 1992). For example, individuals consistently treated more poorly than they think they deserve over a broad range of or- ganizational issues (for instance, they consider their pay or promotion rate to be disproportionately low) and fairness domains (for instance, the pro- cess used to produce reward distributions is con- sistently less respectful than they expected it to be) are likely to incorporate these reflected appraisals, which indicate they are not highly valued, into their self-concepts by decreasing personal assess- ments of their worth at work (Brockner, 1988). Fur- ther, such self-redefinition may be more likely to occur when a major inconsistency between treat- ment quality and OBSE level generates significant cognitive dissonance (Festinger, 1957). Empirical findings from both cross-sectional field studies (Wiesenfeld, Brockner, & Thibault, 2000) and con- trolled experiments (Koper, Van Knippenberg, Bouhuijs, Vermunt, & Wilke, 1993) indicate that fairness perceptions are associated with OBSE and context-specific self-esteem. We should emphasize that our focus is on organizational fairness in gen- eral, since treatment quality differing from what one believes is deserved in a variety of specific work situations strongly suggests that self-redefini- tion may be in order.

In summary, we predict organizational care will influence OBSE through perceived organizational fairness. Organizations emphasizing employee de- velopment and well-being are likely to be per- ceived as fair in a wide variety of justice domains. Perceived fair treatment, in turn, conveys to em- ployees that they are valued and worthy organiza- tion members. In turn, these reflected appraisals

896 October

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 5: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

McAllister and Bigley

are likely to be incorporated into OBSE. Thus, we hypothesize:

Hypothesis 1. Perceived organizational fair- ness positively mediates the positive relation- ship between organizational care and organi- zation-based self-esteem. Given the similarity of organizational care and

perceived organizational support, it may seem that Hypothesis 1 runs counter to existing research sug- gesting procedural justice is an antecedent of POS (Masterson, Lewis, Goldman, & Taylor, 2000; Moor- man, Blakely, & Niehoff, 1998). Yet, because or- ganizational care (an organization-level construct) is distinct from POS (an individual-level con- struct), no contradiction is implied. Organizational care is a likely antecedent of POS, and justice may mediate this relationship.

Effects of Organizational Care on OBSE through Job Authority

Just as we expect perceived organizational fair- ness to mediate the relationship between organiza- tional care and OBSE, we also expect perceived job authority to mediate this relationship. Job authority refers to the amount of discretion and influence employees believe they can exercise in decisions about the work they do (Van de Ven & Ferry, 1980). Rather than creating enduring dependence, care- takers in effectual caring relationships work to nur- ture those for whom they care, working to develop contributing community members (Held, 1990; Liedtka, 1999; Tronto, 1998). Similarly, caring or- ganizations are likely to place particular emphasis on employee development, to promote the confi- dence and skill employees need to exercise discre- tion and, thus, to use external controls sparingly (Korman, 1970; Pierce et al., 1989). In other words, caring organizations cultivate empowerment-capa- ble employees and provide them with job authority commensurate with their capabilities. Further, as these capabilities increase, greater job authority can be forthcoming (Liedtka, 1999).

Job authority is, then, expected to influence OBSE. The degree of constraint built into jobs rep- resents a major source of information employees use to develop beliefs about themselves at work (Pierce et al., 1989). Organizationally imposed be- havior controls that reduce job authority are likely to signal to employees that they are incapable of self-direction and self-control-that they are less trusted, less competent, less valuable, and less con- tributing individuals (Pierce et al., 1989). As re- flected appraisals, suppositions such as these may be incorporated into self-concept through reduced

self-esteem. Conversely, increased job authority can provide a basis for a positive view of self-that is, a view of oneself as being trusted, competent, valuable, and contributing-leading to increased self-esteem. Empirical findings are consistent with this view, showing strong links between systemic constraints on job authority (mechanistic organiza- tional structures) and OBSE (Pierce et al., 1989), between professional discretion and self-esteem at work (Schlenker & Gutek, 1987), and between au- tonomy and OBSE (Aryee & Luk, 1996).

