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Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

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The ultimate goal of organizations is their survival. In the case of public limited companies, survival depends on the capital markets' expectations of their current and future profitability. If the investors perceive that a firm will, at a given level of risk, provide a lower return on their investment than other organizations, they will withdraw their capital and reinvest it elsewhere. The current and future profitability, in turn, rests on the company's ability to contribute something to the economy which people are and will be willing to pay for and which the company does better than other companies. The capital markets represent a mechanism for assessing the current and future demands for different products and services, and for allocating available resources accordingly. This mechanism has become increasingly important in recent years. As product and capital markets have turned global, there are a greater number of firms which compete in satisfying the needs of an economy. Additionally, the technological development has been impacting on what society demands and is willing to pay for. There is a greater degree of dynamism with regard to both what it is that people are willing to pay for and which company is best positioned ‘to do the job.’ This dynamism has resulted in an increased activity of capital markets, allocating and reallocating resources.

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Notes

  1. 1.

    German universities have been egalitarian in that, until recently, students with A-levels had equal access to all universities, all universities received the same state funding, and all professors were paid the same salaries. Recently, a process of evolving into a more market-based system with elite institutions has set in.

  2. 2.

    Cf. Matusik and Hill (1998) on the distinction between component and architectural knowledge. Cf. Sect. 3.3.6. Cf. Barney (1991) on the resource-based view of the firm and sustainable competitive advantage.

  3. 3.

    E.g., Rousseau (1995); cf. Sect. 2.3.1.

  4. 4.

    Becker (1962).

  5. 5.

    Alternative to the employees bearing the costs of training through lower wages, organizations may contractually arrange for employees to reimburse the costs of training if they leave the organization prior to a set period of time. Technically speaking, human capital theory predicts that the costs of development will be shared between the employer and the employee and that the shares of each party depend on the relation between quit rates and wages, lay offs and profits, and on other factors such as the cost of funds, attitudes toward risk, and desires for liquidity Becker, (1962).

  6. 6.

    Cf. Alchian and Demsetz (">1972), Fama and Jensen (1983), Jensen and Meckling (1976).

  7. 7.

    Vroom (1964).

  8. 8.

    Cf. Ouchi (1980).

  9. 9.

    Deci (1975), also Deci and Ryan (1985).

  10. 10.

    Lindenberg (2001); cf. Gottschalg and Zollo (2007).

  11. 11.

    Hackman and Oldham (1976).

  12. 12.

    E.g., Kerr and Jackofsky (1989). Cf. Sect. 2.3.1.

  13. 13.

    Hackman and Oldham (1976).

  14. 14.

    Adapted from Thompson (1967) and Ouchi (1977, 1978).

  15. 15.

    Williamson (1975, 1985).

  16. 16.

    E.g., Di Maggio and Powell (1983).

  17. 17.

    Roehling and Wright (2003).

  18. 18.

    Ibid.

  19. 19.

    Bernardin et al. (1995).

  20. 20.

    Hanley and Nguyen (2005). Cf. Sect. 3.3.3 for further evidence.

  21. 21.

    Gooderham et al. (1999).

  22. 22.

    Peterson (1981), cf. Elsbach (2002), Wright and Snell (1998).

  23. 23.

    Doeringer and Piore (1971).

  24. 24.

    What constitutes an economic system (as opposed to an uneconomic system) is relative to the competition. Firms operating in a closed national market with certain legal constraints on employment practices may successfully operate employment systems which are less economic than those of similar companies operating in other national or international economies.

  25. 25.

    Lawrence (1985), Hendry (2000, 2003), Osterman 1987(1987).

  26. 26.

    Lawrence (1985), Hendry (2000, 2003)

  27. 27.

    Lawrence (1985).

  28. 28.

    Cf. Hendry (2000, 2003).

  29. 29.

    Hendry (2000).

  30. 30.

    E.g., Pearce (1993), Slaughter and Ang (1996), Boxall and Purcell (2002), Rousseau (1985), Hendry (2000, 2003), Lepak and Snell (1999, 2002).

  31. 31.

    Cf. Sect. 2.3.6.

  32. 32.

    Ackoff (">1978), Mintzberg et al. (1976), Ramaprasad and Mitroff (1984).

  33. 33.

    Bourgeois (1984), Vancil (1979).

  34. 34.

    Cf. Rousseau (1995, p. 96).

  35. 35.

    Matusik and Hill (1998).

  36. 36.

    Cf. Schein (1971), Hall and Nougaim (1968). Cappelli (2000) refers to companies such as General Electric, SmithKline Beecham, PepsiCo. Inc., and Procter and Gamble Co., which provide “two years of general management training and work experience to college graduates in areas like finance, human resources, information systems, and engineering” (p. 23).

  37. 37.

    Freidson (2001, p. 119).

  38. 38.

    Freidson (2001, p. 168).

  39. 39.

    Freidson (2001, p. 153).

  40. 40.

    Halliday (1987).

  41. 41.

    Ackoff (">1978), Mintzberg et al. (1976), Ramaprasad and Mitroff (1984).

  42. 42.

    Matusik and Hill (1998).

  43. 43.

