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June 2010 Dissertation

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DISSERTATIONDEFENSE

Edward R. Haberek, Jr.June, 2010

AcknowledgmentsI would like to express my most sincere appreciation to:Dr. Emmanuel T. SantosDr. Nerza A. RebustesDr. Dante SyDr. PedritoSalvadorMy Family, especially:My Parents, Edward Sr. and PatriciaMy Wife, MaureenMy Daughters, Nicole and Olivia

Acknowledgments (contd.)I/AME Administration, including:Primavera S. Donohue, Vice PresidentFaculty and Staff

My Friends, including:Dr. Donna Maria Blancero, TUI AdvisorMLiss Rinaldi

I/AME Colleagues, including:Sonny CualterosChris PerezAtty. Elba CruzJiggs GegajoArnold GuarinAlex ZapataRicky Tolentino

National Society of Hispanic MBAs (NSHMBA)

DISSERTATION TITLE:

AN EVALUATION OFTHE FACTORS AFFECTING CONTRACTS, JUSTICE, AND SUPPORT IN THE WORKPLACE RESEARCHER : Mr. Edward R. Haberek, Jr. SCHOOL : International Academy of Management and Economics (I/AME)

DEGREE : Doctor of Philosophy (Management)ADVISOR : Dr. Nerza A. Rebustes

YEAR : 2010

The Problem and its Background

Scope of the StudyCross-sectional study using web-based surveyRespondents included 1,236 Hispanic business professionalsStudy designed to examine the relationship of Trust, Fairness, Justice, and Support in the workplaceOutcomes and recommendations to provide insight to a healthy work environment.

Scope of the Study (contd.)The study examines the effects of employers decisions on employees, including:Perceived Organizational SupportPsychological Contract FairnessLeader-Member Exchange

Background of the StudyTrust, Fairness, and Justice - important fundamentals for satisfied, content, and productive employees.An employers decisions affect individual employees on a more or less daily basis.Outcomes of decisions often form the motivation to work for the organization.

Purpose of the StudyThe study was conducted to evaluate the factors of Trust, Fairness, and Justice in todays workplace environment.The study was to identify correlations of Perceived Organizational Support, Psychological Contract Fairness, and Leader-Member Exchange in Trust.The study provides outcomes and recommendations to help provide insight to a conducive work environment with trusting relationships.

Significance of the StudyThis study concentrates on various issues relating to Hispanic business professionals.This study is distinctive because it serves as a component of a larger research project (Blancero and DelCampo, 2003).Research will add to Psychological Contract Fairness literature with constructs of the assessments not previously studied.

Theoretical FrameworkInformation gained from this study will yield substantial benefits for scholars, practitioners, future Hispanic generations and corporate America. (Blancero and Blancero, 2001)Lessons learned from this research may be applied by management in addressing the unique issues Hispanic employees face, including: identity, fairness, support, and leadership.

Conceptual FrameworkOrganizational management literature severely neglects the role that ethnicity and culture have played in influencing work experiences for Hispanic personnel. (Romero, 2004)This research focuses on various issues as they relate to Hispanic business professionals and various forms of Trust, Justice, Organizational Support, Psychological Contract Fairness, and Leader-Member Exchange.

Statement of the ProblemThe study was conducted to evaluate factors affecting contracts, Justice and Support in todays workplace environment.

The study identifies correlations of Perceived Organizational Support, Psychological Contract Fairness, Justice, and Leader-Member Exchange in Trust and examines the relation of each factor in the workplace.

Research QuestionsDoes Psychological Contract Fairness have a direct effect on Trust when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?Does Leader-Member Exchange Theory have a direct effect on Trust when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?Does Organizational Support have a direct effect on Trust when controlling for age, gender, total work experience, tenure with supervisor, and tenure with organization?Is the relationship between Organizational Support and Trust mediated by Leader-Member Exchange Theory when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?

Research Questions (contd.)Is the relationship between Organizational Support and Trust mediated by Psychological Contract Fairness when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?