Summarizing, we argue that caring organizations develop employees capable of exercising decision- making discretion in their jobs and then empower them accordingly through increased job authority. Further, we expect job authority, like fairness, to convey that employees are valued, an attribution likely to be incorporated into self-concept in terms of higher levels of OBSE. Accordingly, we hypothesize:

Hypothesis 2. Perceived job authority posi- tively mediates the positive relationship be- tween organizational care and organization- based self-esteem.

METHODS

Sample and Procedures

Our sample consisted of managers and profes- sionals from a broad range of organizations and industries. Students and alumni of a major South- ern California executive MBA program participated in this study together with their peers from work. Each student or alumnus was asked to identify two work peers and a supervisory person (someone fa- miliar with the work performance of all three indi- viduals) to participate in the study with them. Nominated peers were individuals from functional areas different from their own but with whom they had significant work-related interaction. Initial contacts and nominated peers participated in the study as separate respondents. All surveys were hand-distributed and returned directly to the re- searcher (the first author) by mail. Of 240 surveys distributed to students, alumni, and nominated peers, 186 usable surveys were returned (a 78 per- cent response rate). Respondents provided data on OBSE, organizational fairness, job authority, and peer reputational effectiveness (a control variable). Respondents were mature (38 years old on the av- erage), well educated (57 percent had some gradu- ate training), experienced (the average professional tenure was 11.7 years), and predominantly men (74.7%).

In addition to the self-report surveys from focal subjects, we obtained assessments of organizational

897 2002

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 6: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

Academy of Management Journal

care in each organizational setting from individuals familiar with the work performance of the study participants (in most cases, their immediate super- visors). Use of informant data allowed us to overcome the significant limitations commonly associated with common method variance. Key in- formants are frequently used in multiorganization studies to provide organization-specific data (Ku- mar, Stern, & Anderson, 1993; Seidler, 1974), a practice conditioned on their knowledge and will- ingness to provide information (Campbell, 1955). In this study, the supervisors were uniquely posi- tioned to know about organizational care, because they had insider perspectives on organizational values and organizing principles, as well as knowl- edge of the study respondents; further, to varying degrees, they participated in the actual provision of care to respondents. The high response rate of the supervisory individuals (69 of 80 surveys were re- turned, for an 86 percent response rate) suggests little informant apprehension about providing care- related information. Individuals in direct contact with study participants have been shown to be more knowledgeable than higher-level executives of the specific organizational values shaping these employees' treatment (Osterman, 1994) and less inclined than human resource executives to over- state the virtues of organizational policies and prac- tices (Wright, McMahan, Snell, & Gerhart, 2001). Following recommendations from Miller, Cardinal, and Glick (1997), we protected the integrity of in- formant responses by requesting frank responses, focusing on current conditions rather than retro- spective accounts, using established measures with sound psychometric properties, providing assur- ances of anonymity, having informants mail com- pleted forms directly to the researcher, and main- taining transparency in the data collection process (providing contact information for accessing the researcher directly). Potential response biases re- main-these might include overestimation (making the organization look good) and underestimation (expressing frustration in the lack of organizational support for personal caring initiatives)-but the multiorganizational design of the study (69 busi- ness units spanning 63 different organizations) pro- vides a practical constraint on the extent to which any individual informant could systematically bias the study results.

Measures

All measures were drawn from previously pub- lished research. For each measure, respondents as- sessed their agreement with statements on a seven point Likert-type scale on a response format rang-

ing from 1 ("strongly disagree") to 7 ("strongly agree"). Reliability assessments for all scales ex- ceeded the minimum standard of .70 suggested by Nunnally (1978).

Dependent variable. Organization-based self- esteem was assessed using the ten-item instrument validated by Pierce et al. (1989). Two sample items are "I am valuable around here" and "I count around here" (a = .92).

