Sheehan, Ramsay Patrick - Transcending - Boundaries, 2000

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS I
TRANSCENDING BOUNDARIES:
INTEGRATING PEOPLE , PROCESSES AND SYSTEMS
Hosted by: The School of Management
GRIFFITH UNIVERSITY
Proceedings of the 2000 Conference
Brisbane, Queensland, Australia
6-8th September 2000
Edited by:
Michael Sheehan, Sheryl Ramsay & Jeff Patrick
Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University
II
T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE, P ROCESSES AND SYSTEMS
Publisher:
The School of Management, Griffith University, Nathan, Qld.
Telephone: +61 (07) 3875 6574
Fax: +61 (07) 3875 3887
ISBN 0 86857 992 0
2000 School of Management, Griffith University and individual authors. All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or otherwise, without the written permission
of the publisher and/or individual authors.
TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS III
INTRODUCTION OF THE PROCEEDINGS

Welcome to the 2nd annual conference of the International Association of Insight and Action, which is again
proudly hosted this year by the School of Management at Griffith University. This conference continues the aims
and philosophy of our first conference held at the Logan Campus of Griffith University in 1999. The organising
committee believes and trusts that we have maintained the high standard of last years conference and that we
have integrated elements of the feedback received from delegates to that conference so that this conference will
be the new, improved model. This is a noble intention in an environment of continuous improvement.
This conference brings together a number of International researchers, academics and practitioners in a way that
provides a point of departure from the conventional themes generally structured into management, organisational
behaviour, and information systems conferences. The theme of transcending boundaries has been selected to
reflect several orientations that will help build future viable and productive workplaces. There are a number of
significant developments occurring in organisational and management practice and support systems. This
conference invites papers that integrate people, processes and systems to create business and community value
through excellence and innovation.
Contemporary trends to globalisation, the recent emergence and subsequent growth of the Internet, the
extraordinary development, and sometimes just as extraordinary demise, of dot-com companies, combined with
technological, economic, and organisational change ensure that the workplace is a rapidly changing and dynamic
environment. Or at least, ought to be. An argument exists that the aforementioned factors combine to create
chaotic organisations in which new ways of thinking, creating, innovating, and problem-solving are paramount
to the continued existence of the organisation. But we also know that the changes necessary for continued
existence are often painful, and that in the past, many organisations have followed models of change that have
not necessarily contributed to productivity improvement in the long term, and that have left many organisational
members alienated and disillusioned. We are also aware of the impact of organisational change on our
communities, especially those in the rural sector.
Our view is that there are better ways to develop and improve organisations, and to build sustainable and
productive workplaces that benefit the organisation, individuals and society. The theme of transcending
boundaries: integrating people, processes and systems has been selected for this conference to reflect several
orientations that will help build these future viable and productive workplaces. A second aim of the conference is
to move forward, providing practitioners with the latest research findings that will enable them to address
organisational challenges. The conference organising committee believes that our selection of keynote speakers
for this conference provides us with a unique opportunity to achieve these aims.
There are a number of significant developments occurring in organisational and management practice and in our
understanding of those practices. This conference presents papers that advance understanding and challenge
orthodoxy as a forum for seeking ways forward to more productive and effective workplaces. This document
contains papers that will be presented during the conference.
The aim for the papers has been to present high quality work. To achieve this aim, all manuscripts submitted to
the conference organising committee have undergone a rigorous reviewing process. The papers were gathered in
the traditional way, by sending out a call for papers. The call was sent via the World Wide Web. We had five
themes we envisaged being addressed, namely Change and Development, Culture, Information Systems,
Organisations and Society, and Vital People, Viable Workplaces. The papers that we received were located
within each of these themes.
We received more than seventy papers, and the wealth of choice we had in selecting papers for the conference is
a sure sign that we are not alone in our vision of building better organisations. The papers have been streamed
into the aforementioned themes as per the conference program.
We are also able to present a number of workshops at this conference. All our keynote speakers have agreed to
present a workshop in addition to their keynote address and we thank them for their generous response to our
request. We envisaged the workshops as helping to bring to life some of the theoretical and empirical research
presented during the conference for those delegates in attendance who seek a practical focus within the
conference. We also believe that the opportunity to meet and work with some of the leading National and
International researchers in their respective fields will allow many of us who do not have the opportunity to
IV
T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE , P ROCESSES AND SYSTEMS
travel overseas to avail ourselves of the expertise of the presenters. Thus we believe that we have a well-rounded
and relevant conference to researchers, academics and practitioners alike.
It is crucial that people in attendance during the three days of the conference continue the focus of the work so
that it becomes applicable in the work-place. One way we intend to further the process is by holding another
conference next year. We call on delegates to this conference to suggest a time and a place for next years
conference, and for volunteers to take on the roles and responsibilities of an organising committee.
One major challenge for us this year was to improve the quality of the conference while working within
budgetary limitations. We have endeavoured to offer quality content, leading National and International
researchers and a quality conference facility as competitively as possible. We have been assisted in this
endeavour with the generous support of the School of Management at Griffith University and I would like to
thank the previous Head of School, Professor David Brown and the incumbent Head of School, Dr Bradley
Bowden for their on-going commitment to the conference. I would also like to thank our sponsors, Pearson
Education for their support.
The events of these three days are the culmination of work that began in May 1999. I would like to thank the
members of the organising committee, namely Michelle Barker, Campbell Fraser, Jeff Patrick, Sheryl Ramsay,
Louis Sanzogni, Deanne Trouten, David Watson and Peter Woods for their hard work and dedication in bringing
this conference to fruition. A number of other people were also involved at various stages and I thank them for
their efforts. Included are Gill Armitage, Gaylene Best, Tracy Cahill, Adam Cotterill, Helene Dyer, Adam
Moore, Marcia Mulvena-Byriel, Margo Powell, Lorraine Stokes, Rosemary Young, and Claudia Vaida. I also
thank staff from Griffith University s External Relations unit for their assistance in the latter stages of the
conference planning.
We trust that you will enjoy a thoroughly professional, informative, valuable and enjoyable three days and we
look forward to seeing you again next year.
Dr Michael Sheehan
Chair Conference Organising Committee
Phone: +61 7 3875 7456
Fax: +61 7 3875 3887
Email: MichaelS@ORGO.GU.EDU.AU
TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS V
PREFACE
Transcending Boundaries: Integrating People, Processes and Systems
Conference Review Process
All manuscripts submitted to this conference were submitted as full papers. Identifying features such as names,
organisational affiliation and address for correspondence were removed from the papers and the papers were
then forwarded to two reviewers as part of an independent double blind review process. The organising
committee rejected some papers during this process, with most papers requiring revisions before receiving final
acceptance. There are a total of 63 papers in this edition, including 7 keynote addresses. One keynote speaker
was unable to offer a paper in time for inclusion in the proceedings. Of the total number of papers, 21 are
International submissions. We thank the authors for their high quality work and for their perseverance during the
review and final acceptance process, including the professional and timely manner in which the authors
addressed their reviews. This has resulted in a final collection of high quality papers of both National and
International significance that appear in these proceedings.
The papers are arranged in alphabetical order according to the first authors last name.
I also wish to thank the National and International reviewers, acknowledged experts in their field, for their
participation in this event. 37 reviewers participated in the review process, 6 of who were from overseas. Their
names and organisational affiliation appear below, and are arranged in alphabetical order according to the
reviewers last name.
Michael Sheehan, Sheryl Ramsay and Jeff Patrick

Editors
Further copies of these proceedings are available for sale at a price of $60 AUD (within Australia) and $65 AUD
(overseas) including postage and handling from:
The Secretary
School of Management
Griffith University
Brisbane 4111
Queensland
Australia
Tel:
Fax:
+61 7 3875 6574

+61 7 3875 3887
Please make cheque payable to Griffith University or provide credit card details.
VI
Reviewers
Ass Prof Michelle Barker
Griffith University
Ms Lorraine Stokes
Griffith University
Dr. Campbell Fraser

Griffith University
Dr Mohan Thite
Griffith University
Dr Monika Henderson
Consultant
Dr Liz Jones
Griffith University
Helge Hoel
University of Mancheste
Institute of Science and Technology
Mr Peter Woods
Griffith University
Mr Duncan Lewis
University of Glamorgan
Mr Paul McCarthy
Griffith University
Dr Jeff Patrick
Griffith University
Andy Liefooghe
Roehampton Institute London
Ms Sheryl Ramsay
Griffith University
Dr Peter Randall
University of Hull
Dr Charlotte Rayner
Staffordshire University Business School
Dr Michael Sheehan
Griffith University
Dr Bradley Bowden
Griffith University
Dr Lisa Bradley
Queensland University of Technology
Ms Jodee Drew
Mr Peter Jordan
Griffith University
Mr Jeff Miller
Griffith University
Mr Arthur Poropat
Griffith University
Ms Kerry Maberley
Griffith University
Dr Ashlea Troth
Griffith University
Dr Anna Zarkada-Fraser
Mr S. Dann
Griffith University
Mr P. Dutton
Griffith University
Dr P. Green
University of Queensland
Ms A. Greenhill
Griffith University
Dr D. Kerr
Griffith University
Dr P. Ledington
University of the Sunshine Coast
Ms J. Ledington
University of the Sunshine Coast
Mr M. Reardon
Griffith University
Prof M. Salner
University of Illinois
Dr L. Sanzogni
Griffith University
Mr D. Watson
Griffith University
Ms H. Winklhofer
Griffith University
TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS VII
Conference Sponsors
The International Association of Insight and Action would like to acknowledge and thank the major sponsors of
the 2nd annual conference of the Association, the School of Management, Griffith University for their generous
support.
Thanks also to the Beyond Bullying Association Inc., Noa Davenport, co-author of the book Mobbing:
Emotiional Abuse in the American Workplace and Pearson Education for their support.
VIII
Table of Contents
Keynote papers
The Impact of the parasite economy on corporate overhead................................................................................................................1
The discipline of information systems: Boundaries crossed, boundaries pushed ...................................................................................1
Bullying and harassment at work: Unveiling an organizational taboo .................................................................................................7
Toward organizational maturation: Active witnessing for prejudice reduction....................................................................................14
Workplace bullying - A case of moral panic?...................................................................................................................................20
Building a business case for tackling bullying in the workplace: Beyond a basic cost-benefit approach................................................31
Cooperation and competition as effective organizational partners......................................................................................................37
Using the life review method for expanding the boundaries of career exploration...............................................................................40
Conference papers
Technological knowledge base as users power in negotiating ICT-systems........................................................................................44
Management implications for decision support systems in South Africa.............................................................................................52
Task and emotional conflict in culturally heterogeneous workgroups: Leader and member responses..................................................60
Transcending boundaries: Issues of self and identity for Chinese students.........................................................................................68
Bully or advocate? Reflections on the lawyer-client relationship .......................................................................................................75
Productivity improvement, declining union influence and price deflation: The Australian coal industry and workplace reform since 1997
.....................................................................................................................................................................................................83
Differences in levels of emotional exhaustion in women police officers related to interactions of supervisor and coworker support........91
Learning as change and change as learning: Re-educating the HR manager for the future ................................................................98
Push and pull factors influencing IT staff turnover........................................................................................................................ 106
E-marketing strategies: A case study of a Hong Kong bank ............................................................................................................ 111
A survey of methods justifying capital expenditures in high technology in New Zealand ................................................................... 117
Comparing the nature of workplace bullying in two European countries: Portugal and UK .............................................................. 128
The views of managers and recruitment specialists in relation to migrants opportunities in recruitment and selection processes in
Australia ..................................................................................................................................................................................... 134
The identification of key leverage variables impacting positive staff attitudes ................................................................................... 141
Privacy in the information age: Direct marketing on the Internet.................................................................................................... 149
Popular search engines: How successful are they in leading new customers to your ebusiness? ........................................................ 155
Firm direction, clear boundaries and minimal controls: Managing student information technology projects in rapidly changing times160
Does task and contextual performance measurement apply across cultures? An empirical study of Thai and western managers and
professionals ............................................................................................................................................................................... 166
Research and development in the Japanese construction industry ................................................................................................... 173
Internet brand creation in global markets: The case for a logistical panacea.................................................................................... 179
Business confidence Logan City where to from here? .................................................................................................................. 184
Interaction in the public interest: Regulating new communications technologies to deliver public interest information services........... 187
Bullying at work: The role of work environment quality ................................................................................................................ 194
Stress and managerial bullying: Affective antecedents and consequences ........................................................................................ 201
High Performing Work Teams: Does emotional intelligence matter?............................................................................................... 208
Application of the principles of knowledge based system development for dairy farmers to other small businesses .............................. 215
The evidence for high performance HRM systems in professional service firms................................................................................ 220
Path models of the relationship between role overload, role ambiguity, sources of support and emotional exhaustion in women police 227
Re-theorising the university as an unfamiliar culture: Consequences and responses for the increasing diversity of the student body .... 233
Corporate volunteering: A cross-perceptual study .......................................................................................................................... 243
The ExcelL Program for International Students ............................................................................................................................ 250
Effects of occupational stressors on depressive symptoms during organisational restructuring.......................................................... 256
Sources of stress and strategies for intervention during organisational change in a hospital environment.......................................... 261
TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS IX

Employee adjustment during organisational change: Differences between occupational groups in a hospital environment ................. 267
The bully-victim at work............................................................................................................................................................... 272
Does marital status matter? A study of employee selection............................................................................................................. 278
The tall poppy syndrome in New Zealand: An exploratory investigation........................................................................................... 285
Fairness of performance feedback and its impact on perceived ability.............................................................................................. 290
Improving confidence and accuracy in performance appraisals ...................................................................................................... 295
Childrens ethnic prejudice: A comparison of approaches.............................................................................................................. 302
Knowledge management: Lessons learned from an early implementer............................................................................................. 310
Born to lead: Evidence of a biological predisposition for transformational leadership?..................................................................... 315
What causes small businesses to fail: The hidden role of psycho-social factors................................................................................. 321
Comparing apples with oranges: Teaching and the issue of incommensurability in organisational studies ........................................ 325
Emotional stability and attributional style: Relationship and implications for research and practice ................................................. 330
The contribution of a cross-cultural adjustment framework to work-role transitions........................................................................ 336
Skills, training and workforce bargaining The implications of Australian workplace agreements.................................................... 343
Management practice and employee mental health An occupational safety perspective .................................................................. 347
Adult victims profiles .................................................................................................................................................................. 354
Analysing metaphors used by victims of workplace bullying............................................................................................................ 360
Culture and production efficiency................................................................................................................................................. 368
Transcending boundaries and transforming industrial relations in the meat processing industry of Queensland: A case study from the
1990s .......................................................................................................................................................................................... 374
Career management in the new economy: Surfing the turbulent waves of change ............................................................................ 381
Attachment links to team functioning and leadership behaviour...................................................................................................... 385
Linking people, business and technology - The effectiveness of system development methodologies ................................................... 393
Training of Australian expatriates for management in SE Asia....................................................................................................... 401
Strategies of national technology management in building up a knowledge-based economy - The case of Singapore........................... 408
Facing the challenge of social purpose enterprises: The strategy of a Bangla-deshi NGO in combining social and economic benefit ... 417
TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS 1
The Impact of the parasite economy on corporate overhead

Kevin Burgess
General Manager Supply - QR (formerly Queensland Rail)
Abstract
This paper explores what drives the parasite
economy, and the impact it has had on escalating
costs at the level of the corporation and firm. The
relevance of reporting measures used by firms to
deal with such complexities are examined and found
wanting especially from a strategic perspective.
Possible remedies are offered to reduce the impact
of cost drivers including an alternate measurement
system, integrated management systems, and better
use of human resource systems.
Keywords
Capitalism,
EBusiness,
Firm,
Integrated
Management, Intangible Assets, Lawyers, Lobbying,
Knowledge Parasite Economy, Triple Bottom Line.
Introduction
this paper explores macro issues, which are affecting
the competitive position of many modern
corporations. It is therefore largely theoretical in
nature based on the observations of a practitioner
working in a large corporation, operating in
commercial markets. As no rigorous research
methodology has been applied and the paper is
largely theoretical, results are not applicable.
However the paper does offer an analysis of some of
the issues, which are driving up corporate costs and
suggests possible areas for further research.
Evidence of the Parasite Economy

Under a free market economy it is fundamental to
administer a system which determines property
rights and protection of such rights.
These
administrative matters get factored into the
transaction costs and are generally considered
essential if resources are to be allocated efficiently.
Transactions costs are part of production and get
recorded into gross national product. Economists
from the University of Nebraska, Messrs Fuess and
van den Berg (1992) conducted an analysis to
determine if over time it cost more to deliver the
same output due to a rise in transaction costs. Their
findings based on the US economy over four
decades (1950 1990) were that transaction
activities grew considerably faster than nontransaction output. In other words national income
and product statistics were overstating the

improvement in average living standards. When
transaction costs were excluded the annual growth
rate per head fell from 2.08% to 1.85%.
It is such reductions in annual growth, which
constitute the parasite economy. The two most
common causes attributed to such an economy are:
Exploding legal complexity i.e. more laws and

lawyers
Lobbyists of all kinds e.g. trade associations,

special interest groups, public relations, and of
course paid political lobbyists.
Legal System
Stephen Magee (1990) of the University of West
Texas used regression analysis to determine whether
there is any correlation between the concentration of
lawyers in any given country and that countrys rate
of economic growth. His findings suggested that the
US for instance only needed 60% of the lawyers it
presently had. Or to put it in more precise economic
terms the creation of every lawyer in the US above
60% equated with the destruction of $2.5.m of GDP.
Commentators on the US system such as Magee and
on the Australian system such as Whitton (1989)
tend to draw similar conclusions. Specifically the
apparent cohesion between lawyers and political
processes and lobbyists creates a systemic bias,
which creates considerably more unnecessary costs
for the wider community. English speaking
countries, which follow common law, seem
especially prone to such cost escalations.
Evidence offered to support this view is that in many
countries throughout the world the legal profession
tends to have a disproportionate number of
representatives in parliaments and legislative bodies.
This is especially so for those countries which
followed a common law adversarial system
including Australia. For example in the US, 42 % of
the House of Representatives and 62% of the Senate
are trained as lawyers (Magee). Australian trends
while not as severe still tend to be following those of
the US (Whiton: 1996). Former President Richard
Nixon (himself a lawyer) perhaps best captured the
essence of such concerns of fusing politics and law
with his quip: If the President does it, that means it
is not illegal (Harris :2000)
2 TRANSCENDING BOUNDARIES: I NTEGRATING P EOPLE , P ROCESSES AND SYSTEMS
The notion that lawyers like any profession will seek

to build structures to protect themselves and create
wealth at the expense of others is not new. Charles
Dickens noted in Bleak House that The one great
principle of the English law is to make business for
itself. Adam Smith did not think of lawyers as a
productive part of the capitalist economy when he
classed them among the most frivolous
professions such as players, buffoons, musicians
and opera-singers (The Wealth of Nations, 1776).
Knock on effects from administering law produces
another massive cost. For instance it is estimated
that the US private sector in 1990 spent $5 billion
hours filling in paper work just to comply with
government regulations. The total administrative
costs of legal compliance with US federal legislation
are estimated to equate to $392m p.a. or $4000 per
household.
Australia is also confronting escalating legal costs.
The Australian Law Reform Commission Report
(1999) on legal costs states that the costs for funding
federal courts, review tribunals and the Australian
Industrial Relations Commission is $350 million.
When state jurisdictions and associated legal costs
such as representation, seeking advice in order to
avoid courts, and the cost of administering acts are
factored in, the costs of the entire legal system per
annum escalates to the billions.
international consulting firm Mercer has studied

transport policies in several countries around the
world. His conclusion is that the road lobby in all
cases has obtained disproportionately higher funding
at the expense of rail.
A long history of government ownership of rail
systems and therefore reluctance to publicly criticize
government may account for the ineffective
lobbying within Australia. The economic case
justifying investment in rail has been well
established by the following four Federal sponsored
reports:
1995 - National Transport Planning Task Force

- a bipartisan Federal inquiry into the role of rail
in Australias national transport network
1998 Tracking Australia another

bipartisan Federal study into the national
transport system
1999 Revitalising Rail a report to the

Prime Minister on the Rail Projects Task Force
1999 Progress in Rail Reform

commissioned by the Productivity Commission.
Numerous other sectors of the Australian economy
could make similar claims of economic distortions.
How many of these distortions are due to the
influence of lobbyists is a difficult topic to research
given the private and personal nature of the industry,
and the difficulty of assessing directly the impact of
such activities upon decision makers.
Lobbyists
US figures reveal that paid lobbyists grew from 365
in 1960 to 40,111 or 400 for each senator by 1992
(Economist: 1992). The growth of such an industry
suggests that wealthy vested interests pay
considerable money to influence legislative
processes. Even special interest groups without
considerable wealth can use a variety of processes,
including gaining media attention to hijack the
political agenda. The concentration of media
ownership into big business and reliance upon other
big businesses for advertising revenue raises
considerable doubt about the ability of the media to
inform the public in the impartial manner needed for
a democratic society and free market to work
effectively. The recent Cash for Comments
incident revealed radio personalities (journalists?)
such as John Laws and Alan Jones were paid
millions of dollars for passing favourable opinions
on products and services. Such incidents highlight
how far-spread lobbyist activists have progressed
and the difficulties in detection.
Industries that are already unfairly disadvantaged by

market distortions due to the activities of lobbyists
have to invest heavily in corporate relations type
activities to both counter, and actively engage in,
lobbying.
Australian transport provides a clear example of

distortions in the distribution of resources. Over the
past 25 years government invested $40 billion in
road compared to $2 billion in rail (Van Onselen,
2000). Alan Kaulback (2000) a vice-president of the
Political economic theory

At this level of analysis a Marxist concept of
parasite would differ considerably to that of a
capitalist. Examination of ideological variation is
outside the scope of this paper. To simplify
Consequences
Consequences of the actions outlined in 2.1. and 2.2.
are very large increases in corporate overheads.
Such costs then either erode profit to the point of
unsustainably or are passed onto consumers.
Difficulties of Definition
US economists who have researched this issue tend
to take a rather ethnocentric view of what constitutes
a parasite economy. Such oversimplification ignores
that the term parasite economy draws together
three distinct and quite complex concepts:
Political economics
Variations of capitalism
The firm
discussion this paper will progress within the

framework of a capitalistic society. Such differences
do highlight that despite the efforts to date to present
economics as a science dealing in absolute truths, its
theoretical foundations are essentially ideological.
Capitalism
The many systems within capitalism again tend to
generate different views on what is parasitic as
opposed to value adding. The following four
regional based examples highlight some of the
differences:
Anglo-American model - the interests of the

shareholders are central, management is
controlled by various mechanisms that act for
the shareholders, and the model is based on an
individualistic value system in which the
interests of risk capital are central.
Social market/continental model (e.g. Germany)
- the interests of principal stakeholders
(shareholders and employees) are central. As a
result the stock market has less influence than in
the Anglo-American model.
State capitalism (e.g. France) - is similar in
some respects to the social market model but
differs in that labour unions and employer
associations are not involved in strategic
decision making. An elite comprising of
politicians, bureaucracy, and management of
large firms tend to control the economy.
Japanese model
- a broader range of
stakeholders
(shareholders,
employees,
suppliers, customers, and business groups) have
control of the firm. Transactions are largely
internalised i.e. within or between firms rather
than in open markets. All models have strengths
and weaknesses (Burton Jones:1999:26).
Each of the above positions generates its own

definition of what constitutes a parasite economy.
The Firm
Introducing the concept of the firm raises another
layer of complexity as no single unified theory of
the firm yet exists (Burton-Jones, p.26). Dominant
theories propounded include transaction cost
economies, agency theory, resources-based theory
and emerging knowledge-based theories. A detailed
exploration of these theories is outside the scope of
this paper. For expediency the view is taken that
over the last couple of centuries most productive
activities have gravitated from the market to the
firm. Therefore to date, the firm appears to have
consistently offered some sustainable advantage in
interacting with the market. Whether this situation
remains the position for the future is dubious, as
firms will be exposed to vastly different dynamics
that will in turn alter the nature of governance
structures.
Inadequacy of Narrow Economic Measures

Definitions for the Australian situation can be
simplified by accepting that most firms operate
within an Anglo-American model and they that they
have an aspiration (if not actual) bias for financial
measures consistent with transaction cost economies
theory. However even this narrowing of the debate
does little to assist in the generation of appropriate
measures for the reasons to be outlined.
For well over a centaury a simple measure for the
success of a firm has been shareholder wealth. The
robustness and relevance of this view is increasingly
under attack for being too narrow (Estes: 1996). At
the wider societal level the adequacy of counting
methods, which omit inclusion of fundamental
human activities such as child rearing, and food
preparation, let alone the contribution of the
volunteer economy is coming under increasing
criticism. Closure of firms in regional locations
such as BHPs withdrawal from Newcastle to
increase shareholder wealth created considerable
adverse community reaction. At the level of the firm
a different form of criticism has been emerging
around inadequate measures for key emerging issues
such as the knowledge economy and the increasing
importance of intangible assets - corporate image,
firm specific systems and knowledge workers
(Myers: 1996). Finally the environmental lobby has
been highly critical of the logic of limitless growth
that runs contrary to our present knowledge of
systems theory. (Hawken et. al. 1999).
Corporate Image
The strategic asset of firms such as Coca-Cola and
Nike is their corporate image. Any damage to this
image can result rapidly in reduced sales. Nike is
presently struggling to explain the position it has
taken in respect to ensuring humane work conditions
for the work force of its suppliers. At the other
extreme companies such as the Body Shop actively
promote social responsibility as a means of
enhancing corporate image with the public and
overall performance. In short whether it is managed
poorly or well, corporate image is worth a lot to the
bottom line. (Shenkar, et.al: 1997)
Customers
The approach to customer handling is being
transformed by developments in relationship
marketing theory, which has highlighted that
delivering high customer satisfaction does not
produce loyalty. Rather concepts such as trust and
ethics and value alignment determine how loyal
customers will remain. Increasingly firms are
deploying customer loyalty in lieu of customer
satisfaction strategies. Such developments are
challenging many economic assumptions.
For
example that scarce resources attract higher prices,

whereas a relationship approach would suggest such
scarcity results in resentment and customer loss
(Wrennall: 2000). Social networks become
increasing important assets under a relationship
marketing approach and again economic theory has
not been able to develop adequate measures for such
situations (Granovetter: 1985). The danger of
present measurement systems is that vital strategic
intangible assets will be treated as overheads due to
weaknesses in financial measurement systems. As
yet no generic or industry measures exist to assist in
managing such assets.
Safety
Safety is perhaps the exception to the absence of
generic measures. Occupational Health and Safety
legislation combined with hefty penalties has done a
lot to ensure firms treat their workforce in
responsible ways. Centralised reporting to
government agencies has helped standardise
measures. The results overall suggest such
legislation has been effective in ensuring workers
receive better protection. What is less clear is if
globalisation has provided a simple way around such
legislative requirements and as a result is creating a
more flattering result than might be the case. The
administrative process around safety management
systems are often criticised for producing paper
perfect systems (to meet the needs of courts and
bureaucrats) but far less on the ground.
Knowledge
Of greatest concern to industry is the lack of
measures around the knowledge economy and
knowledge workers. The knowledge economy is
challenging many of the assumptions of economics.
As Stewart (1997:176) points out:
Information differs from cash, natural resources,
labour and machinery. First knowledge is what
economists call a public good. Thats jargon
meaning that knowledge can be used without being
consumed. It is non subtractive: my obtaining a
piece of knowledge in no way diminishes your ability
to obtain it, too.
Businesses that are knowledge intensive are coming
to realise that what is not on the balance sheet is
more important than what is (Stewart. p.15).
Australia may lag in pursuing the knowledge
economy as World Bank statistics suggest that 80%
($US668,000 per capita) of Australias productive
wealth comes from its natural physical resources,
land, minerals, primary produce only 20%
($US167,000 per capita) from knowledge and skills.
The Japanese economy produces 80% ($US 452,000
per capita) from knowledge and skills.
As the narrow commodity base of the Australian

economy leaves it vulnerable, pursuing the
knowledge economy is critical to national wealth
creation. The Australian Industries Champion Group
(2000) commissioned a study on Strategic Direction
and Industry Coordination. It concluded that there
is very limited scope for Australian companies to
compete on the basis of lowest cost commodity
items. Instead it concluded that Australia would
have to compete on the basis of quality, service and
reputation and that innovation and training would be
the key strategic competitive advantages. Present
accounting treatments which treat training as a cost
do little to encourage the development of an
intellectual infrastructure which the report says
Australia is sadly lacking.
Environment
The damage done to corporate reputation and bottom
lines due to failures in this area are well appreciated
and no firm can fail to ignore it from either a legal or
corporate relations perspective.
Triple Bottom Line
A detailed critique of the various measurement
systems is far too complex to introduce within this
paper. The point to be made is that most systems
fail to address the issues, which modern corporations
are facing. The emerging paradigm of the triple
bottom line conceptually at least offers a way
forward by acknowledging such issues. Accurate
measures of such issues are yet to be developed.
The triple bottom line approach will be used as the
starting point by which to measure a firms success.
This approach acknowledges that the firm has to
manage the interaction between economic, social
and ecological issues. In short the strategic analysis
conducted by a firm considers stakeholders
(shareholders, customers, staff, suppliers and the
community) as distinct from just shareholders
(Fombrun:1995). Such a view is hardly radical as
many leading industrialists such as Electrolux and
DuPont have taken to the idea that the best way to
be nice to your shareholders is to be nice to your
workers and your environment too (Carr: 2000).
A pragmatic justification for such an approach is
that it seems inevitable that the emerging models of
corporate governance will result in all boards
reporting on the triple bottom line. For example in
1998 paragraph 299(1)(f) was inserted in the
Corporations Law by the Company Law Review Act
1998. This paragraph stated that if an entitys
operations are subject to any particular and
significant environmental regulation under a law of
the Commonwealth or of a state or Territory, then
the directors report for a financial year must include
details of the entitys performance in relation to
environmental regulation.
The Government
indicated it opposed the amendment and

subsequently referred the matter to a Parliamentary
Joint Review Committee. Forty-six submissions
were received of which forty were against the
inclusion of this paragraph. Having considered the
arguments the Parliamentary Joint Committee
Review recommended that paragraph 299(1)(f) be
deleted. (Rofe: 2000).
Despite this specific outcome, which resulted in the
exclusion of the amendment, the trend towards
greater accountabilities is relentless. Whether or not
such issues sit directly under Corporations Law is of
little consequence as Board members are already
accountable for legislation such as safety and
environment. Therefore it makes strategic sense for
companies to position reporting structures and
strategies around a triple bottom line approach.
The impact of the parasite economy upon corporate
overhead is thus defined as one, which robs the firm
of delivering an optimal outcome from the following
three measures (triple bottom line):
The commercial position of the firm
The social position of the firm both internally

and externally
The environmental position of the firm

Note the deliberate use of the word optimal as
opposed to maximized. It is generally only possible
to maximize one variable at a time and if this is done
it will be at the expense of the other two. An optimal
outcome by contrast requires a trade off between all
three variables.
Impact on Corporate Overhead

In an era of cost reduction the first place
organisational review focus on is corporate
overhead. No universal definition exists for what
constitutes such overhead. This in part is due to
differences on how to classify processes and the
workers involved in them. The notion of direct and
indirect is weak as waste can often be with direct
components. The process approach, which looks at
value adding along a chain, is more useful for
highlighting unnecessary activities.
a) Measurement As stated the exclusive bottom
line focus works against important processes such as
the creation of knowledge. The introduction of the
balanced scorecard is promising but to date the
evidence is that there is little balance as the
financials are given greatest weighting. The dilemma
is how to move this narrow focus, which encourages
short-term thinking in a drive to maximise profit
(Estes: 1996). There is an overwhelming need to
develop measures, which consider the intangible
assets of a firm. Failure to do so will accelerate the
present trends of destroying knowledge creation
investment due to a misguided view of reducing

corporate overhead. In short, the inadequacy of our
economic and financial measures is part of the
parasite economy.
b) Legal - Modern corporations such as QR operate
with several hundred legislative acts. The legislative
avalanche that increases corporate overheads is
consistently growing each year and shows no sign of
relenting. QR also has commercial overseas dealings
and each country has its own complex legal system.
For example QR had some recent dealings in China.
QR was compelled to comply with 150 pieces of
relevant legislation at the national level as well as
numerous laws unique to the local economic zones.
The result of such increasing legal complexity is
increasing numbers of lawyers working for the firm.
This in turn creates the need for other firms to hire
lawyers to protect themselves from lawyers
employed by the other firm. Some firms in the food
industry within Australia now refer all customer
complaints to their legal advisors before responding
for fear of litigation. Such fear again increases the
need for lawyers, drives up corporate overheads and
flies in the face of the customer relationship
marketing literature, which stresses the importance
of creating direct relationships between the
organisation and the customer.
The majority of individual pieces of legislation
require separate resources to administer them i.e.
translating them into corporate policies and
procedures, implementation, reporting, monitoring
and auditing. For example in large corporations
such as QR separate organisational units exist to
administer such legislation. Compliance demands
generated by such units often frustrates customer
service groups who tend to feel they spend more
time servicing internal processes rather than
customers. The distinct requirements of each piece
of legislation generates further complexity, which in
turn further distracts front line staff from their
primary purpose. Such activities drive up overheads.
To meet compliance requirements while reducing
overheads, firms are forced to cut into intangible
assets.
Intellectual property rights are often given as
examples of how legal processes are meeting the
forward challenges of a knowledge economy. This
has some merit e.g. Honeywell was able to claim
over $100m from camera manufactures for an auto
focus lens technology which they developed for a
military application. (Garner:2000).
However
knowledge is both explicit (that which can be made
known for legal purposes and tacit (that which
people can do but cannot necessarily tell you how
they do it). Tacit knowledge represents the bulk of
knowledge for most firms and is the source of
sustainable competitive advantage. Legal processes
have no clear way of recognizing that which cannot

be made explicit (Burton-Jones).
So the
contribution to knowledge creation is very limited.
The costs of registering and keeping patents versus
the benefits gained are also an area many firms are
questioning.
c) Inhibiting Innovation Boards discharge two
major responsibilities, compliance and strategy. The
present legislative framework has very severe
penalties for directors who do not comply and is far
less proscriptive on strategy. The same situation
applies down the management tree where there are
considerable penalties for non- compliance. This in
turn encourages risk averse behaviours. In areas
such as safety this is a highly desirable outcome.
However
the
evidence
on
innovation
overwhelmingly supports the view that risk taking is
necessary. The recent spectacular success of the
Irish economy is due to creating a tax system that
rewards risk. The second order impact of so many
legislative requirements may therefore be the
destruction of a firms long-term viability (Franks:
2000).
d) Corporate Relations is an area of extreme
growth in modern corporations. Two major forces
drive such growth. Determining the value these
groups add to intangible assets such as corporate
image versus their impact upon corporate overhead
will remain difficult until effective measures are
developed. Such measures would have to include the
contribution made by such staff to brand identity and
customer loyalty. Based on efforts in QR to date to
develop such measures it is clear that considerable
theoretical development still needs to take place.
e) Environmental - there is little evidence to suggest
that the majority of firms would move to
environmental compliance without legislative
imperatives. Certain industries are more impacted by
such legislation than others. For such firms the costs
are considerable and do impact on shareholder profit
expectations. The challenge for these firms is how to
deliver such outcomes for minimal costs. To date
such firms appear to be going down the road of
integrated management systems to reduce overheads
(Refer 5.3.).
Possible ways forward

Legal/Political
While reforms at this level could greatly assist in
reducing overheads the structural forces that drive
such outcomes are unlikely to change in the near
future. The elimination of a level of government
would reduce considerable legal complexity and
costs. For example approval for a childcare centre
requires dealing with three levels of government.
The Lord Mayor of Brisbane, Jim Soorley claims
eliminating States would save the nation at least $4b
per annum. However as such an outcome is

inconceivable the next best option would be
standardisation of State legislation wherever
possible. Global competition suggests there is
enough legal complexity in dealing across national
borders without adding an additional layer of legal
difficulties between states.
Measurement
Present economic and financial measures may have
made sense in an era when resources when plentiful
and people where scarce. Today the exact opposite is
the case and the challenges poised by the knowledge
economy and the need to innovate has highlighted
the inadequate nature of such measures to position a
firm to meet emerging strategic challenges. Of
particular concern is that such measures tend to
define the processes that support intangible assets as
overheads and therefore something to be eliminated.
In short present systems often drive poor
management decision-making.
It is promising that economists are challenging the
contribution made by lawyers and lobbyists. The
findings from such work are one way to put a
compelling challenge forward to the legal/political
processes that drive up overheads.
However
economists also need to challenge their own
assumptions and the validity of the measures they
employ. This is a massive task but the work coming
out of knowledge management is a promising start.
More encouraging is that many firms seem willing
to invest a lot of money into developing such
measures.
Integrated Management System (IMS) (Wong et al.:
1998)
The total quality movement with its emphasis on
process rather than hierarchy combined with
advances in software applications and work flow
technologies provide some hope for reducing, or at
least minimizing the ever increasing cost of
overheads. Even without technology an IMS seeks
to reduce administrivia by ensuring a common
process is used for all compliance activities. Most
work to date has been done in the area of integrating
quality, safety and environment. There is no reason
why all policies could not be delivered via such a
system.
QUT in conjunction with QR are
researching how to better use IMS as a means of
reducing corporate overhead. The findings should
be know by late 2000.
Records Management is becoming increasingly
important for evidentiary purposes. This includes
data and electronic records and emails. QR has
conducted an extensive worldwide search to locate a
records management system based around process
management and knowledge creation. To date no
such system has been found. QR is presently trying
to develop its own in order to reduce costs, enhance

corporate memory and generate greater knowledge.
Human Relationships
Advances in relationship marketing and the
enormous saving produced by supply chain
management highlight that working within trusting
relationships rather than complex legal frameworks
deliver significantly greater productivity benefits.
Because risk management techniques are poor at
assessing such approaches, and legal advice is
always based on a worse case scenario, risk adverse
tendencies tend to dominate. However the supply
chain management literature demonstrates that
moving from away from risk adverse contracts
supported by adversarial processes to performance
based contracts build on mutual goals, and
partnership is on balance a better way to go. This
approach challenges present productivity measures,
which do not tend to cover activities such as
relationship building and outcomes such as trust
(Clinton et.al: 1997.)
EBusiness/Business Process Reengineering (BPR)
BPR has received a poor press largely because the
majority of attempts fail due to cultural issues.
Nonetheless this still represents an excellent
opportunity to stem overheads. Supported by
information technology and tools such as workflow
automation and web capability the very nature of
work as we know it can be transformed by such
technologies. Business to business (B2B) is already
significantly reducing the transactions associated
with procurement (Franks: 2000). Such approaches
work best within an open systems environment.
Legal systems tend to be the beneficiaries of
building walls. It will be interesting to see how
these two forces interact over time, but at present it
would appear the legal system is poorly equipped to
deal with a web-based world.
Conclusion
Corporate overheads will continue to rise in direct
response to the legislative and lobbyist activities of
the parasite economy. The prospect of arresting the
cost drivers at the political/legal level will remain
remote until some generic widely accepted measures
to demonstrate the costs of such activities are
developed.
As such measures sit within an
ideological framework it is difficult to see a swift
resolution of this issue. The triple bottom line offers
the most likely way forward to develop such
measures. The wide interest in knowledge
management is also creating alternate measures. As
such measures and subsequent reforms are not likely
to happens within the foreseeable future the most
pragmatic option open to firms is to develop systems
which can better cope with such demands. To this
end the adoption of an IMS approach supported by
EBusiness and BPR offers considerable hope in
reducing corporate overhead. Developing more trust

in social systems can also be used to reduce
overheads by reducing bureaucratic rigidities and
creating space for more productive outcomes with
suppliers. Clearly the entire topic of the parasite
economy and its impact upon the competitive
position of firms requires more research especially
in light of changing nature of the economy, global
markets and technology.
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Oxford University Press, Oxford.
Clinton, S.R., Closs, D.J., Cooper,M.B., & Goldsby,
T.J. (1997) Council of Logistics Management
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Granovetter, M (1992) Problems of explanation in
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Eccles,R.G., (Eds) Networks and organization:
Structure, form, and action (25 56), Harvard
Business School Press, Boston
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Revolution, Rocky Mountain Institute, Snowmass.
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Champions
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Hole Tariffs and Endogenous Policy Theory,
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ButterworthHeinemann, Oxford
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Corporate
Environmental
Performance
Proceeding form the Corporate Environmental
Reporting and Governance Conference 21
February, Sydney.
Stewart, T.A., (1997) Intellectual Capital: The New
Wealth Of Organizations, Nicholas Brealey
Pub. Ltd., London.
Van Onselen, M., (2000) Background Briefing,
ABC Radio, 23 July, 2000.
Whitton, E., (1998) The Cartel Lawyers and Their
Nine Magic Tricks, Herwick Pty.Ltd., Sydney
Wong, W-E., Ogle, I., & Mansour, P., (1998) Total
Business System: A generic model for the
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business strategies Proceedings Pan Pacific
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2000 pp 18-22. MCB University Press
The discipline of information systems: Boundaries crossed,

boundaries pushed
Dubravka Cecez-Kecmanovic
Faculty of Management, University of Western Sydney
Abstract
In this paper I identify challenges of the evolution of
the idea of Information Systems (IS) and its
implications on IS as a discipline. From the first
computer applications that automated routine,
repetitive tasks, till todays comprehensive IS, such
as those SAP-based, and groupware systems that
mediate communication, the concept of IS has come
a long way. Gradually, IS have penetrated into all
types of organisational activities and human
interaction processes, in all aspects of
organisational social life. As we can see, more often
IS are coming to be considered as social systems, a
component of the much wider domain of human
language, linguistic and social interaction. In the
paper I will address a dramatic shift from a first
idea of the Information System as a technical
system to the Information System as a social
system, technologically enabled and mediated. I
will explore what implications this shift has had on
the body of knowledge needed by IS professionals
and the methods of inquiry used to generate this
knowledge. This will allow me to point, among other
things, to a critical issue of multi-disciplinarity in IS
that has had and will continue to have a significant
impact on the status of IS as a discipline.
Keywords:
IS discipline, IS body of knowledge, IS research
methodologies
Introduction
Many of us in Information Systems (IS)-researchers, teachers and practitioners alike--are
concerned with the actual state and future
development of IS as both a scholarly field and a
domain of practical activity. What is an Information
System and what does a field of IS comprise? What
is it that IS professionals do and what should they
know to be good at it? What are the IS research
issues and what methods of inquiry are appropriate
for them? In this paper I will attempt to briefly
address these questions from a historical perspective.
My aim is to demonstrate how IS is emerging as a
distinct discipline while at the same time defying the

traditional notion of a coherent scientific
discipline. These issues, as I will show, have
practical implications on both the academic status of
IS and on the knowledge graduates bring to
companies to deal with their IS.
Information Systems has become an attractive
professional field if we judge it by job
advertisements and industry positions, the number of
IS courses and departments/schools that include IS
in the title, IS academic positions, research and
professional journals in IS, national and international
IS associations (e.g. UKAIS, AIS) and conferences
(e.g. ACIS, ICIS) etc. Judging from this list, one
would conclude that the IS field is booming in every
respect. It would be therefore difficult to explain to
the uninitiated that the IS field struggles for its
academic identity and recognition, and that it is
starved of research funding.
In this paper I will try to identify some critical issues
that may be responsible for the faith of our field and
to indicate potential ways to increase chances for
establishing the discipline of IS. Firstly, I will
briefly walk through the short history of IS and
summarise how the idea of IS has evolved till
nowadays. Secondly, I will discuss how the
professional body of knowledge required of IS
experts changed as the notion of IS changed.
Thirdly, in the same light I will discuss research
methods and their future development.
Evolution of the Idea of an Information System
The idea of an information system that collects and
processes data to produce information was born in
the early 50s when the first computers were used
for calculation and accounting purposes. This notion
of IS mimics a factory production process: input
data (row material) are processed by a computer
resulting in a production of output information (final
products), and was thus called a production model of
IS (see Fig 1).. This model equates IS with
computer data processing, rendering IS an exclusive
province of technology. The focus of IS designers
was on the efficacy of data processing systems that
automated routine processes and made possible their

efficient (ideally optimal) control.
and to get required information. For example,

Decision Support Systems (DSS) enable managers
to apply (analytical or statistical) models to a set of
data from the database to get information they need
in decision-making. Similarly, Expert System (ES)
enable acquisition of knowledge from a human
expert and storing it in a so-called knowledge base.
By applying an inference machine this knowledge is
processed and made available to other users in their
problem solving and decision-making situations.
The purpose of these systems was to increase
efficiency and effectiveness of decision makers-individual managers or other professionals.
The first two decades of IS history witnessed the rise

and sophistication of the production model of IS,
mostly due to rapid advancements of computer
technology and improvements of IS development
(ISD) methodology. As database technology became
commercially available and central computer
systems enabled data collection via remote
terminals, we saw successful implementation of
large transaction based IS in accounting, sales,
purchasing, personnel, etc. And interestingly, the
most innovative applications of the production
model of IS prompted the most serious criticism of
Innovations
in
Artificial
Intelligence
and
the model itself. The key issues raised in practice
advancement of technologies for ES and DSS in the
were: there was a need to make clear distinction
last two decades or so have enabled more intelligent
between data and information (not only at the
and more efficient systems to be built. In the
syntactic level) and consequently between data
interactive model of IS there is an appreciation of a
processing and the use of information aspects;
specific and subjective nature of users needs and
computer professionals that developed and
the discovery of the human-IS interface issues.
maintained IS became
IS collect and process data

aware that managers
to produce information
Data
Information
cannot be ignored, that
The purpose of IS
IS
automation of data
they have (information)
processes and improved
needs that they expected
control
IS to fulfil; that ISD
1.1 Production model of IS (Eg. Transaction based IS)
should involve users. In
order for these issues to
IS capture and process expert

External
be
considered,
the
data
knowledge and external data to
production model of IS
IS
produce information
User
The role of IS is to assist and

had to be extended to at
support a user to achieve
least involve users of
greater efficiency and
information. While the
effectiveness of decisionproduction model of IS
making
1.2 Interactive model of IS (Eg. DSS, ES)
has
been
slightly
modified,
it
still
IS are integrated across

emphasises the technical
functions and management
IS
nature of IS and its
levels
controlling
role
in
The purpose of the networked

IS
model of IS is to provide
organisations. Such a
comprehensive support to
IS
thinking of IS has
organisation-wide processes and
persisted
till
current
improve coordination,
times,
especially
in
effectiveness, productivity,
profitability etc.
academic
scientificengineering circles.
1.3 Networked model of IS (MIS, EIS, ERP)
The next model in the
evolution of IS concepts
is the interactive model
of IS (1.2 in Fig 1). Users
in this model are not
passive recipients of
information as in the
production model, but
active participants that
interact with the system
to provide data (e.g. their
assumptions, expertise),
to specify their requests
Background
knowledge
Social interaction
IS
1.4 IS as a social system mediating social interaction
Figure 1 Evolution of IS concepts
IS are social systems based on

Information Technology that
mediate social interaction
IS enable new ways of interacting,
acquiring, capturing, storing,
communicating and sharing
information and knowledge
They lead to the emergence of new
domains of interaction between
individuals, within and between
groups and organizations
While IS are still considered in essence technical

systems (that have some intelligence to work in
symbiotic relationship with users) their human and
social consequences have been recognised and
studied.
Further technological developments, powerful mini,
micro and personal computers, communications and
computer network, databases and IS development
methodologies and tools, stimulated the design and
implementation of ever more complex IS that
spanned functional areas and management levels.
While decentralisation of computer resources
resulted in proliferation of IS serving specific
business functions, processes or activities, the use of
computer networks enabled their interconnections
and encouraged (once again) organisation-wide
considerations. Both the understanding of the
information needs of organisations and the
availability of adequate technologies enabled a
conceptual move to the networked model of IS (1.3
in Fig 1). Conceptually it meant reflecting
interconnectedness among business functions and
across management levels. In practice it meant
(often painful) building of links between existing IS,
reducing redundancy and improving consistency and
accuracy of data across systems. Whoever has
experienced, for instance, the implementation of an
Executive IS (EIS) often retains not-so-pleasant
memories of tedious negotiations and frustration
while attempting to establish flow of data from
various functional IS (Financial IS, Human
Resources IS, Production planning IS, Sales IS,
Marketing IS, etc.).
In contrast to specific functional or process oriented
IS, the aims of the networked IS are to improve
coordination and cooperation among different
business functions and processes, to enhance
company performance. Many companies spent huge
resources to do it. Many failed in their attempts,
often blaming technological problems and
disregarding social and political ones.
More
recently, a new impetus for the networked model of
IS developed from the client-server architecture. A
latest breed of integrated IS based on ERP software
(such as SAP) has boosted up hopes that the ideals
of the networked model of IS can be achieved.
The nature of IS in the networked model has not
changed appreciably from earlier models. It was
believed that if we could technically realise the flow
of data between specific (e.g. functional) IS and
aggregate data to produce information relevant for
the organisational level, then we will get a
networked model of IS. As this turned out to be a
big illusion, new ideas to overcome the narrow
technical view of IS became in vogue. A sociotechnical approach has been suggested as a
promising approach. Companies specialising in the
implementation of ERP systems, seem to have partly
adopted the philosophy of social-technical system

(more research on this topic is needed).
A significant new wave of organisational computing
emerged recently with the applications of groupware
(such as Lotus Notes), Computer-Mediated
Communication
(CMC),
Computer
Support
Cooperative Work (CSCW), Internet/intranets, etc.
The essence of these applications is not data
processing (as is in other models) but rather
mediation of communication and collaboration
among people. This is a radically new idea of IS as
a particular mode or mechanism of social
interaction. The model of IS as inherently social
systems (1.4 in Fig ) which use Information
Technologies (IT) to perform certain functions
represents a fundamental shift in thinking about
what an Information System is. IS belong to
organisational processes/ activities that are made up
of and performed through linguistic interactions of
actors, which take place against an assumed
background knowledge. IS are embedded in these
social interactions with the aim to improve
communication, to enhance mutual understanding,
coordination and cooperation among individuals and
groups.
Interestingly, thinking of IS as social systems
enabled by IT has been gaining recognition beyond
groupware and CMC applications. Any information
system can be seen as part of social interaction in
one way or another. Some researchers have claimed
for many years that IS are actually social systems, a
component of the much wider domain of human
language, linguistic and social interaction. (Klein
and Hirschheim, 1983; Boland, 1985; Markus and
Robey, 1986; Lyytinen and Hirschheim, 1988). But
only recently has the model of IS as social systems
gained wider acceptance.
Changing Views on IS Professional Body of
Knowledge
The evolution of the idea of what an Information
System is, from the production model of IS to IS
conceived as social systems enabled by IT, has had
considerable implications on the way IS were
developed, on the methods used for the development
and consequently on the body of knowledge required
from the IS professionals. Depending on how the
boundary of the IS field has been (re)drawn, the
concept and content of the professional body of
knowledge in IS have changed.
In the early days of IS history, when the production
model of IS was established, professionals, usually
located in computer centres, were responsible for the
design and implementation of files and data
processing systems that produce information.
Issues considered were computer hardware and
software, memory size, CP utilisation, processing
speed, efficient processing of reports etc. As

technical problems dominated it is not surprising
that IS drew its intellectual roots from computer
science and engineering. Skills of IS professionals
were not different from those of computer
professionals.
Later on, in the 70s, it became evident that
processed data (computer output) are not
information until users understand and interpret
them. An Information System couldnt thus be
confined to a data processing system but should
have included users and the consideration of their
information needs. The resulting extension of the
production model of IS marked the first crossing of
the boundary, drawn around data and technology, to
consider some aspects of management, and tasks and
responsibility of managers. Consequently ISD
methods taught in the 70s and 80s recommended
analysis of business systems to precede information
analysis and specifications of data processing.
Similarly, the body of knowledge in IS has gradually
changed and apart from computers, programming,
databases and software engineering, included ISD
methods and fundamentals of management. This is
evident from the first IS curricula in business
schools in the US.
When the interactive model of IS arrived on the
scene the role of information in decision-making
came into focus. The developers of e.g. DSS had to
understand decision-making processes and the needs
of individual managers making the decisions. The
boundary of IS had to be crossed this time to tap into
decision-making theory and management science.
The IS body of knowledge that still had as its core
computer and software engineering further extended
with decision theory and management science.
The introduction of data communications and
networked IS, however, stirred the field more
considerably. IS proliferated into all business
functions and levels of management not as isolated
islands but as comprehensive structures that reflect
the needs of an organisation as a whole (at least as
an ideal). And indeed in practice there were no
functional area or management problem in which IS
did not play some role. Consequently the body of
knowledge required from IS professionals tended to
expand in every direction. Apart from computer and
communication technologies, software engineering
and ISD methodologies, IS specialists are expected
to be familiar with management, accounting,
finance, marketing, sales, resource and production
planning, etc., then operations control and decisionmaking at different levels. They have to have
enough knowledge from these areas to be able not
only to deal with specific systems but also to resolve
integration issues, overlapping of responsibilities,
inconsistencies of data, coordination and control of
activities/processes across organisations. In its

victorious march Information Systems (read IT)
seemed to be crossing all boundaries. The scope of
IS as a professional field broadened so much that
this undermined the very existence of the field.
Couldnt management, accounting, marketing and
other experts with a little bit of computer training do
the job (even better)?
At the same time, the introduction and widespread
use of e-mail and other CMC, groupware and
workflow systems, that emphasise communication,
social
interaction,
sharing
of
knowledge,
collaboration, brought the realisation that IS are in
essence social systems. This encouraged yet another
push to consider sociological, behavioural, political,
semantic, linguistic, and some other aspects in IS
studies. The impacts of IS cannot be explained
without knowledge from social sciences. The
question is how the IS body of knowledge can
embrace it.
The evolution of IS concepts and a shift from the
notion of IS as a technical system to IS as a social
system, as we have seen, put pressure on the field of
IS to include ever more domains of knowledge from
IT, management/business disciplines and social
sciences. As this is generally perceived as a good
thing, and no single discipline can actually achieve
it, many claim that Information Systems is in fact a
multi-disciplinary field of study (Currie and Galliers,
1999). For instance, in an attempt to obtain
recognition of IS in the research assessment exercise
in the UK, UK Academy for Information Systems
wrote: The study of information systems and their
development is a multi-disciplinary subject and
addresses the range of strategic, managerial and
operational activities involved in the gathering,
processing, storing, distributing and use of
information, and its associated technologies, in
society and organisations (UKAIS, 1995).
However, while multi-disciplinarity may be
beneficial and sometimes necessary in various IS
endeavours, conceiving IS as a multi-disciplinary
field is questionable and potentially dangerous. It is
questionable as it assumes that complex,
multifaceted phenomena in IS development and their
relationship with organisations can be successfully
dealt within an assemblage of disciplines.
Furthermore, it implies that anybody can be an IS
professional as long as she/he can acquires some
knowledge from IT and a few (proper) disciplines.
Some university departments more or less explicitly
accepted the multi-disciplinary view of the IS field
and offered IS programs by combining technologyrelated and ISD-related subjects with a selection of
management, business or social science subjects.
(This is usually the case when IS degrees are offered
by IT or computer science departments/schools.) It
is not surprising then that employer surveys showed

dissatisfaction with such graduates. This illustrates
why this view is also potentially dangerous.
If we reject such an approach, which I suggest we
do, what is then an alternative? Is there a distinct,
unique IS body of knowledge that is different from
an assemblage of several fields/disciplines? First, I
would argue that there is a distinct, unique substance
of IS that is revealed in the interaction of and
permanent interplay between the social and the
technological. Second, this particular interaction of
the social and the technological gives birth to
emergent changes and novel phenomena in
workplace, organisations and society, often with
unforeseen implications. Both of these phenomena
exceed discipline domain of any social science,
management, engineering or computer science. An
IS body of knowledge that purports to explain these
intrinsic IS issues (interaction of the technological
and the social, and ensuing changes in organisations
and society) has evolved despite all odds. This IS
body of knowledge however is fragmented and there
is no consensus on what it does or should include
(Banville and Landry, 1989).
This body of
knowledge needs constant attention and (re)building.
Changing Methods of Inquiry
As the body of knowledge in IS changed (following
the evolution of the notion of IS) so too did the
methods of inquiry used to create this knowledge.
While IS resided in the province of technology
under the umbrella of computer science, contribution
to knowledge in IS came from engineering,
especially software engineering (e.g. computerbased tool for ISD). In addition descriptive accounts
of how IS were developed in practice using common
sense, provided relevant knowledge but with no
rigor. The research subject and the research methods
in IS showed from the very beginning high diversity
and complexity.
The evolution from the production model of IS to
the interactive and networked model of IS have been
paralleled with the rise of research contributions
aiming towards rigor and scientific foundation of an
IS discipline. For instance, in the 1970s famous
Minnesota experiments (Dixon et al. 1977)
substantially increased the requirements for
methodological rigor, but at the same time the
practical relevance of this type of MIS publications
decreased (Klein, 1999, p. 17). In the following two
decades
the
rigorous,
scientific
research,
characterised
by
narrow
epistemological
assumptions of positivism, flourished.
A positivist line in IS research, however, has been
criticised as inappropriate for examination of the
social impacts of IS (see e.g. Klein and Lyytinen,
1985) and unable to assist researchers in exploration
of complex, conflicting and emergent phenomena of

IS (and ISD) in organisational and cultural context.
IS phenomena, as Lee and Liebenau pointed, have
posed serious problems to traditional research
approaches in the development of scholarly
knowledge about IS. These phenomena have defied
the power of traditional research approaches to
explain how individuals, groups, organisations,
nations and society as a whole can harness computer
technology to serve humanity. (1997, p. 2).
That the shift toward the model of IS as social
systems and the orientation toward interpretive
research approaches coincided is not surprising. The
purpose of research is to understand organisational
context and social life where IS are being developed
and to explain how organisational members adopt
IS, and use IS to share their understanding and
construct social meanings. While positivist IS
research is still in majority, interpretivist research
papers are on the rise (Klein, 1999; Walsham, 1995).
This is also demonstrated in the two last IFIP WG
8.2 conferences (Lee, et al., 1997; Ngwenyama, et
al., 1999).
Another non-positivist approach in IS methods of
inquiry is influenced by critical social theory (CST).
The major contribution expected from critical
methods of inquiry is theory building (this is where
interpretivism is weak) and creation of normative
knowledge. The major obstacle for the application of
the CST approach is lack of specific methods and
tools. Critical research approach and methods of
inquiry are yet to gain recognition in the IS
community (Cecez-Kecmanovic, 2000).
Future Challenges
The discipline of IS does need to build further its
body of knowledge. This body of knowledge may
draw from relevant theories and models from other
disciplines concerned with the similar phenomena in
organisations but from different perspectives (such
as sociology, social psychology, organisation theory,
semiotics and linguistics) so that IS professionals
gain better understanding of human and social issues
and deal more competently with organisational
complexities. This body of knowledge, however, is
not just a sum of concepts, models and theories from
different disciplines, as multidisiplinarity may
imply, but rather a scientific creation of its own.
I argued that conceiving IS as a multi-disciplinary
field is problematic. However, multi-disciplinarity in
the case of IS may mean openness to the wealth of
knowledge from other disciplines necessary to deal
competently with the heterogeneity and complexity
of the IS phenomena. It also may mean cooperative
relationships with other disciplines, constructive
dialogues, and learning from others (the reverse may
be the case as well). Most difficult of all, however,
it will also imply an integrative capability, a capacity

for understanding in the first place, then evaluating
and synthesising.
A distinctive contribution that IS research can make
in the future is first, to nurture conceptual and
theoretical foundations open for valuable
contributions from other disciplines; second, to
develop research methods pertinent to the unique
nature of IS phenomena; and third, to conduct
empirical studies focusing on the distinctive domain
of IS. Furthermore, IS researchers have to take
advantage of their uniquenessdeep understanding
of IT and their interaction with organisational and
social context. Moreover, they have to pay more
attention to IT as a foundation of IS. IS researchers
have a unique opportunity and indeed the obligation,
to study not only organisational and social impacts
of IS but more importantly the needs of individuals,
groups, organisations and society so that this
understanding drives and motivates future IS (and
IT) development.
Continuation of foundational debate on the IS
discipline in this Conference is timely and
necessary, not so much to push for its unity (though
some unifying views would not hurt), as to explore
its uniqueness whilst understanding its diversity and
heterogeneity.
References
Bonville, C. and Landry, M. (1989) Can the Field of
MIS be Disciplined?, Communications of the
ACM, Vol. 32 No. 1, pp. 48-60.
Boland, R.J. Jr. (1985) Phenomenology: A
Preferred Approach to Research in Information
Systems, in E. Mumford, R.A. Hirschheim, G.
Fitzgerald, and A.T. Wood-Harper (eds.),
Research Methods in Information Systems,
North-Holland, Amsterdam, pp. 193-201.
Cecez-Kecmanovic, D. (2000) Doing Critical IS
Research: the Question of Methodology,
invited chapter in E. Trauth, Qualitative
Research in IS: Issues and Trends, Idea Group
Publishing. (in progress).
Currie, W.
and Galliers, B. (Eds.) (1999)
Rethinking Management Information Systems,
Oxford University Press, New York.
Dixon, G.W., Senn, J.A., and Chervany, N.L. (1977)
Research in Management Information Systems:
The Minnesota Experiments, Management
Science, Vol. 23 No. 9, pp. 913-923.
Klein, H.K. (1999) Knowledge and Methods in IS
Research: From Beginnings to the Future, in
O. Ngwenyama, L. Introna, M.D. Myers, and
J.I. DeGross, New Information Technologies in
Organizational ProcessesField Studies and
Theoretical Reflections on the Future of Work,
IFIP, Kluwer Academic Publishers, Boston,
pp.13-25.
Klein, H.K. and Hirschheim, R. (1983) Issues and

Approaches to Appraising Technological
Change in the Office: a Consequentialist
Perspective, Office: Technology and People,
Vol 2, pp. 15-40.
Klein, H. & Lyytinen, K. (1985). The poverty of
scientism in information systems. In E.
Mumford, R. Hirschheim, G. Fichgerald & T.
Wood-Harper (Eds), Research methods in
information
systems
(pp.
131-161).
Amsterdam: Horth-Hollnad.
Lee, A., Liebenau, J. and DeGross, J.I. (Eds) (1997)
Information Systems and Qualitative Research,
IFIP, Chapman & Hall, London.
Lee, A., and Liebenau, J. (1997) Information
Systems and Qualitative Research, in Lee, A.,
Liebenau, J. and DeGross, J.I. (Eds)
Information Systems and Qualitative Research,
IFIP, Chapman & Hall, London, pp. 1-8.
Lyytinen, K. and Hirschheim, R. (1988) Information
Systems as Rational Discourse: An Application
of Habermass Theory of Communicative
Action, Scandinavian Journal of Management
Studies, Vol. 4 No. , pp. 19-30.
Markus, M.L. and Robey, D. (1986) Information
Technology and Organisational Change
Conceptions of Causality in Theory and
Research, Department of Computers and
Information Systems, UCLA, Working paper.
Ngwenyama, O., Introna, L.D., Myers, M.D. and
DeGross, J.I. (Eds) (1999) New Information
Technologies in Organizational Processes
Field Studies and Theoretical Reflections on
the Future of Work, IFIP, Kluwer Academic
Publishers, Boston.
UKAIS, The United Kingdom Academy of
Information Systems (1995) Newsletter, 1, 2,
September.
Walsham, G. (1993) Interpreting Information
Systems in Organisations, John Wiley & Sons,
Chichester.
Address for correspondence
University of Western Sydney, Faculty of Management,
Locked Bag #1, Richmond, NSW 2753, Australia
e-mail Dubravka@uws.edu.au
Bullying and harassment at work: Unveiling an organizational taboo

Stle Einarsen
Department of Psychosocial Science, University of Bergen, Norway
Abstract
Victimization from bullying and non-sexual
harassment at work has until recently been a nonexistent issue in organizational research, as well as
a taboo in organizational life. The aim of this paper
is to present our main findings and our current
thinking based on 10
years of research and
practice in this field. Bullying is defined as a
situation where one or more persons persistently
over a period of time, perceive themselves to be on
the receiving end of negative actions from one or
several others in a situation where the one at the
receiving end has difficulties defending against these
actions. Exposure to such behaviour seems to have
very negative effects on the victims health and wellbeing, and seems to evolve through a predicted
process described in this paper. Bullying seems to
exist in most organizations, although large, male
dominated organizations seem to be at risk, as do
older workers. Men are seen as offenders more often
than women. Bullying occurs more often in
organizations characterized by a negative
psychosocial work environment. A theoretical
framework for future research as well as a
framework for the development of practical
strategies for managing the problem is presented.
Keywords:
Bullying,; harassment; conflict; victimization
Introduction
Victimization from bullying and non-sexual
harassment at work has until recently been a nonexistent issue in organizational research, as well as a
taboo in organizational life.
Although
bully/victims problems among children as well as
the sexual harassment facing many women in
working life have received substantially interested
both by the public and by researchers, this has not
been the case for abusive and consistent aggressive
behaviour among adults within an organization
(Einarsen, 2000). However, by the late 80thies
media and union-representatives in the Scandinavian
countries started to raise a concern about the effects
on individuals facing a persistent hostile work
environment in the workplace. The phenomenon,
which included being exposed to persistent insults or
offensive remarks, persistent criticism, personal or
even physical abuse, was in lay language labelled

bullying and harassment at work. Yet, empirical
investigations of this phenomenon were scarce (see
Brodsky, 1976 for a sole exception). Although there
was some public concern, the issue was still a taboo.
An illustration of this fact was that when we started
our research program in the late 80thies (Matthiesen
et al., 1989; Einarsen et al., 1990), no organization
would allow us to conduct research among their
employees. The said reason for this was that the
problem did not exist in their organization. Or
rather, as it eventually came through, they did not
want to know.
The problem as we faced it then was that something
was definitely going on out there in our
organizations, but we did not know what it was.
What we did know, from media and individuals we
met, was that some people experienced to be
victimized at work from something they and others
labelled bullying and harassment at work.
The objective when conducting research on potential
organizational problems, such as bullying at work,
must be to contribute to the prevention and
constructive management of these problems. In
addition we would aim to contribute to the healing
of possible individual and organizational wounds
resulting from these potential problems. However, to
successfully accomplish these objectives, different
kinds of information have to be provided (Einarsen,
2000). First we must provide descriptive information
on the phenomenon itself, both from a conceptual
and an empirical point of view. Secondly,
information on the causes and consequences of the
problem is needed, again both from theoretical and
empirical angel. Descriptive data and personal
experiences gathered by both victims and
professionals may be helpful in this respect, but are
by no means sufficient for the implementation of
effective interventions, which may only be
accomplished through the development of
theoretical and empirically sound models of the
causes and effects involved. The third kind of
information needed concerns the actions that may be
taken to resolve or prevent the problem. Not all
possible causes of bullying and harassment at work
may easily be altered. Information is therefore
needed regarding possible interventions and actions
steps and the cost-benefit of the different strategies.
In addition to the causal theories, we need theories

of action and empirical data on the effectiveness of
these actions. Research conducted by Dan Olweus
(1991) on bullying among children revealed
personality traits among victims and bullies to be
important causes of victimization in schools.
However, the intervention program developed by
Olweus had a strong focus on the school and the
classroom as social systems, and involved all
children, teachers and parents of the particular
school (Olweus, 1991).
Hence, as we saw it when we started out our
research program, the first generation of research on
bullying and harassment at work had to be the
thorough documentation of the frequency, risk
groups, the behaviours involved, as well as the
effects and causes of bullying at work. Descriptive
and exploratory studies, using both quantitative and
qualitative methods had to be conducted within a
vast array of organizations. In short, our research
focused on the issues of who does what to whom,
where, why, when and with what kinds of
consequences. In order to address these issues, we
have during the last 11 years conducted large-scale
surveys with more than 10.000 respondents
(Einarsen & Skogstad, 1996). In addition we have
conducted interview studies and focus groups
(Einarsen et al., 1994), as well as case studies
(Einarsen & Hellesy, 1998). This paper will
present a short overview of our findings and our
thinking so far.
What is it?
Building on definitions of bullying in the school
yard, we define bullying to occur when someone
persistently over a period of time, perceives himself
to be on the receiving end of negative actions from
one or several others, in a situation where the one at
the receiving end has difficulties defending against
these actions (Einarsen, 2000). Although the concept
of bullying, or in Norwegian mobbing, normally
refers to incidents of non-sexual and non-racial
harassment, such problems can also be implied in
this concept. Bullying refers to all situations where
one or more persons feel subjected to negative
behaviour from others over a period of time in a
situation where they for different reasons are unable
to defend themselves. Typically, a victim is
constantly teased, badgered and insulted and
perceives that he or she has little recourse to retaliate
in kind. Bullying may take the form of open verbal
or physical attacks on the victim, but may also take
the form of more subtle acts, such as excluding or
isolating the victim from his or her peer-group.
Among 137 Norwegian victims of bullying at work,
social isolation and exclusion, devaluations of ones
work and efforts, and exposure to teasing, insulting
remarks and ridicule, were the most commonly
negative acts, as reported by a group of some 200

victims (Einarsen et al., 1994).
Although there may be many unpleasant experiences
in need of our attention and a need of a label that
may cause such attention, we must defer bullying
from becoming a popular but misused concept. In
Norway, bullying (or mobbing as we use as our
term), being a very popular term, almost lost a lot of
its meaning. In everyday language it was used even
to describe good-hearted joking and horseplay,
resulting in a situation were bullying was seen as
something rather minor to be easily accepted and
tolerated. If someone resented bullying and reported
to be seriously hurt, they were seen as neurotic and
hypersensitive persons, and were most likely to be
blamed themselves for their misfortune. Bullying at
work then is long-term aggression, most often of a
subtle and psychological nature, directed towards a
person who is not able to defend himself in the
actual situation, leading to victimization of this
person.
Bullying as a process
Bullying seems not to be an either-or phenomenon,
but a gradually evolving process, often triggered by
a work-related conflict (Einarsen et al., 1994).
During an escalating conflict a person may acquire a
disadvantaged position, and may gradually be the
subject of highly aggressive behaviour by colleagues
or shop-floor management. These aggressive
behaviours may be quite a number of different
activities used with the aim or at least the effect of
persistently humiliating, intimidating, frighten or
punish the victim. During the early phases of the
bullying, the victim is subjected to aggressive
behaviours that are difficult to pinpoint by being
very indirect and discrete (Einarsen, 2000). Later on
more direct aggressive acts appear. The victims are
clearly isolated and avoided, humiliated in public by
being the laughing-stock of the department and so
on. In the end both physical and psychological
means of violence may be used. As the conflict
escalates, the frequency of the attacks also comes
more frequent and harsh, and after some time the
victims are attacked on a weekly or even daily basis
(Einarsen & Skogstad, 1996). The stigmatising
effects of these activities, and their escalating
frequency and intensity, makes the victims
constantly less able to cope with his or her daily
tasks and the cooperation requirements of the job,
thus becoming continually more vulnerable and a
deserving target.
As long as a victim is recognized as such, most
organizations will probably take action or the victim
will at least experience substantial support from
other organization-members. What makes bullying
especially difficult to handle is that the victims is not
necessarily believed and supported when making a
complaint. It is typical that upper management,

union representatives, or personnel administration
accept the prejudices produced by the offenders,
thus blaming the victim for its misfortune. Third
parties or managers seldom acknowledge the harm
done to the victim as in fact bullying and
harassment, but rather a no more than fair treatment
of a difficult and neurotic person (Einarsen, 2000;
Leymann, 1996). In an Irish study among 30 victims
of bullying at work, 24 of them took their case to the
Personnel Department. However, only three of them
were satisfied with the outcome of this strategy
(OMore et al., 1998).
Expulsion of the victim is therefore a common
solution, be it long-term sick leave, no work
provided (but still employed), relocation to
degrading tasks or plain notice. Due to Scandinavian
legislation, the latter is however seldom applicable.
At this stage, many victims are seriously ill and may
be required to seek psychiatric treatment. However,
they seem to be incorrectly diagnosed by
professionals receiving diagnoses such as paranoia,
manic depression, or character disturbance
(Leymann, 1996). Many victims experience the lack
of support from the organization, the union or
health-care personnel as a kind of secondary
victimization.
Risk groups and risk organizations

In the Scandinavian countries, some 4-5% of the
working population seems to face long-term
bullying at time being, with a mean duration of some
18 months (Einarsen, 2000). Hence, bullying is not
isolated episodes or short conflict intermezzos, but
rather ongoing situations where the victims
repeatedly experience aggression from others at
work. Although there are less empirical evidence on
the frequency of these problems out-side of
Scandinavia, the scale of the problem seems to be
even higher in other countries.
In a survey
conducted among 726 Finnish university employees,
some 24% of the females and 17% of the males were
regarded as victims of harassment at work
(Bjrkqvist, sterman & Hjelt-Bck, 1994). In a
study among employees at an Austrian public
hospital, 26.6% reported to be subjected to one or
more hostile actions once a week during the last six
months (Niedl, 1995), while 50% of a sample of
1137 part-time students within an English University
reported to have been bullied at work (Rayner,
1997).
Large and male-dominated organizations seem to
have the highest prevalence of victimization; older
workers having a higher level of reported
victimization than younger workers (Einarsen &
Skogstad, 1996). At least in Scandinavia, no
difference has been found between men and women
in exposure to bullying. However, significantly more
men are reported as bullies. Victims seem to be

singled out as victims be it by their superiors or by
their colleagues. However, the latter findings may
be an artefact of a culture with a low power distance
between superiors and subordinates. Empirical data
from the UK show superiors to be the main
perpetrators of bullying at work, and that people
seems to be bullied in groups by these superiors
(Rayner, 1997).
Causes of bullying at work

The empirical investigations into the causes of
bullying at work have mainly addressed two issues:
the role of personality and the role of psychosocial
work environment (Einarsen 1999). Victims of
bullying at work have been described as
conscientious, literal-minded, and somewhat
unsophisticated, being an overachiever with an
unrealistic view of both oneself and ones situation
(Brodsky, 1976). In a study among 2200 members of
six Norwegian Unions (Einarsen et al, 1994),
victims of bullying at work showed lower selfesteem and were more anxious in social settings than
their non-bullied colleagues. Such characteristics
may make them an easy target of aggression, a
suitable scapegoat, as well as vulnerable when
facing interpersonal aggression and conflicts.
However, a problem in this kind of research is that
these observed characteristics of the victims may in
fact be a consequence of the experienced
victimization. Leymann & Gustaffson (1996) argue
that any personality disorder in the victim must be
seen as a sign of the destruction of the victims
personality caused by the bullying.
Our most recent study on this issue (Matthiesen &
Einarsen, 2000), reveals that there may be three
groups of victims; those who are depressed and
suspicious in social settings as a result of an ongoing
exposure to bullying, those with a general low social
competence and a variety of pre-morbid
psychological problems, and those who do not
portray any personality characteristics out of the
average.
As far as the bullies are concerned, we know less of
their personality. A group of 120 men admitting in a
survey that they had bullied others reported a
personality much in accordance with that of the
victims. However, in addition to be anxious in social
settings and low on social competence, they also
described themselves as highly aggressive
individuals (Einarsen et al., 1994). The American
psychiatrist, C.M. Brodsky (1976) has claimed that
harassment occurs when an artless teaser meets a
humourless victim. Data presented so far may be
interpreted as portraying some support to this
proposition.
10 T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE, P ROCESSES AND SYSTEMS
However, the causal model of bullying and

harassment at work that has received most public
attention in Scandinavia, emphasises the quality of
the organizations work environment as the main
determinant of such misconduct. According to this
view, harassment is primarily caused by work
environment and social environment problems
within the organization. Based on case studies,
Leymann (1993) claims that four factors are
prominent in eliciting bullying at work: (1)
deficiencies in work design, (2) deficiencies in
leadership behaviour, (3) a socially exposed position
of the victim, and (4) a low moral standard in the
department.
The work environment hypothesis has been explored
in a couple of studies.
Einarsen, Raknes &
Matthiesen (1994) showed that the occurrence of
bullying and harassment correlated significantly
with several aspects of the organizational and social
work environment, in particular leadership, role
conflict and work control. Work environments
where bullying exist had employees who reported an
elevated level of role conflict and who were
dissatisfied with their social climate, their superiors
leadership behaviour, and the possibility of selfmonitoring ones work. Both victims of bullying and
observers of bullying suffered from an illconditioned work environment. In a study among
male industrial workers, a strong correlation existed
between exposure to bullying and dissatisfaction
with work pressure, the social climate at work, the
supervisors leadership practice and the lack of
stimulating and challenging work (Einarsen &
Raknes, 1997). A group of German victims (Zapf,
Knorz & Kulla, 1996) reported to have little control
over there own time and had high cooperation
requirements. A situation where people are forced to
work closely together and are highly interdependent,
offers more possibilities for conflicts. As a
consequence of peoples restricted control over their
own time, unresolved conflicts may escalate into
harassment, particularly if the work group climate is
characterized by humour going sour (Brodsky,
1976).
The tension, stress and frustration caused by a work
situation as described above may in itself be
perceived as harassment when attributed to the
hostile intentions of others (Brodsky, 1976). Roleconflict and lack of work control may also be related
to bullying and harassment through its creation of
elevated tension, stress and frustration in the work
group. A high degree of ambiguity or incompatible
demands and expectations around roles, tasks and
responsibilities may also have created a high level of
conflicts within the work group, especially in
connection to rights, obligations, privileges and
positions. This situation may then act as a precursor
of conflict and poor inter-worker relationships.
Alternatively, stressful events may indirectly affect

aggression through its effect on the victims
behaviour. Distressed persons may violate
expectations,
annoy
others,
perform
less
competently and even violate social norms
describing polite and friendly interactions, and hence
elicit aggressive behaviour in others (Einarsen,
2000).
Consequences of workplace bullying

When working with victims long-term of bullying,
what strikes you most is the intense and pervasive
health problems they display. Although single acts
of aggression do occur fairly often in everyday
interaction, they seem to be associated with severe
health problems when occurring on a regular basis
and when being attributed to hostile intentions.
Significant relationships are consistently found
between exposure to bullying and both
psychological, psychosomatic and muscle-skeletal
health complaints (see Einarsen, 2000). In a study
among 500 male industrial workers, exposure to
bullying explained 23% of the variance in selfreported psychological health and well-being
(Einarsen & Raknes, 1997). The strongest
relationship existed between experiences of
persistent personal derogation and psychological
well-being.
To be a victim of intentional and systematic
psychological harm by another person, real or
perceived, seems to produce severe emotional
reactions such as fear, anxiety, helplessness,
depression and shock. It also seems to alter the
victims perceptions of their work-environment and
life in general to one of threat, danger, insecurity,
and self-questioning (Janoff-Bulman, 1992), which
may result in pervasive emotional, psychosomatic
and psychiatric problems. In view of the particular
symptom constellation found among these victims, it
has been argued that they may in fact suffer from a
post-traumatic stress disorder, PTSD (Bjrkqvist, et
al., 1994). PTSD refers to a constellation of stress
symptoms after exposure to extreme traumatic
events, where the trauma first of all is relived
through returning, insistent and painful memories of
the event, recurring nightmares, or by intense
psychological discomfort to reminders. Secondly,
the patient avoids situations associated with the
trauma, which may include memory problems of the
actual event. Thirdly, the patient may lack the ability
to react emotionally adequate, for instance by having
reduced interests in activities that used to bring joy,
by showing limited affect or by the feeling of having
no future. Patients with PTSD are also
hypersensitive, be it with sleeping problems,
difficulties in concentration, by being highly tense
and irritable and with bursts of fury, by having
exaggerated reactions to unexpected stimuli, or by
reacting with physical symptoms to reminders of the

actual traumatic situations.
In a study among 102 victims of long term bullying
at work recruited among members of two Norwegian
national associations against bullying (Einarsen &
Matthiesen, 2000), 75% of the victims portrayed
stress symptoms indicating a post-traumatic stress
disorder. Even 5 years after the bullying has ceased,
as many as 65% report symptoms indicating PTSD.
The level of post-traumatic symptoms were highly
related to the intensity of the reported aggressive
behaviours, and were especially salient if the
aggressive behaviour where perceived as being of a
personally degrading nature.
A theoretical framework
When we started out our research project, an implicit
understanding was that bullying was a unified
phenomenon. After ten years of work I think that
both our future research as well as our strategies for
managing the problem, has much to gain from
thinking about bullying as a set of interrelated
phenomena, as well as being characterized by multicausality. This acknowledgement has resulted in the
development of a theoretical framework for future
research, as well as a framework for structuring
future organizational action programs (see figure 1).
This framework identifies the main classes of
variables to be included in a comprehensive
theoretical model of bullying.
What is important in this model is that it
distinguishes between the nature and causes of
bullying behaviour as exhibited by the alleged
offender from the nature and
causes of the
perceptions made by the victim of these behaviours.
Situations where one person offends, provokes or
otherwise angers another person, often involve
substantial discrepancies between the subjective
perceptions and interpretations of the conflicting
participants. Studies of sexual harassment have
Individual, social, and
contextual antecedents of
aggressive behaviour
+
Organizational factors
inhibiting aggressive
behaviour
shown that an incidence that is considered mildly

offensive by one individual might be seen as serious
enough to warrant a formal complaint by others
(Tersptra & Baker, 1991). Secondly, personal factors
of the victim may not be relevant as a cause of the
behaviour of the bully, but highly relevant when
looking at the vulnerability of the victim when
facing such persistent aggressive behaviour.
The model also pinpoints the importance of an
organizational intolerance of bullying in inhibiting
bullying behaviour. It also claims these factors as
well as an effective support systems for victims, to
be key factors in the perceptions and reactions of the
victim in a situation where bullying may exist.
Brodsky (1976) claimed that although both victims
and bullies may suffer from personality disorders,
for bullying to be established it must occur within a
culture that permits or even rewards this kind of
misbehaviour. The presented model argues that
attention to such organizational response patterns
and other contextual issues within the organization
are highly important when understanding the many
different aspects of bullying at work. On the basis of
survey data on the experiences and attitudes of
British union members, Rayner (1998) concluded
that bullying prevails due to an organizational
tolerance of bullying at work. Ninety-five per cent of
the respondents in her UINISON study claimed that
bullying was caused by the fact that bullies can get
away with it and victims are to scared to report it.
Hence, bullying behaviour may be a result of the
combination of a propensity to bully and the lack of
organizational inhibitors of bullying behaviour.
The latter part of the model has clearly an
individual, subjective and most of all a reactive
focus. Although bullying at work to some certain
degree may be a subjectively experienced situation
in which the meaning assigned to an incident will
differ, depending on both the persons and the
circumstances involved, this part of the model
pinpoints the necessity for any strategy against
Organizational action
* Tolerance/ intolerance
* Social support
* Retaliation/ retribution
* Policy enforcement
Bullying
behaviour
as exhibited
by the
offender
Bullying
behaviour
as perceived
by the victim
Effects on the
organization
Immediate
reactions by
the victim
* Emotional
* Behavioural
Individual characteristics of the victim

* Demographical factors
* Personality
* Personal history
* Social circumstances
Effects on the
individual
Figure 1 A theoretical framework for the study and the management of bullying at work
bullying to take the perceptions and reactions of the

victims seriously and as a real description of how
they experience their work environment. Secondly
this part of the model argues for inclusion of a
rehabilitation program in an effective organizational
strategy against bullying.
Two kinds of bullying

Another lesson we have learned during these years is
that bullying behaviour and perceptions of
victimization may evolve from two different kinds
of situations
(Einarsen, 1999). In predatory
bullying, the victim has personally done nothing
provocative that may reasonably justify the
behaviour of the bully. In such cases the victim is
accidentally in a situation where a predator is
demonstrating power. Alternatively, the victim may
be attacked because he or she belongs to a certain
out-group, for instance by being the first women in a
local police force. The victim may even be bullied
by being an easy target of frustration and stress
caused by other factors. Examples of predatory
bullying are exposure to a highly aggressive
leadership style, being singled out as a scapegoat,
and the acting out of prejudice.
Dispute related bullying on the other hand, occurs
as a result of a highly escalated interpersonal
conflict and might be of three kinds, aggressive
behaviours used as tactics in an interpersonal
conflict, malingering as a tactic, and resentment to
perceived wrongdoing or unfair treatment by ones
opponent. Although interpersonal struggles and
conflicts are a natural part of all human interaction
and must not be considered bullying, there may be a
thin line between the fights between two parties in
an interpersonal conflict and the aggressive
behaviour used in bullying. In some instances, the
social climate at work turns more than sour and
creates conflicts that may escalate into harsh
personified conflicts and even office wars, where the
total destruction of the opponent is seen as the
ultimate goal to be gained by the parties (van de
Vliert, 1998).
In such highly escalated conflicts both parties may
deny the opponents human value, thus clearing the
way for manipulation, retaliation, elimination and
destruction. If one of the parties acquires a
disadvantaged position in this struggle, he or she
may of course become the victim of harassment.
Interpersonal conflicts where the identity of the
parties is at stake - for instance when one of the
parties attacks or denies the others self-image - are
often
characterized
by
intense
emotional
involvement. The latter includes feelings of being
insulted, of fear, suspicion, resentment, contempt,
anger and so forth. In such cases people may subject
each other to bullying behaviour or resent the
behaviour of their opponent to a degree where they
feel harassed and victimized even though there are

few observable signs of bullying behaviour by the
alleged offender. It may also be true that claiming to
be a victim of bullying may be a very effective
strategy in interpersonal conflicts, in some cases
even used by both parties. In highly intense
interpersonal conflicts, aggressive outlets may come
from both parties, making the situation rather
complex.
Scandinavian cases of bullying seem mainly to be of
a dispute-related kind, although both predatory
bullying and mixed cases does occur. However, in
countries with a more masculine culture and a
culture where the power distance between different
groups and between superiors and subordinates is
larger than in the Scandinavian countries (see also
Hofstede, 1980), predatory bullying may well be the
most prevalent kind of bullying (Einarsen, 2000).
Conclusion
The research conducted in this field during the last
couple of years, pinpoint the need to focus on and
react to the dark side of organizations and human
interaction. Phenomena that are not acknowledged
are seldom studied and seldom managed
constructively (Wood, 1993). Bringing bullying out
in the open is a necessary first step in order to
alleviate the suffering of all those individuals
exposed to it. However, data from Norway suggest
that bullying at work drains the motivation and the
productivity not only of the victim, but also of the
whole work group (Einarsen, 2000). In a workinglife where effective teamwork seems to be one of the
keys to organizational success, a focus on bullying
may be even more important than before. Both good
things and bad things happen to and in teams.
Hence, bullying should not be a taboo, but rather one
out of many phenomena that needs attention in any
modern organization.
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Dr. Stle Einarsen
Department of Psychosocial Science
University of Bergen
Christiesgate 12
N-5015 Bergen, Norway
Email: stale.einarsen@psych.uib.no.
Phone: +47 55 58 90 79
Toward organizational maturation: Active witnessing for prejudice

reduction
F. Ishu Ishiyama
Associate Professor of Counselling Psychology
University of British Columbia
Abstract
This is a keynote speech, originally entitled A new
approach to the management of multiculturalism in
the workplace: Anti-racism response training and an
active
witnessing
model.
An
Antiracism/discrimination Response Training (A.R.T.)
method has been developed and piloted in
Vancouver, Canada. This group-based social skills
training is designed to empower bystanders, who
could potentially become passive and self-silenced,
and to expand their repertoire of responses to
interpersonal situations of racial discrimination and
inequitable treatment. Through this training,
participants increase their awareness of racial and
ethnic discrimination and readiness to respond with
a wide range of simple anti-racist responses and
sentence stems. It also attempts to raise their ethical
commitment to societal improvement . This 6-hour
training method uses videotaped scenarios and
participants role-play scripts for practising antiracist responses. The method is based on an active
witnessing model which has four stages (i.e., diswitnessing, passive witnessing, active witnessing,
and ethical witnessing). In this presentation, I will
discuss the A.R.T.s training format, procedures,
teaching materials, and goals. The individual and
institutional ethical responsibility and moral
development will be explored, in the light of the
active witnessing model. I will also explore its
practical application, social-ethical implications,
and future research possibilities.
Introduction
The human history is haunted by the centuries of
racism, slavery, wars, genocide, and ethno-violence
all over the world. These atrocities did not simply
happen like natural disasters, beyond human control,
such as volcanic eruptions and snowstorms. Instead,
we are responsible for these grave errors and
injustices, collectively and individually. For
example, there were people who actively supported
racism and prejudices against certain ethnic groups.
Some of them used enormous political powers to
promote such views and policies. There were people
who witnessed racism as bystanders but did little to
intervene. Instead, they gave their silent approval by

default. Also, there were some people who
courageously stood up against racial prejudices.
Take the Holocaust. Six million Jews were killed
during the Second World War; it is equivalent to
dropping the Hiroshima-level atomic bombs 46
times and killing 130,000 people each time. In
addition to the political, economic, and military
forces used in the attempt to annihilate this ethnic
group, there were also ordinary people who picked
up and threw stones at the Jewish people, set their
stores on fire, humiliated Jewish children at school,
and enjoyed racist jokes and criticisms at social
gatherings. There were others who passively
witnessed these scenes with no action, as silent
bystanders.
Canada is one of the leading countries to embrace
multicultural policies, but is no exception when it
comes to mistreatment of minorities in its history.
For example, under the 1885 Chinese Immigration
Act, an exorbitant Head Tax was charged on
Chinese immigrants, while European immigrants
enjoyed free entry to Canada. (The Head Tax was
raised from $50 to $500 over 18 years between 1885
and 1905.) The Chinese Exclusion Act was passed in
1923. Japanese descendants were interned in
concentration camps during the World War Two.
Their personal and business properties and
possessions were confiscated and auctioned off to
other Canadian citizens.
Racism affects all aspects of the psyche as well as
the social existence of minorities. An example of its
manifestation is the rejection of ones own
oppressed minority identity. A Japanese-Canadian
novelist, Joy Kogawa, who experienced the
internment as a child, wrote: I prayed to the God
who loves all the children in his sight that I might be
white.
Canada also had many dark years of residential
schooling policies and the cultural engineering
conspiracy between the Government and the church
establishment from 1861 till 1984. Aboriginal
children were removed from their families and
communities and shipped to the residential

schools, where the children were forced to give up
their own identity, language, and cultural heritage.
Many were subjected to physical, psychological and
sexual abuse at residential schools. The aboriginal
people thus suffered spiritual abuse collectively and
individually.
Have we learned all the necessary lessons from our
past to eradicate racial discrimination and prejudice
against minorities? Have we made sufficient
progress in improving our social, political, and
institutional climate and in raising peoples ethical
awareness? I think we still have a lot of work ahead
of us. Take the experiences of being the target of
colleagues and superiors prejudice at work.
Implied or overt prejudices and negative stereotypes
invalidate and exclude ethnic minority workers.
Such experiences make them feel discouraged,
unsupported, and invalidated in their work
relationships and pursuit of career progress. I have
heard concerns such as follows:
My colleagues were making ethnic jokes and
laughing loudly. As I walked by them, they suddenly
stopped their laughter and waited for me to pass. I
felt hurt and angry.
My supervisor said that she could not give a strong
recommendation for me because I was too softspoken and too gentle to confront others. She said I
was not tough enough to survive and succeed in a
competitive setting.
A visitor made a very offensive comment on the
Aboriginal people in a meeting. He didnt realize I
was one of the people, probably because of my less
Native-looking appearance. He felt safe to air his
racist view to his non-Native audience. I was
shocked and couldnt speak out my objection. None
of my colleagues who had known my Native status
stood up for me or for my people. I felt totally alone.
I didnt get a promotion. My boss told me that our
company executives preferred someone else who
spoke English with no ethnic accent. I got an A for
my work habits, but an F for my racial
background.
When I first came to this company, people were
curious about me. They used to say, Where are you
from? or Are you Chinese or Korean or what? I
said, Im a Canadian. Im from here. They were
not satisfied with my answer, and asked me again,
No, no. Where are you originally from? It was
obvious that they wanted to peg me down to a
specific alien minority group. I realized that my
Canadian identity was not enough or acceptable to
them.
Addressing institutional change and stimulating
organizational maturation is critical to success in
promoting diversity appreciation and maximizing
the use of human resources. The Federal Public
Service, one of Canada's largest organizations, has

undertaken initiatives. In Canada, the following four
groups have been designated as equity groups:
Aboriginals, people with disabilities, visible
minority members, and women. Removing barriers
to the recruitment, retention and promotion of equity
group members has been identified as one of the
most urgent tasks by this organization. Various
career enhancement programs have been
implemented in this regard 1 .
In 1992, the House of Commons of the Government
of Canada recommended that the Federal Public
Service be covered under the 1985 Employment
Equity Act (EEA). In 1995, the new Act came into
force. The Act requires employers of over 100
persons in the public and private sectors to conduct
analyses of representation, to review employment
systems, and to undertake policies and programs to
ensure representation. Although there is work still to
be done, there has been improved representation of
all equity groups in the Public Service of Canada.
For example, the labour market availability for
members of visible minorities (Census 1996) is
8.7%. In 1990, 3.5% of the Public Service were
members of visible minorities, which increased to
5.9% by 1999. Organizational change, involving the
improvement of policy, procedures, priorities, and
practices, must reflect the diverse Canadian
population. Prejudice reduction and anti-racism
education have been regarded as critical
interventions to promote positive changes in the
workplace environment, along with systemic efforts
to increase minority representation in the
Government structure.
I will now talk about how we can use the model of
active witnessing and an anti-racism response
training method to fight racism, prejudices, and
discriminatory behaviours2 . I will discuss how this
The Canadian Human Rights Commission (CHRC) has the
mandate to monitor and verify compliance through employer
audits. This legal requirement combined with government studies
and task forces such as "Gathering Strength" (Aboriginal),
"Embracing Change" (members of visible minorities) and
"Access for all Through Technology" (persons with disabilities)
have been significant factors in influencing organizational
change. Government programs such as the Employment Equity
Positive Measures Program (EEPMP), Job Accommodation
Network (JAN) and the Embracing Change Fund have sought to
implement practical solutions and remove barriers to the
recruitment, retention and promotion of equity group members.
EEPMP projects have included bridging programs, tools for
managers, training for managing a diverse workforce and career
development strategies. The Embracing Change Fund will be
used to launch programs which will ensure the three benchmarks
recommended in the Embracing Change Report for recruitment,
development and promotion of members of visible minorities are
achieved within the next 5 years. (The author is indebted to Dr.
Mary Brodhead from the Federal Public Service of Canada for
providing detailed information as above.)
2 The term racism is used here to refer to all kinds of racial
discrimination at ideological,
institutional, systemic, and
1
approach can help create a social and organizational

climate of zero-tolerance for racial discrimination.
While the focus is on individuals social competency
expansion, the parallel goal is to enhance
organizational maturation and increased ethical
awareness. I will first give a brief overview of my
model of active witnessing for prejudice reduction. I
will then describe the Anti-racism Response
Training (A.R.T.) Program that I recently developed
and piloted in Vancouver, Canada.
Active Witnessing Model