    Bourgeois (1984), Vancil (1979).

  44. 44.

    Cf. Sect. 2.1.

  45. 45.

    Cf. Sect. 4.3.1.

  46. 46.

    Cf. Sect. 5.3.

  47. 47.

    Cf. Snell (1992). Ouchi and Price (1978) and Ouchi (1980) referred to such mechanisms as clan control.

  48. 48.

    Van Maanen and Schein (1979), Fisher (1986), Van Maanen (1976).

  49. 49.

    Parsons (1951), Katz (1967), Brim (1968).

  50. 50.

    Brown (1963), Caldwell (1962), Berlew and Hall (1966).

  51. 51.

    Schein (1971, p. 311).

  52. 52.

    Hall and Nougaim (1968), Buchanan (1974).

  53. 53.

    Kahn et al. (1964).

  54. 54.

    Schacter (1959).

  55. 55.

    Hall and Nougaim (1968).

  56. 56.

    Buchanan (1974).

  57. 57.

    Hall and Nougaim (1968).

  58. 58.

    Katkovsky (1965), cited in Hall and Nougaim (1968).

  59. 59.

    Buchanan (1974, p. 537).

  60. 60.

    Van Maanen and Schein (1979).

  61. 61.

    Jones (1986), Ashforth and Saks (19961996), Allen and Myer (1990).

  62. 62.

    Ashforth and Saks (1996).

  63. 63.

    Ashforth and Saks (1996).

  64. 64.

    Ibid., p. 155.

  65. 65.

    Ashforth and Saks (1996), Allen and Meyer (">1990), Jones (1986).

  66. 66.

    Allen and Meyer (">1990), Jones (1986).

  67. 67.

    Buchanan (1974).

  68. 68.

    Ashforth and Saks (1996).

  69. 69.

    Allen and Meyer (">1990).

  70. 70.

    Feldman (1981), Louis (1990), Reichers (1987).

  71. 71.

    Louis et al. (1983), Ostroff and Kozlowski (1992).

  72. 72.

    Brass (1984), Ibarra (1992), Krackhardt (1992), Podolny and Baron (1997).

  73. 73.

    Morrison (2002).

  74. 74.

    Campbell et al. (1986).

  75. 75.

    Ostroff and Kozlowski (1992).

  76. 76.

    Lin (1982).

  77. 77.

    Ibara (1995), Louis (1990), Ostroff and Kozlowski (1992).

  78. 78.

    Morrison (2002).

  79. 79.

    Cf. Brass (1995).

  80. 80.

    Reichers (1987).

  81. 81.

    Morrison (2002).

  82. 82.

    Ashforth and Saks (1996, p. 171).

  83. 83.

    Cf. following subsection.

  84. 84.

    Cf. Ashforth and Saks (1996).

  85. 85.

    E.g., Angle and Parry (1981), Mayer and Schoorman (1992), Stevens et al. (1978), Morris and Sherman (1981), Mathieu and Zajac (1990), Meyer and Allen (1984). A third type of commitment has also been distinguished, i.e., normative commitment. It is defined as a sense of obligation to one's organization (Allen and Meyer, 1990). It has, however, been found too closely related to value commitment to be regarded a separate construct (Meyer et al. 2002; Ko et al., 1997).

  86. 86.

    O'Reilly and Chatman (1986, p. 497).

  87. 87.

    Kelman (1958).

  88. 88.

    There is ample evidence to establish that identification and internalization are distinct constructs (Kelman, 1961; Kelman and Eagly, 1965; Klein, 1967; Romer, 1979; Smith, 1976).

  89. 89.

    O'Reilly and Chatman (1986, p. 497).

  90. 90.

    Cf. Becker et al. (1996).

  91. 91.

    Buchanan (1974, p. 533).

  92. 92.

    Tajfel and Turner (1979, 1986), Lembke and Wilson (1998).

  93. 93.

    Rousseau (1998, p. 219).

  94. 94.

    Sherif and Sherif (1969).

  95. 95.

    Rousseau (1998, p. 218).

  96. 96.

    Eisenberger et al. (1986).

  97. 97.

    Rousseau (1998, p. 222).

  98. 98.

    Lembke and Wilson (1998, p. 929).

  99. 99.

    Tajfel and Turner (1986).

  100. 100.

    This does not imply that employers must exploit their employees or other constituencies. Treating employees well may increase the current and future value of the organization. Besides that, it is the espoused objective of the current work to depict economic mechanisms taking the perspective of the organization. An understanding of economic pressures and mechanisms operating at the organizational level, it is hoped, will contribute to a balanced and informed judgment of individual decision makers, taking into account the welfare of all constituencies involved.

  101. 101.

    E.g., Mayer and Schoorman (1992, 1998).

  102. 102.

    E.g., Kohn (1996).

  103. 103.

    Riketta (2002).

  104. 104.

    Previous metaanalyses covering a maximum of eight samples yielded comparable estimates of the strengths of the commitment—performance relationship (Allen and Meyer, (1996; Mathieu and Zajac, 1990; Mowday et al., 1982; Organ and Ryan, 1995; Randall, 1990).