Independent variables. Organizational care was adapted from Eisenberger's 16-item measure of per- ceived organizational support (Eisenberger et al., 1986). Items were rephrased to capture supervisor- as-informant assessments of the organization's care for its employees. Sample items include, "The or- ganization strongly considers the goals and values of these employees," "The organization is willing to help any of these employees when they need a special favor," and "The organization shows very little concern for these employees" (reverse-coded). This measure incorporates elements central to or- ganizational care-caring about employees, taking care of employees, and valuing employee contribu- tions (a = .88). Organizational fairness was mea- sured with eight items that assess the distributional and procedural fairness of performance evaluation, pay, job change, and voice (Tsui, Pearce, Porter, & Tripoli, 1997). Sample items include, "The process used to conduct my performance appraisal is fair" and "The rating or evaluation I received on my last performance appraisal was fair" (a = .90). Job au- thority was measured with four items addressing the extent of authority, initiative, discretion, and control found in work (Van de Ven & Ferry, 1980). Sample items include, "The person in this role personally determines what tasks (s)he will per- form from day to day" and "Individuals in this role have authority to set quotas for how much work they must complete" (a = .74).

Control variable. A peer assessment of reputa- tional effectiveness was included in the study as an indicator of competence, which might represent an alternative predictor of self-esteem. We used Tsui's three-item measure of reputational effectiveness (Tsui, 1984), together with one additional item in- corporated into McAllister (1995). Peers were asked to consider their colleagues' total jobs, in- cluding job-specific duties, additional activities not formally required, and overall dependability, and to assess their satisfaction with aspects of the target individuals' job performance. Sample items in- clude, "Overall, to what extent do you feel that this person is performing his/her total job the way you would like it to be performed?" and "To what ex- tent has this person met all of your expectations in his/her roles and responsibilities?" (a = .95).

898 October

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 7: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

TABLE 1 Means, Standard Deviations, Reliabilities, and Correlationsa

Variable Mean s.d. 1 2 3 4 5

1. Organization-based self-esteem 5.88 0.85 (.92/.92) 2. Organizational care 5.10 0.97 .23** (.88/.88) 3. Perceived organizational fairness 4.61 1.25 .39** .21** (.90/.91) 4. Perceived job authority 5.49 0.98 .28** .36** .19* (.74/n.a.) 5. Reputational effectiveness 5.00 1.40 .01 .13t .16* -.04 (.95/n.a.)

a n = 186. Items in parentheses are Cronbach alphas: The first value is for scales, and the second value is for composites. Correlations were computed by the EQS program using the measurement model.

p < .10 * p < .05

**p < .01

Analysis We adopted a two-step approach to data analysis

(Anderson & Gerbing, 1988) using the EQS struc- tural equation modeling program (Bentler, 1995). First, we conducted a confirmatory factor analysis to evaluate measurement model adequacy. Given the large number of items (41) relative to the sam- ple size (n = 186), we took steps to reduce the number of construct indicators and improve the size-to-estimator ratio (e.g., Landis, Beal, & Tesluk, 2000). For constructs with four or fewer indicators (job authority and reputational effectiveness), we used the individual items as observed indicators of the latent constructs. For all other multi-item con- structs (organizational care, organizational fairness, and OBSE), we created three "composite" indica- tors following procedures set out by Mathieu and Farr (1991).

Second, we analyzed the structural model of the hypothesized relationships (Anderson & Gerbing, 1988). Hypothesized mediation effects were as- sessed in accordance with standards outlined by Baron and Kenny (1986). Baron and Kenny speci- fied three conditions that must be satisfied in order to infer mediation: (1) the independent variable must be significantly related to the dependent vari- able in the absence of the mediator, (2) the inde- pendent variable must be significantly related to the mediator, and (3) when both the independent variable and the mediator are considered simulta- neously, the direct relationship between the inde- pendent variable and the dependent variable should either decrease significantly (for partial me- diation) or become nonsignificant (for full media- tion). Baron and Kenny's conditions require a si- multaneous assessment of the significance of direct and indirect relationships between independent and dependent variables. Therefore, we partitioned the total effects of the independent variable on the dependent variable into direct and indirect compo-

nents (cf. Tabachnick & Fidell, 1996). In our de- composition-of-effects analysis, a significant indi- rect effect indicates that the mediators significantly reduce the direct effect of the independent variable on the dependent variable.

Results All measurement model factor loadings were sig-

nificant at the p < .01 level. A chi-square of 122.15 on 109 degrees of freedom (p = .18) and other goodness-of-fit statistics (CFI = .99, NNFI = .99, GFI = .93, RMSEA = .03) indicated that the hy- pothesized factor structure fitted the data well.1 Means, standard deviations, reliabilities, and cor- relations for the measurement model are shown in Table 1. Composite reliabilities all exceed the .70 minimum standard (Nunnally, 1978).