In short, the active witnessing method used in the
Anti-racism Response Training (A.R.T.) Program is
a way of heightening peoples awareness and
behavioural and ethical commitment to fighting
prejudice and racial discrimination. The A.R.T.
approach uses a skills-training format to enhance
readiness to respond to racist situations cognitively
and behaviourally and to empower otherwise passive
and silent bystanders to become more active and
vocal. I have conceptualized four stages or levels of
witnessing and responding to discrimination in
social situations. They are: (a) dis-witnessing, (b)
passive witnessing, (c) active witnessing, and (d)
ethical witnessing with social action.
In this model, witnessing refers to the process of
recognizing the critical nature of a certain event. It is
more than seeing or noticing an event without
further conscious involvement. It takes courage to
witness prejudice and discrimination in this sense,
because the witness has an ethical responsibility to
act on his/her awareness. Witnessing is with-ness,
that is, physically and psychologically sharing time
and space with the primary participants around a
critical event. Witnessing means getting involved at
multiple levels. For this reason, the witnessing
individual in effect becomes involved as a secondary
participant of the event who can potentially change
the course of event, rather than as a detached or selfdistanced observer or bystander3 .
interpersonal levels. Allport (1954) defined prejudice as a positive
or negative orientation towards groups of people without regard
to all the facts. Ethnocentrism is a type of prejudice in favour of
ones own group, while racism is a type of prejudice against
another group. Isajiw (1999) has identified four components of
prejudice as follows: (a) stereotypes, (b) attitudes of likes and
dislikes, (c) trust or mistrust, and (d) rationalized judgment.
Allport, G. (1954). The nature of prejudice. Reading, MA:
Addison-Wesley.
Isajiw, W.D.(1999). Understanding diversity: Ethnicity and race
in the Canadian context. Toronto: Thompson Educational
Publishing.
Level of commitment to the role of a secondary participant
varies from witness to witness based on many factors. Among
such factors are: level of social and ethical awareness, stage in
moral development, emotional maturity, critical thinking ability,
and psychological defenses, as well as circumstantial factors such
as social and political threats and oppression and positive or
negative past experience of being in this role.
3
However, the observer can be an unwilling witness

who might say, I shouldnt have been here to
witness this event. Now, my conscience drives me to
say or do something. Or, should I pretend that I
hadnt seen it, and walk away safely? As some
researchers have found, having a high ethical
standard motivates us to pursue corresponding
ethical action. If we do not take such action, we are
likely to engage in reflective thinking and personal
regrets, and we may still engage in delayed
witnessing action. We are also likely to engage in
ethical action when we know and have practised
what to say and do when we witness a prejudicial act
or a racially discriminating situation.
The following are descriptions of the 4-stage model
of active witnessing. Situations and behaviours
indicating the presence of discrimination,
stereotyping, prejudice, and inequitable treatment
serve as the social context of witnessing.
Stage 1. Dis-witnessing
The key words to describe dis-witnessing are:
blocked awareness, disengagement, avoidance,
dismissal, and denial. In dis-witnessing, one is either
unaware of the discriminating or inequitable
situation or disengaged from the process of
witnessing and thus not assuming a participant role.
It may or may not be a conscious choice of the
observer. Dis-witnessing includes at least three
phases or types of disengagement from the
witnessing process: (a) unawareness, (b) counterwitnessing, and (c) ambi-witnessing4 .
Three types of dis-witnessing are described briefly as follows:
Type 1: Unawareness (Not Knowing): One does not to recognize
the prejudicial or inequitable nature of the present situation. Nor
does one acknowledge the existence of the victim or the
oppressor/offender, which in effect blocks the development of
empathy for the victim. Unawareness precludes the act of
witnessing accompanied by reflective and critical thinking and
corresponding action. Unawareness can be due to ones limited
cognitive maturation, cultural conditioning, and personal
inexperience. It can also be part of social conspiracy to block the
societal members collective awareness of the current racism.
Type 2: Counter-witnessing (Knowing but Denying): This is an
active attempt to disengage oneself from witnessing a prejudicial
situation. After an initial awareness, one chooses to avoid
emotional and interpersonal involvement in this situation. The
initial awareness is often short-lived or killed, and one chooses
not to observe and reflect on the event. One blocks the further
development of awareness by effectively utilizing various
disengagement tactics, such as: minimizing, dismissing, denying,
or ignoring the significance of the event, and suppressing
empathy for the victim or silencing ones inner voice of
conscience and compassion.
Type 3: Ambi-witnessing (Conflict between Denying and
Acknowledging): This is a transition state between witnessing and
dis-witnessing. Ambivalent feelings and psychological oscillation
exist around the themes of inner conflict, such as: (a) knowing vs.
not knowing any more (i.e., sustaining attention and recognizing
the serious nature of the present event vs. momentarily noticing
and quickly disengaging), (b) feeling vs. self-silencing (i.e.,
allowing oneself to have strong feelings about the situation vs.
4
The first is the phase of unawareness or not knowing

that someone is expressing prejudice or exercising
discrimination). The second is the phase of having
some
awareness
but
avoiding
further
acknowledgment of the critical situation by tuning
out or minimizing the serious nature of the situation,
thus reducing ones ethical responsibility or
potential guilt for inaction and abandonment of the
victim. The phase of ambi-witnessing is
characterized by ones inner conflict in conscience.
One goes back and forth between disengagement
and involvement. To witness or not witness, this is
the question.
Stage 2: Passive witnessing
The key words to describe passive witnessing are:
covert or private responding, silent witnessing, and
preparation for active witnessing. This is the stage of
making commitment to witnessing. One consciously
takes a moral and ethical stance toward the
discriminatory aspect of the event, and internally
disagrees with the discriminating attitudes and
behaviour of the offender. However, at this stage,
witnessing is not accompanied by overt behavioural
response.
One is actively engaged intellectually and
emotionally in this reflective process, and responds
covertly in the forms of self-talk, emotional
reactions, empathy for the victim, and desire to
confront the offender and to rectify the situation. An
example of self-talk is: This is awful. This person
has no right to make such a comment. I cannot
accept it, and its not true! This covert process, at
this point, is not translated into corresponding
concrete and timely action yet. One externally
appears silent and inactive, except certain non-verbal
expressions indicating concern, upset, and
disagreement, while one mindfully witnesses the
situation and is actively engaged in covert
responding.
However, passive witnessing may not be necessarily
followed by immediate overt action. One may be
feeling incapable of taking action, or consciously
choose not to act on the awareness for various
reasons. Certain inhibiting factors may be operative,
such as social anxiety (e.g., fear of criticism and
retaliation, drawing others attention), lack of selfconfidence, lack of behavioural competence (i.e., not
knowing specifically what to say or do), negative
silencing or invalidating such feelings, (d) getting involved vs.
self-distancing (i.e., feeling responsible to get involved and
oppose discrimination vs. rationalizing silence and
disengagement), and (e) knowing and witnessing vs. knowing and
not witnessing (i.e., making commitment to witnessing and acting
on the situation vs. being aware of the present event but
disengaging from further mental involvement).
past experience of confronting others, and

calculation of what will be gained and what will be
lost from taking a risk of expressing concerns and
disagreement. Similar to Stage 1s ambiwitnessing, one may experience ambivalence about
moving to the next stage of active witnessing which
requires more emotional commitment, risk taking,
and possibility of further involvement and becoming
a primary instead of secondary participant of the
scene.
Stage 3: Active witnessing
The key words to describe active witnessing are:
putting awareness into action, overt behavioural
responding, commitment to expressing objection or
non-support to the offender, conveying empathy and
support for the victim, and optional delayed active
witnessing responses (e.g., confronting the offender
out of the immediate context or writing a letter of
complaint).
At the active witnessing stage, one goes beyond
passive witnessing. Awareness and ethical
commitment are put into deliberate action. One
expresses disagreement with and opposition to the
offender, shows support for the victim, approaches
the third party seeking help and intervention, and
involves and encourages other witnesses to jointly
intervene with the situation. One acts on ones own
reflections, sense of justice and social responsibility.
One also uses moral and ethical judgment, empathy
for the victim, and ones commitment to a
humanitarian cause and the well-being of others.
Active witnessing can be an immediate or delayed
response to the event. While remaining in a passive
witness role in the immediate situation by default or
by choice, one may eventually proceed to take some
kind of action, such as approaching and consoling
the victim, reporting the witnessed event to an
administrator, and creating a forum for discussion
about the incident.
Stage 4: Ethical witnessing
The key words to describe ethical witnessing are:
ethical social action, recognizing social injustice and
taking action at a social level for confronting and
educating others, challenging institutional racism
and other forms of discrimination and inequity, and
becoming an agent for societal and institutional
change.
In ethical witnessing, one moves beyond witnessing
and responding to a particular social situation, and
engages in ethical social action. One challenges and
tries to change the social or institutional system.
Ethical witnessing includes concrete action and
sustained activities to practise prejudice reduction.
Ethical social action is performed individually, and
also collectively by a group of committed
individuals. It serves the purposes of: (a) raising

social awareness, (b) educating and empowering the
public, (c) taking leadership in anti-racism and antidiscrimination movements, (d) engaging in research
to investigate relevant subjects to deepen our
understanding and to stimulate positive social
change, (e) preventing interracial or inter-ethnic
conflicts, and (f) facilitating collective efforts to
eradicate racism and other forms of discrimination,
among other things.
Ethical witnessing inevitably mobilizes societal
change both at a grassroots level through personal
influence, and also at an institutional level. That is, a
personal stance of ethical witnessing can be
expanded and transformed into a movement to cause
systemic change and heightened global awareness
and collective commitment to creating a better
society. This change process can be enhanced when
the practitioner of active witnessing holds and
exercises his/her institutional, organizational, or
political power.
A Brief Overview of the Anti-racism

Response Training (A.R.T.) Program
In this section, I will briefly describe how the A.R.T.
Program is implemented. I hope to convey to the
audience the value, practicality, and wide
applicability of this model of witness-centred and
action-based skills training designed for empowering
potential witnesses.
The A.R.T. Program is based on an interpersonal
competency expansion model, similar to the
ExcelL training model developed by Westwood,
Mak, Barker, and Ishiyama (1997), all of whom are
present at this conference. The primary focus of the
A.R.T. Program is on cultivating a self-identity as an
active witness, and developing, expanding, and
refining verbal and non-verbal skills and cognitive
competencies, in responding to racial, ethnic, and
cultural discriminations in interpersonal contexts.
The unique feature of this social competence
expansion method is its strong emphasis on active
witnessing as discussed earlier. Have you ever
witnessed but not acted against others racist
remarks, ethnic jokes, or unfair treatment of
minorities at home, school, or work, or in public
places? Have you ever felt regretful afterwards?
Have you ever wished you had known exactly what
to say and how to act in such situations? The Antiracism Response Training is designed to expand
participants response repertoire and vocabulary to
help them combat prejudice and discrimination in
concrete ways5 .
Here is a quote of a 13-year old high student who was
interviewed after an A.R.T. session. He said: It helped me see
5
Needless to say, the training designed for bystanders

will also be effective to prepare potential victims of
discrimination to respond actively and to prevent the
participants from being offenders. Also, active
participation in the training is enhanced by the
participants altruism (i.e., their positive desire to
help others and contribute to the betterment of
society and workplace). Further, it includes practice
scenarios wherein prejudice is expressed from a
minority group to the majority and between
minorities, which reduces the development of a winor-lose sentiment. The majority group is not set up
to be always bad guys. Instead, anybody can
potentially be an offender and a victim.
The core of the Anti-racism/anti-discrimination
Response Training (A.R.T.) Program protocol
consists of six 1-hour sessions, which uses: (a)
watching and reflecting on a videotaped interview in
which an individual discusses his/her experience of
racial discrimination, (b) learning key phrases and
sentences and using videotaped scenarios for
practising anti-racism responses both covertly and
overtly, (c) role playing racially and ethnically
discriminatory situations, using practice scripts and
participant-generated ones, (d) debriefing and
sharing personal reflections, and (e) making a
personal implementation plan for practising antiracist responses in real life situations, followed by
personal sharing and reporting success stories to the
group.
Here is one of the practice scenarios used in the
training.
Situation 1: A native student, Pat, and the purse
A native student, Pat, is from a nearby Reserve. He
is visiting his native friend, Joey, living in town.
They are watching a young hockey team practise in
the arena at a local community centre. Pat moves
over to a next bench to have a better view of the
players. A mother and her 10-year old daughter are
sitting there. The mother picks up her purse from the
floor and puts it between her and the daughter. She
says to her daughter:
"You have to watch out for these Indian kids. They
start stealing when they are young, you know."
Participants receive an assortment of response cue
cards. They read the response sentence stems, and
may add their own words to have longer responses
what victims were feeling although I never had received major
racist attacks against me. Ive seen it before. And, I often
wondered: Oh, that poor kid. It [todays A.R.T. session] just
helped to see what it felt like for the victims themselves to hear
that kind of stuff being used against them. And, its good to hear
what kind of phrases to use in that situation to make the victims
feel better.
to a given scenario. A practice scenario is read out

loud by the facilitator or a volunteer participant.
Also, they practise their responses and try their
preferred variations. Videotaped skits, such as the
one above, are also used. Participants are
encouraged to combine several cue card responses to
have their own response combo of the day. They
also benefit from behavioural coaching, modelling,
and supportive group feedback.
There are ten response type categories, such as
assertive interjections, calling it racism or
discrimination, questioning the validity of
generalization, and expressing empathic support
for the victim among other things. Here are some
examples of anti-racism responses, extracted from a
pool of over 100 response stems:
Wait a moment.
I cant believe you are saying this.
Its not fair.
Always? Everybody?
Ouch! That hurts.
Could you repeat what you have just said?
if each of those ten ants can do the same. And so on.

The chain reaction of social change can start here,
right where we are. This is the premise of the Antiracism Response Training Program.
To create a social climate in workplace or anywhere,
we need to pay close attention to peoples
experiences of prejudice and discrimination and
social and institutional forces to support and
perpetuate racism and to reinforce dis-witnessing
and to silence bystanders. Concerted effort needs to
be made to eradicate racism and to promote the
appreciation of cultural diversity and practise
equitable treatment of minorities whose voices tend
to be silenced or neglected. Such prejudice reduction
attempts need to take place concurrently at
individual, institutional, societal, and government
levels. Individual and collective effort and
commitment to this goal is a must for collective
survival and maximization of human resources.
Mobilizing our active witnessing ability and
engaging in ethical social action is therefore the key
to societal maturation and collective enlightenment.
Address for Correspondence
The aim of the A.R.T. Program is to move

participants from the stages of unawareness and
passive witnessing toward active witnessing and
ethical witnessing with social action. The A.R.T. is a
practical, hands-on type approach to helping
participants learn and practise concrete anti-racism
and anti-discrimination responses, increasing their
empathy and compassion for the victim of
discrimination, and encouraging further social
action.
F. Ishu Ishiyama, Ph.D.

Associate Professor of Counselling Psychology
David Lam Chair in Multicultural Education
Department of Educational and Counselling Psychology and
Special Education
Faculty of Education
Although the Program does not directly address

institutional racism, I believe that collective efforts
to reduce prejudice will begin to take place in the
work place where the workers have participated in
the training and where active witnessing has
become a group norm to support each other in
fighting racial discrimination and prejudices.
Further, the A.R.T. skills are highly transferable to
other situations where personal assertiveness and
critical thinking need to be put into action and
offensive and discriminating behaviours be
challenged and corrected.
Finally, please let me say this to conclude my
speech:
Active witnessing is everyones choice and
responsibility. It can help build a better community
of the human race, based on mutual respect and
commitment to humanity. If one active witness can
encourage and empower ten other individuals to also
become active witnesses in one year, it is the power
of ten each year. Please visualize this. If one small
ant can show the right direction to ten other ants, and
Workplace bullying - A case of moral panic?

Duncan Lewis
Business School, University of Glamorgan, Wales, U.K.
Abstract
Workplace bullying has emerged rapidly as an
organisational phenomenon over the last 5-10 years.
This paper considers how trade union respondents
employed as lecturers in further and higher
education colleges and new universities in Wales
perceive bullying and how this perception is formed,
based on a variety of information sources. This
paper seeks to illustrate how different information
sources impact on respondents experiences and
beliefs as to possible causes of bullying and
considers whether any evidence exists to perceive
bullying as a moral panic. Despite union, employer
and media attention to workplace bullying, evidence
suggests that these sources have little impact on
respondents experiences and beliefs. At best these
sources appear to act in an indirect way helping to
weave a social construction of bullying.
By
contrast, the information provided by colleagues
appears to provide the strongest component in the
social construction process, which is important in
understanding such a complex phenomenon as
workplace bullying. The use of hierarchical cluster
analysis illustrates how bullying is viewed relative to
other constructs such as sexual and racial
harassment and sexual discrimination. The results
of this study indicate that perceptions of bullying are
at least in part, a product of gender, age,
employment status, length of service and education
sector.
Keywords
Workplace Bullying; Moral Panics; Culture of fear;
Hierarchical Cluster Analysis; Further/Higher
education; Gender.
Introduction
The emergence and growth of workplace bullying
within management and organisational literature has
developed rapidly in the mid-to-late 1990s. This
swift development has been seen in a number of
countries including the UK, Australia, Germany,
Norway, South Africa, Japan and more recently the
U.S.A. Within some of these countries there is a
perception arising from commentators such as the
media, academia and trade unions that workplace
bullying is widespread in organisational life. In a
recent study of over 5,000 people funded by the
British Trade Union Council (TUC), evidence

presented suggested that 1 in 10 people were bullied
at work (Cooper & Hoel 2000 TUC Press release).
Such reports have continued to emerge in the last 5
years with some cases reaching litigation where
awards for victims reach hundreds of thousands of
pounds (see for example IDS Employment Law
Supplement 76). Yet despite the rapid emergence of
what is in reality a relatively newly reported
organisational phenomenon, few commentators have
considered the role and impact of the information
providers in the social construction of it.
Aims
This paper reports on one element of a larger study
into workplace bullying amongst post further
education colleges and new universities in Wales.
This paper has four distinct aims. (1) To investigate
whether workplace bullying could at least in part be
classified as a moral panic. (2) To examine how
different information providers impact on
respondents experiences of workplace bullying. (3)
To examine the relative position of workplace
bullying to other workplace conflicts such as sex
discrimination and sexual harassment. (4) To gain
an awareness of how respondents perceive
workplace bullying.
These aims will provide
valuable evidence as to how respondents construct a
body of knowledge in a relatively new phenomenon.
Furthermore, this paper will gain an insight into how
different influences impact on the construction of
peoples perceptions.
Features of Workplace Bullying

One of the major difficulties facing researchers and
commentators of workplace bullying lies in its
definition. This is partly conditioned by the emotive
language used to describe it. Headlines such as
Beware the bully and the violence of silence
(Computer Weekly 1999), Torrent of tears behind
the seasons (Marketing Week 1999), Bullying of
clergy is on the rise says union (Daily Telegraph
1999) and The new breeding ground for bullies
(Professional Manager 1999) are but a minutiae of
headlines designed to grab a readers attention. At
least part of the reason for such headlines lies in the
origin of the term bullying which is most closely
associated with the school playground. Further
complications exist in using the designation of
bullying as this differs geographically. In the UK,

Australia and parts of Scandinavia (for example
Norway), the term bullying is widely used, although
not exclusively (see for example Randall 1997;
Einarsen 1998; McCarthy, Sheehan, Wilkie and
Wilkie 1998; Hoel, Rayner and Cooper 1999; Lewis,
1999). By contrast, other parts of Europe use the
term mobbing (see for example Zapf, Knorz and
Kulla 1996; Leymann and Gustafsson, 1996) while
in the United States the terms employee abuse and
emotional abuse are used (see for example Bassman,
1992; and Keashly, 1998 respectively). It is clear
therefore, that the origins and meanings given to the
term we will call bullying is a breeding ground ripe
for confusion and interpretation. The studies of
bullying referred to above all have subtle nuances in
terms of definition yet have common features mainly
surrounding the ideas of bullying being intentional
and used as an abuse of power. It is Einarsen (1999)
who perhaps provides a useful definition of bullying
as:
all those repeated actions and practices that are
directed to one or more workers, which are
unwanted by the victim, which may be done
deliberately or unconsciously, but clearly cause
humiliation, offence and distress, and that may
interfere with job performance and/or cause an
unpleasant working environment (Einarsen 1999,
p.17)
Whilst this definition is easy to understand it does
provide an opportunity to fit a wide array of
workplace behaviours under the broad heading of
bullying which has not been solely the domain of
the popularist media. Trade unions, professional
bodies and employer associations have also been
enthusiastic to comment, each perhaps with differing
intentions.
Trade Union response

For trade unions, at least from an U.K. perspective,
their role and demise in power has changed and will
continue to change (see Monks 1998 for example).
Decline in membership amongst traditional
industries and the reluctance of new service industry
employers and employees to embrace collective
representation has seen an increasingly marginalized
role for trade unions. Furthermore, the adoption of
human resource management styles of outsourced
and individualised employment contracts has further
seen the need for trade unions to employ a
creativeness in an attempt to re-establish a
workplace role. It is not unrealistic to see how
adopting a proactive role of champions of the
bullied enables a partial re-invention of the trade
union role. Coupling this role with the financial
awards handed out by the courts to victims of
bullying could draw trade unions to the attention of
potential members (although only anecdotal,
perceptions exist that the UK is becoming more
litigious following the American model). Again, in

a UK context, the participation of trade unions in
attacking workplace bullying has been well
documented with unions such as UNISON, the
Manufacturing, Science and Finance Union
(MSF), the Association of University Teachers
(AUT), the National Union of Teachers (NUT), and
the Royal College of Nursing (RCN) prominent in
this regard. Certainly being seen to be proactive has
provided trade unions with an opportunity to gain
column inches which have been lost to them in the
changing industrial landscape which is postThatcherite Britain.
Organisational and professional body

response to workplace bullying
On the counter-balance of the employer-employee
relationship, organisations have also contributed to
the social construction of workplace bullying.
Given that trade unions and the employment
tribunals have played their proactive part in the
phenomenon, employers have been forced to follow
suit through training and policy interventions.
Whether or not this is from the standpoint of
benevolent paternalism remains untested, yet a
failure to mitigate potential litigious action or to be
cited as an employer that fails to deal with such a
social unpleasantness as bullying, could cost an
organisation dearly. Furthermore, having seen a
distinct demise in trade union power over the last 25
years, some employers would need to counteract a
potential trade union recruitment drive. From both
an employers and professional bodies standpoint, it
appears that a climate of culpability now exists
where professionals from nurses to teachers are
faced with a questioning of their professional
standards. Such a backdrop presents an environment
in which trade unions, employers and professional
bodies are key actors in the discourses encircling
workplace bullying.
Academic Research
We have already identified that the language and
discourses surrounding workplace bullying are
sufficiently broad to enable a different spin to be
placed upon it. Whilst trade unions and employers
have their own rationales for involvement in the
subject, academics have approached the topic in the
form of investigative enquiry largely, although not
exclusively, to discover cause and effect.
This
paper cannot present a neatly packaged literature
review and to this end, readers are referred to two
special edition journals (International Journal of
Manpower Vol. 20 no. 1/2 1999; European Journal
of Work and Organizational Psychology Vol. 5 no. 2
1996). Within these and other pages, writers present
both qualitative and quantitative data that suggest
that bullying is indeed prolific in organisations.
Typically, studies cited in the journals above, note
culture, poor leadership, downsizing, stress and

management style as being potential causes of
bullying. Einarsen and Skogstad (1996) suggested
that gender and age are contributory factors while
evidence from Australia (McCarthy et al 1998;
Sheehan 1998) indicated that organisational change
is often associated with bullying. Some academics
are developing models that enable psychological
profiles to be established for victims of bullying
(Randall & Seigne 1999) which is worrying if used
as a screening tool by employers. Whatever the
research direction of academics interested in this
field, they too are contributing to the discourses and
ought to be mindful of their role in informing an
emergent field particularly in the construction of the
concept.
The concepts of workplace bullying are therefore
fuelled by a number of players each with a vested
interest. Given that much of the evidence for the
existence of bullying is derived from surveys, it is
not difficult to imagine how respondents, fuelled by
a variety of information providers, are able to label
either themselves or colleagues as bullies or victims
from a pick-and-mix of behaviours under a broad
heading of bullying. In one of the few papers to
consider the social representation or common sense
theories of bullying, Liefooghe & Olafsson (1999)
recognise the importance of peoples representations
of the concept we know as bullying. Liefooghe &
Olafsson illustrate the importance of using a variety
of methods to map such representations in order to
explain the different individual and organisational
factors which are believed to influence the bullying
process (Liefooghe & Olafsson, 1999 p.48). Potter
(1996) illustrates the different ways that individuals
represent and create reality through language, which
is analysable by considering the various discursive
practices employed. The rhetoric and discourse of
players such as the media, trade unions, researchers
and practitioners, fuels the construction of different
bullying realities. As such, each of these players
contribute to ever-increasing narratives which can be
drawn on by lay people, who integrate them into
their conceptualisation of the phenomenon. As
Liefooghe and Olafsson (1999) state People may
seek justification of their interpretation by referring,
for example, to a common understanding of what
constitutes bullying.
Moreover, once a
representation is shared, it can have far-reaching
consequences (p.41). As Woodilla (1998) notes,
talk also documents and constitutes worklife as
members make sense of past events or anticipate
future actions (p.31). Despite the numerous sources
of evidence, few writers have considered the reasons
why workplace bullying has become so prominent
so quickly. Could it be the social discourses referred
to by Liefooghe and Olafsson and Woodilla above
or could it be that we are panicking about something
which in reality we know very little about?
The concept of Moral Panics

The concept of moral panics is found in
sociological discourse where the two key
components of labelling and amplification are
paramount considerations. Writers such as Goode
and Ben-Yehuda (1994) describe moral panics as
events that the majority members of a society feel
threatened by as a result of wrongdoers who threaten
the moral order and that something should be done
about such behaviour. Typically, the notion of
something to be done entails tougher rules, policies
and social controls. The numerous cases of moral
panics cited in the sociological literature (Becker
1964; Marshall 1990; Goode and Ben-Yehuda 1994)
typically indicated that the fear or concern generated
by the panic was significantly out of proportion to
the actual threat posed by the actual or perceived
behaviour (amplification). Indeed in some cases, the
threats were completely non-existent or even
imaginary. One of the most well documented
examples of moral panic came from Stanley Cohens
study of youth culture and behaviour (Mods and
Rockers) in 1960s Britain.
Cohens study
attempted to show how media hyperbole
sensationalised and made melodrama out of the
events of their day. Cohen (1972) discovered that
the media were not only likely to inflate headlines
but was also likely to suggest the events would
happen again - Where will they strike next? Such
amplification of a single event was used by the
media to self perpetuate a singular story into a much
larger episode. In Cohens study, a small occurrence
in the South of England involving damage to a dance
hall and beach huts resulted in media from as far
away as the USA, Canada, Australia and South
Africa reporting the event. Cohen observed that as a
result of media amplification, labels were used
which were repeated and sensationalised for a
number of years after the event.
In order to investigate the concept of moral panic,
Cohen (1972) identified 5 principal actors in the
drama:
1. The press whose amplification of events led to
widespread global reporting
2. The public who perceived events as potentially
damaging to society at large (post-war Britain
adults had only recently disposed of ration books
and saw young people as being delinquent)
3. Law enforcement whose punitive and overly
zealous actions were justified on the basis of the
threat faced by society
4. Politicians and legislators who called for greater
penalties to be applied adopting a self-righteous
and vindictive stance
5. Action groups (described by Becker 1964 as
moral entrepreneurs) - evolving social groups
who campaigned for action against the
perpetrators
Amongst all 5 principal actors, labelling and

amplification of events were key components in the
creation of the moral panic. In addition to these
constituent elements, Cohen (1972) added two
further features which help distinguish moral panics:
the creation of folk-devils and disaster mentality.
Folk-devils (deviants) are actors whose actions
create societal harm. Such folk-devils are created
from existing perceptions and then subsequently
demonised
through
standard
stereotypical
behaviours by the principal actors identified above.
Typically, this demonising process uses labelling to
describe the deviants into a common and unified
core of behaviours (for example - yobs; delinquents ;
and hooligans). The disaster mentality encompasses
the belief that the moral panic will result in
overreactions to impending doom and that threats,
brought on by rumours, are over sensationalised.
Therefore moral panics provides us with a degree of
understanding about how social structures, processes
and social changes are tied together by disparate
concepts of deviance, collective behaviours and
social events and movements. Moral panics allow
us to understand how reactions to unconventional
behaviour do not arise simply as a result of rational
and realistic assessments. As Goode and BenYehuda observed from Cohens work, a
phenomenons real or perceived events, threatens
positions, statuses, interests, ideologies and values.
A sense of risk?
As an alternative, although not dissimilar to moral
panics, writers such as Furedi (1998) and Glassner
(1999) present a picture where society is largely
driven by fear with personal safety being
predominant. The evidence presented by these
authors is that society is keen to mitigate against
risk, whatever form that may take. Furedi (1998)
argues that the emergence of expert voices such as
consultants, trade unions and the media, are the
active ingredients in building up societys
imagination, particularly in anxieties over risk which
are some way along a continuum of reality and
possibility. Given that most of society are
represented in one organisation or another it is not
unrealistic to picture how societys members are
influenced by the representations placed on their
thinking by the principal actors referred to by Cohen
above.
Furedi (1998) argues that given societys
predisposition to risk, there is a convenient ignoring
of results that do not fit societys perception.
Society prefers instead to follow the maxim of seek
and ye shall find. There are numerous examples of
panics and fears in society including Bovine
Spongiform
Encephalopathy (BSE) or mad cow disease, child
abuse, designer drugs such as ecstasy, Ebola virus,
AIDS, and the millennium bug. However, the
central feature of many of these cases is the

disproportionate number of cases to actual ones
along with the overstated perceptions of fear. Whilst
AIDS, BSE or any of the above issues are not to be
treated lightly, the parallels between small numbers
of case evidence and widespread belief or
perceptions of existence are worrying. A secondary
feature of Furedis argument is that events which are
hidden or invisible are represented as the tip of the
iceberg approach (p.40) whereby what society
cannot see is more relevant than that which can be
seen. In terms of bullying, this is sometimes found
in the media and trade unions reporting of an event.
The Institute for Personnel Development reported
that one in eight UK workers were victims of
bullying. The methodology used was questionable
with a high street survey poll of 1000 respondents
extrapolated to imply that millions of UK workers
potentially suffered from bullying.
Within organisations, the sense of risk has become a
well-developed strategy whether it is in health and
safety or in policy provision to mitigate against risk.
Certainly, workplace bullying has taken on a risk
role by trade unions and HR professionals.
Societys requirement to believe the victims of
unpleasant events is argued by Furedi (1998) to be
simply absurd, given that organisations are now
required to hold almost judicial level inquiries in
evidence gathering against perpetrators. Society and
organisations particularly, have become so
preconditioned against anything that falls outside of
norms of behaviour; victims have to be believed.
Unquestionably, an organisation would fall into a
trap of a failure of a duty of care under U.K. health
and safety legislation if it neglected to do so. The
litigious actions of individuals and trade unions who
are able to draw on a wide variety of situations
which embrace the broad definitions under which
bullying falls, are forcing organisations to take the
views of victims seriously, whether or not there is
any truth in the allegations made. Is there evidence
that bullying simply falls into the category of victim
or complaint culture, or is it real cause for concern?
Either category requires British organisations to take
a more prominent and proactive role in dealing with
workplace bullying. The concepts of risk and panic
discussed by authors such as Furedi (1998) could be
explored for workplace bullying by examining the
impact of different information sources.
Methodology
Partly in an attempt to explore the potential
relationship between bullying and a variety of
different information sources, a broad survey was
undertaken of college and university lecturers who
were members of a trade union (National
Association of Teachers in Further and Higher
Education - NATFHE) in Wales. This employment
sector had seen major changes in employment
practices and contractual agreements, which could

be perceived as bullying behaviour. The evidence
being presented in the bullying literature pointed to
an ideal environment for research with both
employers and trade unions laying the blame for
failure to embrace change on each other. This
environment encompassed the whole gamut of
possible reasons for bullying to exist as outlined in
the existing research literature.
Members of the union were sampled from both
further and higher education covering a total of 32
different institutions. From a list of 3612 Welsh
members, a ratio of 1 out of 7 of the Welsh
membership was sampled giving a high response
rate on the initial trawl of 49.13% rising to 50.3%
(N=415) after using a follow up procedure. In order
to permit triangulation, data was also gathered from
a variety of sources: interviews with personnel
officers and trade union officers (Key Informants)
and in-depth interviews with victims/targets of
bullying. This approach would provide a complete
picture of the nature and extent of bullying in a
specific UK employment sector. For the purposes of
this paper, evidence is presented from the postal
survey only which attempted to examine the reasons
for the emergence of workplace bullying in the
1990s and to discover whether or not it is the sort of
phenomenon that some would have us believe.
Constructs Studied
In order to ensure that bullying was not overtly
prominent to the recipients of the survey and to find
its relative position to other constructs, it was
decided to investigate a broad spectrum of abuse,
discrimination and promotion based conflicts which
would be representative of the concerns of 1990s
workplaces. The other constructs were: Sexual
harassment; Racial harassment; Sex discrimination;
Unfair promotion opportunities; and Reduced
promotion opportunities.
The survey discovered how respondents had heard
and read of the constructs and what impact these
different information sources had on their
experience of them. The survey also used these
different information sources to discover if they had
different or similar impacts on a list of factors that
may be believed to cause bullying. A central feature
of this research was to discover whether increased
reporting of an event would lead to perceived
increases in incidents. Also investigated was the
idea that opinion formers play a key role in the
social construction of bullying. In particular, this
focus allowed evaluation of the strength of any link
between the reporting of bullying and its perception.
The best way to evaluate this link between reporting
and perceptions was to compare the effect on
perceptions on the output of the media and trade
unions with the effect on perceptions on information

supplied by work colleagues.
Data Analysis Techniques

As this research aimed to discover how the stories
emanating around workplace bullying were being
constructed, it was decided that it was irrelevant to
attempt to measure statistical analysis for proving
cause and effect between variables. Instead, it was
decided that cluster analysis, a multivariate
procedure for detecting groupings in data, would be
used to cluster variables into related variable
groupings.
This technique has been used
successfully to identify classifications of groups or
variables into different groupings (see for example
Hofstedes (1998) classification of subcultures).
Cluster analysis, unlike discriminant analysis, makes
no prior assumptions about differences within a
population, which makes it an ideal technique for
this exploratory research. The hierarchical clusters
are displayed as a dendrogram or tree diagram. The
dendrogram lists vertically the 138 variables for the
6 constructs being investigated. By viewing the
dendrogram from right to left, we discover how the
total population divides itself into smaller and
smaller clusters.
Validity and Reliability

In order to provide validity and reliability for the
sample, the data were randomly divided into two
sub-samples. By undertaking the same clustering
procedures on each sub-sample and comparing the
descriptive statistics of the two sets of clusters, it
was possible to identify the degree to which similar
clusters were identified. The original data set was
split into 2 sub-samples of 208 and 207 cases
respectively. Of the 23 bullying variables, 21 of the
23 appeared in the same cluster sets with only 2
showing any variance. Even here, the 2 variables
concerned remained within the same overall cluster
grouping. This suggests that a high degree of
agreement was found between the two sub samples.
Given the cross-validated cluster solution, the subsamples were combined and re-cluster analysed.
Research Results
The results presented here are drawn from a
hierarchical cluster analysis examination of 23
variables in the postal survey of this element of the
research. The 23 variables were presented to
respondents in 5 categories (see appendix 1) Each
variable was applied to each construct (bullying;
sexual harassment; sexual discrimination; racial
harassment; unfair promotion; and lack of
promotion) in the form of a matrix. The purpose of
the hierarchical clustering technique was to examine
how these variables were clustered together. The
research sought to identify homogeneity of inter
construct variables. For example, how do bullying
variables cluster compared to sex discrimination

variables; or how do racial harassment variables
cluster with sexual harassment variables. Or, is
there homogeneity between reading about bullying
in newspapers with reading about sex discrimination
in newspapers? Additionally, the research aimed to
identify homogeneity of within construct variables
(one bullying variable against another bullying
variable).
For example, is there homogeneity
between reading about bullying in newspapers and
experiencing bullying? Or is there homogeneity
between experiencing bullying and identifying a
potential cause for bullying? By taking all 23
variables for all 6 constructs, a total of 138 variables,
it is possible to identify whether homogeneity
existed or not both within each construct and across
constructs. The output generated by the SPSS
statistical analysis software package for this cluster
analysis extended to a dendrogram (see below), an
agglomeration schedule, and a proximity scale
(neither items included with this paper due to space
constraints).
The dendrogram indicated 2 separate clusters labelled cluster 1 and 2 and were further subdivided
into 2 separate sub-clusters.
Cluster 1
The largest sub cluster (labelled 1A) contained
variables largely related to sex discrimination,
sexual and racial harassment. The clustering of these
variables revealed respondent experiences and
causes of these constructs grouped with information
variables from two information sources namely
colleagues and organisational literature. However, it
was only sex discrimination that had a strong
association between hearing about information on
this issue from colleagues and experiences of sex
discrimination. Both sexual and racial harassment
presented a much weaker association.
Other
information sources such as newspapers and the
popular media along with information provided by
the trade union were not linked to experiences or
causes of these issues. These information variables
were found in cluster 2. This clustering result
presented the first indication that only certain
information sources are linked to respondents
experiences and their beliefs as to what causes sex
discrimination or sexual or racial harassment.
The second sub cluster (1B) contained the majority
of variables relating to experiences and causes of
bullying. For bullying, the only information source
to be found in the same cluster was colleagues with
no media or trade union variables present which was
a similar result to cluster 1A. However, the fact that
bullying variables were clearly differentiated from
the sex and race variables suggested that bullying
was viewed as a separate issue from the sex and race
constructs. This isolating of bullying variables from
more well known sex and race constructs provided

an indication of where and how bullying was viewed
by this particular group of respondents.
Cluster 2
Cluster 2 contains 3 sub clusters. The first and
second sub clusters (2A and 2B) contained variables
relating to the media, trade union and issues of
policy primarily for bullying and the sex and race
constructs. This clearly indicated that information
sources are isolated from experiences and causes of
bullying, sex discrimination, and sexual and racial
harassment. The one clear exception to this was the
information provided by colleagues.
Cluster 2C contained the majority of variables for
the 2 promotion constructs as well as the variables
relating to action on all 6 constructs by the trade
union and the respondents organisation. This
clustering result indicated that the 2 promotion
issues were totally separated from the other
constructs. However, this was the first occasion that
information variables on an issue were located with
experiences and causes of that issue, although the
clustering remains weak.
What these first tentative clustering results indicated
was that bullying was perceived as being in the same
cluster group as the sex and race issues and not
alongside the 2 promotion constructs. This may give
an indication that bullying is more associated with a
personal conflict and less likely to be associated or
labelled alongside something that could be classed
as a product of organisational life brought on by
downsizing for example. Furthermore, the absence
of information provided by the media and trade
unions alongside respondents experiences and
possible causes of bullying indicates that the panic
or fear alluded to authors such as Furedi (1998) is
not proven. However, such superficial analysis and
conclusions do not present a sufficiently detailed
picture. To explore this relationship further, the data
was clustered by gender, grade, further versus higher
education etc. What follows is a summary of how
these different demographic groups classify the 138
variables. Due to the limitations of space,
dendrograms for the remaining demographic groups
are not presented but are available on request from
the author.
Group 1 Males and Respondents aged over

40
In terms of these respondents, there is no evidence
that variables were clustered significantly differently
from the sample as a whole. Both groups appeared
to cluster bullying variables in the same overall
grouping as sex and race constructs but as a separate
issue from them. The second cluster contained all
the information variables such as the media, books,

* * * * * * H I E R A R C H I C A L
C L U S T E R
A N A L Y S I S * * * * * *
Dendrogram using Ward Method

Rescaled Distance Cluster Combine
C A S E
Label
Num
RHA4FUND
RHA4PICC
SH4FUNDS
SH4PICC
RHA3IHAV
RHA3OBSV
RHA4POWR
SH3IHAVE
RHA3COLG
SD4FUNDS
RHA3MORG
SD4PICC
RHA4STRM
SH4STERM
LPR5STAF
UPR5STAF
SH3COLGS
SH3OBSRV
SH3MYORG
RHA1COLL
BAW5STAF
LPR2INTL
UPR2INTL
RHA2INTL
SH2INTER
SD2INTNL
BAW2INTL
LPR5NATF
UPR5NATF
LPR5ECDI
UPR5ECDI
BAW5ECDI
RHA4TRIN
SH4TRAIN
SD4TRAIN
SD4POWER
SH4POWER
SD4STERM
RHA4VALU
SH4VALUE
SD4VALU
BAW4VALU
SD3IHAVE
SD3OBSRV
SD3MYORG
SD3COLGS
SD1COLLE
SH1COLL
BAW3IHAV
BAW3MORG
BAW3COLG
BAW3OBSV
BAW1COLL
BAW4POWR
BAW4TRAI
BAW4FUND
BAW4PICC
BAW4STRM
BAW1MEDI
BAW2NEWS
RHA2NEWS
SH2NEWS
SD2NEWS
RHA1MEDI
SD1MEDIA
SH1MEDIA
LPR2NATF
UPR2NATF
LPR1NATF
UPR1NATF
RHA2NATF
SD2NATFH
SH2NATFH
RHA1NATF
SD1NATFH
SH1NATFH
BAW1NATF
BAW2NATF
RHA5STAF
SD5STAFF
SH5STAFF
RHA5ECDI
SH5ECDIR
SD5ECDIR
SD5NATFH
SH5NATFH
RHA5NATF
BAW5NATF
LPR1MEDI
UPR1MEDI
LPR2NEWS
UPR2NEWS
RHA2BOOK
SD2BOOKS
SH2BOOKS
LPR2BOOK
UPR2BOOK
BAW2BOOK
LPR2GENL
UPR2GENL
SD2GENRL
SH2GENER
RHA2GENL
BAW2GENL
LPR4STRM
UPR4STRM
LPR4PICC
UPR4PICC
LPR4FUND
UPR4FUND
LPR4VALU
UPR4VALU
LPR4POWR
UPR4POWR
LPR4TRIN
UPR4TRIN
LPR1COLL
UPR1COLL
LPR3MORG
UPR3MORG
LPR3IHAV
UPR3IHAV
LPR3OBSV
UPR3OBSV
LPR3COLG
UPR3COLG
LPR5SHLD
UPR5SHLD
RHA5SHLD
SD5SHLD
SH5SHOLD
BAW5SHLD
LPR5SURV
UPR5SURV
RHA5SURV
SH5SURVY
SD5SURVY
BAW5SURV
0
5
10
15
20
25
+---------+---------+---------+---------+---------+
59
60
105
106
56
58
61
102
55
82
57
83
62
108
45
137
101
104
103
47
22
29
121
52
98
75
6
43
135
42
134
19
63
109
86
84
107
85
64
110
87
18
79
81
80
78
70
93
10
11
9
12
1
15
17
13
14
16
2
8
54
100
77
48
71
94
30
122
26
118
53
76
99
49
72
95
3
7
68
91
114
65
111
88
89
112
66
20
25
117
31
123
50
73
96
27
119
4
28
120
74
97
51
5
39
131
37
129
36
128
41
133
38
130
40
132
24
116
34
126
33
125
35
127
32
124
44
136
67
90
113
21
46
138
69
115
92
23
Cluster 1A - Variables relating to

experiences and causes of sexual and
racial harassment and sex
discrimination.
Cluster 1B - Variables relating to

experiences and causes of bullying.
Only 1 information variable on
bullying i.e. colleagues is clustered
in this group
Cluster 1
Cluster 2
Cluster 2A - Variables
relating to information on
bullying, sexual & racial
harassment and sex
discrimination provided by
media and newspapers
Cluster 2B - Variables
relating to information on
all 6 constructs provided
by trade union
Cluster 2C - Variables relating to

information on all 6 constructs provided
by books and journals. All variables
relating to experiences and causes of the 2
promotion constructs.
Figure 1 Dendrogram for the total population for all

6 constructs
magazines etc. along with the experiences and

causes of the 2 promotion conflicts. This clustering
result replicated that for the whole sample and
tentatively suggests that gender and age are
demographic elements likely to influence
perceptions of bullying.
their experiences of bullying to the causes of

bullying. This may be due in no small part to their
contractual position where the causes of bullying are
derived from numerous information sources but their
experiences of bullying are isolated.
Other statistical measures

Group 2 - Females; respondents aged
under 40; full-time lecturers; further
education lecturers
The most noticeable feature of the clustering results
for these groups was that they clustered their
experiences of bullying and the causes of bullying
with a variety of information variables such as the
media, newspapers, magazines, books and trade
union information. This suggests a degree of
homogeneity between information variables and
experiences and causal variables. A second feature
of these groups results was that bullying was
categorised alongside the 2 promotion constructs
rather than sex and race issues. These results may
provide clues as to how information is used
differently by different demographic groups and
furthermore how they see bullying compared to
other issues.
Group 3 Higher Education lecturers

H.E. respondents presented a different dendrogram.
This demographic group also placed bullying
variables in the same cluster as the sex and race
constructs whilst the 2 promotion constructs were
located in a distinctly separate cluster. However,
H.E. lecturers also placed the information provided
by books, journals and magazines in the same
overall cluster as their experiences and likely causes
of bullying. This indicated selectivity in the link
between causes and experiences of bullying and the
numerous information variables available to them.
The fact that H.E. respondents relate their
experiences and causes of bullying to the
information provided by selected information
sources could be reasonably expected given their
access to such information sources. However, what
is not clear is why trade union information is not
associated with experiences and causes.
Group 4 Part-time lecturers

Part-time respondents also presented a unique
clustering picture. One cluster contained the
majority of their experiences of bullying while a
separate cluster contained the causes of bullying.
Part-time lecturers appeared to locate their
experiences of bullying in the same overall cluster as
the sex and race constructs but the causes of bullying
in a separate cluster with the 2 promotion constructs
and alongside information variables such as trade
union, magazines, newspapers and the media. This
suggests that part-time lecturing staff do not link
The hierarchical cluster results clearly indicated that

the populations experiences of bullying and their
labelling of causes of bullying are closely linked to
the information provided by colleagues. In a further
attempt to support such associations, one final
statistical test of association (chi-square) sought to
examine this relationship further.
The results
discussed in brief below are based on r x 2 sample
c2 test of homogeneity. By testing all information
variables against respondent experiences of bullying
it is possible to discover whether associations exist
or not.
In terms of hearing about bullying from a variety of
sources there was some statistical association with
respondents indirect experiences of bullying but
much less so for personal experience. However, the
information provided by colleagues showed a much
stronger association than all other sources. For
example, when asked if there had been cases of
bullying in their organisation, the information
provided by the trade union showed a small degree
of statistical association (c2=13.57, DF=1, P<0.001).
By contrast, when colleagues were the information
source statistical association was much stronger
(c2=66.51, DF=1, P<0.000).
Only the information derived from magazines
(c2=6.70, DF=1, P<0.009) and colleagues
(c2=27.27, DF=1, P<0.000) show association with
the belief that one has personally suffered from
bullying.
These results clearly supported the
findings illustrated by the hierarchical cluster
analysis.
By adopting the same approach in examining the
impact of information variables on the causes of
bullying, the chi-square results again indicated that
information provided by colleagues presents the
strongest association with possible causes of
bullying. However, the aural information provided
by the trade union also shows a stronger association
with causes of bullying than for experiences of
bullying. The broadcast media, newspapers and
organisational literature illustrated the weakest
association.
Discussion
The use of hierarchical cluster analysis enabled the
researcher to classify variables into clusters based on
coefficients of similarity between variables. The use
of the chi-square test of association, although
statistically weaker, was also useful in illustrating

associations between variables. The population
sampled here clearly saw bullying as more akin to
sexual or racial harassment or sex discrimination.
However, this placement of bullying differed by
demographic groups which suggests caution needs
to be exercised when interpreting different
perceptions of bullying.
Although appearing
alongside these better-established work-based
conflicts, bullying was seen by most of these groups
as a separate issue. Not surprisingly, promotion
based constructs such as an absence of opportunity
or being passed over for promotions were very
closely grouped.
What is interesting is that
information provided by the popularist media as well
as trade unions, had a limited relationship with
respondent experiences and causes of bullying.
However, there are exceptions to this. Higher
education respondents clearly linked the information
provided by books, journals and magazines to their
experiences of bullying as well as to what they see
as the causes of bullying. Similarly, for part-time
respondents, they clearly differentiated their
experiences of bullying from the causes of it
possibly as a result of only gaining a partial
perspective on organisational life. These different
results give further proof of the need to exercise
extreme caution when generalising about complex
constructs. The fact that most information sources
are not linked directly to this groups experiences or
causes of bullying appears to indicate that such
information sources are at best only marginally
responsible for the culture of fear as alluded to by
Furedi (1998). The one exception to this is the
information provided by colleagues. Hearing about
bullying, sex discrimination, unfair promotion and
reduced promotion opportunities from colleagues is
consistently located in the same cluster as
respondent experiences such as observing these
issues, being told they exist or personally suffering
from them. The fact that hearing about racial
harassment from colleagues is not linked to
respondent experiences of this issue is not surprising
for this sample given the relatively small ethnic
population in Wales (approximately 40,000). That
hearing about sexual harassment from colleagues is
not linked to experiences of it is also unsurprising.
The very nature of sexual harassment means it is
likely to be internalised by victims rather than
shared amongst colleagues. The data also indicates
there is also a close link between the potential causes
for these conflicts and the respondents experiences
of them. This indicates that lecturers are much more
likely to cluster cause and effect based on either
their own experience or that of colleagues but not on
the information provided by other sources.
Other interesting features discovered from the use of
hierarchical cluster analysis is that different
demographic groups see bullying in different ways.
If you are a male or are aged over 40, you are likely
to see bullying alongside sex and race issues. These
groups are also much less likely to be influenced by
a wide array of information sources. By contrast, if
you are either a female, aged under 40, full-time and
employed in further education, you are much more
likely to perceive bullying based on a range of
information sources and importantly, see it as an
issue more aligned to promotion conflicts. This may
help us understand how and why bullying is viewed
the way it is. The fact that men see bullying as part
of the sex and race issues gives us an understanding
of their perceptions. Equally important is the way
H.E. lecturers divorce popularist media sources from
everything else. Do they see themselves as more
analytical or critical in how they relate cause and
effect? The results appear to suggest so. For parttime staff, there is clear evidence that they see the
causes and experiences of bullying as distinctly
separate, possibly due to their limited insider
knowledge of organisations.
Conclusions
The evidence presented in this paper provides a
mechanism for empirically assessing how workplace
bullying is viewed relative to other workplace
conflicts. This paper has established that a
component of peoples belief that bullying occurs in
their workplace is associated with the reception of
information on the subject from a variety of sources.
The most consistent factor that appears in all the
measures of the perceptions of workplace bullying
as something that happens to others or to oneself is
information supplied by colleagues in the workplace.
Colleagues also play a key role in informing
possible reasons for its occurrence. This finding
alone indicates the need for a more theoretically
sophisticated theory of workplace bullying that goes
beyond notions of panic and fear brought on by
media and trade union reporting, to look at everyday
processes of validation and definition amongst peers.
These findings are supported in both the hierarchical
cluster and chi-square results.
It may well be that the perception of bullying is
partly conditioned by the processes informed by a
variety of information sources. But the full story is
more complex and subtle. As Woodilla (1998) notes,
For new practices to emerge, dominant discourses
must be expanded to facilitate the creation of new
discourses, where members are able to critique their
current workplace conversations as part of creating
new ones (p.49)
Conversations amongst colleagues appears to
indicate that people build up a social reality of
bullying and that it appears that colleagues may
allow people to label themselves in this way. What
remains unanswered however, is whether the stories
of colleagues are poignant anecdotes or one off
experiences? Are these the colleagues who are

pathological in their stories to whoever will listen?
Are colleagues the source of fear and risk in work?
The fear that may exist in organisations, whatever
that fear may be, clearly shows that colleagues are
prominent in the deconstructive accounts they put
forward. We can also state with a degree of
authority that colleagues themselves are not being
informed by these information sources as there is no
evidence of information variables
being clustered alongside colleagues talking about
bullying.
There are also organisational lessons to be learned
here. The fact that trade unions, although prominent
in reporting bullying, are not impacting on
experiences or causes of bullying will probably
come as a degree of relief for those charged with
managerial responsibilities to deal with it. Equally
important is the role and message content being put
forward by trade unions themselves. It appears that
the form and make-up is doing little to impact on
individual members. For organisations, the message
is clear. Bullying, however labelled, constructed or
represented, is perceived to be a real and distinctly
separate issue with perceptions varying amongst the
different actors involved.
We cannot conclude with authority as to whether
workplace bullying is a moral panic or not, although
we can draw some parallels between bullying and
the moral panics literature. The impact of the print
and broadcast media is limited. Action groups such
as trade unions and employers have a limited and
indirect influence on the social construction of
workplace bullying. In the UK at least, there is a
political lobby in favour of legislation. Yet of all the
principal actors involved in this social construction,
it is workplace colleagues that play the most
prominent of roles. If either employers or trade
unions fail to deliver their messages more
successfully than has been measured in this study,
either through investment in training, policy or even
to take the issue seriously, the result could be a very
expensive business indeed both in terms of litigation
and in workplace morale.
Acknowledgements
I would like to acknowledge the help and assistance
of several colleagues who have commented and
advised on this paper. I am particularly grateful to
Professor Ralph Fevre at Cardiff University and to
Emeritus Professor Leonard Minkes at Birmingham
University for their contributions. I would also like
to thank the individuals who have given so
generously of their time in helping complete the
study.
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p.p. 251-275
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International Journal of Manpower, Vol.20.,
No. 1/2, 1999, pp.39-49.
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(eds.) (1998), Bullying: Causes, Costs and
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Beyond
Bullying
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1996, pp225-237
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and Victimization at Work, European Journal
of Work & Organizational Psychology, Vol. 5,

no.2, 1996, pp. 195-210
Newspaper and other articles

Beware the bully, Computer Weekly, 21st October
1999, p.66
Bullying of clergy is on the rise, says union, Daily
Telegraph, 9th December 1999, p.12
The new breeding ground for bullies, Professional
Manager, July 1999, p.10-12
The violence of silence, Computer Weekly, 4th
November 1999, p.49
Torrent of tears behind the seasons, Marketing
Week, September 16th 1999, p.122
Appendix 1
Categories and associated variables
Category
Where have you heard
about the 6 constructs?
Where have you read
about the 6 constructs?
What is your experience

of the 6 constructs?
What causes the 6
constructs?
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
What is being done or

should be done about the
6 constructs?
18.
19.
20.
21.
22.
23.
Variables
Broadcast Media
Trade Union
Colleagues
Newspapers
Books & Journals
Magazines
Union literature
Organisational literature
I have suffered
Colleagues have suffered
I have observed
Exists in my organisation
Short term contracts
Organisational values and
beliefs
Contractual changes
Funding pressures
Power imbalance between
managers and lecturers
Poorly trained managers
There is a union policy
EU directives exist for these
constructs
My organisation has a policy
My organisation should have a
policy
My union should conduct
surveys of these constructs
Building a business case for tackling bullying in the workplace:

Beyond a basic cost-benefit approach
Charlotte Rayner
Staffordshire University Business School, Stafford, England, UK
Abstract
Negative interpersonal behaviour by managers and
colleagues at work has received limited attention to
date. This paper focuses on a specific type of
negative behaviour at work, that of bullying, which
has seen a growth in research in recent years. Much
of this work to date can be characterised as
establishing that the phenomenon exists and that it
has a negative effect on people. In addition,
bullying has been shown to have a negative effect on
organisations as many people leave their jobs in
order to resolve their situation. In this paper,
methods of persuading those in power within
organisations to attend to this issue are presented
and discussed. The concept of incompetences
within organisations is put forward, the effects of
which go beyond a straightforward cost-benefit
approach.
Keywords
Workplace
bullying;
Cost-benefit;
strategic
incompetence; organizational competence
Introduction
The topic of bullying at work presents a nebulous
but developing literature (Hoel, Rayner & Cooper,
1999). Typical within such a new area of research,
issues relating to terminology and the content of the
phenomenon itself are under investigation (e.g.
Keashly, 1998) and represent a growing body of
knowledge (e.g. Barker et al, 1999).
Attention to the area of negative interpersonal
interactions is well overdue. Gary Yukl, in his
review of the leadership literature summarises The
research has neglected forms of influence behaviour
that involve deception, such as lying, deliberate
misrepresentation of the facts, exaggeration of
favourable information, and suppression of
unfavourable information. (Yukl, 1994:237). Blake
Ashforths studies into Petty Tyranny similarly
comment on the absence of research (e.g. Ashforth,
1994).
Overall, there appears to be a high focus within the
management and leadership literature on the positive
aspects of behaviour illustrated by the currently

popular Transformational Leadership style (e.g.
Tjosvold 1995). Such work promotes managers to
use positive behaviours. What is not clear is what
managers should do about any negative behaviour.
We need to undertake further work to acknowledge
negative behaviour within management and
interpersonal interactions at work.
Various studies have included negative behaviour.
Yukl and Falbe, like others using the leader-member
exchange model, applied French and Ravens
descriptors of power which includes coercive power.
Their results indicated a complexity in the dynamics
It is not clear yet how best to conceptualise reward
and coercive power.
Targets were able to
discriminate between influence attributable to these
two power sources ...However there was substantial
overlap in the scales measuring control over rewards
and punishments. (Yukl and Falbe 1991: p 422).
Tjosvold (1995) correctly pointed out that the source
of power is only one dimension in the process How
the power base is used, however, could be quite
critical. The same power base can be used to both
reward and punish(p724). The author would also
add that the focus of the power (e.g. personal
undermining or manipulating task achievability)
may be a further issue. This latter point would be
highlighted by the work of Karen Jehn who
discovered negative effects of conflict on a task
when that conflict was emotional and positive
effects when the conflict was task related in nature
(Jehn, 1994).
Recent studies into conflict from the Netherlands
have provided some insight into its complexity. Van
de Vliert, Euwema and Huismans (1995) utilised
expert raters to judge (in contrived dyadic situations)
the tactics individuals tried to use to persuade others.
This study revealed that people may use not one, but
several methods of persuasion and conflict
management, and that the effectiveness was
determined not by the absolute level of any chosen
tactic, but by the combination of different tactics.
All this contradicts the common view that the
dominant type of conflict handling behaviour is also
the
dominant
determinant
of
behavioural
effectiveness (p277).....the gestalt of components
counts, not the sum of the parts (p278). They

found that problem solving behaviour was
especially effective if a superior combines it with
forcing viz a vis a subordinate (p278).
The author has completed a variety of large studies
that have established an incidence of bullying at
work in the UK (e.g. Rayner, 1997) and a negative
effect for organisations (Rayner, 1999). It has been
rather surprising to see limited attention being paid
in the workplace to this issue, given (to the author)
the obvious costs associated with bullying. It is
possible that practitioners are well aware of the
complexity of this area and need further arguments
in order to clarify the case for taking action.
This paper, therefore, sets out to clarify some of
these costs. A conventional cost analysis of some
aspects of the negative effects of bullying will be
considered. Further effects on the organisation will
then be discussed, and the issue of incompetence in
organisations discussed. Finally the case for and
against tackling bullying at work will be presented
and the need for further research outlined.
Exit costs from Bullying at work

Incidence studies in the UK, Norway and Australia
have established that many people consider
themselves to have been bullied at work (Rayner,
1998; Einarsen & Skogstad, 1996; McCarthy,
Sheehan & Kearns, 1995). As with children who are
bullied in schools, research has shown a similarity
between incidence levels in Britain and Australia
(Boulton & Underwood, 1992; Rigby et al, 1997).
For adult bullying at work, we can consider the
incidence as being between 10% and 20% (Hoel &
Cooper, 2000; UNISON, 1997). In addition, British
studies have examined the effect on witnesses. A
substantial number of those directly bullied and
those who witness colleagues being bullied, report
leaving their jobs as a result of their experience 25% and 20% respectively (e.g. Rayner 1998, Savva
& Alexandrou, 1998).
Anecdotal data suggests that many people do not
make an issue out of their situation, but just quietly
leave (Adams, 1992, Ishmael,1999). Such exit costs
are straightforward to calculate. If we consider an
organisation with 1,000 people and take a
conservative view of incidence (say, 10%), then 100
people will be being bullied. Of the 100, our
research indicates that around 25% leave - in this
example we would have 25 people leaving. An
estimate of average replacement cost in the UK is
15,000 (British pounds). This figure would include
items such as generation of job specification, finding
candidates through advertising or the use of
agencies, preparing a shortlist, interviewing,
selection, time lost because of low staffing levels (or
temporary replacement costs), and the learning curve
for the new incumbent. Thus costs for those directly

bullied would be 375,000 (BP).
We must, however also add the cost of witnesses
leaving. Let us again be conservative and estimate
that two people witness each of the 100 bullying
cases (i.e. 200 witnesses) and assume that 20% of
them leave (40 staff). Using the same replacement
cost as above, our bill for the witnesses is 600,000
(BP).
Thus for an organisation of 1,000 people, the total
replacement costs for bullying identified at any time
in the UK would be around one million British
pounds. What we are not able to estimate is the time
period over which such costs will need to be met as
bullying can last for a significant period of time. We
also do not know enough about the patterns of
bullying incidence to understand how new cases
appear and how often. Both of these elements
would be necessary to provide an estimate of the
annual bill.
Another area for identified cost is connected with
those bullied staff who do not leave their employer
quietly but seek internal redress in some way
through using official channels in some way such as
making a complaint.
A current estimate for
conducting an internal complaint investigation in
Britain is 75,000 BP (TMS, 2000). Such costs are
mostly hidden from balance sheets as they involve a
great deal of management time in finding and
providing evidence, discussions and attendance at
hearings. What is not represented at all is the
opportunity cost for these managers time i.e. what
they could be doing if they werent doing this!
The final stage for some employees will be to take
their employers to an industrial tribunal. The
internal costs (that is, not including legal fees and
regardless of the outcome) for an industrial tribunal
are high - around 120,000 BP (Lakeland District
Council, 2000). Once again this does not include
opportunity costs and would also need legal fees
added. The penalty figure would be reported and
would be a publicly-known cost to be met, along
with other costs which might be incurred from poor
publicity and the public relations effort required to
combat the aftermath.
Once again, we do not know the percentage of
bullying cases which come to court, but it will be
few. In the UK, a study amongst lawyers who deal
with cases related to stress and harassment that reach
tribunals found that bullying was the most frequently
cited real reason for the case (Earnshaw & Cooper,
1996). Most of these cases were brought under
sexual and racial discrimination and also unfair
dismissal claims as we have no law directly against
bullying.
A health and safety perspective

One area of law that is being used in recent years for
stress claims is that of health and safety where the
employer has a duty to protect the psychological
safety of the employee. There are a variety of
techniques available in health and safety that we can
apply to bullying at work. Perhaps the most
appropriate to use is the notion of the accident
iceberg. The relatively small but exposed top of
the accident iceberg represents the few deaths that
occur at work, underpinned by a larger number of
serious accidents, and even more minor
accidents. Often such data has to be reported and
may be in the public domain. Hidden from public
view (i.e. the submerged part of the iceberg) are a
much larger number of almost-accidents such as the
near-misses and the risky situations which happen to
have not been exposed. Thus when a health and
safety officer is examining data s/he will be aware
that the reported data of actual accidents will have a
submerged set of incidents accompanying it which
is much greater in number - hence the term
iceberg.
We can use this concept to contextualise an
argument for effective anti-bullying measures at an
early stage. The two costs to the organisation
identified previously could be seen as the visible
parts of the bullying iceberg. There will be few of
the costly tribunals and more of the internal
investigations to which this discussion will now
turn. These formal measures may be underpinned
by other procedural structures which could be used
to minimise the number reaching formal complaint
and tribunal levels. For example some larger
organisations have first contact advisers who are
perhaps volunteers and sign posters for staff who are
experiencing difficulties and deal with informal
enquiries. There may also be an informal complaint
process, perhaps dealt with by line managers
themselves before Personnel get involved.
Tribunals
Formal Complts
Informal Complts
Informal Enqs
Poor Behaviour
Poor system
Better system
Figure 1 The prevention iceberg for bullying at

work
As Figure 1 illustrates, an effective set of systems

for dealing with bullying in the informal stages can
limit the number of cases reaching the formal stages
which are highly expensive in management time.
Clearly such systems will cost money, and the
shapes for all organisations will be different. It
would be hoped that the potential of saving
resources through reduction in formal costs would
outweigh the benefits. Certainly this argument
should form the basis for a calculation, and perhaps
for establishing the targets of such and viability for
internal schemes.
The author has chosen to look at costs relating to
exit and complaint processes as her focus has been
on the individual employer and the use of reliable
data. Other costs might also be considered, such as
absenteeism and professional medical care for those
with PTSD (Leymann, 1990) as well as reductions in
work quality and output whilst still in the workplace
(McCarthy et al, 1995). These are important and
contribute significantly; perhaps most if one was
seeking to generate a whole-country cost estimate.
Beyond a cost analysis

While the arguments cited previously may excite the
accountant, other senior managers may have a less
positive approach. Here we return to the discussion
within the introduction to this article which
highlighted that conflict is a complex area, and not
always negative in outcome (e.g. Jehn, 1994).
Perhaps we should be sympathetic to senior officers
in organisations who decide to avoid tackling the
issue because of its complexity and unpleasantness.
As argued elsewhere (Rayner 1998) this lack of
action may not be neutral in effect, but be the
substance that underpins staff attitudes of a culture
for the acceptance of bullying at work.
Bullying is not about single events, but is a process
of escalating conflict over a period of time
(Einarsen, 1999). The author is concerned that the
impact to the organisation in the duration of events
may represent a considerably higher negative impact
than the exit and reparation costs outlined earlier.
While the solution to bullying at work may be in the
field of human resource management, the effect of
the problem may be strategic.
We have many tools for achieving success; total
quality management and business process
reengineering being two popular approaches in
recent times. In the field of corporate strategy, much
of our efforts in the last decade have been spent on
locating and stretching competence which are
those things an organisation is good at. Strategy can
then be crafted from those strengths. Once again we
see a strongly positive approach. This author would
argue that we also need to be identifying (and
undoing) incompetences which is missing from the
strategy literature. Support for paying attention to

the negative can be gained from the learning school
(e.g. Senge, 1994).
Following the style of Gary Hamel and CK Prahalad
(1993) whose original work into competence
provided a set of parameters, this author would
suggest that incompetences should fit the criteria in
Figure 2:
Incompetences
Relate to the strategic workings within a firm
Should be able to be seen emerging in failures which
can be very different in nature but have a root cause
which is similar
Should affect the end value of the product; either
through causing higher costs or through destroying the
value to the customer
Are able to sit with strategic competencies, but will
neutralise or limit their contribution to the business.
Figure 2 Incompetences of the firm

Of immediate irritation to anyone in an organisation
is the last point. How often have those who design
products or services with high levels of care and
expertise (which may represent a competence)
discovered that their execution is weak and ill
thought through (through an incompetence)? How
often have those who are very good at providing
products or services been stunned by being given
products which are wholly inappropriate to the
market or service sector? Often this type of
evidence is fragmented, but, like bullying itself,
small events can be seen to add up to a pattern that is
consistent and also destructive in outcome.
Where, then, does bullying fit within this schema?
Often the behaviour we are looking for regarding
incompetence is not what people do, but what people
do not do. Bullied targets, and those who observe
bullying are less likely to provide suggestions for
improvement or warning that decisions are poor, for
fear of further recrimination (Adams 1992,
Crawford, 1999). Weak decisions will be allowed to
go through without the rigour of proper analysis that
we seek in self-managed or manager- managed
teams. As we know, small errors that go unchecked
can lead to large strategic disasters (Stacey, 2000).
Bullied people are unlikely to work effectively in
their work teams or take risks, and for good reason.
These small and individually insignificant nonevents can erode the strategic capability of the
organisation and neutralise its positive competencies
from providing the strategic advantage that it seeks
and deserves.
As with competence, labelling incompetence is a
skill in its own right. One is seeking to dig through
the organisation and look at the pattern of negative
behaviour. Where bullying is also accompanied by
high failure rates of products at quality control, overactive audit departments who are constantly
uncovering unforced errors and sloppiness in record
keeping, the incompetence might be a lack of
management discipline at work, of which one aspect
is bullying. Where bullying is accompanied by high
levels of conformity pressure in inappropriate places
and a resistance to relinquishing traditions of the
past (such as the fire service in the UK; Archer,
1999) the incompetence maybe that of a failure to
adjust to new conditions, of which bullying is one
aspect. Clearly further research is needed to test this
concept in the workplace.
Very recent work in strategy (e.g. Ghoshal, Bartlett
& Moran, 1999) has taken a critical approach to
over-enthusiastic cost-cutting and highlighted the
damage to trust, instead promoting a moral contract
based on adding value to people (p17) creating
value for society (19).
This takes us to the last argument that could be
made, which is that which comes from ethics and
morality. Bullying at work can lead to targets
having a full mental breakdown and suffering from
Post Traumatic Stress Disorder which can
effectively take them out of the workplace forever
(Einarsen & Matthiesen, 1999). Most people being
bullied state that the experience affects their health
(75%; UNISON, 1997) with symptoms being
psychological in nature such as anxiety and stress.
The argument could be that bullying is wrong. We
are all purchasing goods from organisations that are
not taking any genuine steps to combat bullying at
work. It would appear that the practice is so
widespread in Britain (Hoel and Cooper, 2000) that
we would go hungry (or need to be excellent
gardeners) if we were to be so selective. The moral
argument can probably only be made to the
individual at this stage. If staff were to exit
organisations which fail to take action on bullying at
a sufficient rate, then the organisation would fail to
function.
Conclusion
This paper has provided several sets of conventional
business arguments for tackling bullying at work.
Some are based on the theme of wastage. The first
technique tracked the exit costs of staff who leave
the organisation as a result of bullying. When
applied to an organisation of around 1000 people,
the costs for replacing those who exit as a result of
bullying were estimated as being around one million
British pounds. It was not clear over what period of
time such funds would be spent, nor the
replenishment rate of bullied targets and witnesses,
which remains to be established. Other costs such as
tribunals and internal investigations were identified
and the use of mechanisms to deal with bullying
early and informally was presented using a health
and safety iceberg to highlight their minimising

effect on the larger costs.
A further argument was presented which was
strategic in nature; that bullying is a symptom of a
deeper set of negative behaviour or incompetence,
which pervades the organisation. The effects of
such incompetences can have wide-reaching
strategic effects that would be difficult to cost.
Primary amongst the effect of incompetence would
be the neutralisation of value that had been added
elsewhere in the organisation.
If sufficient action is taken by a sufficient number of
organisations against incompetences then this will
be a competitive success, meaning failure for the
others through cost inefficiencies or noncompetitiveness in a strategic way. Perhaps then
action against bullying would be part of the natural
history of organisational
culture with those
organisations that fail to adapt becoming
evolutionarily defunct.
The final argument for tackling bullying was
provided from a moral and ethical base.
Unfortunately, in the opinion of the author, this is
likely be the last to be listened to.
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Cooperation and competition as effective organizational partners

Evert Van de Vliert
Department of Social and Organizational Psychology, University of Groningen, The Netherlands
Abstract
This overview of a series of studies focuses on the
manifestations and consequences of interpersonal
cooperation and competition in organizational
settings. It challenges the applicability of Deutschs
classic cooperation-competition theory. Rather than
separate motives and separate behaviours having
separate effects, cooperation and competition seem
to refer to entwined motives and behaviours
moderating each others impact on dyadic and
group effectiveness. Time and again, joint
effectiveness stood out as a positive function of much
cooperation in combination with much competition,
irrespective of organizational setting, conflict issue,
and research method used.
Keywords
Conflict; Cooperation; Competition
Introduction
Employees cooperate and compete. Cooperation and
competition are seen now as motives, then as
behaviours. In both cases they are seen as rivals,
maybe strangers, but not partners. This paper
highlights the partnership of cooperation and
competition by challenging the standpoint that they
are separate phenomena. For example, a subordinate
who attacks the goals of his superior in order to
prevent the detrimental collective consequences of
groupthink,
experiences
negative
goal
interdependence against a background of positive
goal interdependence, and is in fact cooperating by
means of competitive strategies.
I first challenge the viewpoint that cooperative and
competitive motives are separate human drives.
Instead, they are portrayed as components of an
indivisible social motive, because cooperation and
competition have the maximization of ones own
outcomes in common. Subsequently, I also
challenge the standpoint that cooperative and
competitive behaviours are separate reactions to
organizational conflict. Rather, it is argued, any
conflict behaviour in organizational situations has
entwined components of cooperation and
competition. Next, this paper challenges the
standpoint that cooperative behaviour and
competitive behaviour have separate effects. Various

reasons will be provided to underpin the alternative
point of view, that cooperative and competitive
behavioural components have a joint impact on the
substantive and relational outcomes for the
organization.
Separate Motives?
Cooperation is the motivation to maximize both
ones own and the others outcomes, while
competition is the motivation to maximize ones
own outcomes relative to the others outcomes
(Deutsch, 1973; McClintock, 1976). Note that
cooperation and competition are not separate
motives as they have self-interest or the
maximization of ones own outcomes in common.
An often observed example is employees carrying
off resources for the in-group by building
cooperation-cooperation and out group-competition,
with a view to personally carrying off a much larger
part of the acquired resources than the other
members of the in-group. Indeed, the three
motivational
components
of
cooperationcooperation,
competition-competition,
and
competition-competition are inseparable as they do
have self-interest in common.
Separate Behaviours?
Cooperative behaviour is primarily characterized by
togetherness and joint outcome anticipation, whereas
competitive behaviour is primarily characterized by
remoteness and outcome advantage anticipation
(Deutsch, 1973; Van de Vliert, 1997). In real life,
especially in organizational settings, togetherness
and joint outcome anticipation, on the one hand, and
remoteness and outcome advantage anticipation, on
the other hand, do not necessarily seem to exclude
each other. Based on a series of three studies, one of
which will be summarized in the next paragraph, I
have come to the conclusion that self-reports of
integrative cooperation and distributive competition
tend to be entwined components of conflict
behaviour as reflected in a positive rather than
neutral interrelationship. Applying a scaling
technique, each of these studies produced a twodimensional representation and visualization of
multiple modes of conflict behaviour with
integrative cooperation and distributive competition
as the descriptive dimensions. As expected, the

latent dimension of cooperation always ranged from
avoiding to problem solving, and the latent
dimension of competition always ranged from
accommodating to fighting. Furthermore, the
consistently
positive
relationship
between
cooperation and competition always deviated from
orthogonality (null hypothesis: r = cos 90 = 0.00),
indicating that you cannot have cooperative
behavioural components without competitive
behavioural components, and vice versa.
One study, a meta-analysis (Van de Vliert &
Kabanoff, 1990), compared two self-assessment
instruments
for
measuring
avoiding,
accommodating, compromising, problem solving,
and fighting, namely Thomas and Kilmanns (1974)
Management Of Differences Exercise (MODE) and
Rahims (1983) Organizational Conflict Inventory
(ROCI). MODE is a forced-choice questionnaire
consisting of 30 sets of paired items, each describing
the likelihood of one of the five behavioural
alternatives. ROCI is a series of 28 five-point Likert
items ranging from strongly agree to strongly
disagree with the use of a mode of conflict
behaviour. Three MODE- and three ROCI-studies
were selected in which US managers from several
bureaucratic and more organic private enterprises
and governmental organizations reliably reported
their typical conflict behaviour at work. Using
Fishers r to Z transformation, the 10 mean
correlations among the five modes of conflict
behaviour were then computed for the MODE (N =
435) and ROCI studies (N = 1478) analysed. Finally,
multidimensional scaling applied to the matrix of 10
mean
correlations
produced
cooperation competition angles of 44 for MODE
(r = cos 44 = 0.72) and 70 for ROCI (r = cos 70 =
0.34). That is, it was shown twice that US managers
handling conflict at work tend to combine
cooperative
and
competitive
behavioural
components.
Separate Behavioural Effects?