  105. 105.

    Riketta (2002, p. 264).

  106. 106.

    Hunter (1981).

  107. 107.

    Mischel (1977), Weiss and Adler (1984), Adler (">1996).

  108. 108.

    Barrick and Mount (1993).

  109. 109.

    Cf. Sects. 2.3.2, 3.3.2.

  110. 110.

    Hunter (1981), cf. Sect. 4.2.

  111. 111.

    Cf. Sect. 4.2.

  112. 112.

    Harrison et al. (2006).

  113. 113.

    Ibid., p. 316.

  114. 114.

    Ibid., p. 318.

  115. 115.

    See below.

  116. 116.

    E.g., Angle and Perry (1981).

  117. 117.

    Continuance commitment has been captured in empirical studies by scoring respondents based on whether they would definitely change, were undecided, or would definitely not change employing organizations given (a) no, (b) a slight, or (c) a large increase in (1) pay, (2) freedom, (3) status, (4) responsibility, and (5) opportunity to get ahead (Ritzer and Trice, 1969).

  118. 118.

    Mayer and Schoorman (1998).

  119. 119.

    Mathieu and Zajac (1990).

  120. 120.

    Ashforth and Saks (1996).

  121. 121.

    Lee and Mowday (1987).

  122. 122.

    Also cf. Porter et al. (1974), Michaels and Spector (1982), Arnold and Feldman (1982), Larson and Fukami (1984), Clegg (1983), Cotton and Tuttle (1986).

  123. 123.

    Mayer and Schoorman (1992, 1998).

  124. 124.

    Meyer et al. (1989).

  125. 125.

    Becker (1960).

  126. 126.

    Alutto et al. (1973), Hrebiniak and Alutto (1972), Shoemaker et al. (1977), Stevens et al. (11978).

  127. 127.

    Ritzer and Trice (1969).

  128. 128.

    Meyer and Allen (1984).

  129. 129.

    Alutto et al. (1973, p.448).

  130. 130.

    Cf. Freidson (1986), Ritzer and Trice (1969), Lepak and Snell (1999, 2002), Hendry (2000, 2003).

  131. 131.

    Rhodes and Steers (1981), Fields and Thacker (1992), Leama et al. (1992), Dornstein and Matala (1989), Mathieu and Hamel (1989).

  132. 132.

    Nystrom (1990).

  133. 133.

    Brown (1969).

  134. 134.

    Kalleberg and Marsden (1995), Meyer and Allen (1997, p. 39), van Knippenberg (2000), Cohen (1991), Randall (1990).

  135. 135.

    Dornstein and Matalon (1989), Mayer and Schoorman (1998), Morris and Koch (1979), Morris and Sherman (1981), Walsh and La Van (1981).

  136. 136.

    Nystrom (1990), Lee (1971).

  137. 137.

    Mayer and Schoorman (1998), cf. March and Simon (1958).

  138. 138.

    Grusky (1966).

  139. 139.

    Mayer and Schoorman (1998), Stevens et al. (1978), Jamal and Baba (1991), Mathieu and Farr (1991), Igbaria and Siegel (1992).

  140. 140.

    Johnson and Chang (2008, p. 513), also Irving and Meyer (1994), Meyer et al. (1991), Meyer et al. (2002).

  141. 141.

    Mayer and Schoorman (1998).

  142. 142.

    Sheldon (1971).

  143. 143.

    Lee (1971), Brown (1969), Hackett et al. (1994), Hrebiniak (1974), Stevens et al. (1978), Mayer and Schoorman (1998), Sheldon *(19711971).

  144. 144.

    Farrell and Rusbult (1981), Mobley et al. (1979).

  145. 145.

    Strober (1990).

  146. 146.

    Steers (1977), Morris and Steers (1980), Angle and Perry (1981), Morris and Sherman (1981), Mathieu and Hamel (1989), Dornstein and Matalon (1989), Mayer and Schoorman (1998).

  147. 147.

    Farrel and Rusbult (1981).

  148. 148.

    Cf. Meyer and Schoorman (1998).

  149. 149.

    The generalist manager employment mode corresponds to what has elsewhere been termed knowledge-based employment (Lepak and Snell, 1999, 2002), career system (Hendry, 2000, 2003; Lawrence, 1985), core employees (Rousseau, 1995), and salaried subsystem (Osterman, 1982, 1984, 1987, 1988).

  150. 150.

    Cf. Becker (1962).

  151. 151.

    Cf. Freidson (2001).

  152. 152.

    The argument will be elaborated below.

  153. 153.

    Vollmer and Mills (1996), Moore (1970), Larson (1977).

  154. 154.

    Freidson (2001, p. 122).

  155. 155.

    Goode (1957), Greenwood (1957), Wilensky (1964), Larson (1977).

  156. 156.

    Freidson (1986, p. 170)

  157. 157.

    Freidson (2001).

  158. 158.

    Some professions have gained their special status despite an absence of strong representative associations. Engineers, for example, owe their special status to politicians who recognized their importance to the military and infrastructure of their country. Their special status does not only encompass public recognition and professional autonomy but also academic recognition and legal protection of qualifications in Germany and France (Freidson, 2001).