The structural model used to test our hypotheses is depicted in Figure 1. We predicted that organi- zational care would be related to OBSE through job authority (Hypothesis 1) and fairness (Hypothesis 2). Consistent with Baron and Kenny's first require- ment for mediation, organizational care was signif- icantly associated with OBSE in the absence of mediator variables (r = .23, p < .01, in Table 1). In accordance with Baron and Kenny's second re- quirement, organizational care was significantly as- sociated with both job authority and fairness per- ceptions. As reported in Figure 1, the path coefficient from organizational care to job authority was .36 (p < .01) and the path coefficient from organizational care to organizational fairness was .23 (p < .01). Finally, consistent with Baron and Kenny's third requirement, organizational care was not significantly associated with OBSE in the pr-

1 "CFI" is the comparative fit index; "NNFI" is the non- normed fit index; "GFI" is the goodness-of-fit index; and "RMSEA" is the root-mean-square error of approximation.

McAllister and Bigley 899 2002

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 8: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

Academy of Management Journal

FIGURE 1 Final Model Predicting Organization-Based Self-Esteema

x2(df) = 131.81(113) X2/df = 1.17 CFI = .99 NNFI = .99 GFI = .93 RMSEA = .03

a Path coefficients are standardized, maximum-likelihood estimates. Ellipses denote latent factors. The dashed ellipse and line represent the control factor and its path. To simplify the presentation, the measurement model and the disturbance error effects are not shown. n = 186. The indirect effect of leader-assessed organizational care on organization-based self-esteem has a coefficient of .14**

tp < .10 * p < .05

** p < .01

esience of mediator variables (b = .09, n.s.). How- ever, the indirect effects of organizational care on OBSE were substantial and significant (b = .14, p < .01). Finally, as Figure 1 shows, the control variable (reputational effectiveness) did not have a statisti- cally significant effect on OBSE. Taken together, the findings provide support for both Hypothesis 1 and Hypothesis 2.

DISCUSSION Our study investigated how work context leads

to employee self-definition or self-redefinition. We demonstrated that organizational care is a funda- mental contextual source of OBSE. Employees working for organizations possessing values and organizing principles centered on fulfilling em- ployee needs and acting in employee best interests reported higher OBSE levels. Further, we hypothe- sized and found that the relationship between work context and self-esteem is indirect, mediated by organizational fairness and job authority percep- tions. Organizational fairness and job authority ap-

pear to represent for employees highly salient re- flected appraisals from organizations that employees internalize through assessment or reassessment of their own worth as organization members. Here we address key implications of our research findings.

First and foremost, our findings provide insight into the psychological mechanisms through which work context influences employee OBSE. Prior re- search on OBSE antecedents has offered neither a substantive theoretical rationale for the proposed cross-level relationship between context and self- concept nor insight into the psychological pro- cesses involved. Over a decade ago, Brockner (1988) argued that psychological states evoked by the treatment individuals experience are more proximal antecedents of self-esteem at work than contextual factors, and that reflected appraisal is "perhaps the most straightforward process mediat- ing employees' self-esteem" (1988: 140). Our find- ings support this view. Organizational fairness and job authority perceptions were shown to mediate the relationship between organizational care and OBSE, and the form of this mediation is consistent

October 900

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 9: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

McAllister and Bigley

with the understanding of fairness and job author- ity as reflected appraisals that inform assessments of self-worth.

Second, our conceptualization of work context brings specificity and parsimony to models of OBSE antecedents. Prior research (Korman, 1970) identified disparate organizational practices (train- ing and performance management programs, em- ployee counseling, job rotation, and so forth) that might influence employee self-worth assessments. However, an almost infinite number of these prac- tices could possibly affect OBSE. Furthermore, dif- ferent configurations of practices could conceiv- ably lead to similar OBSE levels. Our focus on the more stable underlying values and principles that produce coherence in employee-treatment across individuals and over time (that is, organizational care) appears more conducive to systematic, empir- ical study of the relationship of organizational con- text to organization-based self-esteem than prior approaches.