As a rule, cooperative behaviour has positive effects,
whereas competitive behaviour has negative effects.
However, at least three reasons exist for why
cooperation in conjunction with competition might
have an additional positive impact on the
development of integrative agreements and other
beneficial outcomes.
First of all, most conflict issues in organizations are
so complex that cooperation might be more
appropriate for some aspects of the discord, while
competition might be more appropriate for other
aspects. For example, cooperation is especially
appropriate for merging insights as well as working
through a negative feeling, whereas competition is
especially appropriate for responding to an
emergency, as well as implementing an important

but unpopular decision (Thomas, 1992). As a
consequence, joint effectiveness might well increase
if cooperative behaviour is competently interspersed
with competitive behaviour, or vice versa.
Second, cooperation and competition come with
their own risks in terms of detrimental rather than
beneficial outcomes. Among the risks of cooperative
behaviour are image loss, because one is perceived
as weak and irresolute, position loss, because one is
perceived as conceding from a previous standpoint,
and information loss, because one reveals ones
underlying interests (Rubin et al., 1994). The risks of
competitive behaviour include a deterioration of the
relationship, escalation beyond acceptable cost
limits, and a stalemate resulting from the failure of
contentious tactics (Rubin et al., 1994). The cooccurrence or alternation of cooperation and
competition might reduce both types of risks.
Last but not least, entwined cooperative and
competitive behavioural moves of one party might
encourage the opponent to adopt cooperative
strategies that yield better substantive and relational
outcomes for everyone. Rubin et al. (1994) have
argued that a firm but conciliatory stance is efficient
in generating creative solutions. The firm,
competitive behavioural component is needed in
order to convince the opponent that contentious
tactics are infeasible because one is unalterably
committed to achieving ones own basic interests. It
also prevents the opponent from misinterpreting
ones own cooperative moves as signs of weakness.
The
conciliatory,
cooperative
behavioural
component is needed in order to persuade the
opponent that one can be trusted to help find a
beneficial way out and not to take undue advantage
should the opponent decide to initiate openheartedness and collaboration.
A series of five experiments do support the idea that
cooperative and competitive behaviour have joint
rather than mutually isolated impacts on the
effectiveness of working dyads and groups (Van de
Vliert et al., 1999). For example, in a hospital
setting, we selected a realistic and incendiary
conflict issue about the maltreatment of a patient,
operationalized an escalating sequence of conflict
reactions, and trained confederates to perform these
standardized behaviours (trivialize the incident, then
attack the underlying policy, finally attack the
opponent). We then recruited 54 male and 43 female
senior nurses from Dutch hospitals as participants
and videotaped their interactions with a confederate.
Finally, we had four neutral observers assess a
variety of substantive and relational aspects of the
dyadic effectiveness of the total process of conflict
management. Similarly, observers later scored each
tape for the occurrence of cooperative and
competitive behaviour. Hierarchical regression

analysis based on z-scores revealed that cooperation
and competition together account for 39% of the
variance in the positive substantive and relational
outcomes for the dyad. More importantly, the
interaction effect appeared to account for an
additional 11% of the variance. Joint effectiveness
stood out as a positive function of much cooperation
in combination with much competition.
The Netherlands
Email: E.van.de.Vliert@ppsw.rug.nl
Phone: + 31 503 636 439
Fax : + 31 503 634 582
Time and again, cooperative and competitive

behaviours tended to be more effective, or less
ineffective, in combination than they are in isolation,
irrespective of organizational setting, conflict issue,
and research method used. Specifically, cooperation
is more effective if accompanied or preceded by
competition.
References
Deutsch, M. (1973). The resolution of conflict:
Constructive and destructive processes. New
Haven, CT: Yale University Press.
McClintock, C.G. (1976). Social motivations in
settings of outcome interdependence. In D.
Druckman
(Ed.),
Negotiations:
Socialpsychological perspectives (pp. 49-77).
Beverly Hills, CA: Sage.
Rahim, M.A. (1983). A measure of styles of
handling interpersonal conflict. Academy of
Management Journal, 26, 368-376.
Rubin, J.Z., Pruitt, D.G., & Kim, S.H. (1994). Social
conflict: Escalation, stalemate, and settlement.
New York: McGraw-Hill.
Thomas, K.W. (1992). Conflict and negotiation
processes in organizations. In M.D. Dunnette
& L.M. Hough (Eds.), Handbook of industrial
and organizational psychology (2nd ed., pp.
651-717). Palo Alto, CA: Consulting
Psychologists Press.
Thomas, K.W., & Kilmann, R.H. (1974). The
Thomas-Kilmann conflict mode instrument.
Tuxedo, NY: Xicom.
Van de Vliert, E. (1997). Complex interpersonal
conflict behaviour: Theoretical frontiers. Hove,
England: Psychology Press.
Van de Vliert, E., & Kabanoff, B. (1990). Toward
theory-based
measures
of
conflict
management. Academy of Management
Journal, 33, 199-209.
Van de Vliert, E., Schwartz, S.H., Huismans, S.E.,
Hofstede, G., & Daan, S. (1999). Temperature,
cultural masculinity and domestic political
violence: A cross-national study. Journal of
Cross-Cultural Psychology, 30, 291-314.
Evert van de Vliert
Social and Organizational Psychology
University of Groningen
Grote Kruisstraat 2/1
9712 TS Groningen
Using the life review method for expanding the boundaries of career
exploration
M. J. Westwood, PhD
Professor, Dept of Educational & Counselling Psychology
Career transitions are ongoing all the time as people
shift the nature and location of their work. We, as
professionals and researchers working in the area of
career transition need to be aware of the most
helpful that ways people can be assisted to make
satisfying and productive changes in their lives,
careers or both. By doing this, we not only increase
the level of personal satisfaction of the worker, but
we increase the probability of these same people
making greater contributions to the organization
they work for. In order to help people make these
effective life changes, we must first transcend some
personal boundaries opening up the possibility for
reflection In order to do this we have to transcend
conventional boundaries of career management or
career exploration, and this
presentation examines one way of
doing so, using a the Guided
Autobiography
Life
Review
method.
In order to meet the ever increasing and changing

demands in the workplace, career exploration
approaches must include assessing the creative
side of the person and this involve s a more in-depth
assessment as opposed to the more conventional
approaches that rely on identifying skills interests
and values. By expanding our understanding of the
person to include a review of their life lived, in
addition to assessing their current competencies,
provides for a better outcome in respect to the
appropriate and adaptive occupational goals and
better strategies for making the required transitions.
The Guided Autobiography Life Review enables the
person to engage in structured self reflection and
examination; and in so doing is better able to
The new career reality must be

seen in the context of a global
economy
characterized
by
economic competition, technical
innovation, smart technology,
advanced telecommunications, and
changing demographics.
In
contrast to the old workplace
setting where the entitlement ethic
emphasizes loyalty, endurance and
hard work, the current ever
changing workplace is much
different . It is now characterized
by more fluidity, less job security,
fewer fulltime positions, more
temporary
staff,
more
competitiveness,
flexible
and
customized production, increasing
emphasis on being more selfdirected in life-long learning and
career planning, more multiskilled
workers, broader responsibilities,
greater teamwork, more emphasis
on performance rather than
seniority and the need to be able to
solve problems.
discover the present

knowing the past self.
self
by
Where does Life Review

belong in the process of the
career transitions?
The process of career counselling
usually includes the following
phases:
(a)
establishing
the
relationship, (b) assessment of the
client by others and self, (c)
determining occupational and career
goals, (d) decision making, (e) action
strategies (accessing the labour
market, job search, training), and (f)
follow up.
Of all the phases,
information about the client in the
assessment phase is most important!
Life Review is the primary
component of the self assessment
phase and secondarily, informs each
of the other phases as well.
Life Review and Guided

Autobiography: What is it?
Briefly stated, The Life Review
Program is designed to help
participants understand their life
history in such a way as to better
enable them to chart their futures. It
is only by understanding where we
have come from and what we have done that we can
effectively plan for where we are going; in other
words using the past to guide the future. In
reviewing their life paths, participants become aware
of key events which have shaped who they are, how
they made decisions, life choices, responded to
challenges,
coped
with
losses,
identified
accomplishments and managed achievements.
Having feedback from others in the group helps to
let people know how they are seen by others and in
receiving this information the participants are able to
converge their own self perceptions with those of
others. Further research by Westwood (1998, 1999);
and others at UBC have discovered that people also
begin to identify core values, interests and expertise
they previously did not know they had. All of the
outcomes indicate this is a rich source of
information essential for making effective decisions
about ones life or career. As a result, we have been
incorporating the life review method as an integral
part of career exploration and life transitions
counselling. Credit for development of the original
approach to Life Review goes to Birren &
Deutchman (1991) along with Butler (e.g., 1963) for
bringing life review into focus for researchers and
practitioners concerned with personal and
professional development and late life transitions.
The Format of the Program

An expansion of this way of thinking can be found
in Birrens (1987) methodological approach to
autobiography. The Guided Autobiography is a
semi-structured, topical, group approach to life
review (de Vries, Birren, & Deutchman, 1995, p.
166). It entails a written component, the intent of
which is to facilitate reflection and scrutiny of ones
past. It also includes a group experience which is
seen to enhance recollection and reinforce
participation in the present (Birren & Deutchman,
1991). Both components are important aspects of
this self-exploration.
The feature that makes the Guided Autobiography
unique, however, is its structured nature; This
follows from the conviction that certain themes elicit
especially salient memories and form common
threads that run through the life and bind the fabric
of the life story (de Vries et al., 1995, p. 168).
There are nine guiding themes: 1. History of the
major branching points in my life; 2. Family history;
3. Career or major life work; 4. The role of money in
my life; 5. Health and body image; 6. Loves and
hates; 7. Sexual identity, sex roles and sexual
experience; 8. Experiences with and ideas about
death and dying and other losses; 9. Influences,

beliefs and values that provide meaning in my life
(de Vries et al., 1995).
These themes can direct self-reflection in reviewing
and revising agentic and communal roles
relating to the self. As McAdams (1993) suggests,
revising roles which reflect power and individual
agency, along with re-evaluating those roles that
focus on love and interpersonal communion, can
enhance the reconstruction of the self and the
integrative process. Life goals in both the personal
and professional spheres become sharper and as a
result of this process. More focused life goals
facilitate more appropriate occupational goals!
Building An Effective Group Climate

To maximise the benefits of the Life Review, there
must exist a climate which is conducive to
individual comfort and learning. The facilitator
must pay attention equally to the process of the
group as well as the content, i.e. what is discussed in
the group. To do this the leaders must attend to the
socioemotional needs of the participants, and build a
strong working climate by ensuring that the
following three stages of group development occur
(Amundson, Westwood, Borgen & Pollard, 1989):
3. INCLUSION/BELONGING STAGE:
That they are included, belong and a sense of
group cohesion Common concerns are: whos
here, and how will I fit in; how do they feel
about being in this group. Members identify
with the stated goals/anticipated outcomes of
the group & process.
4. PERSONAL CONTROL STAGE:
Members have a need to see there are controls
in place to ensure their safety. Common
concerns are: will I have to speak, will I be
put on the spot if I dont want to? Members
look to the leader to set guidelines/norms for
how we will participate. Through the leader
modelling specific group skills, members
recognise they can have personal control in
what they say or do.
5. TRUST/INTIMACY STAGE:
Members self disclose and participate freely as
they experience increased trust. Members then
deepen their understanding of self due to being
understood by the others. Productivity is
highest when defensiveness is lowest.
Research Findings:
Over the past 5 years there have been a number of
studies (Hunter, 1997; Ashby 1997, Shaw, 1999)
which investigated the outcomes alternate
applications of LR. In summary, the LR groups
generate more than the necessary information for
enhancing career transitions, these same group have
other significant benefits which include: (1) new
goals, ambitions, interests, (2) greater personal

insight (3) enhanced meaning of the life lived, (4)
new awarenesses pf previous achievements (5)
generation of specific personal and career goals and
possible paths to achieving them, (6) life skills and
strategies and (7) stronger sense of community and
connection with others. In respect to the various
populations which we have used LR and evaluated
the outcomes, they include, Older Adults, Various
Professional Groups, Pre Retirees, People at End of
Life, and Military Peacekeeper Personnel.
In conclusion, we have found LR generates
information about the self at depths greater than in
conventional assessment measures, builds esteem,
social support and most importantly we have
discovered that people have discovered unique
competencies and skills which they are able to
integrate into transferable skills for the workplace
or life after work.
Finally, since each story is understood and witnessed
by others within the supportive group process, we
have observed that member self confidence or sense
of self efficacy increases. Consequently, they
develop a greater trust in their ability to take risks
and make changes both essential ingredients for
those engaged in making successful career
transitions.
References
Amundson, N. E., Borgen, W. A., Westwood, M. J.,
& Pollard, D. E. (1989). Employment groups:
The counselling connection. Lugus Productions
Ltd.
Ashby, M (1997). Participant perceptions of a brief
and intensive life review program: Implications
for theory and practice. Unpublished MA
Thesis. U.B.C.
Birren, J. E. (1987). The best of all stories.
Psychology Today, 74-75.
Birren, J. E., & Deutchman, D. E. (1991). Guiding
autobiography groups for older adults:
Exploring the fabric of life. Baltimore and
London: John Hopkins University Press.
Brown-Shaw, M., Westwood, M.. J. & De Vries, B.
(1999) Integrating Personal Reflection and
Group Based Enactments. Journal of Aging
Studies. (13), 109 119.
Butler, R. N. (1963). The life review: An
interpretation of reminiscence in the aged.
Psychiatry. 26, 65-75.
de Vries, B., Birren, J. E., & Deutchman, D. E.
(1995). Methods and uses of the guided
autobiography. In B. K. Haight and J. D.
Webster (Eds.), The art and science of
reminiscing. Washington: Taylor and Francis.
Hunter, C. (1997). Guided autobiography for older
adults. Unpublished MA Thesis. U.B.C.
McAdam, D.P. (1993) Stories we live by: personal

myths and making of the self. New York:
William Marrow and Company, Inc.
Shaw, M. (1999). A model for transformative
learning: The promotion of successful aging.
Unpublished PhD Dissertation. U.B.C.
Westwood, M. J. (1997). Conference presentation at
the 50th annual scientific meeting of the
Gerontological Society of America. Creativity
and aging: Exploring human potential in
Cincinnati, Ohio.
Westwood, M. J. (1998). Group life review program
for Canadian veterans. Research Report,
U.B.C.
Westwood, M.J. (1999). The life review program for
Canadian war veterans and for Canadian
peacekeepers. Research Report, U.B.C.
Technological knowledge base as users power in negotiating ICTsystems

Emma Olivieri Askevold a and Brita Gjerstada
a
RF-Rogaland Research, Norway
Abstract
This paper is based on two of four case studies. The
focus of the analyses is on the implementation of
different ICT-systems. We have conducted in-depth
interviews with employees and managers of both
ICT-users and suppliers, and we have attended
group meetings where users and suppliers
negotiated. Data collected comprises of knowledge,
contextual, cultural, and organisational factors that
play an important role in the dialogue and learning
processes between users and suppliers. These results
are reported: The users ability to negotiate partly
depends on his technological knowledge base. The
wider the users technological knowledge base is,
the stronger his negotiation position. Ability to
negotiate also depends on how organisational
knowledge is emphasised in relation to
technological knowledge.
Keywords
Organisational change, Organisational learning,
Organisational culture
Introduction
During the 1990s Norwegian investments in
information and communication technology (ICT)
increased dramatically (Buytendorp, Movik and
Steineke 1998). This is the case also for a lot of
other western countries. The demands of new
markets and the needs of organisations for readjustments call for new strategies, and ICT has
become a tool that no organisation can do without.
For management, various forms of ICT are seen as a
way of strengthening the ability to compete. It also
seems to influence the organisational structure more
and more.
ICT then becomes an increasingly growing part of
organisations. Understanding technology therefore is
of great importance for the users in organisations.
Without any knowledge about ICT, their positions in
the organisation can be threatened. With ICT
influencing the organisation on several levels, lack
of knowledge can make it hard to understand the
managements policy.
Despite the enormous growth of the ICT business

sector, market conditions are getting harder also for
this branch. It should therefore be in ICT-suppliers
interest to focus on the ICT-users needs, trying to
understand precisely what the user needs and wants.
Both suppliers and users have to learn from each
other: the user needs to learn about the technology,
and the supplier needs to understand which
technological solution is optimal for the user. At the
outset, the two parts have different knowledge bases,
but we think that to reach the best result of the
implementation they need a shared knowledge base.
From this, it follows that several learning processes
are required. Several failures in implementing
technology make us wonder whether users and
suppliers make the most of this learning potential.
This leaves us with the following questions:
What factors influence the scope of negotiation

between the user and supplier?
Do the two parts enlarge their knowledge base

and if so, does that improve the result of the
implementation?
Methodology and theoretical perspective

The two case studies have been based on qualitative
methodology. We have conducted in-depth
interviews with employees and managers of both
ICT-users and suppliers, and have attended group
meetings where users and suppliers negotiated. The
collected data comprises of contextual, cultural,
knowledge and organisational factors that play an
important role in the learning processes between
users and suppliers. Negotiation is the arena where
actors with different knowledge bases meet each
other and where learning processes are stimulated.
The learning perspectives of the organisations
conceptualise the firms as knowledge-bearing
entities. Firms possess path-dependent knowledge
bases and are characterised by competence, routines
and learning processes. Routines are a set of
organisation rules allowing the communication and
the implementation of knowledge within the firm
(Malerba & Orsenigo, 1996). Competence stored
and organised in routines, is the set of specific
capability and complementary assets of a firm (Dosi
& Malerba, 1996). Capabilities, constituted by the
stock of resources or specific assets working
together, may be conceived of as being organised
hierarchically. Highly specialised capabilities,

relating to a narrowly defined task or activity, may
in turn be integrated into broader functional
capabilities:
R&D,
engineering,
design,
manufacturing and marketing. At the highest level of
integration are capabilities that require wide-ranging
cross-functional integration: the management of
large and complex projects, or the management of
the entire value chain. Management through
integrating the knowledge of individual persons
(Grant 1998) can only integrate capabilities. This is
precisely why higher-level capabilities are so
difficult to perform and why firms are heterogeneous
when it comes to the allocation of technological
capability.
The learning processes are the basis of competence
accumulation in the firm (Malerba, 1992). Learning
is local, being highly affected by the cognitive
frames and actual competence of firms, and is
cumulative in that it builds on what has been already
learned. (Dosi & Malerba, 1996). The concept of
organisational learning embodies the managerial
search for development of knowledge competencies
and capabilities. In the management of
organisational learning processes one may
distinguish between highly uncertain innovative
activities (exploration) and uncertain innovative
activities (exploitation) (March 1999):
Exploration refers to the exploration of highly

uncertain opportunities in order to meet new
environmental conditions. It may imply a
change of routines, strategies and a
reconfiguration of the firms specific assets
(Dosi and Malerba, 1996a; Teece, Pisano and
Shuen, 1997). Strong uncertainty involves not
only the lack of knowledge of the precise cost
and outcome of different alternatives, but also
the lack of knowledge of what the alternatives
are. This refers to the imperfect information on
the different strategic alternatives that are
available to the firm for the exploitation of the
opportunity-set.
Exploitation refers to continuous exploitation of

the existing knowledge and assets accumulated
over time, including improving and modifying
what is already known. These choices are
influenced by past choices, bound to them by
links of continuity. Firms thus follow a certain
trajectory or path of competence development
that not only defines what choices are open to
the firm today, but also puts bounds around
what its internal repertoire is likely to be in the
future.(Teece et al. 1997).
According to Teece et al. (1997), learning is an
important dynamic capability, both at the individual
and the organisational level. Investment in
upgrading resources and capabilities can occur
naturally through organisational learning. Learning

is intrinsically a social and collective process, which
requires common codes of communication and coordinated search procedures. The organisational
knowledge generated by learning resides in new
patterns of activity, problem solving, in routines,
or a new logic of organisation. Also, the concept of
dynamic capabilities as a co-ordinating process
introduces the potential for inter-organisational
learning. According to Dosi and Malerba (1996)
different firms undertaking similar activities of
production and search share broadly similar
knowledge bases, belong to high overlapping
communities of technicians and scientists and
display similar ways of doing things. The notion of
technological
paradigms
incorporates
these
phenomena.
The assumption of similar activities and search is
necessary to provide evidence for a paradigmatic
perception of technological development. Is the
paradigmatic perception still useful when used to
analyse technological problem solving activities
between firms not sharing the same knowledge base
and not belonging to high overlapping communities
of technicians and scientists? It is important to
explain how different communities define the
technological problems to be fulfilled and then the
methodology they follow.
In our perspective, technology can be seen as
socially constructed. Many connect new technology,
like ICT, in various degrees to uncertainty. What is
the optimal use of ICT? What are the consequences?
Those questions can be discussed, but the answers
given by individuals often differ. This is linked to
what Bijker (1995) calls the interpretative flexibility
of the technology. Interpretative flexibility
characterises the negotiation between relevant
groups in order to develop a dominant technological
design.
A perspective that regards the world as a social
construction can be fruitful when studying
negotiations. Berger and Luckmann (1967) claim
that the world is created by constructions of
meanings, and that such constructions can be
understood as processes in which individuals,
continuous through their actions and interactions,
create a shared reality which is regarded as objective
facts and subjectively meaningful. This perspective
can be used on different levels, also on an
organisational level, like many theorists of
organisation culture do (Smircich and Calas 1987).
It gives an opportunity to understand why
individuals from different parts or levels in an
organisation can regard, for example, a new
technology in totally different ways. Individuals
working with similar tasks, and/or together, perhaps
with the same educational background, will, to a
large degree, experience the same, and if working
together (for example in couples or teams, like many

workers do), be able to influence each others
meaning. Individuals will invest resources to make
their subjective reality objective. Objectivity is
regarded as better (more correct and/or more
important) than subjectivity. Naturally, everybody
will maintain his or her points of view, and try to
introduce them as objective facts. New ICT often
creates strong opinions among users as well as
individuals with no experience at all. Studying
negotiations in this field is therefore very interesting.
During this negotiation, the interpretative flexibility
will decrease, and at one point the closure process
will come to an end, and the technology will be
established and it will be hard to renegotiate.
In this paper we will argue that the negotiation
process between the users and the suppliers of ICT
systems is influenced by:
1.
Users knowledge-base about:
The organisational problems that can be

solved through the implementation of ICT
systems,
The opportunity-set offered by the ICT

systems
The alternatives that are available to exploit

the opportunity-set
The cost and outcome of the different

alternatives.
The effect of the implementation of ICT

systems on the organisation of the firm and
of its business
2.
The suppliers knowledge-base of the
specific context in which the ICT systems
are going to be implemented
3.
Organisational culture, tradition and other
mechanisms
that
influence
the
communication
between
users
and
suppliers.
4.
Time
5.
Economy
At the outset, we will use two case studies to
illustrate our points about some crucial factors in
negotiation between ICT-user and ICT-supplier and
their knowledge bases.
Case 1: Watchmakers federation: the

implementation of a web page. Results and
discussion.
The Watchmakers federation represents the
common interests of its members. An elected
president and executive committee lead the
organisation for a period of two years. A director
and two-three other employees take care of the daily
tasks. The branch is characterised as an old
handcraft tradition. Exclusivity has always been a
distinctive attribute of the industry. When the cheap
watches came on the market, watchmakers were not
interested to sell them. For the same reason,
wholesale dealers of the most exclusive labels did

not sell watches over the Internet: the expensive
watches should not be easily obtainable to the
general public. It has to be a little difficult to find
them. Exclusivity has become more and more
important as it became more and more common to
buy cheap watches everywhere. Recently, it seems
that something has happened with the traditional
characteristics of the industry:
1. Watchmakers have always considered their
federation as one big family. In the past, almost
all members with their wives participated in the
bi-annual organisations meeting. During the
last years, the duration of the congress has been
reduced from three days to one day, and only
some 10% of the federation members
participate.
2. The way watchmakers manage their shops is
also changing because of young watchmakers
new attitudes. Traditionally, the relationship
between client and watchmaker has been based
on trust: the watchmaker always took the right
price for his services and expected that clients
came to collect their goods in time. Today, a
young watchmaker commonly demands a
deposit and asks for payment for the services
that previously where given for free.
3. Most of the shops have recently installed ICTbased accounting systems with Internet
connection. Here again, it is possible to
observe attitude differences. The more
traditional watchmakers use the PC only as a
more advanced cash desk, while the new
generation of watchmakers better manage to
exploit the opportunities that arise with the
Internet. As a consequence, some of them have
built their own home pages on the Internet.
In various degrees, this development influenced the
watchmakers federation in their decision about
establishing a web site.
One reason for doing so, was that the establishing of
a web-site would give the possibility for a broader
exploitation of a technology the branch had already
invested in, and through that, increased branch
profits. The other essential reason has to be found in
the necessity of strengthening the role of the
organisation and increasing the commitment of
members. The third reason was that it seemed
important to keep up with the technological
advances.
The decision about the Internet connection was
made after several meetings, where the federation
and a small consultancy firm were represented. The
consultancy firm was contacted in order to come to a
decision of connecting to the Internet.
The firm was well known to the federation, as it
repeatedly did several tasks for them, like editing
their branch magazine. However, it was no secret

that the firm lacked the specific technical knowledge
that creating a web site would require.
Consequently, the consultancy firm was called on to
appoint an ICT firm that could give a proposal for
the technical solution. Partly on the basis of
discussions with the consultancy firm and meetings
with them and the federation, but most of all from its
former experience in creating web sites for other
organisations and companies, the ICT firm presented
a suggestion for a solution to a web site. The
watchmakers web site should function as a portal
for all watchmakers and a meeting place for people
interested in watches. From the web site there should
be links to a site about Time - some philosophy
about the concept of time: Internet time, different
time zones around the world, etc, and also to a map
of watchmakers shops.
The ICT supplier formulated a proposal on the basis
of
Watch news
Watchmakers federation home page
Information on my nearest shop

Each of these themes could be linked to other ones
such as watchmakers homepages, e-commerce,
stolen watches page, web auction and also to the
watchmakers magazine.
The acceptance of this proposal is still not clear. The
watchmakers federation seems to have huge
problems in both deciding whether they should go
for it or not, and on how to motivate the members
into using it.
This short version of what happened hides a lot of
interesting elements concerning the negotiation
between the involved parts. First, the decision was
not taken without debate. Some members of the
executive committee meant that there was a kind of
incompatibility between the tradition of the branch
and the development of the modern society that
more and more depends on ICT-solutions. Was it
desirable to support such a development? Against
this, it was argued that the watchmakers could have
difficulties in surviving if they did not adjust to the
new technology. Finally, the executive committee
agreed that it was not possible to stop the
development. The fact that a similar organisation in
a neighbouring country had already implemented its
own web site also helped to ease the decision.
As already mentioned, the federation delegated the
accomplishment to a consultancy firm. That has to
do with the federations limited ICT knowledge
base, which again can be explained with two factors:
firstly, the federations distinctive culture based on
tradition and exclusivity, and secondly, the recently
implementation of some ICT systems. As a
consequence, the federation had very limited trust in
its ability to play an active role not only in defining

the contents and shape of ICT products to buy, but
also in choosing ICT supplier. This influenced the
formulation and the contents of the requirement
assigned to the consultancy firm. The contents of the
orders were diffuse, unspecified and generic in
relation to the organisational needs that should be
fulfilled by the implementation of the web site.
Three requirements were identified:
1.
The necessity to follow the technological
development.
2.
The need to better exploits the watchmakers
PCs.
3.
The exigency to enforce a network with the
members of the federation.
The order did not mention neither the concrete
organisational function that the web site should
perform nor the possible alternatives wished by the
organisation. In other words, it was not clear what
the functions the web site should have, neither in
relation to the watchmakers federation nor the
individual members. Preferred alternatives of
possible connections between the federations web
site and the single members home pages, ecommerce and so on was not clarified. And the
consequences of a web site for the watchmakers
traditional emphasis on trust, exclusivity, difficult
accessibility etc., were not evident.
One would imagine that such a large interpretative
flexibility connected to the technology would give a
solid base for negotiations, with so much to be
defined. But what happened was not a negotiation
between equals in ability. On the contrary we found
that the watchmakers federation experienced that
both the consultancy firm and the ICT firm, especial
the latter, had more control on the situation than the
federation itself. The negotiating parts were not
equals in ability because the ICT firms
technological knowledge became more important
than the users knowledge of their own business. In
a way, the federation supported this by delegating a
lot of work to the consultancy firm. Outsourcing can
be necessary when it is a matter of time and
economy, as seen in many companies, but it can also
be understood as displaying a poor trust in ones
own ability to understand and control the
negotiations about the ICT product to be
implemented.
The
watchmakers
federation
considered the consultancy firm to be more capable
than itself of expressing its needs, meanings and
values.
In the mind of the watchmakers
organisation the consultancy firm was a kind of
mediator/ interpreter between the supplier and the
user.
This expectation was not fulfilled, because the ICT
firm dominated the consultancy firm. The
consultants role in formulating the proposal for its
client diminished, because they delegated the
assessment of possible alternatives to the ICT firm.

In that way, the ICT firm ended up with a very
dominating role in the negotiations. Their position
was strengthened by the fact that inviting other ICT
suppliers to give their proposals was never a
question. Just like the federation, the consultancy
firm consciously or unconsciously supported the
view that technological knowledge was more crucial
than knowing the federations needs wishes and
strategy. None of the parts, neither the ICT firm nor
the consultancy firm, paid considerable attention to
factors such as organisational culture, tradition or
specific characteristics of the watchmakers. Minutes
from the meetings with all parts represented
indicated that as soon as the decision of a web site
was made, it fully became an ICT project. Only in
the starting phase, when discussing whether or not to
build a web site, and before the ICT firm was
involved, factors like organisational culture,
tradition and strategy were made relevant in the
discussions.
This shows that there has been limited space for
negotiations between the ICT user (the federation)
and ICT supplier (the ICT firm) about the purpose,
the shaping and the contents of the web site.
Delegating has played a vital role in the process. But
delegation itself and its vague framing has not been
the only limiting factor. Economy has also played an
important role. The financial conditions were not
clear in this project. First of all, no one has yet been
paid for the project. Secondly the project should
only in part be financed by the watchmakers
organisation. The ICT firm should have made an
offer to all watchmakers, where, for a fixed price,
they would get support to make their own homepage
and connect to the watchmakers organisation web
site. Operational expenses should have been covered
by advertisements from the shop-owners on the
watchmakers federation home page. Because of the
unclear financial situation of the project and the
generic formulation of the clients need, the ICT
firm was not willing to invest time resources to
negotiate the web solution with the client. The
presented solution was mainly determined by the
ICT firms experiences with other branches and
organisations. The limitation of the space for
negotiation between client and supplier made a
generally flexible artefact as a web site inflexible
with respect to the special context it was meant to
serve.
Case 2: A SAP-implementation. Results

and discussion.
This case consists of an energy supplier that
implemented SAP, an electronic administrative
program. First of all, it was stated at management
level that the energy supplier, hereafter called
Energy, was to implement an administrative
program. When the decision was made, a project
group was set up. Those who wanted to join the

group could apply for membership. Many applied,
but most of them came from the higher levels in the
organisation, and none of the operators. Participating
was considered a one-year full day job. The project
group was to make a requirement specification and
also choose an ICT solution, negotiate and cooperate
with the ICT supplier during the implementation.
The group prepared a requirement specification,
invited tenders from a few firms, and after an
evaluation of the offers decided to go for SAP. The
group then started the cooperation with the SAP
supplier. The implementation finished so to speak on
schedule 01.01.00.
Energy was in a special situation due to several
factors. One of these was the organisational
structure. The organisation consisted originally of
five small firms, which recently had merged. The
structure was not totally set when the SAP
implementation started, a fact that was used to
explain the project groups almost unlimited
freedom in their work. The group had to work very
independently, because for several questions there
were no answers or individuals in positions to clear
up the situation, due to the unfinished organisational
structure.
The size of the new, merged organisation became
one argument for implementing SAP. Previously
some of the small energy suppliers were used to
rather unstructured and informal practices,
something that was considered possible because of
the small scale in each firm. Now, as a new operator,
the organisation could not handle the large number
of practices anymore. According to the leaders that
was one reason why they needed a tool for
routinizing the employees tasks.
Both workers and managers pointed out that the new
organisation needed to build a common culture.
When five firms join forces, it is not hard to imagine
that it implies a fusion of different routines, different
views of what is the best way to solve a problem,
and so on. Even though all the energy suppliers, to a
large degree, did the same work, we were told that
each firm, even at group level, developed its own
culture. We can assume that both management and
working is easier if everybody has adapted a
common practice, and share one organisational
culture. According to representatives from the
project group and management, an administration
program may work that way. Following the same
implementing process, learning the same practices,
attending the same routines that will give a lot of
people the same experiences (the experiences can, of
course, depend on which part of the organisation one
belongs to, at what level, which former experiences
one has and so on). Shared experiences are an
important step in building a common culture.
This shows how a new organisational situation

created new needs. But the organisation was not the
only arena for changes. During the last decade
energy suppliers have experienced several changes
in their market situation. The branch, which used to
be run as a monopoly, is now, due to deregulations,
more and more exposed to traditional market forces.
As a consequence, members of the organisation, no
matter hierarchical level, are now more aware of
how the market works, and how Energy is capable
of managing changes in market conditions. That
raises questions about management, effectivity and
rationalisation, and, in relation to that, the idea of
implementing an administrative program was
introduced. A tool to strengthen the competitive
capabilities would be appreciated.
Energy also wanted more operational control in
general, and it wanted each one of the employees to
have more control over their own work process. This
wish was another element that was made relevant in
the decision about implementing an administration
program.
Among the top management it was hardly ever
questioned that such a program would be the right
tool to reach the goals these needs implied. Nor was
the cost any big issue. The program was expected to
help the organisation to save money in the long run.
The project group was very well aware of their
requirements, and kept focus on those. At this point
Energy differs from many other organisations in
being very observant about its needs.
Energy chose SAP despite SAP being known as
being difficult to implement, and as having a high
user interface. This can be seen as quite a paradox,
since time was a crucial factor for Energy. It was
important that the program be implemented on the
date when all the firms were to join forces officially.
That meant that Energy did not have much time, and
the implementation was carried out rather quickly.
Also, the ICT-supplier stressed the importance of
creating milestones, defining dates for when certain
things should be finished and keeping up with those
plans. Even although the implementation was not
totally done on time it was considered a success due
to the time factor. The ICT-supplier especially,
expressed satisfaction with the result. Energy
agreed, but was, nevertheless, a bit more nuanced in
their afterthought assessment of the process.
Informants from Energy would have appreciated
more time, and their lack of time was illustrated by
the fact that the supplier finished a report for them
due to time constraints and lack of time for proper
training.
From the start, the project group did not know much
about the technology in the SAP-program. But the
group knew a lot about what it wanted from the

technology, since it knew its requirements in detail.
The organisational knowledge base was large. The
group members knew the tasks, the needs and
wishes at a rather detailed level. This can be
explained partly by the fact that the project group
consisted of industrial professionals, and not of
employees from the ICT-staff. Yet, there were no
representatives from the lowest levels of operators,
but some of the members of the project group did
have their background from that kind of work.
During the implementation, the project group
learned very much about how the program worked.
The supplier demanded that several among the
employees attended different training courses, and
that they in turn trained other employees. Energy
showed their understanding of the importance of
learning by adopting this way of spreading
knowledge. The teaching was concentrated on
technical parts of the program. After a while that
gave Energy a rather solid technological knowledge
basis. Their clear understanding of their own
situation and own needs, combined with an
increasing technical knowledge, gave them a solid
platform that made them capable to negotiate with
the suppliers.
The supplier did not get the same amount of
information about Energy. Only to a small degree
did the supplier get to know the users branch and
situation. Although the supplier knew more about
SAP than Energy did, it turned out to be Energy that
altogether had the most insight. Energys project
group did not favour technological knowledge at the
sacrifice of organisational knowledge. That gave the
organisation a certain position when it came to
negotiation about customising of the program.
Spontaneously, we might think that an
administrative program such as SAP does not give
room for negotiation. Except from some (low)
degree of customising, it is a standard program,
which is meant to serve all kinds of organisations.
According to a consultant that was hired as a project
leader for some months, the flexibility connected to
SAP is marginal, especially if it is compared to
technologies like the web-solution our first case was
asking for. Using Bijkers expression (1995), we can
say that the interpretative flexibility is small. There
should not be too much to interpret, nor too much to
negotiate about. Still, we find that the
implementation implied negotiations between the
parts.
This concerns, however, the relation between the
supplier and the project group in Energy. Between
the project group and the other employees in Energy,
the situation was different. The other employees had
various knowledge bases, and although they were
taught about the technological parts of the program,
they did not obtain the same understanding of the

process. They expressed a focus that differed from
the group members, by questioning the
technological development and its social
complications. For example, some of the operators
feared that social life would suffer because of the
use of technology as an instrument for
communication. However, they did not advocate
these opinions too loudly, since they also saw a
connection between managing data and job security
in the future.
negotiation with the supplier. From this point of

view, the common meaning that was found, was
both inter- and intra-organisational based. This was
not the case for the watchmakers. They lacked an
overall understanding of the implications of the websolution for the activities and functions of their
organisation. The fact that they did not see the
necessity of establishing a project group resulted in
an external governing of the implementation
process.
Conclusions
A comparative discussion of central
aspects of the two case studies.
An analytical comparison shows clearly some
important differences between the two cases. First,
time is a relevant factor for creating a mediation
space between the different actors involved in the
implementation projects. In Energy, the existence of
a fixed deadline presses the actors together in
finding common meanings of the different
alternatives. These common understandings make it
easier for the actors to agree on the technological
alternative regarded as the most suitable for the
specific context. On the contrary, without any
deadline, like in the watchmakers case, the process
turns to be unfocused and diffuse, making the
interaction between users and suppliers limited and
ineffective.
Secondly, also economy plays an important role in
generating negotiation space between the users and
suppliers. In both cases, economy was a critical
factor. From a financial point of view, in the case of
the watchmakers, the implementation of an ICT
system was considered only as an expense unable to
generate income for the federation. This resulted in a
project characterised by a lack of a clear financial
situation. Again, as a result, the supplier was
unwilling to spend time and resources in negotiating
the technical solution with the user. In the case of
Energy, the implementation of the administrative
program was not only considered as an expense, but
also as a possibility for saving money in the long
run. The financial situation was made clear at an
early stage in the process, which constituted a fixed
frame for the interaction of the actors. Also the
budget was generous enough to give the partners
room to agree also upon expensive solutions.
Thirdly, the degree of cross-functional integration of
the ICT system is another critical factor for the
success of the implementation. The case of Energy
shows a very high degree of integrating the ICT
system throughout all the organisational functions.
The effect of the SAP-implementation was evaluated
in relation to the entire value chain. Individuals with
backgrounds from different organisational functions
were participating in the project group in order to
express the different professional interests in the
This paper is based on two case studies that were

carried out in 1999. The studies belong to a two-year
project that is still ongoing. We are still collecting
data from two other cases. These empirical data
seem to confirm what our analyses of the two first
cases showed. With a weak technological knowledge
base, it is hard for the user to negotiate with the
supplier, particularly when technological knowledge
is regarded as more important than organisational
knowledge. On the other hand, when the users
manage to increase their technological knowledge
base and combine that with an organisational
knowledge base, their negotiation position is
strengthened. It does not appear that the suppliers
knowledge of the specific users context is an
important factor in determining the negotiation
space between user and supplier.
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Management implications for decision support systems in South Africa

U R Averwega and G J Erwin b
a
Faculty of Science and Agriculture, University of Natal, Pietermaritzburg, South Africa

Faculty of Science and Engineering, University of Durban-Westville, Durban, South Africa
Abstract
Following the democratization of South Africa, a
national Information Technology (IT) approach,
including Decision Support Systems (DSS), has been
proposed by government. This IT policy seeks to serve
South Africas own needs rather than echoing those of
other (developed) nations. The authors have identified,
from available literature, nine CSFs for DSS
implementation. No previously published literature in
this field existed in South Africa. The authors surveyed
South African organisations to investigate whether these
same CSFs were present. The authors identified several
differences between the accepted DSS implementation
norms prevalent in developed countries and those found
in South Africa, including the existence of an additional
critical success factor namely, appropriate DSS tools.
The paper concludes with discussion on some
implications for management when embarking on DSS
implementation programmes in South African
organisations. Executive Information Systems are also
likely to be influenced by similar considerations.
Keywords:
Critical Success Factors; Decision Support Systems;
Developing Countries; Executive Information Systems
South Africa and IT

Thabo Mbeki was elected as South Africa's second
democratic President in June 1999. His vision of an
African Renaissance (Mbeki, 1999) is not an idealistic
or romantic notion (Management Today, 1999). He sees
himself as a realist and his Renaissance vision is based
on four pillars:
the history of Africa;
the potential of Africas peoples;
the value of democracy and good governance;
and
power of information and modern technologies
(italics added by authors).
Modern industrial and economic development cannot be
achieved without the successful application of science
and technology (Soltane and Adam, 1999). 1998 was
declared as the Year of Science and Technology in
South Africa. Industrialised countries have devoted
energies to improving their understanding of the
economic implications of rapid technological change.

For example, Information Technology (IT) offers an
unparalleled opportunity for regeneration of the African
economy (Kgaphola and Magau, 1999). The Declaration
issued at the conclusion of the June 1990 Organisation
for Economic Co-operation and Development (OECD)
ministerial meeting (Department of Arts, Culture,
Science and Technology, 1996) stated that technological
change was a fundamental source of economic growth
in the OECD economies. On 4 September 1996 the
South African Department of Arts, Culture, Science and
Technology published a White Paper on Science &
Technology: Preparing for the 21st Century. The
White Paper identifies that the major challenge will be
to integrate successfully into global systems and
communities while addressing the local needs and
aspirations of South Africans. One of the requirements
underlying South Africas IT policy is the promotion of
an information society. The White Paper states that the
development of a South African vision is urgently
required; one serving our own needs rather than
echoing those of other nations (italics added by
authors).
There is significant interest in the role of IT in the
economies of developing countries. See, for example,
Beckett (1994), Goodman (1994) and Odedra et al
(1993). Crossman et al (1995) found it surprising that
there is not a widely accepted definition of a
developing economy and suggest the characteristics
of a developing economy are:
little export diversification; lack of national
economic independence; increased economic
subordination; wage differentiation; widespread
poverty;
widespread
unemployment;
and
unbalanced population demographics (mostly young
people). See Prieto-Diaz and Willson (1981).
According to van Buren (1999), the chief characteristic
of South Africas population and the one which
dominates its society is the great racial, linguistic and
cultural heterogeneity of its people, with Africans,
Asians, Europeans and mixed-race (Coloureds) citizens
making up the population. Despite an improvement in
the racial distribution of personal income in recent
years, income remains very unevenly distributed.
According to the preliminary results of the October
1996 South African census, the total population was
37,859,000 (van Buren, 1999). South Africa is divided

into nine provinces (regions), the most populous of
which is KwaZulu/Natal, in which the authors' survey
was conducted. KwaZulu/Natal has a relatively poorlyskilled labour force. The literacy rate of the province is
also lower than the national average. The economy has a
shortage of professional human resources.
Avgerou and Madon (1995) report that developing
countries rely increasingly on technologies that are
produced almost exclusively in industrialised countries.
The researchers, however, contend that most developing
countries have no capacity to produce IT and very
limited ability to maintain and upgrade locally the
imported technology. Very little IT transfer has taken
place to date between the developed world and the
African developing countries. South Africa recognises
that (with the rest of the world) it is essential that it
becomes a significant player in the global information
society (Adam, 1998). We are tired of the mindset that
typically characterises this country (South Africa) as
being behind the rest of the world (Apteker and Ord,
1999).
The existence of various attributes of IS in
South African organisations has been studied by
researchers. See, for example, Addison and Hamersma
(1996). This paper focuses on the broad framework of
management information systems (IS) and then
specifically deals with Decision Support Systems (DSS)
in the South African environment. The authors explore
published findings of identified critical success factors
(CSFs) for the implementation of DSS in developed
countries. As no previously published literature exists,
the authors seek to establish whether these same CSFs
exist in the developing country of South Africa. This
paper explores some of the non-technical issues for
organisations embarking on a DSS implementation
program. The scope of the research was limited to
existing DSS in the KwaZulu/Natal province.
Critical Success Factors (CSFs)

CSFs for the field of IS have been systematically
explored. See, for example, Garrity and Sanders (1998).
This paper develops guidelines for the implementation
of DSS as a set of CSFs. Rockart (1979) defines CSFs
as those few key areas of activity in which favourable
results are absolutely necessary for a particular
manager to reach his or her goals. CSFs for an
organisation are the limited number of areas in which
results, if they are satisfactory, will ensure successful
competitive performance for the organisation. They are
the key areas where things must go right.
Thierauf (1982) states that if the results in these areas
are not adequate, the organisations efforts for the
period will be less than desired.
Background to the Study and Research

Method
Factors influencing IS implementation and success
measurement have been some of the earliest and most
actively researched topics in the IS field. See, for
example, Ginzberg (1975), Lucas (1981), Kwon and
Zmud (1987), Sprague and Carlson (1982) and Kivijrvi
and Zmud (1993) and further discussion in Averweg
and Erwin (1999). Implementation is the software
underbelly of IS development (Keen and Scott Morton,
1978). The success of a well-designed IS can be
seriously reduced by improper or inadequate attention to
implementation issues. Frameworks are descriptive
structures of DSS implementation. There are several
frameworks for DSS that classify relationships (e.g.
between satisfaction, usage, management support,
organisational support, etc) relevant to DSS
implementation (Kwon and Zmud, 1987).
Despite the availability of this extensive literature,
Kivijrvi and Zmud (1993) note that the understanding
of IS implementation has not progressed very far in
moving from quite general prescriptions to situationspecific prescriptions i.e. guidelines for facilitating the
implementation of particular types of IS within a
particular organisational context. Many reasons may
exist to explain this lack of progress (Kwon and Zmud,
1987). One explanation is that most research has been
focused on examining only first-order effects rather than
interaction effects of the variables under investigation.
Kivijrvi and Zmud (1993) acknowledge that defining
and measuring the success of an IS has been the most
difficult issue with which implementation research has
contended. The researchers also believe that evaluating
DSS success is particularly burdensome because of the
very tight bonding to the problem context and their
propensity to be characterised by broad, ambiguous goal
sets when they are initiated. A number of different
measurement approaches have been used with prior
DSS research. These have reflected both individual,
organisational, economic and personal outcomes. See,
for example, Sprague and Carlson (1982).
The Guimaraes, Igbaria and Lu model (Guimaraes et al,
1992) represents the first development and test of an
integrated model for classifying the determinants of
DSS implementation success. The Guimaraes, Igbaria
and Lu model has six sets of variables impacting on
DSS success:
characteristics of the implementation process
(top management support, user training and
user involvement);
characteristics of the business task (task
structure, task difficulty, task variability and
task independence);
characteristics
of the decision makers
(organisational level and DSS experience);

characteristics of the DSS (the supported base,
of judgment and modelling; manipulation of

numerical data is feasible; information supports
specific decision-making and decisions; analysts
and managers are the highest organisational level
served; and emphasis is on effectiveness rather than
efficiency.
level of managerial activity and source of

information);
user satisfaction with the DSS; and
user perceptions of DSS benefits.
Guimaraes et al (1992) note that their study has some
obvious limitations which should be addressed by
further research. One of those limitations is that other
variables may be added to the model as possible
determinants of DSS success.
Kivijrvi and Zmud (Kivijrvi and Zmud, 1993)
integrate three main constructs plus control variables
and suggest four measures of DSS success, namely:
User Information, Relative Usage, Perceived Utility
and Goal Realisation.
The researchers also suggest that DSS implementation
success can depend on other variables such as maturity
of an organisations IS portfolio.
Guimaraes et al (1992) and Kivijrvi and Zmud (1993)
suggestions for success factors have been combined by
the authors into nine CSFs, namely:
User Involvement, Top Management Support,
User Training,
Information Source, Level of
Managerial
Activity
Being
Supported,
User Information Satisfaction, Relative Use,
Perceived Utility and Goal Realisation.
The presence or absence of these CSFs is suggested by
evidence items extracted from the available literature.
See, for example, Guimaraes et al (1992), Baroudi and
Orlikowski (1988) and Goodhue (1990). A structured
questionnaire (Averweg, 1998) was developed to
investigate the existence of those evidence items, fully
or partially. The existence of evidence item(s) was taken
as an indicator of the presence of a CSF in an
organisation.
The questionnaire was tested using expert opinion to
ensure it was clear, intelligible and unambiguous. The
sample covered organisations with DSS experiences,
from three major sectors: business managers/users
whose organisations utilise DSS; professional
consultants in the DSS arena; and IS department
members whose organisations have implemented DSS.
A questionnaire of this type needs to be focused so that
the respondents do not provide data of general
applicability to IS. To protect the respondent data from
this lack of focus, the authors described DSS as having
the following characteristics:
The applications address long-range strategic
planning and complex integrated problem areas; the
focus is on decisions, flexibility and user
friendliness; database management systems have
interactive access and factual knowledge; decision
capabilities deal with semi-structured problems,
integrated management science models with a blend
Findings
Using the snowball sampling technique (Cooper and
Emory, 1995), the authors targeted 27 sizeable and
well-established organisations in KwaZulu/Natal over a
spread of industries that have DSS experience. The
interviews were conducted during the period
October 1997 to June 1998 at the organisations
premises.
One interview in each of the 27 organisations was
conducted, covering the following three categories of
respondents: 15 DSS business managers; 4 in-house
IS personnel; and 8 professional DSS consultants from
different organisations. The questionnaire had three
parts:
Part
One:
organisations
demographics,
clarification of the various types of IS and
distinguishing characteristics of DSS;
Part Two: 28 evidence item statements each on a
5-point Likert-type scale with scored values of
1-5 inclusive; and
Part Three: open-ended questions regarding DSS
implementation.
For each organisation, an item analysis (Cooper and
Emory, 1995) was carried out to validate the degree of
discrimination for each evidence item. Only statements
that were good discriminators were used in the analysis.
The frequency of evidence items for successful and not
successful organisations was quantified. The data was
tested for reliability using Cronbachs Alpha
(Averweg, 1998). See, for example, Doll and
Torkzadeh (1988) and Lai (1996).
The grading of each organisations DSS as successful,
partially successful or not successful was an assessment
by the respondents interviewed. Their assessments were
as follows:
Successful
: 14 organisations.
Partially successful : 7 organisations.
Not successful
: 6 organisations.
Summated scales were used to produce a total score for
each respondents attitude to each statement. Mean
scores for each scale item (i.e. statement number)
among the low scorers and high scorers were calculated.
The scale item means between the high scoring group
and the low scoring group were then tested for
significant difference by calculating t values. Only those
statements whose t value was _ 1.75 were used in further
analysis (Edwards, 1957). Statement numbers 2, 12, 14,
18 and 22 were excluded from the statistical analysis on

these grounds.
A CSF was regarded as being present in an organisation
when every associated evidence item statement number
scored a minimum value of 4 on the Likert scale. Using
the seven organisations that recorded the highest total
scores and the seven organisations which recorded the
lowest total scores, a summary of the frequency of each
CSF was calculated. See Averweg (1998). The number
of CSFs found present in each of the seven highest total
scoring and seven lowest total scoring organisations was
extracted and is shown in Table 1.
Table 1 - Number of CSFs found present for the Seven
Highest and Seven Lowest Total Scoring Organisations
Organisations total
points scored
112
No of CSFs
found present
9
103
102
99
98
97
96
77
76
76
73
72
71
61
From the values in Table 1, Pearsons product-moment

coefficient of linear correlation between organisations
total points scored and number of CSFs found present
was calculated as r = 0,941. The number of degrees of
freedom was 12. The table values (critical values of the
coefficient of linear correlation (Melville and Goddard
(1996)) are 0,458 (5% level) and 0.612 (1% level).
These calculations suggest a strong relationship between
the total value of points scored by organisations and the
number of CSFs found in the surveyed organisations.
Of the nine identified CSFs, only five were totally
supported by all surveyed organisations. These were as
follows:
User Involvement, Top Management Support,
User Training, Relative Use and Perceived Utility.
The four CSFs totally not supported by all seven
organisations which recorded the highest total scores
were as follows:
Information Source, Level of Managerial Activity

Being Supported, User Information Satisfaction and
Goal Realisation.
There were no CSFs totally supported by the seven
organisations that recorded the lowest total scores.
Discussion of Findings
The authors summarised findings for each CSF were:
User Involvement CSF
All seven highest total scoring organisations indicated
that there must be significant user involvement during
the project. Six of the highest total scoring organisations
reported an owner of the DSS. In the case of the
highest total scoring organisations, six of the
organisations reported that owners were non-IT
personnel (e.g. general managers, financial directors).
For the lowest total scoring organisations some
respondents stated that for their DSS they didnt know
who the owner was, or the owner has left the
organisation or it was supposed to go to the users but
it still vests with IT. Turban (1996) notes that the user
is left with a system at the end of a project: if the user
does not own the system from a psychological point
of view, the system is unlikely to be successful.
Top Management Support CSF
Top management support is recognised as one of the
most important ingredients necessary for the
introduction
of
any
organisational
change
(Turban, 1995). A group of researchers hypothesized
that top management support was the key factor in
determining success (Garrity and Sanders, 1998).
However, Laudon and Laudon (1998) warn that
sometimes management support can backfire. This
occurs when management becomes overcommitted to a
project, pouring excessive resources into a development
effort that is failing or should never have been
undertaken in the first place (Newman and Sabherwal,
1996). However, in this study, this stance was not
observed. Sanders and Courtney (1985) and Kaiser and
Srinivasan (1980) both conclude that the support of top
management is critical to DSS success. The authors
results confirm this. Organisations successfully
introducing DSS regard it as a strategic, important
direction actively supported by management. All the
highest total scoring organisations had a DSS
champion
(sometimes
referred
to
as
project sponsor) at senior management level either
when interviewed or when implementation first took
place.
User Training CSF
The User Training CSF was totally supported by all
organisations in the highest total scoring group.
Respondents felt that individual users needed to be
consulted. Those users who had been trained, had such

training conducted in house.
Information Source CSF
Turban (1995) notes that executives are recognising that
IS allow organisations to compete and sometimes even
to survive. The authors saw no evidence of this in the
survey. Turban (1998) is of the opinion that in todays
environment with the interaction with existing
Thirteen organisations (of the 14 analysed) reported that
their DSS facilitated better decisions even though some
implementations were not entirely successful. This tends
to indicate that for the majority of all organisations
some benefit was derived from the DSS. This supports
Waldens (1996) findings.
User Information Satisfaction CSF
Six of the seven highest total scoring organisations
agreed on all the evidence items. Three of the seven
lowest total scoring organisations reported that they had
a difficult-to-understand user interface.
Relative Use CSF
The Relative Use CSF was found to be present in all
seven highest total scoring organisations. Six of the
seven highest scoring organisations reported high usage
of their respective DSS. This suggests support for
Welsch (1986) whereby DSS success may be measured
by frequency of use (if the use is voluntary).
Perceived Utility CSF
Watson (1998) reports that the Perceived Utility CSF is
one of the top five CSFs for successful DSS
implementation. This CSF was totally supported by all
organisations from the highest total scoring group in this
survey. There was consensus that the DSS is perceived
as an important system for the organisation. This tends
to suggest that whenever DSS implementation
programmes are initiated, cognisance should be taken of
possible psychological barriers and DSS context issues
(e.g. cultural, organisational, task, role or individualrelated). With South Africas racial and cultural
heterogeneity, these factors appear very significant.
Goal Realisation CSF
Only three of the highest total scoring organisations
reported that the DSS expectations had been met. Two
of the seven lowest total scoring organisations reported
a divergence between their expected and actual
achievements. This suggests unrealistic expectations of
the organisations DSS.
This paper discusses some implications for management
based on several unexpected findings, namely,
suggestion of an additional and previously
unrecognised CSF; and
organisations can be successful but report the
absence of one or more CSFs.
systems and the World Wide Web, information source

is increasingly important. All respondents indicated that
information use was always current. The term current
had different connotations (e.g. data from a month-end
file, data captured from a previous population census)
and this may be a possible explanation for not ascribing
a relative sense of recency to the information source.
Level of Managerial Activity being Supported CSF
Each respondent was asked whether there were any
factors, apart from those already mentioned and queried,
that contributed to success or failure of DSS
implementation. Some respondents responses could not
be classified into one or more of the nine identified
CSFs. The authors suspected another CSF in existence.
In addition to the above CSFs, an additional and
previously unrecognised CSF was indicated, namely
the ability to utilise appropriate DSS tools. The inability
to accomplish this was a common issue amongst
unsuccessful organisations. Suggestions as to the
existence of this CSF have been noted in the personal
insights of Efraim Turban (1998) and Daniel Power
(1998). Turban (1998) states that there is a new factor
which he describes as availability of commercial
software development tools whilst Power (1998)
reports using an appropriate software development tool
set.
Crossman et al (1995) indicate that wise judgement is
needed when deciding on the selective use of IT. The
authors feel that this is particularly relevant to DSS. No
matter what can, or has been undertaken in other
countries, the extremes of optimism or pessimism are
likely to be wrong. The authors suggest support for
Odedra et al (1993) that instead of trying to catch up
with the industrialized world, we follow the route that
extreme care must be exercised by all the parties
involved in the transfer of technology from one country
to another.
The study suggests that organisations embarking on
DSS implementation must ensure that six CSFs, viz.
User Involvement,
Top Management
Support,
User Training, Relative Use, Perceived Utility and
Appropriate DSS Tools are properly addressed during
the implementation process, since these CSFs were
found to be present in all successful organisations.
These findings suggest that the remaining four CSFs
may not be critical, in the sense that they are
absolutely necessary to ensure success (Rockart,
1979; and Fidler and Rogerson, 1996). This does not
imply that the remaining four CSFs need not be
addressed but the authors contend that it may be
inappropriate to regard the remaining four CSFs as
critical. Consequently, a contingency approach is
suggested by labelling them as important but not
essential for success (Averweg and Erwin, 1999).
The study suggests that organisations need ongoing
enthusiasm and support from senior management. A
reluctant or indifferent attitude amongst senior

management may not result in a successful project.
Accordingly, the principal recommender must ensure
that his own manager is convinced of the medium and
long term benefits that will accrue to the organisation.
Turban (1996) suggests that there is a need to
concentrate on the relationship between DSS designers
and users. During the early stages, it is important for the
individuals involved with the system to develop trust in
each others objectives and competence. The designers
have to want to help users and users must be willing to
spend time working with designers and on their part of
the design to develop a co-operative relationship. If
those involved become adversarial, Turban states that
the system is doomed. Consequently during the design
process, a major objective is for users to accept
ownership of the system. Organisations not confining
themselves to this guideline are likely to be dissatisfied
in the medium term.
The developing country, with characteristics shown
above, needs to pay particular attention to the following
issues:
wage differentiation, exacerbated by the elite
status of IT professionals;
widespread poverty and unemployment, with
demands for job creation programs directly
contradicted by the diffusion of IT in the
short-term; and
unbalanced population demographics (mostly
young people); whose often lower education
achievements, from disadvantaged schooling,
do not equip them to build and maintain an IT
career.
Many developing countries cannot and do not develop
their own software tools and the echoing of developed
countries technology is further worsened by the
prevalence of English as the means of distribution of
most software tools. Semantic and syntax issues can
play a major role in building confidence and capability
amongst IT managers in a developing country.
The developing country profile can lead to major
resistance to IT implementation and an implementation
time-scale far in excess of that contemplated by
developed countries. The authors suggest that a long
period of discussion, training and personal development
is necessary for those affected by IT/DSS
implementation in such countries. The considerations
shown may account for the perceived lag in the extent
of IT implementation between developed and
developing countries, and the need for a major amount
of echoed technology rather than any innovative IS
design. Falling behind in the IT race by developing
countries becomes even more rapid as the pace of
change in technology continues to increase.
Summary
In summary, this study confirmed the existence of five
CSFs for successful DSS implementation. These are
User Involvement,
Top
Management
Support,
User Training, Relative Use and Perceived Utility and
the newly recognised Appropriate DSS Tools. The
existence of the other success factors is recognised but
the authors findings suggest that they are not critical to
successful DSS implementation. South Africa has to
implement technology in a competitive environment
(Adam, 1998). CSFs for DSS should serve South
Africas own needs rather than echoing those of
developed countries, bearing in mind the implications of
developing country characteristics on IT/DSS
implementation. The identification of the Appropriate
DSS Tools CSF has particular relevance to developing
countries where English is not a first language and the
meaning of appropriate can often be a very localised
and specific one.
The emergence of the World Wide Web and the growth
of Executive Information Systems (EIS) as part of the
globalisation of commerce (Lawrence et al, 1998)
indicate that the work reported in this paper may have
strong significance for design and implementation
considerations for EIS. In particular, CSFs for EIS, as
well as DSS, appear to be increasingly associated with
the rapid and competitive surge in Web-based software
and user interface standards that are continually being
developed. The results reported in this paper suggest
that there may be a fundamental shifting of the factors
that will be used to implement and manage both DSS
and EIS over the next few years.
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Task and emotional conflict in culturally heterogeneous workgroups:

Leader and member responses
Oluremi B. Ayoko a and Charmine E. J. Hrtelb
a
Graduate School of Management ,The University of Queensland, Australia
b
Graduate School of Management, The University of Queensland, Australia
Abstract
The management of culturally heterogeneous
workgroups (CHWs) is one of the major challenges
facing organisations in the 21st century. Although the
diversity literature suggests that diverse workgroups
can be more innovative and better problem solvers
than homogeneous groups, it also acknowledges that
diverse workgroups often fail to achieve this potential
because of task and emotional conflict. The kinds of
conflict that are generated in CHWs and leader and
member responses to them lack thorough
documentation in the literature. In this paper, we argue
that the group members and leaders response to
emerging conflict are important predictors pf the
nature and the outcomes of conflict experienced in
CHWs. A qualitative data from the first part of a
research program examined the emotions experienced
with conflict in diverse workgroups and group leader
and member responses. Results show that avoidance is
the major leader response to conflict while the member
responses include, parties not talking to each other,
screaming, yelling and crying. Training in emotional
management skills is suggested for group leaders and
members of CHWs.
Keywords:
Emotions; Conflict; Diversity
Introduction
One of the major challenges facing organisations in the
21st century is the management of increasing
heterogeneity, especially cultural heterogeneity at the
work place. The diversity literature suggests that
diverse workgroups are more innovative and better
problem solver than homogeneous groups. Managers
attempts to manage heterogeneity and capitalise on the
above advantages, however, have met with mixed
results (Chatman, Polzer, Barsade & Neale, 1998) For
example, in spite of the above advantages, studies have
also shown that diverse workgroups compared to
homogeneous groups suffer from poor cohesion and
social integration (Hambrick 1994), more conflict,
higher turnover, less trust, less job satisfaction, more
stress,
more
communication
OReilly, 1992)
absenteeism
and
more
difficulties (Tsui, Egan &
This study is interested in Culturally

Heterogeneous workgroups (CHWs) and by this
we refer to workgroups that are comprised of
members who are different on the basis of
ethnicity, race, value and cultural backgrounds.
Observable heterogeneity as presented by CHWs
more often than not arouses responses founded in
biases, prejudices or stereotypes (Milliken &
Martins, 1996) Biases, prejudices
and
stereotypes are themselves founded in social
identification and self-categorisation (Tafjel &
Turner, 1986) Categorising individuals into
different groups may provide naturally occurring
lines along which conflict can be drawn. In
addition, these evoked stereotypes and prejudice
for the dissimilar others in a heterogeneous
workgroup; no matter how short-lived (Milliken
& Martins, 1996) may be a source of conflict,
which, in turn, inhibits optimal performance.
Consequently, CHWs (than homogeneous
workgroups) are likely to be more prone to
conflict.
The nature of conflict observed in culturally
heterogeneous workgroups (CHWs) is task and
interpersonal (cf. Jehn, 1997; Tsojvold, 1991).
Conflict at the individual, group and sometimes,
organisational levels affects outcomes of diversity
positively or negatively (Tsojovld, 1991; Jehn,
1997). Group member and leader responses to
emerging conflict, we argue, are important
predictors of the nature and outcomes of conflict
experienced in diverse workgroups. In particular,
responses and strategies that enable group
members to promote productive conflict while
minimizing destructive conflict are expected to
facilitate task and social outcomes.
Conflict
Conflict literature reveals that few studies have
empirically tested the effects of conflict in
organisations (Jehn, 1997) and fewer still have
looked at conflict and its associated emotions in

diverse workgroups or ways in which group members
and leaders respond to or manage it. In this paper, we
define conflict as the perceived incompatibilities by
parties of the views, wishes and desires each holds
(Jehn, 1992). Although most researchers have
conceived conflict as damaging and disadvantageous
with adverse effects for individuals, groups, and
organizations, research shows that conflict can be
beneficial (De Dreu & Van de Vliert, 1997; Van de
Vliert, Nauta, Giebels & Janssen, 1999). Few of the
plentiful studies on conflict have examined the positive
effects of conflict (e.g., Jehn, 1997). We argue that the
responses of leader and member to task and emotional
conflict will predict the production of both destructive
and productive conflict processes.
Emotion and Conflict
Triggers of intra-group conflict events may be taskrelated or social-related, the latter sometimes being
referred to as relationship or emotional conflict.
Emotional conflict arises from negative affect and
dislike (Berscheid, 1983) so is associated with personal
and relationship issues manifested as friction,
frustration, and personality clashes within the group
(Ross, 1989). This type of conflict produces negative
reactions that inhibit personal relationships, which
limits group cohesion and efficiency. In addition, it is
increased by dissimilarity in race and tenure attributes
particularly because these are relatively impermeable
and people find it difficult to identify with (and easy to
stereotype) those of a different race or tenure. Thus,
race and tenure differences tend to encourage heated
interactions in workgroups (Pelled, Eisenhardt & Xin,
1999). Pelled et al. (1999) therefore suggest that
managers should pay particular attention to group
processes in multi-race and mixed-tenure settings.
Task conflict, in contrast to emotional conflict, pertains
to the conflict of ideas in the group and disagreement
about the content and issues of the task. It is the
awareness that there are disagreements about the actual
tasks being performed in the group (Jehn, 1997),
although the ultimate goal of the group may be shared
(Brehmer, 1976). These conflicts can produce better
outcomes for the group or can create emotional angst
and occupy the group in disputes over how to
accomplish tasks or fail to inform better decisionmaking. Task conflict is closely linked with value
diversity in diverse workgroups (Jehn, 1997) and, by
extension, CHWs. Task conflict is more likely in
CHWs as work orientation and style is one feature that
differentiates cultures.
So far, we have shown that the genesis of conflict is
often emotional (emotional conflict) and where it is not
(i.e., task conflict), that it produces emotional
reactions. We have also shown that diverse groups are
more likely to experience conflict than homogeneous
groups because of their greater differences in values
and norms relating to interaction and work style.

Next we consider some of the ways in which
group members and leaders respond to conflictrelated emotions.
Responses to Conflict-Related Emotions
It is generally agreed by organisation theorists
that organisational conflict should be managed
rather than resolved to enhance individual, group,
and system wide effectiveness (Rahim, Garret &
Buntzman, 1992). The management of
organisational conflict involves diagnosis and
intervention at the interpersonal, intragroup, and
intergroup levels. Diagnosis involves identifying
whether there is need for an intervention and the
type of intervention needed. Intervention may be
designed to attain and maintain a moderate
amount of productive conflict and to enable
organisational members to learn styles of
handling interpersonal conflict so that individual,
group, and overall organisational effectiveness are
enhanced (Rahim, 1986).
Because emotional conflict arises from and
perpetuates negative emotions generated by
confrontation with values, wishes, and desires
dissimilar to ones own, we argue that emotion
management skills are crucial in culturally
heterogeneous workgroups. Good emotion
management
skills
enhance
informationprocessing capability in a way that enables greater
ability to motivate, plan, and achieve. More so,
successful regulation of emotion allows
individuals to refocus their own and others
attention on more important problems (Salovey,
& Mayer, 1990). On the other hand, if emotional
conflict is not minimised and resolved in a
positive way, group efficiency and effectiveness
suffers (Agyris, 1962).
Emotional conflict is compounded in the
heterogeneous workgroup because such groups
diverge more in held values and beliefs.
Therefore, members and leaders of heterogeneous
workgroups need to be able to monitor their own
emotions and the emotions of others in order to
facilitate effective outcomes in the group. In
particular, CHWs need to possess the emotional
capability to acknowledge, recognise, monitor,
discriminate and attend to group members
emotions (Huy, 1999). The consistent application
of this capability will be manifested in the groups
norms and routines related to feeling (c.f. Schein,
1992), which we refer to as emotional climate.
Thus, it is argued that the level, amount, intensity
and frequency of conflicts experienced in
culturally heterogeneous workgroups will be
related to the extent of the leaders emotional
capability.
62
TRANSCENDING BOUNDARIES: I NTEGRATING P EOPLE , P ROCESSES AND SYSTEMS
To summarize our discussion so far, cultural diversity

within a workgroup increases the delineations along
social and task lines, which increases the likelihood of
emotional and task conflict respectively. In the shortterm, group members respond cognitively and
affectively to each conflict event. These reactions may
initiate a cycle of productive or destructive conflict.
Over time, the types of cycles experienced by the
group impact upon the groups social (e.g., emotional
climate) and task characteristics. This conflict
sequence, we argue, is affected by the emotion
management capability of group members and leaders.
In particular, we propose that:
Proposition 1: CHWs emotional climate and group
norms, will moderate the type, frequency, duration and
emotional outcomes of conflict produced in the group.
Proposition 2. CHWs will have more instances of
productive conflict and fewer instances of destructive
conflict when their members and leaders possess good
emotion management skills.
Methodology
The purpose of the study is to examine the leader and
member response to task and emotional conflict in
CHWs. The sample consists of culturally diverse
workgroups that comprised of a leader and between
five to ten members. The workgroups were selected
following these criteria: members of each of the groups
were racially or ethnically different, individuals within
each group acted as a group, tasks were interdependent,
members identified themselves as a workgroup, and
groups were recognised as being interdependent by
others (e.g. customers). Altogether more than fifty
participants were involved. A multi-method qualitative
study was undertaken to explore some of the issues
raised in the foregoing review. This approach (though
may not be easy to generalise) enables a much deeper
understanding of the delicate and emotional nature of
conflict processes in the workgroups. Participant
observation for one group was undertaken for six
months. Additionally, group meetings with a total of
six culturally diverse workgroups from two large
Australian organizations were observed and recorded
over a period of twelve weeks to gather data about the
types, intensity, frequencies and amount of conflict in
these workgroups. Interviews ranged from 1-4 hours.
Follow-up structured interviews were also conducted
and recorded individually with all group leaders and at
least 50% of the members in each of the participating
workgroups in order to clarify and validate informants
prior comments and to enable a check of the accuracy
of the researchers interpretation of transcripts.
Transcripts
were
analysed
using
systematic
interpretative techniques, namely linguistic text
analysis, content ratings, and content analysis, to
examine the types, intensity, frequency, and amount of
conflict exhibited in these groups. Following Jehns
(1997) conflict analysis procedures, the applicability of
the types of conflict experienced in workgroups in
general to the types of conflict experienced in CHWs
was assessed. An independent analysis was also

conducted to determine the types, frequencies,
and amount of conflict present in the groups. In
each unit, a number of members independently
identified and reported on the same conflicts
thereby providing a cross check across
informants, which increases the reliability of the
reports of conflict (Taylor & Bogdan, 1984).
Results
The data were analysed using systematic
interpretative techniques (i.e., content coding,
content analysis, linguistic text analysis; cf. Jehn,
1997). The results of this systematic analysis are
presented below.
Triggers of Conflict
Analysis of the data revealed that the triggers of
conflict in CHWs are often related to cultural
differences such as values and beliefs. Majority of
interviewees reported that 50% of the conflict in
CHWs is triggered by cultural differences.
Respondents indicated that cultural differences
underpinned member differences in work
orientations and views of how individuals should
interact with one another. For example, a
respondent from the B4 group stated, There were
a lot of differences because of values. I would
probably put differences because of values at
80%, yeah, 80%. Another informant said, I
think the biggest problem was due to values,
probably the majority, it would be over 50%.
Yeah
Work orientation and styles as a trigger of
conflict
Another trigger of conflict is difference in work
orientation and style. An interviewee from B4
referred to work orientation as a trigger of conflict
when she referred to a conflict with another staff
and said, She had difficulty with my work style
and. yeah, the role that I take as leader in
brainstorming sessions and she would often sit
back and when I asked (Name) what do you
think? And she would not offer anything
generally. And she would say that when I said
that to her I put her under too much pressure.
So wanting to pick her brain was like I was
putting her under too much pressure, so her work
style is quite different and this caused a lot of
problems
Language as a trigger of conflict
Most of the informants said that language plays
some part in conflict in diverse work teams. The
leader from B3 put it to the fact that speakers of
English as a second language use English
differently, which leads to misunderstandings.
The group leader from LG1 identified language as
a trigger of conflict when she said, I suppose behind

each word we think a whole lot of different things.
Although in our group English is our first language
even though we come from different cultural settings,
we perceive different things around words, so it is how
we
understand
them
that
generates
some
problemsthe way the language is used generally,
should be of concerna culturally appropriate
language should be used.
Poor skills as a trigger of conflict
About 70% of the informants talked about poor skills
as a trigger of conflict. An Informant from B4 said,
she had had some experience, but she hadnt the
broadness of experience in skills that we have had in
that area. Another informant from LG1 said about
the team leader I did initially feel that she had enough
experience to be in that position at that time. But
anytime we had to work together there were always
issues, I felt I was always teaching and I dont like that.
When youre working with people I like to be able to
be, if I am lower than them, I like to feel that I am
grabbing stuff from them. In here I dont. I feel I am
teaching (the leader) all the time. I am continuingly
giving and (the leader) doesnt give that back I feel
like a bit of a ragand that becomes a problem.
Space as a trigger of conflict
When asked to describe her workplace, an informant
from LG1 responded this way, My work space is what
I created. I have a flag (minority ethnicity flag). I
brought in my own furniture with my ethnicity artwork
on it my role is counselling employees from my
(ethnic group).My space, because of the things I
put in there, was saying welcome to staff of my
ethnicity but was saying something opposite to the
mainstream staff. The mainstream staff were hesitant
to come in here. An informant from B3 referring to
the effect of space on conflict said, it may have an
impact on the disagreements in that I wouldnt have
been exposed to Ms moods. Even the lack of space
to keep resources intact created conflict as reported by
an informant from B4 who said, we had resources and
we didnt have any special place for our resources
this created problems. We argue, where is this,
where is that, oh its here, I dont know where it is, you
know, and we sometimes wouldnt talk and this
made for a lot of speculations and problems
Interaction between task and interpersonal and space
related conflict
In addition to identifying space-related conflict, the
data revealed an interaction between task, emotional
and space-related conflict at work. An informant from
LG1 reported, There are some things related to tasks.
While they are personal, they do spill over into the task
and especially into group dynamics. When further
asked whether or not the reverse may happen, she
responded in this way, Its a good question. I think
we all do work with tasks. But in the cultural
perspective, the interpersonal is most important.

The tasks will automatically run I believe, and
Ive worked with indigenous areas and Ive then
worked in the mainstream areas and my
experience has always shown that with
indigenous areas, we look after the interpersonal
first. We say our hellosInterpersonal issues are
more important.
But when I work in the
mainstream areas, task oriented issues are more
important. An informant from B3 said, I guess
perhaps Im the sort of person, who in some way
feels responsible for the mood of a place, so that
if people are sad or cranky, perhaps I take on
some responsibility to lighten that yeah, with
my own space I could probably cut myself off and
not be bothered by it
Conflict characteristics
The conflict literature indicates that conflict can
be classified into two types, task and emotional
(also
known
as
relationship
conflict).
Furthermore, conflict varies along the dimensions
of
intensity,
frequency,
and
duration.
Characteristics of conflict were examined in the
present study and are reported next.
Conflict types
Analysis of the data revealed that the conflict
types in culturally heterogeneous workgroups,
with the exception of the space-related conflict
uncovered in the present research, can be
characterised by the task-related and relationshiprelated problems reported in the general literature
on conflict in groups (see Jehn, 1997, 1995). For
example, an informant from LG1 in response to
the question regarding the kinds of problems
encountered daily at work said, we have had a
steady range of people here that have created a lot
of difficulty, but I think theres a lot of difficulty
just in cultural diversity. There are things that I
experience as a black lady here in the organisation
that are not always understood and also, I think at
times you react in different ways under different
circumstances that people think, gee, thats odd,
but had they been in my shoes, would have
probably thought oh gee I would have been even
more curious than that. If I was to categorise the
problems, my frustration here would be more
personal, the lack of understanding of issues and
people, it is really just diverse people skills. Not
understanding that people come from different
backgrounds and people just talking out of their
narrow experiences, they just dont realise that
they are insulting you The group leader from
LG1 talking about problems in the workgroup
said, there have been real, yeah, quite a lot of
interpersonal issues going onso there was a
reasonable amount of conflict and I certainly felt
um, ..out in the open as being criticised.
Another informant from B4 said, difficulties here
64
are interpersonal and task, and they do go together.

Conflict as an episode or an on-going event
Informants distinguished between episodic and ongoing conflict. The majority said that conflict in these
teams was usually not episodic but rather an on-going
event where, according to an informant from B4, the
partial resolution would have lots of little ups and
downs and then a big oneprobably coming again
from the little ones.
Conflict intensity
All of the informants reported that conflict in culturally
diverse workgroups could be very intense.
An
interviewee from B4 said very intense. Another
informant from the same group referring to the same
conflict said, it became extremely intense we were
upset and it became extremely intense after thatthere
were just two camps and no one was talking to each
other.
Conflict frequencies
The frequency of conflict in culturally diverse work
groups is high.
The informants described the
frequency of conflict as an everyday occurrence. For
example, an interviewee from B4 said, quite often, ..I
would say everyday. Another informant from the
same group referring to the same conflict said,
initially it would be less common, it may happen once
every couple of weeks. As time went by, it became
very regular, sometimes to the point of almost every
day.
Conflict duration
Conflict in culturally diverse work teams can be
prolonged.
The majority of informants stated
categorically that conflict lasted from 4- 9 months.
Data revealed that many of the conflicts never resolve.
Resolution for 95% of the conflict events referred to by
the interviewees in this study involved the turnover of
one of the parties in the conflict. Responding to the
question How long did the disagreement or difficulty
take to be resolved, an interviewee from B4 said six
months. Also from the LG1 group, an informant said,
she had a distrust for me for a good 6-9 months at
least and sometimes, from time to time, things still crop
up in that area
Outcomes of Conflict
Conflict was associated with a number of behavioural,
emotional, physical and social outcomes. For example,
an informant from LG1 reported, It can be all
consuming at times, it can result in stress but it can also
result in absenteeism, being physically sick or not
participating. It can result in misunderstanding in work
tasks, work competency you know, the whole work.
You can be competing in things but your energies and
all that are taken up on other issues.
All the interviewees agreed that there are

emotional outcomes for the conflict in culturally
diverse work groups. Informants commonly
referred to resentment, anger, bitterness,
and frustration. An informant from LG1 said,
if this happens on a regular basis, which it does,
about two or three times a day, Im cantankerous
by the end of the afternoon, you re just wanting
to swear all the time.
Negative outcomes of conflict
Analysis of data further revealed negative and
positive outcomes of conflict in CHWs.
The
majority of informants agreed that other outcomes
of conflict in CHWs are poor cohesion,
absenteeism, sick leave, and turnover of
dissimilar staff or one of the parties in the
conflict, which in turn negatively affects the
productivity of the group. For example, a
minority-member from LG1 said, it would have
been very difficult to stay if I had not got support,
I think I would be resigning and trying to get
another career. A lot of (mentions her ethnicity)
have different career paths. They go from here to
there, they are not always getting to the top cause
they are changing sideways, just to get away from
certain people or try to find where there niche is.
Turnover was reported to be a direct consequence
of the conflict in the group. In all cases of the
reported conflict event, people turned over. For
example, a leader from LG1 indicated that two to
three staff members left because of conflict. One
left because swearing offended him so
muchhe never ever got over that and he ended
up leaving so he did not finish, he did not
complete his training. Poor cohesion was also
mentioned to be a direct consequence of conflict.
We probably went our different ways and not
coming socially together as a group because
nobody wanted to come together as a groupwe
were not cohesive...we were operating quite
separately.
Positive outcomes of conflict
Analysis of the data also indicated some positive
outcomes of conflict. For example, an informant
from LG1 said it has a positive influence on her
in that I decided I would not let this overcome
me and I had to learn from it so for me perhaps
Id been a victim too much of my life. Im not
going to be any more, so for me it was moving
from being personally devastated to how do we
make this work. Another informant from LG1
said, I drew a lot of strength from it. I learned
how to communicatemy communication
repertoire has broadened. It does every time you
have something like that and you reflect back on
it, you can actually see how you can do things
better.
Emotional outcomes of conflict

Conflict Resolution
The analyses revealed that conflict in culturally
heterogeneous workgroups never really resolves and
that it takes a very long time, 5-9 months, for a conflict
to settle. When asked if the conflict was completely
resolved, an informant from LG1 said, No, no, I dont
see them coming to an end. An explanation for this
provided by an informant from B4 was, certainly, you
do feel like meat in the sandwich when you are trying
to keep peace.
Group Members Responses to Task and Emotional
Conflict
Behavioural response to conflict
Behavioural responses of group-members to conflict
include not talking to each other, no eye contact
between parties that are involved in the conflict, not
saying hello to each other, a thick air in the room,
an argument, and gossip. An informant from B4
said, she walks in without saying hello to
anybodyno, you dont say hello to each otherwe
argue about who used the resources lastwhere is it,
we could not see each other eye to eye
Emotional response to conflict
A number of emotional responses were reported by
members, and most frequently mentioned were verbal
aggression and crying. For example, an informant
from B4 reporting about a disagreement among group
members said, we could hear their voices suggesting
raised voices. Another informant from the same group
talking about the same conflict said, The staff member
and her husband came around to my housethe
husband of the staff tried to tell me how to run the unit
and abused me on the phone. Other examples of
verbal aggression given by informants were yelling,
screaming, and swearing.
Although informants
commonly mentioned verbal aggression, tears were
reported as the being the most frequently sighted
emotional response to conflict.
Leader (Manager) response to conflict
Avoidance was identified as the most commonly used
strategy used by leaders to manage conflict. For
example, an informant from LCG1 said, they (the
team leader and branch manager) say I will deal with it.
Ive actually brought up two issuesone was the
swearing one, and another issue with another lady that
seemed to be on-going. So I brought both of those to
my branch manager and the branch manager said I will
deal with these and neither was fed back to me, I never
heard anything. In the same group and referring to the
same issues, the group leader said, I mentioned the
problem to (the branch manager) once. When asked
what the branch manager did to manage the conflict,
she responded, Not a whole lot, I suppose he would
counsel me but he would just say, yes, ok.
The analysis revealed that leaders do not know

how to deal with the emotions that arise from
conflict and that most of the time they use an
avoidance strategy to deal with conflict and its
resultant emotions. For example, when asked
how do you deal with your emotions or was there
anybody who managed emotions produced by the
conflict, an informant from LG1 said, No,
emotions are the hardest thing that Ive found in
this team to deal with. I personally come from a
background where emotions are very much part
and parcel of life, because you know youve got
to fight the fight but in an organisation like this,
I find that as soon as somebody shows emotion,
management does not know how to deal with it
and it is frowned upon. It is almost like that is not
professional and its even sometimes said that its
a womens thing. Or people have to stereotype
things to deal with certain things, but I think we
have got to deal with that because sometimes it is
highly
emotive,
especially
in
cultural
diversitywe got to deal with people who are
upset. One informant from LG1 said that rather
than deal with the emotion, leaders become
patronising. When asked to elaborate on what
patronising means, the informant said, they say,
we need to talk, we need to talk nowI think
patronising is horrible, it just becomes a blockade
and they will stand there and be professionalI
think if weve got an issue like this we should
give people privacy, we take them one-on-one, we
dont do group talk. Management wants you to
get a group thing happening, then its a big
shame, you know and its a shame when
somebody is really made to communicate with
emotion in front of a crowd and that s how they
deal with it I think one-on- one would be
better. Corroborating this informant the group
leader said, Ive actually brought two cases to my
manager, and he has not done whole lot, I
suppose he would counsel me but he would just
say, yes, ok.
Also, managers and leaders respond to conflict by
the use of consulting firms, and creation of rules
and guidelines for conflict management. For
example, an informant from B4 said, we set up
guidelines, like we actually put them up on the
walls, downstairs in our office. We had two, two
conflict management workshops from some
people outside our organisations and yet these
methods did not work.
Analysis of data also revealed that managers
facilitate parties involved in a conflict to turn
over. The leader of B4 said The most positive
thing that happened was that she left. I wrote a
glowing reference for her to get another job.
Leader (Manager) response to emotions of conflict

66
Leader (Manager) responses perceived as necessary

for effective management of diverse workgroups
When asked a broad question on what they would see
as the appropriate leader response to conflict in diverse
workgroups, an informant from LG1 said, I think the
response of the leader in managing diversity needs to
be firstly, recognising diversity and then being able to
work together with diversity in understanding that
diversity is for individuals.
so it is about
recognising, encouraging and facilitating that diversity
to be expressed openly. It is also knowing all those
things and I guess managing conflict where there is a
conflict An informant from LG1 said, often times
mangers are chosen because of their expertise rather
than their human resource abilities. they should take
time to manage people in a respectful way and in a way
that makes people feel included in the organization and
valuedthey have got to be flexible in their
management style and strategies, they need to show
that they can demonstrate strategies for wide scenarios
that happen in culturally diverse teams they need to
be able to have a repertoire of diverse ways they can
actually deal with different things and get rid of
stereotyping we need managers who just value their
staff.They should feel free to be able to go out and
seek help. Another informant from B4 said, the
manager should be very understanding and equal to
everybody...what I am saying is respect, respect
personal beliefs, valuesmeet the needs of her
employees, have respect of their employees needs,
treat everybody equally for what they are and recognise
their experiences, expertise.. Other comments
made by informants referred to the need for leaders to
be open, to be tolerant, to possess people skills, and to
have a taste of other cultures by travelling abroad,
etc.
Discussion
In this paper, we proposed that the emotional climate
and group norms of the workgroup will moderate the
type, frequency and duration of emotional conflict in
CHWs. We also argued that the course of conflict and
the extent to which it is productive or destructive
depends upon how group members and leaders respond
to and manage task and emotional conflict as well as
the conflict-related emotions. The qualitative data from
this study provided powerful evidence for the
prevalence of conflict in CHWs. Findings also show
that conflict duration is long and the occurrence is
frequent. This may not be surprising given that the
major leader response to conflict is avoidance.
Avoidance suggests that either the leader or the group
members may have ignored group norms and
emotional climate. This may explain high frequency
and chronic nature of conflict in diverse workgroups.
In addition, it may indicate that leader does not know
how to deal with conflict and its related emotions.
Given that innovation, creativity, poor cohesion and
stress may be hatched in diverse workgroups for the
same reasons (differing beliefs, values) it is critical for
group members and leader of CHWs in particular

to respond to conflict and its emotions in a way
that facilitates more productive than destructive
conflict. Where leader uses avoidance, as a major
strategy for conflict resolution, there is a high
probability that more destructive conflict will be
generated, which may in turn result in poor
workgroup outcomes. Training in conflict and
emotion management skills for this category of
leaders will ensure that they know how to
generate more productive and minimize
destructive conflict. Also, such training for
leaders in particular will mean that they can
provide a positive modelling effect for the group
members in their response to conflict and its
emotions and thus improve positive workgroup
outcomes.
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Graduate School of Management
The University of Queensland
St.Lucia QLD 4072
Email: r.ayoko@gsm.uq.edu.au
Phone: + 61 7 3381 1082
68
Transcending boundaries: Issues of self and identity for Chinese

students
Angela Back
School of Management, Griffith University, Australia
Abstract
This paper investigates issues of self and identity of
Chinese students using indigenous concepts drawn
from the work of mainly Hong Kong and Taiwanese
psychologists. Research was initiated because identity
appeared to be developing in a different way for
Chinese students compared with their Anglo-Australian
counterparts. It involved a case study of the Chinese
students in an Australian high school during their
senior years, and subsequent interviews of 15 of the
students while at university. This paper is a literature
review which was undertaken in support of issues
emerging from the case study of the students as they
coped with adjustment to a different cultural and
educational experience. Ideas in the literature review
informed the subsequent in-depth interviews and
provided a framework for understanding identity
development in a cross-cultural setting. It appears
that for Chinese young people, identity is not a simple
matter of separation from family , but one of
interdependence and of resolving the conflict of an
Inner-Outer Split , or the demands of Big Me and Little
Me. These concepts provide insights into decisionmaking, achievement and adjustment not only for
young people, but also for adults who, because of their
cultural background, transcend the boundaries of the
western individualistic model of identity development.
This paper therefore offers useful insights
for
managers of work teams in international settings.
Keywords
Identity; Reciprocity; Inner-Outer Split; Big Me, Little
Me
Introduction
Educationalists and psychologists agree that
developmental issues for young people involve
interaction between the individual and the context, the
person and the system they grow up in (Noller and
Callan 1991; Patton and McMahon, 1997). Family,
peer group and school contribute enormously to this
framework within which a young person comes to
maturity.
During the last decade particularly,
Australian schools have been the settings of the diverse
and valuable contributions of different ethnic groups.
Anglo-Australian realities have merged and blended. It
was in one such high school, where forty different non
English speaking background groups are

represented, that I, as counsellor for 10 years,
began to question some of the boundaries which
appear to restrict, and yet at the same time,
empower, certain students. In working through
some of these boundaries to my understanding, I
was led on an academic journey.
As a doctorate student rather than as a counsellor,
I began to ask whether the concepts of self and
identity were the same for Chinese students. As a
counsellor, I was used to hearing and seeing
students struggling to define their identity,
playing around with different images, trying on
different roles. But there came a moment in my
dealings with Chinese students when I realised
there was a gap: What I was NOT hearing was
more interesting than what I was hearing. There
seemed at times to be an unusual resistance to
some ideas that are usually common coinage.
There was a less confident assertion of
individuality, not such a sense of the inalienable
right to a fulfilled life.
At the time these questions were arising,
academic research was available
from Hong
Kong and Taiwan with a more indigenous
Chinese approach, one that was in part bound up
with the belief systems of the socio-cultural
milieu of ethnic Chinese (Blowers, 1996, p.2).
An attempt was being made to make explicit
what is implicit in the minds of ordinary Chinese
folk (Blowers, 1996, p.2). It seemed that these
emic approaches were providing much needed
insights into etic issues of self and identity for
Chinese students. While collectivist hierarchical
qualities are not confined to Chinese culture, the
ways in which these are worked out in every day
life provide valuable insights for counsellors,
educationalists
and
those
involved
in
international programmes.
Identity
Newman and Murray (1983) see identity as a
blueprint for future commitments and life
choices, as a set of beliefs and goals about
ones relationship(s) .., ones roles as worker,
citizen, and religious believer, and ones
aspirations for achievement (p.294). In Western

thinking, developmental theory derives from the
writings of Freud and Piaget , and has been
expounded convincingly by Erikson (1968). As Noller
and Callan (1991) point out, Eriksons eight stages of
development provide a useful theoretical basis for
concerns about identity and autonomy in adolescence
(p.9). Separation from parents is seen as one of the
main developmental tasks of adolescence. Noller and
Callan see gaining economic independence and
developing a realistic, stable, positive identity (p.4)
as two other important developmental tasks.
However, my investigations found that more complex
interrelational issues were involved. Research involved
a case study of the Chinese students in Years 11 and
12 in an Australian high school , 15 of whom were
interviewed three years later in university.
Identity for Chinese students

Chinese students in Australia are a diverse group.
They include Australian-born Chinese in touch with
their Chinese heritage through their parents,
longstanding or more recent immigrants from Taiwan,
mainland China, Hong Kong, Singapore or Malaysia
(all with diverse cultural patterns) and fee-paying
students from a variety of Chinese-speaking
backgrounds. However, as Redding says The sense of
Chineseness, based as it is on the immense weight of
Chinese civilization, seems to diminish remarkably
little over distance or with the passage of time (1990,
p.34).
In starting to discuss the individual in Chinese society,
it seems strange to begin not with the person or with
society but with the family. And yet the general
consensus of writers and informants is that that is
where one must start. If one scratches deep enough,
one always finds the family mind at work (Lin, 1939,
p. 167). The main issues relate to two words - family
and networks, and these are embedded in and
reinforced by Confucianism, bearing in mind that
Confucianism is that most apposite single-word label
for the values which govern most of the social
behaviour of the Overseas Chinese, (the hua qiao or
emigrants) and which therefore makes a convenient
label for a complex and changing set of values
(Redding, 1990, p.2).
Because family is central to self-identity, as
Goodwin and Tang (1996) point out, family and
individual behaviour (are) difficult to separate(p.303).
Bond and Hwang maintain that to understand Chinese
social behaviour one must understand this cultural
concern for harmony-within-hierarchy (1986, p.
213).The most helpful way to investigate the psychosocial functioning of the individual seems to be to
conceptualise each individual as enclosed by a series of
concentric circles.
The Chinese have such strong
obligations to their nuclear and extended families

that they may be thought to have very little energy
left over for the wider world and indeed, insider
and outsider status is highly significant. If one is
not jia ren (a family member whom one is obliged
to listen to and possibly obey) or shou ren
(cooked, a relative outside the inner family, or a
trusted neighbour, classmate or colleague) then
one is a stranger or outsider, sheng ren, or raw
(Yang, cited in Goodwin and Tang, 1996) So it
behoves the individual to behave in a way which
will bring honour to the family, and with due
consideration of the rules of bao or reciprocity.
These rules relate to the obligations between
blood relatives. Other more general rules like
guanxi (relationship) relate to the wider circles
and cover the obligatory, usually unspoken,
favours required to maintain relationships in good
order. Another Chinese term, renqing, implies the
entire network of favours and obligations
surrounding Chinese relationships (Sun Long-ji,
quoted in Barme and Minford, 1989, p.32). Yet
another force for social cohesian is li or the rules
of propriety or good manners.
Bond and Hwang speak of a fundamental
Confucian assumption that man (sic) exists in
relationship to others (1986, p.215). Or, as
David Y.F. Ho says, the unit of analysis is not
the individual, but individual-in-relations (Ho,
1991, p.81).
He uses the term
relational
orientation to explain the basis of Asian social
psychology. Yang Kuo-shu uses the term social
orientation (Yang 1986, 1996). Sing Lau prefers
to talk about being an individual in a collectivist
way. (1992). He argues that Chinese have
individualistic wishes, and collectivism is a means
to fulfil those wishes.. (p.366).
They are
therefore individualistic and collectivistic.
Case study
In order to investigate more closely the issues of
self and identity, a case study was undertaken.
The participants were 60 Year 11 and 12 students
of Chinese background in an Australian high
school.
The focus was on their coping and
adjustment in a western educational setting.
Throughout the year, it became apparent that
students were concerned about achievement, even
if this did not translate into academic action,
were sometimes unable to talk openly about
failure, and showed restraint when discussing
inter-personal problems. They were concerned
about reputation and, more intensely, about how
this would reflect on families. Thus they were
likely to show Socially Oriented Achievement
Motivation as well as Individual Oriented
Achievement Motivation (Yu, 1996). They used
70
friends to negotiate for themselves and they activated

networks. Confrontation was unusual. In comparison
to Anglo-Australians, more Chinese students seemed
tentative about their rights. This is not to say that
some of them did not reject the process of schooling,
and the disciplines of attendance and study. Some
tended to use passive aggression and avoidance rather
than evoking freedom as Anglo-Australians would. It
also became apparent that the Chinese students were
highly supportive of each other and tended to create
little families for each other. As May, a Year 12
student said: Now my friends seem like my family.
These issues gave a clue to the way in which self was
defined for Chinese students. It became apparent that
the need to keep up appearances was more than a
matter of self-esteem, or even of prestige (mianzi).
More significantly, it was a matter of personal
integrity, or face, that is having the confidence of
society in ones moral character (lian) (Hu, 1956).
(Mianzi , though strictly defined, as only prestige, is
still the more general term used for face.) Thus loss of
face makes it impossible.. to function properly within
the community (p.447) and constitutes a real dread
affecting the nervous system of (an individual) more
strongly than a physical fear (p.452). For students,
achievement defines not only oneself but ones family.
Bond and Hwang (1986) see face work in Chinese
society as mainly a kind of frontstage behaviour
which an individual deliberately performs before
outsiders (p.245).
More personal and revealing
behaviour must not become public knowledge.
In considering the depth of feeling associated with
face, it was important to trace the source of this need to
perform well, or to be seen to perform well. Again, the
students gave clues to those moral imperatives or
obligations which drove behaviour, and which were
traced back to family. They were revealing xiao (filial
piety) or the need to maintain the honour of the
family. Though familial piety, in its more historic,
Confucian sense is fading, the concept remains and is
constantly being redefined (Yang, 1988). Abbotts
comment in 1970 about Hong Kong families still
seems relevant: Respect is still an absolute, while
obedience is subject to negotiation(p.297). Ho (1994)
maintains that one must not fail as a filial son or
daughter, even if one were to fail in every other aspect
of life (p.361).
Such a comment may seem farfetched, but counsellors may well find that students
they work with are either striving to be filial,
concerned to be seen to be filial, or trying to overcome
the shame of failure to be filial. However, there appears
to be a positive and a negative side to xiao. Some find
it a burden, others a source of focus and stability.
One of the ways in which the demands of family are
softened appears to be in that particularly Chinese way
in which emotional links are established. Again a clue
was provided in the behaviour of the students. They
tended to establish themselves in pseudo families.