  159. 159.

    Ibid.

  160. 160.

    Freidson (2001, p. 171–172).

  161. 161.

    The majority of skilled contingent workers are contracted and not employed as temporaries; cf. Sect. 2.3.6.

  162. 162.

    Cf. Williamson (1975, 1985); Sect. 2.1.

  163. 163.

    Cf. Sect. 2.3.6.

  164. 164.

    Becker (1962), Lepak and Snell (1999, 2002).

  165. 165.

    E.g., Marler et al. (2002); cf. Sect. 2.3.6.

  166. 166.

    Freidson (1988, p. 152).

  167. 167.

    Ibid.

  168. 168.

    NLRA, Sect. 2.

  169. 169.

    Finkin (1977).

  170. 170.

    Baker et al. (1988, p. 602.).

  171. 171.

    Cf. Chap. 3.

  172. 172.

    See subsection below.

  173. 173.

    Cf. Sect. 3.3.2 on professional hierarchies and staffing systems.

  174. 174.

    Gouldner (1957, 1958), Ben-David (1958), Corwin (1961), Shepard (1956, 1961), Kornhauser (1962).

  175. 175.

    Vollmer and Mills (1966), Larson (1977).

  176. 176.

    American Institute of Certified Public Accountants (AICPA), cited in Aranya and Ferris (1984).

  177. 177.

    Aranya et al. (1981, p. 273).

  178. 178.

    Larson (1977).

  179. 179.

    Freidson a(1986, p. 170).

  180. 180.

    Scott (1966).

  181. 181.

    Sorensen and Sorensen (1974), Wilensky (1956), Gouldner (1957), Reichers (1985, 1986).

  182. 182.

    Shepard (1956), Ben-David (1958), Gouldner (1958).

  183. 183.

    Abrahamson (">1956), Avery (1960), Grimes and Berger (1970), Berger and Grimes (1973), Filley and Grimes (1968), Flango and Brumbaugh (1974), Friedlander (1971), Goldberg et al. (1965), House and Wigdor (1968), Jauch et al. (1978).

  184. 184.

    Goode (1969), Hastings and Hinings (1970), Tuma and Grines (1981).

  185. 185.

    Aranya and Ferris (1984).

  186. 186.

    Aranya et al. (1981).

  187. 187.

    Goode (1957), Greenwoode (1957), Wilensky (1964), Larson (1977).

  188. 188.

    Freidson (2001, p. 123).

  189. 189.

    Aranya and Ferris (1984).

  190. 190.

    Closely related to the concept of professional commitment is occupational commitment. Strictly speaking, professional commitment is defined more narrowly than occupational commitment, akin to the distinction between professions and occupations. However, for the purposes of the present work, it is assumed that the antecedents and effects of occupational commitment are the same as those of professional commitment (cf. Blau et al., 1993; Wallace, 1993).

  191. 191.

    Welsch and La Van (1981).

  192. 192.

    Welsch and La Van (1981), Buchanan (1974).

  193. 193.

    Cohen (1992, p. 542—543).

  194. 194.

    Ibid., p. 543—544.

  195. 195.

    Bauer et al. (1998), Ostroff and Kozlowski (1992).

  196. 196.

    Morrison (2002, p. 1150).

  197. 197.

    Ibid.

  198. 198.

    Snell (1992).

  199. 199.

    This employment mode resembles what has elsewhere been referred to as craft subsystem (Osterman, 1982, 1984, 1987, 1988), occupational system (Hendry, 2000, 2003), and job-based employment system (Lepak and Snell, 1999, 2002). Predecessors of this type of employment relationship include the communal ownership approach of craft groups (Kerr, 1954), craft markets (Doeringer and Piore, 1971), and craft systems (Lawrence, 1985).

  200. 200.

    The approach is named after Frederick W. Taylor who was first to publish a comprehensive description of it (Taylor, 1911).

  201. 201.

    Nevins (1954).

  202. 202.

    Cf. Sect. 2.3.4.

  203. 203.

    Batt (1999, p. 540).

  204. 204.

    Cf. Jacoby (1984), Steiber (1959), Kahn (1976), Rubery (1978), Elbaum (1984).

  205. 205.

    Cf. Sect. 2.3.4.

  206. 206.

    Wright and Snell (1998, p. 761).

  207. 207.

    Ibid., cf. also Tsui et al. (1997).

  208. 208.

    An organization's training and development investment costs per unit of production decrease with every day the worker stays with the organization at decreasing marginal rates.

  209. 209.

    The bulk of a firm's costs of investment into the worker's skill development occurs at the time of hiring. Because these workers are not very mobile and expected to remain with their firm until retirement, the expected average labor costs per unit of production is, if only marginally, lower for a worker hired at a younger age.

  210. 210.