A third contribution of our study is that it ex- tends research on organizational care and helps to bring the concept into more mainstream organiza- tion sciences. Interest in the idea of care in social and organizational settings now spans 20 years (Derry, 1999; Gilligan, 1982; Liedtka, 1999; Wicks et al., 1994). However, this work has been almost exclusively conceptual (and critical) in nature. Our operational measure of organizational care, along with the empirical support for key relationships suggested by the organizational care literature, may open the door for further empirical research on the antecedents and consequences of organizational care.

The organizational care concept merits consider- ation in mainstream organization science research, especially the work on people-centered organiza- tions. It emphasizes human development as an or- ganizational imperative independent of concern for profit or competitive advantage. Thus, it makes the connection between organizational context and the development of employee self-concept, a relation- ship central to our study, much more explicit than the highly related work on people-centered organi- zations (e.g., Pfeffer, 1998). More generally, the organizational care literature highlights the non- contractual and communal aspects of human or- ganization. Recent empirical findings suggest that, beyond acknowledged instrumental and strategic considerations, organizations may adopt people- centered practices specifically because they hold concern for employees as a central organizational value (Osterman, 1994). Indeed, to the extent that the focus of research extends beyond legitimating people-centered practices on strategic and compet-

itive grounds to more fully understanding the dy- namics of employee-organization relations in gen- eral, consideration of the role and impact of values such as organizational care, as a complement to instrumental values, appears indispensable (Held, 1990; Mansbridge, 1990).

Limitations and Future Research Our findings should be considered in light of

several limitations. It is difficult to fully substanti- ate causal arguments with cross-sectional data. However, and as discussed, the hypothesized rela- tionships between organizational justice and OBSE and between job authority and OBSE are supported by findings from either controlled experiments or longitudinal studies, which both permit stronger causal inference. In addition, different sources pro- vided data on organizational care and OBSE in our study. It seems unlikely that employee perceptions of organizational fairness, experienced job author- ity, and appraisals of self-worth influenced super- visory informant reports on organizational care. Still, longitudinal or experimental research is needed to test our model before we can have com- plete confidence in the findings.

Our work also raises issues about the possible effects of constructs not included in this study. In particular, global self-esteem and POS warrant at- tention. Global self-esteem and OBSE are correlated constructs (Jex & Elaqua, 1999; Pierce et al., 1989), and one possible approach to the study of global self-esteem is to view it as a personality trait that is relatively unsusceptible to change in adults. Our model may be underspecified insofar as global self- esteem, as a highly stable trait, is modeled as an OBSE antecedent. However, most recent research (including longitudinal studies of adolescents and mature adults) on the relationship of global self- esteem to facet-specific self-esteem (including OBSE) suggests that global self-esteem is a mallea- ble aspect of self-concept (e.g., Marsh & Yeung, 1999; Morse & Gergen, 1970) that stems from con- text-specific components (Reitzes, Mutran, Fernan- dez, 1996; Rosenberg, Schooler, Schoenbach, & Rosenberg, 1995). Brockner (1988) and Tharenou (1979) further suggested that global self-esteem may moderate the effects of social context on OBSE. If this is the case, the associations we re- ported may be understated for individuals with low global self-esteem and overstated for individuals high on this aspect of self-concept. Thus, future research on the organizational context-OBSE rela- tionship might benefit from modeling global self- esteem as a moderator.

Previous research has shown that perceived or-

901 2002

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 10: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

Academy of Management Journal

ganizational support can be an outcome of procedural justice perceptions, but we did not include it as an additional mediator in our study for two main rea- sons. First, our objective was to predict organization- based self-esteem. Although organizational fairness and job authority have both received theoretical and empirical support as OBSE antecedents, we were unable to locate a single study that attempted to model POS in the same manner. Second, standard measurements of OBSE and POS appear too closely related to warrant inclusion in the same study. That is, the appraisals of employees that they are valu- able, trusted, and cared about in their organizations (OBSE) go hand-in-hand with their appraisals that the organization values, trusts, and cares about them (POS). Current conceptualizations and measurements of these two constructs do not appear to allow schol- ars to distinguish adequately between them. Future research attempting to improve the explanatory power of our model through the inclusion of POS as an additional link between organizational fairness and OBSE will have to demonstrate that POS and OBSE are conceptually distinct and devise measures permitting support of this distinction.