As well as being socially and academically
supportive of each other, they provided the
emotional support, warmth and collaboration
which had been modelled in families. The image
of nurture, revealed in the word yang with its
agricultural and biological overtones, is
reinforced by the words of Fei Xiao-tong, the
famous sociologist: Men..are like plants that
take their nourishment from the land (1953,
p.129).
In the case of the students, their
nourishment was the give and take of emotional
and practical support, learned within the
community of the family.
One of the most puzzling questions which
emerged was what caused the industry which the
most industrious students displayed? It became
apparent that behind the general self-control was
the shadow of a particular type of socialisation,
focussed by guan. Wu (1996) defines guan as
governing,
monitoring,
interfering,
and
controlling (p.13). It can mean to care for, or
bothering about. He went so far as to say: I
propose to stress the concept of guan as the
characteristic
feature
of
Chinese
socialisation(p.14).
It is this feature of
socialisation that Chao (1996; Chao and Sue,
1996) has analysed, in her studies on Chinese
Americans parental influence on their childrens
school success. While studies investigating a
Chinese global parenting style have found this to
be restrictive or controlling (Chiu, 1987; Kriger
and Kroes,1972), it is still puzzling why such an
authoritarian style should achieve remarkably
hard-working and successful students. Some
researchers see only unhelpful pressure coming
from authoritarian parenting (Baumrind, 1971;
Dornbusch, Ritter, Leiderman, Roberts and
Fraleigh, 1987; Steinberg, Dornbusch and Brown,
1992). Rather than success coming from a
healthy self-esteem (a western view) Chao sees
that for Chinese students success is a matter of
parental care and involvement which are
synonymous with firm control and governance of
the child. Thus both guan or control and yang or
nurture combine to create this optimal
environment.
While guan refers to this wrapping up in a
family parcel, that is, an activity, there is still a
sense in which one may translate it into the results
of this. The student is not only controlled but able
to exercise control. From displaying initially an
other-regulated life (Yang, 1996), some students
go on to display a self- regulated life. Guan is
seen by implication in the effort certain students
put forth.
Thus, from the need to keep up appearances derived

from behind-the-scenes obligations and moral
imperatives arose the need to build emotional links, in
pseudo families, and the effort to achieve. As with a
tangled ball of knitting wool, with lots of hanging
loops, one finds that the loops were interconnected, so
in the counselling situation, it appeared that these
themes were interconnected and occurred in different
guises but in most contexts. The issues of face and
family, nurture and control were powerful themes
worked out in student dynamics.
Marionettes or spiders without webs

In retrospect, it appeared that these students were not
simply operating on both ends of the continuum, as
individuals and as members of a familial group
(Hofstede, 1980). Rather, they were operating in an
entwined way (Yang, 1992). They moved from one
position to another in a situation-specific way. Their
range of responses appeared to be diverse. They
could be both independent and interdependent, socially
adventurous and conforming.
They could use
deception in order to avoid the pressure of obligation,
and also be tenacious and responsible.
While
temperament no doubt played a part,
the issues of
socialization and family interaction we have already
considered provide important insights. It appeared that
successful students utilised cultural values. It would
seem that Chinese family interactions have in some
way provided that cohesive sense of community that is
now being found as so important for the well-being and
efficacy of students (Goodenow and Grady, 1997).
In reflecting upon the students in the case study, Lu
Xuns comments about Chinese children (in his essay
Shanghai Children, 1933, 1959, p.334) came to mind.
Lu Xun saw them as spiders without webs (children
without control) or as marionettes (dependent upon
others for direction). His metaphors are more telling
than his sociology, in that he
conceives of life in
network terms. While deploring the rigidity of the
upbringing of good children, he is horrified by the
ineffectiveness of those without webs.
Writing a generation later, Saari, an American (1990)
takes up these metaphors, but enlarges upon them.
While acknowledging that Chinese socialization is
binding, he explains that Chinese children are like
those anywhere in the world. They are intent upon
developing a life of their own, within the psychosocial
framework of their families. He goes on to describe
the Inner-Outer Split of those who struggle for
private autonomy within a perplexing network of edicts
- the bindings (p.230) of face and family, nurture
and control . They were students whose real self
inside split off from the social self that others saw
(p.236). One is led to ask: Is there no middle ground?
Big Me and Little Me: implications

for identity and control.
As we have seen, western developmental theory
does not seem to account for all the issues which
preoccupy for Chinese young people as they
move through the developmental stages. It
appears that the process is there, but the focus and
sometimes the intensity is different and there are
other dynamics at work. The collectivist context
in which they develop is different. Chinese
students are both individualistic and collectivistic
(Lau, 1992)
As we have seen, the family is central to selfidentity (Goodwin and Tang, 1996, p.303).
Because Chinese socialisation practices are more
likely to develop emotional restraint and group
harmony (Bond and Wang, 1983), self expression
is not of prime importance. Historically, the self
closely associated with family and society is
known as da wo or the greater self. The more
individual self is known as xiao wo (the smaller
self) (Gabrenya and Hwang, 1996; Lau, 1996).
Colloquially, these are known as Big Me and
Little Me. Sacrifice for the good of the family or
the group is often implicit.
Yet Dien (1983) argues that successful self
development is measured by the ability to
maintain interdependence between the Little Me
and the Big Me, rather than by a process of
gradual separation and individuation, as is often
conceptualised
in
Western
psychological
theories (p. 284).
Chinese young people
therefore are often at odds with Western
developmental tasks. Emancipation is hardly the
case for Chinese young people who generally find
themselves securely bound up with the family by
the time of young adulthood. In Chinese theories
of socialization, the child, especially the son, is
part of the family forever (Bond and Hwang,
1986; Ho, 1996).
Results obtained during the case study would
seem to imply that Chinese young people are
generally more attached than Anglo-Australians
during developmental stages. They are shaped by
the demands of mianzi, xiao, guan and yang. All
of the students in their senior years were
searching for an identity, grappling with
accommodations and compromises. Some were
more concerned with harmony than others. One
asks with Saari: Does external compliance imply
lack of ego autonomy and a self-doubting
personality? (1982, p. 42)?
While clearly
reflecting the need for networks or webs, these
students were dealing with the demands of face
and family, and with their own personal
imperatives. They, like the students in Saaris
72
study , were involved in a continuing exploration of

boundaries for self-expression in feelings, thoughts,
speech and deeds (1992, p. 42). For Chinese young
people, particularly the boys, it is a very entwined
model.
One wonders how much the effeminate
disposition mentioned by Yang (1986) remains and
how much the western competitive and separating
tendency takes over? It does appear that despite trends
towards modernisation, Chinese boys are closer in
some ways to western girls than to western boys. It is
these issues which are being investigated as a second
longitudinal phase of research in in-depth interviews.
Conclusion
As we have seen, for some Chinese students the
preservation
of relationships rather than the
furtherance of personal goals becomes of prime
importance. To speak with ones own voice is not as
important as to maintain harmony and to fulfil ones
obligations. In this way, identity formation is not just
a matter of working through psycho-social crises
(Erikson, 1968) but also of learning roles, fulfilling
obligations, and developing relational networks.
The issue to investigate is not so much how Chinese
students move towards Identity Achievement
(Marcia, 1980) but rather how Chinese students cope
with the Inner-Outer Split - how they deal with the
pressures of interdependence. They will be integrated
men and women when they resolve this tension in such
a way as to feel comfortable with themselves. It is this
integration which is explored in the stories which
emerge from interviews of these students a few years
later. As McAdams says ..Identity is a life story which
individuals begin constructing, consciously or
unconsciously, in late adolescence.... Like stories,
identities may assume a good form - a narrative
coherence and consistency - or they may be ill formed
(1985, pp. 57, 58). The results of this study have
important implications for those who work with
Chinese young people and are concerned with their
decision making, achievement and adjustment. Just as
Chinese students must operate on a number of levels,
so the counsellor or educationalist must recognise such
levels and respond appropriately. It may be important
to sift out which items on the agenda are negotiable
and which ones (for reasons of economics, family
cohesian or face) are not (Back, 1997) Moreover,
since personal autonomy is a strongly held value in
western culture, it may be necessary for the counsellor,
educationalist or manager to guard against imposing
the priorities of self for the priorities of family, thereby
failing to realise the more subtle ways in which some
young people achieve their individual goals (Leong,
1993).
Moreover, as the life stories continue, and students
become employees, the identities forged in late
adolescence become tested in adulthood. While the
boundaries for self-expression mentioned by Saari may
become less rigid for young adults, the pressures

to survive in the work place may appear as
greater hurdles. (One of the interviewees spoke
of these as ongoing exams) For sons especially,
trying to maintain face while forging a career path
can be a subtle balancing act.
As the literature on face and family, reciprocity
and networks, is not restricted only to adolescent
developmental
issues
but
has
ongoing
implications for Chinese of all ages, issues of
interdependence are therefore significant for
managers of cross-cultural
teams seeking to
understand their Chinese colleagues. They may
find that Chinese employees and colleagues use
cultural values to guide decision making, are
energised
by
both
Individual
Oriented
Achievement Motivation and Socially Oriented
Achievement Motivation, activate networks and
are able to operate in the entwined way described
by Yang. By transcending their boundaries to
become proficient in western settings, they are
demonstrating a flexibility which persons from
western cultures might well emulate as they
themselves seek to transcend some of the
limitations of their own mindsets.
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Angela Back
Email: aback@eis.net.au
Bully or advocate? Reflections on the lawyer-client relationship

Michelle Barkera and Michael Sheehanb
a
b
Abstract
In order to further understand the impact of
workplace bullying on individuals, the reported
experiences of victims of bullying have been the
focus of much research. Unfortunately, the
experience of taking legal action in response to
being bullied, has received little attention. Further
research is not only needed to identify what actions
are taken by victims, but to examine the nature of the
interaction between the legal professional and the
client. Therefore, the present study aims to examine
the experience of taking legal action, in relation to
the lawyer-client relationship. Eleven victims of
bullying volunteered to partake in the study. A list
of 12 questions that assessed participants overall
bullying experience was compiled by the
researchers. In relation to taking legal action,
participants were asked to describe what actions
they took and how they found that experience. One
participant chose to respond to the questions during
a face-to-face interview, four participants chose to
be interviewed over the phone, while six elected to
respond to the questions via email. The results
revealed that all participants considered or took
legal action. Of those two took legal action, five
participants experiences were positive. A positive
experience
entailed
receiving
support,
acknowledgement and understanding from the legal
professional.
In contrast, six participants
experience of taking legal action was negative. A
negative experience related to the legal professional
(1) being unsupportive and not acknowledging the
client or the situation (2) being ignorant (3) being
inexperienced and uneducated about workplace
bullying issues and (4) lacking professionalism. The
results of this study, indicate that both
clients/victims and legal professionals need to be
educated as to their role in the lawyer-client dyad
and their rights and responsibilities.
Keywords:
Workplace Bullying; lawyer-client relationship
Introduction
Research investigating the nature and consequences
of workplace bullying is receiving increasing
attention not only from researchers, but from

lawyers and those directly affected by workplace
bullying (Sheehan, 1999; Sheehan, Barker and
Rayner, 1999). In particular, during the last decade,
the majority of bullying research has focused on
rates of incidence. For example, studies conducted
in the UK and Scandinavia, have shown that many
employees from both public and private sector
organisations are frequently being subjected to
physical and verbal abuse from their colleagues
and/or supervisors (Adams, 1992; Leymann, 1990;
Randall, 1992, Wilson, 1991). The increasing
number of incidence studies provide empirical
evidence that bullying is widely experienced in
many workplaces across different cultures.
Following on from these findings, researchers have
investigated the negative consequences of workplace
bullying to both organisations and individuals.
Negative consequences addressed include high
sickness rates, low morale among workers, poor
company image and potential litigation (Adams,
1997; Randall, 1992; Rayner, 1998).
For
individuals, workplace bullying can result in both
physical and psychological decline such as
depression and increased stress and anxiety
(Einarsen, Matthiesen and Skogstad, 1998; Gemzoe,
Mikkelsen and Einarsen, 2000; OMoore, Seigne,
McGuire and Smith, 1998).
Until recently, most of the bullying literature has
focused on incidence rates and reported effects on
the victims of bullying. However, other aspects of
the bullying process, such as actions taken by
victims in response to being bullied, are now
becoming the focus of research in an attempt to
further understand the nature of workplace bullying.
For example, in an Irish study investigating the
effects and determinants of workplace bullying,
OMoore, Seigne, McGuire and Smith (1998)
interviewed 30 victims of workplace bullying. The
researchers inquired into what action participants
took to counter the bullying, and what was the
outcome of that action. The qualitative method
employed allowed the participants to relay their
experiences without time restrictions and with
minimal guidance in regards to the structure of their
responses.
In a second study employing a
quantitative method (i.e. survey), Rayner (1997)
76
conducted a more in depth investigation into actions

taken in response to being bullied by sampling both
bullied and non-bullied individuals and asking them,
what they would /did do if/when they were bullied?
The questions asked of the participants in the studies
mentioned above resulted in a list of options taken
by participants in response to being bullied. The
former study revealed a range of responses such as
contacting the Personnel Manager and/or union
representative, seeking help from a doctor or
counsellor and pursuing legal advice (OMoore et al,
1998). Although similar results were revealed, the
latter study, reported a wider range of options such
as confronting the bully, complaining to the bullys
boss and leaving the job (Rayner, 1997). The
discrepancy between the number of actions reported
in the two studies may be due to the differing nature
of the two methods employed. For example, in a
quantitative study, the researcher provides
participants with a list of options to be endorsed
whereas in a qualitative study, no list is provided
and the participants freely report the actions they
took . It is also important to note that the actions
taken by the majority of victims in both studies
resulted in dissatisfying and unsuccessful outcomes.
As reported above, immediate actions taken within
the organisation, such as contacting Personnel
Managers, are not always successful. Neidl (1996)
states that victims of bullying try many strategies to
improve their situations before withdrawing their
commitment or quitting their job. High rates of
departure from the workplace are often reported as a
means of escaping the situation. For example,
Rayner (1997) found that 27% of victims left their
jobs after being bullied. In addition, Edelmann and
Woodall (1997) reported 18.6% of victims left their
jobs while 23.3% took time off work because they
were unable to cope with the bullying. Finally,
McCarthy, Sheehan and Kearns (1995) reported that
34% of employees took time off work while others
took redundancies, early retirements or resigned in
response to being bullied.
When using the resources and support available to
them within the organisation is unsuccessful or
unsatisfactory, employees often pursue further steps
outside the organisation in an attempt to resolve the
issue(s), such as seeking legal assistance. Of the few
studies that have asked participants about what legal
action they took, none have examined the nature of
the interaction between the legal professional and
the victim of bullying and the legal advice given.
One explanation for this gap may be due to the fact
that legislation against bullying does not exist in
several countries (e.g. Australia and the UK) and,
therefore, reports of court cases are usually
highlighted as anecdotal evidence in the form of
newspaper reports. OMoore, Seigne, McGuire and
Smith (1998) found that only half of victims

interviewed sought legal advice.
Further
information regarding the nature of this advice
warrants investigation.
Two factors that may
attribute to the lack of legal action pursued by
victims of bullying are (1) the nature of the
interaction between victims and the legal
professional and (2) the level of support received
from the lawyer/barrister approached. Gorman
(1998) highlights the problem of inexperienced
lawyers dealing with victims of bullying. He
purports that many employees who have left their
organisation due to bullying, could have successfully
sued their workplace but were ill-advised. If this
statement is true, then the relationship between
lawyers and victims of bullying needs to be
investigated in the hope that research will shed more
light on why victims of bullying who initially seek
legal advice do not always pursue further legal
action.
Although the studies highlighted in this review
investigate actions taken by participants and the
outcomes achieved, the experiences of the
participant preceding the outcome still remains to be
explored. There is a need to investigate the
experiences of individuals who pursue legal advice
in order to begin to understand why some people
pursue action and others do not. For example, a
participant who seeks legal advice may decide not to
pursue legal action due to his or her negative
experience of taking legal action. This negative
experience may be attributed to the nature of the
interaction between the victim of bullying (i.e. the
client) and the lawyer (i.e. professional). For the
purpose of the study reported here, the experience of
taking legal action was, in part, the focus of the
investigation.
The success rate of pursuing legal action largely
depends on how competent the client, in this case
the victim of bullying, perceives the legal
professional to be and how well the client relates to
and interacts with the legal professional. As stated
above, the nature of the lawyer-client relationship
can be attributed to the client being further
traumatised. Consequently, examining the nature of
the relationship between the legal professional and
the client, is essential in order to ascertain the rights
and responsibilities of each party. It is important to
note that there is a vast amount of research and
literature addressing the client-professional
relationship particularly in relation to therapists and
lawyers (e.g. Coale, 1998; Gutheil, Jorgenson and
Sutherland, 1992; Hillary and Johnson, 1989;
Luepker, 1999; Peterson, 1992; Rinehart, 1991;
Sinnett and Thetford, 1975; Williams, 1996). This
research has investigated the nature of the clientprofessional
relationship
questioning
the
professionalism of people, such as lawyers and
therapists, in their interaction with individuals in less

powerful positions seeking help and advice.
In general, the literature pertaining to clientprofessional relationships highlights the rights and
responsibilities of each party and supports the notion
of empowering the client (Coale, 1998; Eiles,
1996; Gutheil, Jorgenson and Sutherland, 1992;
Hillary and Johnson, 1989). For example, Eiles
(1996) states that because the relationship between a
professional and client is often a dependent one, in
which the client depends on the professional for
their specialised knowledge and advice, many
problems can develop. For example, while clients
need to depend on the professional for his/her
expertise, the client also needs to maintain a level of
personal responsibility (Eiles, 1996).
As was mentioned earlier, due to the lack of
legislation pertaining to workplace bullying in many
countries, such as Australia, there is little empirical
evidence addressing clients experiences with
pursuing or taking legal action.
Investigating
peoples experience of taking legal action will shed
light on the relationship between the nature of the
lawyer-client interaction and the outcome of seeking
legal redress.
Methodology
Participants
Participants were selected from a database that had
been compiled by the researchers prior to the
commencement of the study.
This database
consisted of people who had reportedly been
subjected to workplace bullying Australia. The
names listed on the database were obtained via two
methods (1) people who had approached the
researchers in response to publicity regarding
previous workplace bullying research and (2) people
who approached Job Watch in Victoria seeking
support and advice after being bullied at work.
Sixteen individuals were contacted, informed of the
nature of the study and asked to participate. Eleven
of these individuals (4 men and 7 women)
consented.
The sampling method employed was purposive
sampling which takes into consideration the context
and purpose of the study and the availability of
resources (Patton, 1990). The final sample size,
although small, was deemed appropriate by the
researchers due to the sensitive nature of the topic of
workplace bullying.
Procedure
All participants were contacted and given the choice
of responding to a list of questions via one of four
methods presented to them. They included (1) a
face-to-face interview, (2) a phone interview, (3)

electronic mail or email, or (4) surface mail. Four
participants chose to respond to the questions during
a phone interview, one chose to respond during a
face-to-face interview, while six participants chose
to respond via email. In addition, all participants
were presented with a consent form outlining the
nature of the study and the rights of the participants,
that was signed and returned to the researchers.
Data gathering
A list of twelve questions pertaining to the
participants overall experience of being bullied in
the workplace was developed by the researchers.
The list consisted of ten open-ended questions and
two close-ended questions. For the purpose of this
paper, this discussion will focus on the questions
that addressed the legal action taken in response to
being bullied, and the experience of taking such
action. In particular, participants were asked (1) Did
you take or consider taking legal action? (2) How
did you find that experience? (3) What did you do?
and (4) What information would have helped you to
cope with taking legal action?
The face-to-face interview
One participant chose to respond to the list of
questions during a face-to-face interview. Prior to
the commencement of the interview, the participant
was given time to read the consent form, seek
clarification if necessary, and sign it. Consistent
with the procedure followed for the telephone
interviews, the interview procedure was then briefly
discussed with the participant. Other administrative
tasks were also conducted such as obtaining mailing
details, in order to post the transcript of the taped
interview to the participant. Finally, permission was
sought and received, for audiotaping the interview.
The interview was conducted at the participants
workplace. The office in which the interview took
place, was chosen by the participant as it was
discrete, secluded and quiet. The interview lasted
approximately one and three quarter hours.
Unfortunately, there was an unforeseen interruption
halfway through the interview resulting in a change
of venue.
The phone interviews
A brief outline of the interview procedure was
discussed with each participant prior to
commencement. The details of the consent form
were then outlined to the participants in order to
obtain verbal consent. The form was later sent to the
participant to be signed and returned to the
researcher. Finally, participants were asked whether
or not they objected to the interview being audiotaped. All participants gave their consent.
78
To maximise the sound quality of the audio-taped

interview, the researcher asked each participant to
chose a quiet area in which they would not be
disrupted. Four participants chose to be interviewed
in a quiet room in their family home. The phone
interviews and the face-to-face interview were semistructured so as to explore further issues that arose,
that may not have been covered by the questions
developed. The duration of each interviewed varied
from 45 minutes to 105 minutes. On average the
interviews lasted one hour.
Once all questions had been responded to, the
participants were given the opportunity to ask the
interviewer any questions and/or provide additional
information. Finally, arrangements were made to
send the transcript of the taped interview to each
participant for their comment and review.
E-mail responses
The majority of participants chose to respond to the
list of questions by e-mail. Two documents were
sent to each participant (1) the list of twelve
interview questions and (2) the informed consent
form. Responses were returned via email and the
signed consent forms were returned via surface mail.
Further comments by participants regarding their
overall bullying experience, accompanied their
emailed responses.
Data analysis
Once all of the interviews had been conducted, the
five audio tapes were sent away to be transcribed.
The five interview transcripts and the six email
responses were then analysed.
The transcripts and email responses were read and
interpreted through serious inspection (Dey, 1993).
This method helped to identify the key phrases and
statements in relation to the legal action taken by
participants and their experience of taking such
action.
Analysis of the interviews involved listening to the
tapes while reading the transcripts. This method
assisted with the clarification of comments and
statements made, by noting the non-verbals such as
tone of voice and pauses (King, 1994). In addition,
this process enabled the researcher to fill in the
words that the transcriber could not decipher.
During the entire analytical process, the transcripts
(including the e-mail responses) were re-read several
times.
Themes were identified by the key words and
phrases commonly used by participants in describing
their experience of workplace bullying. For the
purpose of this paper, the themes were identified as
legal action and the factors that deterred the pursuit
of legal action. In order to illustrate the themes, the
narrative extracts from the transcripts and email

responses were listed under their respective theme.
This format further assisted with the clarification of
words and phrases used.
In order to further conceptualise participants
experiences, additional information was required
from the transcripts. Page numbers on which the
narrative extracts appeared in the transcripts were
listed to enable ready identification.
In identifying the shared words and phrases used,
patterns emerged that were common to many
participants.
For example, in relation to
participants actions in response to being bullied, the
researcher searched for what each participant had
said about what action they took. The number of
participants who commented about each action, such
as approaching their union, was tallied and recorded.
However, if only one or two participants were
identified within a theme, then their responses were
collapsed into a related theme. For example, in
relation to what hindered participants attempts with
taking legal action, only two participants had
commented on their financial status. Consequently,
these responses were collapsed into a larger theme
entitled, lack of support and acknowledgement.
Once the themes had been categorised, the data was
reorganised into a meaningful context. At the
conclusion of the data analysis, participants
experiences were described and presented in a
narrative format in which there was generous use of
appropriate illustrative extracts. For the purpose of
this paper, the categories entitled legal action and
factors that hindered/deterred the pursuit of legal
action is presented and discussed.
For reasons of confidentiality, the participants are
not identified in this paper. Identification is noted
by the letter P and followed by a numeral relating to
the individual participant. For example, P1 indicates
participant number one, and so on.
Results
Legal Action
All participants took or considered taking legal
action in response to being bullied in the workplace.
One of the first steps taken by participants was to
approach someone in the legal profession such as a
lawyer, barrister or solicitor. However, although all
participants received advice in regards to their
situation, most did not proceed with legal action.
The high cost associated with taking legal action
was one contributing factor that influenced the
decision to proceed.
Thousands of pounds down the road, I was no
further on and couldnt afford any more advice. I
could not afford to proceed. (P 2)
I was actually told by a solicitorhe felt that I had

a case, that I would have won, but he said, you
have to be prepared that if you do lose, youre up for
$15,000. Well I already had a debt of a car and I
just couldnt take that on. (P8)
Another contributing factor that influenced the
decision to pursue legal action was the nature of the
interaction between the lawyer and the participant.
Five participants reported having a bad experience in
relation to their dealings with their lawyer, solicitor
or barrister.
One participant believed that her
experience with her lawyer was almost as traumatic
as the bullying, stating, It was almost as bad as the
bullying in some ways (P1). She believed that the
lack of support for and acknowledgement of her
problem and the ignorance of her lawyer was due to
the fact that there are no laws that specifically deal
with workplace bullying.
I was repeatedly told that I was foolish for
pursuing my claim (by my own lawyer!) and that my
career was in jeopardy (Doh!). EVERYONE
including the other side conceded that I was being
wilfully targeted and harassed, but because there
were no laws, I had very little recourse. (P1)
The legal professionals approached were reported to
have little experience and knowledge in the area of
adult workplace bullying.
In one case, this
ignorance led to a belittling of the participant by the
lawyer.
I had a good case. However, the lawyer they chose
was completely unaware of bullying issues, that was
as clear as day (although they said they were
experts) and the barrister was the same. I was
ultimately told by the London barrister that he was
not prepared to go to court to fight the might of the
Health and Safety Executive and I was merely
suffering from a feeling of being unloved. (P2)
In another case, the legal expert approached was
reported to be incompetent and manipulative in
relation
to
misreading
files
and
underestimating/misquoting legal costs. In addition,
the participant (P11) was appalled at the poor
presentation skills of his lawyer during the hearing
stating that it was a disgraceful, shocking and
grossly inept performance, you know, and at the end
result I came away feeling quite devastated and
stunned, you know. Overall, P11 found the whole
legal
experience,
utterly
disgraceful,
unprofessional, abusive, a bullying relationship in its
essence. Due to these negative experiences,
participants were deterred from pursuing legal
action.
However, not all of the legal experiences reported by
the participants were negative. Five participants
were supported by their lawyer and found them to be

knowledgeable, understanding and helpful. For
example, P7 stated, [My lawyer was] very helpful.
He wanted to put a writ on him there and then. The
experience of approaching a solicitor was also
positive for P8. She explained, Yeah, I thought he
was very, very goodI thought he was very good,
very informative, and very supportive. The
factors that defined a positive experience in relation
to taking legal action were understanding,
acknowledgement, reassurance and support. These
factors were highlighted by five participants who
reported a good experience in relation to pursuing
legal action.
Hes a good bloke. Hes down to earth and he
knowshes had a bit of experience in that area
sono, he was really good to talk to. He made me
feel good. (P10)
I have spoken to actually a law clerk, not actually a
lawyer, but a friend whos a law clerk and shes told
me a lot of the rights and everything that Ive had
and I spoke to Job Watch who told me a lot of the
rights. (P9)
Factors that deterred the pursuit of legal action
All participants considered taking or took legal
action as a response to being bullied in the
workplace. Overall, the general experience was
unsatisfactory as their efforts were hindered by two
main factors (1) lack of support and
acknowledgement by solicitors and lawyers and (2)
lack of resources and guidelines.
Because most participants had never experienced
this kind of treatment in the workplace, they needed
support and acknowledgement that their situation
was real and their complaints were warranted.
Unfortunately, most did not receive this
acknowledgement from the lawyers and solicitors
that they approached. In addition, most participants
were uninformed of their options and believed that a
set of guidelines would have assisted them in taking
legal action.
Lack of support and acknowledgement
When asked about what information would have
been helpful to them in considering taking legal
action, five participants believed that validation from
their lawyer or solicitor would have minimised the
guilt and doubt that they experienced.
One participant believed that this lack of support and
acknowledgement was due to the fact that their
solicitor was not fully aware of workplace bullying
issues.
I think I needed support from, say, someone like
yourself, who knew what was going on, how to
80
handle it, which direction to go. I felt the solicitor

didnt know a lot about it. (P7)
Two participants expressed concern relating to their
financial status and how taking legal action would
impact on their financial situation. In deciding
whether or not to take legal action, they sought
reassurance that they would not be financially worse
off. They wanted to know that the legal costs would
be subsidised by their organisation. However, they
did not receive this financial support. For example,
P9 wanted reassurance that he/she wouldnt have
that debt at the end. P9 expressed concern that
he/she couldnt afford it. Unfortunately, for
two participants, the cost of taking legal action
influenced their decision not to pursue the matter
further.
Lack of resources and guidelines
Another factor that influenced the participants
decision to pursue legal action was the lack of
information and resources available to them. Six
participants were at a loss in relation to what to do
and who to approach. Two participants believed that
a list of lawyers or a set of guidelines would have
empowered them to successfully pursue legal action.
They believed that such resources would have saved
them time and energy.
Perhaps a list of lawyers from which to choose who
have experience in bullying casesknowing which
lawyers have processed and won such cases. (P1)
Probably some kind of a kit like a Do-It-Yourself
Will or something of, you know, this is exactly what
you need to do. (P9)
In retrospect, most participants were unsatisfied with
the actions they took and believed that they could
have made better decisions if they were well
informed of their rights within the legal system.
Discussion
Some of the participants in the study made the
decision to seek legal redress because of their
bullying experience. The outcome of pursuing legal
action resulted in positive experiences for some, yet
negative experiences for others.
The positive
experiences related to receiving support from a
lawyer, barrister or solicitor, who was
knowledgeable, understanding and helpful.
A
positive experience was also attributed to feeling
acknowledged and reassured by the legal
professional.
The negative experiences related to the interaction
between the legal professional and the client or
victim of bullying. Participants attributed their
negative experiences to the legal professionals (1)
lack of support for and acknowledgement of the
problem, (2) ignorance, (3) lack of experience and

knowledge of workplace bullying and (4) poor
professionalism in handling the case. In addition,
participants also related their negative experience to
the high costs of seeking legal redress and the lack
of information and resources available to them.
The issues raised in this paper highlight the need to
inform members of the legal profession about the
causes and consequences of workplace bullying.
For example, lawyers, barristers and solicitors may
need to be educated as to (1) What behaviours
constitute as workplace bullying, (2) Who are the
bullies, (3) Who are the victims, (4) The impact of
workplace bullying on the physical and
psychological well-being of the victims, (5) How
victims respond to workplace bullying, (6) The
perceive reasons for being targeted and (7) The
outcomes of actions taken by targets, that is, the
success/failure rate of approaching internal and
external organisational helping structures.
Following on from this, legal professionals need to
be educated as to what their professional role might
be in helping people who have been bullied in the
workplace. For example, professionals need to be
educated about how to work with clients that have
been bullied to ensure that they do not exacerbate
the clients situation further. Legal professionals
need to offer a service in which the client perceives
that his/her problem is acknowledged and that he/she
is supported by the legal professional. In addition,
the professional needs to be knowledgeable in the
area of workplace bullying and be aware of the
support services available to victims of bullying to
further support and empower their client(s).
Conversely, the issues raised in this paper also
highlight the need to educate the clients, that is, the
victims of bullying, as to how the legal system may
help them and how they can empower themselves
before entering into a lawyer-client relationship. For
example, clients need to be prepared for the first
interview with their lawyer/barrister/solicitor in
order to state their case clearly and concisely.
Clients also need to be educated as to what questions
they should ask and what evidence is needed to
assist the lawyer make a judgement as to how he/she
might help. Finally, clients need to be able to
prepare and provide any documentary evidence they
may have to support their case.
Another aspect that is evident from the negative
experiences reported by participants is that, in
general, lawyers are not trained consultants, medical
professionals or social workers. While they may
have skills pertinent to their roles as a lawyer, they
dont have the necessary skills to counsel people
who have experienced traumatic events. Therefore,
clients need to be aware that details of events are
better discussed with more appropriate professionals

such as psychologists.
Education is the key to minimising the negative
experiences of victims of bullying seeking legal
redress. It is important that in the lawyer-client
relationship that both parties are well informed of
their own and each others roles and responsibilities
when working together. Workplace bullying is
increasingly receiving attention not only in the
media but also in the law courts. If this trend
continues, then guidelines and resources pertaining
to workplace bullying need to be readily available to
legal professionals and victims of bullying to ensure
that victims are not further traumatised when
seeking legal redress.
Acknowledgements
The researchers wish to acknowledge that funding
for the original research from which this paper is
drawn was provided by a small Australian Research
Council (ARC) grant. They would also like to
acknowledge all of the participants who agreed to
share their stories for the purpose of this study.
They also thank Oonagh Barron from Job Watch in
Victoria and Helene Dyer from Griffith University
for their ongoing support and assistance throughout
the project.
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Productivity improvement, declining union influence and price

deflation: The Australian coal industry and workplace reform since
1997
Bradley Bowdena and Bob Russellb
b
School of Industrial Relations, Griffith University, Australia
a
Abstract
The passage of the Workplace Relations Act in late
1996 represented a significant departure from the
collectivist traditions that have been a hallmark of
Australian industrial relations during the twentieth
century. This paper will examine the impact of these
changes in the Australian coal industry. Two key
issues will be considered. First, the paper will seek
to determine whether a reduction in union influence
has resulted in improved workplace productivity.
Second, the paper will consider the overall impact of
enhanced productivity on the industry. These two
issues will be considered primarily through a
comparison of the strategies pursued since 1997 by
Australias two largest coal companies Rio Tinto
and BHP. It will be argued that, while the WRA has
produced major gains in productivity, these gains
have not resolved the key problem facing the
industry, which is associated with falling coal
prices. On the contrary, increased output and lower
costs have only acted to deepen the deflationary
price spiral in which the industry is trapped.
Keywords:
Coal; Costs; BHP; Productivity; Prices; Rio Tinto;
Trade Unions; Workplace Relations Act
Introduction
In looking back over the experience of the 1990s it
is evident that, while there were many forces
associated with economic and social change, a drive
for improved productivity was common to virtually
all industries. Nationally, this search for improved
productivity was characterised by the deregulation
of a wide range of markets, including the labour
market. At the workplace, enhanced productivity
became the principal response to the increased
competitive
pressures
that
resulted
from
deregulation. This, in turn, drove a fundamental
review of work practices, employment relationships
and industrial relations. One of the consequences of
this transformation of workplace relations was a
steady displacement of traditional unionised forms
of employee representation. Despite the historical

strength of Australian trade unions, in most
industries they proved powerless to pre-vent a
catastrophic decline in their coverage. By 1996 only
31.1 per cent of employees were union members a
20 per cent decline in 20 years (Peetz, 1997: 2).
While the pressures to engage in workplace reforms
were evident throughout the 1980s and 1990s, the
pas-sage of the Workplace Relations and Other
Legislation Act, 1996 (WRA) allowed employers
new options. Under the terms of the WRA awards
were stripped back to certain allowable matters,
closed union shops were outlawed and individual
contracts - referred to as Australian Workplace
Agreements (AWAs) were given primacy over
awards and collective agreements. In the Australian
coal industry, historically a bastion of militant
unionism, employers have taken advantage of the
passage of the WRA to reshape their relationship
with their employees. In doing so, employers have
used a variety of strategies. Some, such as Rio Tinto,
have simply repudiated non-award conditions while
simultaneously seeking to de-unionise their
workforces through the use of AWAs. Others, such
as BHP, have transformed the substance of
workplace relations through new collective
agreements. Despite these differences in approach,
the same overall objective has been sought by all
coal employers more productive and lower cost
workplaces. Broadly these objectives have been
achieved. In 1998, for example, industry
productivity increased by a staggering 19 per cent.
As productivity leapt forward employment was
slashed, falling from 26,406 in June 1996 to 20,296
in December 1998 (JCB & Qld Dpt of Mines &
Energy, 1998: v).
The experiences of the Australian coal industry since
1997 pose a number of key questions. First, there is
a need to identify a causal relationship between
formal institutional change and productivity
outcomes. Put simply, can the productivity gains that
have occurred in the coal industry since the passage
of the WRA be attributed to the changed industrial
84
relations environment? For the answer to this

question to be in the affirmative the specific linkages
between
industrial
change
and
improved
productivity must be identified. Second, and more
importantly, it must be determined whether or not a
strategy aimed at increasing productivity, and
lowering costs, is capable of redressing the longterm problems of the coal industry, which are
primarily associated with a constant fall in coal
prices. To answer these key questions this paper will
examine, first of all, the literature on the linkages
between unionisation and productivity. It will then
consider the post-1997 experiences of Australias
two largest coal producers Rio Tinto and BHP.
Finally, it will analyse how improved productivity
has effected the industry. It will be argued that,
while there is indeed a causal relationship between
the passage of the WRA and enhanced industry
productivity, such gains have caused a deepening of
the deflationary price spiral in which the industry is
trapped.
More Productive Workplaces Do Unions make a
difference?
In the long boom that followed the end of World
War II economic growth was premised on a
Fordist system of work, where high wages enabled
consumers to purchase mass-produced goods and
services. Under this system, productivity gains were
largely achieved through massive economies of
scale, rather than through flexible labour
deployment. Given that production was focused on
achieving uniformity at a standardised price, the
Fordist model showed little interest in the different
talents of individual employees (Kochan, Katz &
McKersie, 1989: 88-9) In this context, trade unions
served a number of functions. First, they negotiated
standardised wages and conditions for workers
performing similar work. Second, by enforcing wage
standards across industries they provided a floor
below which labour, and hence production, costs
could not be driven. Finally, they provided a broad
social service by protecting the weak and
disadvantaged.
While management in most industrialised countries
accepted unions during the 1950s and 1960s, this
tolerance rested on the perceived superiority of the
Fordist work model. By the 1980s, however, this
model was in de-cline, as new theories of job design
saw employees provided with increased job
discretion and a wider range of tasks. In this new
work environment unionised work-places, unless
protected by peculiar legal and/or market
circumstances, were increasing displaced by nonunion workplaces. In the United States, for example,
a detailed case-study analysis conducted in the
1980s concluded that, on average, established
unionised plants had less flexible work-organization
systems, receive fewer in-vestment dollars and are
shrinking in size All of this suggests that higher

union costs are not being offset by other productivity
advantages (Kochan, Katz & McKersie, 1989: 104).
As the percentage of unionised businesses began to
de-cline a number of studies were undertaken to
determine whether the presence of unions could, in
fact, positively affect productivity outcomes. The
classic study in this regard was undertaken by
Freeman and Medoff (1984), who concluded that
unions did increase workplace productivity by
providing employees with collective voice. Such
voice, Freeman and Medoff contended, lifted
productivity by reducing employee exits and
establishing an important communication channel
between workers and management. In Australia, the
importance of voice in raising productivity has
been most fully developed in the work of David
Peetz, who has linked union survival to their
achieving productivity outcomes equal to or superior
to those found in non-union firms (Peetz, 1998: 14).
If Freeman and Medoff indicated how unions could
raise workplace productivity, they were forced to
concede that such gains were seldom high enough to
compensate firms for the higher costs associated
with unionisation. They concluded: Higher
productivity does not mean higher profits Though
exceptions can be found, unionisation is more often
than not associated with lower profitability
(Freeman & Medoff, 1984: 169, 181). Unfortunately for those seeking to demonstrate a
verifiable empirical link between unionisation and
productivity enhancement, even the relatively
modest findings by Freeman and Medoff have been
widely questioned. In a major critique of the union
voice literature, Hirsch and Addison (1986: 202,
207) found that a glimpse inside the black box of
union-induced productivity improvement reveals
few insights into the behavioural changes resulting
from unionism evidence of a union productivity
effect is underwhelming.
Despite an international trend towards non-union
work-places, and a body of literature that indicated
that unions generally had a negative effect on overall
business performance, there were few attempts to
establish non-union workplaces in Australia before
the late 1990s. This tardiness in large part reflected
the continued role of the nations conciliation and
arbitration system. Prior to the introduction of the
WRA, this system provided management with few
options other than that of negotiating change with a
trade union. In this regard the WRA represented a
major break with the past by allowing management a
range of options in deciding how the wages and
working conditions of their employees would be
determined. This break with the past was of
particular significance in highly unionised sectors
such as the coal industry, where previously the
alternatives before management were even fewer

than those existing in other industries.
The Australian Coal Industry Prior to 1997
Prior to the passage of the WRA in December 1996
the coal industry was the nations most highly
unionised sector. Only Ensham - a small,
geographically isolated mine west of Emerald
stood between the coal unions and a total closed
shop. Coverage of workers within the industry was
split between the Construction Forestry Mining and
Energy Union (CFMEU), which represented all
production employees and a significant minority of
tradespeople, and two craft-based unions (the
Communication Electrical and Plumbing Union and
the Australian Manufacturing Workers Union).
While the industry had lost its own, unique system
of industrial regulation with the abolition of the Coal
Industry Tribunal in 1995, changes to working
conditions and work practices still had to be
negotiated with the coal unions.
Despite periodic employer complaints about union
restrictions, the overall record of the Australian
coal industry is one of extraordinary achievement.
Since the development of an export-based industry
in the 1960s, when low-cost coal first became
available from new open-cut mines in Central
Queensland, the industry has witnessed constant
improvements in both productivity and exports.
Between 1980 and 1997, for example, productivity
rose at a compound annual rate of 6.7 per cent
(Productivity Commission, 1998: 39). These gains
accelerated during the early 1990s, as new work
models were negotiated by unions and employers in
response to falling coal prices. Where, in 1990, the
average miner produced 3.1 tonnes of saleable coal
per hour, by 1996 this had increased to 4.03 tonnes
per hour (JCB & Qld Dpt of Mines & Energy, 1998:
16). These improvements helped lift exports, which
grew from 106.59 million tonnes (mt) in 1990 to
157.334 mt in 1997, giving Australia control of
more than one-third of the worlds sea-borne exports
(Carrington, 1998: 10).
Despite the undoubted achievements of the
Australian coal industry in the late 1990s it suffered
from a number of problems. At the heart of these
problems was a continuing fall in prices, which were
largely determined by annual negotiations between
the Japanese Steel Mills (JSM) and selected
producers. From a peak of US$57.49, received in
1985-6, nominal coking coal prices fell to US$42
per tonne in 1998. The situation was even more dire
for thermal producers, most of whom were to be
found in New South Wales (NSW). By 1998 the
contract price for Australian thermal coal had fallen
to US$29.90, while spot prices were reported to be
less than US$20. For thermal producers, in
particular, these prices made coal mining (at best) a
barely profit-able concern, given that production
costs for most producers were considered to be

between US$25 and US$30 per tonne (World Coal,
January 1999: 5)
Between 1986 and 1996 Australian coal producers
responded to falling prices by seeking improved
productivity through union-negotiated workplace
changes. As indicated previously, these negotiated
changes were effective in achieving this objective,
with employee productivity rising by 42 per cent
between 1990 and 1996 (JCB & Qld Dpt of Mines &
Energy, 1998: 22). How-ever, employers found that
these gains in productivity came at a cost in terms of
higher wages, overtime costs, shift allowances and
production bonuses (Productivity Commission,
1998: 118). In this regard the coal owners were
confronting the classic dilemma, discerned by
Freeman and Medoff, that any productivity
improvements in unionised workplaces are normally
accompanied by increased wage and benefit costs.
Thus, while productivity increased as a result of
union-negotiated changes, so too did the labour cost
per tonne, which rose marginally from US$11.80 in
1990 to US$11.90 in 1996 (IEA, 1998: I.204-5).
For coal owners the combined effect of falling prices
and rigid labour costs was reflected in poor returns
on shareholder capital which, between 1990-91 and
1996-7, were less than half that obtained in the
manufacturing sector (Productivity Commission,
1998: 40). By 1996, this crisis of industry
profitability was forcing employers to reassess the
way in which they negotiated change with their
workforces. Increasingly, this involved employers
focusing on reducing the costs of production, rather
than simply hoping that enhanced productivity
would also deliver lower costs. As BHPs Chief
Financial Advisor observed in a brutal reassessment
of his own companys past policies:
The way the company had tradition-ally thought
about value has been simply in terms of volume
They always thought if you produce more tonnes
that meant more value. But they never considered
what it cost to do that (Goodyear, 1999).
Workplace Change under the WRA The Case of
Rio Tinto
There is little doubt that the WRA represented a
marked departure from previous forms of industrial
relations regulation within the Australian coal
industry. An under-standing of how it impacted on
actual work practices, however, requires a
consideration of the specific strategies pursued by
the key coal owners. In this regard the role played by
Rio Tinto, the industrys second largest producer, is
particularly instructive, given that companys
willingness to act as a pacesetter in seeking
workplace reform. This pacesetter role can be
attributed to two factors. First, as Timo (1998) has
86
demonstrated, Rio Tinto has a clear ideological

preference for non-unionised workforces. Second,
the company has a de-served reputation for being
more aggressively cost-focused than many of its
competitors. As the firms Executive Chairman
observed in 1999: In Rio Tinto we have a reputation
for reducing costs and lifting efficiencies,
particularly operating efficiencies and labour
productivity (Wilson, 1999).
focused the minds of the survivors, impressing upon

them the importance of intensified work efforts. This
latter trend was most clearly demonstrated at Hunter
Valley No.1,. At this mine the amount of coal and
waste moved per employee increased from 120,000
tonnes per annum (tpa) in early 1997 to 210,000 tpa
in October 1998, as workers were progressively
selected for retrenchment (Australian Mining, 1999:
9).
In early 1997 Rio Tintos coal assets were

concentrated in the highly competitive thermal coal
sector, with mines in both Queensland and NSW.
Following the passage of the WRA, Rio Tinto began
a co-ordinated campaign to reforge mine-site
relations, focusing initially on the largest mine in
each state Hunter Valley No. 1 and Blair Athol. At
these mines the company appears to have followed a
four-pronged strategy. First, beginning in early
1997, Rio Tinto simply repudiated a range of nonaward agreements and practices. These included the
requirement that contractors be union members,
time-off for union delegates performing union
duties, and paid union stop work meetings (Bates,
1997). During the course of 1997-8 other unilateral
changes introduced by Rio Tinto included reduced
overtime payments, the introduction of rotating
shifts, the ending of seniority arrangements and the
introduction of staggered meal breaks (AIRC, 1999:
67).
The final, and most controversial, prong of Rio

Tintos change strategy relates to accusations that it
has victimised its unionised employees. While this is
denied by the company, legal actions taken by the
CFMEU do suggest that Rio Tinto is unsympathetic
to union representation. In an unfair dismissal case
waged by the CFMEU on behalf of 16 sacked Blair
Athol unionists, for example, one company
supervisor conceded the existence of a black list
[of] the people they wanted to get rid of (CFMEU,
1999).
The second prong of Rio Tintos campaign involved

the use of AWAs, which were offered at both Hunter
Valley No. 1 and Blair Athol in March 1997. This
strategy was most successful at Blair Athol, where
49 former CFMEU members had taken up AWAs by
March 1998. By contrast, at Hunter Valley No. 1
only 15 miners defected from the union (BAC, 1998;
Australian Mining, 1999: 9). While most miners
chose to reject the companys offer of AWAs and
remain loyal to their union, the defections
nevertheless seriously undermined the unions
industrial strength, as employees working under
AWAs continued to work alongside staff members
during any strike (Transon, 1999: 10).
The third component of Rio Tintos campaign was
associated with mass redundancies. At Hunter
Valley No. 1, total employment fell from 510 in
early 1997 to 210 in mid-1999. Similarly, at Blair
Athol workforce numbers declined from 335 in early
1997 to approximately 200 in late 1999 (CFMEU,
1999). These redundancies helped Rio Tinto achieve
its operational goals in a number of ways. First,
redundancies directly reduced total mine labour
costs. Second, the application of selection by merit
allowed mangers to dispense with those (unionised)
employees that were perceived to be at odds with the
companys objectives (BAC, 1998). Finally, and
perhaps most significantly, mass redundancies
If, in early 2000, the coal unions maintain the loyalty

of most Rio Tinto miners, this cannot hide the fact
that the company has successfully established a new
regime of work. The essential features of this new
work regime are increased managerial control,
increased work intensity, dramatic gains in
productivity and reduced labour costs. At the
workplace level these changes are reflected in a
range of new work practices. Three-person blast
crews, for example, now undertake explosive work
that was previously undertaken by seven-person
crews. Similarly, mining drills now operate with one
employee, compared to two previously, while the
average amount drilled per shift has increased from
240 metres to 600 metres (Transon, 1999: 10). Such
work practices have under-pinned dramatic gains in
productivity, with the company reporting
improvements of 57 per cent at Blair Athol and 60
per cent at Hunter Valley No. 1 during 1998 (Daley,
1999).
While Rio Tinto has used the introduction of the
WRA to introduce a range of new, more productive
work practices, these changes have also been
associated with a dramatic lowering of labour costs
per tonne. In this regard the company has achieved
significantly different outcomes to what was
achievable through unionised bargaining prior to
1997, where firms anticipated that higher
productivity and output would automatically lead to
lower costs. As Allan Davies, the mine manager at
Hunter Valley No. 1 observed, it was a mistake to
concentrate on reducing unit costs by increasing
tonnages rather than cutting absolute costs
(Australian Mining, 1999: 9). Under this new
operational focus management attention is now
primarily directed at costs per tonne, rather than
productivity. At Hunter Valley No. 1, for example,
change was premised on the assumption that mines

would need to be profitable at price levels of around
US$25 per tonne (i.e. US$4.90 less than the 1999
benchmark price for thermal coal). The longer-term
goal was stated to be that of putting coal on the
train at a total cash cost of US$13 per tonne. During
1998 major steps were made towards this goal, as
mine-site cash costs fell by US$6-7 per tonne
(Australian Mining, 1999: 9)
Workplace Change under the WRA The Case of
BHP
While Rio Tintos post-1997 strategy can be
characterised as one of lowering operating costs by
reducing un-ion restrictions on managerial
prerogative, BHP the nations largest coal
producer - has maintained the out-ward forms of its
traditional co-operative approach to industrial
relations. Change has been negotiated, not imposed.
In the coal industry, unlike the iron ore industry,
BHP workers have not been offered AWAs. This
continuance in the outward forms of behaviour has,
however, masked a transformation in the underlying
relationship between the company and its unionised
workforce. The key factor in the changed
relationship is a shift in the companys operational
focus, which is now directed primarily towards
reducing costs, rather than increasing productivity.
As Neil Bristow, a senior BHP executive, observed
during 1999, the company is now engaged in a
radical attack on all aspects of costs (cited Daley,
1999: 17).
Where BHP has differed from Rio Tinto is not in the
objectives that it has sought, but rather in the tactics
it has used. As with Rio Tinto, BHPs change
strategy has been multi-pronged. First, a hurdle
rate was set for all mines, measured in terms of
returns on shareholder capital. Where mines were
unable to meet this hurdle, as was the case with Mt
Owen in NSW and Moura in Queensland, they were
simply sold off. Second, performance in all areas
was benchmarked against best practice. For
workers in the truck-shovel area this benchmark was
set at the rate a contractor would do the same job,
minus the profit margins and ownership costs of the
contractor
(Kirby, 1998: 6-7). Where mine
employees could not reach such benchmarks, as
occurred with blast crews at Blackwater, operations
were contracted out (Kenny, 1998). Third, where
work was contracted out BHP sought to drive down
contractor rates. In early 1999, for example, BHP
issued a notice to its contractors in Central
Queensland, entitled Pricing for Survival. In this
notice contractors were warned that: Where vendors
do not support this initiative, BHPs options include
renegotiation of agreements and/or retendering,
which may lead to loss of BHP business (Courier
Mail, 1999: 2)
The fourth prong of BHPs change strategy involved

setting a target rate for each employee in terms of
sale-able output per year. Between 1998 and 1999
this rose from 9,000 tonnes to 15,000 tonnes
(Australian, 1999: 28). Finally, like Rio Tinto, BHP
engaged in massive redundancies that saw the
companys Central Queensland workforce fall from
4,2000 in 1998 to 2,800 in May 2000 (McNeily,
1999: 3). Overall, BHPs cost-reduction strategy is
estimated to have reduced mine cash costs by 25 per
cent during the 1998-9 financial year alone,
producing savings of $600 million. At the same time
the company achieved productivity gains of up to 30
per cent (Daley, 1999: 17)
While BHPs success in achieving productivity
gains and cost reductions with its unionised
workforce would appear to indicate a strong future
role for collective bar-gaining, in truth there was
little that the coal unions could take heart from in the
train of events. If BHP continued to negotiate
change with the unions, this was contingent upon
unionised workers achieving benchmarks set by the
company. Similarly, while BHP was prepared to
consult with the unions this nevertheless resulted in
an expansion in managerial control, a massive loss
of unionised jobs and a declining union ability to
influence the way in which work was performed. In
this regard, the outcomes achieved by BHP
paralleled those obtained at Rio Tinto.
Cost Efficiencies and Price Deflation
While it is evident that the WRA has, indeed, led to
a transformation in employment relationships in the
Australian coal industry, it appears unlikely that the
associated improvements in both productivity and
cost effectiveness will ensure the industrys longterm profitability. To understand this dilemma, in
which rising productivity and reduced costs are
associated with a continuing crisis, it is necessary to
look beyond the specific achievements of any one
firm to the wider market relationship between
producers and consumers.
In responding to any major change in the external
environment there is a natural tendency for each
firm to seek its own solutions. This is particularly
the case in a de-regulated free market, where joint
action by competitors may be in breach of anticompetition policies. Unfortunately, policies that
appear eminently sane at the enterprise level can
result in a collective catastrophe if applied by all
enterprises within an industry. If, for example, one
firm reduces its cost structure through improved
productivity it is well placed to improve its profits
and/or market share. If every competitor adopts the
same strategy, however, a deflationary price spiral is
likely, unless the demand for the goods or services
being produced outstrips any additional supply.
Once a deflationary price spiral for a particular
88
product commences it is likely to continue unless a

regulatory framework is imposed, either by industry
members (a selling cartel) or by the state. If free
market forces are allowed free play, any downward
price spiral will only end when an insurmountable
cost barrier is reached, and/or when the displacement of weaker competitors allows the
survivors to stabilise prices.
In the export coal industry there are a number of
factors that accentuate any deflationary tendencies.
At the supply end, the high cost of plant and
equipment that has little use outside coal mining
ensures that any investment is relatively immobile.
Put simply, once a decision is made to buy a $100
million dragline there are few ways in which it can
used outside the industry. While coal owners may
decide to close or sell an operation, the productive
capacity remains in place. As Brian Wilson,
Executive Chairman of Rio Tinto, has observed:
Once capacity is created, it is very difficult to
remove (Wilson, 1999: 3). By 1998-9 this tendency
towards over-supply was widely understood by key
Australian producers. In May 1998, for example,
BHP Coals Chief Executive noted: The market is
oversupplied and in all segments it is oversupplied,
in the thermal sector it is grossly oversupplied
(Kirby, 1998: 1)
If there is a strong supply side tendency to towards
overproduction, on the demand side any oversupply
has been ruthlessly seized upon by buyers in the key
East Asian market to drive down prices. In this
market, the worlds largest, benchmark coal prices in
practice are still set by negotiations between the
JSM and selected Australian or Canadian coking
coal producers. As the Financial Times
International Coal Report has ob-served, this system
ensures that all suppliers receive the same price cut
or bottom-of-the-market increase as the weakest
supplier (Financial Times, 1996: iv).
Unfortunately for the Australian coal industry, while
the employers reform agenda since 1985-6 has been
driven by falling coal prices, their response has
focused entirely on the supply end. As prices have
fallen, employers have responded by increasing
productivity and, since 1997, lowering costs. While
providing a short-term relief to company balance
sheets, these cost savings have not provided a longterm answer to the industrys woes. Instead, a large
proportion of the cost savings have been passed on
to the coal buyers, as the JSM has used lower
production costs to justify further price cuts. As
observers noted during the 1999-2000 price
negotiations between the JSM and BHP: The
Japanese need only produce these figures to deflate
any expectations [of a price increase] among their
Australian counterparts (Australian, 2000: 15).
In both the 1998-9 and 1999-2000 price rounds the

problems inherent in the strategies of the Australian
producers were clearly in evidence, as prices were
cut by 18 per cent and five per cent respectively.
While the pressure for price reductions partly
reflected lower demand by the JSM in the face of the
Asian financial cri-sis, the scale of the cuts also
reflected an oversupply of the market with low-cost
Australian product. Nor is it possible to dismiss this
outcome as one caused by in-creased international
competition, given the dominance of Australian
producers in the East Asian markets. Indeed, in
recent years the position of Australian producers has
actually strengthened in the key East Asian coking
coal market where benchmark prices are first
negotiated. Not only were Australian exports more
than double those of the next largest producer, the
United States, Australian producers also maintained
a major competitive advantage at the point of sale.
Using International Energy Agency (IEA) figures, it
is possible to calculate the average transport and
labour costs of suppliers to the Japanese market.
These indicate that, in 1995-7, Canadian and United
States exporters to Japan faced costs of US$32.94
and US$38.30 per tonne respectively. By contrast,
combined labour and transport costs for Australian
producers from the Hunter Valley were a mere
US$26.03 (IEA, 1998: I.166-7).
Despite the workplace gains that have been secured
by the key Australian producers since 1997 their
inability to develop business strategies that
encompass both demand and supply side market
trends has left the industry in a continuing crisis. As
the Financial Times (1997) has observed: Coal
represents a highly profitable commodity, but only
for the buyer, not the producer. Australian
producers, however, appear committed to the view
that every problem confronting their operations can
be met by greater efficiencies at the workplace. In
continuing to endorse this strategy the dominant
producers are well aware that it will, in all
likelihood, fuel future price cuts. However, none is
prepared to consider an alternative. As Rio Tinto
(1997: 22) informed the Productivity Commission:
Achieving higher volumes has been a key strategy of
established producers to lower unit costs. This is a
legitimate response but has fuelled past price declines. However new projects remain available for
development despite this pressure, and there is no
alternative to continue on this basis.
Conclusion
Since the establishment of an export-oriented coal
sector during the early 1960s the industry has been
one of Australias most productive. At the close of
the twentieth century it stood in a position of
international pre-eminence, supplying more than
one-third of the worlds sea-borne coal exports.
Despite its many achievements, however, the

industry has since 1986 been under considerable
pressure, as falling coal prices undercut profitability. In responding to this crisis the industry has
focused exclusively on supply side changes, with
firms seeking productivity improvements and cost
reductions at the workplace to compensate for any
fall in price.
Prior to 1997 productivity improvements and cost
reductions were largely obtained through negotiated
changes with the various coal unions. By late 1996,
however, the unions defence of standardised wage
rates, overtime and other benefits presented
employers with an insurmountable barrier to further
labour cost reductions. In this context, the passage of
the WRA came at a particularly opportune moment
for employers. Un-der the terms of the WRA a range
of non-award conditions could simply be repudiated.
Workers could also be enticed away from their trade
unions through the offering of Australian Workplace
Agreements. In taking ad-vantage of such
provisions, Australias two largest producers Rio
Tinto and BHP have followed different tactics.
While Rio Tinto launched a direct assault on trade
union influence, BHP sought cost reductions through
negotiated change. In both cases, however, the final
workplace outcomes have been remarkably similar.
The ability of the coal unions to influence how work
is performed has been reduced. Labour costs have
been slashed. Productivity has soared.
If the coal owners have utilised the WRA to lower
their labour costs, this has done little to redress the
industrys key problem falling prices. Instead, the
industry finds itself caught in a classic cost-price
deflationary spiral, where every cost reduction fuels
the next round of price cuts. While it is clear that the
key industry players, notably BHP and Rio Tinto,
understand the dilemma in which they find
themselves, there is little evidence that they have
any solution other than further cost reductions. Like
rats on a treadmill, each player is inspired by the
belief that if they keep running hard enough then
eventually a way out of the cycle will be found.
References
Australian (1999) 9 June.
Australian (2000) 27 January.
Australian Industrial Relations Commission (1999)
Full Bench Decision: CFMEU and Coal &
Allied, Print R9735, 7 October.
Australian Mining (1999) Vol. 91 No. 5, June.
Bates, R. (1997) Memorandum from General
Manager of Operations at Blair Athol Coal to
all employees re. Changes to Work Practices,
10 January.
Blair Athol Coal (1998) Interviews with Production
Managers and HR Manager, 17 April.
Carrington Coal Company (1998) Coal 1998,

Carrington Coal Company, Newcastle.
CFMEU (1999) CFMEU Media Release Rio Tinto
witnesses admit to Black List at Blair Athol
coal mine, 1 December.
Courier Mail (1999) 13 May.
Daley, J. (1999) Australia Report, World Coal, Vol.
8 No. 6, June, pp. 12-20.
Financial Times (1996) International Coal Report:
Coal Year 1996, Financial Times, Petersfield.
Financial Times (1997) International Coal
Industries: a Silent Crisis, International Coal
Report: Coal Year 1997, Financial Times,
Petersfield.
Freeman, R. B. and Medoff, J. L. (1984) What do
Un-ions do? Basic Books, New York.
Goodyear, C. (1999) Presentation to the Merrill
Lynch and New Zealand Investment
Conference, New York, 12 October.
Hirsch, B.T. and Addison, J.T. (1986) The
Economic Analysis of Trade Unions: New
Approaches and Evidence, Allen & Unwin,
Boston.
International Energy Agency (1998) Coal
Information 1997, International Energy
Agency, Paris.
Joint Coal Board & Queensland Department of
Mines and Energy (1998) Australian Black
Coal Statistics, Sydney.
Kenny, W. (Secretary, CFMEU Blackwater Lodge
No.1), (1998) Interview, 15 April.
Kirby, B. (1999) BHP Business Briefing, BHP, 13
May.
Kochan, T. A., Katz, H. C., and McKersie, R. B.
(1989) The Transformation of American
Industrial Relations, Basic Books, New York.
McNeilly, R.J. (1999) BHP Business Briefings:
Minerals Presentation, BHP, August.
Peetz, D. (1998) Unions in a Contrary World, Cambridge University Press, Melbourne.
Productivity Commission (1998) The Australian
Black Coal Industry: Inquiry Report, 1,
AusInfo, Canberra.
Rio Tinto (1997) Killing the Goose: The urgent
need for reform in Australias Black Coal
Industry, Sub-mission to the Productivity
Inquiry into the Australian Black Coal
Industry.
Timo, N. (1998) Precarious Employment and
Individual Contracts in the Australian Mining
Industry, Labour & Industry, Vol. 9 No. 1, pp.
53-68.
Tronson, K. (1999) History and Significance of the
Hunter Valley Dispute, Rio Tinto, Sydney, 16
November.
Wilson, B. (1999) Speech delivered to Rio Tintos
Annual General Meeting, Rio-Tinto, Sydney.
World Coal, Vol. 8 No. 1, January, pp. 5-6.
90

Bradley Bowden
Senior Lecturer
Griffith University
Nathan QLD 4111
Phone:(07) 38757758
Email: B.Bowden@mailbox.gu.edu.au
Bob Russell
Senior Lecturer
School of Industrial Relations
Griffith University
Nathan QLD 4111
Phone: (07) 38756566;
Email : R.Russell@mailbox.gu.edu.au
Differences in levels of emotional exhaustion in women police

officers related to interactions of supervisor and coworker support
David F. Brown a, Andrea Kirka, Briony Thompsonb
a
School of Business, La Trobe University, Australia

School of Applied Psychology, Griffith University, Australia
Abstract
Previous research on police employees has
suggested that workplace support may be a key
variable effecting levels of emotional exhaustion.
However, much of this research has been conducted
on male officers. This study examined interactions
between sources of workplace support related to
differences in levels of emotional exhaustion
between women police and female non-operational
staff. The results indicate that significant differences
in levels of emotional exhaustion were found
between women police and female non-operational
staff, and that these differences were related to
interactions between levels of supervisor and
coworker support. Significant differences in levels of
emotional exhaustion were found between police
and staff for low support groups. However, no
significant differences for levels of emotional
exhaustion were found between police and staff for
the comparison of high support groups. While no
significant differences in levels of emotional
the comparison of low supervisor support in the
presence of high coworker support, differences were
apparent in levels of emotional exhaustion between
police and staff for the comparison of high
supervisor support in the presence of low coworker
support. These results suggest that low levels of
support have a greater effect on emotional
exhaustion in women police officers compared to
female non-operational staff. Further, the results
provide some evidence that when compared to
female staff, low levels of coworker support may be
a more significant factor related to emotional
exhaustion in women police than low levels of
supervisor support.
(Hotchkiss, 1992; Christie, 1994; Kelly, 1995).

Police work has been ranked among the top five
most stressful occupations (Dantzer, 1987).
However, as Brown and Campbell (1990) note, there
is scarce evidence providing information on those
aspects of policing which are stressful and the
impact they have on officers or their families.
Introduction
Much of the research on this occupational subgroup

has centred on male officers. Yet, women police
may experience qualitatively different sources of
stress from male officers (Brown and Fielding,
1993). For example, in addition to the stress of
operational duties, a number of researchers have
noted that female police officers are exposed to
possible sources of stress in the form of sexual
harassment expressed as sexually oriented jokes,
inappropriate touching, requests for sex, and
degrading comments (Daum and Johns, 1994; Close,
1994; Heidenson, 1992). Few studies have
investigated differential sources of stress for men
and women. As Brown and Fielding (1993) argue,
part of the difficulty in making such comparisons is
in the low number of female officers (they report a
proportion of 11 %). Brown and Fielding (1993)
noted that female officers reported more stress than
male officers when engaged in violent encounters,
dealing with victims of violence or informing a
relative of a death. Nearly half the women reported
stress associated with sexual harassment as opposed
to 3% of men, and whilst women were no more
likely than men to report work family conflict, they
reported more stress associated with such conflict. In
a sample of police officers (92% male) negative
effects of work demands on family (in particular
concerns about health and safety) were related to
work attitudes and emotional well-being (Burke,
1994). In addition, work stress may affect the
physical health, and even life expectancy of partners
(Haynes, Eaker and Feinleib, 1983). A major
limitation of these models of occupational stress
transmission is that little research is available on
female employees in high stress occupations such as
the police service.
Recent studies of paramilitary organisations, such as

the police service, have identified a number of
possible sources of stress within the organisation
Key mechanisms of stress management are the

management of emotion (Wharton and Erikson,
Keywords:
Emotional Exhaustion; Sources of Support; Female
Police Officers
92
1993) and available sources of support, which may

mediate the effect of occupational stress. Evans,
Coman, Stanley and Burrows (1993) concluded that
there is a general tendency for male police officers
to refuse to share their emotional reactions with nonpolice personnel such as their partners or families.
However, women may use support mechanisms
differently. Etzion (1984) for example, found that
for men support in the workplace moderated the
relation of work stress and burnout, whereas for
women, life support (outside the work place) was the
significant moderator. The study by Alexander and
Walker (1994) found women officers were more
likely than men to talk things over with family and
friends; males were likely to keep things to
themselves.
In contrast to previous research suggesting that
women may seek support from outside the
workplace, a recent qualitative study suggests that
women police consider workplace support a salient
moderator of stress (Thompson, Kirk-Brown and
Brown, 1998). Women police officers frequently
identified role overload and role ambiguity as
common sources of stress, with the effects spilling
over and affecting family relationships. Social
support appeared to be the most salient factor in the
work and home environment reducing spill over; it
accounted for 51% of all comments on factors
affecting spill over of work stress to family, and
42% of all comments on spill over of family stress to
work. However, during the qualitative group
interviews a number of women police reported that,
due to the nature of police work, they did not seek
support outside the work place by talking with
friends and family about work. Due to the nature of
operational duties, women police in this study
considered that civilians could not provide the
quality of support sought. This finding is contrary to
studies suggesting that friends and family are
primary sources of support for women (Etzion,
1984). These contrary findings may indicate that
organisational context and type of work affect
sources of support utilised, and that for women
police support may involve interactions from a
variety of sources within the work environment.
The conclusions of Thompson et al. (1998) gain
support from the study by Greenglass, Burke and
Konarski (1998) of women teachers. Greenglass et
al. (1998) found that women teachers with higher
levels of coworker support reported lower levels of
emotional exhaustion. Higher levels of emotional
exhaustion led to greater somatisation, and
depersonalisation. Emotional exhaustion refers to
feelings of being overextended emotionally, and
appears to be the burnout component that is most
responsive to the nature and intensity of work
stressors (Leiter, 1991). Emotional exhaustion is
seen as the burnout component that most resembles
the prototype of stress (Lee and Ashford, 1990).

Consequently, emotional exhaustion is seen as the
core symptom of burnout (Shirom, 1989).
Greenglass et al. (1998) concluded that women
compared to men teachers sought significantly more
support from their coworkers. In women only,
coworker support led to lower emotional exhaustion.
These findings are similar to those reported by
Leiter (1991) for women and men in the military.
The previous qualitative study by Thompson, KirkBrown and Brown (1998) suggested that the nature
of operational duties affected source of support. That
is, the type of organisational role/context may affect
the way people utilise sources of support. In the
present quantitative study, a sample of nonoperational women in policing was used as a
referent group, thereby providing a comparison
group of women in the same organisation who were
not directly involved in operational roles. Measuring
supervisor and coworker support enabled the
evaluation of the impact of these variables on
emotional exhaustion. Due to the nature of
operational duties, it was hypothesised that
emotional exhaustion would be less in women police
with a higher level of coworker support. In other
words, support on the street from their coworkers
may be more salient than support from station-based
supervisors.
It is apparent from the research literature that
authors tend to concentrate on the main effects of
sources of support. However, the sometimes
contradictory findings concerning the effects of
supervisor and coworker support, suggest that
interactions between supervisor and coworker
support may provide a more meaningful explanatory
model than the examination of main effects alone.
For example, in the presence of low levels of
supervisor support high levels of coworker support
may be salient. Conversely, in the presence of low
levels of coworker support high levels of supervisor
support may be salient. Consequently, the present
study will examine the interaction effects between
supervisor and coworker support on levels of
emotional exhaustion.
Methodology
Subjects and Procedure
A self-report survey containing each of the scales
used was forwarded through the organisations
internal mail system to all women police
(operational, n= 1081), and a randomly chosen 50%
of the female non- operational (staff) employees
(n=865) of the Australian police service sampled.
The employment characteristics of the sample
groups are given in Table 1.
Table 1 Sample Characteristics of Police and

Staff Groups
Police Groups
Classification
Frequency
Recruit
13
Constable
239
Senior Constable
107
Sergeant/Senior Sergeant
56
Commissioned Officer
5
Not Reported
1
Total Responses
421
Staff Groups
Classification
Frequency
Staff Administration Officer
326
Professional Officer
23
Technical Officer
4
Operations Officer
27
Not Reported
1
Total Responses
381
Percent
3.1
56.8
25.4
13.3
1.2
.2
100
Percent
85.5
6
1
7.1
.2
100
For the women police the return rate was 40%

(n=421), and for the women staff the return rate was
44% (n=381). Due to a variety of organisational
factors (i.e.. transfers to new locations) a number of
questionnaires were undelivered and returned to the
authors. Therefore, the actual return rates are slightly
higher than those reported.
Measures
The survey included demographic data relevant to
operational and non-operational work roles, and
questionnaires measuring perceived levels of social
support from supervisor, coworkers, and degree of
perceived emotional exhaustion.
Supervisor and coworker support scales were taken
from The Social Support Measures used by Ray and
Miller (1994). The six item supervisor support scale
(Table 2) has a reported reliability of a=0.92. The six
item coworker support scale (Table 3) has a reported
reliability of a=.90. Social Emotional exhaustion
was measured by the Emotional Exhaustion Scale
(Ray and Miller, 1994). This eight item scale (Table
4) has a reported reliability of a=0.85. All of the
measures were scored over a five point Likert scale
from strongly disagree to strongly agree.
Results
In order to test the construct validity, and improve
the measurement properties of the scales, one-factor
congeneric measurement models for each of the
scales were tested. This analysis entails the
estimation of reliability and error variances of the
measurement models for each of the scales. Onefactor congeneric models (Joreskog and Sorbom,
1989) allow a large number of observed variables to
be reduced to a single composite scale which takes
into account the unique contribution of each item.
Through the use of one-factor congeneric models a

set of observed indicator variables are regressed on a
single latent variable (Holmes-Smith and Rowe,
1994). In addition to other fit statistics, LISREL
generates a coefficient of determination which
indicates the degree to which the observed variables
measure the latent variable.
A one-factor congeneric model was tested for each
of the scales using the procedure recommended by
Holmes-Smith and Rowe (1994). The statistics used
to evaluate model fit were the coefficient of
determination, goodness-of-fit, adjusted goodnessof-fit, and root mean square residual. The factor
score regressions generated by LISREL were used to
compute the weighted composite scores for each
scale. PRELIS (Joreskog and Sorbom, 1988), was
used to generate a matrix of polychloric correlations.
These matrices were used to estimate and test the
one-factor congeneric models. The results of these
analyses are illustrated in Tables 2 to 4.
It can be seen from Tables 2 to 4 that the goodness
of fit statistics indicate that each of the models
demonstrates good fit to the data. The measures of
scale reliability from .93 to .94 (coefficient of
determination)
demonstrate
high
internal
consistency. Using the data obtained from the onefactor congeneric models, new composite scores
were computed for each scale by multiplying each
item raw score with its associated factor score
regression.
Table 2 Confirmatory Item and Scale Statistics
for Supervisor Support
Perceptions of
Supervisor Support
1: My supervisor goes
out of his/her way
to make my life
easier.
2: It is easy to talk to
my supervisor.
3: My supervisor can
be relied on when
things get tough
for me at work.
4: My supervisor is
willing to listen to
my
personal
problems.
5: My supervisor
respects me.
6.
My supervisor
appreciates
the
work I do.
Scale Coefficient of
Determination
Root Mean Square
Residual
t-value
Est
.798
26.82
Factor
Score
.123
.875
30.99
.209
.871
30.79
.203
.808
27.38
.131
.886
31.65
.230
.871
30.79
.203
.94
.03
Goodness of Fit
Index
Adjusted Goodness
of Fit Index
.88
.72
94

for Coworker Support
Perceptions of Coworker
Support
1. My coworkers go out of
their way to make my
life easier.
2. It is easy to talk to my
coworkers.
3. My coworkers can be
relied on when things
get tough for me at
work.
4. My coworkers are
willing to listen to my
personal problems.
4. My coworkers are
willing to listen to my
personal problems.
5. My coworkers respect
me.
6.
My
coworkers
appreciate the work
that I do.
Determination
Root Mean Square
Residual
.93
.03
Table 5 Correlations for emotional exhaustion,

supervisor and coworker support scales
t-value
Est
.756
24.71
Factor
Score
.115
.836
28.74
.181
.860
30.01
.214
.811
27.43
.155
.811
27.43
.155
.867
30.45
.228
.862
30.17
.219
Goodness of Fit
Index
Adjusted Goodness
of Fit Index
Determination
Root Mean Square
Residual
.94
.78
.05
t-value
Est
.785
26.13
Factor
Score
.121
.736
23.85
.096
.808
27.30
.138
.931
34.41
.418
.766
25.26
.110
.753
24.65
.104
.526
15.59
.043
.773
25.58
.114
Goodness of Fit
Index
Adjusted Goodness
of Fit Index
Emotional
Exhaustion
Supervisor
Support
Supervisor
support
-.320
Coworker
support
-.251
.261
Tests of differences in levels of emotional exhaustion

between police and staff by support variable
interactions
In order to test for differences in levels of emotional
exhaustion between the police and staff groups and
the support variables, interaction groups were
defined as illustrated in Table 6. Median splits were
used to divide the support variables into high and
low groups. Descriptive statistics for the interaction
support groups are given in Table 6. Differences
between groups were tested by a set of planned
contrasts using Anova (Judd and McClelland, 1989).
.90

for Emotional Exhaustion
Perceptions of Emotional
Burnout
1. I feel emotionally
drained from my work.
2. I feel used up by the end
of the day.
3. I feel fatigued when I
get up in the morning
and have to face another
day on the job.
4. I feel burned out from
my job.
5. I feel frustrated by my
job.
6. I feel I am working too
hard on my job.
7. Working directly with
people puts too much
stress on me.
8. I feel like I am at the end
of my rope.
Emotional
exhaustion
Significant differences (F=13.12; df=1,794; P<.001)

in levels of emotional exhaustion were found
between police and staff for the comparison of
low:low support groups (group 4 contrasted to group
8). No significant differences for levels of emotional
the comparison of high:high support groups (group 1
contrasted to group 5). No significant differences in
levels of emotional exhaustion were found between
police and staff for the comparison of low supervisor
support in the presence of high coworker support
(group 3 contrasted to group 7). However,
significant differences were approached (F=3.51;
df=1,794; P=.06) in levels of emotional exhaustion
between police and staff for the comparison of high
supervisor support in the presence of low coworker
support (group 2 contrasted to group 6).
Table 6 - Means and Standard Deviations for
Emotional Exhaustion by Supervisor and
Coworker Support Interaction Groups
1
2
3
4
Supervisor
Group
High
High
Low
Low
5
6
7
8
Supervisor
Group
High
High
Low
Low
.88
.78
The correlations between supervisor, coworker

support, and emotional exhaustion are illustrated in
Table 5. Although, both support variables are
negatively correlated with emotional exhaustion, the
correlations between support variables are relatively
small.
Police Groups
CoMean
worker
Group
High
3.45
Low
3.48
High
3.17
Low
3.05
Staff Groups
Co-worker
Mean
Group
High
Low
High
Low
3.57
3.16
3.24
2.56
Std
1.14
1.10
.98
1.03
143
88
75
115
Std
1.06
1.16
1.06
.99
100
70
74
137
Tests of differences in levels of emotional exhaustion

between support variable interactions collapsing
police and staff groups
When the data were collapsed across the police and
staff groups, significant differences (F=14.25;
df=1,794; P<.001) were found in level of emotional
exhaustion between the high (combination of groups
1, 3, 5 and 7) compared to low levels (combination
of groups 2, 4, 6 and 8) of coworker support.
Significant differences (F=28.14; df=1,794; P<.001)
in level of emotional exhaustion were also found for
high (combination of groups 1, 2, 5 and 6) compared
to low (combination of groups 3, 4, 7, and 8) levels
of supervisor support.
There were significant differences (F=22.80;
df=1,794; P<.001) in level of emotional exhaustion
for the comparison of high levels of supervisor
support in the presence of low levels of coworker
support (combination of groups 2 and 6) contrasted
to low levels of both supervisor and coworker
support (combination of groups 4 and 8). Significant
differences (F=13.16; df=1,794; P<.001) in level of
emotional exhaustion were also found for the
comparison of high levels of coworker support in the
presence of low levels of supervisor support
(combination of groups 3 and 7) contrasted to low
levels of both coworker and supervisor support
(combination of groups 4 and 8).
Discussion
The findings of the study suggest that workplace
support is significantly related to emotional
exhaustion, with increased levels of support related
to reduced emotional exhaustion. However, the
quality of support related to reduced levels of
emotional exhaustion differed according to the
nature of work. When supervisor and coworker
support were high, there was no difference in levels
of emotional exhaustion between operational
(women police) and non-operational (female staff)
groups. However, when supervisor and coworker
support were low, women police reported higher
levels of emotional exhaustion compared to female
staff. Furthermore, even in the presence of high
supervisor support, when coworker support was low,
women police reported levels of emotional
exhaustion higher than female staff. When
supervisor support was low, in the presence of high
coworker support, there were no differences in
levels of emotional exhaustion between police and
staff. Taken together, the results suggest the
significant role that coworker support plays in
moderating levels of emotional exhaustion in
women police when compared to a female referent
group working in the same organisation.
The differences between the operational (women
police) compared to non-operational (female staff)
groups indicate an interaction between sources of

support and type of work in moderating levels of
emotional exhaustion. The women police appeared
to benefit more from high levels of coworker
support when compared to staff. This finding is
consistent with the nature of operational policing
which often entails involvement in violent
encounters and dealing with victims of violence
(Brown and Fielding, 1993). In such situations, the
support of proximal coworkers may be a more
effective moderator of levels of emotional
exhaustion than support from more distal
supervisors.
When data were collapsed across type of work,
emotional exhaustion was lower in both high
supervisor and high coworker support groups
compared to low supervisor and low coworker
support groups. However, the interaction between
sources of support and type of work was evidenced
by the greater impact of high coworker support on
emotional exhaustion in the operational (women
police) group. These results are consistent with
previous findings that male police officers share
work related concerns with coworkers rather than
civilians (Evans, Coman, Stanley, and Burrows,
1993). However, the present findings are
inconsistent with Etzions (1984) suggestion that for
women, support outside the workplace is more
salient than intra-organisational support. The present
findings do agree, however, with the research of
Greenglass et al. (1998), that demonstrated that in
women teachers coworker support led to lower
emotional exhaustion and was more important than
supervisor support.
The findings tend to indicate that coworker support
appears to be a moderator of emotional exhaustion
in women police, when compared to a female
referent group. The two groups compared in the
present study differed in terms of work roles, and
significant interactions between work roles, sources
of support, and emotional exhaustion were
identified. The different findings in the present
study, compared to earlier research, may well be due
to the use of a female referent group. Previous
authors have tended to used males as the referent
group, and have concluded that for men support in
the workplace moderated the relation of work stress
and burnout, whereas for women, life support
(outside the work place) was the significant
moderator (Etzion 1984; Alexander and Walker
(1994). In the present study, gender was held
constant and work role was varied. Within this
paradigm, coworker support was salient for women
police. The findings suggest an interaction between
work role and support, when gender is held constant,
that has been overlooked by previous research.
96
Conclusions
Previous research has suggested that workplace
support plays a significant role in mediating stress
factors in males, and that unlike males, females tend
to utilise sources of support external to the
workplace. The present study suggests that type of
work interacts with the effects of sources of support
on levels of emotional exhaustion. Depending on the
nature of work, coworker support may act as a more
powerful moderator of emotional exhaustion for
women than previous research suggests. It is
concluded that previous research comparing
differences in sources of support between men and
women has concentrated on examining the main
effects of sources of support, and has failed to
consider the interactive nature of work roles and
sources of support on emotional exhaustion. Further
research is necessary to examine the interactive
relationships between gender, type of work, sources
of support, and the components of burnout.
Acknowledgements
The authors appreciate the support and cooperation
of the Queensland Police Service in carrying out this
research. This support does not suggest that the
Queensland Police Service endorses the research or
its findings, and responsibility for any errors of
omission or commission rest solely with the authors.
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98
Learning as change and change as learning: Re-educating the HR

manager for the future
Finian Buckleya and Kathy Monks b
ab
Dublin City University Business School, Dublin, Ireland.
Abstract
The effectiveness of traditional management
education
programmes,
particularly
those
emanating from university business schools, has
been questioned (e.g. Willmott, 1994: Clarke, 1999).
Central to these critiques is the recognition that the
pedagogic models underpinning much of
contemporary management education are frequently
incongruent with the needs of learning managers
and the continuous change environment in which
they operate. This paper describes the
developmental outcomes of 45
HR managers
undertaking a specifically designed management
education programme premised on an adult learning
model (Knowles, 1990) and set in the context of
continuous organizational change (Weick and
Quinn, 1999). The learning experienced fostered the
development of meta-abilities (Pedler, 1994;
Butcher, 1997), expanded perspective taking and the
evolution of double-loop learning approaches to
real life organizational change.
Quantitative
evidence of these meta-developments are presented
and conclusions for management learning in rapid
change environments are offered.
Keywords:
Management learning; Change Management Metaabilities.
A review of the literature

Management Education
There have been many criticisms levelled against
management education and there is now a body of
research which questions many of its traditional
assumptions, although often from very different
standpoints (e.g. Alvesson and Wilmott, 1992;
Wilmott, 1994; Management Learning, 1996; French
and Grey, 1996; Burgoyne and Reynolds, 1997).
There is also a good deal of evidence that many
individuals and universities are experimenting with
new approaches to management education (e.g.
Thompson and McGivern, 1996; Stansfield, 1996;
Boyatzis, et al.,1995).
French and Grey (1996) attempt to identify, from the
many competing views, two broad perspectives on
management education. The first is the view that the
content and methods of management education may

need to be radically altered in order to provide
managers with the ability to work effectively in a
very complex and rapidly changing world. The
second is that management itself is an illusory
activity and therefore management education must
abandon any pretensions it may have had to provide
managers with management skills. They suggest
that both these perspectives, the first now quite
common, the second quite rare, arise within the
context of the assumption that management
education stands in a more or less functional
relationship to management practice (1996:3). But
that this assumption can be, and has been subjected
to critical scrutiny (Wilmott, 1994).
If the first, more common perspective is accepted,
then fundamental questions are raised about how to
alter management education. Again there are many
differing ideas on how this might be accomplished
and these range from individually based attempts at
the level of a course to more major programme level
actions (Stansfield, 1996; Boyatzis et al., 1995).
Central to debates on management education is the
concept of how managers learn.
The Learning Manager

Traditional models of learning (behaviourist and
cognitive) have focused on how the learner accrues
the particular knowledge or information sets
(typically declarative knowledge) and from this
emanates a set of behavioural actions or skills which
are representative of the learning which has taken
place. In fact, best teaching practice has led to the
objective definition of discreet learning outcomes
and course syllabi outline an incremental and
sequenced progression toward the achievement of
learning objectives (e.g. Schuell, 1986: Schwarz,
1971). This approach to learning appears to be most
successful when the knowledge/skills to be learned
are self-contained, proximal and have direct and
unambiguous points of application.
The area of management education is a field in
which successful learning transfer has frequently
been questioned. Mintzberg (1989) identified a good
part of the traditional MBA programme as being
devoted to the training of specific techniques, that
are free from context and he suggests that there is

little evidence that the skills and abilities developed
have any real or actual translation in practice. Clarke
(1999) reviews the evidence from several large
studies of management education programmes and
concludes that the effectiveness of these
programmes is highly questionable. Among the
reasons posited for their ineffectiveness is that many
programmes deliver packaged learning which
transfers well to areas of low complexity but the
reality of most contemporary organizations is that
they are highly complex and sophisticated
environments which do not respond to simplistic or
stylised solutions (Willmott, 1994).
If we are to conceptualise modern organizational
functioning as existing in an environment of
continuous change, then our profile of the successful
contemporary manager would necessarily include a
crucial
spread
of
competencies
(see,
Antonacopoulou, and Fitzgerald, 1996). These
would include the ability to be open to change, to
improvise, innovate and to retranslate organizational
experiences (Moorman and Miner, 1998). Some
writers suggest that these crucial competencies are
those that in some way drive the other competencies.
For example, Butcher et al (1997) refer to metaabilities while Pedler et al (1994) use the term
meta-qualities. These are the personal, acquired
abilities which underpin and determine how and
when knowledge and skills will be used (Butcher
et al., 1997, p.11) and the situation-specific skills
needed in particular circumstances (Pedler et al.,
1994, p. 24). Pedler identifies these as creativity,
mental agility, balanced learning habits and selfknowledge, while Butcher suggests that they include
cognitive
skills,
self-knowledge,
emotional
resilience and personal drive.
Aram and Noble (1999) extend this thinking when
they state that learning is not purely a rational,
intellectual process, but is a complex and
sophisticated process which is dependent and
participative, and that it is also a social and
emotional experience. Their view is that
contemporary management education needs to take
account of the complexity of the environment in
which managers find themselves functioning and
any personal evolution in learning must involve
reflection and participative sensemaking with other
actors in that situation. In effect, they identify a need
to progress to meta-level thinking rather than
perceiving organizational change as a single-loop
sequence. Clarke (1999) also calls for management
educators to recognise the importance of developing
these higher order meta-abilities in managers rather
than relying on the traditional staid packages of
knowledge and skills delivered by many courses
which many managers find do not transfer to the
workplace.
This meta-level approach is supported by the work

of Lessem and Palsule (1999) in their evocation of
the knowledge creating ecology approach to
contemporary management learning. This approach
stresses that there is a necessary evolution from
individually based management learning and
knowledge acquisition toward a knowledge creating
ecology.
Adult learning and management learning
This perspective is reflective of the work of
Knowles (1990) in his expansion of his theory of
Adult Learning. He indicates that adult learners
possess
significantly
different
needs
and
requirements to child or adolescent learners. Among
the differences that Knowles (1990: 57) identifies as
significant are:
Adult learners need to know why they need to

learn something new before they engage with it;
Adult learners self-conceptions differ from

younger students in that most adults see
themselves as responsible for their own
decisions, thus self-directed learning involves a
decision for self-development;
Adult learners bring a vast amount of life

experience to any new learning environment,
this experience needs to be seen as a resource
and needs to be incorporated into the learning
process;
Adult learners tend to have a life-centred

approach to learning rather than a subject
oriented approach;
Adult motivation differs from younger students

in that it has a strong applied aspect, where selfconcept/self-efficacy issues are overcome with
the a strong real-life orientation.
Climate
Philosophy
Pedagogic model
Authority oriented,
Formal,
Competitive
Newtonian, Linear,
One right answer,
Change
Agent
Teacher as Expert
Structure
Formal, Subject
centred, Directed
and assessed by
teacher
Communication
One-way,
Restricted,
Authority driven
Andragogic model
Mutuality, Respectful
Collaborative,
Informal
Confucian-Complexity
Theory, Edge of
chaos, No one right
answer
Teacher as
collaborator, Fellowlearner, Facilitator
Informal, Learners
experience as
resource, Mutual
diagnosis, Mutual
evaluation
Open-flow,
Collaborative,
Trusting, Empathic
Figure 1 Andragogic versus traditional Pedagogic

approach to adult learning.
Knowles development of what he refers to as an
Andragogical Model of learning, contrasts
100
significantly with the traditional Pedagogical model.