    While shifts away from terms and conditions above the market equilibrium have started already in the 1980s, they continue to be an issue. In May 2008, the Ford motor company offered generous buyout packages, including one-time cash payments of $140,000 or college tuition fees for entire families, in an effort to substitute workers who have been paid middle-class wages through new hires who are paid approximately half of these wages. In the preceding 2 years, 32,000 Ford employees had accepted buyout and early retirement offers. General motors and Chrysler have been making similar offers to their hourly workers. In total, 80,000 jobs under old terms and conditions were eliminated among the three Detroit auto makers in 2006 and 2007. The revamping process is not expected to be concluded yet (The New York Times, article reprinted in World and Press, May 1, 2008, p. 10).

  211. 211.

    Fullagar and Barling (1989, p. 213).

  212. 212.

    Cf. Sect. 2.3.4 on team workers and self-managed work teams.

  213. 213.

    E.g., Angle and Perry (1986), Dalton and Todor (1982).

  214. 214.

    Stagner (1956).

  215. 215.

    Kornhauser (1961).

  216. 216.

    Fukami and Larson (1984), Dean (1954), Gottlieb and Kerr (1950), Magenau and Martin (1985), cited in Gordon and Ladd (1990).

  217. 217.

    Cf. Sect. 2.3.4.

  218. 218.

    Tajfel and Turner (1986).

  219. 219.

    Lembke and Wilson (1998).

  220. 220.

    Kochan (1979), Fullagar and Barling (1989).

  221. 221.

    Kochan (1979), Fullagar and Barling (1989), DeCotiis and LeLouarn (1981), Gordon et al. (1980).

  222. 222.

    Cohen (1992, p. 552).

  223. 223.

    Fullagar and Barling (1989), Gordon et al. (1980).

  224. 224.

    Reichers (1986).

  225. 225.

    Newton and Shore (1992).

  226. 226.

    Reichers (1985).

  227. 227.

    Cf. Batt (1999), Cappelli (2000).

  228. 228.

    Skorstad (1991), Sewell and Wilkinson (1992), Taplin (1995).

  229. 229.

    Fernie and Metcalf (1999), London (1997), Campbell et al. (1993).

  230. 230.

    German codified law: BetrVG}87, I, 6.

  231. 231.

    The German works councils are situated at the plant level.

  232. 232.

    The industrial/clerical worker employment mode corresponds to Hendry's industrial/clerical system (2000, 2003), Osterman's industrial subsystem (1982, 1982, 1984, 1987, 1988), Lawrence's technical subsystem (1985), Doeringer and Piore's enterprise markets (1971), and Kerr's private property method of industrial workers (1954).

  233. 233.

    E.g., Barker (1993), Singer and Duvall (2000), Batt and Applebaum (1995), Poza and Markus (1980), Walton (1977), Trist et al. (1977), Cordery et al. (1991), Manz et al. (1990), Manz and Angle (1986), Campion et al. (1993), Batt (1999).

  234. 234.

    Pearce and Ravlin (1987).

  235. 235.

    Pearson (1991).

  236. 236.

    Batt (2004) and Cohen and Bailey (1997) cite several empirical studies on the effects of offline participation arrangements.

  237. 237.

    Lawler (1988), Cohen and Bailey (1997), Manz and Stewart (1997).

  238. 238.

    Lawler (1988).

  239. 239.

    Rice (1953, 1958), Trist et al. (1963), Emery (1959, 1963), Elden (1981).

  240. 240.

    Ketchum and Trist (1992).

  241. 241.

    Trist (1981).

  242. 242.

    Trist et al. (1963).

  243. 243.

    E.g., Bolweg (1976).

  244. 244.

    Perry (1984), Buchanan (1987).

  245. 245.

    Guzzo and Dickson (1996, p.324), cf. also Manz and Sims (1993).

  246. 246.

    de Leede and Stoker (1999).

  247. 247.

    This argument is elaborated below.

  248. 248.

    Lawler et al. (1995).

  249. 249.

    Lawler (1998).

  250. 250.

    Osterman (2000).

  251. 251.

    Batt (2004), cf. below.

  252. 252.

    Batt (2000), cf. also Hunter (2000).

  253. 253.

    Hunter (2000).

  254. 254.

    Hunter (2000).

  255. 255.

    Ibid.

  256. 256.

    Batt (2004).

  257. 257.

    Batt (2001), Hunter (2000).

  258. 258.

    Batt (2004).

  259. 259.

    Batt (2001).

  260. 260.

    Gryzb (1984), Batt (2004).

  261. 261.

    Pearce and Ravlin (1987).

  262. 262.

    Cotton (1993).

  263. 263.

    Cohen and Bailey (1997).

  264. 264.

    Guzzo and Dickson (1996).

  265. 265.

    Macy and Izumi (1993).

  266. 266.

    E.g., Batt (1999), Singer and Duvall (2000).

  267. 267.

    Pasmore et al. (1982).

  268. 268.

    Cotton (1993).

  269. 269.

    Cohen and Bailey (1997).

  270. 270.

    Manz and Sims (1987), Lawler (1986), Walton and Schlesinger (1979), Clegg (1979), Walton (1975), Larsen (1979), Buchanan and Preston (1991), Emery (1980), Klein (1984), Mueller-Jentsch (1995), Schlesinger (1982), Schlesinger and Klein (1987), Heller et al. (1998, p. 203), Batt (2004).

  271. 271.