Although we believe supervisors, whom we used here as our source of information about organiza- tional care, are a useful source of such information, this approach does not permit an evaluation of the shared aspects of the core values that comprise organizational care. As an organization-level phe- nomenon, perceptions of organizational care should be shared among employees and supervi- sors alike. Therefore, our findings are best viewed as an initial empirical test of our theoretical frame- work that merits replication using multiple respon- dents to assess organizational care.

Finally, the finding that reputational effective- ness was not a statistically significant control vari- able merits further attention. Perhaps competence is not a basis of OBSE. Alternatively, basic perceptual and attributional biases (for instance, self-serving bias or fundamental attribution error) may render reputa- tional effectiveness a poor proxy for competence. Thus, it seems necessary that the effects of compe- tence on OBSE be further investigated in research using different measures of competence.

Conclusion

These limitations notwithstanding, our cross- level study provides insight into how organiza- tional context may influence employee self- concept. It highlights the central role of organiza- tional fairness and job authority as psychological mechanisms that, through a process of reflected appraisal, mediate the relationship between organ-

izational care as a facet of organizational context and employee articulations of themselves as or- ganization members. The model proposed and tested is intended as a framework for continued research on the foundations of organization-based self-esteem.

REFERENCES

Anderson, J., & Gerbing, D. 1988. Structural equation models in practice: A review and recommended two- step approach. Psychological Bulletin, 103: 411- 423.

Aryee, S., & Luk, V. 1996. Work and nonwork influences on the career satisfaction of dual-earner couples. Journal of Vocational Behavior, 49: 38-52.

Baron, R. M., & Kenny, D. A. 1986. The moderator-medi- ator variable distinction in social psychological re- search: Conceptual, strategic and statistical consid- erations. Journal of Personality and Social Psychology, 51: 1173-1182.

Benner, P. E. 1984. From novice to expert. Menlo Park, CA: Addison-Wesley.

Bentler, P. M. 1995. EQS structural equations program manual. Encino, CA: Multivariate Software.

Bies, R. J., & Moag, J. S. 1986. Interactional justice: Com- munication criteria of fairness. Research on Nego- tiation in Organizations, 1: 43-55.

Bowden, P. 1997. Caring: Gender-sensitive ethics. Lon- don: Routledge.

Brockner, J. 1988. Self-esteem at work. Lexington, MA: Lexington Books.

Burton, B. K., & Dunn, C. P. 1996. Feminist ethics as moral grounding for stakeholder theory. Business Ethics Quarterly, 6: 133-147.

Campbell, D. T. 1955. The informant in quantitative re- search. American Journal of Sociology, 60: 339- 342.

Collins, J. C., & Porras, J. I. 1994. Built to last. New York: Harper Collins.

Cooley, C. H. 1902. Human nature and the social order. New York: Scribner.

Denison, D. R. 1996. What is the difference between organizational culture and organizational climate? A native's point of view on a decade of paradigm wars. Academy of Management Review, 21: 619-654.

Derry, R. 1999. The mother-child paradigm and its rele- vance to the workplace. Business and Society, 38: 217-225.

Deutsch, M. 1975. Equity, equality and need: What de- termines which value will be used as the basis of distributive justice? Journal of Social Issues, 31: 137-149.

October 902

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 11: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

McAllister and Bigley

Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. 1986. Perceived organizational support. Journal of Applied Psychology, 71: 500-507.

Festinger, L. 1957. A theory of cognitive dissonance. Stanford, CA: Stanford University Press.

Frost, P. J. 1999. Why compassion counts! Journal of Management Inquiry, 8: 127-134.

Gardner, D. G., & Pierce, J. L. 1998. Self-esteem and self-efficacy within the organizational context. Group and Organization Management, 23: 48-70.

Gecas, V. 1982. The self concept. In A. Inkeles (Ed.), Annual review of sociology, vol. 8: 1-33. Palo Alto, CA: Annual Reviews.

Gilligan, C. 1982. In a different voice. Cambridge, MA: Harvard University Press.