Andragogy differs from pedagogy in that it
emphasises self-directed inquiry in a collaborative
learning environment with a problem-centred
approach utilising experiential techniques.
Figure 1 attempts to summarise Knowles
contrasting of the andragogic approach to learning
with the traditional pedagogic approach. The
distinctions are further accented when the
differences reviewed under some of the central
concepts in any learning environment, such as
philosophy, change agent, learning climate,
communication style, and structure of the learning
experience. The andragogic approach to learning
appears to offer a more grounded yet holistic model
of development which has very relevant applications
for professional and management learning.
However, to be of real value such a model needs to
fit to more than just the learning manager but must
be sympathetic to the environment in which learning
takes place, that is the organization.
Towards a model of (adult) management

learning in an organizational change
context
Lawler (1992) refers to modern decentralised
organizations with flat structures and fluid
processes, as requiring more mature and developed
employees and managers. He identifies these
complex firms as high-involvement organizations
which, by definition, require high-involvement
managers to guide their functioning. Stacey (1996)
expands upon the complexity of the adaptive
strategies required by contemporary managers
working in such high-involvement organizations.
These organizations are characterised by lower
levels of certainty and agreement than traditional
organizations. Weick and Quinn (1999) recently
suggested that historically, firms faced episodic
change prompted by specific internal or external
factors. This form of change differs from that
experienced by many contemporary organizations
facing an on-going plethora of variations and
retranslations which appear to supersede the
apparatus of planned change. They identify these
organizations as experiencing continuous change, or
experiencing a series of fast mini episodes of
change (1999: 377).
Aram and Nobles (1999) prescription for
management learning in the fast changing
contemporary organization, sees effective managers

as needing to move from traditional knowledge
acquisition and abstraction models of learning
toward experiential learning, which is self managed
and developmental in direction. Lengnick-Hall and
Sanders (1997) build a case for management
learning and education to focus on the selfdevelopment of learners in order to foster the
necessary self-direction, empowerment, confidence
and sense of personal responsibility to function
effectively in such high-involvement organizations
(see, also Senge et al., 1994). There is a growing
acceptance that this form of self-development does
not occur in isolation but is inherently linked to
changes occurring in the learners immediate
environment. Sternberg, Wagner, Williams and
Horvath (1995) highlight this when speaking about
the development of tacit knowledge in the workplace
and others such as Lave and Wenger (1990) stress
the social aspect of such learning describing the
creation of communities-of-practice where
participants share this tacit knowledge through
developmental dialogue.
Cullen (1999) further highlights the importance of a
manager learning and developing within a group
context as this leads to group development and
ultimately, organizational development and learning.
In this way, managerial learning and organizational
development
and
change/learning
become
inextricably linked.
Climate
Philosophy
Change
Agent
Structure
Communic
-ation
Static Organization
Continuous Change
Organization
Task centred,
Individual, Formal,
Suspicious
Flexible,
Broad roles,
High levels of
Responsibility,
Functional collaboration
Empowerment,
Learning and
Development oriented,
Open system
Sense-maker,
Schema sharer
Flexible, people-centred,
Decisions by problemsolving,
Personal development.
Multi-directional,
Open system,
Democracy,
Mutual sensemaking.
Management
control,
Low risk,
Self-Sufficiency
Prime mover
creating change
Formal, Rigid,
Hierarchical,
Defined Roles
Uni-directional,
Power inequity,
Repression
Figure 2 Typical Dynamics of Static versus

Continuous Change organizations.
Figure 2 maps the differences,

in a number of key areas,
between relatively static and
continuous
change
organizations.
Pedagogic
model
Climate
Authority
oriented,
Formal,
Compete
Static
Organization
Task
centered,
Individual,
Formal,
Suspicious
Andragogic
model
Mutuality,
Respectful
Collaborative
Informal
Continuous
Change
Organization
Flexible,
Broad roles,
High levels of
ResponsibilitFunc
tional
Collaboration
Empowered,
Learning and
Development
oriented,
Open system
Sense-maker,
Schema sharer
The message from Figure 1 is

that realistic adult learning
Newtonian
Management
Confucian
Philosophy
requires
mutuality
and
Linear,
control,
Complexity
collaboration
in
an
One right
Low risk,
Theory, Edge of
environment
where
answer
Selfchaos, No one
Sufficiency
right answer
experience is the tool for
Teacher as
Prime mover
Teacher as
Change
problem setting. This has
Expert
creating
collaborator,
Agent
resonance with features of
change
Fellow-learner,
Figure 2 where change
Facilitator
Formal, Subject
Formal,
Informal, Learners Flexible,
oriented organisations require
Structure
centered
Rigid,
experience as
People-centered,
knowledge sharing in a
Directed &
Hierarchical
resource, Mutual
Decisions
collaborative climate with an
assessed by
Defined
diagnosis &
by problememphasis on development.
teacher
Roles
evaluation
solving,
This suggests a number of
Oneway,
UniOpen-flow,
Multi-directional,
linkages between managerial CommunAuthority
directional,
Collaborative
Open system,
ication
learning and organisational
driven
Power
Trusting,
Democracy
change and development (see
inequity,
Empathic
Repression
Figure
3).
The
conceptualisation
of
the
Figure 3 Andragogic-Continuous Change model fit.
linkages between these two
areas is based on the work of Knowles (1990),
1997) facilitates a shifting of perspectives and
enables the reframing of organizational scenarios.
Stacey (1996) and Weick and Quinn (1999). From
the work of Knowles comes the comparison of
pedagogical and andragogical approaches to
It is the role of management education to ensure that
managers can become involved in such a sense
learning; Stacey has applied complexity theory to
making process and provide the opportunity for
organizations while Weick and Quinns (1999)
compare episodic and continuous organizational
applied re-evaluation and experimentation.
change.
In summary, if management education is to help
The juxtaposition of the two contrasting learning
managers to learn and develop effectively, then the
focus of learning must begin with the development
perspectives and the differing organizational models
of the meta-abilities of self-awareness and selfprovide an insight into the evolution of
contemporary managers and their learning needs.
development. Such self-development must begin
with an understanding of how the individuals own
This suggests that modern managers require
learning takes place (metacognition), before moving
substantially different competencies from their
predecessors. As the concepts under the Andragogic
to review work based issues and problems as a
learning template (situative learning) in a group
and Continuous Change Organization headings
environment (social and community-of practice
demonstrate, managers need to approach learning
and management from a more developmental and
model).
supportive disposition. This contrasts with the
controlling orientation of the traditional Static
Putting theory into practice
Organization and the Pedagogic perspective on
The Design and Delivery of the Course
learning.
Evidence from a survey of members of Institute of
Personnel and Development (IPD) Ireland in 1996,
The evolution of a more developmental style is
supported the claims in contemporary Human
premised on managers first becoming aware of their
Resource (HR) literature which suggested that the
reflexive or current dominant style and thereby
role of the traditional HR professional in Ireland was
understanding that differing approaches are possible.
changing radically. 50% of survey respondents
The building block is self-awareness, from which
indicated clearly, that they required re-education
alternative perspectives can be discussed, shared and
which would equip them with the skills and
experimented with.
competencies to manage the change facing their
organizations.
In effect, the development of the meta-level abilities
already described (Pedler et al., 1994; Butcher et al.,
102
The authors and colleagues set about developing a

postgraduate programme to respond to these needs.
It was decided, to adopt an andragogic model and to
focus on self-development as the driver of change
and development. These themes provided both a
foundation and a coherent philosophy that
permeated the ways in which learning was to be
experienced on the programme. Relevant modules
were developed by a team of academics and
practitioners from a wide range of backgrounds.
Lecturers focused on the andragogic model
(Knowles, 1990) and operated in a problemposing rather than banking model (Freire, 1972).
Lecturers began with the managers experience and
expertise and saw dialogue rather than teaching as
the most effective vehicle for learning. Such a
combination of factors challenged managers to
reconsider their traditional approaches to problems
and issues. In many cases the modules provided
managers with a new language and, as a result, a
new way of reframing a problem or issue within
their work organization. The first year of the two
year part-time programme, is in essence, an
unlearning (Hedberg, 1981) stage.
Assessment of learning on the programme was
developed to reflect Knowles model of adult
learning, thus no examinations were utilised. All
assessments were grounded on real life
organizational scenarios and the majority required
collaborative group input and presentation. This
allowed a clearer focus on learning dynamics rather
than the content alone being central (Ramsden,
1986).
Participants
The new programme was aimed directly at
practising HR managers in Ireland. To date, 45
managers have completed the programme. The
managers were employed in a wide variety of public,
private and third sector organizations with a
minimum of five years experience. The age range of
the cohort was between 28 and 50 years.
Tools and methods employed to develop
Meta-abilities
Table I identifies some of the tools employed during
the course of the programme to develop the metaabilities, such as learning to learn, self-reflection and
perspective analysis (Butcher, 1997; Pedler, 1994)
which have been identified as critical to the process
of the evolution of self-awareness and development.
Table 1 Tools to develop Meta-abilities

Tool
Personal Learning
Journal (Learning
Log)
Learning styles
development (Honey
and Mumford, 1992)
Innovation
KAI -Kirton (1989)
1.Teamworking two
residential weekends
2. Team projects
3. Team reviews
Belbin (19811995)
4.Team Development
Diary
Managers SelfDevelopment (Pedler
et al., 1994)
Professional Styles
Questionnaire
(Williams, 1999)
Systems thinking
(Senge, 1994),
Creative thinking (de
Bono, 1992)
Meta-abilities developed
Reflective capacity; Understanding
of emotions in individual and team
activities; Understanding of self.
Understanding of learning style and
applicability in different situations;
Learning-to-learn; Self-knowledge.
An understanding of creativity;
Innovation, Self-knowledge.
Insights into own behaviour and
others understanding of that
behaviour; Experience and
understanding of team dynamics;
Charting team development and
evolution;
Self Awareness and selfknowledge.
Self-knowledge; Self development
Balanced learning habits
Self-knowledge at work,
Developmental models
Mental agility;
Creativity,
Perspective shifting,
Adaptive decision-making.
Measurement of Meta-ablities
Programme participants were asked to complete
Williams (1999) Professional Style Questionnaire
(PSQ) which seeks to identify managers dominant
professional style under the headings identified in
Table 2. Participants were asked to complete the
questionnaire identifying their style before
commencing on the programme and again at the
completion of the programme. Based on the
supporting work of Aram and Noble (1999), Butcher
et al, (1997) and Pedler et al.,(1994) the change to a
developmental style of managing was perceived as
being reflective of a significant evolution of metaabilities as it requires a paradigmatic shift in
management orientation.
Williams questionnaire is a forced choice
questionnaire where participants must allocate 3
points between a pair of behaviours (one
developmental, one controlling) giving the highest
score to the behaviour which best reflects their own
work behaviour. The total between the two linked
statements must be 3.
Many of the tools employed are chosen as they also

have direct relevance to managers working roles
and the resulting meta-cognitive development
releases participants to approach change in their
organizations with a more eclectic portfolio of
knowledge, skills and abilities.
Controlling Style behaviours over the same period.

Table 2 Professional Style development
Behaviours
Controlling Styles
iGiving direction and
seeking control
iActing in a unilateral,
single-minded, assertive way
iActing in a careful,
cautious way, aimed at
securing stability and
certainty
iPreferring a structured
environment and disciplined
approach to work
iBehaving in ways which
reflect consistency and a
concern for doing things
right
iPreferring to operate
largely as a solo player with
space, privacy and freedom
from interruption
It is not suggested that a controlling management

style is without virtue, but as indicated earlier,
managers in high-involvement and continuous
change organizations require a broader repertoire of
behaviours to cope and adapt in that diverse climate
(see, Aram and Noble, 1999).
Developmental Styles
iCommunicating
encouragement and/or
reassurance
iBeing participative and
involving in relationships
with others
iShowing a need to change,
challenge, risk and
excitement
While the mean scores indicated in Table 3 display

the positive increments in developmental style
(which necessarily reflect a decrease in use of
controlling style although not elimination), the
statistical significance of this evolution is displayed
in Table 4 below.
iPreferring conditions of
freedom and scope for
personal choice
iOperating in a adaptable,
responsive and flexible and
opportunistic way
These results indicate that while there was positive

development in all the developmental areas, this
change was statistically significant across four of the
dimensions. The dimensions in which change was
most evident were the Change-Risk and FreedomChoice dimensions.
iPreferring the noise,

buzzand company of a team
or work group
Table 4 Wilcoxon Signed Ranks Test of

Difference in Developmental Style
Williams identifies that each style (developmental

versus controlling) has its place in modern
management but it is clear that in organizations
facing complex and often unstructured change, a
developmental
style
fosters
participative
organizational
learning.
In
essence
the
developmental style is reflective of a more advanced
meta-ability approach to framing organisational
issues and processes.
1. Communicating
- Encouraging
2. Involving
-Responsive
3. Change-Risk
4. Freedom-Choice
5. Adaptive
-Opportunistic
6. Team approach
Z - Value
Significance
-1.6
NS
-1.6
-5.5
-4.6
P<.06 NS
P<. 001
P< .001
-3.0
-2.8
P<. 05
P < .05
NS = Not Significant
Results
Table 3 indicates clearly that participants
demonstrated a clear evolution in terms of
professional style, increasing their Developmental
Styles significantly over the period of the
programme. This gain in developmental style
orientation is mirrored by a decline in use of
The data indicates that participants have begun to

change their approach to change and now see change
as a challenge and are open to the risks involved and
are excited by the process. Also disappearing is their
old reliance on a highly structured organisational
environment, being replaced by a freer approach to
change and more organic and diverse
Table 3 Mean scores of participants on the two PSQ Dimensions involvement of employees. Rigid
before and after programme completion.
systems and approaches are replaced
by
responsive
and
flexible
Developmental
Controlling
Style
Style
approaches
to
problems.
Opportunities are seized rather than
Before
After
Before
After
feared.
Communication
Encouraging
InvolvingResponsive
16.5
17.3
DirectiveOrganising
Single minded
Assertive
13.5
12.7
16.7
18.1
13.3
11.9
Need to
Change, Risk,
Challenge
12.1
16.3
Careful, Security
17.9
13.7
Freedom &
Choice
15.2
18.2
Structure, Discipline
14.8
11.8
Adaptive,
Opportunistic
16.7
18.3
Consistency, right
way
15.7
14.2
Team approach
15.6
17.5
Solo player
14.4
12.5
Discussion and Conclusion

The programme does appear to have
had a profound influence on the
adoption of a developmental style of
managing of the 45 managers
participating. It is not possible from
this particular study to ascertain
whether one element of the
programme design was more
valuable than any other in producing
104
these outcomes. This short-coming indicates the

difficulty of measuring concepts such as selfawareness and self-development. As many
participants embark on their learning journey from
very different starting points making quantitative
assessment of change quite problematic. Future
research should also focus on measuring work
colleagues perception of the new styles and
behaviours these managers are exhibiting in their
work settings.
In the model we presented in Figure 3 at the
beginning of this paper, we identified the linkages
between an andragogic model of learning and the
continuous change organization. The fact that
managers in contemporary organizations require
fundamentally different types of knowledge, skills
and abilities from their predecessors was
highlighted. The research also suggests that there is
value to be gained from linking what appear to be
very disparate literatures in an attempt to understand
management learning. While management learning
appears to be gathering momentum as a discipline
area in its own right (e.g. Burgoyne and Reynolds,
1997), there may be dangers in losing sight of the
fact that managers are still fundamentally adult
learners who must survive within an organisational
context.
The study is limited as, to date, only 45 participants
have completed the programme. Our preliminary
results indicate that management education - the
process of change through learning - may be a very
effective vehicle in equipping HR managers to deal
with change. However, we suggest that the process
of education has to be very carefully managed and
that traditional approaches which simply provide HR
managers with more HRM knowledge through
examination based programmes may no longer be a
relevant delivery mode nor an effective vehicle for
management learning.
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106
Push and pull factors influencing IT staff turnover

Artemis Changa, Prashant Bordia b and Stacy Ridgea
a
School of Management, Queensland University of Technology, Australia
b
School of Psychology, University of Queensland
Abstract
High levels of Information Technology (IT) staff
turnover incurs substantial costs to organisations in
direct expenditures such as advertising, recruiting,
and training; as well as hidden costs such as low
morale, disruption of work practices and loss of
corporate memory. Thus it is important to
understand factors that lead to employee turnover in
the IT industry. Thirty-six IT employees from private
and government organisations were interviewed to
understand the determinants of employee turnover.
Results of the current study indicated that employee
turnover in the IT industry is influenced by
dissatisfactory HR practices which push
employees out of their organisation and attractive
job alternatives which pull employees away from
their organisation. Factors associated with the
individual career development and job satisfaction
were most important determinants of employee
turnover. Work environment and job characteristics
play important secondary roles. Implications of the
findings are discussed.
Keywords:
Employee turnover; Information Technology
Introduction
The recent literature on voluntary employee turnover
has moved in the direction of developing alternative
models (e.g. Lee, Mitchell, Holtom McDaniel &
Hill, 1999). Important antecedents to voluntary
turnover include personal factors, organizational
factors, job characteristics, work environment
factors and alternative job opportunities. For
example, Lee and Maurer (1999) found evidence for
the inclusion of personal factors in models of
turnover. In addition, organizational factors, such as
training and development, and clear career path are
also determinants of turnover (Granrose &
Portwood, 1987). Job characteristics (e.g. Hackman
and Oldhams (1975) model) also have a role in
determining employee turnover (Singh, 1998) as
well as satisfaction with pay (Lum, Kervin, Clark,
Reid, Sirola, 1998). Work environment factors (e.g.
teamwork expectations) are another antecedent to
voluntary turnover (Dolfi & Fraser, 1999). Finally,
labour market perception, that is the availability of
an alternative job, is another factor to be considered

in a voluntary turnover model (Gerhart, 1990).
The IT industry has demonstrated high levels of staff
turnover in recent years, as high as 40% for some
organisations (Hein, 1998). This excessive level of
staff turnover incurs substantial costs to
organisations in direct expenditures such as
advertising, recruiting, and training; as well as
hidden costs such as low morale, disruption of work
practices and loss of corporate me mory (Lee, 1996).
These costs have been estimated at over 120% of a
years pay when a good IT employee leaves (Vitalari
& Dell, 1998). Furthermore, high turnover of IT
staff may cause a company to lose its competitive
advantage because technologies that are unique to
the company can be introduced to other competitors
when IT staff leave to join organisations. Many
organisations have been caught by surprise when
major projects are threatened by the exit of key IT
employees. In addition, promising salaries above the
market rate may not be enough to attract and retain
staff (Vitalari and Dell, 1998). IT employees may
also require flexible working arrangements,
recognition and nonmonetory benefits.
IT specialists are in demand and will continue to be
so in the new millennium (Igbaria, Meredith and
Smith, 1994). It is important for organisations to
retain experienced IT employees who have sound
knowledge of the companys products. Thus, the
design of effective strategies for managing and
retaining IT staff is an issue requiring urgent
attention. Towards this goal, organis ations must
gain insight into the pay and working conditions,
which attract and retain skilled IT professionals.
IT staff form a distinct occupational group as they
have a higher need for learning, self-development
and challenge and a lower need for social
interaction. IT professionals often have more
allegiance to their profession rather than to the
organisation (Hushion, 1992). Therefore, the factors
that are related to IT staff turnover and pay
satisfaction could be different from those for staff in
other areas of the organisation. These factors may
include lack of career progression, unchallenging
work, dissatisfaction with pay, and/or an
incompatible supervisor (Fafard, 1998;

Alexa nder, 1998).
PUSH
- Disatisfaction with current condition
PERSONAL (e.g. partner transfer)
ORGANISATIONAL
Organisational restructure
Career path
Training & Development
Methodology
Participants
Thirty-six participants from private and
public organisations were interviewed in
this study. Participants age ranged from 22
to 52. Thirty-one (81%) of participants had
held previous positions with other
organisations whereas 4 (16%) had not held
previous positions. All had completed or
were currently involved in tertiary studies.
JOB CHARACTERISTICS
Level of challenge
Task variety
Work load
Pay
Recognition
Level of stress
Job Security (permanent/part-time)
Autonomy
PULL
-Attractive alternatives
EASE OF FINDING A NEW JOB
HEADHUNTED
ORGANIZATIONAL
Career path
JOB CHARACTERISTICS
Task variety
Pay
Level of challenge
Job Security
Flexible time
Autonomy
WORK ENVIRONMENT
Office politics
Team environment
Leadership
Flexible time
searching
for
alternative
jobs
Procedure
The research team conducted one-on-one
thinking about quitting
semi structured interviews. Each interview
lasted an average of 30 minutes and was
audiotaped. Participants were briefed about
the purpose of the interviews and were
provided with an informed consent form to
sign if they agreed to participate.
Demographic data was obtained initially
decision to quit
and then open-ended questions about
employee turnover were asked. Participants
were asked to reflect on the process
Figure 1 The Push and Pull Factors that Influences
through which they left their previous
Employee Turnover
position and to provide a detailed
categories: (a) push factors and (b) pull factors1.
description of this process from the events which
The push factors refer to an employees
triggered the thought of leaving to the exit of the
dissatisfaction with current work condition. These
organisation. Participants that had not held previous
factors push the employee away from the current
jobs were asked to think about why they were in
organisation. Push factors include; personal and
their current organisation and what factors would
organis ational factors, job characteristics, and
contribute to the decision to leaving their current
working conditions (see below for an anecdotal
position.
discussion). Pull factors refer to alternative working
conditions that attract the employee to move to a
Results and Discussion
new organisation. These factors pull the
Data Analysis
employees away from the current organisation. Pull
The audiotaped interviews were summarised as
factors include; ease of finding a new job, being
written transcripts. Common themes that emerged
headhunted, organisational factors and job
from the transcripts were extracted. Four researchers
characteristics (such as pay). It is important to note
coded the transcripts using a theoretical framework
that pull factors work through the employees belief
based on the themes extracted from the interviews
that things were going to get better once they move
and the current turnover literature. Consensus was
to a new working environment, it does not necessary
achieved after discussion in all cases. Figure 1
reflect the reality of the new organisation.
illustrates the theoretical framework developed
Furthermore, employees may leave the organisation
together with the factors the participants reported to
on the belief that they will find another organisation
have influenced their decision to quit. Note that
with desirable working conditions without actually
Factors in bold were reported by more than 1/3 of
having found the right organis ation. Table 2 lists
the employees interviewed. Only one or two
sample statements for the groups of factors.
participants reported faded Factors. Table 1
highlights the frequencies for the Pull and Push
factors.
Factors that influence the participants decision to
leave an organisation were classified into two broad
1 Lee and Mitchell (1994) used the term pull and push theories to refer to concepts that
are external and internal to an employee. Lee and Mitchell suggested that a pull theory
have been studied primarily by market-oriented researchers focused on job alternatives
and how such alternatives surface. On the other hand, a push perpective is adopted
primarily by psychologically oriented researchers, who focused on jot-related
perceptions and attitudes (p.1994). In this study, we used the term push and pull to
refer to forces that are internal and external to an organisation rather than to an
employee.
108
Table 1 Sample Statements for the Groups of

Factors
Factor
PUSH
Personal
Organisational
Organisational Restructure
Career Path
Job Characteristics
Level of Challenge
Work Load
Task Variety
Recognition
Level of Stress
Autonomy
Pay
Job Security
Work Environment
Office Politics
Team Environment
Organisation Loses Funding
Leadership
Flexible Time
PULL
Ease of Finding A new Job
Headhunted
Organisational
Career Path
Job Characteristics
Task Variety
Pay
Level of Challenge
Job Security
Flexible Time
Autonomy
Frequency
11
11
8
3
9
5
4
4
3
2
2
2
3
2
2
1
1
adjustment problems, low productivity, low morale,

and might finally lead to a decision to leave the
organis ation.
Table 2 Sample Statements for the Groups of
Factors
Factor
Push
Personal
Sample Statement
Organisational
I was forced to leave my previous job, I

received a redundancy package.
A clear career path is important to me.
My present job is providing me with
training and experience.
Job Characteristics
Low pay, low responsibility, not

technically stimulating position.
Got burnt out from the long hours of work
little breaks, sleeping at work overnight.
The job offered low autonomy and
control, and little recognition.
Work
Environment
Transfer to another department was

shrouded with rumours questioning my
ability . lack of communication
regarding this issues.
I left job because it required a lot of travel
and I spent too much time away from my
young family.
I disliked dealing with peoples problems
that are trivial.
8
2
9
8
9
8
7
5
5
4
Push Factors
Personal
Personal factors were one of the two most frequently
reported reasons for leaving an organisation. These
factors bear little or no reflection on the organisation
or work itself. Reasons given include wanting to
relocate for a lifestyle or career change,
transfer/partner transfer and health issues.
Organisational
Organisational restructuring was the other
commonly reported reason for leaving an
organisation. Many participants reported being
forced to leave the organisation after their positions
were made redundant in the process of
organisational restructuring. This type of
involuntary turnover was of less interest to the
project because employees in most cases did not
initiate the turnover processes.
However, it should be noted that survivors of
restructuring are likely to face changes. Allen,
Freeman, Reizenstein, Richard, & Rentz, (1995)
have reported these changes to include; alterations in
job responsibilities, modified reporting relationships,
new co-workers and other environmental
differences, such as new policies or procedures.
Also, the outcome of restructuring may result in
Pull
Attractive
Job
Alternative
Ease of Finding A
new Job
Being Headhunted
My partner was given an opportunity for

an overseas transfer.
I wanted to get away from Winter.
I left my job because I changed my career.
A friend offered me a job which was

interesting.
I met someone from my previous job who
worked here, he gave me some contacts.
I was offered a job in Singapore
I do attend the interview on the off
chance, the job is really good, but mainly
to see whats going on in the industry.
Organisational
Best thing about the job is the flexibility

in hours worked and days off.
I chose this job because it was the career
direction I want to go in.
I like to be at the front of latest
technology to see whats going on.
Job Characteristics
I was able to move between different

sections and acquire a diverse range of
skills
The nature of the work was appealing, I
got to utilise both technical and client
skills.
The work itself was interesting.
Career path was another frequently reported factor

that contributed to participants decision to quit their
last job. This finding was also identified by other
researchers in the area as a crucial strategy in
employee retention (Vitalari and Dell, 1998; Cone,
1998). Many participants reported leaving their last
position because of the lack of successful career path
in their organisations. In addition to career path,
some participants also reported leaving their last
position because of the lack of training and

development opportunities. Together these two
factors showed that an organisations career
development plan, or the lack of it, was an important
contributor to employee turnover.
ensuring that employees are satisfied with their

current work situation and by creating an open
environment where employees feel comfortable to
discuss job offers from other organisations with
management.
Job Characteristics
In addition to HR practices, employees decision to
leave a job was also influenced by the nature of their
work. Level of challenge was the third most
frequently reported factor (being reported by one
third of the respondents) that led to employees
quitting previous positions. Other job characteristics
that contributed to employee turnover included; lack
of task variety, heavy work load, insufficient pay,
lack of recognition of achievements, high level of
stress incurred on the job, lack of job security as
well as inadequate autonomy.
Organisational
Organisational factors that tend to pull the
participants towards other jobs mirrored the
organisational push factors. These pull factors
include clear career paths, better pay, higher job
security, more flexible work hours, and extensive
training and development.
Work Environment
The participants also recognised the influence of the
work environment upon their intentions to quit.
These include office politics, unfriendly team
environment, problematic leadership, lack of flexible
time and unsuitability of the work for them.
Co mpared with the other push factors, work
conditions were less frequently reported as
contributing to employee turnover.
Pull Factors
Pull factors mirrored the push factors to a large
extent. In many cases a decision to quit was made
either due to an offer of a better alternative or a
belief that things will get better after moving to a
new work environment. It should be noted that most
pull factors did not appear until the participants
started to feel dissatisfied with their current situation
and thus were looking for alternative work
environments.
Ease of Finding a New Job and Being Headhunted
The ease of finding another job was one of the most
frequently reported pull factors that influenced
participants intentions to leave. This factor worked
as a catalyst to accelerate the participants decision
to leave the organisation when they were unhappy
with the current situation. Occasionally, participants
also left the organisation because they were
headhunted and offered more attractive job
opportunities by recruitment agencies and other
organisations that were aware of their skills and
expertise.
These two factors reflect the nature of the IT
industry and demonstrate the unfulfilled gap
between demand and supply of skilled IT
professionals.
Organisations
are
constantly
competing for skilled IT professionals. The only
way an organisation can control high turnover is by
Job Characteristics
Job Characteristics that tend to pull participants
towards other jobs also mirrored the job
characteristic push factors. These pull factors
include higher task variety, higher level of challenge
and a higher level of autonomy.
Conclusion
The push and pull factors together demonstrated the
importance of strategic integration of Human
Resource practices with the IT department. IT
professionals understand that they are constantly in
demand in todays job market. Headhunters
constantly remind skilled employees in organisations
about their employability. Thus, organisations that
do not have effective HR practices will not be able
to compete with other organis ations in recruiting and
retaining skilled IT professionals.
It is also
important to note that while pay is an important
contributor to an employees decision to stay or
leave an organisation, it is often not the most
important factor. This finding agrees with Cones
(1998) proposal that simply paying people more is
not enough to retain the IT specialists loyalty.
To increase employee retention rate in the IT sector,
organisations need to focus on improving HR
practises, especially in the development of a clear
career plan. In addition, turnover rate can also be
kept low by offering employees training and
development opportunities, in-house seminars aimed
at fostering personal growth (Pepe, 1998).
In addition to the development of career plans,
organizations need to pay special attention to the
management of organizational change processes,
given that organizational change is the most
frequently reported reason for employee turnover.
Constant changes are characteristic of todays
organizations and our findings indicated the
importance of the change management processes.
Various change management techniques, such as
running focus groups, to understand employees
concerns and establishing good communication
110
systems to inform employees of up coming changes

can be effective.
Characteristics of the specific jobs are also crucial to
employee retention. IT positions need to be designed
or redesigned to ensure they provide employees with
enough challenge, task variety and autonomy. IT
professionals have high growth need. Work should
provide them with enough challenge and skill
development opportunities. On the other hand,
skilled IT professionals need to be respected for
their expertise. It is important that their opinions are
valued when managers are making technical
decision. Furthermore, they need to be given enough
autonomy to make decisions that are important to
effective performance of their everyday work. Other
job characteristics such as pay, work load, level of
stress are also important factors to consider to
reduce turnover.
Acknowledgments
We would like to thank Isabel Mason, Peter Tan, Liz
Hobman, and Bernd Irmer for their help at various
stages of this research project.
References
Alexander, S. (1998) Managing IT turnover,
Infoworld, Vol. 20 No. 27, pp. 85-86.
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Computer Reseller News, Oct
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environment, Paper presented at the Annual
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Matching individual career plans and
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Management Journal, Vol. 30, pp. 699-720.
Hackman, J. R. and Oldham, G. R. (1975)
Development of the job diagnostic survey,
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Hein. (1998) Programming loyalty, Incentive, Vol.
172 No. 2, pp. 31-34.
Husion., A. (1992) Fighting turnover, Computing
Canada, Vol. 18 No. 11, p. 11.
Igbaria, M., Meredith, G., and Smith, D.C. (1994)
Predictors of intention of IS professionals to
stay with the organisation in South Africa,
Information and Management, Vol. 26, pp. 45256.
Lee, P.C. (1996) An Investigation of the Turnover
Intentions of Information Systems Staff in
Singapore,
University
of
Queensland,
unpublished Thesis.
Lee, T. W. and Maurer, S. D. (1999) The effects of
fa mily
structure
on
organizational
commitment, in tention to leave and voluntary
turnover, Journal of Management Issues, Vol.
11, pp. 493-513.
Lee, T. W., Mitchell, T. R., Holtom, B. C.,
McDaniel, L. S. and Hill, J. W. (1999) The
Unfolding model of voluntary turnover: a
replication and extension, Academy of
Management Journal, Vol. 42, pp. 450-462.
Lum, L., Kervin, J., Clark, K., Reid, F. and Sirola,
W. (1998) Explaining nursing turnover intent:
job
satisfaction,
pay
satisfaction
or
organizational commit ment, Journal of
Organizational Behavior, Vol. 19, pp. 305-320.
Pepe, M. (1998) High tech aims for low turnover,
Computer Reseller News, Vol. 800, p.139.
Singh, J. (1998) Striking a balance in boundaryspamming positions: an investigation of some
unconventional, influences of role stressors and
job characteristics on job outcomes of
salespeople, Journal of Marketing, Vol. 62, pp.
69-86.
Vitalari, N. and Dell, D. (1998) How to attract and
keep top IT talent, HR Focus, Vol. 75 No. 12,
pp. 9-10.
Artemis Chang
School of Management, QUT
GPO Box 2434
Brisbane QLD 4001
Email: a2.chang@qut.edu.au
Phone: +61-7 3864 2522
E-marketing strategies: A case study of a Hong Kong bank

Helen Chena, Shan L. Panb , and Ming H. Hsiehc
a
Department of Marketing, City University of Hong Kong, Hong Kong
b
School of Computing, National University of Singapore, Singapore
c
Warwick Business School, University of Warwick, UK
Abstract
When the whole world is entering the era of Ecommerce, banks, among other businesses, are
facing biggest opportunities and challenges than
ever. This study presents a bank in Hong Kong,
which grasps the opportunities and transforms
challenges into opportunities for its credit card
business. Its successful E-marketing strategies,
owing to the good use of information technology, in
particular, World Wide Web (WWW), help the bank
gain competitive advantage.
Keywords
E-commerce; Business to Customer (B2C); Banking
Industry
Introduction
Today customers can shop on-line without actually
having to visit a store, and businesses can process
transactions and serve customers without the need to
set up premises in a street or shopping mall. This
change is a direct result of the development of
information technology, especially through EDI, the
Internet and the Intranet. As the main transaction
settlement agents, banks are inevitably confronted
with fundamental organizational and technological
challenges posed by the spread of so-called
electronic commerce. In particular, banks must
consider how they can best support customers who
are doing business electronically, and how they
themselves can explore new business opportunities
to promote their own products and services.
Electronic commerce (e-commerce, hereafter) is
associated with information technology as an
enabler, facilitator, and even inhibitor of business
activities both within and among various types of
organizations (Applegate et al. 1996). It has already
created enormous interest in the world of
information technology and across many industries.
More and more firms are undertaking e-commerce
projects to establish and cultivate business
relationships, perform business transactions,
distribute business knowledge, and implement
competitive strategy (Applegate et al. 1996). Firms
dealing with transactions and serving their

customers electronically have in turn presented
unprecedented challenges to banks (Crede 1999),
which in turn have had to reassess their traditional
methods of doing business. Furthermore, like all
businesses, banks must develop new on-line
marketing strategies (Bloch et al. 1996; Baker 1993).
The present case study of one particular Hong Kong
bank seeks to shed some light on the future of online marketing strategies. It examines the way in
which the bank conducted its on-line marketing
strategies (the promotion of credit cards) in the ecommerce context, and thus aims to reveal leadingedge practices and their underlying principles that
can be benchmarked by other organizations. Before
presenting the research data and discussing the
findings, a brief summary of previous credit card
studies is offered, and the research site and methods
are described.
Credit cards and e-commerce

Modern credit cards emerged in the United States in
the 1960s, and their usage has since expanded
considerably outside of North America (Crede
1999). The provision of credit card facilities is now
one of the main services offered by banks around the
world, and is considered to be one of the most
competitive areas in the banking industry (Kara et al.
1994; Feinberg 1986; Chan 1997). Not surprisingly,
credit card business has also become one of the most
important research topics in banking studies
(Adcock et al. 1977; Feinberg 1986; Kaynak and
Yucelt 1984; Kara et al. 1994; Chan 1993).
However, most previous research has been focused
on the development of user profiles and the
exploration of broader economic issues pertaining to
demand and supply (Adcock et al. 1977; Feinberg
1986; Kaynak and Yucelt 1984; Kara et al. 1994,
Chan 1997; Meidan and Davos 1994). Economicbased approaches (Batra 1975; Garcia 1980;
McAlister and DeSpain 1975; Russell 1975) and
behavioural approaches (Plumer 1971; Chan 1996)
have not yet concerned themselves with the demand
for credit cards. More importantly, there has been
little research on the way in which banks market
their credit cards by analysing customer needs and
providing
possible
solutions
to
problems
112
encountered, especially in the context of ecommerce.

Fuelled by on-line customer behavior, e-commerce
activity is now poised to increase dramatically
(Banking Strategies 1996; Joseph et al. 1999;
Berthon et al. 1998). Customers are buying goods
and paying for them on the Internet, and businesses
are processing transactions and serving customers
electronically. It is estimated that by 2002, US
businesses alone will conduct USD$327 billion
worth of sales of goods and services on-line
(Business Week 1998). Therefore, banks face the
daunting challenge of supporting the increasing
volume of on-line transactions (Hall et al. 1999). In
response to these new circumstances, financial
institutions of different types have started scanning
their business environment and have tried to design
and implement proactive marketing strategies (Kara
et al. 1994), although creating competitive
advantage in the age of e-commerce is not at all easy
(Domegan 1995). Banks have been attracted to the
potential of e-commerce for two main reasons. First,
the number of online users of financial services is
increasing at an accelerating pace (Hall et al. 1999;
Banking Strategies 1999). Secondly, the transaction
costs associated with Internet banking are very low
(Hall et al. 1999). As Furash (1999, 42) puts it,
What most banks have learned is not to fight
change or think it will go away rather, to embrace
and grow with it.
Research methodology
This paper is focused on how E-co markets its
credit cards in Hong Kong in the age of ecommerce. It can be classified as a multi-method, indepth field research study (Miles and Huberman
1994) according to three principal factors: the type
of research questions, the control an investigator has
over actual behavioural events, and the focus on
contemporary as opposed to historical phenomena
(Yin 1993).
Semi-structured interviews were conducted in E-co
for one month. Some of them were conducted by
telephone and others were face-to-face. They were
carried out in the departments of information
technology, planning and development, and
marketing. In addition, interviews were held in
another firm, E-store, the merchant selling products
and services - each credit card transaction involves
four parties: the cardholder, the merchant selling
products and/or services, the merchant acquirer
processing the credit card payment, and the card
issuer. There are another two reasons to interview Estore. First, E-cos new credit cards marketing
strategy has involved setting up an e-mall web site at
www.BankA.com.hk/index8.html .
There are over 50 firms listed on the web. E-store is
one of the first 20. Secondly, E-store is the first
department store in Hong Kong which set up its own
web site and sell its products electronically. When

interviews were carried out in E-store, several
questions were raised about the e-mall web site of Eco. E-store interviews were held in the departments
of information technology, marketing, credit cards
and customer service. A total of 18 interviews took
place: 10 in E-co and 8 in E-store. All interviewees
are at the managerial level.
In the next section, the background to the E-co case
study will be presented. Then, in the following
section, the research data will be analysed. Finally, a
conclusion will be offered.
The background of E-co
E-co was set up in 1980, with the name of Bank A
Credit Card Company, as a wholly owned subsidiary
of Bank A, a member of Group A. In 1995,
following the development of Group A, its name
was changed to E-co, and it became the only credit
card dealer in Group A. It began to issue bank cards,
such as Fortune Card, which could be used in China,
Hong Kong and Macau. E-co joined the MasterCard
and Visa organizations in 1985 and 1988
respectively. It now issues classical Visa and
MasterCard, Gold Visa and MasterCard, Platinum
Visa and MasterCard, Business Visa and
MasterCard, and Macau Visa and MasterCard.
Since the 1980s, the credit market has flourished in
Hong Kong (Chan 1997; Hong Kong Business
Annual 1989). In 1989, each adult in Hong Kong
owned an average of 2.4 credit cards (Howarth
1990). As commented by a manager from E-co,
There are at least 20 banks in Hong Kong that issue
all kinds of credit cards. It means that almost every
bank has a card-issuing counter.
Another manager in E-co states:
The credit market in Hong Kong is really
competitive. If you do not keep watching and taking
actions, you may lose your share in the market
within a short period of time.
Intensified competition has forced all card issuers to
fine-tune their marketing strategies in order to
maintain their previous performance (Chan 1997).
The main marketing strategies adopted by other
cared issuers and acquirers may be summarized as
follows by the general manager of E-co:
1) No annual fees for the first one or two years use
of credit cards; 2) A gift for each successful
applicant; 3) Discounted shopping in some shops in
Hong Kong: and 4) A prize for a cardholder whose
expending is over a certain amount.
All these marketing strategies in the Hong Kong
credit card market have further intensified
competition. How E-co markets its credit card

becomes critical important.
We know that making our service distinctive is very
important. For this, we grasped the opportunities
brought out by e-commerce. Meanwhile, we learned
a lot from brand management.
existing customers are able to know recent

promotion schemes of E-co.
2)
To link its business partners together at a
gateway page, seen as a cyber shopping mall. Its
business partners are listed under the categories of
department stores, beauty stores, book stores, music
stores, etc.
Opportunities
Hong Kong is now entering a new era with
information technology highly developing. A large
number of exhibitions on e-commerce were held at
the Hong Kong Convention Center in 1999, hosted
by the world leading information technology firms
such as IBM, Microsoft (The Apply Daily 1999).
The Hong Kong Trade Development Council also
held a few training sessions and provided loans to
small and medium firms to facilitate e-commerce
development. In a survey conducted by Hong Kong
Productivity Council, sponsored by IBM, it has been
found that among 207,274 firms, about 36.7 percent
firms have adopted e-commerce to enhance their
development (HKPC, 199).
The development of e-commerce has asked for a
great number of initiatives taken to create a secure
cost-effective payment system which will be able to
support growing commercial activities on the
network (Crede 1999). Thus the significance of
banking service has been emphasized increasingly in
this era. Undoubtedly, the credit card has become
the focus as it is one of the major means of
electronic payment (Crede 1999). In Hong Kong,
every card issuer is now trying to think new and
marketing strategies for supporting e-commerce
activities of their business partners.
After businessmen began to realize the business
opportunities brought by e-commerce, a large
number of firms began to think of how to utilize the
opportunity. Foremost, many firms set up their own
web pages to present their image, while others began
to sell products on the web. This aroused great
interest in the business world.
The popularity of the e-commerce in Hong Kong
thus stimulated E-cos decision to set up its own web
site, www.BankA.com.hk/index8.html. This site was
set up also as a new means of advertising all
products and services provided by Bank A.
Setting up a web site is rather easy, but setting up a
good one which can enhance our strategy
performance is not. says the manager from the
marketing department.
E-cos web site performs two functions:
1)
For customer service - potential customers
are able to apply for E-co credit card on line and
The successful launch of this web site can be

attributed to our Internet Service Provider (ISP).
Several weeks after www.BankA.com.hk was set up,
the ISP suggested that a web site for E-co should be
established. Thus came a so-called e-mall web site,
where customers could visit a variety of shops, our
business partners, on line and do shopping with E-co
credit cards. Thus an e-mall web page under
www.BankA.com.hk/index8.html was set up.
We have noticed that the online application of our
credit cards has increased since then. Although it
does not account for a significant percentage of the
total application, we are already satisfied. This is
just a beginning for our e-commerce business.
At the moment, customers still prefer visiting our

branches to make an application. The postal
application is not even popular due to customers
conventional habits. Therefore, we still have a long
way to go to achieve our e-commerce way of
promoting our credit cards. However, we think that
we have done well so far.
We later realized that we connected our customers
with merchandisers. We form a special community.
Each party involved can be easily satisfied by doing
so.
This is exactly a critical successful factor of E-co,
facilitating on-line virtual communities. It draws
together business parties who are interested in E-co
and its related products and services. Business
convenience has been born, and a new kind of
customer relationship has been established.
The benefits of forming virtual communities have
been repeated in this case:
Our firm gains revenue.
When comes to enhancing E-cos market position,
virtual communities serve to establish E-co as a
leader on-line, a brand leader.
The facilitation of virtual community in which
structured one-to-one customer and potentialcustomer interactions take place may therefore be of
great value to any financial bank competing within
the market (Barnatt 1998).
114
Both the credit card users and the merchandisers

data are collected by E-co in a cost-effective way.
Moreover, virtual communities have become the
common vehicles for on-line customer service for Eco.
Not long afterwards, a full technical explanation of

SET appeared on the web sites of E-co at
www.BankA.com.hk/index2.html. It also appeared
on the web sites of E-cos business partners.
Response from E-store

Challenges
Although e-commerce flourished in Hong Kong, its
development pace was rather slow (Hong Kong
Business Annual 1999).
We have noticed this slow-down. There must be
some inhibitors behind. We must know what they
are and what is the need of customers before we take
any new strategy. Without such knowledge, our
strategy will not achieve our goal.
E-co hence began to analyse the factors that were
having such a negative impact on the development
of e-commerce in Hong Kong. To their surprise,
they identified one very important inhibitor
connected with the use of credit cards:
We have found that the credit card holders in Hong
Kong are very afraid to use their credit cards on the
web. They think that it is too risky to input their
personal data on the Internet, and they do not want
to be a victim of credit card fraud., as reported by
the manager from technology department in E-co.
Accordingly, E-co started to search for any security
measure that could offer protection against the
fraudulent use of credit cards by guaranteeing the
security of customers on-line data. The hope was
that in this way more and more customers would be
attracted to E-co because of its secure credit card
system, and in turn this would foster the
development of e-commerce in Hong Kong. Secured
Electronic Transaction (SET) was one of the major
findings. The manager from IT department said:
The Secured Electronic Transaction (SET) payment
system was introduced in Australia in 1998. We sent
some information technology people to learn about
it. The primitive 0.0 version that we learned, in fact,
was later introduced to our e-commerce partners in
Hong Kong. We were the first to adopt the SET
system among all credit card issuers and acquirers in
Hong Kong.
The biggest challenge E-co faced in the initial stage
was how to convince the merchants and cardholders
of the double security of its credit cards with the
introduction of SET. It therefore turned to the
merchants who are actually selling products:
If the merchants are convinced of the security of
our credit cards, they will then convince their
customers. By so doing, our efforts to engage in ecommerce can be halved.
Although we do not know whether the application

for E-co credit cards has increased, our sales have.
Although it (on-line sales) does not yet account for a
major proportion of the total sales of our firm, we
have been satisfied. We are very satisfied with Ecos e-mall web site. We have noticed that a large
number of customers get to know about our web site
by first visiting www.BankA.com.hk/index8.html.
Among all on-line transaction with credit cards,
half of them come from E-co credit cards. It is
amazing that E-co has achieved such a success. E-co
is only one of 20 credit cards issuers in Hong Kong.
We have noticed that after E-co highlighted its SET
system, more and more customers began to buy our
goods on-line. Our sales increased every month. We
think the introduction of SET can promote the
development of e-commerce in Hong Kong if
security is the major inhibitor.
We have received a considerable number of phone
calls about fraudulent credit card use. However, we
have not so far had any complaint about the
fraudulent use of E-co credit cards. It seems very
likely that the SET payment system works well.
We do not think that the introduction of SET in Eco is unique from the perspective of information
technology. Some credit card issuers promote the
ACCESS card, which is also attractive. However,
the set-up of such an e-mall site can differentiate Eco credit cards from others. For customers, holding
E-co cards and visiting the E-co web site means that
you will have more opportunities to shop on line.
Conclusion and some possible future

research direction
E-commerce has presented the whole business world
with a number of enormous challenges. For
example, in the 1980s all banking services, no
matter how simple or complicated, were offered
through branch offices. With the advancement of
information technologies, the spectrum of services
offered by banks has increased. In particular, the ecommerce business environment provides a platform
for future banking services to be carried out through
computer networks.
This study has investigated the effects of
implementing e-marketing strategies within one
particular organization. It points to the conclusion
that such on-line e-marketing strategies involve
more than a technical, computer system-based

system. In the case study company e-commerce
changed the communication patterns between the
bank and its customers, and also changed the design
of the organization by fostering new processes and
structures, for example through the facilitation of
on-line communities.
For E-co, the journey of implementing e-commerce
has just begun. The conventional organizational
boundaries of distance, time and structure are being
replaced with an almost unrestricted agility and
freedom to create business opportunities. The
continuous development of borderless financial
markets and the relaxation of trade barriers are
making global expansion easier from a financial,
cultural and marketing standpoint. One critical
strategic decision is to facilitate on-line virtual
communities. By drawing together people with
similar interests and shopping behavior, and
encouraging them to form on-line communities, a
new way of forging customer relationships is
established. Perhaps, as we learned from the
experience of E-co, on-line communities can be seen
as incubators of future e-marketing activities.
On the other hand, e-commerce activity possesses
unique characteristics that distinguish it in various
ways from a traditional, commercial communication
environment. As a result, orthodox marketing
activities are undergoing a transformation. One such
activity is the brand management of on-line banking
services and products. In particular, recent
developments in business and consumer broadband
technology are facilitating increased interaction with
customers. There is no doubt that branding will
continue to be a core strategy in future consumer
markets. However, on-line brand management has to
be able to defend itself against commodification.
This is because it can be difficult to sort through the
voluminous information to find appropriate on-line
Internet services. In other words, banks cannot
simply count on brand name and web site access as
the backbone of their e-commerce strategy. Rather,
the findings of the study suggest that the
fundamental premises of branding and traditional
advertising strategies for credit cards have to be
reconsidered if a bank is to remain successful in the
new, e-commerce environment.
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A survey of methods justifying capital expenditures in high

technology in New Zealand
William D.J. Cottona, and Anthony R. Bracefield b
a
School of Business, SUNY Geneseo, USA

Business Studies Programme, Christchurch College of Education, New Zealand
Abstract
Organisations are investing increasing amounts of
capital funds in high technology. An important issue
relating to this is the way in which the large capital
expenditures involved in various forms of high
technology can be justified. There may be problems
created by attempting to apply traditional capital
expenditure evaluation techniques to such
investments.
This paper reports the results of a survey of a
sample of Corporate Sector Chartered Accountants
in New Zealand to attempt to establish how their
organisations evaluate capital expenditures in high
technology and the methods they employ to appraise
the benefits of this technology. The major findings
are that the time horizon for evaluating high
technology investments is short; that the major
benefits were easier access to information, quicker
response to customers demands, improved
flexibility and improved quality; that these benefits
tended to be justified in other than traditional ways;
that discount rates used in evaluating high
technology benefits were unusually high; and that
only a minority of organisations perform a postaudit. The paper also reports on the extent of
investment in Y2K compliance technology, and the
methods used to justify it.
This study provides new information about the way
that decision makers at a wide range of
organisations in New Zealand are evaluating their
investments in high technology, and provides
insights into the specific financial and non-financial
factors they are building into their analysis.
spectrum of areas, including retail organisations, the

service industry, financial organisations, the not-forprofit sector, office automation, and especially
manufacturing organisations committed towards
increased use of high technology production
methods.
The trend towards using machines rather than human
labour to produce industrial and consumer goods and
services has been accelerating and many
organisations in most countries in the Western
World have embraced this new technology. The
benefits from this technology extend beyond the
purely technical to such areas as enhanced quality
and quicker response times.
For example Challenor (1999) states;
Over the past several years; successful players in
the chemical industry have capitalised on a
multitude of opportunities provided by new
developments in information technology. Benefits
included reduced operating costs, increased
efficiency, enhanced interaction within and between
organisations, and improved relationships among
corporations and their customers and suppliers. It is
estimated that chemical companies have spent 1.2%
to 1.5% of total revenues on information technology,
with some corporations reaching 2.5% during
enterprise wide efforts such as Enterprise Resource
Planning.
Introduction
An important issue to be faced relating to these

developments is the way in which the large capital
expenditures involved in various forms of high
technology can be justified. There may be problems
created by attempting to apply traditional capital
expenditure evaluation techniques to such
investments. There is some doubt about whether
conventional techniques are being applied in an
appropriate fashion to the analysis of high
technology investments, and whether they can
capture all the variables necessary to make informed
decisions.
In recent years, business operations have been

characterized by the rapidly increasing use of
computer technology. This technology has changed
dramatically the way that business is done in a wide
The purpose of this paper is to report the results of a

mail questionnaire survey of a sample of Corporate
Sector Chartered Accountants in New Zealand to
Keywords
High technology;
investments
Capital
expenditures;
Y2K
118
attempt to investigate how their organisations

evaluate capital expenditures in high technology and
the methods they employ to appraise the benefits of
this technology. No such research has been carried
out in New Zealand before, and the results will form
the basis for a comparison with overseas practices as
well as providing data for a more in-depth analysis
of some issues revealed by the survey. In addition
the paper reports on the extent of investment in Y2K
compliance technology and methods used to justify
it. This paper provides new information about the
way that managers at a wide range of organisations
in New Zealand are evaluating their investments in
high technology, and provides insights into the
specific financial and non-financial factors they are
building into their analysis.
Related Literature
Methods used to justify capital expenditures and in
particular Discounted Cash Flow (DCF) models are
well documented over the past several decades [see
Proctor and Canada (1992) for a review of the
literature]. Surveys done by Farragher, Kleiman and
Sahu (1999), Chen (1995), Trahan and Gitman
(1995), and Cooper et al (1992) suggest that over the
years the use of DCF techniques as primary
evaluation methods has increased significantly and
non-DCF techniques often supplement DCF
techniques in capital budgeting. This appears to be
an international trend as reported by Horngren,
Foster and Datar (2000) p 761. However, many
authors including Kaplan and Atkinson (1989),
Hayes and Wheelwright (1984), and Primrose and
Leonard (1987) have raised concerns regarding
traditional capital budgeting methods, which they
say tend to overemphasize short-term profitability
and over adjust for risk by using excessively high
hurdle rates.
They also contend that DCF
calculations do not capture the full range of benefits
from investment in new technologies.
Several studies have addressed the use of DCF
techniques in the evaluation of such high technology
investments as computer integrated or flexible
manufacturing technologies. Wilner et al (1992),
Slagmulder and Bruggeman (1992), and Kaplan
(1986) are among those that suggest DCF models
are useful for evaluating high technology
investments, but contend that the special nature of
project benefits require the techniques to be
modified. They note that such benefits as those
related to improved flexibility, quality, throughput,
and decreased lead time are not easily estimated or
quantified in financial terms and thus often are not
included in the capital budgeting process. Chen
(1995) pointed out that these types of non-financial
considerations, sometimes described as nontraditional evaluation techniques, can be particularly
important
in
todays
new
manufacturing
environment. Gil (1994) attempted to address this
weakness by presenting a framework for explicitly

translating the major benefits of flexible
manufacturing into economic and financial
variables.
This paper investigates what techniques a broad
sample of different sized New Zealand organisations
are actually using for the evaluation of high
technology investments. It updates and expands on
the survey and field research done in the United
States by Wilner et al (1992), Slagmulder and
Bruggeman (1992) and Cotton and Schinski (1999).
The study provides new information regarding the
adjustments managers are making in their capital
budgeting models for expenditures in new
technologies and what specific financial and nonfinancial considerations they are incorporating in
their analysis.
Research Methods
The research method was a questionnaire survey of
members of the Corporate Sector of The Institute of
Chartered Accountants in New Zealand (ICANZ).
Survey data were collected in two ways. First, the
questionnaire was sent by mail to a random sample
of 500 members of the Corporate Sector of ICANZ
and who were currently active in their organisations.
The sectors of employment included in the survey
were:
Commerce, Industry and Service
Local Government
State Owned Enterprises (SOEs) and Statutory

Bodies.
Secondly, the questionnaire was distributed at a
meeting of the following Corporate Sector Special
Interest Groups.
Chief Financial Officers Group
Corporate Focus Group
Company Accountants Group

Prior to distribution, a draft of the questionnaire was
pilot tested, first with colleagues at the Business
Studies Programme at the Christchurch College of
Education and second with a select group of Senior
Corporate Accountants. As a result of this pilot test
a number of changes were made to improve the
instrument.
The final version of the survey instrument consisted
of three main sections. The first section related to
high technology investments other than Y2K
compliance technology and included questions on
the type of investments undertaken, the time horizon
of projects, the benefits from high technology
projects, the use of DCF methods, and risk
adjustments (if any). The second section contained
questions relating to investment in Y2K compliance
technology, since it was desired to segment
justification of Y2K high technology expenditure.

The third section contained demographic questions
on the respondents job title, nature of the
organisation, total assets and total annual turnover.
Results
Of the 500 mail questionnaire surveys distributed,
102 usable responses were received, which
represents a response rate of just over 20%. This
response rate is relatively low, but comparable to
other similar surveys (e.g. Trahan and Gitman
(1995) 12% response rate and Jog and Srivastava
(1995) 22.9% response rate). The analysis of early
and late responses by organisation size, whether
measured by assets or turnover did not reveal the
existence of any non-response bias, and the absolute
number of responses is sufficiently large to allow for
appropriate statistical analysis. In addition 32 usable
responses were received from questionnaires
distributed at the Corporate Sector Special Interest
Group Meetings, and these responses form a control
group.
There were no significant differences
between the size of respondents organisations in the
control group and the mail respondents
organisations. When the responses from mailed and
meeting distributed surveys are combined, there
were 134 usable responses. The respondents were
invited to indicate the nature of their organisation
and its size, and these responses are shown in Table
1. These organisations were grouped into
manufacturing,
merchandising,
financial,
government, service and other.
Respondents
organisations size, ranged from $100,000 to
$3,300,000,000 in annual turnover and from
$100,000 to $6,000,000,000 in asset size.
Section A: High Technology Investments Other
Than Y2K Compliance Technology
The first question in the survey asked what type of
non-Y2K high technology projects the responding
organisation had invested in during the last five
years and the results are presented in Table 2. This
table shows that the top four types reported by
respondents were PC upgrades (94% of
respondents), significant software upgrades (81%),
internet technology (80%), and local area networks
(70%). When cross tabulations were run on the data,
there were no significant differences between the
responses to this question and the respondents
organisation size or their organisation type. These
results are not surprising and reflect the fact that the
computer and information technology revolution has
impacted organisations of a wide range of sizes and
types. The relatively lower response rates for such
investments as process simplification, CAD-CAMCIM, and flexible manufacturing reflect both the
relatively small size of the manufacturing sector in
New Zealand and that relatively few organisations in
the sector appear to be using state-of-the-art

manufacturing technology.
The second question in the survey was directed at
the issue of how far into the future the respondents
organisations project the quantitative benefits from
high technology investments and whether this period
is less, more or the same as non-high technology
projects. The mean response period was 4.2 years
and the distribution was as follows:
Up to 2 years
12%
2 to 4 years
43%
5 years or more
27%
Not answered
18%
In addition 54% of the respondents indicated that the
period was less than that used for non-high
technology investments, 6% said the same, and 40%
of the respondents replied that the period of
evaluation is more than that.
These results suggest that respondents organisations
adopt a relatively short time horizon when
evaluating high technology investments. This is
consistent with the types of investments reported
most frequently by respondents as shown in Table 2.
Given the rapid pace of technological change in the
personal computer, network technology and internet
technology industries, it is not surprising that 55% of
respondents reported evaluating high technology
investments over a period of 4 years or less, and that
54% reported that they used a shorter time horizon
than for non-high technology projects.
It might have been expected that manufacturers
using such equipment as CAD, CIM and FMS would
have employed a longer time horizon, but crosstabulations by industry type revealed no such
significant trend. This is rather surprising since one
of the major benefits often claimed for new
manufacturing technology is its ability to adapt to
the variants of products, or new generations of
products that will be demanded in future years;
whereas more traditional dedicated manufacturing
technology, although cheaper in the short run, may
have to be replaced when new generations of
products appear.
It is possible that some
manufacturing companies in New Zealand may be
failing to include in their capital expenditure
evaluations, the long term benefits that these
investments may provide.
Benefits of High Technology Investments

The third survey question asked respondents to rank
on a 5-point Likert scale the importance of benefits
often cited for high technology investments. The
following potential benefits were listed on the
questionnaire:
Easier access to information
120
Improved Flexibility
Reduce labour costs
Reduced set up times
Improve quality
Respond to competitors technology
Increase throughput
Reduce lead times
Decrease inventory
Quicker response to customers demands

There was also space for respondents to indicate any
other benefits that they perceived.
Such benefits as reduced inventory levels and
reduced labour costs may be quantified with relative
ease, such others as greater flexibility and easier
access to information may defy traditional
quantification and may have to be addressed in more
creative ways. It will be instructive to examine
briefly the nature of some of these benefits.
Table 1 Characteristics of Responding Organisations
Organisation Type
Manufacturing
Merchandising
Financial Institutions
Government & QuasiGovernment
Service Industries
Other
Total Responses
Number
Percentage
36
22
11
12
28 %
17 %
9%
10 %
30
15
126
24 %
12 %
100 %
Boundaries for Asset Size of Organisations

Small
$0-$5m
37
Medium $5m-$30m
44
Large
over $30m
41
Total Responses
122
30%
36%
34%
100%
Boundaries for Turnover Size of Organisations

Small
$0-$5m
21
Medium $5m-$50m
54
Large
over $50m
47
Total Responses
122
17%
44%
39%
100%
ingredient of success in todays fast paced business

environment. The great challenge in this area is
trying to quantify the savings that are possible by
accessing the information easier and faster.
Table 2 Types of Non-Y2K High Technology
Investments During the Last 5 years
Type of Investment
PC Upgrades (excluding LAN)
Significant Software Upgrades
Internet Technology
Local Area Networks (LAN)
Financial Information Systems
Materials and Inventory Systems
CAD Systems
Quality Control
Enterprise Resource Planning (ERP)
Systems
Process Simplification
CAD-CAM-CIM
Flexible Manufacturing
Various Other
Yes
94 %
81 %
80 %
70 %
43 %
19 %
13 %
12 %
10 %
No
6%
19 %
20 %
30 %
57 %
81 %
87 %
88 %
90 %
9%
4%
3%
10 %
91 %
96 %
97 %
90 %
Although difficult to quantify, the greater flexibility
afforded by many new technologies, especially in
the production sphere, ought to be included in some
way in any capital expenditure evaluation. The
benefits from flexibility take a number of forms. In
the first instance, many forms of new technology
offer economies of scope that is, the potential to
produce at low cost a wide variety of low volume
products or services. Second, the reprogramming
capabilities of many new computerised machines
allow them to serve as back-ups for each other,
should one of them go down. Third, computerised
machinery can often adapt rapidly to product
redesigns and engineering change orders, and also to
changes in products brought on by shifts in
consumer tastes.
Finally, and perhaps most
importantly, the useful life of programmable high
technology equipment is not limited by the life cycle
of the product for which it was originally purchased.
Easier Access to Information

The ability to access specific information from the
vast amount of information that is available from
internal databases and the world wide web is critical
to all organisations today. The importance of easier
access to information has been suggested already by
the top five categories of investment in high
technology expenditure referred to in table 2. These
were PC and software upgrades, internet technology,
establishing local area networks and upgrading
financial information systems.
Many organisations have an array of data collection
points, which feed into large databases, and collect
both financial and non-financial information. The
need for the user to access the information quickly
and specifically is an important component for job
efficiency.
The speed and ease with which
information can be accessed is an important
The benefits of flexibility will extend

manufacturing organisations. Many
merchandising organisations find
technology enables them to quickly
operating procedures to changes
conditions.
also to nonservice and

that high
adapt their
in market
Many of these flexibility benefits may show up only

over a period of time, and it may be difficult in the
present to assess just how much this flexibility will
be worth. It may not be possible to place a hard cash
flow number on these benefits, but they should not
be ignored in any evaluation of capital expenditures
in high technology.
Improved Quality
A probable benefit of high technology in
manufacturing organisations is improved quality
Table 3 Importance of Benefits Claimed for High-Technology Investments

Benefit
Number of
Responses
132
124
131
123
120
120
96
86
100
111
8

Quicker Response to Customer Demands
Improved Quality
Increased Throughput
Reduced Labour Costs
Reduced Lead Times
Decreased Inventory
Reduced Set Up Times
Respond to Competitors Technology
Various Other
resulting from more uniform production of in-spec

products; declines in scrap, spoilage, and rework;
and more immediate detection of non-conforming
production. Additional benefits will flow from
reducing the number of inspectors and the number of
inspection stations, and from significant reductions
in after-sales service and warranty expense. In
short, there are likely to be cash flow benefits across
the whole spectrum of cost-of-quality categories,
including prevention, appraisal, internal failure, and
external failure.
Quality service in nonmanufacturing organisations is also likely to be
enhanced by high technology. These benefits may be
quantifiable, particularly if the firm has a cost-ofquality system, and they should be included as part
of any cash flow analysis.
Increased Throughput, Reduced Lead

Times, Reduced Set Up Times
Increased throughput, reduced lead times, and
shorter set up times tend to be advantages of many
types of sophisticated production technology. This
can lead to lower inventories, especially of work in
process, and therefore result in substantial cash flow
benefits. But there may be other less obvious and
less tangible benefits and these are likely to extend
beyond the manufacturing sphere. For example
there may be significant marketing advantages in
being able to respond quickly to demands made by
customers, and to shifts in customer preferences.
Decreased Inventory
As implied above, one of the major reasons that
companies install automated technology is to reduce
manufacturing cycle time and facilitate the drive
towards J.I.T. production systems. This will result
in reductions in work in process and finished goods
inventory through improved process flexibility,
more orderly product flow, and better scheduling
which accompany investments in such new
technology as F.M.S. cells and C.I.M. installations.
Such savings are often large and usually occur early
in a projects life and thus have a high present value
when incorporated in D.C.F. analysis.
Some
Ranking on a 5
point Likert Scale
4.4
4.3
4.0
4.0
3.8
3.6
3.5
3.4
3.2
2.9
4.5
% Responding in
Categories 4 & 5
87 %
82 %
79 %
72 %
60 %
53 %
45 %
36 %
34 %
31 %
64 %
organisations have reported inventory reductions as

high as 70% to 80% 1.
Inventory cost reductions of this magnitude may go
a considerable way towards offsetting the higher
initial costs related to learning curve effects
associated with the installation of the new
technology.
Quicker Response to Customer Demands

The rapid technological expansion by both customer
and supplier has lead to an ever-increasing
expectation of rapid responses to customer demands.
Customers frequently request information regarding
product availability, production time or price, and
want quick responses. The organisations that can
supply the information rapidly often generate the
sale whereas those who incur delays risk losing the
sale to a competitor who can provide a more rapid
response.
Customers have developed high
expectation levels and which organisations are
seeking to satisfy in a global marketplace, where
factors other than price are the key difference
between competitors.
Survey Results- Benefits

Question four of the survey asked respondents to
rank on a five-point Likert scale the importance of
these benefits to high technology investments. The
responses to this question are contained in Table 3
and are quite revealing in that no benefit had a lower
ranking than 2.9 on a 5.0 point scale. Four of the
benefits had an average ranking of 4.0 or greater and
may be summarized as follows:
Average
Ranking
Easier access to
information
Quicker response
customer demands
Improved flexibility
Improved quality2
to
4.4
Percent
Ranking
As 4 or 5
87%
4.3
82%
4.0
4.0
79%
72%
1 See Kaplan & Atkinson (1998), p. 603.

122
Table 4 Quantification of Benefits

Quicker
Response
to
Customer Demands
Improved Quality
Reduced Lead Times
Decreased Inventory
Reduced Set Up Times
Respond to Competitors
Technology
Various Other
Number of
Responses
126
115
Quantified
Not
Considered
9%
11 %
Not Applicable
22 %
15 %
Considered But Not

Quantified
68 %
89 %
121
116
114
113
89
87
93
104
10 %
18 %
32 %
49 %
22 %
30 %
22 %
8%
79 %
66 %
48 %
30 %
32 %
23 %
34 %
45 %
10 %
11 %
10 %
14 %
18 %
18 %
21 %
32 %
1%
5%
10 %
7%
28 %
29 %
23 %
15 %
10
30 %
70 %
0%
0%
It is clear that such benefits as these represent

important reasons why expenditures are made in
high technology projects, but some of these benefits
may prove difficult to quantify in any formal
analysis of proposals. In an attempt to provide
insight into the issue of quantification, question four
in the survey asked respondents to identify for each
benefit whether they quantified it, considered it but
did not quantify it, or did not consider it. The results
of this question may be found in Table 4. Perusal of
this table shows that the three most readily
quantifiable benefits were:

Decreased inventory
Quantified
49%
32%
30%
At the other end of the scale, the three benefits that

were most often not considered were:
Respond to competitors technology

Reduced set up times
Reduced lead times
Not Considered
32%
21%
18%
Perhaps the most compelling result summarized in

Table 4 is the fact that the four most important
benefits were regarded by respondents as difficult to
quantify. This is shown by the following summary
that identifies the top four benefits by percentage of
respondents who considered the benefit but did not
quantify it.
2 Note that Improved Quality is ranked highly as a

benefit. Although this does not seem consistent with the
relatively low weighting accorded to Quality in Table 1,
it may be explained by the fact that investments in high
technology have improved quality inherent as one of their
major benefits.
Quicker response to customer demands

Improved flexibility
Easier access to information
Improved quality
1%
5%
Considered but
Not Quantified
89%
79%
68%
66%
Such benefits as easier access to information,

quicker response to customer demands, improved
flexibility, and improved quality, are likely to be
difficult to measure since they result in increased
revenues rather than savings in costs. It is much
harder to estimate revenue increases from features
that are not already in place, than it is to estimate
reductions in costs that are already being incurred.
The challenge for the decision maker from this
information is to develop methods of evaluating
such benefits as these. This area alone is worthy of
further research.
When cross tabulations were run on the data,
significant differences were found between
quantification of some of the benefits and the
respondents organisation size and type. These are
shown in Table 5.
The significant differences by organisation type
were in the benefits of set up times and decreased
inventory. The manufacturers were more likely to
quantify these benefits than most other categories of
organisations.
This is understandable as a
manufacturers profitability is affected significantly
by set up times and inventory levels.
The significant difference by organisation size
measured by assets was in the benefit of labour
costs. The percentage that quantified labour costs
was large 68%, medium 47% and small 29%. This
is understandable because larger organisations have
larger labour forces than small organisations so a
reduction in labour costs will have a more
significant absolute affect on profit.
Table 5 Quantification of Benefits Significant by Organisation Type and Size*

By Organisation
Set up times
Decreased Inventory
By Assets
Labour Cost
By Turnover
Decreased Inventory
Quantified
Considered
Not
Considered
Manuf
34 %
44 %
15 %
Merchd
5%
19 %
29 %
Financial
0%
30 %
30 %
Govt
42 %
25 %
25 %
Service
22 %
37 %
11 %
Other
21 %
43 %
21 %
47 %
24 %
21 %
52 %
14 %
24 %
9%
9%
21 %
18 %
0%
27 %
12 %
38 %
8%
23 %
38 %
8%
Quantified
Considered
Not
Considered
Quantified
Considered
Not Considered
Small
29 %
44 %
15 %
Medium
47 %
30 %
14 %
Large
68 %
16 %
13 %
Quantified
Considered
Not Considered
Small
5%
76 %
5%
Medium
33 %
49 %
14 %
Large
40 %
38 %
11 %
Quantified
Considered
Not Considered
0%
42 %
11 %
37 %
21 %
23 %
40 %
17 %
17 %
* Chi Square Test. All cross tabulations significant at the 5% level
The significant differences by organisation size

measured by turnover were in the benefits of
increased throughput and decreased inventory. The
cross tabulation shows with regard to increased
throughput that quantification was performed by
small 5%, medium 33% and large 40% and with
regard to decreased inventory, small 0%, medium
37% and large 40%. This is explainable by the fact
that the larger the organisation, the more likely they
are to quantify a benefit, presumably due to the
greater resources they can bring to the decision
making process.
The most important finding from the cross tabulation
of quantification of benefits and organisation type
and size, was that there was no significant difference
in the four highest ranked benefits of high
technology investments as shown on a five-point
Likert scale. These benefits were, easier access to
information, quicker response to customer demands,
improved flexibility, and improved quality.
Use of Discounted Cash Flow Methods

The fifth survey question was related to the use of
DCF methods for the evaluation of high technology
projects. Finance textbooks often suggest that DCF
techniques are in widespread use. However some of
the international finance literature and the results of
this survey, suggest that the use of DCF techniques
may not be as widespread as previously thought.
Refer to Table 6 for an international comparison of
the relative importance of DCF Methods.
Of the respondents to this question in our survey, 78

(60%) stated that they do not use DCF techniques in
evaluating these types of investments, whereas 52
(40%) indicated that they do. Cross-tabulations
were run to see whether there were any significant
differences in groups of respondents when grouped
by size. There were significant differences in the
use of DCF methods when comparing small,
medium and large organisations by asset size and
most significantly by turnover. When grouped by
asset size 55% percent of large organisations
reported the use of DCF methods compared to 37%
of medium organisations and 30% of small
organisations. When grouped by turnover 54%
percent of large organisations reported the use of
DCF methods, 40% of medium organisations and
only 14% of small organisations. The difference for
responses among categories was significant at the
5% level. This result supports the findings of
Trahan & Gitman (1995), who found that
respondents from large Fortune 500 organisations
were significantly more likely to utilize DCF
methods than respondents from smaller Forbes 200
organisations.
Our results show that significant proportions of
responding organisations report the use of non-DCF
methods when evaluating capital expenditures in
high technology projects.
This confirms that
additional methods and criteria must be used when
assessing investments in these projects as has been
shown earlier in this paper.
124
Table 6 International Comparison of Capital

Expenditure
Evaluation
Methods
Relative
Importance of DCF Methods*
Cotton-Bracefield Study
% Using DCF
40%
International Studies
USA 1
41%
USA 2
65%
3
USA
50%
Australia1
47%
Canada1
57%
1
Ireland
44%
Japan 1
10%
Scotland1
49%
South Korea1
49%
1
United Kingdom
41%
*Many companies in prior studies report the use of more than
one method. Therefore this table reports the use of DCF
methods vs non DCF methods, on a 100% scale.
1
Adapted from Horngren, Foster and Datar (2000)
2
Adapted from Farragher et al (1999)
3
As reported by Cotton and Schinski (1999)
An additional part of the fifth survey question asked

respondents using DCF methods to state the discount
rate that they used and whether this was higher,
lower, or the same, as non-high technology projects.
This is an important issue in relation to the high
technology investments, since the use of an
excessively high discount rate will penalize a longlived high technology investment just as much as the
use of an arbitrarily short time horizon.
The discount rates reported by respondents to this
survey ranged from 7% to 35%, with a mean of
13.5%. In fact, 64% of respondents to this question
indicated that their firm used a discount rate in
excess of 10%. The results of our survey indicate
that a non-trivial number of respondents (15
organisations) used discount rates of 15% and
above. Given the level of interest rates in the late1990s, it is unlikely that the weighted average cost
of capital for a firm of moderate risk would exceed
10%. Even if it is recognized that a risk adjustment
is required for organisations in some industries, a
discount rate significantly in excess of 10% is
unlikely ever to be justified. Thus, these results
provide some support for the contention by Kaplan
and Atkinson (1989), Hayes and Wheelwright
(1984), and Primrose and Leonard (1987), that many
organisations tend to use excessively high hurdle
rates.
The survey question on whether respondents use
higher, lower or the same discount rate for high
technology projects as non-high technology projects
revealed 16% use a higher rate, 4% a lower rate and
80% the same. While it is pleasing that the majority
of organisations use the same rate, this again
supports the above contention that some
organisations tend to use excessively high discount
rates when evaluating high technology projects with
16% of organisations using a higher rate.
Risk Adjustment for High Technology

Projects
It is appropriate to investigate how organisations
analyse risks in capital budgeting for investments in
high technology, since the risks involved may be
perceived as quite high. Not only are the magnitude
of some high technology investments large and often
commit the organisation in a new strategic direction
for a substantial period of time, but also some of the
benefits from the new equipment are not always
easy to measure in concrete cash flows. For these
reasons some decision makers perceive the risks
associated with high technology as greater than the
norm. However, it is possible that the reverse is the
case, in that failure to invest in modern sophisticated
equipment may be even more risky. As Harvard
Business School Professor Pankaj Ghemawat (1993)
argues, A company that does not invest in the
future is as unlikely to have one as a company that
invests too heavily.
Survey question six was designed to address this
issue. The first part of this question asked whether
any form of risk adjustment was used for high
technology projects, and 21% of the respondents
answered yes while 79% answered no. There were
significant differences between respondent groups
measured by turnover size, with the large
organisations being more likely to use risk
adjustment as compared with the small and medium
organisations. It appears that the large majority of
the respondents do not view high technology
investments as any more risky than other
investments. The second part of question six asked
which risk adjustment methods were used. The
methods were varied and included:
adjust discount rate
add lump sum to
investment
contingency planning
require shorter payback

period
sensitivity analysis
post audit follow up
Adjustments to Improve the Evaluation of

High Technology Projects.
The seventh survey question asked respondents to
describe any adjustments they had made or plan to
make to improve their evaluation of high technology
projects. Only 10% of respondents answered this
question. The answers were varied and included:
Extensive
consultation,
standard
design
requirements, risk analysis (early on in the project)
Investment document had to consider risks
module by module as well as the big picture
Factor in more time delays due to training and new
acceptance
We try to involve two outside organisations in each

project to keep each other honest
Write business use and do DCF analysis before
committing to a project not after!!
Post Audit Evaluation

Question eight in the survey asked respondents to
indicate whether their organisation had a post-audit
mechanism in place to review and evaluate capital
budgeting decisions. This question was answered in
the affirmative by 43% of the respondents and in the
negative by 57%. Cross-tabulations were run to
establish whether responding organisation type or
size led to any significant differences in the
propensity of organisations to perform a post audit.
As shown in Table 7 there were significant
differences when comparing both organisation type
and size.
Table 7 Post Audit Significant Cross Tabulations by
Organisation Type and Size*
Manuf
By Organisation
Yes
46 %
No
54 %
Merchd
Financial
Govt
Service
Other
64 %
36 %
9%
91 %
50 %
50 %
27 %
73 %
47 %
53 %
By Turnover
Yes
No
Small
19 %
81 %
Medium
49 %
51 %
Large
45 %
55 %
The first question in this section asked how much

the respondents organisation spent on investment in
high technology improvements for Y2K purposes.
For the 107 respondents, the total expenditure was
$140,238,000. When the top 3 organisations who
spent $121,000,000 were excluded, there remained
$19,238,000 spread over 104 organisations. This is
an average of $184,000 per organisation and is a
non-trivial number.
The second question asked respondents to briefly
describe how they justified investments in high
technology for Y2K purposes. There were 95
responses and they were categorised into three
groupings.
Group one related to the need for continuity of
business operations and the need to remedy any non
Y2K compliant technology.
There were 42
respondents in this group, which is 44% of the total
respondents. Examples of their comments are:
Necessity, product was not compliant
Needed to secure service to customers
Expenditure had to be incurred to allow our
organisation to operate. No choice in our industry
* Chi Square Test. All cross tabulations significant at the 5% level
When organisation type was compared, those

organisations that reported higher levels of post
audits were Merchandisers (64%), Government
(50%) and Manufacturers (46%).
Those that
reported lower levels of post audits were Financial
and Service at 9% and 27% respectively. These
differences were significant at the 5% level.
When size was measured by turnover, 45% of large
organisations and 49% of medium organisations
reported the use of post-audit compared to only 19%
of small organisations, and again these results were
significant at the 5% level.
This would be
anticipated due to greater accountability of larger
organisations due to the absolute size of their
investments and more resources to carry out a post
audit.
It was somewhat surprising that 57% of all the
respondents did not carry out any form of post audit.
Research in the United States suggests that the rate
is much lower in that country. Farragher et al (1999)
report that only 12% of their respondents did not
perform post audits. This is an area for future
research.
Section B: Investment in Y2K Compliance
Technology
The second section of the survey instrument covered
investment in Y2K compliance technology.
Group two related to the unknown risk that might

eventuate should nothing be done. There were 17
respondents in this group, which is 18% of the total
respondents. Examples of their comments are:
Operational risk, could not afford to run manual
operations
Felt I had to
Could not allow for risk to be part of the equation
Group three related to the opportunity to use Y2K to
upgrade old or obsolete technology in a controlled
manner using standard organisational investment
policy. There were 36 respondents in this group,
which is 38% of the total respondents. Examples of
their comments are:
Part of planned upgrading started 5 years ago
Cost benefit analysis performed as for any non
Y2K capital expenditure. I used payback period,
revenue/ net return in the investment decision
Suitable excuse for an upgrade of PCs
The final question in this section asked respondents
to identify whether their organisation used different
methods to justify investment in Y2K compliance
technology compared to non-Y2K high technology
investment. Of the 111 responses 55% indicated
they did use different methods, while 45% said they
used the same methods. This implies that despite
the high degree of attention paid to Y2K issues in
the media, almost half the respondents were not
rushed into investment decisions without
126
considering their normal investment criteria. This

was confirmed by the responses to the question on
justification methods reported above. In addition the
responses suggest that many organisations used the
Y2K event to upgrade their old technological assets.
Summary and Conclusions