    Peel (1979), Hull (1978), Hodson et al. (1993), Boxall and Purcell (2002, p. 114). See below.

  272. 272.

    Carnall (1982, p. 283, p. 290).

  273. 273.

    Adler (">1991, p. 451).

  274. 274.

    E.g., Adler (">1991), Hunter (2000).

  275. 275.

    Arthur (1992), Osterman (1994), Youndt et al. (1996).

  276. 276.

    Hunter (2000, p. 481).

  277. 277.

    E.g., Kelley (1987), Smith and Comer (1994). The gist of such arguments can be related back to Burns and Stalker's claim that high rates of change call for organic structures (Burns and Stalker, 1961, p. 120—122).

  278. 278.

    Barker (1993). Cf. Sect. 4.3.4.

  279. 279.

    E.g., Henley and Nguyen (2005), Heery (1997), IRS (1999), Gunnigle et al. (1998), Roy (1954), Burawoy (1979), Walton and Hackman (1986), Molstad (1988). Econcomic analyses by Kandel and Lazear (1992, p. 810), Jones (1984, pp. 40—52).

  280. 280.

    Cf. Guzzo et al. (1985).

  281. 281.

    Hodson et al. (1993, p. 398).

  282. 282.

    Buroway (1979, p. 167) describes how worker concerns about price cutting may trigger them-and-us attitudes.

  283. 283.

    Hodson et al. (1993, p. 398).

  284. 284.

    Blauner (1964).

  285. 285.

    Cf. Goddard (2001).

  286. 286.

    Miller and Monge (1986), Ganster and Fusilier (1989).

  287. 287.

    Gallie and Vogler (1990).

  288. 288.

    Goldthorpe (1968).

  289. 289.

    Lawler (1998) reports that 78% of Fortune 1000 companies use SMWTs but that in most cases they are applied only to a small part of the workforce, supporting the notion that SMWTs may primarily be applied to the core workforce of organizations.

  290. 290.

    Rousseau (1998), cf. Sect. 2.3.1.

  291. 291.

    Rousseau (1998, p. 223).

  292. 292.

    Rousseau (1998), Robinson and Rousseau (1994).

  293. 293.

    Cf. Lawler (1982), Buch (1992).

  294. 294.

    E.g., Boxall and Purcell (2002, p. 122).

  295. 295.

    Hunt and Morgan (1994, p. 1583).

  296. 296.

    Becker et al. (1996, p. 477).

  297. 297.

    Cf. Sect. 3.3.4.

  298. 298.

    Also cf. Sect. 2.3.1.

  299. 299.

    Lembke and Wilson (1998, p. 929).

  300. 300.

    Oliver and Roos (2003, p. 1072).

  301. 301.

    Tajfel (1982, p. 24).

  302. 302.

    Oliver and Roos (2003, p. 1072).

  303. 303.

    Kandel and Lazear (1992, p. 808).

  304. 304.

    Breakwell (1983).

  305. 305.

    Turner (1987).

  306. 306.

    Lembke and Wilson (1998, p. 935).

  307. 307.

    Lembke and Wilson (1998, p. 940).

  308. 308.

    Cf. following subsection.

  309. 309.

    Oliver and Roos (2003).

  310. 310.

    Barker (1993).

  311. 311.

    Chaston (1998, p. 2).

  312. 312.

    Manz and Sims (1987, p. 107).

  313. 313.

    Manz and Sims (1987).

  314. 314.

    Cf. also Manz and Sims (1993).

  315. 315.

    Cummings (1978).

  316. 316.

    Manz and Sims (1987).

  317. 317.

    Barker (1993).

  318. 318.

    The absence of worker representation is not unlawful in the US and the UK but would be in Germany.

  319. 319.

    Barker (1993, p. 432).

  320. 320.

    E.g., Sinclair (1992).

  321. 321.

    Walton and Hackman (1986, p. 170).

  322. 322.

    Turnbull (1988), Parker and Slaughter (1988, 1995), Delbridge and Turnbull (1992), Grenier (1988), Mumby and Stohl (1991).

  323. 323.

    Graham (1993).

  324. 324.

    Taplin (1996).

  325. 325.

    Fucini and Fucini (1990), Lewchuk and Robertson (1997), Rinehart et al. (1997), Landsbergis et al. (1999).

  326. 326.

    Cordery et al. (1991, p. 473).

  327. 327.

    Goddard (2001, p. 798).

  328. 328.

    Cf. Chap. 3.

  329. 329.

    The team worker employment mode corresponds to the commitment system described by Walton (1985), Lawrence (1985), and Hendry (2000, 2003).

  330. 330.

    Polivka and Nardone (1989).

  331. 331.

    Pfeffer and Baron (1988).

  332. 332.

    Cf. Rousseau and Wade-Benzoni (1995, p. 311).

  333. 333.

    E.g., Pfeffer and Baron (1988).

  334. 334.

    Connelly and Gallagher (2004).

  335. 335.

    Lepak and Snell (1999, 2002).

  336. 336.

    Marler et al. (2002).

  337. 337.

    Marler et al. (2002, p. 430), cf. Cohaney (1996), Segal and Sullivan (1997).