Held, V. 1990. Mothering versus contract. In J. Mans- bridge (Ed.), Beyond self-interest: 287-304. Chica- go: University of Chicago Press.

Hui, C., & Lee, C. 2000. Moderating effects of organiza- tion based self-esteem on organizational uncertainty: Employee response relationships. Journal of Man- agement, 26: 215-232.

James, W. 1890. The principles of psychology. New York: Holt.

Jex, S. M., & Elaqua, T. C. 1999. Self-esteem as a moder- ator: A comparison of global and organization-based measures. Journal of Occupational and Organiza- tional Psychology, 72: 71-81.

Kahn, W. 1993. Caring for the caregivers: Patterns of organizational caregiving. Administrative Science Quarterly, 38: 539-563.

Konovsky, M. A. 2000. Understanding procedural justice and its impact on business organizations. Journal of Management, 26: 489-511.

Koper, G., Van Knippenberg, D., Bouhuijs, F., Vermunt, R., & Wilke, H. 1993. Procedural fairness and self- esteem. European Journal of Social Psychology, 23: 313-325.

Korman, A. 1970. Toward a hypothesis of work behavior. Journal of Applied Psychology, 54: 31-41.

Kumar, N., Stern, L. W., & Anderson, J. C. 1993. Conduct- ing interorganizational research using key infor- mants. Academy of Management Journal, 36: 1633-1651.

Landis, R. S., Beal, D. J., & Tesluk, P. E. 2000. A compar- ison of approaches to forming composite measures in structural equation models. Organizational Re- search Methods, 3: 186-207.

Lawler, E. E. 1992. The ultimate advantage. San Fran- cisco: Jossey-Bass.

Liedtka, J. 1996. Feminist morality and competitive real- ity: A role for an ethic of care? Business Ethics Quarterly, 6: 179-200.

Liedtka, J. 1999. Linking competitive advantage with communities of practice. Journal of Management Inquiry, 8: 5-16.

Mansbridge, J. (Ed.). 1990. Beyond self interest. Chicago: University of Chicago Press.

Marsh, H. W., & Yeung, A. S. 1999. The liability of psychological ratings: The chameleon effect in global self-esteem. Personality and Social Psychol- ogy Bulletin, 25: 49-64.

Masterson, S. M., Lewis, K., Goldman, B. M., & Taylor, M. S. 2000. Integrating justice and social exchange: The differing effects of fair procedures and treatment on work relationships. Academy of Management Journal, 43: 738-748.

Mathieu, J. E., & Farr, J. L. 1991. Further evidence for the discriminant validity of measures of organizational commitment, job involvement, and job satisfaction. Journal of Applied Psychology, 76: 127-133.

McAllister, D. J. 1995. Affect- and cognition-based trust as foundations for interpersonal cooperation in or- ganizations. Academy of Management Journal, 38: 24-59.

Mead, G. H. 1934. Mind, self, and society. Chicago: University of Chicago Press.

Miller, C. C., Cardinal, L. B., & Glick, W. H. 1997. Retro- spective reports in organizational research: A reex- amination of recent evidence. Academy of Manage- ment Journal, 40: 189-204.

Moorman, R. H., Blakely, G. L., & Niehoff, B. P. 1998. Does perceived organizational support mediate the relationship between procedural justice and organi- zational citizenship behavior? Academy of Manage- ment Journal, 41: 351-357.

Morse, S. J., & Gergen, K. J. 1970. Social comparison, self-consistency, and the concept of self. Journal of Personality and Social Psychology, 16: 148-156.

Nunnally, J. 1978. Psychometric theory. New York: McGraw-Hill.

O'Reilly, C. A., & Pfeffer, J. 2000. Hidden value. Boston: Harvard Business School Press.

Osterman, P. 1994. How common is workplace transfor- mation and who adopts it? Industrial and Labor Relations Review, 47: 173-188.

Pfeffer, J. 1998. The human equation. Boston: Harvard Business School Press.

Pierce, J. L., Gardner, D. G., Cummings, L. L., & Dunham, R. B. 1989. Organization-based self-esteem: Con- struct definition, measurement, and validation. Academy of Management Journal, 32: 622-648.