This study examines how decision makers from a
broad cross-section of organisations evaluate and
justify capital expenditures in high technology.
Only 40% of the respondents stated they use
discounted cash flow techniques. The survey results
suggest that, particularly among smaller sized
organisations in New Zealand, the use of DCF
techniques may not be quite as widespread as
previously thought or as advocated in the academic
literature. Survey respondents indicated that high
technology investment benefits were projected an
average 4.2 years into the future, with only 27% of
the respondents indicating that benefits were
projected 5 years or more into the future.
Survey responses suggest that many organisations
may be utilizing excessively high discount rates.
The discount rates reported by respondents to this
survey ranged from 7% to 35%, with a mean of
13.5%. It was noted that given the level of interest
rates in the year 2000, it is unlikely that the weighted
average cost of capital for an organisation of
moderate risk would exceed 10%.
The respondents ranked a number of potential
benefits according to their importance as reasons for
making high technology investments. Such benefits
as quicker response to customer demands, improved
quality, easier access to information, and improved
flexibility were identified as the top reasons why
expenditures are made in high technology projects.
The survey results provided substantial evidence that
while not all of the important potential benefits of
high technology projects are easily quantified, they
are definitely considered in the context of the capital
budgeting decision. Only 43% of the survey
respondents stated that their organisation had a postaudit mechanism in place to review and evaluate
capital budgeting decisions and this would be a
fruitful area for further research.
This study should help provide a better
understanding of capital budgeting practices for non
Y2K high technology projects and the relationship
between organisation size and project evaluation
techniques. This paper also shows that despite the
significant amount of expenditure spent on Y2K
technology, 45% of organisations used their normal
capital investment criteria to justify this expenditure
and many organisations used the event to upgrade
old technology.
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Lead author
William D.J. Cotton
Professor of Accounting
SUNY Geneseo USA
(716) 245-5364
cotton@unco.cc.geneseo.edu
Presenter
Anthony R. Bracefield
Senior Lecturer in Accounting
Christchurch College of Education
(03) 348-2059
tony.bracefield@cce.ac.nz
128
Comparing the nature of workplace bullying in two European

countries: Portugal and UK
Helen Cowie and Dawn Jennifera, Carlos Neto and Juan Carlos Angulob , Beatriz Pereira c, Cristina Del Barrio
and Katerina Ananiadoud
a
School of Psychology and Counselling, University of Surrey Roehampton
b
Faculty of Human Motricity, Technical University of Lisbon
c
Institute for Childhood Studies, University of Minho
d
Department of Psychology Universidad Autonoma de Madrid
Abstract
Definitional issues
Adult bullying in the workplace has been the focus of

systematic international study for the last five years
but there are few cross-cultural comparisons of the
phenomenon. In this paper, we report the findings
from a cross-cultural investigation into employees
perceptions of social and organizational work
conditions and experiences of bullying and social
exclusion at work. Employees from companies in
Portugal and the UK completed the Workplace
Relationships Questionnaire (WRQ). We present the
results of the analysis of the links between: a) who is
bullied and who bullies; b) the extent to which
bullying affects victims and non-bullied colleagues.
We discuss the differences and similarities between
the two countries and some of the benefits that arise
from doing cross-cultural research.
Rayner and Hel (1997) grouped workplace bullying

behaviours into the following types: threat to
professional status, threat to personal standing,
isolation, overwork and destabilization.
Other
researchers include in their definitions the concepts
of relational bullying in which the bully damages
the victims friendship networks, and indirect
bullying (Bjrkqvist et al., 1994a) perpetrated by a
third party, such as rumour spreading. Relational
bullying and indirect bullying have in common the
expression of social manipulation, and can often go
unnoticed by others. Physical bullying or unwanted
physical contact have also been included in some
studies (Fitzgerald et al, 1997). Factor analyses of
questionnaire items have generally yielded some
five or six factors, covering concepts similar to those
cited by Rayner and Hel but including social
isolation, and spreading rumours (Zapf, 1999).
Keywords: Adult bullying, bullying in the

workplace, aggression, workplace relationships
Introduction
In the past five years, the problem of workplace
bullying has been extensively investigated by
researchers in Scandinavia (Bjrkqvist et al, 1994a;
Bjrkqvist et al, 1994b; Einarsen & Raknes, 1991,
1997; Einarsen & Skogstad, 1996; Leymann, 1990,
1996), in Germany and Austria (Niedl, 1995, 1996;
Zapf et al, 1996), in Portugal (Almeida, 1992; Lima,
Vala & Monteiro, 1994; Monteiro, 1993; Sousa &
Vala, 1999; Theotnio & Vala, 1999), in the UK
(Adams, 1992; Cowie et al, in press; Crawford,
1997; Quine, 1999; Rayner, 1997; Rayner & Hel,
1997), in Ireland (for example, OMoore, Seigne,
McGuire and Smith); in Australia (McCarthy et al,
1995, Sheehan & Barker, 1999); and in the USA
(Brodsky, 1977; Baron et al, 1999; Keashley et al,
1994).
The few studies that make direct crosscultural comparisons highlight the definitional
problems that beset this field.
Bullying is usually taken to refer to negative acts

directed at a person as an individual; but negative
acts can be construed as being related to wider
cultural constructs such as gender, or ethnic group;
in such cases, terms like sexual harassment or racial
harassment may be used. While some degree of
repetition is usually thought to characterise bullying,
there is no agreement on the extent of frequency and
duration needed to define it. Anecdotal accounts
(Adams, 1992; Randall, 1997) indicate the belief
that a colleague can bully another person without
demonstrating regular behavior, for example through
even a single threatening act. Einarsen & Skogstad
(1996) consider that behaviours that have taken
place within the last six months now and then or
weekly can be defined as bullying. More
stringently, Leymann (1990) suggested a criterion
with regard to frequency as being around one
incident per week over a period of at least 6 months.
Bjrkqvist and his colleagues (e.g. Bjrkqvist et al.,
1994a) investigate persistent behaviours within the
past year. (See Hel et al., 1999, for a further
review of these criteria).
Some imbalance of power is usually thought to

characterise bullying. Einarsen and Skogstad (1996,
p. 187) argue that a person is bullied if he or she is
repeatedly subjected to negative acts in the
workplace, adding that to be a victim of such
bullying one must also feel inferiority in defending
oneself in the actual situation. This means that they
do not limit their definition of bullying to a set of
objectively predefined negative acts; furthermore,
they invoke the subjective experience of the victim.
Who decides whether there is an imbalance of
power? Einarsen and his colleagues and Rayner &
Hel (1997) particularly focus on the victims
perspectives and experiences of the phenomenon of
bullying. The measurement of internal and external
perspectives on the phenomenon, including the
reactions of the victims, their perceived power in
relation to the perpetrator, the intent of the
perpetrator and the social/organizational contexts in
which bullying takes place, are vital considerations
in measuring workplace bullying (see also Brodsky,
1977). Additionally, it may be useful to consider a
range of perspectives within the same work setting,
to include not only victims but also perpetrators and
co-workers (Baumeister, 1990).
The values and norms of the workplace (both formal
and informal) influence how bullying is defined in
that context, how employees interpret situations (for
example, as bullying or firm management), and
whether bullying is recognized as a problem in the
company as a whole.. Einarsen and his colleagues
(e.g. Einarsen & Raknes, 1991; Einarsen and
Skogstad, 1996) view the culture of the workplace as
a form of filter through which behaviours are
interpreted and through which a range of behaviours
are accepted or tolerated. Sheehan (1998) discusses
the impact on the cultural values of an organization
when major restructuring, for example downsizing,
takes place. Sousa & Vala (1999), in a study about
organizational culture, concluded that where
management is perceived as fair in other words,
where the predominant set of values in the
workplace includes the concept of justice employees are more receptive to change and are
more open in their relationships towards one
another. Theotnio and Vala (1999) investigated the
influence of organizational culture in the way in
which justice and injustice are construed by workers.
These studies of workplace values and norms
highlight the need to study workplace bullying
systemically and at different levels, from individual
through to organizational. In the context of the
cross-cultural investigation of workplace bullying,
these issues are particularly salient.
We argue that the dearth of cross-cultural studies in
the field arises from both operational and conceptual
differences of definition as well as from concerns
about taking true account of contrasting cultural

values and organisational practices. For example,
the incidence of bullying across cultures varies
widely (ranging from 3% to 50%) depending on
whether the frequency of bullying is defined as
within last six months, over six months or ever
in your career (Hoel et al, 1999). The highest rates
occur when victims label themselves and define the
frequency as ever in my career.
Leymann
estimated that 25% of Swedish workers could
experience mobbing at some point in their lives,
while, using similar criteria, Rayner found the figure
for the UK to be 50%. When stricter definitional
criteria were adopted (once a week for six months),
and where additionally participants identified
themselves as victims, Niedl (1995) found an
incidence of 7.8% in Austria compared with
Leymanns (1990) incidence of 3.5% in Sweden.
Hoel et al predict that, as cultural definitions
converge, six months duration will be taken as a
criterion, that once a week will be the criterion for
frequency, and that the victims reaction and
perceived state will also be taken into account. So,
although cross-cultural comparisons are difficult to
establish, there is a move towards international
collaboration by researchers in the attempt to
understand the phenomenon more deeply. For
example, the European Union has funded the present
study under the Training and Mobility of
Researchers initiative Bullying and social exclusion
in schools and the workplace with the direct aim of
furthering cross-cultural understandings through
mutual enquiry and the sharing of expertise.
In the present study, we were very aware of the
differences amongst companies in the two European
countries involved. Nevertheless, we identified the
following commonalities. In each company, there
was a concern on the part of Human Resources and
senior management about the problem of workplace
relationships and a willingness to give researchers
access to employees perspectives on the workplace
environment and on the quality of workplace
relationships. Additionally, in each research team,
following extensive discussions, there was a shared
agreement on the definitions of types of bullying,
duration and frequency to be used in the
investigation. These discussions were on-going
throughout the study and led to a shared decision to
adopt the Workplace Relationships Questionnaire
(WRQ) which, despite slight modifications, was
essentially the same in each country. There was also
a shared concern to identify the perspectives of
victims and non-bullied colleagues. Finally, in each
country there was close collaboration and
consultation with the Human Resources departments
in the companies involved.
130
Methodology
Participants
This study employed a 54-item self-completion
questionnaire (WRQ), which was distributed
amongst employees of large international
organisations in both the UK and in Portugal.
Data were collected from 386 participants in the UK.
Fifty-two percent of the sample was male, and 48%
were female. Ages ranged from under 21 years to
over 50 years, with fifty-three percent of employees
aged between 30 and 50 years of age. Over a
quarter of employees were in their current job for
less than one year (26.6%), for one to two years
9.7%, for two to five years 27.4%, for five to ten
years 8.2%, and for ten years plus 28.2%. Three
hundred and fifty-nine participants (94.2 percent)
were white; the remaining 5.8% were from ethnic
minority groups (Black or Asian).
In Portugal, data were collected from 221
participants. Eighty-two percent (82%) of the sample
was male, and 18% were female. Ages ranged from
under 18 years to 57 years, with 49% percent of
employees aged between 22-30 and 42% in the
range 31-40 years. A small number of employees
had been in their current job for less than one year
(9.5%), for one to two years 20.2%, for two to five
years 32.1%, for five to ten years 46.4% and for ten
years plus, 1.2%. The majority of participants were
white (96.4%); 3.6% were from ethnic minority
groups (Black or Asian).
Questionnaire
The questionnaire used in this study consisted of
scales measuring work relationship and work
environment variables, questions on the experience
and perception of bullying in the workplace, and
questions relating to demographic characteristics. In
this study the following measurements were
included:
Bullying behaviour measures. Participants were
introduced to the following definition of bullying
before answering questions on the experience and
perception of bullying in the workplace:
Bullying is negative behaviour that occurs
repeatedly over time and causes distress. It includes:
threat to professional status (for example, public

humiliation, belittling opinion, accusations
about lack of effort),
threat to personal status (for example, offensive
remarks, name-calling, insults, intimidation,
devaluing with reference to age,
isolation
(for
example,
physical/social
exclusion, preventing access to opportunities,
withholding of information,),
unrealistic workload (for example, impossible

tasks and deadlines, unnecessary interruptions),
destabilisation (for example, removal of
responsibilities, failure to give credit when due,
meaningless tasks, setting up to fail),
unwanted physical contact.
To call something bullying the person (or persons)

confronted has to experience a feeling of inferiority
in defending himself or herself in the situation
Three measures of bullying were used. 1) Six
single questions addressed whether the participant
had been subjected to the bullying behaviours
outlined in the definition in the last six months. The
response options were no, seldom, now and
then, about once a week and many times a
week. 2) Those participants currently experiencing
bullying at work were asked to indicate when the
bullying started (within the last six months,
within the last year, or over one year), the status
of the perpetrator (manager, colleague and/or
other, please specify) and the strategies used to
cope with the bullying. 3) The Bergen Bullying
Index, consisting of five items, measured the degree
to which bullying is perceived to be a problem at the
participants workplace and for the participant
personally. As in previous studies, the Bergen
Bullying Index had high internal reliability
(Cronbachs Alpha = 0.95) with all item-total
correlations above 0.74.
Whilst adjustments were made in the translation
from English into Portuguese for cultural and
language differences, the two versions of the
questionnaire were essentially the same.
Results
Statistical analysis was undertaken in SPSS 9.0 and
took the form of a cross-cultural analysis of the
demographic characteristics of participants subjected
to bullying in the workplace, the status of the
perpetrator, and (for the UK sample only) the
differences in the perceptions of the quality of the
work environment between those who experience
bullying and those who perceive bullying.
Factors of age, gender, ethnicity and length of
service in relation to being bullied
For the purposes of this study, the victims were
defined as those individuals who experienced one or
more of the bullying behaviours repeatedly over
time.
Of the total UK sample, 84.6% of participants were
non-bullied (nevertheless, 47.4% of this group
reported some experience of bullying behaviours in
the workplace) and 15.4% identified themselves as
victims. For 30.5% of the victims, bullying started
within the last six months; for 13.6% of victims,
within the last year, and for 55.9% of victims, more

than one year ago.
Of the total Portuguese sample, 66.5% of
participants were non-bullied (yet in this group, 23%
reported some experience of bullying though they
did not define themselves as victims) and 33.5%
identified themselves as victims. For 31.9% of the
victims, bullying started within the last six months;
for 21.7% of victims, within the last year, and for
46.4% of victims, more than one year ago.
Pearsons correlations were computed between the
total scores of the bullying behaviour questions and
the demographic characteristics for the UK and
Portuguese sample.
The degree of bullying
behaviours experienced by the participants in the
UK sample correlates significantly with length of
current job only. The direction of the correlation
suggests that a high degree of experienced bullying
is associated with longer length of current job (r =
.272; p < 0.01). The degree of bullying behaviours
experienced by the participants in the Portuguese
sample correlates significantly with ethnic group
only (r = .200; p < 0.05) suggesting that participants
form ethnic minority groups are more likely to
experience bullying behaviours.
Categories of bully: managers, peers or others
In the UK sample, nearly half of victims were
bullied by their manager (49.2%), a further third
(33.9%) were bullied by other, and 5.1% were
bullied by a colleague. In 11.9% of cases the victim
was bullied by more than one category of bully
(manager, colleague, other). In the UK sample,
other represents the company or the system (46%),
another manager (29%), and miscellaneous (25%).
In the Portuguese sample, nearly a quarter of victims
were bullied by their manager (24.7%), about half
were bullied by colleagues (50.7%), 20.5% were
bullied by more than one category of bully
(manager, colleague, other), and 4% were bullied by
others.
The extent to which bullying is perceived to be a
problem in the workplace
In the UK sample, 28% of participants rated bullying
as a serious strain in their workplace. Of the total
sample, 41.5% of participants said bullying in the
workplace reduced their well-being, 40.2% said it
reduced their motivation and 39.5% said it reduced
their efficiency. In the Portuguese sample, 64%
rated bullying as a serious strain in their workplace.
Of the total sample, 71.8% said bullying reduced
their well-being, 71.9% said it reduced their
motivation, and 58.2% said it reduced their
efficiency.
Discussion
The proportion of victims in Portugal was twice as
high (33.5%) as the UK (15.4%) and there were
differences in the groups most vulnerable to bullying
(ethnic minorities in Portugal and those who had
longer company service in the UK). But a common
feature that the study highlighted was that around
50% of victims in each country had endured the
bullying for more than a year.
In the UK company we found that half of the victims
said that they were bullied by a manager. One third
of those bullied reported that they were bullied by
other of whom around 50% reported that the
other was the company rather than an individual
perpetrator. Qualitative data confirmed that in this
company there had been considerable change in
recent years involving downsizing and an
accompanying sense of insecurity amongst the
workforce. There were pressures to achieve high
levels of efficiency while, at the same time, the
company required employees to retain a high quality
of service. The fact that a substantial proportion of
the respondents had some experience of being
bullied despite the fact that they did not identify
themselves as victims
suggested that employees
were using their personal resources to cope with the
pressure but that, over time, these resources might
well be pushed to the limit.
In the Portuguese sample, by contrast, 50% of
victims were bullied by colleagues and one-fifth by
more than one category of bully. In this newlyestablished international company, there was keen
competition to retain posts and to achieve
promotion, with a resulting atmosphere of on-going
pressure on employees. Vulnerable individuals (for
example, those from ethnic minority groups)
appeared to be most at risk, and the competitive
culture seemed to give a mandate to those who
wished to abuse their power, whether formal or
informal, within the system. Strong individuals or
peer-groups would benefit at the expense of their
colleagues, but in the long-term this atmosphere
might be extremely destructive to the company and
employee morale would certainly suffer. This
interpretation is confirmed by the high proportion of
employees perceiving bullying as a serious strain
that reduced well-being, motivation and efficiency.
Where bullying is perpetrated by colleagues, the
behaviour is likely to be much more visible by larger
numbers of people; it is probably more intense and
the impact on victims more obvious. Here the
Portuguese data gave useful insights into the parallel
UK findings.
In the course of carrying out the analyses, we also
discovered a new category of employee affected by
the problem of bullying. These were individuals
132
who had experienced bullying behaviour but did not

identify themselves as victims. Predictably, victims
perceived bullying as a serious problem in their
workplace. However, those who had experienced
bullying behaviours but did not define themselves as
victims were also affected, and perceived their
workplace more negatively than those who were not
ever bullied. Again, the cross-cultural collaboration
enabled us to identify this group of employees and
suggested new avenues for future research.
Specific guidance could be offered to each company
on the basis of these findings. The UK results
suggest that there is an urgent need for management
to demonstrate more effective communication and
interpersonal relationships skills. There was also a
need for the company to develop policies to
integrate the achievement of high performance with
a greater evidence of personal support for
employees. By contrast, in the Portuguese company,
there is a need to develop structures that enhance
peer co-operation and that support disadvantaged
groups.
At a more general level, the present study indicates
the great value that there is in carrying out crosscultural research, despite difficulties of language and
distance. By working together with colleagues from
a different culture, researchers find that established
assumptions are likely to be challenged. In this case,
we discovered a category of employee that has
experienced bullying behaviour, does not identify as
a victim, yet appears to perceive the work
environment negatively. This group, that has the
strength to withstand bullying and also shows
awareness of the problem, may hold the key to a
resolution regardless of culture.
Finally, the
experience of carrying out this study has confirmed
for us the value of examining the problem of
workplace bullying systemically in its social and
cultural context.
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Telelephone: 0208 392 3510
Email: h.cowie@roehampton.ac.uk
134
The views of managers and recruitment specialists in relation to

migrants opportunities in recruitment and selection processes in
Australia
Amanda Daly a, Michelle Barkerb & Paul McCarthyc
a
Graduate School of Management, Griffith University, Australia
b
c
Abstract
Australias population is one of the worlds most
culturally and linguistically diverse. The proportion
of Asian immigrants can be reasonably expected to
rise significantly over the next 50 years. Despite
many of these immigrants holding recognised
qualifications and previous work experience, a high
proportion are faced with unemployment, or
employment in positions, which are not
commensurate with their knowledge and abilities.
This paper examines the views of managers and
recruitment specialists and is part of a larger study
investigating the experiences of South-east Asian
migrants in recruitment and selection in Australia.
Surveys were administered to Master of Business
Administration students who are currently employed
in management positions, and ten recruitment
consultants.
Content analysis of responses indicated managers
and recruitment specialists perceptions of the
difficulties that migrants face in recruitment and
selection, and their recommendations as to what
migrants may do in relation to enhancing their
behaviour
and
training
options.
Overall,
communication and cultural issues were seen as
central to the difficulties experienced by migrants in
recruitment and selection processes. The findings of
this study has implications for human resource
professionals and employment support agencies who
are actively involved with recruitment and selection
in general, or who specialise in assisting migrants
with job seeking. The need for intercultural
communication and diversity management training
is recommended.
Keywords
Cross-cultural communication; Recruitment;
Selection
Introduction
Australia has one of the most culturally diverse
populations in the world characterised by 160
different ethnic origins and more than 100 languages

(Industry Task Force on Leadership and
Management Skills, 1995). In June 1997, 23% of the
population was born overseas, with 14% of people
migrating from non-English speaking countries.
Today, Australias ethnic composition continues to
change with the intake of more migrant and refugee
groups
(Department
of
Immigration
and
Multicultural Affairs, 1999).
As commonly acknowledged, migrants from nonEnglish speaking countries are more likely to be
unemployed or employed in positions which are not
commensurate with their skills and qualifications
(Hawthorne, 1992; Bureau of Immigration,
Multicultural and Population Research, 1996;
Barker, 1994; Yuen, 1997; Mak, Westwood &
Ishiyama, 1993). Similar difficulties with obtaining
employment are not experienced by migrants from
English speaking countries (Bureau of Immigration,
Multicultural and Population Research, 1996;
Hawthorne,
1992).
Studies
investigating
unemployment amongst migrants from non-English
speaking backgrounds have identified four causal
factors: English language proficiency, qualifications
and work experience, migration status, and length of
residence (Yuen, 1997; Hawthorne, 1992). English
language proficiency and length of residence are
associated with communication competence and
knowledge of local culture (Andersen, 1997).
Cultural processes are learnt through observation
and imitation, and therefore, through increasing
length of residence and interacting with natural
speakers, a migrants abilities to communicate
effectively within another language and culture may
improve (Khoo, 1993; Smith & Bisazza, 1982).
Cross-cultural communication occurs when a person
from one culture sends a message, either
intentionally or unintentionally, to a person from
another culture (Hodge, 1987). An individuals
cultural
conditioning
influences
perception,
interpretation and evaluation of all messages,
(Hodge, 1987). Problems with cross-cultural
communication arise when participants assume
sameness, and they apply different notions of

appropriateness(Mead, 1998, p.143-144). Culture is
primarily expressed through implicit and subtle
nonverbal behaviours of which individuals have
limited awareness (Andersen, 1997). Fundamental
differences in cross-cultural communication involve
space and distance; facial expressions; gestures and
body movements; and, vocalics (Samovar & Porter,
1997). Other dimensions that affect cross-cultural
communication include physical appearance,
oculesics (messages sent by the eyes), time, and
patterns of touch. Furthermore, the style of language
use will alter the efficiency of communication.
Due to increasing globalisation, the transcendence of
national borders and the rise of multinational
organisations, the amount of cross-cultural contact
has increased dramatically. The Industry Task Force
on Leadership and Management Skills (1995)
identified international trade and productivity as
areas of concern for the Australian economy, with
nine out of ten of Australias fastest growing export
markets being non-English speaking countries. If
Australia is to succeed internationally, it is essential
that cultural diversity is celebrated and managed
effectively. Studies have shown that utilising the
advantages of a diverse workforce provides valuable
leverage when establishing trade and business
overseas (Guy & Newman, 1998; Jenner, 1994;
Smith & Carmody cited in Hay, 1996).
A substantial amount of international research has
focused on recruitment and selection practises
(Ryan, McFarland, Baron & Page, 1999; Wood &
Payne, 1998; Arvey & Campion, 1982). Managers
and recruitment specialists continue to use
recruitment methods that are limited in their ability
to attract a diverse range of applicants. Most
selection assessment devices used today were
designed by and trialed in white people for use in
predominantly white organisations where fluency in
the English language is automatically assumed
(Wood & Payne, 1998, p.4-5). Therefore, human
resource professionals need to look at using
methods, which will not exclude individuals because
of factors such as ethnicity and gender.
Extensive research has examined the efficacy of
various selection methods (Schmidt & Hunter, 1998;
Commission for Racial Equality cited in Wood &
Payne, 1998; Arvey & Campion, 1982). The most
important property of selection techniques is
predictive validity, which is defined as the ability to
predict future job performance, job-related learning
and other criteria (Schmidt & Hunter, 1998; p.262).
Interestingly, Schmidt and Hunters (1998) study
revealed relatively poor validity for unstructured
interviews (r=0.38), while structured interviews
were reported to have greater validity(r=0.51). Other
studies have found similar results (Dunnette & Bass,
1963; Mayfield, 1964; Arvey, 1979; Noone, 1991).

In direct contrast to the findings on validity, the
interview continues to be the most common form of
selection method that is used. Indeed, Wood and
Payne (1998) found that over 95% of employers
surveyed use interviews for all job types.
An applicants success at interview is strongly
related to the interviewers perceptions and
interpretations
of
verbal
and
nonverbal
communication (Arvey & Campion, 1982). Using
culturally appropriate nonverbal behaviours
increases an applicants ratings (Arvey & Campion,
1982). Farr (1973) found that early impressions are
more important than factual information in
determining
interviewers
judgements.
As
interviewers interpret and weigh information
differently, inter-rater reliability is low and
interviewer experience does not alter reliability
(Arvey & Campion, 1982).
Increasingly, HR activities are being outsourced
(Klaas, Mc Clendon & Gainey, 1999). In the United
States, HR outsourcing generated $13.9b in 199
and is expected to reach $37.6b by 2003 (Klaas et
al, 1999, p.113). The benefits include reducing costs,
increasing incentives and accountabilities and
increasing access to specialised expertise (Csoko,
1995). Despite this trend, controversy surrounds the
question about who should perform the HR
activities. External agencies are seen to lack
organisation-specific knowledge. Further, Burton
and Ryall (1995) purport that executive search firms
are failing to recruit outside their known and
attitudinal pool of candidates.
Given the multicultural nature of Australian society
and on-going changes in the human resource
management sector, it is important to examine
employers and recruitment specialists perceptions
of the difficulties experienced by migrants during
job search. The study presented here is part of a
larger research project that examines the experiences
of South-east Asian migrants in recruitment and
selection in Australia. In particular, this paper
examines managers and recruiters responses in
relation to the problems experienced by migrants in
recruitment and selection. Additionally, it reports
managers and recruiters recommendations as to
what migrants need to do to improve their success in
job seeking.
Methodology
Participants
The sample for this study consisted of 41 students
undertaking a Master of Business Administration
(MBA) at Griffith University, and 10 Recruitment
Consultants.
136
Fifty-six MBA students enrolled on a part-time basis

completed a questionnaire before a scheduled
lecture. An essential criterion for inclusion in the
sample was participants professional experience in
the areas of recruitment and selection. Fourteen
respondents were excluded from the final sample
because they indicated that they were not employed
in management positions. Subjects were not
excluded if they were born overseas, or if they came
from a non-English speaking background (NESB).
A response rate of 98.2% was achieved, with 55
questionnaires returned. Those participants who
were not currently employed in management
positions were omitted, resulting in 41 valid cases.
The majority of participants were aged 31 to 40
years (N= 20), with 12 participants aged 25-30 years
and nine managers were aged 41-50 years. Males
comprised a significant proportion of the sample,
82.9% (N= 34), with only seven female subjects
identified.
Most respondents were employed in middle
management (N=25). Twelve respondents were
engaged in top management positions, and 4 were
currently employed as first-line supervisors. There
was an equal distribution of managers born in
Australia (N=20) and overseas (N=21). Of the
managers born overseas, 70% originate from a nonEnglish speaking country (N= 14). These countries
include: India; Belgium; Zimbabwe; Italy; Malaysia;
China; South Korea; Hong Kong; and, Japan. The
English speaking countries of origin were New
Zealand and the United Kingdom.
The distribution of respondents across industries was
as follows: Construction (N=2), Finance (N=2),
Health (N=5), Education (N=3), Retail (N=2),
Hospitality (N=4), Sales/ Marketing (N=7);
Government (N=6); Manufacturing (N=4) and Other
(N=6). Other industries include non-profit, transport
and communications.
Six recruitment agencies and Job Network agencies
were identified, and recruitment specialists were
invited to participate voluntarily in the study. The
agencies are based in Adelaide, Melbourne and
Brisbane and all are representatives of large
international recruitment consulting firms. The size
of each firm in Australia ranges between 500 and
1600 full-time employees. Participants were
required to be actively involved with recruitment
and selection.
Employees within two of the six agencies
approached in relation to the study declined the
invitation due to work commitments Ten
Recruitment Consultants (6 females and 4 males)
from four agencies agreed to complete a survey that
was administered by the researchers in a one-to-one

setting.
Participants were distributed evenly amongst the age
categories: three were aged between 25 to 30 years;
three were between 31 to 40 years; and four subjects
were in the 41-50 year age group. Most respondents
were born in Australia (N=6), two were born in
English speaking countries and two came from nonEnglish speaking countries. Countries include the
United Kingdom, South Africa, and Vietnam.
Questionnaire
This paper reports the analysis of the three openended questions included in the questionnaire. The
questions were:
What problems are migrants most likely to
experience in the recruitment and selection process?
What recommendations would you make to migrants
regarding their behaviour to improve their
opportunities in the recruitment and selection
process?
What recommendations would you make to migrants
regarding their training to improve their
process?
The responses from the two groups of subjects
(managers and recruiters) were content analysed.
Categories were identified based upon similarities in
the words used by respondents. The same categories
were used for both groups. Responses were tallied
within each category grouping. Due to the fact that
one respondent may have provided multiple answers
to each question, the total number in each category
represents the number of responses, not the number
of respondents.
Results
Respondents Perceptions of Difficulties
Experienced by Migrants
The perceived problems of migrants were grouped
into seven categories. The categories were:
Communication; Recognition of qualifications and
skills; Knowledge of recruitment and selection
processes; Culture; Racism; and, Attributes of the
interviewer. For example, the category titled
Communication included responses such as the
use of English, language difficulties and
problems with comprehension.
The most frequently reported response in the
category Recognition of qualifications and skills,
referred to the fact that employers were uncertain of
a migrants background and experience, and whether
their qualifications were recognised in Australia. In
the category Knowledge of recruitment and
selection processes, managers and recruitment

consultants stated that they believed that migrants
experience problems because of reduced awareness
of the system in Australia and a lack of
understanding of the process. Within the category
of Culture, respondents identified not knowing
the norms here and different cultural background
as sources of problems for migrants who seek
employment
in
Australia.
The
categories
Confidence, Racism and Attributes of the
interviewer were very small, with only one or two
responses in each category. Examples of responses
include:
lack
of
confidence;
racial
discrimination; and, interviewers resistance to
make changes.
The most frequently reported responses by managers

(39.1%) related to the category of Communication.
A further 31.7% of responses corresponded with the
category of Australian culture. In contrast, one
third of the recruitment specialists responses
(30.9%) were in the category Practise. Recruitment
specialists recommended that migrants practise their
interviewing skills and other skills related to
recruitment and selection processes. The categories
of Communication and Organisation both
reflected 19.2% of the total responses of recruitment
specialists.
The category of Communication was the most

frequently used category of response by both groups.
Almost 51% of the responses of managers and
44.4% of the responses of recruitment specialists
referred to communication difficulties as a major
problem for migrants seeking employment. Culture
was the next largest category for managers (30.5%)
and recruitment specialists (22.2%). Recognition of
qualifications and skills was more frequently used
by recruitment consultants (22.2%), than by
managers (6.8%).
Managers and recruitment consultants were asked to

recommend how migrants could use training to
improve their opportunities in the recruitment and
selection process. Predictably, there were some
overlap in the responses to this question and the
previous question about migrants behaviour. The
following categories were identified in relation to
training: Network; Courses; Research; English;
Cultural knowledge and skills; and Local
experience. Many of the responses were very similar
to those used in relation to the question about
migrants behaviour. The category of Network was
characterised by responses that suggested an active
involvement in affiliated groups. Examples of
responses within the category Courses include do
a job search training course; train in the
marketable courses which are high in demand; get
qualifications; and, ozify current qualifications
and upgrade if possible. The category English
included recommendations about language
training, and improving their communication
skills in English. The responses within the category
Research revolved around the issues of
investigating an employers requirements and
expectations. The category Local experience
included responses such as get as much experience
here as possible. Responses within the category
Cultural knowledge and skill are similar to the
category titled Australian culture used in relation
to the earlier question about migrants behaviour.
Here, responses include comments such as
understand local cultural preferences and
behaviour.
Respondents Recommendations about

Migrants Behaviour
Managers and recruitment consultants were asked to
recommend how migrants could improve their
process. Seven categories of responses were used:
Communication; Organisation; Australian culture;
Local people; Practise; Employment agencies; and,
Education/ skills. The category of Communication
included responses such as learn English; ask
questions; be frank and to the point; speak
clearly and, expand vocabulary. Within the
category
Organisation,
respondents
recommendations focused on the need to undertake
research about the targeted organisation. The
purpose of the research is to gain as much
information as possible about the interviewers and
the culture of the organisation. The most common
responses in relation to the category of Australian
culture include appreciate Australian culture; try
to Westernise; and, good manners. Responses
which were included in the category of Education/
skills include: do a job seek training course;
arrange a higher education; and local
qualifications or work experience. The smaller
categories of Local people, Practise and
Employment agency comprised responses related
to getting to know local people, and gaining
experience with recruitment and selection processes
through practise and utilising a employment agency.
Respondents Recommendations about

Training
Courses was the most frequently used category by

managers, with 29.4% of responses indicating
managers perceptions about the need for migrants
to undergo further education and training. This was
closely followed be the categories of English
(26.5%) and Research (17.6%). Interestingly, the
recruitment specialists identified the categories of
Network and Cultural knowledge and skills to be
very important, with the 31.1% of all responses
falling in these categories. 17% of responses from
138
recruitment specialists indicated that English is an

area in which migrants could benefit from further
training.
conveyed verbally. So therefore, learning a new

language does not immediately equate to
communicative competence. Given that most
communication occurs at the unconscious level,
it is unfair to expect migrants to be effective in
all forms of communication (Barker, 1994).
Nonverbal behaviours cannot be taught; they are
subtle processes, which can only be learned
through observation and imitation.

The results indicate that there is substantial
agreement between managers and recruitment
specialists about the problems experienced by
migrants, and the recommendations about how
migrants could improve their effectiveness during
recruitment and selection processes.
Interestingly the responses from both managers and

recruiters indicates that a substantial proportion of
respondents interpreted the word migrant in the
questions to mean a migrant from a non-English
Speaking country. As such, communication and
cultural issues were seen as central to difficulties
experienced by migrants in recruitment and selection
processes. The results in relation to the question
about perception of the problems migrants
experience reflect Hawthornes (1992) study of
migrant engineers. She found that communication,
culture and recognition of qualifications and skills
significantly affect a migrants performance in a job
interview.
It appears that managers and recruiters are aware of
the difficulties that many migrants experience in the
recruitment and selection process. However, studies
indicate that both groups continue to use practices
which are detrimental to a migrants success in
gaining employment, such as overemphasising the
importance of specific behaviour during interviews
(Ryan, McFarland, Baron & Page, 1999; Wood &
Payne, 1998; Arvey & Campion, 1982; LevyLeboyer, 1994). Surprisingly, only one manager
identified the interviewer as a potential source of
difficulty for migrants in the recruitment and
selection process. The respondent, who was from a
non-English speaking country, stated: the
interviewer may be resistant to make adjustments.
In theory, the responsibility for effective
communication is shared between both parties,
however, research suggests that in practice, this does
not occur (Hawthorne, 1992). FitzGerald (1997)
highlights the need for Australian managers to
examine their communication skills, as very few
managers are bilingual. He further purports that it
seems that Australians are the source of the problem
in this situation, rather than migrants (FitzGerald,
1997).
Since managers and recruiters saw issues regarding
culture and communication as fundamental to
migrants
success,
a
number
of
their
recommendations refer to areas for training. Specific
areas identified include:
Learn English and improve communication

skills. Only approximately 7% of a message is
Learn about and adopt the Australian culture.

The importance of cultural awareness must be a
two-way process if it is to be effective.
According to Mead (1988, p. 17), The manager
cannot expect to force-fit members of another
culture into his/her own culture. Mak,
Westwood, Ishiyama & Barker (1999) also
identified that migrants may resist learning and
adopting the social norms in a new country.
Such pressure to lose ones identity may result
in feeling resentful and devalued (Mak,
Westwood, Ishiyama & Barker, 1999). Studies
have identified the importance of managers
developing cultural awareness and expanding
their interpersonal skills to be more effective in
the area of cross-cultural communication
(FitzGerald, 1997; The Public Service
Commission, 1990; Industry Task Force on
Leadership & Management Skills, 1995).
Obtain
qualifications
and/or
upgrade
qualifications. Clearly, the need for relevant,
up-to-date qualifications is crucial in the
selection process. Of the 84 413 migrants
arriving in Australia in 1998-1999, 55.2% were
in the workforce prior to migration and 62.5%
of all migrants were skilled (Department of
Immigration & Multicultural Affairs, 1999).
Nevertheless, recognition of qualifications
obtained in another country is a source of
enormous difficulty for migrants in Australia.
Overall, there was considerable agreement between

the responses of managers and recruiters. The results
of this study reveal that they are able to identify
problems that migrants from non-English Speaking
countries experience when seeking a job in
Australia.
However
their
recommendations
regarding changing migrants behaviours and
training reflect misunderstandings about migrants
qualifications and abilities. There appears to be a
strong emphasis that communication problems are
attributable to the migrants. There is little awareness
of the potential limitations in their own crosscultural communication abilities, and the need for
managers and recruiters to seek training in working
effectively with clients from diverse backgrounds.
This study has implications for recruitment
specialists and managers, and those individuals
engaged in assisting migrants to gain employment in
Australia. Clearly, further investigation of migrants

experiences in Australian recruitment and selection
processes needs to be conducted. The authors plan to
analyse the findings of this study in the context of
the larger study that examines the perceptions of
migrants, as well as those of recruiters and
managers.
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The identification of key leverage variables impacting positive staff

attitudes
Jodee Drewa and David Holzworthb
a
Queensland University of Technology, Australia

b
Change Focus Enterprises Pty Ltd, Australia
Abstract
The aim of the present study is to identify the key
leverage variables that contribute to positive staff
attitudes for a medium sized government owned
corporation. A specially designed survey measuring
the corporations important staff attitude drivers
was administered to 250 employees. The survey
results revealed a 70% response rate (N=173).
Regression and discriminant analysis consistently
revealed job challenge to be the most frequently
occurring predictor of general attitudes, workgroup,
leadership and organisational climate variables.
First the results revealed that when jobs are
challenging, people are likely to be more satisfied
with the job, are less likely to think about leaving the
organisation, be more innovative and adaptive,
communicate more effectively, and demonstrate
more trust. Second the findings demonstrated that
challenging work is likely to occur for employees
when the job consists of a variety of tasks,
significantly impacts on the lives of others, utilises a
variety of skills, involves a degree of
unpredictability, makes use of open group processes,
decentralizes decision-making and encourages
innovation. The results highlight the value of data
analytic techniques employed in examining staff
opinion surveys both at the research and
practitioner level. Further implications for research
and practice are discussed.
Keywords:
Employee Opinion Surveys; Staff Attitudes; Job
Challenge
Introduction
Employee opinion surveys are utilised by many
organisations to diagnose staff attitudes. In an effort
to attract and retain quality staff and ultimately to
improve individual performance (Robertson &
Hinds, 1999) employee opinion surveys are a
beneficial source of information regarding levels of
staff motivation (Hinds, 1997), job satisfaction
(Cammann, Fichman, Jenkins & Klesh, 1983),
desire to turnover (Cook, Hepworth, Wall & Warr,
1981) organisational commitment and, reward
satisfaction (Camman et al., 1983) among others.

Surveys assist executives and managers to design
suitable human resource initiatives aimed at
maintaining or enhancing positive staff perceptions
(Camman al., 1983).
However due to the method of analysis employed,
organisations often fail to obtain optimum benefits
from survey data. It is common for many
organisations to rely on the interpretation of simple
frequencies with follow-up staff focus groups
designed to brainstorm suitable strategies. While this
technique may facilitate greater openness between
management and staff (French & Bell, 1995) it fails
to enable organisations to isolate the key variables
that have the greatest impact on overall staff
attitudes (Lake, 2000; Dignan, 1992). Without
knowledge of these key variables organizations limit
their ability to adopt cost effective approaches to
managing staff attitudes.
To overcome this problem organisations have
undertaken more rigorous statistical analysis of
surveys moving beyond simple frequency analysis
by employing bivariate and in some unique cases,
multivariate data analysis. An example of the value
of this type of analysis is that conducted by Sears, a
major American retail company, who developed an
employee-customer-profit chain model enabling the
company to focus their resources and efforts on the
key attitude variables that ultimately lead to
increased revenue growth (Rucci et al., 1998).
Through the use of statistical modelling Sears were
able to identify 10 of their 70 staff attitude survey
questions that captured the predictive relationship
between employee satisfaction and customer
satisfaction (Rucci et al., 1998). This type of
mathematical modelling demonstrates how staff
attitudes directly impact the bottom line.
Variables Associated with Positive Staff Attitudes
Like the methodology employed by Sears, effective
employee opinion surveys use measures that are
congruent with the organisations key goals,
objectives and strategies (Watt, 1999). Researchers
and practitioners such as Diment (1999) concur
recommending that the corporations espoused
values and behaviours should be measured to
142
identify gaps in actual and desired employee

attitudes. In this way the survey is designed to
inform the direction of the corporation by
ascertaining aspects of the human resource strategies
required to achieve corporate outcomes. Advanced
statistical modelling enables organisations to better
understand these relationships, which may or may
not be unique in different contexts and with varied
samples. Detailed below is a brief snap shot of
research conducted to examine commonly
researched employee opinion variables, including
general attitudes, job characteristics, role and
psychological states, workgroups, leadership and
organisational climate along with their associated
relationships.
General Attitudes. Dependent or outcome variables
most often measured by corporations include general
attitudes such as, motivation, job satisfaction and
intention to turnover (Cook et al., 1981; Camman et
al., 1983). Cammann et al. uses the expectancy
theory to explain the links between outcome
measure (i.e.., general attitudes) and work
environment variables (e.g., job characteristics,
leadership, workgroup). According to this approach
the consequences of variables such as job
characteristics and leadership are strongly linked to
valued outcomes [e.g., general attitudes including,
job satisfaction, turnover desire (Camman et al.)
reward satisfaction (Locke & Latham, 1990), social
reward satisfaction (Cammann et al.,) and intrinsic
reward satisfaction (Lee, 1998)]. Support for the
reciprocal nature of these variables is provided by
James and Jones (1980) who found in their study of
642 employees representing various industries that
work and task satisfaction, job challenge and
autonomy were direct and reciprocal causes of one
another. Other studies by, Harrison and Hubbard
(1980); Wright (1990); Gunter and Furnham (1996)
have also investigated the nature of these
relationships demonstrating variations in the
intensity and level of impact of work environment
variables and general attitude outcome variables
across samples and contexts.
Job Characteristics (JC). Hackman and Oldham
(1976) proposed that skill variety, task identity, task
significance, autonomy and task feedback are
important characteristics of all jobs. Numerous
researchers, confirm the finding that individuals
performing jobs with high levels of certain job
characteristics demonstrate high levels of
commitment (e.g., Harrison & Hubbard, 1998) and
job satisfaction (Harrison & Hubbard, 1998; Alpass,
Lang, Camberlain & MacDonald, 1997; Walsh,
Taber & Beehr, 1980). In another study Gow, Alfred
and Dossett (1974) found that the inverse of
intention to turnover, length of service, was
positively related to the job characteristic, autonomy
within work groups. Similarly Cammann et al.
predicted that job characteristics such as degree

unpredictability influences perceptions of job
challenge.
Role & Psychological States. Role and
psychological states are also associated with job
characteristics (Hackman & Oldham, 1976). For
instance, researchers have found that perceptions of
job challenge are demonstrated in jobs where
incumbents can use a variety of skills, the job
consists of a variety of tasks, the job is likely to
significantly affect the lives of other people and
incumbents receive decision-making autonomy in
their role.
Another well researched psychological state variable
is job challenge. McGee, Goodson and Cashman
(1987) found in their study of 132 employees in high
stress jobs that job challenge predicted satisfaction at
work. Likewise Jayaratne and Chess (1982) found
that one of the two best predictors of job satisfaction
for a sample of social workers was job challenge.
Job challenge was also found to be a source of job
satisfaction in studies of elder care workers
(Kadushin & Kulys, 1996); career tellers (Wright,
1990); professional working women (Shuhla &
Saxena, 1988); employees and managers of a large
manufacturing company (Walsh et al., 1980); public
sector executives (Grupp & Richards, 1975); air
traffic controllers (Smith, 1973); research and
development professionals (Hall & Lawler, 1970)
and military and ex-military personnel (Alpass et al.,
1997). Job challenge has also been associated with
positive performance outcomes as indicated in
studies by Taylor (1981) and Siefert, Jayaratne and
Chess (1991).
In contrast some studies have associated job
challenge with negative outcomes such as poor
interpersonal relationships, poor job-person fit, low
organisational commitment (Singh & Sinha, 1986),
and absenteeism (Spencer & Steers, 1980).
Nevertheless the importance of job challenge has
been evidence in numerous studies across a range of
different samples and contexts.
Work Groups. Where workgroups exist they have a
major impact on employees perceptions, behaviours
and performance (Cammann et al., 1983). An
important workgroup variable is open group
processes, which enable workgroup members to
freely express ideas, concepts, concerns and issues.
Cammann et al. (1983) has associated open group
processes with high job satisfaction, job
involvement, social-reward satisfaction and low
levels of intention to turnover. In another study
Wright (1990) found associations between job
satisfaction and commitment and cohesive, effective
workgroups for bank tellers. Work groups also
impact on perceptions of organisational climate as

demonstrated in research by Daley (1991).
Leadership. Research has found that the quality of
leadership impacts on general staff attitudes and
perceptions by acting as a conduit for decisionmaking, participation, goal clarification and
managing subordinate relationships (Camman et al.,
1983). The importance of leadership is exhibited in
research by Hersely and Blanchard (1982) who
found that leaders were important for ensuring
employee
involvement
in
decision-making
processes. Without such involvement employees
experience a lack of challenge in their roles and in
turn experience lower levels of job satisfaction
(Hackman & Oldham, 1976), and trust (Daley,
1991). Similarly, in a study of 264 bank tellers
people-orientated supervisory style was associated
with
job
satisfaction
and
organisational
commitment. Positive supervisory relations (Wood,
1970) and higher leadership support (Alpass, 1997)
has also been associated with high levels of job
satisfaction.
Organisational Climate. Although the methodology
with which to measure organisational climate is well
documented, debate exists in the literature over the
type of organisational dimensions that should be
measured (Furnham & Gunter, 1993). However,
studies have consistently revealed that organisational
climate variables impact upon general attitudes. For
instance, in a study by Gunter and Furnham (1996)
of public sector employees climate factors were
significant predictors of job satisfaction. More
specifically the relationship between job challenge
and organisational climate has been extensively
studied. Job challenge has been associated with
climate factors such as: greater communication
(Peeters & Meijer, 1995), improved trust (Daley,
1991), increased innovation and creativity (Amabile
& Gryskiewicz, 1989). Jacobs and Herbig (1998)
reported in their article of Japanese organisations
that challenging work was associated with
innovation, open expression of ideas and
adaptiveness. By employing regression analysis
Daley (1991) found a relationship between
organisational trust and job challenge. In yet another
study Thamhain and Gemmill (1974) found that
work challenge was positively and significantly
associated with openness of upward communication.
In sum studies reveal that organisational climate is
influenced by job characteristic and psychological
state (e.g., Gunter & Furnham, 1996), workgroup
(e.g., Cammann et al.) and leadership (e.g., Hersely
& Blanchard, 1982) variables.
In summary, numerous models have been produced
to demonstrate the interaction between job
characteristics, satisfaction, although in some cases
it may impede workgroup relations, organisational
commitment and contribute to absenteeism; 2) open

group processes are often associated with a positive
organisational
climate;
3)
decision-making
involvement and participative leadership are related
to job satisfaction, and 4) certain job characteristics
(e.g.,
autonomy)
positively
influence
job
satisfaction.
Study Aim
The aim of the study is to identify the key leverage
variables that achieve positive staff attitudes for
a medium sized government owned corporation.
Methodology
Sample
One hundred and seventy-three employees and
managers voluntarily participated in the survey. This
sample accounted for a 70% response rate.
Materials
The staff attitude survey contained measures
reflective of the needs of the corporation. The
complete survey consisted of sub-scales extracted
from the Michigan Organisational Assessment
Questionnaire (MOAQ) (Cammann et al., 1983);
Higher Order Need Strength Questionnaire
(HONSQ) (Warr, Cook & Wall, 1979);
Organisational Practices Questionnaire (House &
Rizzo, 1972); The Business Organisational Climate
Index (Payne & Pheysey, 1971); Managing
Management Climate (Gorden & Cummins, 1979);
and Corporate Assessment (Furnham & Gunter
(1993). These measures is presented in Table 1.
Procedure
Interviews were conducted with members of the
senior management group and a focus group was
held with middle level managers throughout the
organization to identify the corporations critical
success factors. Based on these interviews the
survey was designed to measure critical areas
requiring attention. The survey was sent to all staff
on a diskette and returned to an external provider for
processing and analysis.
Results
The survey was analysed using Statistica.
Discrimant and regression analyses were conducted
to isolate the most frequently occurring variable(s)
to impact on the staff attitude variables.
Discriminant Function Analysis
Discriminant function analysis was used to examine
what outcome variables (i.e.., organisational climate,
job satisfaction, intention to turnover) most
frequently predicted group membership among two
groups of subjects. For each staff attitude variable
responses were allocated either a positive attitude
group or a negative attitude group. For example, for
144
Table 1 The measures, variables and measurement sources used for the survey.
Variables
Demographics
General Attitudes
Job Characteristics
Measurement Scales
Division, Type of Employment (Full-Time/Part-Time), Salary, Length of Employment,
Position, Education Level, Gender
Overall Job Satisfaction, Social Reward Satisfaction, Intrinsic Reward Satisfaction, Influence
Satisfaction, Extrinsic Reward Satisfaction, Intention To Turnover, Internal Turnover Desire,
Internal Work Motivation, Self-Report of Effort, Job Involvement, Organisational
Involvement, Pay Attitude Summary Index, Pay Based On Performance Belief
Higher Order Need Strength
Psychological States
Freedom, Variety, Task Feedback, Task Completeness, Task Impact, Task Significance,
Required Skills, Training Adequacy, Pace Control, Degree of Unpredictability
Challenge, Meaning, Responsibility, Knowledge Of Results
Role States
Workgroup
Role Conflict, Role Clarity, Role Overload

Need for Affiliation (Manifest Needs Questionnaire)
Leadership
Organisational
Climate
Source
Corporate
indicators
MOAQ
Warr, Cook &

Wall (1979)
MOAQ
MOAQ
Steers &
Braunstein (1976)
Group Goal Clarity, Group Cohesiveness, Open Group Processes, Internal Fragmentation
Production Orientation, Control Of Work, Work Facilitation - Goal Setting, Work Facilitation
- Problem Solving, Work Facilitation - Subordinate Relations, Consideration, Participation,
Decision Centralisation
Quality of Service, Innovation, Direction,Communication,
MOAQ
MOAQ
Organisational Integration
Gordon &
Cummins (1979)
Adaptability, Top Management Receptiveness, Upward Information Distortion, Tolerance of

Error
House & Rizzo

(1972)
Open-Mindedness, Planning Future Orientation
Payne & Pheysey

(1971)
Trust in Organisations
MOAQ
scale ratings using 1 (strong disagree) to 3 (slightly

disagree) responses were classified as belonging to
the negative perception group. Those with ratings of
4 (neutral) to 7 (strongly agree) were classified in
the positive perception group. The variable most
predictive of staff attitudes was job challenge the
results of which have been reported.
Job Satisfaction. A significant difference existed
between staff with high (Mean = 6.0) and low (Mean
= 3.2) job satisfaction, for the psychological states:
meaningfulness, role overload and job challenge (F
(3,154)=16.840 p< .0000.
JC_Meaningfulness
p<.05 JC_Role Overload p<.001 JC_Challenge
p<.001).The other measures of psychological states:
job responsibility, knowledge of results, role conflict
and role clarity did not predict any difference.
Intention to turnover. There was a significant
difference between staff with high (Mean = 5.5) and
low (Mean = 2.4) intention to turnover and the
psychological states: low meaningfulness, role
conflict, low job challenge, and role overload. The
other
psychological
state
variables:
job
responsibility, knowledge of results, and role clarity
did not predict any difference (F (4,153)=15.301 p<
.0000. Meaningfulness p<.01
JC_Role Conflict
p<.01 JC_Challenge p<.01 JC_Role overload
p<.05).
Furnham &
Gunter (1993)
Regression Analysis
Standard regression analysis was conducted to
identify the independent variables that predicted
general staff attitudes. The regression analysis
results demonstrated that job challenge was the most
frequent variable that predicted general staff
attitudes. For the purpose of the paper only the
results regarding the key leverage variable: job
challenge will be reported.
General Attitudes. As depicted in Table 2 job
challenge significantly predicted performance on the
dependent
variables: job satisfaction, social reward satisfaction,
intrinsic reward satisfaction, influence satisfaction
and intention to turnover.
Organisational climate. As depicted in Table 3 job
challenge significantly predicted performance on the
organisational climate variables: innovation,
adaptiveness, communication and trust.
Job Challenge. Regression analysis was conducted
using job challenge as an independent variable.
Table 4 depicts the variables that predicted job
challenge. These variables included the job
characteristics:
required
skills,
degree
of
unpredictability, variety and task significance.
Table 2 Results of regression analysis for the dependent variables: general attitude and the independent
variables: psychological states.
Dependent
Variable
General Attitudes
Job Satisfaction
Social Reward
Satisfaction
Intrinsic Reward
Satisfaction
Influence
Satisfaction
Intention to
Turnover
Independent Variable
Job Challenge (.01)
Job Meaningfulness (.001)
Role Overload*R (.01)
Job Challenge (.05)
Role Conflict*R (.01)
Job Challenge (.001)
Job Meaningfulness, (.001)
Role Overload*R(.01)
Job Challenge*R (.01)
Role Conflict (.05)
Role Overload (.05)
R= .671
R= .450
F(7,151)=17.68
p<.000
R= .533
R= .284
F(7,151)=8.553
p<.000
R= .710
R= .504
F(7,151)=21.914
p<.000
R= .636
R= .405
F(7,151)=14.672
p<.000
R= .530
R= .281
F(7,151)=8.417
p<.000
*R Reverse scoring
Table 3 Results of regression analysis for the dependent variables: organisational climate and the independent
variables: psychological states.
Dependent
Variable
Organisational
Climate
Innovation
Adaptiveness
Communication
Trust
Independent Variable

Job Responsibility (.01)
Job Challenge (.01)
Job Responsibility (.01)
Role Clarity (.05)
Job Challenge (.05)
R= .573
R= .329
F(7,151)=10.556
p<.000
R= .508
R= .258
F(7,151)=7.511
p<.000
R= .534
R= .285
F(7,151)=8.589
p<.000
R= .546
R= .299
F(7,151)=9.185
p<.000
*R Reverse scoring
Table 4 Results of Regression analyses for the independent variable: job challenge and the dependent
variables: Job characteristics.
Dependent
Variable
Job Challenge
Independent variable - Job

Characteristics
Required Skills (.001)
Degree On Unpredictability (.01)
Variety (.05)
Task Significance (.05)
Discussion
The aim of the study was to determine the key
leverage variable(s) that most impact on staff
attitudes. This aim was achieved by finding that
overall challenging work was the most frequently
occurring variable.
Impact of Job Challenge on Outcome Variables
Based on the overall analysis, when the job is
challenging, people are likely to be more satisfied
with the job, are less likely to think about leaving the
organisation, be more innovative and adaptive,
perceive more positive levels of communication
R= .730
R= .533
F(8,149)=21.229
p<.000
exist in the organisation, and perceive greater levels

of organisational trust. There is a high level of
consistency with past research on the job
satisfaction-job challenge relationship and the
existing results. According to research by McGee et
al. (1987) and Wright (1990), employees
experiencing high levels of job challenge have
reported high rates of job satisfaction.
Convergence between the present study and past
research on reward satisfaction was also obtained.
Like the present study, researchers examining
reward satisfaction demonstrate an association
between job challenge and influence reward
satisfaction (Locke & Latham, 1990; OReilly,
146
1977; Cammann et al., 1983), intrinsic reward

satisfaction (Cammann et al.; Lee, 1998) and social
reward satisfaction (Cammman et al.). Likewise
consistent results were also obtained with
researchers investigating turnover rates (Cammann
et al.). As with previous research the present study
found that individuals with job challenge are less
likely to think about exiting the organization.
Lastly the present findings are consistent with other
research finding associations between job challenge
and organisational climate variables (Gunter &
Furnham, 1996); innovation (Jacobs & Herbig,
1998), communication (Peeters & Meijer, 1995) and
trust (Daley, 1991). However, the results are in
contrast to some studies that found associations
between job challenge and negative staff perceptions
(Singh & Sinha, 1986). Overall though there is a
strong convergence between the present findings and
those discovered by other researchers and
practitioners.
Variables Contributing to Challenging Work
Based on an analysis of job aspects the second major
finding indicates that challenging work is likely to
occur for employees under several of the following
conditions: variety of task, task significance, skill
variety, unpredictability, open group processes,
decentralized decision-making and innovation.
Job Characteristics. First job challenge is likely to
occur when the job consists of a variety of tasks, a
range of skills is required and the job is likely to
significantly affect the lives of other people.
According to the present findings job challenge is a
high predictor of job satisfaction. When applying
Hackman and Oldhams (1976) job characteristic
model this finding adds support to the contribution
job characteristics make to levels of employee job
satisfaction.
Unpredictability. According to the results the degree
of unpredictability about the job significantly
influenced level of job challenge. This finding
accords with Cammann et al. (1983) model which
proposes that the degree of job unpredictability
predicts perceptions of job challenge.
Open group processes. Parallel with the findings
another way to increase job challenge is to ensure
that within each team, people can express their
opinions openly. These results are consistent with
Thambain and Gemmill (1974) who found
associations
between
positive
workgroup
interactions and job challenge.
Decision-making. According to the leadership
research
decentralized
decision-making
and
participative leadership is associated with positive
staff perceptions (Camman et al., 1983). This
research is consistent with the present results

demonstrating significant relationships between job
challenge and the variables: decentralised decisionmaking and involvement in decision-making.
Innovation. Lastly challenging work is likely to
occur when leaders, managers and staff encourage
innovation and adaptability. This finding concurs
with past research such as that reported by Jacobs
and Herbig (1998) who identified an association
between job challenge and innovation.
Implications for Research and Practice
Future research should explore different analysis
such as structural equation modelling to identify
moderators and mediators that impact on the
relationship between job challenge and staff
attitudes. Camman et al. (1983) proposed that
psychological states mediate the relationship
between work environment variables (e.g., job
characteristics, leadership) and outcome variables
(e.g., motivation, job satisfaction). This type of
analysis will provide a greater understanding of the
job challenge staff attitude relationship. It will
further test the Camman et al. (1983) model as well
as the benefits organisations can gain from
conducting more advanced statistical analysis on
staff opinion surveys.
An important practical implication entails the
caution that should be exercised in reporting survey
data to managers. The purpose of the study was to
identify ways organisations could make best use of
survey data without becoming overloaded with an
abundant amount of analysis that is seemingly
irrelevant and does not offer cost-effective solutions
for informing human resource strategy. Data needs
to be usable and actionable to achieve optimum
benefits. Reporting too much data minimises
managers ability to achieve actionable ways to
improve or enhance staff attitudes.
Second due to the commercial environment many
organisations are operating within it is imperative
that in the future researchers and practitioners
investigate links between staff attitudes and
performance outcomes. For example it may be
possible to identify the impact staff attitudes have on
customer service and other relevant areas of business
performance. This would enhance our understanding
of the job challenge-performance link found by
Taylor (1981) and Siefert et al. (1991).
Lastly, it is recommended that future studies conduct
repeated measures to compare results and track
performance across time. This process will assist in
determining the value of strategies employed to
improve or enhance attitudes over time. Time series
data will also enable the organisation to refine the
statistical analysis employed to obtain maximum

benefit from the data collected.
Conclusion
In summary, the value of staff opinion surveys can
be optimised through the use of advanced statistical
analysis. The study isolated job challenge as the key
leverage variable for improving general staff
attitudes at the corporation under study. Future
research should be conducted to better understand
the impact of job challenge for staff attitudes, along
with identifying the implications for organisational
performance and other relevant variables.
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Privacy in the information age: Direct marketing on the Internet

Graham Eastona, and Louis Sanzognib
a
b
Abstract
Privacy, a fundamental right of people in most
democratic nations, has, in recent years become a
topic of great debate. In particular there are
pressing issues concerning the security of data
accessible via the Inter-net. To this end we critically
assess current literature about consumer privacy on
the Internet, the associated causes, effects and
possible solutions. We find that a method to
implement and enforce an all-encompassing
legislative approach to Internet privacy is yet to be
dis-covered. We also find that self-regulation
appears the only method of privacy protection that
has any chance of success in the short term.
Keywords
Internet; Direct marketing; Privacy of In-formation.
Introduction
With the Internet now accessed by approximately
160 million people worldwide (Russel,1999), issues
such as direct marketing and the use of personal
information on the Internet have become prolific.
Privacy is defined as removed or out of public view
or knowledge. Clarke (1998)4, describes the
current state of privacy as completely inadequately
protected against even current threats, let alone nearfuture threats.
Internet also have significant
concerns over their privacy on the Internet. The
major privacy concerns of Internet include (Wang et
al, 1998):
Concerns related to junk e-mail;
Web based advertisements that track usage

history through cookies;
Malicious programs that collect credit details

etc;
Concerns regarding the use and transfer of

private information; and
Concerns over distribution of private

information for purposes other than the original
purpose for which it was collected.
Of these concerns, four of the five are related to
direct marketing, target marketing and the trade of
personal information. Before these fears can be
answered, the reason for the use of personal
information must be briefly reviewed.
Numerous organisations, to differing degrees, both

public and private, hold personal information. Some
have statutory needs for the information, some hold
the in-formation for societies benefit, and others
simply hold the information so as to sell it on at a
price. Electronic information can now be easily
captured, stored, sorted, queried and communicated
in a very short period of time, at a relatively low
cost. This can make it extremely valuable for those
organisations wishing to target customers for their
products or services. The use of this information for
targeting purposes has greatly in-creased societies
exposure to direct marketing and in-creased pressure
on government and industry to resolve the problem.
The paper is separated into four main sections.
Consumer privacy is briefly defined, discussed and
its impacts analysed. Literature discussing possible
solutions to the privacy problem and the various
theories that have been proposed are then analysed.
We end with a conclusion with suggestions for
further research.
Direct Marketing on the Internet

This type of marketing assumes several forms, but
by far the most common is direct e-mail
communications.
De-pending on the type of
message, and the recipients relationship to the
sender, bulk promotional e-mail, is often referred to
as spam. Clarke (1997)2 describes spam as a
disparaging reference to unwanted promotional
postings or messages. In the current Internet
environment however, spam can be a marketers
dream. How else can you convey a message,
directly to a individuals mail box, with a high
chance of being read. Further if the reader shows
any interest by clicking a link, they can immediately
be noted as being interested, and the sender can
follow up with further e-mails to a potential buyer.
Cookies are also used by many Internet sites which
al-low the site to track the user to determine how
often they visit a particular site, or group of sites31.
Research into direct marketing from a privacy
perspective has two major historical threads. The
most notable is that of dataveillance, and a second,
more defined strain of research which has come to
150
the fore in recent years, that of profiling.

Dataveillance, (defined as the systematic use of
personal data systems in the investigation or
monitoring of the actions or communications of one
or more persons (Clarke1) whilst a core privacy
issue will not be discussed in any depth in this paper
as the issue of profiling is more relevant to the
Direct Marketing field. Online Consumer Profiling
is defined as the tracking of consumer preferences
and interests by observing the Web sites consumers
visit and their over-all browsing habits. Such
information is collected, aggregated and potentially
cross-referenced with other databases in order to
allow firms to target advertisements and product
information more accurately and efficiently (ITEC,
1999).
Despite the emergence of direct marketing over the
Internet, there is not a large amount of literature
avail-able on consumer profiling, however the US
Federal Trade Commission has announced it will be
investigating the issue through a public workshop
(ITEC, 1999). Clarke (1997)3 further contends that
profiling has sig-nificant negative effects on the
individual, stating that it may lead to firms ignoring
certain types of people and thereby limiting such
person access to information about goods and
services. These social effects of customer profiling
have yet to be researched in any great depth and
whilst there are definitely some threats, it is difficult
to see why companies would reduce their target
audience when the cost of direct marketing over the
Internet is immaterial on a individual basis.
Clarke (1998) discusses direct marketing in more detail, making note of the fact that in some states in the
US, direct marketing by fax is illegal, and questions
the real difference between faxing and e-mailing.
Although this is a strong point from a privacy
perspective, many of these laws have been passed
due to the severe inconvenience in terms of paper
usage and other costs associ-ated with fax machines.
The costs in terms of receiving e-mail is almost
negligible for an individual user, however there are
global costs in terms of system loading, bandwidth
usage and other network usage costs. Additional
connections could be made with telemarketing and
door to door sales techniques, which seem to invade
the privacy of users to an even greater extent.
Solutions to the problem

The issue of direct marketing on the Internet and
more broadly, consumer privacy on the Internet,
have been intensely researched and published in
recent years, with several schools of thought
emerging. Of these schools of thought, three have
come to prominence in the 1990s. The first two
propositions, those of government intervention and
self-regulation have existed for some time and have
been widely documented, however, a new paradigm
has emerged in the 1990s, that of a national

information market. This section will firstly discuss
the legislative approach to regulation and the flaws
that exist in the research. Then self regulation will
be dis-cussed, with the various methods and success
of self-regulation that has been implemented by
sections of industry to date and finally, the
information market theory will be reviewed.
The first and most common solution to privacy
problems is through legislation.
Governments
across the world are addressing the issue of privacy
with varying degrees of urgency. Research by
Banisar (2000) into the privacy legislation in
numerous countries around the world quickly gives
the reader a strong impression that there is no
worldwide conformity in privacy legislation. This
brings up a significant issue, how can privacy be
maintained in a global communications network,
that has no physical boundaries, if there is no global
standard for privacy on the Internet. Some, such as
Brin (1998) argue that privacy protections are futile
due to technologies constant progress and that
freedom of information is the key to privacy, or the
watched watching the watchers. Clarke (1998)5
counters stating the US Federal Trade Commission
findings that no effective self-regulation system has
emerged and the recommendation for the
government to legislate. No statement is made
however, on the difficulties in enforcing laws on the
Internet, due to its borderless nature. One could
look to the at-tempts to regulate Internet gambling in
several nations, including Australia, only to find that
legislation is futile as the operator can literally move
their operations to another jurisdiction and be
operational in a very short period of time at a
relatively low cost. Unless regulation over the
Internet is enacted globally, its effect is often
minimal and many operators can avoid being
account-able.
In a 1997 survey, over half of those not using the
Inter-net stated they would be more likely to use it if
their privacy could be protected (Hinde, 1998).
Condemnation from the Whitehouse and several
damning reports have helped create the Online
Privacy Alliance, com-prising a group of
approximately 50 companies from a broad range of
industries (Hinde, 1998). This group is currently
investigating various methods of protecting
consumer privacy. There are however, many against
self-regulation, (citing efforts such as the Direct
Marketing Associations (DMA) documented code
for fair in-formation practices, which although
promising, is not binding on its members) (Gellman,
1996) as the failure of industry to appropriately
regulate its members. At present, although these
arguments against self-regulation have some weight,
there appears little alternative.
Of particular interest to many organisations is the

topic of consumer trust. Whilst legislation can
create some comfort, consumer relationships are a
significant part of any business, including ebusiness. The creation of trust relationships, will not
only add to the privacy of users, but begin to force
non compliant operators to meet the a satisfactory
privacy standard, or face severe financial
implications. This view is backed by the Gartner
Group (Meehan, 1998), who state that a failure to
establish privacy policies that demonstrate a longterm, value-exchange proposition with consumers
will see their short-term benefits approach zero by
2001 (0.8 probability) (Mehan, 1998). The essential
statement made, is that if e-business operators fail to
create a trust relationship, there is little chance a
consumer will purchase goods from the business.
They instead will go to another, more trustworthy
competitor, or make their purchase offline.
These business benefits have not gone unnoticed and
self-regulation has been gradually adopted by some
organisations, although often not to the extent
required by privacy advocates.
The first
fundamental step of self-regulation as described by
Sullivan (2000), is to enforce organisations to
publish a formal privacy policy on their Internet
sites, specifying how the organisation intends on
using information gathered from users. Sullivan
(2000) proposes that customer relationships are
based on trust, and to successfully establish this
trust, e-business operators should make full
disclosure of their privacy policy. This concept has
a strong grounding and Sullivan (2000) furthers his
argument with the proposition that if organisations
are forced to disclose their privacy policy, it will be
in their best interests to ensure their privacy is near
best practice.
There is some evidence of privacy standards
beginning to evolve with organisations such as the
World Wide Web Consortium developing the
Platform for Privacy (P3P) privacy standard and
other programs developed commercially such as the
TRUSTe seal program. TRUSTe is described as a
third-party oversight seal program that alleviates
users concerns about online privacy, while meeting
the specific business needs of each of our licensed
Web sites. (TRUSTe, 2000). Sullivan (2000),
Wang (1998), Reagle & Cranor (1999) and others
have completed extensive research into the P3P
standard, which is currently still being revised. P3P
is described as a industry standard providing a
simple, automated way for users to gain more
control over the use of personal information on Web
sites they visit. (WC3, 2000) Whilst consumers are
generally in support of P3P and other standards,
many commercial enter-prises have large concerns
over the inauditability of these standards (Reagle &
Cranor, 1999). Additionally, significant support is
required from software developers to implement the

standard in their applications. There are however,
many supporters of P3P. Reagle and Cranor (1999)
add weight to this support of P3P, stating P3P will
reduce the need for government intervention and
despite some weaknesses, has a large amount of
support from major corporations. They further state
that P3P may create greater trust relationships
between web operators and customers.
Clarke (1998)5 goes as far as saying that selfregulatory initiatives such as TRUSTe cannot be
relied upon as a solution individually, which could
certainly be the case, however as, in the consumers
eye, privacy is an important issue, it may hold some
weight in separating the haves from the have-nots.
Benassi (1999) further states that TRUSTe, as a part
of the agreement with its members has the right to
engage a third party auditor, to review a member
who is believed to be digressing from its stated
privacy policy.
The auditor may conduct a
compliance review, from which TRUSTe will base
their corrective action, including the revocation of
the offending companies TRUSTe seal if it is
warranted. The auditability of a privacy standard is
imperative to its success, as an inability to audit
subscribers to the standard, will quickly reduce its
credibility and in this situation, its viability as a
solution. TRUSTe however, has also come under
significant criticism. In its brief three year history,
TRUSTe has never removed a seal from a web site,
despite several complaints. This may be due to the
reliance on revenues from its subscribers (although
TRUSTe states itself as a non-profit organization).
This conflict of interest could push TRUSTe, (and
like seal programs) into becoming an advocate for
industry, rather than consumers (Hunter, 2000).
TRUSTe has however provided a strong model to
increase privacy protection for consumers.
The literature surrounding self-regulation and the
various standards that have arisen often voice
conflicting arguments, with concerns over their
ability to truly protect privacy over the Internet.
However based on other propositions currently
being published, self-regulation does appear to have
the strongest case. At present, neither of the two
prominent privacy solutions (TRUSTe and P3P)
have the ability to truly protect privacy. P3P is a
very strong standard, but the ability to implement
and enforce the standard will be very difficult. Its
restrictions are considered by some to be severe and
may even be unattainable for many organisations.
TRUSTe on the other hand, appears to have a
greater ability to be implemented (evidenced by the
number of organisations that have taken up the
standard), however the standards imposed on the
organisations are seen by some as in-adequate. A
solution, implemented through a seal pro-gram (such
as that used by TRUSTe), with some of the strength
152
of P3P may have a significant positive impact on the

future of self-regulation of Internet privacy. There is
however, still some room for legislative backup
after these standards have been implemented.
The final method of privacy protection to be
explored is that of a National Information Market.
Laudons (1996) proposition is that privacy could be
enhanced through creating a model based on a
regulatory framework that individuals own the
information about themselves and can hold, sell or
use the information in any manner they see fit
(Laudon, 1996). Further research has been conducted into the issue, by authors such as Reidenberg
(1996) and Schonberge (1996). Earlier papers, such
as that of Kahn (1994), also explore the theory.
This solution, whilst innovative appears to have
many fatal flaws. First and foremost, the regulation
of such a market would be incredibly resource
intensive and the national concept may indeed fail
due to the Internets lack of boundaries.
Additionally, any attempts to globalise the
marketplace will run into significant boundaries. As
information laws around the world do not rely solely
of personal privacy, but also on freedom of information and these laws differ significantly around
the world (Schonberger, 1996). Earlier research by
Milberg (1995) raises a distinct yet similar concept,
that data-banks of information must be licensed, and
therefore their contents reviewed, again an
innovative concept, but again appears flawed due to
the global issues the Internet creates that cannot be
solved without global support. There is however,
some advantages of this method, as companies could
be forced to disclose their data stores of personal
information, which could then be reviewed by an
authorised body. Although this review process
could simply not cover all data stores currently used,
it could provide sufficient notice to companies that
their practices can be reviewed and penalties laid
down if required. This concept however, would
require significant legislative support, which would
be unlikely to be introduced in the short term.
Conclusion
Privacy is a serious issue, one that consumers,
government and corporations are taking very
seriously, but what is the true cause for this recent
fear for privacy, particularly in reference to the
Internet It appears that from much of the literature,
that government regulation is desired, however a
method to implement and enforce an all
encompassing legislative approach to Internet
privacy is yet to be discovered. Unfortunately, as in
many other areas of Internet law, the worlds
governmental (and perhaps political) infrastructure
is simply not able to legislate over the Internet
appropriately.
The concept of a National
Information Market also appears flawed for the very
same reason, the Internet is a global infrastructure, a

global marketplace and its members are part of a
global society. A national information market
simply cannot deal with the fact that many
organisations that use personal information of
Internet users, will not be in the same jurisdiction as
other Internet users. One can quickly look to current
problems in regulation the transfer/trafficking of
music throughout the world for an example of how
difficult cross-jurisdictional trade, (whether illegal
or not), is to regulate over.
Self-regulation appears the only method of privacy
protection that has any chance of success. Whilst
many authors are championing the various methods
of self-regulation currently prominent (particularly
TRUSTe and P3P), there are still some significant
flaws in these systems. Despite these flaws, selfregulation still has significant promise. TRUSTe
has had widespread sup-port from consumers and
operators due to its simple implementation,
auditability and brand-name. P3P, however, is seen
as being a stronger standard, but has some
limitations on its realistic implementation. It is
contended that a combination of these standards,
using a implementation model similar to TRUSTe
with some of the stronger standards imposed by P3P,
will result in a much more effective privacy tool for
consumers and give them a real privacy option
when deciding where they wish to frequent on the
Internet.
Government regulation is still a desirable addition to
privacy protection, however it will most probably be
some time before a realistic set of laws can be
implemented and enforced. It may well be up to the
major government bodies of the world (the European
Union, US and UN) to develop a template set of
privacy laws, that can be easily implemented in
other nations, but this may be unlikely to occur
given the varying styles of government, cultures and
requirements. Government regulation is unlikely to
ever be a total solution, how-ever it may provide
some weight to a large number of organisations
(particularly in the U.S. and Europe) and support a
self-regulation model. It is difficult to see privacy
becoming totally protected in the short term,
however certain measures can dramatically improve
its current state and set a platform for the future.
It is felt that the future of online privacy will most
probably be based upon the ability of governments
to adequately regulate the Internet. Extensive
research has been conducted into regulation over
finance, tax and cryptography to name but a few
areas of significance. As yet, little of this research
appears to have been applied to the current literature
available relevant to privacy. The difficulties other
industries and governments have had attempting to
regulate the Internet have a direct impact on the
current propositions to enforce privacy through

legislation. So far, no government has been able to
effectively regulate the Internet (with per-haps the
exception of China which severely limits access
through government run ISPs). It is therefore
difficult to conceive why many authors and
researchers into privacy have yet to incorporate the
difficulties in regulating the Internet into their work.
The topic of direct marketing on the Internet has
been well covered, however, issues such as data
profiling do not have a significant body of
knowledge and the next stage of research could
perhaps be focused on profiling and its effects on
society.
Privacy, like many areas of significant interest
surrounding the Internet, may be waiting for a lead
from another industry or field to develop a
appropriate working model and perhaps at this stage,
further research will only pro-vide the same
answers, that law and legislation need to catch up to
technology in a general sense, before specific issues
can be tackled in depth.
Some of the self-regulation issues, however, have
some merit. Further research into the customer
reaction of sites that actively promote their privacy
standards would be of great benefit. If sizeable
gains can be made by organisations who promote
and adhere to strong privacy policies, then it can
assured that other operators will follow suit.
However, it is contended that this research may need
to be conducted with a focus on consumer
understanding of privacy issues on the Internet, as
with-out that understanding, the marketing effort
may fail.
References
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Rights: An International Survey of Privacy
laws
and
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Http://www.gilc.org/privacy/survey/execsummary.html.
Benassi, P. (1999) TRUSTe: An Online Privacy Seal
Program, Communications of the ACM,
Vol.42, No. 2.
Brin D. (1998) The Transparent Society AddisonWesley, 1998
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Journal of Law and Information Science Vol 4,
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R.
(1997)
Spam.
Http://www.anu.edu.au/people/Roger.Clarke/II
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Services
Sydney
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1997).
Http://www.anu.edu.au/people/Roger.Clarke/D
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(1999), Federal Trade Commission Set to
Explore the Practice of Consumer Profiling on
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htm#Federal Trade Commission Set to Explore
the Practice
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Evolution of the Internet. Communications of
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Laudon, K. C. (1996) Markets and Privacy.
Communications of the ACM, Vol. 39, No. 9.
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Kallman, A. (1995) Personal Information and
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the ACM, Vol. 38, No.12.
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Fast and Slow Movers. Gartner Group
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Privacy. E-Business Advisor, April 2000.
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Consumer Privacy Concerns about Internet
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Popular search engines: How successful are they in leading new

customers to your ebusiness?
Luke Elin a, Louis Sanzognia and Lisa Pomery b
a
Faculty of Commerce and Management, Griffith University, Australia

b
Brisbane Institute of TAFE, Australia
Abstract
We investigate the steps involved in positioning a
business on the Internet in terms of its placement on
search engine lists. The reasons why search engines
exist and the basic mechanics of their operations are
explained. We discuss various techniques and
strategies for search engine choice and targeting,
the time frame in which a listing maybe expected to
appear on a listing, and how to maximise search
engine ranking. Finally, popular search engines are
Benchmarked in terms of their relative size and
traffic using data from independent and verified
sources.
Introduction
Many business both large and small are turning to
the Internet in an effort to increase their profits; By
doing so they are required to learn a new way of
conducting their business. Many businesses have
traditionally relied on advertising to increase the
publics awareness about what the business offers
potential customers, by going online businesses are
faced with the challenge of finding new customers
on the internet. This important factor cannot be left
to chance; Submitting a site to a popular search
engine will not solve the problem.
For most businesses today being on the internet is an
essential component to keeping a competitive edge,
all to often however, just being on the Internet will
not going to bring needed customers to a site. Even
the expenditure of large amounts of time, effort and
money is no guarantee of a successful site on the
Internet. One the most significant problems (on the
internet) is that most of the traffic is generated
through customers using the most search engines,
and as most business register with only the most
popular search engines, it is becoming increasingly
difficult to be noticed on them. Therefore one of the
issues that the paper deals with is the ability that
popular search engines exhibit in leading new
customers to your eBusiness.
Previous literature has discussed the basic
mechanisms of how search engines work, the fact
that many popular search engines have become

politicised, the different strategies for gaining a
desired listing and position and how search engine
relevance is becoming are growing concern.
The paper shows how search engines work, which
ones a business should consider listing in, when to
submit to search engines, the ranking effectiveness,
benchmarking, the size of the search engine
databases and the traffic levels received. After all a
business on the internet needs to determine what
search engines should be targeted in order to
maximize the benefits of the traffic that it will
receive. Further discussion is then held on using
premium placement services for search engine sites
in terms of cost and the possible benefits to be
derived for them.
Why are there search engines ?

Search engines enable the use of rational,
standardised search methods on the internet. The
internet, in its infancy, had thousands of pages and
no adequate method to find specific information in
them. What was need was the online equivalent of
the yellow pages. Today these search engines have
evolved into massive sites which provide
information on many different topics and interest
groups. Search Engines now take two basic forms
either web directory or web portal service.
Web Directories (example: yahoo.com ) were
created so that people could browse for information
in specific categories. This style of search engines
works well for businesses, allowing people to search
using keywords as well as surfing facilities to
browse through the categories until they find what
they are looking for.
Web Portals services (example : altavista.com) are
basically the second generations of search engines.
Most started life as a simple place for people to find
websites. A portal services doesnt provide the
ability to browse through sites, it simply allows for
searching of them. Portals have developed, and now
they supply vast amounts of information and
resources to instigate first time users to become
156
regular users and establish a large pool of followers.

The information can include weather reports, maps,
news, entertainment, competitions and much more.
The paper refers to both web directories and web
portals services collectively as search engines.
How do they work ?

Search engines work by supplying the user with a
place to enter a query. The query is basically a
question or enquiry that the user has. It can take the
form of a question, a series of keywords or a
statement. Once the search engine receives the query
it then breaks it down in to its basic elements and
begins a process of matching the queries terms with
web page locations stored in its database (The search
engines actually store a small amount of every page
it visits in its database). This whole process occurs
in a matter of a faction of a second and the results
found are then displayed to the user.
While this process may sound very simple each
search engine uses a very complex series of
mathematical based algorithms to the generate
results. The process of how individual search
engines generate their results is extremely secretive
and it is refined and changed regularly. The search
engines do this for one main reason, and that is to
help generate more meaningful answers to the
queries entered. There are people who study the
different search engines constantly in an attempt to
get the best position for the particular query entered.
Many people often complain about how difficult it
is to search the internet for an item of interest using
search engines. There are a couple of reasons for
this problem. The first reason is the shear size of the
databases the search engines negotiate ( they
typically range in size from 6 to 300+ million pages
listed). The second is that many user dont use
queries which are specific enough. A person
looking for travel information and ticket prices
might initiate the search by typing in travel, this
action would result in a huge number of pages being
displayed by the search engine many of which will
be completely useless. It would be like going into a
large library and walking up to the librarian and
saying the word travel. Whilst the librarian might
be able to point roughly in the direction of travel
books they will not be able to tell you exactly where
to look. Search engines work just like this without
very specific information they will not be able to
produce any meaningful results.
Some search engines are now providing users with
some limited feedback on the results pages before
the actual listings. This feedback normally is a
refined search query that has previously be used by
other users looking for the same things. Until more
people start using the more specific search queries
the search engines will only be able to best guess

what a user wants.
Which search engine should you consider

listing with?
There are in the range of 2,000 search engines of all
different descriptions on the internet today.
Generally as a rule a business is wasting time and
effort when listing with most of them. It is best to
list with 10-15 majors and then hunt down the search
engines which are more specifically focus to the
businesss potential customers.
There are two main issues that need to be considered
when selecting the other search engines a business
wants to be listed in and one major reason to try and
get a listing in the first place.
The first issue is geographical focus of the search
engine. For example, a small local bakery in a
country town in Australia with an internet site it
would not try to get a listing in search engine like
EuroFerret.com which is aimed at a European
audience. The best place for it to list would be
somewhere like WebWombat.com which although
an international search engine it mostly has an
Australian based audience.
The second issue is to do with those people using the
search engine have the capacity to buy products
offered by the business. Many of the smaller search
engines focus on a specific group of users. If the
business is about selling wholesale holiday packages
one should not try to get a listing on a search engine
which provides cruise information to retired people,
one would want a search engine which focuses on
resellers of such packages. Believe or not the are
search engines which cover just about niche
category ever known.
The major reason for wanting to list with these much
smaller search engines is that their traffic is even
more highly qualified and should produce even
better results for the business, although the traffic
levels will be some what lower than the majors.
When will it happen?

When a business first sets out to list its site on the
major search engines (techniques explained later in
the next section) one should be aware that it can take
up to 2 months to get a listing. So, some planning
must going into deciding when to list. Many sites
are now trying to coordinate dates when they will
appear on the search engines and try to make a big
entrance on the internet all at once, see Table 1.
Table 1 Lag time, from request to placement

Search Engine
Time Taken
Fast
2-3 Days
Northern Light
6 Weeks
AltaVista
2-3 Days
Google!
Unknown
Excite
3 - 4 Weeks
Anzwers
4 6 Weeks
IWon Inktomi
2 3 Weeks
Yahoo!s Inktomi
2 3 Weeks
AOL Inktomi
2 3 Weeks
Lycos
2 3 Weeks
Infoseek
6 Weeks
HotBot
4 Weeks
WebCrawler
2 Weeks
(source : All these figures have come from the individual search
engines listed )
Search Engines Submissions and Effective

Positioning
The effectiveness of the popular search engines in
generating new potential customers is dependent on
the businesss site gaining a good position in the
results pages of user searches. Basically if the
business is not listed within the first 30 pages in the
results it highly unlikely that it will be noticed and
clicked on.
All the search engines base their results on the
content of the pages stored in their databases. Every
search engine has a different algorithm for the
results it generates, but searches are based around
four simple principles.
Keywords : - These are stored in special HTML

tag called a meta tag at the top of any web page.
These keywords help describe the contents of
the page to the search engine. They are also
used to judge where your site should be ranked
in the results. This is done by comparing the
query against how many times the keywords
appear in the description and the pages contents.
A number is then calculated which is called the
keyword relevancy. Keyword relevancy is
given as a percentage and is used to compare
your site against the others stored in the
database.
Description : - This also is a meta tag in which a

description of the businesss site is given. Often
search engines will also use this as the
description listed in the results itself. It is
important that the description contains a some
the of the keywords used. This helps keyword
relevancy rating as well.
Page content :- Many of the search engines are

starting to use the actual contents of the page as
a way of measuring where a business should be
positioned in the results. It is important when
designing a site which is heavy on graphics to
give the site a chance a getting a good position
by including a large amount of plain text where
possible.
Link popularity : - This is a relative new method
that is being used by search engines to judge
how useful the page is. Basically it tracks
how many other sites have a link back to the site
and uses this to rank the business. Link
popularity is fast becoming a preferred method
of ranking pages as it is a very difficult method
to fool. It is important to find as many other
sites as possible to link back to the business
site. This will help the future rankings of the
businesss site.
Generally speaking searches are based on series of

keywords or statements that are believed will yield
the type of results looked for. An example of this is
someone looking for more travel information about
Australia; they might simply try the words travel
+Australia. These two words when entered into
Altavista
by
the
authors
(Reference:
http://www.altavista.com/)
generated 6,796,485
result pages. A searcher is unlikely to click through
more than 3 pages of the results searching for what
they are looking for.
So in order to get noticed a good position strategy is
required. Especially in terms of mean search time,
effort and possibly money. Five different methods
of positioning strategies listed .
1. Self promotion
The very first method of marketing on the
internet was D.I.Y., getting out there and
visiting all the search engines that a business
wants to promote its site in. This method is
excellent as it gives more of an insight and
knowledge into what each of the search engines
and directories have to offer. A service on the
internet that lets businesses and individuals
promotes their on sites in semi-automatic mode
is SelfPromotion.com.
SelfPromotion.com is a site registration service
where business learn how to properly promote
their websites and it will automatically register
them with all the important search engines and
indexes. If a little time is invested into reading
and using this resource, a business will not only
do a better job of promoting its site, but it will
save a lot of time and effort in the process.
Reference : (http:// www.selfpromotion.com/)
158
2. Software Agents
Software web promotional tools have be come
very common now. They offer users an easy
and convenient way to promote a site to
hundreds if not thousands of search engines.
The software generally allow users to optimise
pages for a potentially better listings. This
optimisation is done by modify the html code
and produce and page which is more search
engine friendly. In many cases the software
will also offer advice on how to build better
pages manually for search engine listings.
Once a good position (top 30) is obtained it is
important to monitor a placement ,as generally a
site will gradually move down the list as new
sites with better keywords etc . will begin to
enter the search engines listings. This means
that further optimisation and refinements must
take place to sure up a position. The software
agents can easily help in monitoring a position
by automatically checking where a site is
currently located and comparing the results on a
monthly basis. One of the most popular
packages of software for this job is Web
Position Gold by First Place Software.
Reference (http://www.webpositiongold.com/)
3. Paid Services
Many new services which can help a business
promote itself to a large number search of
engines are appearing at a rapid rate. This is
growing sector on the because it takes a great
deal of skill and expertise to properly promote a
site on the internet. These services range in cost
from $20 $500+ (USD) per month. Many of
the cheaper services will promote a site to all
major places and keep a track of it position.
Mircosofts
bCentral
(Refference
:
http://www.bcentral.com/ ) is a new service
what does exactly this.
There are full service sites which will manually
edit and submit a site to the major search
engines and provide a basic guarantee that it
will be listed in the top 30 sites using selected
keywords. The services are expensive but can
produce excellent results. Coastal Sites is one
such service.
(Reference : http://www.macor.com/)
4. Paying for a position.
Many search engines make it possible to buy a
high position in the results listing based on
keywords. But this gets to be extremely
expensive if competing for some of the more
popular words.
It can cost upwards of
$75(USD) per one thousand search results. This
means that a site will have the top position on
the results screen for that word(s) one thousand
times. Also this method normally requires a

minimum commitment of $2500 (USD) which
can disappear on a place like yahoo.com in just
a couple of hours if you choose a very popular
word.
A better way of buying keyword traffic is to use
a service like goto.com which is a new search
engine that sells it keyword positions in auction
style format. The highest bidder is in position
one, the second highest in position two and so.
(Currently on the keyword travel the number
1 position is priced at $1.70) The best thing
about a service like goto.com is that one only
pays if the user clicks on their link and the
minimum bid is just $0.02 (USD). There is also
no limit to the number of words one can bid on
and the prices for the position are even
displayed to the users. This means one can tell
what exactly what their position is going to be.
(Reference : goto.com)
5. Combination Technique
The best positioning strategy is a combination
of a paid-service and self-promotion. This
combination works best for businesses just
starting out on the internet and lack the
expertise required to promote their own site. By
initially using a paid service a site will begin to
be noticed on the search engines and this will
give the business some time to learn the ropes
and how best to target the site at search engines
that will produce desirable results.
When setting up a site for the first time many
people over look which search engines will
bring them the type of customer they are
seeking. It can be an expensive exercise if one
attracts a lot visitors who have no real interest in
what the site has to offer them. This can happen
if a site is not correctly positioned with the right
search engine. A great way to learn about how
search engine promotion works is to visit a
place like Virtual Promote which provides free
and easy to understand information about how
to get more free traffic. Spending a little money
on search engine like goto.com will help bring
some traffic to get things started.
(Reference: http://www.virtualpromote.com/)
Benchmarking
Search Engine Database Size
Search engines are currently indexing about 42% of
the pages on the internet. This figure is an estimation
based on the combined totally number of pages
indexed when duplicate pages are removed. No
single search engine has more the about 25% of the
entire internet indexed.
Table 2 which was last updated on the 6-7th of July
2000 gives an estimation of how many web pages
are really stored in each of the search engines. The

column labelled Showdown Estimate is based on
a calculation preformed by the independent web
researchers site called Search Engine Showdown
located at http://www.searchengineshowdown.com/.
The column labelled Claim in millions is the
figure that the particular search engine are claiming
to have listed. Looking at either of the columns it
still shows that the popular search engines are listing
vast number of sites and getting a good position is
only going to get more difficult.
bring high quality traffic to your doorstep. What is

meant by the term high quality traffic is that the
users have already expressed an interest in what
your site has to offer by using a search query that
somehow relates to your business. This is a very
important factor which makes search engines
important to your success. if the users that are
coming to your site from the search engines are
using very specific search terms selling to them
should be a whole lot easier.
References
Table 2 Web pages stored in each search engine
Showdown Estimate Claim in millions
Search Engine
356
500
Iwon
355
560
Google!
331
340
AltaVista
327
340
Fast
282
270
Northern Light
280
500
HotBot
278
500
Snap
159
250
Excite
116
110
MSN
108
110
Anzwers
58
50
Go
Reference http://www.searchengineshowdown.com/stats/
Search Engine Traffic Levels

The most important aspect when benchmarking the
search engines is how much traffic each of the
popular ones get. The top three sites are still
generating much of the traffic that a e-business will
receive. Around 85-90% of all internet traffic is
flowing through and from the top 10 popular search
engines. The following chart has been derived from
the data produced by the online statistics company
called PC Data Online.
Costal Sites - http://www.macor.com/

Danny Sullivan. Avoid the Void : Quick and Easy
Site Submission Strategies. Online, May 2000
v24 i3
Greg R. Notess. Search Engine Relevance. Online,
May 2000 v24 i3 p35.
Lucas Inrona & Helen Nissenbaum. The politics of
search engines. IEEE Specturm, June 2000
p26
Microsofts bCentra - http://www.bcentral.com/
Online http://www.onlineinc.com/onlinemag/index.ht
ml
PC Data Online http://www.pcdataonline.com/reports/
Search Engine Showdown Http://www.searchengineshowdown.com/stats/
Search Engine Watch http://www.searchenginewatch.com/
Self Promotion - http://www.selfpromotion.com/
Virtual Promote - http://www.virtualpromote.com/
Web Portal Trends - http://www.traffick.com/
Webposition Gold http://www.webpositiongold.com/
Search Engines/Portals
Search Engine Traffic Levels for May 2000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
ya
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l.c
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sn
.
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alt os
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ist m
a.
ex com
cit
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co
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k.c
ab om
ou
t.c
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Unique Visitors
Figure 1 Search Engine Traffic Levels for May