Is the relationship between Organizational Support and Trust moderated by Perceived Discrimination when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?

Is the relationship between Organizational Support and Trust moderated by Procedural Justice when controlling for age, gender, total work experience, tenure with supervisor, and tenure with the organization?

Study ObjectivesTo analyze Psychological Contracts Fairness and Justice and their application to the workplace.

To investigate correlations between Perceived Organizational Support and Psychological Contracts Fairness as important influences on Trust and feelings of Fairness and Justice in the workplace.

To examine the effects of the constructs of Perceived Discrimination and Leader-Member Exchange Theory.

Review of Related Literature

Review of Related LiteratureTrustFairnessJusticePerceived Organizational SupportPsychological ContractLeader-Member Exchange TheoryPerceived Discrimination

Elements of TrustMayer, Davis, and Schoorman (1995) defined Trust as the willingness of a party, the Trustor, to allow him or herself to be vulnerable to the actions of another party, the Trustee.Trust involves associated Risk. This is because the Trustor is willing to be vulnerable to the Trustee.Trust relies upon the Trustee to perform certain desired behaviors. For this reason, the Trustor must believe both that the Trustee wants to engage in the desired behavior and has the ability and capacity to do so. The actions that the Trustor anticipates that the Trustee will perform may be important to the Trustor for several reasons. Included in the definition of Trust is the Trustor's perception of the motivation that brings about the behavior of the Trustee.

Elements of Trust (contd.)Lewicki & Bunker (1996) applied model to intra-organizational relations.Typical Management Mechanisms involved are:- Calculus-Based Trust : Contracts and Controls- Knowledge-Based Trust: Communication and Courtship- Identification-Based Trust: Proxy representation along with social bonding

Types of TrustFamiliarization is the process that leads to the formation of Trust. Traditional Trust Past experience and Self-controlInstitutional Trust- Outside controlsActive Trust- Based on Good Faith and Individuals

FairnessCropanzano and Schminke (2001) pointed out that individuals are the subjects of decisions almost every day in an organization.Decisions often form the foundation of the motivation for individuals to work for this organization.Individuals often judge the fairness of the decisions affecting them (Colquitt, 2001).

Types of JusticeDistributive Justice Justice of Decision OutcomesProcedural Justice- Processes that result in decision outcomesOrganizational Justice- Justice on the effectiveness of the way in which organizations function

Organizational JusticeConceptualizations in research Distributive Justice- Fairness of the ends achievedProcedural Justice Fairness of policies and procedures used to make the decisionsInteractional Justice- The basis of expectations for interpersonal treatment (concept first introduced by Bies and Moag; 1986)

Perceived Organizational SupportDefined: Whether organizations support and care of well-being. (Rhoades & Eisenberger; 2002) Three Categories:- Supervisor Support - Fairness- Organizational Rewards Results in: - Positive Mood /Job satisfaction (Employee)- Good Performance/Commitment (Organization)

Psychological Contract TheoryBasis: The difference between that which is promised and that which is delivered from the perspective of the employee, and hence his or her reciprocation. (Coyle-Shapiro & Conway, 2005)Breach of the Psychological Contract may result in erosion of the relationship. (Robinson, 1996)According to Psychological Contract theory, POS will affect the fulfillment of Psychological Contracts and a reciprocal relationship will exist. (Morrison & Robinson, 1997)Psychological Contracts are become increasingly important in today's employment relationships.

Psychological Contract FairnessDefined: Individual's belief to the conditions and terms of an Exchange Relationship that exists with another party (Rousseau, 1989)Concerned with the mutual obligations that are perceived as well as the degree to which they are fulfilled in the Exchange Relationship between the employee and the employer.Includes both the employer's and the employee's perspectives

Leader-Member Exchange TheoryPremise: role development results in differentiated role exchanges between the leader and subordinates within an organization (Case, 1998)- In group: members benefit from an increase leadership support for their actions and increased consideration and confidence by the leader.- Out group: low levels of m