Pierce, J. L., Gardner, D. G., Dunham, R. B., & Cummings, L. L. 1993. Moderation by organization-based self- esteem of role condition-employee response rela- tionships. Academy of Management Journal, 36: 271-288.

903 2002

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions

Page 12: Academy of Management …sistemas2.dti.uaem.mx/evadocente/programa2/201569/...Academy of Management Journal alized here, organizational care is the organization- level equivalent of

Academy of Management Journal

Reitzes, D. C., Mutran, E. J., & Fernandez, M. E. 1996. Pre-retirement influences on postretirement self- esteem. Journals of Gerontology, Series B-Psycho- logical Sciences and Social Sciences, 51: S242- S249.

Rosenberg, M. 1979. Conceiving the self. New York: Basic Books.

Rosenberg, M., Schooler, C., Schoenbach, C., & Rosen- berg, F. 1995. Global self-esteem and specific self- esteem: Different concepts, different outcome. American Sociological Review, 60: 141-156.

Schlenker, J. A., & Gutek, B. A. 1987. Effects of role loss on work-related attitudes. Journal of Applied Psy- chology, 72: 287-293.

Schwalbe, M. L. 1985. Autonomy in work and self- esteem. Sociological Quarterly, 26: 519-535.

Seidler, J. 1974. On using informants: A technique for collecting quantitative data and controlling measure- ment error in organizational analysis. American So- ciological Review, 39: 816-831.

Spreitzer, G. M., & Quinn, R. E. 1996. Empowering mid- dle managers to be transformational leaders. Journal of Applied Behavioral Science, 32: 237-261.

Tabachnick, B. G., & Fidell, L. S. 1996. Using multivar- iate statistics. New York: Harper Collins.

Tharenou, P. 1979. Employee self-esteem: A review of the literature. Journal of Vocational Behavior, 15: 316-346.

Tronto, J. C. 1998. An ethic of care. Generations, 22(3): 15-20.

Tsui, A. S. 1984. A role set analysis of managerial repu- tation. Organizational Behavior and Human Per- formance, 34: 64-96.

Tsui, A. S., Pearce, J. L., Porter, L. W., & Tripoli, A. M. 1997. Alternative approaches to the employee- organization relationship: Does investment in em- ployees pay off? Academy of Management Journal, 40: 1089-1121.

Tyler, T. R. 1989. The psychology of procedural justice:

A test of the group value model. Journal of Person- ality and Social Psychology, 57: 333-344.

Tyler, T. R., Kramer, R. M., & John, O. P. (Eds.). 1999. The psychology of the social self. Mahwah, NJ: Erlbaum.

Tyler, T. R., & Lind, E. A. 1992. A relational model of authority in groups. In M. Zanna (Ed.), Advances in experimental social psychology, vol. 25: 115-195. New York: Academic Press.

Van de Ven, A. H., & Ferry, D. L. 1980. Measuring and assessing organizations. New York: Wiley.

Wicks, A. C., Gilbert, D. R., & Freeman, R. E. 1994. A feminist reinterpretation of the stakeholder concept. Business Ethics Quarterly, 4: 475-498.

Wiesenfeld, B. M., Brockner, J., & Thibault, V. 2000. Procedural fairness, managers' self-esteem, and man- agerial behaviors following a layoff. Organizational Behavior and Human Decision Processes, 83: 1-32.

Wright, P. M., McMahan, G. C., Snell, S. A., & Gerhart, B. 2001. Comparing line and HR executives' perceptions of HR effectiveness: Services, roles, and contributions. Human Resource Management, 40: 111-123.

Daniel J. McAllister ([email protected]) is a visiting associate professor at the National University of Singa- pore. He received his Ph.D. from the University of Cali- fornia, Irvine. His research interests are centered on the social or relational foundations of workplace attitudes and behavior, including trust and distrust, commitment, and citizenship behavior.

Gregory A. Bigley is an assistant professor of human resource management and organizational behavior at the University of Washington. He received his Ph.D. from the University of California, Irvine. His research interests focus on trust, motivation, leadership, and the social- psychological foundations of high-reliability/high- performance organizing.

As

904 October

This content downloaded from 138.23.70.115 on Mon, 15 Jul 2013 14:43:32 PMAll use subject to JSTOR Terms and Conditions