2000-08-18 Reference: http://www.pcdataonline.com/reports/
Altavista http://www.altavsita.com
Anzwers http://www.anzwers.com
AOL http://www.aol.com
Euroferret http://www.euroferret.com
Excite http://www.excite.com
Fast http://www.alltheweb.com
Google http://www.google.com
Goto http://www.goto.com
HotBot http://www.hotbot.com
Infoseek http://www.lycos.com
iWon http://www.iwon.com
Lycos http://www.lycos.com
Northen Light http://www.northenlight.com
Webcrawler http://www.webcrawler.com
WebWombat http://www.webwombat.com
Conclusion
Search engines have the ability to delivery a steady
flow of potential customers to your site. They are
not magic and will not produce sales for your
business but they will the next best thing which is
160 T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE , P ROCESSES AND SYSTEMS
Firm direction, clear boundaries and minimal controls: Managing

student information technology projects in rapidly changing times
Kay Fielden
Institute of Information and Mathematical Sciences, Massey University, New Zealand
Abstract
The vision and direction provided by applying
complexity theory principles to managing student
project work gives a firm basis on which to
challenge traditional student project supervision
practices. Attention to initial conditions, provision
of a minimal set of rules, support and
encouragement for relationship-building in teams
and in the whole class, and relaxing controls so that
students manage their own projects has increased
creativity, productivity and motivation. Bringing the
relationship building into conscious awareness
alongside the technical skills required to complete a
project provides a more balanced approach to
educating information technology professionals.
Keywords:
Information
Systems
Development,
Management, Complexity Theory.
People
Introduction
In this paper the link between educating tertiary
technical students to appreciate the importance of
valuing people in the workplace as well as
technology is explored. Improving the quality of
working life with regard to computing goes hand-inhand with establishing success factors for good
information systems (Garson,1995).
Many years of experience in supervising and
coordinating student project work has provided rich
insights into, and the need to look for, something
other than a traditional project management
techniques in educating tertiary technical students.
Supervising the process to tightly always appears to
stifle the initiative, drive, enthusiasm and motivation
to learn the myriad of individual tasks utilizing a
wide cross-section of skills. It is essential for group
synergy to develop for successful outcomes. The
learning process in tertiary technical projects is an
atypical tertiary education process in that it is the
application of previously learned technical skills to a
live project. Learning the integration skills to pull
a project together, technically and socially is a
complex task.
Having explored the work of
Stacey(1996) and Merry(1995) it seemed
appropriate to use complexity theory principles to

situate this educational environment.
Complexity theory principles adopted for this
research are described. These principles are then
situated in the work done in supervising third year
undergraduate Information Systems Development
(ISD) projects. Future directions for educating
Information Systems professionals for the twenty
first century are then outlined. Complexity theory
principles are also linked to core systems theory
(Checkland & Scholes,1990) principles in Table 1.
The Project Paper
The third year paper, Information Systems Paper has
been designed to be the capstone paper for the
Bachelor of Information Sciences in the Information
Systems major. Analysis and design skills acquired
in previous information systems papers are put into
practice in a project carried out for an outside
organization drawn from the wider business
community.
Third year Information Systems
students at Massey University at Albany spend the
whole of the academic year working in small groups
(five or six students) to analyse, design and
prototype a variety of projects for organizations in
Auckland. The experience gained during the project
gives students valuable insights into current and
future needs of the businesses with which they work.
Client organizations find that liasing with student
groups is mutually beneficial. Live project work
also provides the opportunity for students to learn
how to cope with problems encountered in groups.
Links with businesses that follow social
responsibility principles provide not only
information technology skills and experience but
also exposure to best practice ethics. Students chose
what
information
systems
development
methodology is best suited for their particular
project. Most groups base their project development
on traditional systems development life cycle.
However, in their critical evaluations at the end of
the year they acknowledge that while SDLC
provides project development guidelines, a mix of
methodologies (such as Multiview (Avison &
Fitzgerald, 1995), Soft Systems Methodology
(Checkland & Scholes, 1990) and ETHICS
(Mumford, 1983) is required at different stages of
development. All students stress the importance of
socio-technical principles in their final evaluations.
Emery (1995) states that educational systems must

be geared to supplying and sustaining a workforce in
which information technology is continuously
changing the social context of work.
The theory of information systems suggests that a
well designed and developed information system
will provide a greater level of order and control in
handling the information needs of an organization
and thus its productivity (Avison & Fitzgerald,
1995). The reality is that even when an information
system is well designed and developed this may not
happen. The fit between design and development
methodology and the organization, an imbalance
between technical and social fit in an organization or
the inability of the design team to communicate with
their client all contribute to greater chaos and less
order. Students who learn the importance of finding
the right methodology for the client and who value
the importance of listening to their user to produce
what is required are learning how to balance social
and technical fit.
Complexity Theory (CT) Principles
Nicholls(2000) describes ISD as an organizational
change activity. Adopting this view of ISD as a
logical extension of Staceys(1996) work on CT in
organizations is to apply CT principles to the
supervision of student ISD projects.
class. This is an important underpinning for students

to learn how to operate in a dynamic world with
maximum effectiveness and flexibility. Mistakes
made are regarded as opportunities to learn,
changing project conditions as a chance to learn to
adapt and to self-organize and interpersonal
difficulties the opportunity to learn how to resolve
conflict. This mix of interpersonal skills and group
dynamics provides the balance required to work in
teams on a technical project.
Systems thinking (ST) principles that are exhibited
in considering initial conditions are control (as rules
and guidelines for the project are established) and
structure (as groups, group leadership and
management styles are established).
Minimal Set of Rules
Once the rules are established, groups formed,
working patterns within groups decided all members
of the class know where the operational boundaries
are. Once this is accepted, close and caring
supervision provides the external motivation and
direction for projects to proceed. An atmosphere of
trust and firm direction together with a minimal set
of externally imposed rules is the balance required.
While control is the obvious ST principle exhibited,
it is within the caring and trusting environment
established that increased motivation and
productivity emerge.
Table 1 CT Principles
Principle
ST
Category1
Importance of initial conditions
Con, St
Minimal set of rules
Con
Relationship building
Com, Con, Em
Relaxed controls
Con, Em
Self-management
Com, Con, St
Environment setting
St
Process & product
Com, Con, St
People & technology
St
Listen to the shadow
Com, Em
10
Operate on the edge
Em
11
Be alert for early change signs
Em
12
Hold the productive space
Con, St
Initial Conditions
Chaos theory suggests that complex systems have a
sensitive dependence on initial conditions (Merry,
1995).
In educating information systems
professionals a trusting, open, cooperative
environment is set from the very first meeting of the
1 ST Categories - Systems Thinking categories communication(Com), control(Con),
structure(St), emergence(Em) (Checkland & Scholes,1990)
Relationship Building
Complex systems are characterized by a
combination of openness, interactivity and
nonlinearity.
Vulnerability in complex human
activity systems is reduced by the ability to
transform
themselves
within
a
changing
environment
(Merry,
1995,
Piaget,1952).
Developing listening skills is a necessary
prerequisite for a deep understanding of self and
others in such complex human activity systems.
Each semester, listening exercises form part of the
curriculum. For many students it is the first time
that they have really thought about what it means to
listen. They also become aware of the multiple
voices within their own heads and how these voices
can interfere with their ability to listen to someone
else. Developing listening skills - both listening to
others and listening to the chatter that goes on within
our own heads - is the first step in quietening the
mind sufficiently so that we can listen to others
effectively. Without being able to listen to others
effectively we cannot learn, intellectually at least.
Learning intellectually is only one component in
relating to others in complex human systems.
Listening to our own chatter, or lack of it, and being
aware enough to identify and act upon our own
insights, is essential. While the knowledge remains
implicit we may act upon it, but not know what it is
that we have learnt, or why.
A deeper understanding of human values in

relationship happens as knowledge and ideas are
shared. As we share ideas within a trusting learning
community, the synergy and collaboration means
that the pool of knowledge and skills available to all
members of the learning community becomes
greater. As our ideas coincide or differ from others,
so we have the opportunity to reflect on why this
might be. When we share our ideas, we participate
actively with others in the learning community. As
students work in the same group for the whole
academic year they develop a deep understanding of
their fellow group members working style, thinking
patterns and personality.
While the obvious ST principle exhibited in
relationship building is communication, self-control
is vital if professional relationship skills are to be
developed.
Relaxing Controls
As the year progresses and as the students become
more comfortable with accepting their own
autonomy in controlling the progress of their work,
external supervisory controls can be progressively
relaxed. Guidance rather than control is required in
assisting with relationship and technical problems.
ST principles exhibited are control - which
progresses from more to less external controls
during the course of the paper.
Self-management
Students develop an awareness of the difference
between the long-term implications of imposed
solutions and the spontaneous changes of selforganizing systems in controlling their own projects.
Semester and academic boundaries for the project
paper are set clearly at the start of the course.
Project scope is explored with client and supervisor.
Students act as consultants to their client in project
work and therefore have the power to set the scope
to satisfy their clients. They learn that this is not a
fixed process, but rather can be a moving target.
Clients business needs may change. As clients
level of understanding about the capability of the
information system being developed increases, more
requests for the final product are placed. Students
also choose which established information systems
development methodology to use in managing their
project. Most students discover that the standard
methodologies work in an ideal world and that
modifications are required with real projects.
Having supervised student information systems
projects for many years, the author has discovered
that a high level of student autonomy is vital in
providing the motivation, dedication and quality of
work within a limited time frame that is required for
the paper. The paradox associated with relaxing
controls is that there is less rather than more chaos.
Motivation is high because the students own more of

the process. The skilled educator evolves from the
person in control of the class to the facilitator of
self-directed learning. Much of the control for
learning has been handed back to students.
Feedback from students suggests that the
empowerment and trust they experienced enabled
them to learn far more than they would have
expected.
For the facilitator of effective learning, it is essential
to establish a trusting and supportive environment.
Any threat, fear or lack of autonomy is detrimental
to effective learning. Frequent supervisor meetings
during the year, a flexible attitude to changing
requirements and setting deadlines in collaboration
with the student class all increase the level of trust in
the class.
Environment Setting
Prather(1996) establishes nine dimensions for a
climate in which innovation may flourish. These fall
into three main themes resources, personal
motivation and exploration. Table 2 shows these
climate dimensions, and the organizational support
required in a rational, structural domain as well as
the humanistic, holistic support which he suggests is
much harder to change.
Table 2 Innovation Environment (Prather,1996)
Climate Dimension
Rational
Support
Holistic Support
Resources
Idea Time
Orgn
allows time
Processes in place
Idea Support
$s for new
ideas
Encouraged
Challenge &
Motivation
Democratic
involv ement
Personal Motivation
Trust & Openness
Lead by example
Fun & Humour
Expect to have fun

at work
No conflict
Honour
disagreements
Role model dispute
resolution
Exploration
Risk taking
Debates
Freedom
Mistakes seen as
lessons
Time for
public
debate
Stimulate debate
Democratic
decisions
Personal autonomy
Lean economic times leave little room for reflection

and without this the creative and intuitive ideas
languish (Prather,1995). Time is allowed to explore
new ideas and to reflect on possible processes and
outcomes. Reflection is incorporated as part of the
curriculum in peer evaluation at each phase exit and
in the final examination. Both the peer evaluation
and the examination give students an individual,
rather than a group, opportunity to relate issues such
as how consistency, quality, project selection,
feasibility and management were achieved, how the
group functioned and what their individual
contribution was. The students are given the
opportunity to suggest what might have been done
better, in hindsight. Unfortunately, there is little
time for such reflection during the academic year.
Process & Product & 8 People & Technology
Paying attention to the process of developing a
technical product, learning the importance of social
interactions as well as the final product is provides
the balance required for information systems
professionals entering a rapidly changing technical
workforce. All ST principles are exhibited in
maintaining this balance.
Listen to the Shadow
Learning that the development of information
systems projects in the real world requires more
than the official and traditional documentation is
essential for the development of quality products.
Learning to find that the multiple sources of
information, often not recorded electronically is
essential.
ST
principles
exhibited
are
communication and emergence, particularly as
initial requirements change when shadow
information emerges.
Operate on the Edge
The edge of chaos is where complex systems are at
their most adaptive. This is where there are the
widest range of behaviours from which to choose,
where there is the highest level of fitness and
adaptability, and the richest choice of alternatives.
Merry(1995) maintains that complex systems evolve
at the edge of chaos. Equipping students with a
wide variety of social skills, the ability to think
creatively about technology, grounding in generic
technical skills and flexible thinking skills equips
students well for a working world that increases in
complexity all the time.
Important skills for
managing change at the edge of chaos are:
1. Learning to value and to recognize the
emotional impact of change and the skills with
which to handle this both for self and for others;
2. Being able to recognize whether reaction to
change is appropriate; and
3. Recognizing the edge of chaos and becoming
familiar with chaotic states.
4. Welcoming such states as an opportunity to

learn;
5. Differing degrees of participation, depending
on appropriateness to organizational culture.
The most important ST principle exhibited operating
at the edge of chaos is emergence as a greater level
of awareness develops.
Be Alert for Early Change Signs
An invaluable indicator that communication has
broken down in a student group project is that
inconsistencies appear in system documentation.
Even with high achieving groups, when the quality
of the documentation does not match the
competency level in the group, this is an indicator
that relationships within the group are not smooth.
Emergence is the most important ST principle
exhibited in being alert for early change signs.
Rules
Relaxed Controls
Environment
Shadow
Initial conditions
Project
End product
Technology
Productive space
Early Signs Process
Edge
Relationship
Building
Figure 1 12 Hold the Productive Space

Supervising with integrity is vital in holding the
productive space. Figure 1 shows the productive
space finely balanced between external and internal
controls, shadow and traditional system, process and
product, operating on the edge, early warning signs
and relationship building. Building, developing and
maintaining the awareness of how each group is
learning, developing and maturing during the course
of the paper holds the productive space. It never
ceases to surprise and delight when students report
the depth of their learning experience in this paper.
Fear
Known
Edge of Chaos
Assurance
Past
Unknown
Future
Traditional
System
Shadow
System
Figure 2 A Case Study - When Problems Occur

In fifteen plus years of supervising information
systems development projects there has only ever
been one group that has failed to pass the project
paper as a group. There have been individuals and
sub-groups that have failed to pass the paper, but
only one group where the group as a whole has
failed. This failing group arrived a week late to start
the yearlong project. They failed to make any
contact prior to semester starting offering any
excuses for late enrolment, turning up in the second
week. The excuse given was that they engaged in a
student pub-crawl in the first week of semester.
Now this is neither here nor there as far as student
attendance in class is concerned. It is significant
however, when the rest of the class had formed into
groups, agreed on individual group management
style, selected a project for the year, had an initial
meeting with their client, whether the project be with
an outside business, community group, government
department or university department. Each group
had also made their first attempt at defining project
scope, agreed on performance levels within the
group and reported back to the whole class in that
second week of lectures. The pub-crawling students
were a long way behind the rest of the class when
they appeared for the first time. They had no idea
what sort of project they would like to attempt, there
had been no discussions amongst themselves on how
the group should be organized and their prerequisite
knowledge was weak. In order to speed up the
process because they were so far behind the rest of
the class, the group was allocated a project rather
than them selecting their own project. A meeting
with the client was arranged for them instead of the
group arranging their own meeting and one of the
group members was nominated as leader. In other
words, the initial control of the process was imposed
on them, rather than them selecting and discussing
their own way of operating. These initial conditions
turned out to be a vital factor in their lack of
performance. At their regular supervised meetings
during the year they waited to be told what to do
next rather than taking control of their own

production process. Their inadequate prerequisite
knowledge inhibited their ability to perform
technical tasks but more importantly their lack of
motivation and lack of autonomous control over the
initial conditions for the project meant that either
tasks were not completed, nor in some cases were
not even started. The more tasks were spelt out to
them, the more they withdrew from taking
ownership of group activities. It is all too easy to
say that lack of student ability and prerequisite
knowledge is the critical factor for project
completion and academic success. It is apparent that
initial conditions that for all other groups were
autonomous in project selection, management, roles
and client interaction, added to the only failure of an
information systems development group. At no
stage during the project did synergy develop
between the group members, nor did they take
responsibility for directing their own work.
Future Directions
Complexity theory principles provide a
framework in which the integrative skills required in
managing the complex task of software design and
development can be explored in the future. Further
research is needed to explore the social implications
of working and learning with technology. Besides
the traditional technical-skills information-systems
professionals of the twenty-first century need to:
1. develop balanced approaches both structurally
and creatively to managing change at the edge of
chaos;
2. develop an awareness of the difference
between the long-term implications of imposed
solutions and the spontaneous changes of selforganizing systems;
3. be adept in questioning underlying cultural,
political and intellectual assumptions;
4. value people as agents of change and
technology as the tool;
5. have a deep understanding of self and others in
complex human activity systems;
6. value subjective involvement in technological
areas;
7. be tolerant, compassionate and at ease with
multiple realities in complex systems;
8. understand the learning process as a meta-skill
and to develop flexibility in thinking; and
9. Allow time to explore new ideas and to reflect
on possible processes and outcomes.
Balancing the need for controlled project
management in learning how to develop technical
projects in increasingly complex environments
provides a rich domain for future directions.
Conclusion
Sending Information Systems graduates into the
workforce with a balanced set of technical and social
skills is essential. John Ball, CEO of SoftTech NZ

states that while the best technical experts are
tolerated if they are difficult people, everyone in his
organization must have technical skills. Feeney &
Wilcocks (1998), on the other hand, suggest that
amongst core IS capabilities are relationship
building.
In this paper the application of
Complexity theory principles to the process of
educating IS professionals provides a firm basis on
which to balance the acquisition of both technical
and social skills in a learning environment that
provides a transition into a rapidly changing
technical world.
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Dr Kay Fielden
Institute of Information and Mathematical Sciences
Massey University
Email: k.fielden@massey.ac.nz
Phone: +649 4439799 x9490
Does task and contextual performance measurement apply across

cultures? An empirical study of Thai and western managers and
professionals
Gregory Fisher, Charmine Hrtel, and Michael Bibo
Graduate School of Management, University of Queensland Australia
Abstract
This paper examines cross-cultural issues in the
area of work performance or effectiveness. It does so
by comparing the dimensionality of a ten-item
measure of work effectiveness for two groups: Thai
managers and professionals and Western expatriate
managers and professionals working in Thailand.
Results for the Thai view of the performance of
Western, expatriate managers vary from the
dominant task and contextual performance structure
found in the literature. These results are discussed in
terms of the need to consider the western managers
adaptation to the Thai cultural environment. Other
results identify differences in the underlying
dimensionality of work effectiveness for the two
groups. These results are discussed in terms of the
importance of considering the Thais adaptation of
their own expectation of the performance of western
expatriate workers. A final set of results examines
cross-cultural differences in importance ratings for
specific work performance items.
Keywords
Cross-Cultural; Thai; Work performance; Work
effectiveness; Task Performance; Contextual
performance
Introduction
The ability to manage in cultural environments that
are different to the managers own has become more
important as business takes on a more global focus.
The literature on individual effective performance in
the work setting and intercultural effectiveness had
tended to grow separately, based, respectively on the
organisational psychology and cultural studies
disciplines from which they come. This paper
attempts to link cultural issued to the dominant
model of task and contextual performance measures
in the organisational psychology literature
The Role of Culture

Theories on the role of culture in relation to
organisational effectiveness in multinational
environments can be grouped alone a continuum
ranging from divergent to convergent. Divergent
theorists contend that the effectiveness and

competitiveness of organisations are enhanced when
practices are consistent with culture (Burns &
Stalker 1961; Powell 1992; Earley 1994). By
contrast, convergent theorists see that organisations
should transcend differences in national culture
(Porter 1986) and operate under a common corporate
culture (Yip 1992). Between these groups are writes
who argue that corporate culture can influence, but
not eliminate, national cultural values (Ricks, Toyne
& Martinez, 1990; Adler, 1997) or who point to
crossvergence, a combination of organisational
culture and national cultural values (Ralston,
Gustafson, Chueng & Terpstra, 1993; Ralston, Holt
Terpstra and Kai, 1995).
Regardless of whether management is converging,
diverging or crossverging, culture can be seen as
having an important influence on performance. The
solutions to the culture problem suggested by the
theories are, respectively, to reflect, eliminate or
adapt.
We argue in this paper that the literature to date has
not fully considered aspects of culture as they relate
to the perception of effective performance in a nonwestern, cultural environment. The research thus far
has tended to focus on the working experiences of
male Western expatriate managers who have stayed
abroad for an extended period, working for a
Western home county multinational operating in a
host country. (e.g. Abe and Wiseman, 1983;
Hammer, 1987; Dean and Popp, 1990; Martin and
Hammer, 1989; Caligiuri and Tung 1999; Yavas and
Bodur 1999). Secondly, much of the research looks
at changes in the expatriates cognition, behaviour or
pre-departure training that will improve their
performance in the foreign culture. (e.g. Tung 1987;
Selmer, 1999; Yavas and Bodur 1999). However,
the host country national also has knowledge, skills,
and experience to bring to the relationship. The
third issue is the underlying assumption that the
Western manager or consultant is the senior team
manager, with the local manager in a subordinate
role. This is not always the case. For example, a
significant proportion of Western consultants and
managers in Thailand work in organisations where
they report to or work with local, rather than

expatriate, management. (Fisher and Hrtel 1998).
This further emphasizes the importance of the host
country national in influencing performance.
While there is not an extensive literature base
covering issues of Thai and Western managers, what
literature there is supports the contention that there
are differences in the management styles of Thai and
Western managers, and that these are based on
culture. Cooper (1994) specifically questions the
applicability of universal modern management
methods to the Thai. Singhapakdi et al (1995)
identify widely divergent personal and professional
values that underlie decision-making. Holmes and
Tangtontavy (1996) discuss: (a) Uniqueness in the
way Thai view the legitimate use of power; (b)
Differences between Thai and Farang (Western)
concepts of deadlines; (c) How Thai concepts of
loyalty are different from both the Western and
Chinese viewpoint; and (d) How the implementation
of management practices, such as delegation,
accountability, motivation, teamwork, rewards and
performance evaluations are viewed. Although Fieg
(1989) does identify areas of convergence between
Thai and Americans, he predominantly attributes
this to educated Thai being exposed, and therefore
being aware of, rather than adopting, Western
values.
Work effectiveness
In addition to cultural aspects, the research on intercultural effectiveness has tended to take a limited
view of what performance actually is. In many
cases (Abe & Wiseman, 1983; Hammer, 1987;
Martin & Hammer, 1989; Dean & Popp 1990), the
measure of performance has been to ask the
expatriate whether they have performed well, and if
the answer is in the affirmative the expatriate is
included in the study.
Models of performance in the organisational
psychology literature have tended to fall into two
categories: Those which focus on goal setting
(Lockett, 1992; Armstrong, 1994; Rummler &
Brasch, 1995) and outcome measurement (Lockett,
1992); and those which attempt to link the behaviour
of the individual with the organisations outputs,
either through a limited focus on task behaviour
(Murphy, 1989) or with a broader focus that includes
both task and contextual behaviours (Borman &
Motowidlo, 1993; Hrtel, 1999).
This study utilizes a measure of work effectiveness
developed by Fisher and Hrtel (1998), which
includes items representing task and contextual
performance as defined by Borman and Motowidlo
(1993), Motowidlo and Van Scotter (1994) and Van
Scotter and Motowidlo (1996). The qualitative
research undertaken by Fisher and Hrtel found that

there were differences in the way Thai and Western
managers perceive the importance of different
performance items. Thus, in this paper, we examine
whether the task and contextual dimensions of
performance hold for Western managers and
consultants working in a Thai environment, as well
as the differences between cultural groups in the
factor structures of performance items. Specifically,
we examine the following hypotheses:
Hypothesis One: The task and contextual work
performance factors as described in the literature
will not be consistent with those perceived by the
Western manager operating in the Thai cultural
environment;
Hypothesis Two : The task and contextual work
performance factors as described in the literature are
not consistent across cultures;
Hypothesis Three: The importance of individual
work performance items will vary across cultures.
Methodology
Sample
The research was part of a larger study of crosscultural management. The sample consisted of 122
dyads, each comprising a Thai and a Western
manager or professional who worked together in
Thailand.
Working relationships between the
members of each dyad included:
Direct superior/subordinate
Indirect superior/subordinate
Co-workers at the same organisational level
Manager/consultant
Thus, this sample deliberately avoided the bias that
exists in some of the literature, that the Westerner is
the manager. In addition, the pool of Westerners
was identified for the Thai by the Thai descriptor for
European and Anglo expatriates, namely farang.
The dyads were randomly drawn from organisations
that were members of the Australia-Thai Chamber of
Commerce, and from lists of consultants provided
by the Thai Civil Service Commission.
Measures
Fisher and Hrtel (1998) identified ten items
regarded as important in the evaluation of
performance
of
expatriate
managers
and
professionals in Thailand (see Table 1). These items
were rated on a 6-point Likert scale, consistent with
similar scales used in the intercultural effectiveness
literature, for their importance as measures of how
the overall effective performance of a farang
expatriate working in Thailand is perceived.
Table 1 Performance items

A
B
C
D
E
F
G
H
I
J
Planning and organizing work

Showing initiative and volunteering to help others
Meeting deadlines
Maintaining harmony in the workplace
Accepting responsibility for ones actions and their
effects on others
Overall technical competence or skill
Following the organisations policies, rules and
procedures
Developing the knowledge and skills of others
Encouraging and valuing staff participation in
decision making
Completing the overall task
Table 2 Rotated Component Matrix For Western

Item
Component
A
B
C
D
E
F
G
H
I
J
Results
As the items were generated as part of a qualitative
research project aimed at identifying the components
of effective performance, they were all rated as
important by the sample, and consequently the data
exhibited moderate negative skewness for most of
the items.
Transformations of the data were
conducted in accordance with the recommendations
of Tabachnick & Fidell (1996), and examined to
confirm that they brought the data within acceptable
parameters for normality.
Because hypothesis 1 predicts that Thai and
Westerners will have different perceptions of the
factor structure of performance items, separate factor
analyses were conducted for each data set: Thai and
Westerners. As the data analysed is based on
individual and not dyad responses, this results in a
participant to item ratio of more than 12 to one for
each data set, above the minimum of five subjects
per variable recommended by Coakes & Steed
(1997) and the minimum ten subjects per variable
recommended by Child (1990). Each data set was
subjected to a principle components analysis with a
varimax rotation to both maximize the variance
extracted by orthogonal components and to
minimize the complexity of factors (Tabachnick &
Fidell, 1996). Using the criteria of eigenvalues
greater than one to determine the number of factors
to be extracted, each data set yielded a three-factor
solution.
For the Western data set, the three-component
solution was the preferred model, as it accounted for
65% of the variance, and exhibited the clearest and
most interpretable structure, with only one complex
item. The two-component solution contained more
complex items, making interpretation difficult.
While the four-component solution did account for
an extra 10% of the variance, the fourth component
was defined by a single item, and was not
considered to add significantly to meaningfulness.
The rotated factor loadings for the three-factor
solution are presented in Table 2.
1
.702
.725
.779
.584
.358
.618
.499
.563
.892
.918
.918
.817
For the Thai data set, the preferred solution was the
two-component solution, which accounted for 52%
of the variance. The rotated component loadings for
this model are reported in Table 3. The threecomponent solution for this data set was less
interpretable, with a number of complex items. The
four-component solution contained significant, noncomplex loadings for only half of the item set.
Table 3 Rotated Component Matrix for the Thai
Data Set
Item
Component
A
B
C
D
E
F
G
H
I
J
1
.630
.717
.715
.624
.680
.453
.316
.363
.975
.975
.601
Following the factor analyses, a Multivariate

Analysis of Variance was performed on Thai and
Western group differences for item scores. The key
results are presented in Table 4. The multivariate
results (F(df)=6.482, p=.000) indicates that there are
significant group differences. The univariate tests
indicate that the items contributing to the group
difference are planning and organizing work (item
A), meeting deadlines (item B) and maintaining
harmony in the workplace (item D).
Table 4 Results of Multivariate Analysis of Variance

Multivariate Test Results
F
Sig.
Pillais trace
6.482
.000
Univariate Tests
Item
F
Sig.
A
17.770
.000
C
18.936
.000
D
6.720
.010
Examination of group means revealed that for items
A and C, the Thai data set has a higher mean score,
indicating a greater level of importance given to
these items. For item D, the Western data set has a
higher mean score.
Discussion
Hypothesis One: The task and contextual work
performance factors as described in the literature
will not be consistent with those perceived by the
Western manager operating in the Thai cultural
environment.
As can be seen from Table 2, the components for the
Western data set are not readily interpretable as the
task and contextual performance factors defined in
the literature. For example, item B Showing
initiative and volunteering to help others would be
considered to be a Contextual performance item as
defined by Van Scotter & Motowidlo (1996).
However, it is clearly shown to be in a component
with item such as A and C Planning and organizing
work and Meeting deadlines which would be
considered Task performance items.
One possible explanation for this counterintuitive
result is knowledge of and adaptation to the Thai
cultural environment by the Western managers.
They were asked to identify the importance of these
items as measures of how the overall effective
performance of a farang expatriate working in
Thailand is perceived. The role of the expatriate
manager, regardless of their level, could be seen as
intrinsically both catalytic and involving assisting
others. In other words, in the Thai business
environment, initiating and helping others could be
seen as intrinsic to task proficiency. Similarly, it
could be argued that the complex nature of the item
accepting responsibility for ones actions and their
effect on others reflects a heightened level of
sensitivity to Thai cultural issues. Expectations of
higher levels of accountability by the expatriate and
awareness of the impact of ones behaviour have both
a task and contextual aspect in this cultural
environment.
Therefore, we could describe
component one as Task modified by cultural

environment.
Components two and three separate out the
narrower contextual performance constructs of
interpersonal facilitation and job dedication as
defined by Van Scotter and Motowidlo (1996). We
argue again that this is because of heightened
awareness of the Thai cultural environment. Factor
two is defined by three non-complex items
maintaining harmony, developing knowledge and
skills of others, and encouraging and valuing staff
participation in decision making. These are
consistent with the interpersonal facilitation
construct. The third factor is defined by the item
following the organisations policies, rules and
procedures, consistent with the job dedication
construct.
Hypothesis Two: The task and contextual work
performance factors as described in the literature are
not consistent across cultures.
There are similarities in the component structures of
the two data sets, but also a striking difference.
The component structure for the Thai data set
showed a similar pattern to that of the Western data
set, with items usually considered as contextual
performance items such as showing initiative and
volunteering to help others loading on the first
component with traditional task performance items,
as already discussed.
However, in the component structure of the Thai
data set, the item maintaining harmony in the
workplace loads on component one, and component
two is defined only by the items developing the
knowledge and skills of others and encouraging
and valuing staff participation in decision making.
This is consistent with the additional emphasis his
place on harmony in within Thai Culture. We argue
that, in line with the interpretation of components in
the Western Data set; maintaining harmony in the
workplace is seen more as a necessary contributing
item to proficiency in the job specific tasks (Van
Scotter & Motowidlo, 1996). The difference in the
way that this item loads, as part of interpersonal
facilitation in the Western data set and task modified
by cultural environment, for the Thai cultural set,
supports our hypothesis.
These differences are not only due to the selection of
a two-component solution for one data set and a
three-component solution for the other. In the threecomponent solution for the Thai data set,
maintaining harmony remained loaded on
component one. While in the two-component
solution the item following the organisations
policies rules and procedures did not load on either
component, in the three-component solution it
defined the third component. This is consistent with

the results of the other data set.
Hypothesis Three: The importance of individual
work performance items will vary across cultures.
Significant group differences were found for three of
the work performance items: Planning and
organizing work, Meeting deadlines, and
Maintaining harmony in the workplace. The Thai
group, relative to the Western group, report a higher
level of importance attached to the first two items,
and a lower level of importance for the third item.
At first glance, this may seem counter-intuitive, as
much has been written about the emphasis that Thai
culture places on maintaining surface harmony, and
the lack of emphasis placed on issues such as
planning and deadlines.
However, subjects were asked to rate these items
according to how important they felt them to be to
the effective performance of a Western manager
working in the Thai culture. Thus, we must consider
the interaction of the expectations of each group, and
we must remember that the interaction is a two-way
process.
One possible synthesis of the group difference
results found is that, if the Thai working culture
places less emphasis on issues such as planning and
meeting deadlines, Thai managers are in fact more
likely to see it as important that a high level of
performance related to these items are exhibited by
Western expatriates. These items are part of the
expected skill set that the Westerner brings to the
interaction in the Thai working environment. >From
a Western frame of reference, the Western manager
is likely to place less importance on these items
because of an assumption that they are less
important in the Thai cultural environment.
importance of performance. Moreover, the task and

contextual factor structure found for Western
managers working in Western culture did not hold
for Westerners working within the Thai cultural
environment, with a three-factor structure being
preferred. This provides evidence of an adaptation
by the Westerner to the Thai cultural environment,
which in turn supports the notion of crossvergence
suggested by Ralston, Holt and Terpstra (1995) and
Ralston, Gustafson, Chueng and Terpstra (1992).
There was not a significant difference in the
importance placed on seven of the ten items used to
measure performance by the Thai and Western data
sets. In the other three items the relative importance
placed on the items by the groups was opposite of
what would be expected based on the bulk of the
cultural literature. This means that there is cultural
adaptation occurring by the Westerner, by the Thai
or by both. We would ague that both sides are
adapting consistent with the development of a new
crossvergent culture.
There are also a number of practical considerations.
Firstly, these findings highlight the importance of
not accepting blindly the application of the task and
contextual performance structure in the Western
literature to Western managers operating in a nonWestern culture.
Secondly, the evidence of
adaptation by both Thai and Westerners highlights
the need to consider the interrelationship between
the two groups, rather than simply focusing on the
Western manager. This has implications for the
design of both training and performance appraisal
programs. Finally, the different level of importance
placed on different items also has implication for the
application of performance appraisal systems in
multinational organisations, particularly if they use a
360-degree feedback or management by objectives
system where clearly understood and agreed
measures are necessary.
Similarly, Western managers assume, and are even

specifically taught, that maintaining harmony is a
prime concern in the Thai cultural environment.
However, the Thai manager may either not expect
the Western manager to have an awareness of Thai
culture, or not see maintaining harmony in the
workplace as a part of the expected skills set of
Western managers. As such, Thai managers do not
place as much importance on maintaining surface
harmony as a measure of the performance of
Western managers as do Western managers.
Several research opportunities flow from this

research. There may be a difference in the way
performance items are processed when rated by
importance, and the way that the same performance
items are actually applied when actually assessing
the performance of the expatriate manager. Further
to this, it would be interesting to assess the
relationship between the items and a single global
measure of performance, which is frequently used in
both the performance appraisal and intercultural
effectiveness literature, and is often present in
organisational performance appraisal systems.
Conclusion
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Tel. +61 7 33657234
Research and development in the Japanese construction industry

Campbell Frasera and Anna Zarkada-Fraserb
a
b
School of International Business, Griffith University, Australia
contractors or the manufacturers and suppliers to the
industry) should engage in which type of research.
Abstract
This paper presents an overview of the philosophy,
structure and key objectives of R&D activity in the
Japanese construction industry. It argues that this
unique model of a close partnership between
industry, government and society is based on shared
values and delivers significant benefits not only for
firms, but for society at large whilst forming the
basis of Japans competitive advantage in
international markets. Empirical evidence illustrates
the key differences in the belief structures of
construction
firms
executives
concerning
responsibility for R&D in Japan and Australia.
Introduction
Research and Development is as much part of the
Japanese psyche as raw fish is part of a sushi bar
(Levy, 1990:339).
This paper presents an account of the philosophy
and structure of R&D activity in the Japanese
construction industry, arguably the only one in the
world where any significant such activity exists. The
narrative is developed based on policy documents,
information leaflets and brochures published by the
Japanese Ministry of Construction in the 1990s: a
report of the National Institute of Standards and
Technology; annual reports (1991-1999) of the
largest construction firms in Japan (Kajima,
Kumagai Gumi, Obayashi, Shimizu, Taisei and
Takenaka); and the observations collected over a
decade long association of the first author with the
Shimizu Corporation and its Research Institute. Four
types of construction related research are discussed:
(a) basic research, intended to create new
knowledge; (b) research into the societal impacts of
construction activity, including town planning,
design, and environmental issues as well as
employment; (c) research into new processes aimed
at improving efficiency and safety; and (d) research
into new product development.
Empirical data collected using interviews with
executives of some of the largest Japanese and
Australian construction firms are utilised to explore
perceptions of which institution (universities,
The analysis of the primary and secondary data

illustrates the commitment of Japanese firms to
undertaking the bulk the research activity
themselves as opposed to Australian firms that rely
mainly on publicly funded research to cover their
needs.
Implications of the findings for further research into
research and technology management as well as the
long-term sustainability of competitive advantage
for the industry are presented.
The philosophy and structure of Japanese

construction R&D
In the Japanese construction industry publicly
funded research, mostly carried out by the Building
Research Institute and Ministry of Construction
agencies (Levy, 1990), represents only about 2% of
the national R&D investment (National Institute of
Standards and Technology 1996) which is typically
over five times that of other advanced economies
such as the US (Tucker et al., 1991: 20). Thus, it is
clear that it is with the general contractors that the
bulk and thrust of research and innovation lies. Over
25 of the largest construction companies have well
equipped research laboratories, established as early
as 1945 and most of them being in operation for
over 30 years, which may each employ several
hundred highly qualified research professionals and
boast laboratory facilities and equipment that would
be the envy of any university or government
laboratory anywhere in the world (JFCC, 1994;
Levy, 1990; Tucker et al., 1991). The Japanese
companies R&D process and activities have
approval and wide visibility to the senior
management (Paulson, 1991) and other parts of the
company as well as the various stakeholders of the
firms. There are established channels of
communication for proposing research, funding and
assigning projects, and getting the results back to the
operating divisions, project sites and clients.
The largest contractors and the next tier contractors
have essentially the same kinds of research facilities,
but those operated by the larger contractors are
bigger and more sophisticated than those of the

smaller contractors. The research institutes perform
privately funded research in a variety of areas,
including both technical and social aspects of
building. In addition to problem-focused applied
research, basic research is also performed.
The budgets of the research institutes of the largest
contractors typically account for approximately one
percent of the firms annual turnover (Construction
Technology Research Working Group of the
Japanese Society of Civil Engineers, 1996:B-7).
While one percent may seem small compared to
other industries, no construction industry anywhere
else in the world even comes close. The ability of
Japanese firms to invest in R&D is a result of the
fact that they generally are less limited by their
available discretionary funds than firms in other
countries. Almost 90% of the institutes funding
comes from company overheads whilst government
subsidies account for less than one percent (Paulson,
1991: 25, Table 3.2) It is also facilitated by a
business, government and society partnership that
helps manage the risks of innovation and allows
contractors to absorb R&D costs in their client fees.
On a national level, research is not duplicated among
contractors, since the Ministry of Construction
(MoC), which encourages innovation through strict
controls, coordinates a significant proportion of it
(National Institute of Standards and Technology
1996). The Ministry plans and prioritises R&D,
allocates projects and adjudicates in the process of
innovation implementation. This has the effect of
individual firm risk reduction by distributing risk
among a number of organisations. Moreover, with a
number
of
research
institutes
working
simultaneously
on
similar
developments,
confirmatory results are more likely to be assured. It
is also likely therefore that an innovation born in one
R&D institute will be independently confirmed by
others before the innovation becomes common
practice in the industry. This additionally facilitates
the process by which many contractors will have the
ability to use the innovations developed, so that
clients will not have to rely on a single supplier of a
proprietary technology. It may take up to 10 years
for the MoC to certify a new technology for use in
construction after its initial development. Despite
this long timeframe, the thorough, multicontractor
involvement, limits, if not eliminates, the risk of
litigation (National Institute of Standards and
Technology 1996). In summary, the Japanese system
is designed to limit exposure to risk for both
contractors and their clients.
The Ministry of Construction has historically
provided indirect R&D funding by permitting the
costs of such R&D to be absorbed in actual
construction projects. The Ministry controls tender
lists of contractors wishing to bid for public works

projects, providing access to those companies that
support R&D and in effect exclude firms that may
be able to underbid them because they did not invest
in research institutes (Hasegawa, 1988). Private
clients have also been known to follow similar
procedures in selecting contractors for their own
projects (National Institute of Standards and
Technology 1996). They are willing to accept an
R&D price absorption as they hold a similar value
system as the MoC, which in essence translates to
the value system of the Japanese public, that an
increase in overall quality of life or safety against
natural disasters is preferable to a minor decrease in
costs.
The heavy reliance on private R&D initiatives and
expenditure means that in Japan universities have
little direct involvement with construction related
research and even less with practice. Subsequently,
construction professionals hold rather little regard
for university researchers contributions to the
development of theory and applications. The
function of the universities is to provide basic
research, consultants and advisors (Paulson, 1991)
but, most importantly, to produce a flow of
graduates that are well trained in engineering and
scientific
fundamentals.
Nonetheless,
the
relationship between Japanese universities and the
construction industry is rapidly changing toward
stronger cooperation (Li, 1995). There are limited
examples of some significant practical university
research, particularly in the construction materials
area (Li, 1995) and robotics (Paulson, 1991).
Another source of innovative ideas is research
originating in other countries. As Sidney Levy
(1990:339) put it [a]t times they have picked
through the trash () to retrieve a few prematurely
cast off gems. The Japanese have proved
themselves to be adept at advancing innovations
made elsewhere, and many general contractors have
endowed listening posts at major US research
universities to keep informed of new developments
(National Institute of Standards and Technology
1996). A similar approach is also evident in the
construction materials manufacturing sector, also
based primarily on private expenditure, where
significant advances are achieved in both R&D and
implementation (Wright, Watson, & Fisher, 1991).
Key areas and objectives of Japanese R&D

The principal areas where R&D activity is focussed
are determined by the concerns of Japanese society
and are aligned with national policy. Despite the fact
that R&D is mostly performed within private
research institutes, output is still required to have a
long-term focus on the overall betterment of both the
built environment at large and national
competitiveness. This is the legacy of a historically
shared culture of concurrence between the key

stakeholders of government and industry, and the
Japanese society they serve. The key research areas
and their main objectives are here discussed briefly,
as defined by the National Institute of Standards and
Technology (1996).
A significant need for R&D in Japan is a result of
the physical characteristics of the country. R&D into
materials, designs and technologies that minimise
the impact of earthquakes is considered to be a
priority area. This is motivated by the frequent
occurrence of earthquakes in the country, most
recently demonstrated by the devastation of the city
of Kobe in 1995. If earthquakes cannot be
prevented, then at least all possible measures to
mitigate their consequences are worthy of
exploration. In addition, with such high population
density, Japan is continuously pressured to make
optimum use of its limited habitable areas. R&D into
efficient residential and working environments, and
associated transportation and services infrastructure,
is of fundamental importance.
Japan is also facing major demographic changes,
particularly with respect to its aging population.
New types of facilities and different building and
city designs are needed to provide a comfortable life
for older citizens. Thus, there is an impetus to
develop technologies that permit continued
utilisation of an ageing labour force. Moreover, the
constraints imposed by increased welfare costs and
the erosion of the savings ratio imply that society
will be hard pressed to improve the infrastructure
(Kunishima & Shoji, 1995: 112) which in turn
suggests an increased need for reduced construction
costs. Urbanisation and changing lifestyles increase
the pressures for improved and updated
infrastructure.
As the Japanese economy matured and the people
became more affluent, sensitivity to aesthetics,
which might have previously been compromised for
economic efficiency, has increased. Moreover, the
achievement of a harmonious coexistence between
humans and nature is a deeply seated philosophical
belief shared by the majority of the population. The
Japanese consider it a national responsibility to
minimise the negative effects of human activities on
the natural environment, through both construction
itself and the disposal of its by-products (Kunishima
& Shoji, 1995). Both aesthetic and environmental
concerns are dictating the need for improvement of
materials, facility design and construction methods,
as well as the development of systems for the onsite
restoration of nature.
A stated goal of the Ministry of Construction is to
create the conditions that will permit the industry to
respond to fluctuations in the availability of skilled
construction workers. In 1989, it was reported that

Japans construction labour was 26% short of the
requirement (National Institute of Standards and
Technology (1996), the largest shortfall faced by
any domestic industry. The rapid raising of real
wages, sustained even when construction volume
was actually decreasing after the boom years of the
1980s led to an increase of the number of
construction employees (JFCC, 1994). There still
today remains a shortage of appropriately skilled
labour as the construction industry traditionally
absorbs unemployment precipitating from other
sectors. The problem is exacerbated by a prevailing
image of construction as dangerous, dirty, and
physically demanding (Sterling, 1992) which has
had a negative impact on constructions ability to
recruit and retain. These conditions create an
impetus to develop technologies which move onsite
labour needs to a more controlled work environment
and shorter working hours (Kunishima & Shoji,
1995), allow for use of a less-trained labour force
and make the work seem more high-tech and, thus,
more attractive to younger potential workers.
Finally, according to the National Institute of
Standards and Technology (1996), Japanese
construction organisations are well aware that
domestic construction costs are higher than
elsewhere and that real opportunity exists for
improvement. This is important, both for the
domestic market that is currently facing a number of
economic challenges as well as in terms of the
nations ability to compete with global concerns
both domestically and internationally.
A comparison of beliefs about

construction R&D in Japan and Australia
Interviews with executives from a judgement sample
of Japans 11 and Australias 14 largest construction
firms were conducted. Australia was chosen as a
typical example of western style free market
capitalist society for reasons of convenient as well as
its being a competitor of Japanese construction in
the general geographic region.
The respondents were asked who they thought
should conduct basic, applied (into materials and
processes) and social aspects of construction
research. They were offered three choices of
institutions (to ensure comparability of responses
across the two nations): universities, contractors and
materials manufacturers and suppliers. The
responses were coded by the researchers after the
interviews into a five point scale with the end
categories defined as: 1: this institution should not
conduct any research of this type; and 5: research
should be part of this institutions core business.
Points 2,3 and 4 on the scale were used to code
responses that indicated limited, some or major

involvement in research.
The first issue that was explored through multiple
histograms was attitudes towards which institutions
should engage in research, irrespective of its type.
The 5 point scale was collapsed into a three point
one by compiling the responses that were coded as
2,3 and 4 into the category some and the results are
shown in Figure 1.
The responses confirm the low reliance (and
possibly reflect limited respect) of the Japanese
industry for university based research. Only a third
of the Japanese respondents believe that research
should part of the universities core business, the
view held by the majority of Australians. A more
striking observation is that some Japanese thought
that universities should not be involved in
construction research at all. As expected this view
had no supporters in Australia at all.
5.00
4.00
3.00
2.00
mean JP
U
Pro
duc
ts
U
Pro
ces
s
U
Soc
ial
Bas
ic
1.00
mean AUS
Figure 1 Institutions that should engage in

construction research - perceptions of Japanese (JP)
and Australian (AUS) executives
The second question explored was which types of
research (basic, social issues, construction processes
and materials and construction products) should be
carried out by each type of institution (contractors
(C), manufacturers and suppliers (M) and
universities (U) in Figure 2). The means for each
country are plotted in Figure 2 and provide further
support for the arguments presented above as well as
clarifications of the respondents beliefs about R&D
responsibility as well as capacity.
14%
14%
45%
NO
SOME
CORE
39%
38%
45%
55%
57%
55%
61%
63%
55%
M
AN
AU
UF
S
AC
TU
RE
RS
-JP
29%
CO
AU
S
NT
RA
CT
OR
SJP
UN
IV
ER
SI
TIE
S
-JP
32%
AU
S
The shared culture of the Japanese industry, that

research should be carried out by private firms is
shown by the fact that the majority of the
respondents
thought
that
contractors
and
manufacturers should carry out research but no one
thought that they should not be involved with such
activities at all. Some Australians thought that
research should be part of the core business of
manufacturers and suppliers but nobody perceived it
as an essential part of their own business. Moreover,
more that a third of the Australians perceived
research activities to be none of their companies
business and no one saw it as a core activity.
Figure 2 Opinions of Japanese (JP) and Australian

(AUS) construction executives about which
institutions that should perform each type of
research.
The Japanese firmly believe that private firms
should be heavily involved in all types of research.
There was total agreement among them that research

into processes is an integral part of the core business
of contractors, and research into new products
should rest primarily with the manufacturers but
with contractors also heavily involved in it. The
universities, they believe, should have very little to
do with both these areas of applied research. They
see the main responsibilities of universities being
basic and social issues research in which they expect
to have a more than moderate to heavy involvement
themselves as well.
The Australian contractors expect research to be
carried out primarily by universities. They expect
their suppliers to carry out a little basic research,
some research into social issues and to be heavily
involved in new product development. Even their
involvement in the development of new construction
processes, an area that could directly benefit their
firms, they see as far from being part of their core
business. With research funding to universities being
limited and continuously decreasing, the ability of
the Australian construction industry to create, or
even sustain, whatever limited technologyrelated
competitive advantage in the domestic, as well as the
international market place is seriously questioned.
Conclusions and implications

The Japanese construction industry has, for many
years, enjoyed a virtually closed, large domestic
market with protected profit margins. The traditional
prequalification and negotiated contract system
effectively elevates the operation of a research
institute to an effective barrier to market entry for
contractors who do not have, or cannot afford such
facilities. As having a research institute is a
prerequisite to obtaining joint research program
funding from the Ministry of Construction and to
obtaining large public works projects controlled
directly or indirectly by the Ministry, some medium
size companies have established research institutes,
while smaller contractors are effectively excluded.
For foreign firms, this barrier is one of the most
effective invisible ones ever created. At the lower
levels of the construction industry, no comparable
barriers to entry exist, and the Japanese construction
industry appears to be as easy to enter at the bottom
as are the construction industries in other countries.
This, however, is hardly a consolation for foreign
firms wishing to tender for jobs in Japan.
Even with a depressed domestic market, and under
intense pressures for greater transparency in public
procurement (Construction Technology Research
Working Group of the Japanese Society of Civil
Engineers, 1996), which could have reduced the
marketing value of R&D competency, the research
institutes of the Japanese construction firms are still
flourishing. Most importantly, for their long-term
survival and funding, they are still much relied upon

for the creation of new knowledge and the
advancement of technology.
R&D efforts in construction technology are not
justified on a purely economic basis. The payback
period for new developments is not even calculated
and is not an issue in the development of research
programs. Certain of the products of R&D are more
valuable to demonstrate R&D prowess and thus to
provide competitive advantage than they are to
reduce cost or improve quality. The research
institutes have clearly been advantageous to the
large general contractors. The direct payoffs may not
be measurable, but the indirect benefits to the
contractors with R&D institutes have been
substantiated. According to the Japanese Federation
of Construction Contractors (JFCC, 1994), the
market share and profitability of the top construction
contractors (with R&D institutes) increased not only
during the booming days of the 1980s but also
during the subsequent sluggish times.
The Japanese have been formidable contenders
(Paulson, 1991: 37) in the worlds markets for over
30 years. Since 1993, however, Japanese contractors
have been aggressively targeting overseas,
especially Asian, markets where they are becoming
increasingly successful. In these markets, they
compete with Australian firms for large civil
engineering and technically complex building
projects. Their competitive advantage lies mainly in
expertise and technological sophistication, which
have been repeatedly found to far surpass US
capabilities (Hampton, 1991; National Institute of
Standards and Technology (1996). Their stated
strategic objectives are technical advantage over
competitors as well as contributing to the general
public in the fields of prevention of global
environmental destruction, providing economical
infrastructure, enhancement of safety, etc.
(Construction Technology Research Working Group
of the Japanese Society of Civil Engineers, 1996:
B7). In these areas the Australian construction
industry seems to be reluctant to invest.
References
Construction Technology Research Working Group
of the Japanese Society of Civil Engineers,
(1996). Overview of the Japanese Construction
Industry. In National Institute of Standards and
Technology, Innovation in the Japanese
Construction Industry. Washington, DC: US
Government Printing Office.
Hampton, D. (1991). Transferring Research into
Practice: Lessons from Japans Construction
Industry. Washington, DC: Civil Engineering
Research Foundation.
Hasegawa, F. (1988). Built by Japan: Competitive

Strategies of the Japanese Construction
Industry. New York: John Wiley & Sons.
JFCC. (1994). Construction in Japan, 1995. Tokyo:
Japan Federation of Construction Contractors.
Kunishima, M., & Shoji, M. (1995). The Principles
of
Construction
Management.
Tokyo:
Sankaido.
Levy, S. M. (1990). Japanese Construction: An
American Perspective. New York: Van
Nostrand Reinhold.
Li, V. C. (1995). Construction Materials
Development and Applications in Japan
(UMCEE Report 95-07). Ann Arbor,
Michigan:
Department
of
Civil
and
Environmental Engineering, College of
Engineering, The University of Michigan.
Paulson, B. C. J. (1991). Japanese Research and
Development. In R. L. Tucker, J. W. Fisher, D.
W. Halpin, R. Nielsen, B. C. J. Paulson, G. H.
Watson, & R. N. Wright (Eds.), Construction
Technologies in Japan. Baltimore, Maryland:
Japanese Technology Evaluation Centre,
Loyola College in Maryland.
Sterling, R. L. (1992). Research and Development in
Excavation Technology in Japan with
Comparisons to the U.S.A. and Europe.
Washington, DC: National Science Foundation.
National Institute of Standards and Technology
(1996).
Innovation
in
the
Japanese
Construction Industry - A 1995 Appraisal.
(NIST Special Publication 898). Washington:
US Government Printing Office.
Tucker, R. L., Fisher, J. W., Halpin, D. W., Nielsen,
R., Paulson, B. C. J., Watson, G. H., & Wright,
R. N. (1991). Construction Technologies in
Japan.
Baltimore,
Maryland:
Japanese
Technology Evaluation Centre, Loyola College
in Maryland.
Wright, R. N., Watson, G. H., & Fisher, J. W.
(1991). Construction materials. In R. L.
Tucker, J. W. Fisher, D. W. Halpin, R. Nielsen,
B. C. J. Paulson, G. H. Watson, & R. N.
Wright (Eds.), Construction Technologies in
Japan.
Baltimore,
Maryland:
Japanese
Technology Evaluation Centre, Loyola College
in Maryland.
Internet brand creation in global markets: The case for a logistical

panacea
Dr. Kamal Ghose
Abstract
As the new century dawns, new realities are visible
which are reshaping the world as we know it and the
way organisations must shift their attitudes to profit
from it. The internet as a marketing tool is becoming
an important part of brand creation activity. In the
case of global brands, the last couple of years have
shown that we have entered the new fifth era of
marketing evolution the communication &
information era. As early as 1960 Harvards Ted
Levitt wrote in Marketing Myopia, There is no such
thing as a growth industry. There are only consumer
needs, which might shift at any time.
Every brand wants to rule the world. What prevents
the brand from doing so may well be the
inadequacies in the logistical networks which have
either been overlooked, or in many cases, been taken
for granted. The crucial role of logistics is making
itself felt in the increasing number of Internet startup failures. The paper identifies this as a key
problem area for global companies having online
marketing interest. The paper identifies some
organisations which have pro-acted & designed
networks to effectively serve the logistical needs of
the customer These organisations have succeeded in
taking advantage of the vast potential in distant
niche markets. Warns Ashok Soota, Chairman
,MindTree Technologies Dotcoms that dont have
good business models will either go bust or be
bought over. Remember, the failure rate of Net
business in the US is 95 percent.
As Saul Bellow had the title character in Augie
March say People create a world they can live in,
and what they cant use, they often cant see It is
obvious that the difference between success &
failure in the future internet markets often lie in the
backend capabilities of the logistical networks,
which will have a crucial role to play in ensuring
customer satisfaction. It is becoming obvious that
management & marketing has to design integrated
logistical networks with flexibility, taking care of
the future needs.
As Bill Gates, ex-CEO, IBM put it Like a living

organism, an organisation functions best if it can
rely on a nervous system that will instantaneously
deliver information to the parts that need it.....How
you gather, manage & use information will
determine whether you win or lose. And there is a
lot of information out there, if only organisations
would focus on the need for it. Schultz,
Tannenbaum, and Lauterborn, make their case in
asserting that many companies are held hostage to
traditional marketing variables such as product
development, price, or distribution. What most
marketers face today is a parity marketplace, they
say in which the only true differentiating features
are either logistics or communications. While
communications is getting the consideration it
deserves, the need for integrated logistical networks
for online companies looking to global markets is
the theme of this paper.
Introduction
This article highlights the crucial importance of
enhancing the quality of logistical performance as a
key to customer satisfaction and business success for
online multinational marketers. The resultant service
differentiation will be the cornerstone of brand
creation.
Logistics has created an overlapping blur between
products and services. As J.C. Anderson and
J.A.Narula (1990) have put it When the increase in
velocity of business is great enough, the very nature
of business changes. A manufacturer or retailer that
responds to changes in sales in hours instead of
weeks is no longer at heart a product company, but a
service company that has a product offering.
With the evolution of the internet as a marketing
tool, giving the least cost benefit & making
information freely available to customers worldwide
on the net, logistical competency is becoming a
tangible way of attracting customers. It is now
possible to utilize logistics as the core competency
that becomes difficult to duplicate.
Talking of future trends Schultz, Tannenbaum, and
Lauterborn argue Distribution is no longer a
marketers decision. The consumer decides how,

where , and when he or she wishes to buy, and the
marketer had better be there.. Marketers need to
learn to think beyond those nice, neat, controlled
distribution channels they set up over the years.
They need to learn how each sub segment of the
market prefers to buy, and then how to be there.
People dont have to go anyplace anymore, in this
era of the dynamic World Wide Web. And the sub
segment of the market as far as logistics for a
company like Amazon .com goes is the quality of
their relationship with each & every customer.
Traditional marketing distribution

channels & the new Internet channel
The traditional marketing channel consists of
transaction specialists, such as manufacturing
agents, salespeople, jobbers, wholesalers & retailers.
The logistical channel usually consists of seven
levels: factory warehouse, company truck, regional
warehouse, motor common carrier, public
warehouse, local delivery, and customer. In the
traditional as well as the new Internet channel,
logistics represents a network of working
relationships specializing in achieving inventory
movement and positioning. The two channels
converge only at customer level.
The work of logistics involves transportation,
inventory storage, materials handling and order
processing plus an increasing variety of value-added
services. Those involved in the logistics process are
concerned with resolving time and space
requirements and while the internet is very cost
effective as an ubiquitous promotional tool, logistics
to support the sales transactions is in a
comparatively primitive stage. Placing an order for a
product from a producer located in the US may take
only a few clicks of the mouse & a few seconds. The
physical delivery of the product is however a
different ball game altogether & may take weeks
with a potential cost component capable of killing
the time & cost advantages of the www.
Customer service is a key element in developing a
logistics strategy. The aim of logistics is to provide
customers with timely & accurate product delivery
at a reasonable cost. The objective is to build
integrated organizational logistical competency
networks that become difficult to duplicate. This
will be the competitive advantage in the online
markets. To fully leverage logistics, the power of the
external integration must be incorporated into the
overall performance. The core competencies of the
logistically networked partners must be integrated in
the customer service design to multiply the synergies
created.
Logistics as a Key strategic move

The overall goal of logistics is to achieve a targeted
level of customer service at the lowest possible cost,
or give a competitively superior level of service at
the lowest possible cost. In Internet global
marketing, logistics becomes a key competitive
factor. Basic logistical service is measured in terms
of
1) Availability of the product or service, at the
right time, right cost & right place
2) Operational
performance.
Operational
performance deals with the time gap from order
receipt to delivery & involves the factors of
speed & consistency, and
3) Service reliability.
Logistical effectiveness in global Internet companies
must therefore have
Flexibility in terms of operations to

accommodate individual requests for mass
customisation.
A system to instantly identify and track any

logistical operational errors and the ability to
recover quickly from any such error .
History bears witness to the fact that firms that have
supported logistics earlier have reaped the benefits.
As Joe Hardin, Executive VP, Logistics &
Personnel, Wal-Mart put it
Distribution &
transportation have been so successful at Wal-Mart
because senior management views this part of the
company as a competitive advantage, not as some
afterthought or necessary evil. And they support it
with capital investment. A lot of companies dont
want to spend any money on distribution unless they
have to. Ours spends because we continually
demonstrate that it lowers our costs. This is a very
important strategic point in understanding Wal-Mart.
I have the growing conviction that the product
supply conception is perhaps the single most
important thing that can influence our profit
performance over the next several years.
A firm can achieve sustainable competitive
advantage when important customers perceive that it
has the capabilities to logistically outperform
competitors. A prerequisite to strategic logistics is
the development & implementation of supply chain
integration. The complexity of future logistics will
involve innovative arrangements. New ways of
performing logistical requirements will have to be
created. Using old ways more efficiently will
provide only half the solutions. Logistics will be
managed on an increasingly integrated basis. In
general, methods to help measure, compare, & guide
logistics performance have not received adequate
attention in information system development.
Internet Brand Identity depends on the

total customer experience.
Product parity is the name of the game in the online
markets, as Schultz, Tannenbaum, and Lauterborn
clarify Quality is no longer determined by
manufacturing standards, but rather by customer
perceptions of price/value. And elements of
manufacturing discretion such as ethical souring,
workplace health and safety, and environmental
responsibility become part of the product. Decisions
must be based on other cost based economics.
Since product features can be duplicated, in the long
run, service quality, will be the winning edge. For
the Internet brand, logistical cost & effectiveness is
likely to become the deciding service quality factor
for winning customers. Logistical capabilities, the
supply chain network & information systems will
play a key role in brand creation & positioning.
Phillip B Evans & Thomas S. Wurster wrote in
Harvard Business Review, (1997)
Incumbents could easily become victims of their
own obsolete infrastructure & their own
psychologyfor example the physical parts of sales
& distribution systems, such as branches, shops &
sales forces. As with newspapers, the loss of even a
small portion of customers to new distribution
channels or the migration of a high-margin product
to the electronic domain can throw a business with
high fixed costs into a downward spiral
An Early Infomediary -The Dell Example

The battle for a position in the consumers mind
starts with the need for customer information. Such
information is power, since it enables the
organization to target their offerings to individual
customer needs & improve customer satisfaction.
Infomediaries may well be the leading future
Internet brands acting as brokers & custodians of
customer information to businesses. Such
infomediaries will provide a combination of services
for the customer. To name a few, information
processing, order processing,
co-ordination of
transportation & the physical transfer of the product
ownership. Such brands will need to learn the
variety of logistical needs of the customer & use this
learning to constantly improve the quality of service
in tune with individual consumer needs. One such
example is Dell Computers
In the highly competitive world of computer
markets, Dell Computers have reached a run rate of
(US) $3 to 4 million a day. During Christmas season
they have many $6 million days. As Michael Dell
says What we are all about is shrinking the time
and resources it takes to meet customers needs. And
we are trying to do that in a world where those needs
are changing The Dell example is an important
model for this paper. Michael Dell began in 1984 &

created a $12 billion company in just 13 years.
Information technology helped create relationships
with suppliers & customers. Effective logistics
infrastructure helped Dell revolutionize the
fundamental business model. Customer focus,
supplier partnerships, mass customisation & just in
time manufacturing combined in a highly innovative
format has worked wonders for Dell. This is how
marketing battles of the information age will be
fought.
Inventory velocity is one of a handful of key
performance measures monitored very closely at
Dell. It focuses on working with the supplier to keep
reducing inventory and increasing speed. The
delivery agents for Dell, Airborne Express or UPS,
match the required number of computers with the
required number of monitors from the Sony factory
at Mexico & deliver the matched monitors &
computers to customers in any part of the world.
As Michael Dell comments If you have a 90 day
lag between the point of demand & supply, youre
going to have a lot of inefficiency in the process...
Its both the design of the product & the way the
information from the customer flows all the way
through manufacturing to our suppliers. If you dont
have that tight linkage- the kind of coordination of
information that used to be possible only in
vertically integrated companies- then trying to
manage to 11 days of inventory would be insane.
We simply couldnt do it without customers who
work with us as partners. The synergy of integrated
logistics put in place by Michael Dell through the
creation of a network consisting of the manufacturer
(Sony),
a courier organisation (UPS), & the
customer who may be involved with the product
from the concept & design stage, has ensured a
brand loyal customer base generating constant
profits for the organisation.
Is this then the key to creating global Internet
brands?
On the horizon
The question of logistical effectiveness of

services has not been dealt with in this paper. It
presents a big field of research in itself.
Some of the big economies of the world, like

China, & India, with exploding trade volumes
present attractive markets. Most global firms
supplying to markets in these countries rely
heavily on local managers to run logistics
operations. The magnitude & complexity of
logistical operations in those markets are simply
mind-boggling.
On the other hand, these markets offer vast potential
as production bases with low cost manufacturing
opportunities. While theoretically an effective

transactional web site could ensure highly price
competitive products and services, the backend
capabilities threaten to offset these competitive
advantages & can be a logistical quagmire. This
brings us to the Infotic Circle, exploring the
relationship between the Average Response
Time(ART) and the infomediaries .
Transaction
Information model
1. Web site
2. Transactions
3. Customer support/service
The
Logistical
Circle,
changing & Interacting
Constantly
The changing trends in the global Internet markets

will mean infomediaries matching the constantly
changing logistical needs of the consumers & market
niches. The Average Response Time or ART is the
time taken by an average web marketer to respond to
the customer order. An assessment of the
effectiveness of logistical networking may be based
on the average response time (ART) of other
marketers in the industry & the need to differentiate
from the ART in terms of time , cost & delivery
systems. Analysis of highly innovative alternate
methods will provide the new networks. These are
the first steps to brand creation, with the positioning
statement being in tune with the logistical
capabilities & competitiveness.
4. Image/product information
5. Information collection/market research

Source Ranchhod. A., Advertising into the next
millennium. Note Adapted from Quelch and
Klein,1996
A paper by Ashok Ranchod of Southampton
Business School points in the same direction.
Internet start-ups or small companies work towards
a transaction/information model in order to
minimize cost. They can thus continue to spend
more time building brand image, providing product
support & winning repeat purchases wherever
possible. A small business success story in this area
is a company such as Jack Scaife butchers in
Keighley in Yorkshire (Oldfield and Burnham,
1997). The Internet offers ample opportunities for
Marketing Planning
Positioning Statement &
Brand Identity
Logistical systems capability
& capability
Networks & links

capabilities assessment
Cost
Profitability
Price
Brand Identity
Infomediaries
Logistical
requirements
of consumer
Logistical Planning
Analysis of
alternative
logical networks.
Logistical Networks
Industrial standards
ART
new product diffusion, the possibility of adapting

products & services to meet local requirements and
niche product selling by smaller companies to an
instant global audience. Jack Scaife butchers sell
cured pork over the Internet and receive a substantial
number of e-mails from Hong Kong and Japan.
How do we create price & time parity for products
from shops like Jack Scaifes in UK for individual
customers in Japan and Honk Kong? What kind of
logistical networks do we need to put in place to
ensure that products reach their overseas customers
at the same cost compared to products from the
neighbourhood butchery?
B. R. Clark (1997), writing in Marketing
Management argues just as one web store reaches
the world, markets that are too small on a local basis
can become viable on a global one. For this to
happen, we have to create those integrated logistical
networks, maybe as Dell Computers has done, and
find the synergy to effectively reduce the time &
distance factor. Such hybrid marketing may show
the way to the future.. Big brands will obviously
continue to have an impact, but niches will become
much more competitive & fragmented. The power of
the Internet is fast hurtling the world to become the
global village. There are miles to go however, before
global logistics comes up-to-date with the quantum
speeds @ the www. The time has come to take a
much closer look at the concept of flexible
Integrated Logistical Networks (ILN) encompassing
a different and less explored paradigm.
References
Hardin, Joe. Executive VP, Logistics & Personnel,

Wal-Mart in Sam Walton, Made in America;
My Story, NY; Doubleday 1992John Smale,
retired Chairman, Procter & Gamble P & G
Rewrites the Marketing Rules Fortune, Nov 6,
1989,p 46.
Lovelock. C.H , Patterson P.G. and Walker
R.H(1998) Services Marketing Australia &
NZ Prentice Hall Australia Pty Ltd.
Oldfield, C.& Burnham , N.(1997) Internet brings
home the bacon, The Sunday
Times,
Business Section, 2 March, 10.
Ranchod, A ., Associate Professor and Head
(Marketing), Southampton Business School,
UK Advertising into the next millennium
International Journal of Advertising, Vol 17,
November 4,1998.
Rayport J.F and Sviolka. J.J (1995 Nov Dec),
Exploiting the virtual value chain, Harvard
Business Review.
Soota.A., Chairman & MD, MindTree Technologies,
India,DoubtCom, India
Today, July
24,2000.
Stan. D and Chris. M (1998), Blur, Ernst and
Young, New York.Stern.
L.W, El Ansary. A and Coughlan (1996),
Marketing
Channels,
Prentice
Hall
International Editions, 5th ed, New York.
Williamson O.E.(1975), Markets and Hierarchies,
Free Press, New York.
Dr. Kamal Ghose
Christchurch, New Zealand
Email: kamal.ghose@cce.ac.nz
Anderson. J.C. and Narula J.A.(1984), a model of

the distributors perspective of distributormanufacturer working relationships, Journal
of Marketing, 48, 62-74.
Anderson. J.C and Narus. J.A.(1990), A model of
distributor firm and manufacturer firm working
partnerships, Journal of Marketing, 54, 42-58.
Bowersox. D.J. and Closs D.J. Logistical
Management- The Integrated Supply Chain
Process(1996)McGraw-Hill
Book
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Clark,B.R.(1997) Welcome to my parlor,
Marketing Management,5(4),Winter, 11- 256.
Duwer. F.R, Paul H.S and Sejo. O (1987),
Developing
Buyer-seller
relationships,
Journal of Marketing 52, 21-34.
Gates. B(1998) Business @ speed of thought
Viking Penguin Books Australia Ltd, Victoria.
Ghose .K. Logistics - The Final Frontier (1996)
National
Convention
on
Materials
Management, New Delhi, India..
Hanson.
W
(2000)Principles
of
Internet
marketing, S.W. College Publishing.
Business confidence Logan City where to from here?

Geoffrey John Greenfield
Abstract
This paper will describe business confidence in
Logan City, Queensland and the relationship of this
confidence to the predominance of retail/service
businesses. As a young city, the development of a
strong and effective employment base is important to
maintain and increase employment potential in an
already disadvantaged area. The confidence of those
businesses represented in this study is therefore
important.
Based on an ongoing database of businesses
compiled by the Logan Regional Economic
Development Board of businesses in the city, it
surveyed amongst other issues their expectations for
business over the following twelvemonth period.
Analysis of the total data indicated a predominance
of service/retail businesses and businesses
employing less than 100 staff. The limitation that the
degree of business confidence will have on the
ongoing growth and prosperity of the businesses and
therefore the city as a whole is questioned.
Keywords
Business; Confidence; Logan City
Introduction
Logan, as a shire, created from the fringe areas of
Brisbane City, Redland, Beaudesert and Albert
Shires on June 8, 1978, became a city on January 1,
1981. It grew as a dormitory suburb for Brisbane.
The city developed from a reputation of almost a
frontier town, being a source of low cost
development land although, lacking basic services
and business infrastructure.
Mike Kaiser MP, during his maiden speech to
parliament pointed out that Woodridge developed as
a massive Housing Commission suburb. This
avoided the stringent controls on development in
Brisbane and accepted the lower standards of
services required by the then Albert Shire (Hansard
15 March 2000). The legacy of this can be seen in
the comparison of public housing in 1996, 3.95% of
the total Queensland housing was public compared
to 7.12% in Logan (Logan City - A Community
Profile, 1998).
It was during these formative years that Woodridge

was labelled with the name of Hepatitis Hollow.
This was due to the lack of domestic sewerage
connections, as well as kerbing and channelling.
Newspapers of the time portrayed it as having
almost third world living conditions. Logans 29
suburbs now cover 249.7 square kilometres,
sandwiched between Brisbane and the Gold Coast,
Australias fastest growing corridor.
The city has in recent times seen the greater
provision of major infrastructure development such
as the Logan Hospital, Logan Institute of TAFE and
most recently Griffith Universitys Logan Campus.
Today though many of these stigmas have
disappeared, Logan still carries the burden of the
lack of planning that preceded its formation.
Table 1 Employee population by size
Employer
Size
1-9
10 - 19
20 - 49
50 - 99
100 or more
Number of
Businesses
Logan
2599
377
194
73
47
Total as Percentage
Logan
Nationally
%
%
78.7
26.0
11.4
11.8
5.9
13.0
2.2
9.6
1.4
39.6
Logans business base employs 35,921 people in

over 3300 businesses, with 99% of them employing
less than 100 staff and of this 63% employ less than
five staff, refer Table 1.
Also unemployment rates in Logan, over the last 10
years, have been declining though the suburbs of
Woodridge (22.5%) and Kingston (21.9%) hold the
distinction of 3rd and 4th respectively highest
unemployment levels in Queensland (DEWRSB,
2000).
The Australian Bureau of Statistics defines a small
business as those employing fewer than 20
employees in the service industries and fewer than
100 employees in the manufacturing sector (ABS,
1998). Nationally, close to 1.5 million Australians
run their own small businesses (Alberici, 1999). The
challenge for Logan City is to adjust from being a
frontier urban development to a maturing city
finding its place in a competitive world. This paper

describes the current situation of businesses in
Logan City and their confidence levels over the next
12 months.
Methodology
The research population of this study was defined as
businesses operating within the geographical
boundaries of Logan City. The data collected by the
Logan Regional Economic Development Board
(LREDB) is a reference tool for prospective
businesses investigating the business opportunities
in Logan. The participants answered a series of
biographical, statistical and business expectation
questions, with the data entered into an Access
Database. The respondents were drawn from
previous surveys and newly identified businesses
and totalled 3303 individual organisations. The data
collected using telephone interviews over a six
months period is correct as at April 2000. The data
was analysed using SPSS.
Results
Of the respondents 47.3% believed that, their
business would remain the same over the next 12
months with 42.8% believing that there will be an
increase. Also, there was a significant number
(9.8%) who felt that their business would decrease
over the same period.
Table 2 Business Expectations
Business Levels In next 12 Months
Business Type
Manufacturing
Wholesale
Retail
Service
Rural
Total Business
Increase
%
51.3
75.0
43.7
41.7
40.0
42.9
Decrea
se
%
6.6
9.8
10.2
9.6
13.4
9.8
Remain
The
Same
%
42.1
54.3
46.0
48.7
46.7
47.3
Total
By
Type
380
256
1036
2015
15
3301
Note: Some businesses identified themselves as covered by more

than one type and recorded accordingly.
Table 2 shows the breakdown of business types and

their respective expectations. The distribution of the
types of businesses shows that there is a high
concentration in the Retail and Service sectors with
only a small manufacturing base. The manufacturing
sector with the wholesale sector shows a greater
confidence. Furthermore, those having current
markets other than Queensland were more confident
about the future. However, over 98% could not see
any export potential for their businesses. Those
businesses that were home based had a higher than
expected outlook that their business would
decrease/remain the same over the next 12 months,
with private companies overall being more positive
of the future prospects.
Table 3 Employees by Industry type

Industry Type
Number of
Number of
Businesses
Employees
Manufacturing
379
5575
Wholesale
355
4003
Retail
1035
10,824
Service
2017
20,845
Rural
15
630
Table 3 reports the breakdown of business numbers
and their number of employees. This shows a high
employment concentration in the service/retail
sectors and reinforces that manufacturing is a small
player in the overall Logan business community.
On the question of training, there was a high
propensity for businesses to provide training,
independent of the training source i.e. Inhouse,
TAFE, Apprenticeship or consultants. The majority
of the training that businesses undertook was
inhouse (80%) with external training also an
important source to businesses (TAFE 6% and
Apprenticeships 15%), refer table 4.
Table 4 Employee Training Provided
Type of Training
Undertaken
InHouse
TAFE
Apprenticeship
Consultants
Number of
Businesses
Percentage of
Businesses
2423
210
490
115
80%
6%
15%
3.5%
Concerning skill shortages in the workforce,

businesses appeared to be more pessimistic about the
short-term conditions, 79% responding that they
currently have no skill shortages. However, on the
longer term they are more positive, 95% of
respondents stated that they perceive no future skill
shortages.
Discussion
The results of the present study confirmed that the
business community in Logan City is pessimistic
about the future. Although, there is some optimism
in the manufacturing/wholesale sector it is only a
small employer in the overall community and
therefore has little impact on the overall picture.
However, it is the comparison of business size that
shows the shortfall of employment potential in
Logan.
The heavy skew of businesses in Logan to below
100 employees differs greatly from national figures,
refer table 1. It can also be seen that there is a heavy
base of micro-businesses in comparison to the
national figures (78.7% Logan, 26.0% National).
This as well as the reduced number of large
employers 1.4% compared with 39.6% nationally

shows a limitation to Logans potential to grow.
Logan does not appear to have the employment
ability and business confidence characterised by the
investment in infrastructure of new larger
businesses.
In comparing Table 2 and Table 3, the dominance of
the secondary industries (wholesale, retail and
service), over the product generating sectors of
manufacturing/rural shows the greater dependence
on supplying to the needs of the population rather
than providing for the population with primary
production and manufacturing.
Conclusion
This paper has described business confidence in
Logan and the relationship of confidence to the
predominance of retail/service businesses. There is a
need to further investigate this in relation to the
introduction of the Goods and Services Tax as well
as carry out longitudinal studies to examine whether
the overall lack of business confidence is endemic or
transitory.
Acknowledgments
Logan Regional Economic Development Board
Table 5 National Business Expectations

Businesses Expecting
Increase
December Qtr
1999
September
Qtr 2000
Decrease
December Qtr
1999
September
Qtr 2000
Remain
December Qtr
the same
1999
September
Qtr 2000
businesses to establish themselves here. For it

appears that there is a relationship between business
size and their confidence in the future.
Operating
Income
Selling
Prices
Profit
58.7%
33.3%
52.3%
64.1%
54.3%
53.0%
16.8%
16.3%
32.2%
16.1%
11.9%
31.0%
24.5%
50.4%
15.5%
19.8%
33.7%
16.1%
References
Alberici, E. (1999). The Penguin Small Business
Book. Ringwood: Penguin Books.
Department of Employment, Workplace Relations
and Small Business. (2000). Small Area
Labour Markets Australia [Online]. Available:
http://www.dewrsb.gov.au/group_lmp/files/sal
m/salm_dec99.PDF [2000, April 17].
Logan City A Community Profile. (1998). Logan
City Council, Australia.
The confidence of businesses in Logan when

compared to national averages shows that there is a
significant difference in the attitudes of businesses.
Logan businesses were less positive concerning their
business increasing (42.9% Logan 58.7%
Nationally). This may be only transitory or it may be
endemic and a further longitudinal study needs to be
carried out to determine which. However, in
comparing the expectations of businesses nationally
(Table 5) between the two quarters, a significant
difference can be seen.
On July 1, 2000, the Australian Government will be
making the greatest fundamental taxation change in
Australias history with the introduction of a Goods
and Services Tax (GST). In comparing selling
prices, 54.3% of businesses expect that they will
increase post GST, with 64.1% expecting an
increase in their operating profit. However, 47.0% of
businesses are expecting profit to either decrease or
remain the same. This may be acceptance of the
effect of the GST on business costs though they do
not see it having a major impact on the overall
profitability of their businesses. The impact of this
for Logan is that its high reliance on service/retail
based businesses and areas of high unemployment
needs to be tested with a further study of the post
GST attitudes of its businesses.
There may be a need for the development of an
environment in Logan that will encourage larger
Interaction in the public interest: Regulating new communications

technologies to deliver public interest information services
Joanne Jacobs
National Centre for Australian Studies, Monash University
Abstract
The establishment of public information services via
digital media is still immature, and synchronicity
between traditional media services and new media
content is still developing. It is therefore timely to
consider the future role of public media institutions
as carriers of government information services in
this new environment. Traditionally, Australian
communications legislation has recognised the
sphere of influence of broadcast media and acted to
ensure the community has access to information in
the national interest. As content provision in the
communications sector fragments with the
introduction of new delivery mechanisms, it is
reasonable to consider reviewing regulation for
these broadcast media institutions so that it registers
the widening influence of new media forms.
Contemporaneously, execution of content controls
for the online environment in accordance with
directives under the Broadcasting Services Act 1992
is exacerbated by difficulties in tracking and
monitoring of content. This paper explores some of
the options for management of information
provision, and concludes that traditional public
media institutions are best placed to provide access
to public interest information online and to act as a
filtering mechanism to practically achieve online
content controls.
Keywords:
Public sector; new media; access; content control.
Identifying the problem

The practice of information management is
generally regarded as being a process of striving for
greater
efficiencies
in
service
provision.
Advantageous to service providers and to
consumers, this process can be seen as being both
assisted and exacerbated by technologies emerging
from the so-called information revolution. While
these technologies can potentially speed up and
personalise provider consumer relations, there are
also strategic and ethical issues that arise for service
providers who specialise in public sphere, value
based information services. Beyond ideological
questions of the appropriateness of automated public
interest services provision, there are issues about

existing policy environments and how these
accommodate new media technologies. At an
organisational level, the evolution of emergent
technologies has brought about a need for rethinking
public sector information service provision.
Attention now needs to be given to specific
processes of delivery, particularly for content which
is regulated in accordance with technical
specifications based on older, more limited media
services. While it is impractical to consider a
complete renovation of media policy, it is
satisfactory to consider a regulatory structure for
data service provision based around a national
provider. Such a course of action provides a testing
ground for the commercial application of new media
policies, and ensures minimum carrier obligations
for public sector information services.
Definitions for new technologies

For the purpose of this paper, a strategy for
nationally-mediated public sector information
provision will be addressed for the technologies of
netcasting and datacasting. Netcasting is defined as
audio and/or audio visual content delivered via
point-to-point
protocol,
computer-mediated
communications devices, connected via traditional
telecommunications infrastructure, whether that
infrastructure be twisted pair, coaxial cable, fibre
optic cable, satellite communications, microwave
distribution systems, or a combination of these or
other cabling or wireless communications. The
definition of datacasting drawn from the Australian
Television
Broadcasting
Services
(Digital
Conversion) Act 1998, as non-broadcasting
content is employed for this paper, and expanded to
accommodate government imposed restrictions on
the length of audio and audiovisual materials to be
delivered via datacasting. While these are merely
technical specifications, the discrimination of
netcasting and datacasting is valuable for two main
reasons. Firstly, these technologies are yet to meet
with widespread adoption. Adoption of netcasting
on the global internet is presently delayed due to
bandwidth and compression considerations, but
these are likely to be alleviated with implementation
of recent initiatives in bandwidth maximisation (e.g.:
Dense Wave Division Multiplex technologies

presently being developed at Telstra Research
Laboratories) and compression, in addition to
comprehensive household penetration of cable
modem communications.
Datacasting as a
component of digital broadcasting is set to begin
from 1 January 2001, but requires consumer
purchase of appropriate reception devices to display
content, but if the adoption of digital television
reception devices in the US and the UK may be used
as a guide, datacasting is a technology which is
likely to meet a mass audience in just a few years
(Cringely, 1999).
Public interest and new media

For equitable and effective communications to
evolve from emergent technologies, information
dissemination must be managed in a manner which
recognises the technical characteristics of digital
communications, whilst also delivering public
interest content to the widest possible audience. But
such an objective is not easy to achieve. The means
of delivering public interest content must be defined
in regulatory terms which do not unduly restrict the
competitive communications environment operating
on a global scale. Restrictive regulatory practices
only threaten Australias embryonic trade in
communications products and services. Therefore it
is necessary to consider enabling rather than
disabling regulatory options for technologicallymediated public information services.
Prior to describing the means of delivering these
objectives, it is essential to define the scope of
public interest information provision.
Several
questions arise when such an exercise is attempted:
are these specifications of any public interest
objectives for new media static, or do they change
over time? Is the public interest an outdated
concept? How can public interest be contained by
government policies? What may be reasonably
required of industry participants in protection and
promotion of public interest objectives such that
industry
competitiveness
is
not
unduly
compromised?
For netcasting and datacasting, public interest may
be defined initially in terms of the broad social
philosophies propounded in international treaties
operating to protect freedom of expression, personal
privacy, access and equity. Article 19 of the
Universal Declaration of Human Rights states
everyone has the right to freedom of opinion and
expression; this right includes freedom to hold
opinions without interference and to seek, receive
and impart information and ideas through any media
and regardless of frontiers.
The publishing mechanism of internet makes such a
civil right easier to achieve than has been
traditionally
possible
through
few-to-many
broadcast and print media. Virtual Communities

commentator, Howard Rheingold, has noted that this
theoretically means:
we now have an opportunity to revitalise the
public sphere instead of just sitting slackjawed in
front of the television passively receiving whats
broadcast to us. (Rheingold, 1999).
And now for datacasting, with the advent of back
channel oriented digital broadcast media, even this
limited interactivity can be seen as facilitating
realisation of free expression principles in the older
media of broadcasting. The bi-directional nature of
content exchange for both netcasting and datacasting
creates the potential for mobilisation of a formerly
passive mass audience and gives voice to the
voiceless (Dempsey et al, 1998). Further, the
increasing virtual space wherein information may
be posted for wide consumption is increasing with
digital technologies. As such, there is potential for
greater numbers of content providers to disseminate
news and political and social commentary, thus
increasing diversity of content and promoting
pluralism. While these aspects of new media do not
necessarily broaden access for a mass audience
(arguably, this is fragmented by the sheer quantity of
information sources available online, for instance),
the multiplicity of information providers means that
those with access to reception devices have greater
choice and control over content consumption.
But beside the publishing aspect of new
technologies, there are community concerns over
broad access to materials that would otherwise be
classed as restricted classification content. These
concerns have been manifested in attempts to restrict
both reception and publishing of ideas online
through the mechanisms of legislation such as the
US Communications Decency Act and our own
Online Services Amendment to the Broadcasting
Services Act (hereafter BSA1992), as well as
various examples of intellectual property and
defamation litigation. Thus a balance between
market and community interests and social
philosophy must be attempted in development of
policy for new media.
Democratic principles and the public

sphere
Given the technological diffusion scenario for
netcasting and datacasting, the scope of public
interest information provision must initially be
defined in terms of democratic principles. As
Hocking notes, a community can only be considered
to be operating democratically when citizenry are
active participants in democratic process and
governance. Access to information, both in terms of
technological presence and literacy in the use of the
interface, is one ingredient of that participation, but
there also must be access to a debate, to education
and to knowledge. The technology itself is not the
bestower of such participation; instead this is

achieved by the way in which people adopt new
media technologies and determine how they will use
those technologies in order to meet democratic ends
(Hocking, 1999). As instruments of reaching a mass
audience therefore, new media technologies must
promote and facilitate participation in practices of
democratic governance in order to be operating in
the public interest. This form of digital democracy
may indeed be seen as a means of returning to the
public discussion forum of communal societies.
In his examination of internet and the public sphere,
Poster observes that the older, Habermasian notion
of public sphere as
a homogeneous space of embodied subjects in
symmetrical relations, pursuing consensus
through critique of arguments and the
presentation of validity claims... is systematically
denied in the areas of electronic politics (Poster,
1995).
But while these mass spaces are no longer achieved
in the manner described by Habermas, they may be
adapted within the context of efficient, participatory
tools of communication. Internet and other bidirectional media technologies allow for a less
homogenous but perhaps more direct and dynamic
mechanism of democratic participation. Authority
as a political concept may be weakened or
fragmented by the power of individuals to construct
their own identities as participants in an electronic
community, and by the difficulty that immediate and
indiscriminate communications embodies in
sustaining any authoritative identity.
In
consequence, electronically-mediated consensus will
not have longevity in the manner that was formerly
attributed to democratic processes achieved within
the agora, polis or public meeting place of liberal
theory.
Instead, a constant and dynamic
accountability through the vehicle of new media
technologies allows for democratic participation in a
manner as yet not experienced.
Currency is
paramount, and consensus may only be temporary.
Nevertheless, an abundance of choices and voices
within new media give citizens greater power to
produce and influence consensus.
Further, for public interest to be achieved, civil
participation in democratic process must also be
accompanied by rights as defined in internationally
agreed treaties for democratic societies. For new
media, this means that access, literacy and use of
such technologies must not be restricted by either
direct or indirect governmental or private controls
over the technologies themselves (through interface
and content regulations), the means of distribution
(telecommunications
and
broadcasting
infrastructure) or any other essential components of
digitally mediated communication.
Governing policies and public interest

While connectivity and choice may be central to
public interest, Marsden has noted that a framework
of government policy for new media technologies is
crucial to ensuring democratic participation. In
democratic terms then, the public interest issue is
how government ensures some social market,
because ultimately, information and communication
technologies propagate a growing socially disparate
populace (Marsden, 1999).
Obvious conflict arises when freedom of expression
is set against more traditional concerns over
community standards and cultural integrity. Thus, in
realising freedom of expression considerations,
governments are faced with the challenge of
ensuring these concerns are not sacrificed. It is
essential to weigh the benefits of social philosophies
and civil rights against traditional cultural mores,
and deliver policies for development of new media
which best suit both empirical and conventional
ideals. In developing an appropriate regulatory
structure therefore, it is incumbent to observe public
interest treaties initially, as this permits a more open,
participatory approach to industry development.
Thereafter, localised community concerns may be
addressed in a manner which does not unduly
restrict either the wider public interest, or private
industry competitiveness.
Proposed regulatory controls

In order to ensure that channels of public interest
information services remain clear, regulatory
controls may be implemented in a manner which
does not threaten the development of commercial
content industries, but which recognises the value of
new technologies as vehicles of public interest
information dissemination.
In terms of datacasting and netcasting, there are
essentially three levels of regulatory control that can
be said to apply: cross media controls for owner
operator industry participants; content regulation in
the traditional sense of censorship or mediated
access to restricted-classification materials; and
quality-of-output regulation for convergent media
in the interests of protecting a competitive industry
structure.
As Barr notes,
(A) credible case for changing the rules on
cross-media ownership has not been made ...
(l)ong term, it is desirable that those responsible
for framing our new media policies attempt to try
to get not only more players into the marketplace but also greater ideological diversity into
the system (Barr, 2000).
Without these controls, corporate plans for growth
among dominant existing media players could result
in a media environment characterised by a
multiplicity of vehicles delivering very few voices
even in the lower quality medium of datacasting.