  338. 338.

    Marler et al. (2002), Krausz et al. (1995).

  339. 339.

    Davis-Blake et al. (2003, p.477).

  340. 340.

    Smith (1997, p. 326).

  341. 341.

    Belous (1989).

  342. 342.

    Gallagher and McLeanParks (2001, p. 185).

  343. 343.

    Bernstein (1999).

  344. 344.

    Polivka et al. (2000).

  345. 345.

    Pfeffer and Baron (1988, p. 267).

  346. 346.

    Cohaney et al. (1998), Seavey and Kazis (1994).

  347. 347.

    Carnoy et al. (1997).

  348. 348.

    Fierman (1994).

  349. 349.

    Pfeffer and Baron (1988, p. 267), cf. Cappelli and Neumark (2004), Cappelli (2000, p. 11).

  350. 350.

    Barnett and Miner (1992, p. 264).

  351. 351.

    Marler et al. (2002).

  352. 352.

    Kalleberg (2008).

  353. 353.

    Thorpe and Florence (1999).

  354. 354.

    Mangum et al. (1985, p. 610), cf. Cohaney et al. (1998).

  355. 355.

    Ibid.

  356. 356.

    Cascio (1992).

  357. 357.

    Hunter et al. (1993).

  358. 358.

    Hunter et al. (1993), European Industrial Relations Review (1996). See also Legge (1998), who states that the number of temporary workers increased by 31% in the UK between 1984 and 1996 and Matusik and Hill (1998), who find a 250% increase between 1982 and 1992 in the US.

  359. 359.

    Hakim (1987), Hart (1990).

  360. 360.

    Brewster (1998).

  361. 361.

    Cf. Sect. 3.3.5.

  362. 362.

    Lautsch (2002).

  363. 363.

    E.g., Geary (1992), Smith (1994).

  364. 364.

    Pearce (1993), Smith (1994).

  365. 365.

    Matusik and Hill (1998).

  366. 366.

    Lautsch (2002).

  367. 367.

    Uzzi and Barsness (1998, p. 976).

  368. 368.

    Davis-Blake and Uzzi (1993, p. 197).

  369. 369.

    Pfeffer and Baron (1988, p. 286).

  370. 370.

    Matusik and Hill (1998, p. 682).

  371. 371.

    Contingent work was found to be correlated with the perceived level of job security in firms with cyclical demand fluctuations (Matusik and Hill, 1998).

  372. 372.

    Handy (1989), Peffer (1994).

  373. 373.

    Smith (1994, p. 289).

  374. 374.

    Pfeffer and Baron (1988, p. 271).

  375. 375.

    Geary (1992).

  376. 376.

    Pfeffer and Baron (1988, p. 272).

  377. 377.

    Uzzi and Barsness (1998).

  378. 378.

    The findings may be generalizable to UK and US but not to German establishments, where trade union power does not depend on levels of unionization within a firm. German unions and works councils have far reaching powers per legislation. According to the above line of reasoning, powerful labor representation would explain a generally more moderate use of casual workers in German companies.

  379. 379.

    E.g., Davis-Blake and Uzzi (1993), Pearce (1993), Uzzi and Barsness (1998).

  380. 380.

    Lautsch (2002).

  381. 381.

    E.g., Handy (1990), Rousseau and Wade-Benzoni (1993).

  382. 382.

    E.g., Geary (1992).

  383. 383.

    Van Dyne and Ang (1998).

  384. 384.

    Van Dyne and Ang (1998, p. 701), cf. Sect. 2.3.6.

  385. 385.

    Marler et al. (2002), cf. Feldman et al. (1995), Ellingson et al. (1998).

  386. 386.

    Marler et al. (2002, p. 447).

  387. 387.

    Connelly and Gallagher (2004).

  388. 388.

    Klein and Hall (1988).

  389. 389.

    Gallagher and McLeanParks (2001, p. 195).

  390. 390.

    There are different types of temporary worker agencies. Some of them hire workers as regular employees, i.e., they pay them a regular income regardless of assignments to client organizations. Others act as intermediaries between the hiring firms and listed workers without employing those workers. Often, agencies have some employed workers as well as lists of independent contractors.

  391. 391.

    Gallagher and McLeanParks (2001, p.197). The attitudes of temporary workers toward agencies which hire them as regular employees may be different. Those workers are contingent from the point of view of the “client” organization while they may be core from the point of view of the temporary agency (Smith, 1994). Indeed, it has been argued that agencies should discourage their best workers from accepting regular employment with client firms and that they should foster commitment to the agency while discouraging the development of attitudinal commitment to client firms (McClurg, 1999).

  392. 392.

    E.g., Smith (1994), Geary (1992), Thomas (1994, p. 123), Graham (1995, pp. 131—135).

  393. 393.

    Lautsch (2002, p. 31).

  394. 394.

    Smith (1994, p. 299).

  395. 395.

    Lautsch (2002, p.30).

  396. 396.

    Ibid., also Pearce (1993), Geary (1992), Smith (1997).

  397. 397.

    Davis-Blake et al. (2003).

  398. 398.

    Barnett and Miner (1992), see also Pfeffer and Baron (1988), Belous (1989).

  399. 399.

    Lautsch (2002), Geary (1992).

  400. 400.

    The above studies also provide evidence for heightened levels of conflict between regular workers and managers as a result of failure to delineate regular and casual worker functions.

  401. 401.

    Lautsch (2002).

  402. 402.

    Connelly and Gallagher (2004).

  403. 403.

    American management association (1995, p. 4).

  404. 404.

    Kalleberg (2008, p. 35).

  405. 405.

    Hunter et al. (1993, p. 402).

  406. 406.

    Kalleberg (2008).

  407. 407.

    E.g., Isaksson and Bellagh (2002).

  408. 408.

    Geary (1992, p. 261).

  409. 409.

    The casual worker employment system relates to Hendry's market system (2000, 2003), Rousseau's independent contractors/temporaries (1995), Lepak and Snell's contractual work arrangements (1999, 2002), Osterman's secondary subsystems (1982, 1984, 1987, 1988), Lawrence's market system (1985), Doeringer and Piore's external labor markets (1971), and Kerr's structureless labor markets (1954).

  410. 410.

    Professional contingent workers may also be hired on the basis of a temporary employment contract. They are mostly hired based on service contracts, though. For the sake of simplicity, they are generally referred to as professional contractors in the following.

  411. 411.

    Mangum et al. (1985).

  412. 412.

    Matusik and Hill (1998, p. 680).

  413. 413.

    Mangum et al. (1985).

  414. 414.

    Matusik and Hill (1998).

  415. 415.

    Ang and Slaughter (2001, p.322).

  416. 416.

    Even software development companies such as Microsoft use specialized contractors in the testing and debugging phase of their product development process (Cusumano and Selby, 1995).

  417. 417.

    Matusik and Hill (1998, p.681).

  418. 418.

    Cf. Cappelli and Neumark (2004), Davis-Blake et al. (2003).

  419. 419.

    Harrison and Kelley (1993), Matusik and Hill (1998).

  420. 420.

    Marler et al. (2002).

  421. 421.

    Matusik and Hill (1998, p.686).

  422. 422.

    Cf. Kieser and Wellstein (2008).

  423. 423.

    Matusik and Hill (1998, p.685).

  424. 424.

    Christensen (1991).

  425. 425.

    Matusik and Hill (1998), Saxenian (1990).

  426. 426.

    Matusik and Hill (1998), Piore and Sabel (1984).

  427. 427.

    Matusik and Hill (1998), Saxenian (1989).

  428. 428.

    Handy (1990).

  429. 429.

    Krausz et al. (1995), Marler et al. (2002), Arthur and Rousseau (1996).

  430. 430.

    Matusik and Hill (1998, p. 686).

  431. 431.

    Matusik and Hill (1998).

  432. 432.

    Marler et al. (2002).

  433. 433.

    Thorpe and Florence (1999), Chamber of commerce of the United States (1991). When hiring certain professionals such as management consultants through business service organizations, fees must be paid sometimes far in excess of the wages paid to regular employees. One must take into account, though, that the fees do not only cover the wages of the contracted professionals but also overhead costs for their administration (e.g., costs of recruitment and selection, development, and pay administration), office space, and the contracted firm's accumulated knowledge which is accessed through the contracted professional. Moreover, their wages must be compared to those of regular staff possessing the same level of up-to-date expertise as the contractor.

  434. 434.

    Becker (1992), Baker and Aldrich (1996), Marler et al. (2002).

  435. 435.

    Tolbert (1996).

  436. 436.

    Kissler (1994).

  437. 437.

    Marler et al. (2002, p. 430), cf. Kanter (1989), Bridges (1995), Mirvis and Hall (1996).

  438. 438.

    Rogers (2000), Marler et al. (2002), Steinberg (1994).

  439. 439.

    Howe (1986).

  440. 440.

    Pfeffer and Baron (1988).

  441. 441.

    Ibid., p. 279.

  442. 442.

    Marler et al. (2002, p. 429).

  443. 443.

    Cf. Zuboff (1988).

  444. 444.

    Kissler (1994).

  445. 445.

    Mallon and Duberley (2000).

  446. 446.

    Ibid., p. 38.

  447. 447.

    Ang and Slaughter (2001, p. 342).

  448. 448.

    Ibid.

  449. 449.

    Pearce (1993).

  450. 450.

    Ibid., p. 1093.

  451. 451.

    Ibid., p. 1086.

  452. 452.

    Ibid., p. 1093.

  453. 453.

    Ang and Slaughter (2001).

  454. 454.

    Ang and Slaughter (2001), Gallagher and McLeanParks (2001), Defillippi and Arthur (1994).

  455. 455.

    Marler et al. (2002, p. 447).

  456. 456.

    Parker et al. (2002, p. 715).

  457. 457.

    Previous publications on ILM theory referred to this staff category as networked/guest workers (Rousseau, 1985) and alliances/partnerships (Lepak and Snell, 1999, 2002).

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(2009). Workforce Functions. In: Krausert, A. (eds) Performance Management for Different Employee Groups. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2197-0_2

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