Difficulties arise when the same blanket ownership
controls are applied to the technology of netcasting.
In the case of netcasting, owner-operators are not
charged with the public trustee model based on
relative influence and spectrum scarcity that applies
to tenants of Broadcasting Service Bands (hereafter
BSB) spectrum. Further, the growth and reach of
the internet mean that dominance among content
providers is difficult to measure at any given time.
Instead, for netcasting, the issue of dominance is
therefore based on telecommunications bandwidth
occupation and on transient network maintenance
considerations and multicasting agreements.
Relative Influence
Regulation could acknowledge relative influence of
players across media forms in the manner employed
by existing cross-media ownership rules, but without
specific controls over content streams in the online
arena. Influence could be measured thus:
Figure 1 Degree of Influence

An owner-operator of multiple netcasting streams in
addition to print media products and/or broadcasting
licenses within any license area may be assessed as
an influential content provider, and thus included
among regulated datacasting players, denied or
limited in the capacity to provide broadcasting-style
programming streams. Alternatively, an owneroperator of multiple netcasting streams but without a
controlling interest in any traditional media products
may be treated as a noninfluential provider, and
permitted to offer broadcasting-style programming
as an experimental, or alternative participant in
information service provision. This hierarchical
model of influence would require significant public
input and may need to be subject to ongoing review.
As such, relative influence must not be explicit in
any enduring legislation, but set as an industry
standard by the broadcasting regulator.
Content controls
Content regulation in Australia relates only to
material which is classed as restricted, or banned as
inappropriate, and normally refers to sexually
explicit, or excessively violent material. In respect
of the broadcasting market, this is often

supplemented by an obligation to provide
programming that reflects national identity, and
includes some minimum levels of locally produced
content, as well as a responsibility for ethical and
accurate reporting. For netcasting, online content
controls include no minimum local content quotas,
nor any obligation for publication accuracy, nor it is
practical to consider implementing such policies.
Sites online which offer information and/or files of
content which either breach copyright or some other
content-related law, or which provide tools for, or
describe the method of, breaking local codes, are not
subject to content filtration mechanisms under the
terms of the Online Services Amendment of the
BSA1992.
Copyright violation online, or
instructions/files to facilitate such violation or some
other technologically-mediated offence are still
illegal, but like household videocassette recordings
of copyrighted materials from broadcasting, these
offences are considered to be relatively trifling, and
virtually impossible to control. As such it is perhaps
logical to develop a means of information
management for new media technologies that
acknowledges the characteristics of new media
technologies without compromising the importance
of public interest information services.
Katz
proposes a strategy for new media that provides
market-based observations and safety valves where
some sectors of service provision remain
unregulated. He argues that information can be
managed to produce a testing ground that equips
policy-makers with the grounds to alter regulation to
better meet the needs and wishes of consumers. If
the online arena were divided into regulated and
unregulated divisions, then the regulated sector
would apply to online content which would normally
be affected by regulatory controls. The unregulated
sector would apply to local content which may
potentially breach copyright or otherwise offends
but which does not fall under the auspices of the
BSA1992 Online Amendment. The only risk of
developing an unregulated sector of online service
provision and hosting is in the proliferation of
materials which may be classed as restricted. To
combat such an eventuality, it may be useful to offer
incentives for hosting of appropriate and publicly
beneficial materials by creating links between
providers from a designated regulated sector with
appropriate content sourced from the unregulated
sector, and by capping prices for service provider
interconnection with major telecommunications
carriers. Delineation between a regulated and
unregulated online sector may be determined either
on the basis of netcasting provision, or generically
across all hosted internet content. Ideally, the
division of regulation should occur broadly across
all internet content, because as technology evolves,
it may be difficult to determine the technical
parameters of netcasting as something distinctly
different from extensible transfer protocol, dynamic

internet content. However, the development of
regulated and unregulated sectors of internet content
offer policymakers a better chance of ensuring
efficiency of existing content controls through a
register of regulated content providers. Thus a
robust and competitive environment for service
provision and content development may emerge free
of the restrictions that may be deemed suitable for
dominant and traditional players in communications
and media industries. In a strictly general sense, the
development of an unregulated online sector
accommodates observation and assessment of user
desires rather than user needs. Such management of
information dissemination may be instructive in
future planning across new media services and
content hosting.
surrounding the streaming programming window is

dramatically different from traditional television
viewing. Finally, a maximum level of sound quality
in datacasting (based on 22MHZ output slightly
less that FM radio but greater than AM radio) would
mark broadcasting-style datacasting as marginally
different from both existing analog television sound
(transmitted at approximately 26MHz) and
substantially different from the 44MHz, CD-quality
sound of digital broadcasting. All these limitations
may be justified not only as a means of determining
difference between traditional broadcasting and
datacasting, but also because they reduce the
demand on bandwidth for transmission, in turn
allowing more spectrum space to be reserved for the
participation of additional aspirant players in the
sector.
Output controls
National provider filtration
Over and above content regulations, quality-ofoutput regulation may be instituted as an alternative
(secondary) public policy as a method of
emphasising difference between media forms.
Grades of viewing experience (for example, a
reduced screen area, or frame rate) may be specified
for an unregulated datacasting sector which would
not apply to subscription broadcasting markets.
Unregulated datacasters would be free to offer
broadcasting-style programming which abides by
content restrictions developed for the broader
broadcasting sector, subject to limitations on
transmission complexity of programming output.
Due to the changing nature of technology, it is not
feasible to state explicit technical details of file type
of compression ratio of signal transmission.
However, it may be viable to consider a frame rate,
maximum window size and/or sound quality for
broadcasting-style content made available by
unregulated datacasters. Television is transmitted in
Australia at 26 frames per second fast enough such
that the human eye perceives continuous movement.
It would be possible to set a maximum number of
frames per second that is substantially less than 26
frames per second, reducing the quality of viewing
experience and increasing the relative difference
between traditional broadcasting and broadcastingstyle datacasting. Further, it is feasible to set a
maximum window size for datacasting content,
again emphasising the difference between
broadcasting and datacasting programming. While
software in broadcasting reception devices may be
able to override maximum screen size set for
datacasting, such viewing area expansion will result
in further reduction of picture quality, and a less
sophisticated viewing experience. Thus setting a
maximum window size of 60% of the viewing area
for
broadcasting-style
datacasting
would
dramatically alter viewing experience of content, as
the look and feel of static or dynamic material
Australian Broadcasting legislation is clear on the

kinds of content and services that should be
available to Australian citizens, and on the necessity
for public sector institutions to carry impartial and
comprehensive
services.
Public
interest
considerations of national and cultural identity and
public participation in the control of influential
broadcasting services are set against the need for
morally and socially appropriate content provision in
these objectives.
Public information service
provision is encouraged, and more explicitly stated
in legislation pertaining to the national broadcaster
(see Australian Broadcasting Corporation Act 1983,
Part 2 Item 6: Charter of the ABC). Broadcasting
legislation in Australia then, is cognizant of the
necessity to provide informative and comprehensive
services in a competitive environment which is
responsive to the needs of audiences. It may
therefore be extrapolated that the provision of
netcasting and/or datacasting services should be
promoted in accordance with a competitive
environment for service provision.
Content
providers of netcasting and/or datacasting services
should be encouraged to deliver high quality
information services. For netcasting, considerations
of national identity and national interest may be
affected by the broader audience base that internet
technologies have the potential to reach.
Nevertheless, management of content delivery
provided by existing legislation for public sector
broadcasting is the best model upon which to build
controls for these new media technologies.
The national broadcaster could be identified as a
filter for new media content services and thus act as
a control mechanism that ensures wide access to
public interest information, and also controlled
access to materials that would otherwise be regarded
as inappropriate under the Online Services
Amendment. Technically speaking, the ABC could
be charged with development of an online services
proxy which would be monitored to ensure that

information available through the centralised proxy
met with broad community ideals for acceptable
content. For datacasting, the same centralised
control over content could be applied, and the
community could be informed that content accessed
through publicly-mediated services were subject to
relative influence, content and output controls as
previously recommended. Further, content accessed
through mechanisms other than the national
broadcaster could be promoted as unregulated means
of content consumption, thus retaining the rights of
citizens in making an informed choice over
regulated and unregulated content services.
No alternative existing media content provider can
easily be charged with such a responsibility.
Abandoning information management solely to
industry regulators is inefficient, as resultant
complex controls over content are likely to lead to
market confusion, reducing capital investment in
new media services and diminishing interest in
content development. The national broadcasters
status as a prominent content developer for both new
and older media also may be regarded as an
argument for its understanding of the technical and
social influence of new media content, further
strengthening its position as a natural filter for a
wide range of content services. Thus the ABC is in
a unique position in its preparedness to become a
service provider as well as a content provider for
these new media.
Implications of national
service management
information
This nationally mediated approach to information

management for the combined netcasting and
datacasting sector alleviates some of the problems of
outdated regulatory models, while incidentally
providing a testing base for new market competition.
The model of dual regulated and unregulated content
markets is destined to generate competition between
online netcasting and BSB datacasting sectors. Links
between the regulated and unregulated sectors of
netcasting and datacasting have the potential to
better realise public interest objectives in content
provision as netcasters and datacasters have the
opportunity to target markets otherwise overlooked
in traditional content provision. For datacasting, this
style of niche-market programming will need to be
developed in order to compete with the informationrich resource of the internet. It may be possible to
bridge the nebulous gap between the functions of
national broadcasters and subjective interpretations
of public interest if a multiplicity of datacasting
players (operating in accordance with quality-ofoutput regulations) are catering to minority interests.
Monitoring of services and content supplied by a
medium can be very difficult and the practice
ultimately involves a high level of community input
and substantial formal monitoring procedures.
Limited regulation of netcasting and datacasting

based on bandwidth tenancy and video quality may
alleviate this difficulty of policing content facilitated
by these technologies. As an added benefit, the
addition of new players in content provision could
result in increasing plurality and diversity of media
in accordance with a modern interpretation of the
public trustee model of communications.
In summary, nationally mediated controls across
new media industries provide a better regulatory
basis both for meeting public interest obligations in
service provision, and for building a commercial
market of data services. The immaturity of these
technologies provides an excellent opportunity to
explore public interest considerations and to
experiment with regulatory options to achieve these
ends. While some industry representatives are keen
to allow the market to evolve and to retrospectively
regulate where market failure occurs, this strategy is
inappropriate for emergent technologies that are
already being stifled by industry rules and
classifications for traditional media. If engagement
with new media technologies is regarded as a public
interest goal, then it is necessary to implement
equity of access regulations for both providers and
consumers of new media content before content
restrictions are set in place. The current practice of
sweeping categorization of content industries,
regardless of technical delivery mechanisms and
degree of influence among providers, is resulting in
reduced opportunity for citizens to interact in a
manner consistent with democratic principles.
Public interest information services will only
transpire if there is some recognition of the role of
national institutions as traditional and progressive
information providers.
References
Barr, T. (2000) newmedia.com.au: The changing
face of Australias media and communications,
Melbourne: Allen & Unwin, pp227-228
Cringely, R. (1999) Digital Democracy, ABC
Radio Australia series, In the Pipeline, Episode
11, http://abc.net.au/pipeline/
Dempsey, C. (1998) Regardless of Frontiers:
Protecting the human right to freedom of
expression on the global internet, Global
Internet Liberty Campaign: Center for
Democracy & Technology, http://www.cdt.org/
Flew, T (1998) From Censorship to Policy:
Rethinking media content regulation and
classification, Media International Australia
incorporating Culture and Policy, No. 88
August
Given, J (1998) The Death of Broadcasting: Medias
Digital Future, Sydney: UNSW Press
Hocking, J. (1999) Digital Democracy, ABC Radio
Australia series, In the Pipeline, Episode 11,
http://abc.net.au/pipeline/
Katz, M. (1997) Regulation: The next 1000 years,

University of California at Berkeley: Walter A
Haas School of Business, pp5-7
Marsden, C. (1999) Convergence and European
Digital Television Policy, London: Cambridge
Poster, M. (1995) Cyberdemocracy: Internet and the
Public Sphere, University of California,
http://www.hnet.uci.edu/mposter/writings/dem
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Radio Australia series, In the Pipeline, Episode
4, http://abc.net.au/pipeline/
Joanne Jacobs
National Centre for Australian Studies
Monash University
VIC 3800
Ph: (+61 3) 9905 9091
Fax: (+61 3) 9905 5238
Email: joanne@andygrace.com
Bullying at work: The role of work environment quality

Dawn Jennifer
School of Psychology and Counselling, University of Surrey Roehampton
Abstract
Scandinavian research suggests that perceptions of
social and organisational work conditions are an
important factor in an individuals perceptions of
bullying in the workplace. The aim of this paper is
to examine whether the same is true in an UK
context. Ninety undergraduate students completed a
53-item questionnaire developed from the study of
Einarsen, Raknes and Matthieson (1994). Results
support previous research and suggest that social
and organisational work conditions make a major
contribution to the perception of bullying in the
workplace, particularly leadership and management
style and quality of interpersonal relationships. In
addition, the results suggest that both victims and
observers of bullying in the workplace experience a
low quality work environment. The suitability of a
self-report questionnaire as an appropriate research
tool for the exploration of perceptions of bullying in
the workplace is examined, implications for
employers and organisations discussed, and areas
for future research proposed.
Keywords
bullying, perception; work environment
Introduction
Bullying in the workplace in the UK is a reality for
many employees in both public and private
organisations (Adams, 1992). For example, in a
recent UK trade union (UNISON) study, 60% of
participants reported experience of bullying either
directly, or indirectly as an observer (Rayner, 1999).
The cost of bullying in the workplace is high; both
in terms of psychological and physical consequences
to the individual and in terms of financial and legal
costs to the organisation (Adams, 1992; Rayner,
Sheehan and Barker, 1999; Crawford, 1997). For
example, in her paper Bullying at Work in Ireland,
Seignes (1998) interview results suggest that many
victims suffered from psychosomatic symptoms and
symptoms associated with depression. Furthermore,
nearly half of the sample of victims left their jobs as
a result of the bullying behaviour, and a third of
victims took legal action.
Despite the enormity of the problem, with the

exception of a few incidence studies (for example,
Rayner, 1999; Seigne, 1998), little empirical
research in the UK has investigated the causes of
bullying in the workplace (Bjorkqvist, Osterman and
Hjelt-Back, 1994). What literature currently exists
is anecdotal or theoretical in nature (for example,
Adams, 1992; Field, 1996; Rayner and Hoel, 1997;
Hoel, Rayner and Cooper, 1999). In Scandinavia
and Europe, however, the phenomenon has received
considerably more attention (eg, Bjorkqvist et al,
1994; Einarsen, Raknes and Matthiesen, 1994;
Einarsen and Skogstad, 1996; Leymann, 1996;
Niedl, 1996; Vartia, 1996; Zapf, 1999; Zapf, Knorz
and Kulla, 1996).
Given that little empirical research has been
conducted in the UK, caution needs to be taken with
regard to extrapolating information on bullying in
the workplace based on data collected from other
cultures for several reasons. For example, it has
been suggested that cross-cultural differences in
labelling and definition make it difficult to draw
comparisons (Einarsen, in press; Spurgeon, 1997;
Hoel et al, 1999). Terminology for the phenomenon
is varied with different countries and different
studies attributing different labels to the
phenomenon (Hoel et al, 1999). For example,
mobbing
in
Sweden
(Leymann,
1996),
harassment in Finland (Bjorkqvist et al, 1994),
petty tyranny in Canada (Ashforth, 1994) and
victimization (Olweus, 1994).
Furthermore,
analysis of the existing literature reveals a large
quantity of differing definitions, confirming the
difficulties of defining bullying. Moreover, crosscultural comparisons are also problematic once
cross-cultural differences, such as work ethic and
attitudes, work conditions and power balance
between employees, are acknowledged (Einarsen, in
press; Spurgeon, 1997; Hoel et al, 1999).
For the purposes of this study, bullying refers to
negative behaviour directed towards an individual
by one or more others (Leymann, 1996). While
some degree of repetition is usually thought to
characterise bullying, there is no agreement
regarding the frequency or duration (Bjorkvist et al,
1994; Einarsen and Skogstad, 1996; Leymann,
1996). However, in line with Einarsen and his
colleagues, this study looks at bullying behaviours
experienced or witnessed within the last six months

that occurs now and then or more frequently.
Causes of bullying in the workplace

Zapf (1999) proposes four possible causes of
bullying in the workplace: the perpetrator, the
victim, the social system of the work group and the
organisation. In the UK, the popular view represents
bullying in the workplace occurring due to the
personality characteristics of the bully and the victim
(Adams, 1992; Field, 1996; Randall, 1997). This
view assigns a central role to the individual, either of
vulnerability to bullying or a propensity to bully
(Spurgeon, 1997). The case for a victim personality
is supported by empirical evidence; for example, in a
study of 949 municipal employees, Vartia (1996)
found significant correlations between bullying and
neuroticism and self-esteem: the victims of bullying
had lower self-esteem and higher anxiety levels than
bullies. On the other hand, some researchers argue
that the observed personality traits of the victims
may be due to the bullying process itself (Einarsen,
1998; Leymann, 1996; Rayner, 1999). With regard
to bully personalities, bullies have been identified
with aggression and poor parenting style (Randall,
1997). However, Hoel et al (1999) argue that the
evidence with regard to a bullying personality is
inconclusive: no substantial empirical evidence has
been provided to support the idea.
Conversely, Zapf (1999) suggests that the social
system and processes of social exclusion are
potential causes of bullying. Early researchers claim
that there are organisational and social reasons why
bullying is necessary (Brodsky, 1976; Thylefors,
1987, cited in Hoel et al, 1999). For example,
Thylefors (1987, cited in Hoel et al, 1999) suggests
that bullying is a scapegoating process found in most
organisations which fulfils a social role by way of
displacing aggression and relieving tension.
However, Einarsen (in press) and Leymann (1996)
argue that long-term unresolved conflicts may
escalate into bullying if proper interventions and
conflict management strategies are not in place.
Thus, whilst interpersonal conflict may be viewed
by some as a normal process of organisational life,
Einarsen (in press) suggests that bullying is possibly
due to the outcome of unresolved conflicts that exist
in organisations and work groups.
Most of the existing literature has focused on the
contribution of organisational factors to bullying in
the workplace. For example, work environment and
organisational climate (Einarsen et al 1994; Vartia,
1996); job content and social work environment
(Zapf et al, 1996); work organisation and poor
conflict management (Einarsen and Skogstad, 1996;
Leymann,
1996);
inappropriate
managerial
behaviour (Crawford, 1997; Sheehan, 1998); and,
tyrannical management (Ashforth, 1994).

In
particular, Einarsen et al (1994) found that
leadership, role conflict and work control are the
most important factors to predict bullying in the
workplace; social climate was also identified to be
of importance in some organisational settings.
Einarsen et al (1994) also found that observers of
bullying in the workplace reported a low quality
work environment; they reported a higher level of
role conflict and, dissatisfaction with the social
climate, the leaders of the organisation and
autonomy in their work. However, it has been
suggested that negative working conditions may be
the result of bullying, for example, from a lack of
communication or unconstructive leadership
(Rayner, 1999; Zapf, 1999). Furthermore, the
trauma of being bullied may initiate changes in
individuals and in their perception of their
environment (Rayner, 1999).
Theoretical Framework
Einarsen et al (1994) argue that bullying in the
workplace may be a behavioural strategy used in the
interpersonal conflicts arising from conflicting
demands around tasks, obligations, privileges, and
priorities, as measured by role conflict. They
suggest two theoretical frameworks which can
account for the relationships found between work
environment and bullying in the workplace: the
revised frustration-aggression hypothesis and the
social interactionist approach to aggression
(Einarsen et al, 1994). According to the revised
frustration-aggression
hypothesis,
aggressive
behaviour may occur in high-stress work situations,
through the production of negative affect
(Berkowitz, 1989, cited in Einarsen et al, 1994).
Thus, bullying behaviour may flourish in a poor
work environment through environmental effects on
aggression.
Alternatively, from the social
interactionist perspective, stressful events may affect
aggression indirectly through their effect on the
victims behaviour. In the case of bullying in the
workplace, poor work environment and poor
organisational work conditions may cause distressed
individuals to exhibit norm-violating behaviour
which is perceived as annoying, thus provoking
bullying behaviours in others (Felson and Tedeschi,
1993, cited in Einarsen et al, 1994).
Research Objectives
Given that the literature that currently exists on
bullying in the workplace in the UK is mainly
anecdotal, the broad objective of the present
research is to contribute to the growing body of
empirical Scandinavian work that examines the role
of work environment quality in relation to the
perception of bullying in the workplace, using an
UK sample.
More specifically, the research has two further

research objectives. The first is to investigate what
relationships exist between perceptions of social and
organisational work environment and perceptions of
bullying in the workplace.
Aspects of work
environment cited as sources of stress and job
dissatisfaction such as, role conflict and role
ambiguity, under-utilization of skills, workoverload, resource inadequacy, lack of participation
and co-worker interaction will be evaluated
(Einarsen et al, 1994).
Substantial discrepancies between the subjective
perceptions and interpretations of the bullying event
often exist between bullies, victims and co-workers
(Baumeister, Stillwell and Wotman, 1990). Einarsen
et al (1994), for example, found that non-observers
of bullying evaluated their work environment
consistently more positively than victims and
observers of bullying.
Therefore, the second
objective of this study is to explore the differences in
the perceptions and evaluations of work
environment quality between victims of bullying,
observers of bullying and individuals without
knowledge of bullying in their workplace.
Methodology
This study employed a 53-item self-completion
questionnaire design for use with a preliminary
factor analysis followed by Pearsons correlations,
stepwise multiple regression and one-way ANOVA
to explore the relationship between perceptions of
work environment quality and perceptions of
Ninety students (72 female, 17 male and 1 missing)
from the University of Surrey Roehampton (USR)
provided an opportunity or convenience sample.
Ages ranged from 18 to 59 years. Length of current
(or most recent) employment ranged from less than
one year to more than five years.
The questionnaire consisted of the following scales
and measurements:
Work environment scale. Participants were asked to
rate 27 different aspects of their work environment,
including, challenge, social climate, leadership,
work control and work-load, by indicating the extent
to which they agreed or disagreed with each
statement. This was measured using a scale adapted
from the work of Einarsen et al (1994). A factor
analysis with principal components extraction and
direct oblimin rotations revealed a three factor
solution, accounting for 50.0% of the variance. The
three factors were labelled Job Satisfaction (32.1%
of the variance, Eigenvalue 8.67), Relationship
Conflict (11.0% of the variance, Eigenvalue 2.98)
and Resource Inadequacy (6.8% of the variance,
Eigenvalue 1.83).
Role conflict and role ambiguity scale. Participants

were asked to rate 14 statements regarding the
degree to which they perceive contradictory
expectations, demands and values in their job, and
the degree to which they perceive their job situation
as predictable and clarified. This was measured
using a scale developed by Rizzo, House and
Lirtzman (1970, cited in King and King, 1990). A
few minor word changes were implemented.
Bullying measures. Before answering questions on
bullying in the workplace participants were
introduced to the following definition of bullying:
Bullying is negative behaviour that occurs
repeatedly over time and causes physical and/or
psychological distress.
It includes threat to
professional status (for example, public humiliation,
belittling opinion, accusations about lack of effort);
threat to personal status (for example, offensive
remarks, name-calling, insults, intimidation,
devaluing); isolation (for example, physical/social
exclusion, preventing access to opportunities,
withholding information); unrealistic workload (for
example, impossible tasks and deadlines,
unnecessary interruptions); and destabilisation (for
example, removal of responsibilities, failure to give
credit when due, meaningless tasks, setting up to
fail). To call something bullying the person (or
persons) confronted has to experience a feeling of
inferiority in defending himself or herself in the
situation (based on Einarsen et al, 1994; Einarsen
and Skogstad, 1996; Hoel and Rayner, 1997; Smith,
1997).
Three measures of bullying were used: two single
questions and the Bergen Bullying Index. The
single questions addressed whether the participant
had been subjected to bullying in the last six months,
and whether the participant had seen others being
subjected to bullying during the last six months.
The response options were no, seldom, now
and then, about once a week and many times a
week. The Bergen Bullying Index, consisting of
five items, measured the degree to which bullying is
perceived to be a problem at the participants
workplace and for the participant personally. Using
the data from the present study the Bergen Bullying
Index had high internal reliability (Cronbachs
Alpha = 0.90) with all item-total correlations above
0.63.
Each of the scales was rated by use of a five-point
Likert scale ranging from agree strongly to
disagree strongly.
Statistical analysis was undertaken in SPSS 9.0 and
following a preliminary factor analysis of both the
work environment scale and the role conflict and
role ambiguity scale took the form of an analysis of

the relationships between the various sections of the
questionnaire.
With regard to the choice of
statistical analysis the author acknowledges that the
reliability of the work environment factors which
emerged from the factor analysis is questionable due
to the number of variables and the sample size.
However, the generally agreed basic requirement,
that there should be more participants than variables,
was met in the present study, thus minimising
sampling error.
Results
What relationships exist between perceptions of
social and organisational work environment and
perceptions of bullying in the workplace?
Pearsons correlations were computed between the
Bergen Bullying Index, the five work environment
factors, and the demographic characteristics, using
the total scores of each subscale to investigate which
of the factors was most strongly related with
perceptions of bullying. The degree of bullying
perceived by the participants correlates significantly
with all five work environment factors.
The
directions of the correlations show that a high degree
of perceived bullying is associated with high
relationship conflict (r = -.47, p = .000), high role
conflict (r = -.36, p = .001), high resource
inadequacy (r = -.35, p = .001), high role ambiguity
(r = -.34, p = .001) and low job satisfaction (r = -.27,
p = 0.12). The factors relationship conflict, role
conflict, resource inadequacy and role ambiguity
correlated most strongly with the perception of
bulling in the workplace. The degree of bullying
perceived by participants correlates significantly
with age and length of employment. The directions
of the correlations suggest that a high degree of
perceived bullying is associated with lower age
range (r = -.24, p = .028) and shorter length of
employment (r = -.27, p = .011). A stepwise
multiple regression analysis was computed between
the Bergen Bullying Index and each of the five work
environment factors to investigate which of the
factors were the strongest predictors of the
perceptions of bullying. The first step of the
regression analysis identified relationship conflict as
the variable which accounted for the maximum
amount of variance (R = .45, R = .20, p = .000) and
was significantly related to perception of bullying in
the workplace (Beta = -.447).
What are the differences in the perceptions and
evaluations of work environment quality between
victims of bullying, observers of bullying and
individuals without knowledge of bullying in their
workplace?
The Bergen Bullying Index measures the degree to

which bullying is perceived to be a problem at the
participants workplace and for the participant
personally. It does not differentiate between victims
of bullying or observers of bullying. By crosstabulating the responses given to the questions
Have you been subjected to bullying at the
workplace during the last six months? and Have
you seen others being subjected to bullying at your
workplace during the last six months? it was
possible to make a distinction between victims (n =
6, 6.8%), observers (n = 18, 20.5%),
victim/observers (n = 34, 38.6%) and non-observers
(n = 30, 34.1%).
For the purposes of this study, victims are
participants subjected to bullying within the last six
months but who have no knowledge of other victims
in their workplace. Victims who had been bullied
by individuals other than their co-workers (for
example, clients, patients) were excluded from this
part of the analysis. These victims accounted for
25% of the victim group. Observers refers to
participants who are not bullied themselves, but who
report knowledge of others being bullied at their
workplace. Victim/observers are participants who
are victims of bullying in the last six months and
who also report knowledge of other victims in their
present workplace. Non-observers are participants
who have no knowledge or experience of bullying at
their place of work.
A one-way ANOVA was computed for the four
groups on each of the five work environment factors.
The analysis showed significant and similar results
in four out of the five dimensions, that is,
relationship conflict, role conflict, resource
inadequacy and job satisfaction. The non-observers
evaluated their work environment consistently more
positively than observers and victims.
On
relationship conflict (overall statistics: F = (3,77) =
5.46, p = .002) the non-observer group rated their
work environment significantly more positively than
the victim/observer group (p = .007), as did the
observer group (p = .039). On role conflict (overall
statistics: F(3,82) = 4.38, p = .007) the non-observer
group rated their work environment significantly
more positively than the victim/observer group (p =
.008). The results were identical on the resource
inadequacy dimension (p = .036) and the job
satisfaction dimension (p = .002) (overall statistics:
F(3,83) = 3.10, p = .031 and F(3,82) = 5.65, p = .001
respectively). On the role ambiguity dimension
there were no significant differences between the
four groups.
Discussion
Conclusions can be drawn from this study that will
be of interest to psychologists, employers and
organisations. In addition, these conclusions have

considerable practical implications for HR,
personnel and training managers, management
consultants and team leaders.
The examination of the relationships between
quality of work environment and perception of
bullying in the workplace has been worthwhile.
Whilst small scale in nature, the results from this
study, nevertheless, provide the first empirical
support for the role of work environment factors in
perceptions of bullying in the workplace in the UK.
More specifically, the regression analysis lends
support to the argument that leadership and
management style, and quality of interpersonal
relationships are important factors in the prediction
of the perception of bullying in the workplace.
Furthermore, the results suggest that non-observers
evaluate their work environment consistently and
significantly more positively than victims and
observers of bullying. Thus, not only victims report
a low-quality work environment, observers of
bullying also report higher levels of role conflict,
dissatisfaction with interpersonal relationships and
the managers of the organisation, and less autonomy
in their work. These results further support the
argument that social and organisational work
environment factors are important precursors of the
perception of bullying in the workplace, raising
doubts about explanations of the causes of bullying
solely in terms of a victim or bullying personality.
Overall, in terms of the revised frustrationaggression hypothesis it could be argued that
bullying behaviour flourishes in a poor work
environment through environmental effects on
aggression (Berkowitz, 1989, cited in Einarsen et al,
1994).
Alternatively, according to a social
interactionist perspective, it may be that poor work
environment and poor social and organisational
working conditions cause distressed individuals to
behave in rule- and norm-violating ways which are
perceived as annoying and provoke bullying
behaviour in others (Felson and Tedeschi, 1993,
cited in Einarsen et al, 1994).
However, most theories of aggression have been
developed from experimental research, primarily
from contrived situations between strangers, and are,
therefore, not directly applicable to studies of
bullying in the workplace where the individuals
know each other (Hoel et al, 1999). Furthermore,
Geen (1990) suggests that aggression is the result of
the dynamic between the state of the individual and
the situation that elicits the aggressive behaviour.
Thus, in terms of explaining bullying in the
workplace, the role of environmental factors brings
out bullying behaviour in the individual who is in a
state of readiness for such behaviour. Indeed,
Brodsky (1976), for example, suggests that for

bullying to occur, the bullying behaviours must exist
within a culture that permits or even rewards such
kinds of behaviour. Similarly, in some organisations
bullying may even be institutionalised as part of the
leadership and management practice (Ashforth,
1994; Einarsen, 1998). Thus, Einarsen (1999)
suggests that bullying is caused by the combination
of a social climate where hostility and
aggressiveness prevail and an organisational culture
tolerant to bullying.
Methodological Considerations
There are methodological considerations that need to
be taken into account when interpreting these
results. For example, how far subjective experience
should be taken into account when evaluating
perceptions of bullying in the workplace is a
difficult issue; different individuals have different
thresholds for, and attitudes towards, psychological
distress, which will affect the perception of bullying
behaviour on an individual basis (Einarsen et al,
1994). Thus, the key issue is not whether the victim
was actually bullied or not, but whether the victim
felt bullied (Einarsen, in press).
A helpful
distinction has been drawn by Brodsky (1976)
between subjective bullying, that is an awareness
of bullying by the victim, and objective bullying,
when external evidence of bullying is found.
However, whether this distinction is helpful or not
when considering the victim/observer group is an
issue worthy of further research. For example,
consideration needs to be given to how much the
experience of being bullied affects the perception of
observing others being subjected to bullying.
Similarly, data generated from self-report
questionnaires may be influenced by factors other
than those being measured. For example, Barons
(1990, cited in Rayner, 1999) attribution theory
suggests that individuals consistently attribute the
reasons for negative events externally towards others
and attribute the reasons for positive events
internally towards themselves. Thus, Hoel et al
(1999) suggest that as bullying at work is probably
considered a negative event, it is likely that the
reasons for bullying will be attributed externally,
towards the work environment. On the other hand, it
has been suggested that negative work conditions
may be the result of bullying in the workplace (Zapf,
1999). For example, Einarsen et al (1994) suggest
that bullying may cause a deterioration of the
employees trust in their manager and a high degree
of tension and conflict in the work group, which
could account for perceptions of poor work
environment as found in the present study.
Given these methodological considerations it could
be argued that the choice of a self-report
questionnaire for this study was not the most
appropriate research method to adopt. The use of a

quantitative research tool was adopted as almost all
of the empirical research to date in this area has
followed this approach. The obvious advantages of
this methodology include its simplicity, versatility,
low cost and easy analysis. However, whilst the use
of a self-report questionnaire design is capable of
capturing large scale trends and can lay greater
claim to being representative of a general
phenomenon, it cannot hope to capture the
complexity of an individuals perception and
experience (Burchell, 1998).
Alternatively, qualitative research methods produce
data that is in-depth, rich and illuminating.
Respondents are able to fully elaborate on their
perceptions, attitudes and experiences, rather than
relying on the researchers preconceived ideas about
what these might be. Such an approach would be
particularly useful for investigating what constitutes
a dynamic phenomenon with both individual and
environmental factors influencing it.
Thus, future research designs need to be capable of
incorporating an individual, a social and an
organisational level of analysis that will capture the
multiple causes of bullying in the workplace (Hoel
et al, 1999; Zapf, 1999). This can only be achieved
with the co-operation and collaboration of
employers and organisations. Such a study could
include self-report questionnaires, interviews, focus
groups, diary keeping, observational methods and
collaboration with managers and HR personnel that
would access a complex mix of data on the multiple
causes of bullying in the workplace (Cowie, Naylor,
Rivers, Smith and Pereira, in press).
Implications for employers and

organisations
In order to reduce the perception and incidence of
bullying in the workplace, the implication of these
results is that change needs to be implemented to the
work environment, with particular attention paid to
leadership and management style and the quality of
interpersonal working relationships.
Possible
approaches to achieving this include management
training in people skills such as, communication,
teambuilding, conflict resolution and dealing with
change.
Alternatively, change could be extended beyond the
individual towards broader aspects of the
organisation, or a specific group or department
within it. For example, organisations could instigate
a culture change by moving from a closed system of
communication, where the rules, roles, structures
and relationships are rigid and unchanging, to an
open
system
of
communication
where
communication and management style is flexible,
fluid and changing, thus enabling supportive and

effective relationships and management style.
Another possibility would be for companies to
provide employees with the opportunity for training
and personal development, for example, through
counselling, skills training, effective communication
and stress management programmes, with the aim of
building confidence and self-esteem in employees,
without the need to directly modify their work
environment.
What intervention would be most effective for which
individual, in which job and in which organisation
could be determined by further research. Further
questions regarding the perception of bullying and
the relationship with work environment quality,
however, need to be addressed.
Future Research
The above discussion suggests several research
questions for further work. For example, in line
with social interaction theory, does a poor working
environment cause individuals to behave in normviolating ways that provoke bullying behaviours?
Or, does bullying behaviour flourish in a poor
working environment through environmental effects
on aggression as the revised frustration-aggression
hypothesis suggests? Alternatively, is the perception
and incidence of bullying in the workplace the result
of a dynamic process between the state of the
individual, the situation and work environment
quality? Furthermore, is the working environment
perceived as negative as a result of bullying in the
workplace or does the trauma of being bullied
initiate changes in the perception of the work
environment? And, finally, why do observers of
bullying in the workplace also perceive a lowquality work environment?
Acknowledgements
I would like to thank the following people. Dr
Frances Michie, my supervisor, and Professor Helen
Cowie at the University of Surrey Roehampton.
Charlotte Rayner at Staffordshire University
Business School.
Dr Stale Einarsen at the
University of Bergen, Norway. And, at home, my
partner Kevin Burchell. I would also like to thank
the two anonymous referees for their helpful
comments and suggestions.
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Telelephone: 020 8488 6521
Email:d.jennifer@roehampton.ac.uk
Stress and managerial bullying:

Affective antecedents and
consequences
Peter J. Jordan and Michael Sheehan
School of Management, Griffith University,
Australia
Abstract
Change has become endemic in organisations.
While the rhetoric of change includes the need to be
more globally competitive and to meet changing
market requirements, the reality for many people is
often increasing levels of stress. In this paper, we
argue that one of the by-products of stress is the
propensity for some managers to use bullying tactics
to achieve their goals. Such a process results in
costs not only to the manager and his or her
employees, but also to the organisation.
Studies on workplace bullying suggest that it is
managers in organisations who are the main
perpetrators of workplace bullying. This article
argues that one of the reasons for managers acting
in this way is that they do not have the appropriate
emotional skills or abilities to deal with the demands
of an ever-changing workplace.
Viewing the
problem of workplace bullying from a bounded
emotionality perspective, we provide a new insight
to the antecedents of workplace bullying.
Keywords
Organisational change; Workplace
Bounded emotionality; Emotions.
bullying;
Introduction
Organisations within developed countries are facing
increasingly frequent organisational change as a
result of pressures produced by global competition,
consumer demand, technological change, changing
labour expectations, environmental awareness, and
economic recession (French & Bell, 1995).
Accompanying this change is an increase in
uncertainty at all levels of organisations (Argyris &
Schon, 1996). Within this reality, the phenomenon
of bullying becomes common.
Two of the main corporate tactics that have been
adopted in restructuring have been downsizing and
delayering, each of which has produced increasing
levels of stress in the workplace (Hartley, Jacobson,
Klandermans & Van Vuuren, 1991). Whereas
researchers have focused on the cognitive aspects of
downsizing, we argue that the emotional effects may
be just as important or more important in

determining a managers or a workers response to
downsizing. In this paper, we argue that managerial
workplace bullying emerges from an emotional
reaction to constantly dealing with change in
organisations. This approach is consistent with
Ashforth and Humphreys (1995) call for the
incorporation
of
emotional
variables
in
organisational research at both the organisational
and the individual level.
In response to the pressures placed on organisations
to respond to constant change, some organisations
appear to have developed a culture whereby the
achievement of organisational goals justifies the
means. This focus on ends at the expense of means
is seen in the increasing research done on ethics in
organisations (Cludts, 1999). Moreover, downsizing
and delayering have become an accepted method of
enhancing corporate earnings which is reflected in
share market responses to corporate decisions
regarding restructuring with research findings
indicating that stock markets favour companies that
downsize (Di Maggio & Powell 1983).
At an individual level, DAveni (1995) notes that the
emphasis on performance and return on investment
in organisations has produced a cohort of managers
who are only focussed on short term gain without
any concern for the implications of their actions. In
this culture, some managers perceive that they have
a mandate to use whatever technique or behavior is
deemed necessary in achieving those goals,
including bullying. Indeed, recent research on
bullying in the workplace has found that up to 70
percent of bullying emanates from managers
(Rayner, 1997).
In this paper, we outline a model of the antecedents
and consequences of workplace bullying viewed
from a managerial perspective. We argue that in a
corporate environment of change, managers are
under increasing pressure to perform and get quick
results. The emotional reactions that emerge from
this pressure contribute to workplace bullying. The
reality of restructuring includes declining
commitment, work satisfaction, morale and
motivation (McCarthy, Sheehan & Kearns, 1995).
Each of these factors contributes to an environment

of low contextual performance (Borman &
Motowidlo, 1993) where the consideration of others
in the organisation will be minimized. In this
environment, bullying may become an accepted
practice within some organisations.
This paper uses a bounded emotionality perspective
to explore the bullying effect and offers some
thoughts on ways of addressing managerial bullying.
The use of a bounded emotionality perspective
allows us to explore the antecedents of bullying and
provides a firmer foundation for examining
organisational interventions that can address
The paper is exploratory in nature and is, therefore,
largely theoretical. Our intention is to engage in the
debate about workplace bullying in a way that will
help promote a multi-disciplinary analysis that we
consider is needed in order to develop a sound
theoretical base for workplace bullying.
Bullying in the workplace

Einarsen, Matthiesen and Skogstad (1998) define
bullying as, all those aggressive actions and
practices directed at one or more worker(s) which:
are unwanted by the victim; may be done
deliberately or unconsciously but do cause
humiliation, offence and distress; and may interfere
with job performance and/or cause an unpleasant
working environment(p. 564).
Behaviour
associated with bullying includes sarcasm, threats,
verbal
abuse,
intimidation,
bad-mouthing,
manipulation, duplicity, exclusion, isolation and the
assignment of staff to unpleasant jobs (McCarthy et.
al., 1995).
Recent surveys have found that up to 50% of the
working population had experienced bullying
(Rayner, 1997). Bullying may also be a hidden
phenomenon in organisations with 95% of
respondents indicating that they were too scared to
report incidences of bullying (Rayner, 1997). Lewis
(1999) found that workplace bullying was more
prevalent than sex discrimination, sexual harassment
and racial harassment in some workplaces. The
perceived reasons for the bullying were linked to
poor managerial training (Lewis, 1999).
Rayners (1997) study found that managers carried
out over 70 percent of bullying incidents. In
contrast, Scandinavian research that found the
incidence of bullying by one or more superiors is
about 54 per cent (Einarsen & Skogstad, 1996).
Both studies indicate that a significant amount of
bullying emerges from managerial ranks.
Existing research into workplace bullying has dealt
with the legal implications of bullying (Bray, 1992);
characteristics exhibited by bullies, and the

psychological,
physical
and
work-related
consequences of bullying (Leymann, 1996;
McCarthy et. al., 1995); and, the characteristics of
victims, typical actions of bullying, and initial and
long-term effects of being bullied (OMoore, Seigne,
McGuire & Smith, 1998). The majority of this
research, however, pays little attention to the
organisational context that supports bullying or the
organisational antecedents of a bullying episode.
Managers and Bullying

Although there is substantial anecdotal evidence of
bullying, empirical studies of bullying in the
workplace are relatively limited (Keashly, 1998).
Rather, the majority of research in the area tends to
focus on antisocial behavior (Giacalone &
Greenberg, 1997), violence in the workplace (Baron
& Neuman, 1996), workplace abuse and/or
harassment (Crabb, 1995), or the costs of
managerialism (Rees & Rodley, 1995).
In
particular, little research has been conducted into
workplace bullying by managers (Marano, 1995).
There is some research however that points to the
need for more focus on this issue.
Kets de Vries and Balazs (1997) focused on the
coping strategies of the bully and theorized that
perhaps managerial coercive, disassociative, or
abrasive behavior was a coping strategy of managers
during organisational restructuring.
Empirical
research, however, suggests mixed findings in this
regard. Cartwright and Cooper (1993) found a
significant negative effect on middle managers wellbeing resulting from mergers, while Crouch and
Worth (1991) could not correlate organisational
change with any adverse effect on the managers
psychological well-being.
In an international context of organisational
restructuring, downsizing and layoffs, companies
have reported high turnover and general mistrust
between managers and staff (Rousseau & Parkes,
1993). The psychological contract that once ensured
managers loyalty to organisations and their
employees (Rousseau & Parkes, 1993) has now been
replaced by a more utilitarian focus on personal
advancement across organisations (Kanter, 1989). A
consequence of this utilitarian focus by some
managers contributes to them utilizing bullying
tactics to gain compliance and to achieve their
objectives. This type of control action in turn
produces a stress reaction in the employees who are
the subject of this behavior. As noted earlier,
bullying has been seen as an extreme form of social
stressor (Einarsen & Skogstad, 1996). In this article,
we will explicate the antecedents of bullying with a
framework of bounded emotionality (Putnam &
Mumby, 1993).
Responses to Bullying
A number of strategies and remedies for dealing
with the problem of workplace bullying and
victimization are also identified in the literature.
Strategies range from legislative change (Overall,
1995) to job redesign (AFS, 1993). Other strategies
include confronting the perpetrator (Adams, 1992);
taking a community approach to the problem
(Byrne, 1994); and training and accrediting staff to
deal with the problem (Crabb, 1995). Rayner and
Hoel (1997) suggest that those identified as bullies
also need to be heard. Significantly, all of these
responses are reactive, rather than proactive. That
is, they seek to address the bullying following a
critical incident. We argue instead, that a proactive
response that identifies and addresses the
antecedents of bullying would be more productive.
To date, the major response to bullying has been to
legislate against the practice (Overall, 1995). If, as
the research suggests, bullying is a hidden
phenomenon in organisations then this response is
inappropriate. Although current legislation in
relation to health and safety in the workplace ought
to be sufficient to ensure bullying behaviours do not
occur, the evidence shows that it is still evident in
organisations. Clearly, both the anecdotal and
empirical evidence of a growing and persistent
problem suggests that legislative responses have
little effect.
Recognizing the shortcomings of legislative
solutions, Gorman (1998) argues that a change of
attitude is required from confrontational workplaces
to co-operative workplaces. While these are
worthwhile principles to adopt in any organisation,
they will not address the issue of bullying if the
antecedents of bullying are not confronted. We
argue in this paper that this change should include
recognition of negative emotions as well as the
encouragement of positive emotions. While creating
co-operative workplaces may work in an
organisation that does not experience bullying, there
is the likelihood that in organisations where bullying
exists, co-operation may be used as the clarion call
of the bully. In other words, do as the bully insists
or risk the stigma of being seen as uncooperative.
Similarly, coping strategies are promoted as
assisting in dealing with workplace stress (Lazarus
& Folkman, 1984), such as that produced by
bullying. Coping strategies, however, assume that
there is equal power between the protagonists and
rely on the stressed individual to respond. Such
approaches suggest an inability or unwillingness to
deal with the extent of the problem posed by
bullying where there may be little recourse by the
victim other than avoidance or withdrawal. We do
not imply that it is the victims lack of response that
is the cause of the bullying. Rather, that all humans

have a fight or flight response when confronted. For
some the natural reaction will be to confront the
bully, while for others the appropriate response will
be withdrawal or avoidance. We contend that both
responses are reasonable and that the actions of the
bully and not the victim need to be addressed.
We contend that in researching the phenomenon of
bullying, it is essential to account for affective
variables as well as the behavioural outcomes in
making sense of bullying. Additionally, we argue
that the current prime focus on the victims of
bullying and the consequences of bullying will not
contribute to this sense making agenda. Rather, we
argue that a focus on the bullies themselves may
contribute to a better understanding of the
phenomenon. As the majority of bullying emanates
from managers we want to focus on that cohort in
this paper. A bounded emotionality framework
provides a good basis for this research.
Bounded emotionality
The application of a bounded emotionality
perspective to the phenomenon of bullying will
allow the emotional antecedents and consequences
of bullying to be explored within a framework that
acknowledges the importance of emotions in the
workplace.
We argue that the regulation of
emotions that contribute to bullying will result in a
reduction in the incidence and severity of bullying.
A central tenet of the present article is that the
process of bullying can best be understood by
consideration of the underlying emotional
dimensions.
From an individual perspective,
Goleman (1998) has argued that personal behavior is
more of a function of emotional regulation than of
rational or cognitive processes. Ashforth and
Humphrey (1995) have offered a similar view at the
organisational level, arguing that work life is
intrinsically emotional and value-based, and that
ostensibly rational organisational behavior reflects
the extent to which organisational members are able
to reconcile emotional issues in the workplace.
Putnam and Mumby (1993) introduced the notion of
bounded emotionality specifically as a foil to
Simons (1976) notion of bounded rationality. The
concept of bounded emotionality is predicated on
the idea that emotional variables underlie
organisational behavior.
Martin, Knopoff and Beckman (1998) examined
organisational control from a bounded emotionality
perspective and argued that organisations can
change their existing practices through the
introduction of bounded emotionality. The key
point for Martin and her colleagues is that a bounded
emotionality framework encourages individuals to

constrain their emotional expression to create
effective relationships with their fellow workers.
Martin et al. (1998) suggest that relationships
formed as a result of bounded emotionality result in
a better understanding of work related emotions.
From our brief review of bullying, the focus of
existing research is based on general themes
associated with defining the actions and activities of
the bully, and the consequences for the target or
victim. Yet the very nature of being bullied suggests
that an understanding of the actions involved in
bullying will only lead to reactive responses
focussing on those actions. Consistent with our
argument to date, we contend that there is a need to
explore the interpersonal and intrapersonal
understandings that individuals hold of his or her
bullying experiences. Examining bullying from
within the bounded emotionality framework is
presented as one way of addressing this oversight.
In the next section we present a model of the
antecedents of managerial bullying.
A Model of the Antecedents of Managerial

Bullying
Figure 1 outlines a model of the antecedents of
managerial bullying in which organisational and
individual factors render a manager susceptible to
using bullying tactics.
Figure 1 - Antecedents of Managerial bullying
P1
Lack of
Constructive
Conflict
Focus on
ends and not
means
P2
P3
Workplace stress
Organizational
Antecedents
P4
Incidence of
workplace
bullying
Poor Emotional
Regulation
P5
Poor Social Skills
P6
Low Empathy
Individual
that managers who are high in empathetic concern

and perspective taking (Davis, 1994) would also be
less likely to bully. Finally, we argue from a
bounded emotionality perspective that the emotions
that emerge from the organisations culture in a
climate of constant change can contribute to
workplace bullying. Specifically, managers with
poor emotional regulation will be more likely to use
bullying tactics in response to their own
uncontrolled emotions.
Propositions
Organisational Level
From our review of literature, bullying is enhanced
in an organisational climate where the conflict is not
dealt with, but rather avoided. An organisational
culture where the primary coping mechanisms are
withdrawal and avoidance will therefore enhance the
power of the bully. Following this argument:
P1
Organisations
that
experience
dysfunctional confrontation in the workplace are
likely to experience a higher incidence of bullying
than those organisations that do not.
DAveni (1995) notes the emerging trend for
managers to value short-term rewards over longterm outcomes. These trends suggest that some
organisations focus on the achievement of goals, at
the expense of the method by which these goals are
attained (DiMaggio & Powell, 1983). A concurrent
outcome of this type of behavior would be for the
utility of a tactic such as bullying to be seen as
appropriate in circumstances where encouragement
and inducement may not achieve similar outcomes.
Thus:
P2
Organisations that focus on outcomes at
the expense of the process and the means by which
those outcomes are achieved are more likely to have
a higher incidence of bullying in the workplace than
those organisations that focus on process and
means.
Antecedents
At the organisational level in Figure 1, we argue that

the existence of an organisational culture in which
short term gains are valued over the means used to
achieve those gains will enhance the climate for
bullying. We also argue that bullying will be
prevalent in organisations where personal or
organisational confrontation is discouraged. Finally,
at the organisational level, we propose in Figure 1
that organisations with a high level of workplace
stress will increase the likelihood of managers
responding with bullying tactics.
At the individual level in Figure 1, we contend that
managers with poor social skills may be more likely
to use bullying as a tactic. Our model also proposes
As noted earlier in this paper, there is an increasing

level of stress being experienced as a result of
constant change in the workplace. Research into
coping strategies by Hartley, et al. (1991) suggest
that employees under stress are initially more likely
to attempt to deal with their situation by the adoption
of negative coping strategies. Stress has also been
associated with lower performance in cognitive tasks
(Fiedler, 1986).
We contend that this is a
consequence of the employee lacking emotional
control as a result of the threat of constant change
and a fight response being produced resulting in
behaviours that are protective, rather than proactive.
Following this line of argument:
P3
Organisations that have a higher level of
workplace stress will experience a higher incidence
of bullying in the workplace than

organisations with low workplace stress.
those
and norms, while other strategies will need to

address skill deficits in individual managers.
Individual Level
As noted earlier, we contend that bullying tactics
emerge from a managers emotional reaction to
change within organisations. The production of fear
and confusion as a result of a lack of clarity about
organisational change can lead to protective and
aggressive in behavior on the part of the manager.
Following this line of argument:
In the case of the bullied worker, we pointed to the

need for proactive strategies by the organisation.
Substantial economic savings are made through
early intervention as part of a strategy for workplace
rehabilitation (Hayton, 1995:183). We contend that
is better to be proactive in addressing bullying by
ensuring that the organisational context does not
support bullying. Such a signal will significantly
impact upon morale, and loyalty, and will improve
contextual performance. Each of these factors will
provide immeasurable benefits to any organisation.
P4
Managers who are unable to regulate their
emotions are more likely to use bullying tactics in
the workplace than those managers who are able to
regulate their emotions.
Our next proposition is based on the premise that
managers with a greater range of personal skills will
choose to maintain working relationships, rather
than jeopardize them. This is not an altruistic move
on their part. Co-operation provides greater
commitment than compliance and therefore will
produce better performance (Borman & Motowidlo,
1993). Consequently, managers who use coercive
means to achieve tasks are risking lower
performance from their workers.
Given that
managers generally desire better performance from
their workers, it follows that there must be a lack of
skills on the part of the manager who uses coercion
or bullying as a motivator. Our fifth proposition is
therefore:
P5
Managers who have poor social skills are
more likely to use bullying tactics in the workplace
than those managers who do have good social skills.
Finally, we argue that those managers who bully
will generally be low in empathy. If managers were
aware of the implications of their actions on others
and were able to empathize with them, then they may
be less likely to use bullying as a tactic. It follows
then that:
P6
Managers who are low in empathetic
concern or perspective taking are more likely to use
bullying tactics in the workplace than those
managers who are high in empathetic concern or
perspective taking.
Implications and Future Directions

In this article we have argued that organisational
change produces emotional reactions. We have also
demonstrated how the emotions that emerge from
this context can lead to bullying. We contend that
proactive strategies designed to address the bullys
behavior need to be implemented at the workplace
level.
From our propositions, some of these
strategies will need to address organisational culture
Our model is also consistent with the argument that

consideration also needs to be given to the social
context within which events occur. While the
context may include the nature and extent of the
bullying experience, the workplace social setting in
which the bullying occurred is also of vital
importance. Future research needs to be directed to
understanding and interpreting these meanings and
the intentions of participants in their interactions
with others (Denzin, 1989).
Our model forms the genesis of our ideas to date.
To that extent, some might consider the model too
simplistic in terms of potential antecedent issues.
For example, the social psychology literature
increasingly focuses on the interaction of
behavioural, emotional, cognitive and situational
variables in any explanation of social behaviour.
Attributions, goals, perceptions of group and/or
situational norms are seen to mediate emotional
arousal and its control (that is, P4), and social skills
are sometimes not considered as a set of behavioural
responses or skills as may be inferred from our
argument. Empathy and emotional control, for
example, are often considered to be a subset of
social competence or skills. Thus, presenting a
framework with six specific antecedents that are
displayed as independent, and with linear
unidirectional effects as shown in Figure 1, may be
seen as underestimating the complexity of the issue
and of ignoring critical interaction effects.
Clearly, therefore, there is a need for empirical
testing of our model, including the aforementioned
interaction and feedback effects. We intend to carry
this theoretical model forward by initially examining
those aspects of the model that have not been
addressed in earlier research. As a starting point, we
will examine individual traits of managers and
organisational climate to determine their impact on
bullying.
Conclusion
In this paper we have argued that the phenomenon of
managerial bullying should be addressed
proactively. Reactive solutions such as legislative
change and counselling seek redress for a problem
that has already occurred. In this paper we have
argued for a more proactive response to bullying
based on bounded emotionality. We have contended
that organisational level intervention in terms of
culture, attitudes and beliefs will provide a
supportive environment that will minimize the
incidence of bullying. But this tactic needs to be
supported by acknowledging the potential emotional
reaction of individual managers to change. A
bounded emotionality response, coupled with
improved social skills, will do more to alleviate the
cost of bullying than any legislative program could
hope to achieve. Other programs designed to
address similar issues such as domestic violence
similarly have come to the realization that attitudes
and skills are more powerful tools than legislation in
addressing hidden phenomena.
Acknowledgements
The researchers wish to thank the two anonymous
reviewers for helpful comments of an earlier draft of
this paper.
The researchers wish to advise that the research
from which this paper was drawn was undertaken in
each authors capacity as a staff member of Griffith
University.
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Peter.Jordan@mailbox.gu.edu.au
Phone: 0011 61 7 3875 3717

Peter J Jordan
High Performing Work Teams: Does emotional intelligence matter?

Peter J. Jordan
Abstract
This paper explores the link between emotional
intelligence and work team performance.
Specifically, the aim this paper is to test the
proposition that teams composed of individuals with
high emotional intelligence will perform at a higher
level than teams composed of individuals with low
emotional intelligence. In the study outlined in this
paper, longitudinal performance data were gathered
from problem based learning teams in the form of
weekly qualitative reports. Team performance was
measured by assessing the groups goal focus and
process effectiveness in completing assigned tasks.
The research outlined in this paper then, is an
empirical test of claims that emotional intelligence
predicts work performance.
Introduction
A number of books have focussed on the
contribution
of
emotional
intelligence
to
management in organizational settings (Cooper &
Sawaf, 1997, Goleman, 1998; Weisinger, 1998). An
unfortunate consequence of this profusion of work,
however, has been a propensity for the authors and
consultants involved to make exaggerated claims
about the contribution of emotional intelligence to
performance and success. Few of these claims have
been based on empirical research (Ciarrochi, Chan,
& Caputi, 2000). Rather, the claims have been
drawn from anecdotal evidence relating to
exceptional individuals (Goleman, 1998) or post hoc
attribution of emotional intelligence to individuals
who have clearly never completed a measure to test
their emotional intelligence (Cooper & Sawaf,
1997). In this paper I argue that a more scientific
approach is required in emotional intelligence
research if the construct is to achieve credibility.
In empirical tests of the link between emotional
intelligence and performance, only Schutte et al
1998 purports to use a complete measure of
emotional intelligence. Although the measure of
emotional intelligence used by Schutte had
shortcomings (Petrides & Furnham, 2000), the
research did show a link between high emotional
intelligence and high academic performance.
Schutte and her colleagues argued that academic
performance was more than just a measure of
intelligence, because scholastic achievement

involves undertaking tasks under stressful
conditions.
This study however, cannot be
generalised to the impact of emotional intelligence
on work performance for two reasons. The first
reason is that the skills required to achieve high
academic performance would primarily relate to
intra personal aspects of emotional intelligence
(particularly emotional control and emotional
knowledge), rather than the interpersonal aspects of
emotional intelligence. Secondly, the academic
results only demonstrate task performance, a limited
measure of performance in a work setting (Borman
& Motowidlo, 1993). Schuttes study, therefore, has
limited application to work performance.
When performance is measured at the individual
level in organizations, two broad factors are
generally examined, task performance and
contextual performance (Borman & Motowidlo,
1993). As my focus in this paper is on teams, I
decided to examine team performance, rather than
the individual performance of workers within teams.
This reflects modern work practices where teams
and measures of team performance are being used
increasingly in organizations (Beyerlein, Johnson, &
Beyerlein, 1997). While there is general agreement
that the introduction of teams has contributed to
performance in organisations (Beyerlein, et al.),
teamwork is not necessarily a universal antidote for
poor performance.
Research into teams has
addressed a broad range of issues that can impact on
their performance including team development
(Gersick, 1991); personal attributes (Margerison,
McCann & Davies, 1986); and, general
competencies (Cannon-Bowers & Salas, 1998).
This research generally relates to personality traits
and working styles, rather than emotional skills and
abilities that contribute team performance.
A question remains, however, over the most
appropriate method of analysing team performance.
Although both task performance and contextual
performance are accepted constructs for measuring
individual performance, a literature search suggests
that they have not been used as a measure of team
performance.
Work group performance

Research into team performance suggests that
specific aspects of both team task performance and
team contextual performance, contribute to overall
team performance. Cohen, Mohrman, and Mohrman
(1999), for instance, found that the task performance
of teams was directly related to the degree the team
developed a shared understanding of the direction
they were taking.
In achieving this shared
understanding goal setting, the ability to measure
goals and the specificity of goals all contributed to
task performance (Cohen, et al, 1999). It would
appear then that goal focus contributes to task
performance of teams. The variable I use in this
study to measure task performance will therefore be
team goal focus. Team goal focus is defined as the
extent to which teams are able to clearly articulate a
common goal and work towards achieving that goal,
even if diverted from the goal.
Research has also found that the quality of processes
used by teams directly impacts on contextual
antecedents to performance (Druskat, Urch &
Kayes, 1999). Process has also been found to have a
direct influence on team effectiveness (Cohen &
Bailey, 1997). Contextual performance, therefore is
directly related to the effectiveness of the processes
used by the team because the interpersonal skills of
individuals and the ability of team members to cooperate and resolve conflict functionally determine
the effectiveness of the team (Borisoff & Victor,
1998). The variable I decided to use to measure
team contextual performance then is team process
effectiveness. Team process effectiveness is defined
as the extent to which a team internally monitors
their processes and monitors their interpersonal
interactions to ensure the most effective use of their
combined skills and abilities.
Work group performance and emotional intelligence
Weiss and Cropanzano (1996) argue that emotional
factors can have a long-term effect on performance,
but are not necessarily immediately apparent. Since
the focus of this paper is on the emotional aspects of
teamwork, qualitative (long term), rather than
quantitative (short term) indicators were more
appropriate as measures of performance (Brannick,
Salas & Prince, 1997). Team process effectiveness
and team goal focus provided effective measures of
performance for this study.
The current model of emotional intelligence
proposed by Mayer and Salovey (1997) includes the
perception, assimilation, understanding, and
management of emotions. In their model, perception
provides a platform for assimilation, and
assimilation in turn provides a foundation for
understanding. Finally, understanding contributes to
emotional management. Mayer and Salovey (1997)
emphasize that emotional intelligence is a multidimensional construct and that these steps are
iterative, rather than linear.
I anticipated that team process effectiveness would
be influenced by emotional intelligence as the
superior interpersonal skills of individuals with high
emotional intelligence would contribute to better
working relationships in the team. Team process
effectiveness also requires that team members are
able to deal with their own emotions and control
their emotions. At the same time, I considered that
team goal focus should be better for high emotional
intelligence teams both as a result of improved
working relationships inferred by higher contextual
performance, but also due to the link between
emotional intelligence and problem solving.
Emotional intelligence is correlated with the ability
to modify self presentation and the ability to
influence others, factors that would be useful in
teamwork (Jordan, Askanasy & Hartel, 1997).
Emotional intelligence also correlates with an
individuals propensity to be in touch with their
emotions and to be able to control their emotions.
Thus, I expected to find that :
Proposition 1: Teams composed of individuals
with high emotional intelligence will use more
effective group processes than team composed of
individuals with low emotional intelligence.
Individuals with high emotional intelligence also
adopt a more creative and intuitive style of problem
solving (Jordan et al, 1997). This combined with the
ability to control emotions and generate appropriate
emotions would contribute to better team outcomes.
The findings of Jordans et al study suggest that
individuals who are able to deal with the emotions of
other will also be better at obtaining optimal
performances from others in the team and
consequently have a greater potential to achieve
stated goals. I therefore expect to find that
Proposition 2. Teams composed of individuals
with high emotional intelligence will have a more
effective goal focus than team composed of
individuals with low emotional intelligence.
Team Performance Study

Sample
Participants in the team performance study were 448
undergraduate students enrolled in a business
communications course. The students worked in 3
to 7 person problem-based learning (Engel, 1993)
teams for the duration of a 14-week semester. The
mean size of the teams used in this study was 5.12
persons. The teams were randomly selected, that is,
the students were assigned to teams, rather than
being allowed to self select their fellow team

members. This ensured that the individuals in the
teams were, in general, working together for the first
time. The teams with few exceptions contained both
males and females in varying proportions.
Measures
Emotional Intelligence
Emotional intelligence was measured using the self
reporting questionnaire of the Workgroup Emotional
Intelligence Profile Version 3 (self WEIP3) (Jordan,
et al 1997). The WEIP3 was scored using a 7 point
Likert-type response scale, where 1 represents strong
disagreement and 7 indicates strong agreement.
Jordan and his colleagues report that the self WEIP3
demonstrates acceptable construct validity and
reliability. The combined scales of the self WEIP3
returned a Cronbach alpha of .86.
An issue that was encountered during this study was
determining the most appropriate method for
measuring the emotional intelligence of work teams.
Although the method of assessing of an individuals
emotional intelligence is controversial (Mayer,
Salovey & Caruso, in press), there is wide
acceptance of the appropriateness of measuring
individual attributes or qualities. The measurement
of team attributes, however, is more problematic.
Existing studies have shown that group member
ability contributes to group performance (Bottger &
Yetton, 1987), but no research has clearly delineated
how this occurs.
Three alternatives presented themselves for
measuring team emotional intelligence.
Team
emotional intelligence could have been measured by
aggregating the emotional intelligence of each team
member. Alternatively, the aggregated emotional
intelligence of the team could have been reflected in
the individual with the highest emotional
intelligence or by the emotional intelligence of the
leader of the group (Atwater & Yammarino, 1992).
Although each of these alternatives were sustainable,
I decided to use the first method after exploring
research into group decision making. Pate, Watson,
and Johnson (1998), for example, have shown that
the decision-making ability of a group is generally a
better indicator of performance than the best
decision-maker in the group. Since most teams in
the study rotated the leadership role, the
identification of a single group leader was not
feasible.
Team emotional intelligence was measured by
aggregating the total score from both scales of the
self WEIP3 for all team members and then dividing
this score by the number of members of the team.
This provided a basis for comparison across teams
because each of the teams involved in the study
consisted of different numbers of team members.
This will be referred to as the team average self

WEIP3 score.
Team performance
Existing measures of task performance and
contextual performance (Borman & Motowidlo,
1993) were not suitable for the current study.
Because the problem based learning teams were self
directed and therefore set their own goals, gathering
data using existing measures of task performance
based on supervisor assessment (Goodman &
Svyantek, 1998) would have been difficult as the
teams had no supervisor. Self assessment of task
performance was also considered as an option, but
was rejected. Using a self assessment methodology,
teams that set themselves easy goals and achieved
them would be given a similar or better task
performance rating compared with those groups that
set difficult goals and just failed to achieve them. A
simple quantitative self assessment measure would
not pick up this difference.
Richer data were
available for task performance by examining
qualitative data relating to both the goals that each
group set for their work during the session and their
ability to pursue those goals. I therefore decided to
develop a measure of team goal focus as a broad
indicator of performance.
Similarly, quantitative measures of contextual
performance were traditionally supervisor scored
(Goodman & Svyantek, 1998). Again this method
was not appropriate for my study. Although there
may have been other methods of measuring
organizational citizenship behaviour and helping
behaviours in the teams, this may have resulted in a
de facto measure of the homogeneity of the group,
rather than the effectiveness of processes.
Consequently, I decided to develop a short measure
of team process effectiveness. Again, by examining
qualitative data, rather than using quantitative data, a
more meaningful measure could be obtained.
Team performance data were based on weekly
reports that the teams submitted over a nine-week
assessment period. The team reports were measured
against six criteria: three relating to team process
effectiveness, and three assessing the teams goal
focus. Team process effectiveness criteria reflected
quality, understanding, and attention to group
processes. A typical item in the team process
effectiveness criteria included How concerned were
the group with monitoring its own application of the
processes? Team goal focus criteria dealt with the
generation of appropriate goals and the focus the
team had on goal attainment. A typical item used
for assessing team goal focus included Does the
group remain focussed on the goals in this session?
(Do they return to set goals if diverted?).
Three independent raters were asked to rate the

qualitative reports using the measures I had
developed. These raters met prior to marking the
weekly reports, and each of the criteria were
discussed and parameters set for assessment of each
criterion.
Seven-point Likert-type scales were
developed to score the reports. Scores on the team
process effectiveness and team goal focus measures
were averaged for each week to give two weekly
scores for each team. The reliability of the
independent markers scoring for each of the teams
were checked for each week using Cronbach alpha
reliabilities. These averaged 0.74 for team process
effectiveness and 0.75 for team goal focus over the 9
weeks of scoring.
data for each team.

This analysis indicated
significant trends during the 9 weeks of
measurement. Correlation of the slopes of each
teams weekly goal focus and process effectiveness
scores with the team average self WEIP3 score
indicated a significant relationship for goal focus, r
(44) = -0.34, p < 0.05, but not for process
effectiveness, r (44)= -0.21, ns.
Table 1
Goal Focus and Process Effectiveness Means, Standard Deviations and
Raw Difference Scores for Week 2 and Week 9
Low Emotional
Intelligence Teams
High Emotional
Intelligence Teams
Mean
S.D.
Mean
Week 2 Process Effectiveness

Week 9 Process Effectiveness
4.64
5.75
1.58
0.76
5.41
6
Difference Week 2 and 9
1.11
Methodology
Week 2 Goal Focus

Week 9 Goal Focus
4.08
5.46
During the study, the teams explored a specific topic

area of managerial communication using problembased learning techniques (Engel, 1993) during a
meeting that lasted a minimum of two hours each
week. The format of these meetings and the
processes the teams used to explore the topic area
were at the discretion of the groups. Essentially, the
teams were self directed in setting their goals and
devising methods of undertaking the work. The
personal relationships and dependencies that
emerged from this style of work correspond to a
work setting where teams are formed to undertake
specific project and achieve specific goals within a
specific period of time.
Difference Week 2 and 9
1.38
The teams were asked to submit weekly reports of

their team meetings for nine weeks of the semester.
The written report detailed the goals the team had set
for the week and the processes that contributed to
their learning. Teams were also asked to detail in
the report individual interactions, team processes,
and any significant learning or insights the meeting
produced.
0.59
*
1.55
0.72
S.D.
1.47
0.77
4.95
5.38
0.43
1.41
1.06
* p= <01
# p= not significant
To investigate these effects further, I divided the

teams into two groups, one containing the 15 highest
average emotional intelligence teams, and the other
comprising the 15 lowest average emotional
intelligence. Table 1 shows mean scores in each
group for the team report scores from the first and
last weeks of analysis. An analysis of the raw
difference scores based on this data indicated that
the increase in scores for the low emotional
intelligence teams was significant for both process
effectiveness, t (15) = 3.71, p < 0.01, and goal focus,
t (15) = 3.06, p < 0.01. The increase in scores for
high emotional intelligence teams however was non
significant.
Results
The team report data were initially screened to
determine the extent of missing data. The reports of
some teams were not complete for the 9 weeks of
reporting and others were unavailable. All of this
data was excluded from further analysis resulting in
44 teams being included in the analysis.
Finally, in screening the data the first week of team
report data were excluded from the final analysis
because this week appeared to be a settling in period
for all teams where the requirements of team
reporting had not been made clear.
A time-series of the data was developed by charting
changes in team performance based on the process
effectiveness and the goal focus criteria. A leastsquares linear fit was then applied to the time-series
For the low emotional intelligence teams, most of

the improvement in goal focus was achieved over
the first three weeks (Figure 1). In contrast,
improvement for process was steady across the
entire eight-week period (Figure 2). The change in
scores between the first and last weeks was not
significant for the high emotional intelligence teams
for either process effectiveness or goal focus.
Significantly, there was a slight reduction in
performance for both high and low emotional
intelligence teams in Week 7which coincided with

assessment being due.
Discussion
This study demonstrates that the self WEIP3 has
predictive ability with the aggregated team
emotional intelligence predicting initial team
performance. That is, high emotional intelligence
teams consistently operated at high levels of
performance throughout the study period. Low
emotional intelligence teams, on the other hand,
initially demonstrated a lower level of performance.
Significantly, the low emotional intelligence teams
equalled the performance of the high emotional
intelligence teams by the end of the study period.
An important finding of this study is that low
emotional intelligence teams, while not performing
initially at a high level in relation to team goal
setting or team process effectiveness, can perform as
well as high emotional intelligence teams over time.
At the beginning of the team reporting period, the
low emotional intelligence teams had lower
performance than the high emotional intelligence
teams for both team process effectiveness and team
goal focus. By the end of the reporting period,
however, the difference in performance for the high
and low emotional intelligence teams had essentially
vanished for goal focus and declined by half for
process effectiveness. This reduction in the
performance gap between the two groups of teams
appears to be attributable to the significant
improvements made by the low emotional
intelligence teams only.
At this stage, I can make no definite conclusions
about the reason for this improvement. I can say that
the high emotional intelligence teams seemed to
have the requisite skills and abilities from the outset
to perform well against team goal focus and process
effectiveness criteria while low emotional
intelligence teams appeared to lack these skills. The
longitudinal nature of the study meant that a number
of factors may have influenced the change over the
nine weeks. These include training, familiarity with

other team members, or dominant team members
emerging whose individual skills improved the
performance of the team. Future research will
explore these possibilities.
Indeed, remembering that self WEIP3 scores were
taken at the end of the reporting period, this finding
also suggests that the attributes measured by the
process effectiveness and goal focus constructs
while related to emotional intelligence may be
improved independently of emotional intelligence as
measured by the self WEIP3. This is because the
low emotional intelligence teams eventually
improved their performance, but the individuals who
make up these teams continued to have lower
emotional intelligence. A possible explanation for
this is that low emotional intelligence teams were
able to compensate over time for their shortcomings
in teamwork through trial and error.
Limitations and future research

In particular, it should be noted that the aim of Study
Two was to determine if emotional intelligence is a
predictor of performance in work groups. It was not
an aim of this study to research interventions that
may improve emotional intelligence. As a result
there are a number of limitations in this study. These
include the use of student teams, the need to address
the moderating effects of training and group
dynamics, and the impact of leadership.
The first and most obvious limitation of the present
study is that participants were undergraduate
students. Although almost all of the respondents did
have some work experience, they clearly were
artificial teams in the true meaning of the term
work teams. I expect, nonetheless, that these
results should replicate in ad hoc teams created in
the work place for specific short-term projects.
While this finding would hold true for these shortterm teams, it appears likely that for long-term
teams, it may only be the initial performance that
will be effected. The current research needs to be
extended from student workgroups to teams in the
workplace.
A second limitation concerns the moderating effects
of training and group dynamics on the self WEIP3
scores. Training improves group performance
(Firestien & McCowan, 1988, Stout, Salas &
Fowlkes, 1997). All teams in this study received the
same level of training, so that the training received
by the participants was a consistent moderating
variable. The current research design however, did
not allow me to determine whether learning
influenced the emotional intelligence of team
members, because measures were not taken prior to
the beginning of training. Future studies will
include pre- and post-measures of emotional
intelligence to see if training or awareness raising

does influence the emotional intelligence of
individuals.
Furthermore, the effects of the internal structure of
the groups, such as the emotional intelligence of the
leader and the homogeneity and heterogeneity of the
teams, were not analysed. From the performance
data alone, it is not possible to determine whether
the improvements of the low emotional intelligence
teams were attributable to the increased interpersonal familiarity team members gained over the
duration of the study. Studies on the effects of the
emotional intelligence of team leaders may also be
of interest.
Implications and conclusions

A particularly interesting finding of the present
study was that work teams with lower average
emotional intelligence initially performed at a lower
level than high emotional intelligence teams. This
has implications for managers, suggesting that
organizations could profit by identification of high
and low emotional intelligence work teams. Teams
with low average emotional intelligence may require
some assistance in team work and in identifying
effective team processes to achieve optimum
performance quickly. Additionally, these teams may
require a longer lead-time for the team to reach
optimal performance.
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Peter J Jordan
Peter.Jordan@mailbox.gu.edu.au
Phone: 0011 61 7 3875 3717
Application of the principles of knowledge based system development

for dairy farmers to other small businesses
Don Kerr
Abstract
An analysis of problems associated with the uptake
of knowledge based decision support systems
(KBDSS) by Australian dairy farmers was used to
determine the factors that influence KBDSS
adoption by small businesses.
This analysis
indicated that system developers need to have a
good working knowledge of the target industry and
to understand the types of decisions that are made
by managers in order to develop systems that will be
used. It was also determined that small business
managers needed more ownership in the process of
KBDSS development. An example of a KBDSS
tailored to farmers in the northern Australian dairy
industry is given by way of example. The author
suggests that the factors affecting KBDSS adoption
by dairy farmers can be equally applicable to small
businesses in other industries.
Keywords
Decision Support, Knowledge based systems, Small
Business
Introduction
Agricultural decision support systems (DSS)
development has traditionally been based on models
developed by agricultural scientists and their
acceptance by end users has been marginal (Cox
1996). Cox (1996) outlined many of the problems
associated with the adoption of DSS by farmers.
These basically revolved around the different
approaches to problem solving between professional
researchers and farmers. He further contends that
farmers are not as computer literate as professional
researchers and that decision support systems have
been too rigid because they are developed using a
different paradigm based on scientific knowledge
and not practical knowledge as would be used by the
farmer. These different approaches to development
have meant that the models used in DSS have been
described as too complex and over engineered for
the problem they are meant to provide solutions to.
In addition, many farmers do not know the jargon
used and the variables needed for basic input into the
models.
Other factors affecting adoption rates include a lack

of ownership in the final product due to lack of
involvement in its development and a lack of
knowledge of how the system operates. This lack of
knowledge of the operations of models often leads to
the description of a black box (Hart and Wyatte
1993).
Because of their very practical approach to problem
solving, farmers especially are very wary of black
box models and this, combined with the overengineered solution as outlined above leads to
scepticism of product output and possible non
adoption.
One solution to this problem is to simplify the
models used to assist people make decisions.
Instead of devising models that can predict the level
and efficiency of production from given inputs as
has been the case in traditional decision support
systems, why not use heuristics from experts to
estimate the efficiency and profitability of a business
based on accepted parameters. In other words use a
top down, systems approach rather than an analytical
method based on data and experimental
relationships.
The expertise of experienced
researchers, advisors and practitioners can be
harnessed to develop these top-down models based
on heuristics.
This study is based on agricultural DSS development
but it is suggested that the principles shown here can
equally apply to small businesses in any industry.
How do we improve end-user acceptance?

Traditionally decision support systems have been
based on research models that have the primary aim
of discovering and understanding relationships
between data or applied models that are used as a
decision or policy making tool (Newman et al 1999).
These decision support systems have been repackaged and made available to farmers resulting in
problems as outlined above.
There are many ways we can improve on these
traditional development methods. Understanding
what types of decisions are made by farmers on their
own farm is one, determining what should be

included in the knowledge base is another, and
providing ownership in the development process is a
third.
Understanding the types of decisions made

on farms
The type of knowledge based system to be
developed is determined by the level of managerial
decision-making. Leigh and Doherty (1986) describe
three management levels as operational, tactical and
strategic. These levels of management can be
applied to small business operations, such as dairy
farms or beef properties, as they divide the types of
decisions individuals must make on a day-to-day
basis in their enterprise.
A major requirement for the operational level of
decision making is the maintenance of records, and
to this end, data processing software packages have
been developed. At the tactical level, decision
making is concerned with controlling the enterprise
by comparing the results of operations with previous
plans. The strategic decision making level is mainly
concerned with planning for the long-term allocation
of future resources, and making decisions on future
commitments.
Decision
making level
Operational
Purpose
Operating - Maintaining records and
facilitating the flow of work
Tactical
Controlling - Comparing results of

operations with plans and adjusting plans
or operations accordingly
Strategic
Planning - Long term policy decisions and

the planning for future commitment of
resources
Source: Leigh and Doherty, 1986

Each level of decision making requires different
computer software to assist in the decision making
process. For example, software at an operational
level does not require the same degree of industry
systems knowledge as one that interrogates such
databases to assist decision-makers make strategic
decisions.
Determining what should be contained in

the Knowledge Base
Determining the level of detail needed in the
knowledge base is important in ensuring that a
decision support system does not become too
complex and provide over engineered solutions.
Ernst (1988) suggests that the reasoning procedures
used by decision makers depend on the
circumstances surrounding the problem, and that this

may involve interactions between the following two
types of knowledge:
1. Static knowledge: the knowledge that
managers have about the environment, usually
stored in a database, and used routinely in
operations; and
2. Active knowledge: the knowledge used by
managers in dealing with their environment based on experience, training and ability.
Klien and Methlie (1990) discuss a similar idea in
distinguishing between the task and performance
environments. The task environment can be likened
to static knowledge and is where the decision-maker
uses formal models developed from databases using
statistical or mathematical techniques. The
performance environment can be likened to active
knowledge where the mental processes of people are
considered. These authors suggest that to effectively
model the decision making process, both the task
and performance environments, or static and active
knowledge, must be included in the model. Both
authors also describe an alternative subdivision of
knowledge, namely shallow knowledge and deep
knowledge.
Shallow knowledge is the expertise developed by
training and experience; it contains rules of thumb
and short cuts the trained professional has learnt to
use in order to perform better. Deep knowledge is
based on first principles, laws and theory that form
the basis of an experts profession, and is obtained
through an understanding of theory and fundamental
principles. KBDSS can only represent shallow
knowledge and must be tailored to address a specific
knowledge domain.
KBDSS tailored to small business end users such as
dairy farmers must contain practical rules based on
the shallow knowledge of experts and this should
also include shallow knowledge or rules of thumb
from end users themselves.
Providing ownership in the development

process
Studies by Berry (1994) and Jojo and OKeefe
(1994) indicate that it is essential that the end users
be involved in the development process to ensure the
final product meets their needs. This can be achieved
by allowing the them to have input in how the
system is developed and provide advice on
development.
The organization of system
development committees and the demonstration of
the product at an early stage can also help.
It is important that end users can make changes
when they want to and this requires that that the
system is flexible enough to cater for these changes.
This usually means having to prototype the system.
Prototyping involves showing a new version to a

sample of end users and their comments recorded.
These comments are then used as a guide for the
production of the next prototype. This process is
iterative with prototypes being produced until all end
users and the expert accepts the final product. To do
this you need to have flexible system development
tools such as expert system shells.
Expert system shells are able to separate the
knowledge base from the program workings. This
means that the developer only has to worry about the
knowledge base as the shell is able to handle the
user interface aspects of the application such as
command buttons, text boxes and other program
workings.
In order that KBDSS are more accepted, it is
important that developers provide methods for
development that are suitable for small business
operators. Based on the work from Cox (1996) and
Hart and Wyatte (1990) it is imperative that any
models used in the system be transparent to the user
and not be black-boxes. It is also important that
the system can show the end user how it arrived at
an answer.
The system should incorporate
appropriate, context sensitive help screens and be
windows based and easy to use. Above all the end
users must have ownership of the product and this
can be obtained by evolutionary prototyping and
listening to and addressing (if possible) all the end
users concerns. Another advantage of prototyping is
that it can amply demonstrate what is or is not
possible and this can help end users establish what is
technically feasible.
A role for knowledge based systems in

small businesses
Knowledge based systems have a role in helping
managers make strategic decisions for their
enterprise by allowing them to explore different
options or scenarios of change. This concept of
scenario development is consistent with the design
and choice phases of decision-making described by
Simon (1977) and is considered an important benefit
of DSS by Newman et al (1999).
The development approach outlined above was used
for the development of a KBDSS called DairyPro
for the northern Australian dairy industry (Kerr et al
1999a and b). The approach concentrated initially
on looking at the business enterprise on a whole
systems basis. This decision was based on the types
of decisions dairy farmers make and the gaps in
computer software in the dairy industry at the
strategic level of decision making. In addition,
Research-funding Corporation initiated workshops,
indicated that dairy farmers were asking for DSS
that were able to look at the broader picture for their

farm.
The advantage of the whole farm, top down
approach in the Australian dairy industry is that it
can help managers determine the big drivers that
effect production. At this level, a high degree of
detail is not required. Big drivers such as the level
of debt or poor labor efficiencies have a much
greater influence on farm viability than basic
operational decisions such as appropriate levels of
fertilizer usage for example.
This whole farm approach can identify gross
deficiencies in production methods and once these
have been identified, other, more traditional decision
support methods can be used to help determine
optimum levels of inputs at a higher level of
resolution. These traditional methods may include
simulation
models,
linear
programming
optimisation, regression analysis and artificial neural
networks.
An example of the approach - DairyPro

DairyPro is a KBDSS for strategic planning on
northern Australian dairy farms.
It provides
empirical relationships based on farm feeding
systems composed of sub systems and components
within sub systems. It is able to do scenarios of
change based on the whole farm over the whole year
and is written in the Level 5 for Windows expert
system shell.
It was developed using the
evolutionary prototyping approach with steering and
system development committees controlling the
development process. Individual farmers used data
from their own farms to work through DairyPro in
the evolutionary prototyping process. These farmers
were selected by dairy extension officers to be a
representative cross section of farmers in their
region.
DairyPro is meant to be an umbrella program to
identify gross problems (get it 80% right). It will
subsequently hone into specific problems using
specific expert systems, for example DairyPro may
identify a problem with pasture utilization and
subsequently link the end user to an expert system to
diagnose pasture based agronomic practices in more
detail
DairyPro allows farmers to compare their farms
performance with that of a hypothetical farm using
the same cow and feed inputs. These comparisons
are shown as a regional average estimate and an
achievable production estimate.
The regional
average estimate is obtained from multiple linear
regression models developed from survey data (Kerr
et al 1998), while achievable production is obtained
by summing the experts estimates of how much
milk can be obtained from each feed type on the

study farm.
models that can be used to compare the performance

of a target business with that of the whole industry.
DairyPro allows farmers to look at how a

management change can affect their profitability.
Comparing hypothetical what-if scenarios can do
this. Regional experts in dairy farming management
throughout Queensland and northern New South
Wales have provided the default values used by
DairyPro. However, farmers may enter their own
values if they wish.
Use of such models can give a non-threatening

environment for evaluation of individual small
business performance as they can be compared to
the model output rather than to another business that
could be known by individuals within the
comparison group.
Discussion
The DairyPro example provides a framework
whereby small businesses can develop DSS products
that can allow managers to compare the efficiency of
their business with industry averages.
This study suggests that the effective development
and acceptance of knowledge based decision support
systems must involve end users at all stages of
development.
Evolutionary prototyping is one
method of assuring that end users have significant
input in the developed product. Prototyping does
make the development process faster and allows
significant end-user involvement (OBrien 1999).
However, because the process is highly iterative and
the code is constantly changing, the process can lead
to redundancies in code and problems with logic
flows unless effective development tools are used.
A decision support system project initiated without
using such tools may become difficult to develop
and maintain.
Object oriented development tools such as Visual
Basic , combined with the use of expert system
shells such as Visual Rule Studio are examples of
such tools. Visual Basic allows the user interface to
be easily modified, while Visual Rule Studio allows
the heuristics or rules of thumb to be separated
from the interface code and eventually stored as a
dynamic library link file within a completed
application. Visual Rule Studio is an ActiveX third
party product developed for Visual Basic. These
products are cited for illustrative purposes only as
there are many other examples of other expert
system shells on the market that are able to do a
similar job.
Conclusions
The approach outlined in this paper can be applied to
industries that have a history of benchmarking
through analysis of industry survey data. This
analysis and the expertise used in analysis can
provide the heuristics for KBDSS development. The
same principles as those used in the development of
DairyPro can be applied to model the inputs and
outputs from typical businesses in a target industry.
This allows for the development of benchmarking
Decision support systems have been traditionally

associated with large organizations. This approach
has the potential of providing decision support
applications to small business clients, thus giving
them an insight as to their viability in relation to the
average benchmark based on expert opinion or
model output for their industry. Small businesses
such as dairy farmers have the potential, through the
use of DSS packages such as DairyPro, of obtaining
similar competitive advantages attributed to the
development and use or decision support systems in
larger organizations.
To develop KBDSS that are used by the target
industry, it is essential that effective and enthusiastic
development committees be formed. This can only
be done if the industry is in favour of KBDSS
development.
To this end, it is imperative that
programs that can demonstrate the advantages of
such developments (such as DairyPro) are shown to
a wider audience in other industries. It is also
important that such programs are evaluated on their
potential application to other industries rather than
being thought of as only relating to the specific
industry they were developed for.
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The evidence for high performance HRM systems in professional

service firms
Amanda Kilotata, Ashly Pinningtonb and John Grayc
a
Graduate School of Management, University of Queensland, Australia

Graduate School of Management, University of Queensland, Australia
c
Department of Management, University of Western Sydney Macarthur, Australia
HRM systems and the firm-based, contingency
approach, commonly labelled internal fit. The
universalist perspective suggests that it should be
Abstract
possible to identify the best HRM practices that with
In the field of strategic human resource management
adoption will lead to valued firm-level outcomes
(SHRM) there is a growing body of evidence
(Pfeffer 1994; Arthur 1994; Becker and Gerhart
supporting an association between what are now
1996). In contrast the contingency approach raises
commonly termed high performance HRM
the conceptual issue of whether any specific HR
practices and various measures of organizational
practices can be termed best practice, and argues the
performance. This paper explores the extent that
effectiveness of any practices can only be
theoretical conceptualisations of best practice and
determined in the context of a particular firms
internal fit are empirically evident in service firms.
strategy and environment (Miles and Snow, 1984;
The majority of the research literature on high
Delery and Doty 1996; Huselid 1995). Although
performance HRM is based on quantitative studies
empirical studies have increased in this field, there is
of the manufacturing sector whereas this study
still no clear body of evidence supporting one
focuses upon the service sector. Qualitative data
approach over the other.
forming part of an exploratory study are reported on
two areas of archetype (Greenwood, Hinings and
The universalist framework, which has increasingly
Brown, 1990; Hinings, Greenwood and Cooper,
been applied to research into high performance
1999), first, the interpretive scheme of people
HRM systems in recent years, is derived from the
working in professional service businesses, and
premise that a model of best practice in human
second, the structure and systems of the
resource management exists. It is simply the notion
organization. This qualitative case study research
of a one size fits all proposition for a HRM system
project commences with a review of recent empirical
that will yield superior organizational performance.
work on law firms to understand how best practice
The universalist argument has been highly regarded
and contingent approaches to HR might be
by such researchers as Pfeffer (1994) whereby it is
expressed within partnership firms. The two cases
believed a high performance model of HRM will
reveal substantive similarity in archetype and
generate superior outcomes in all competitive
institutional norms of best practice, but strong
contexts (Becker and Gerhart 1996; Youndt, Snell,
differences in strategic situation (defender,
Dean and Lepak 1996).
prospector) and human resource practices
(informal, bureaucratic). We conclude that future
Recent universalist research has concentrated on a
research on professional service firms should
specific set of practices that form a high
investigate informal and implicit senses of strategy
performance HRM system.
The use of high
and human resource management. This approach
commitment and involvement practices, focusing
will have greater potential for identifying linkages
upon those practices that develop and enhance
between strategy - HR - superior performance than
employee skills and commitment, have been evident
studies that seek to identify corporate characteristics
in a number of studies (Arthur 1994; MacDuffie
in a population of firms where many have limited
1995; Wood and Albanese 1995). The term high
affinity towards this mode of organizing.
performance practices is being increasingly used to
label them. The implicit assumption is that certain
Keywords
practices can produce higher performance, although
Archetype; Professional Firms; Best Practice;
the debate on which specific practices constitute the
Internal Fit
ideal set continues among researchers.
b
Introduction
Within the SHRM literature there has been a debate
between the universalist, or best practice, view of
One of the best known attempts to identify the ideal

set of practices that would form a high performance
HRM system is Pfeffers (1994) sixteen specific HR
practices. He advocated this set on the grounds that

their positive effects are well established within
organizational theory. These practices included
extensive training and development, incentive
compensation systems, employee participation,
employment security and grievance procedures for
staff.
A predictive research model had been
developed several years earlier by Guest (1987). He
hypothesized that if an integrated set of HRM
practices is applied with a view to achieving human
resource outcomes then superior organizational
outcomes will result. This normative approach
argues that specific HR policies and HR outcomes
will always create superior organisational outcomes.
In general, based more upon practices identified by
Pfeffer (1994) than the set of policies specified
within Guests model, researchers have endeavoured
to provide evidence of the positive effects of ideal
HRM practices.
Delaney and Huselid (1996)
conceptualised them as progressive, in place of the
term high performance, and investigated HRM
practices for their impact on employees skills and
ability, motivation, and the way that work is
structured to allow employees to improve how their
jobs are performed. They concluded that their
results show progressive HRM practices - including
selectivity in staffing, training, and incentive
compensation are positively related to perceptual
measures of organisational performance (Delaney
and Huselid 1996: 965).
Related to the concept of an ideal set of practices
further research has focused upon the idea that the
key to effective human resource management is
grounded in finding an appropriate combination of
practices. In addition, it has been proposed that the
synergised effect of the practices is greater than the
effect of each individual practice. The architecture
of the HR system is often emphasized as being the
nonreplicable component of the system that provides
the firm with its competitive advantage. Delaney
and Huselid (1996) argue that the architecture of a
system is most likely to be the best practice effect of
a firm, such as the principle that employee
performance is valued and rewarded. The concept
of architecture has been extended in some studies to
explicitly test the assumption that the interaction
between specific HR practices will have an impact
upon organisational performance. Ichniowski, Shaw
and Prennushi (1997) focused their study within the
framework of recent incentive contract theories,
which they argued assert that complementarities
frequently exist among a firms HR practices. Their
study included such practices as incentive
compensation plans, extensive selection, work teams
and skills training, which are similar to Pfeffers
sixteen practices. Results supported the hypothesis
that a range of high performance practices has
substantially positive effects on productivity. The
empirical evidence in support of the universalist
perspective has then increasingly shown a link

between high performance HR practices with a
divergent array of performance measures. To give
three examples, Ichniowski et al (1997) found the
impact of cooperative and innovative HRM
practices have a positive and significant effect on
organizational productivity, specifically uptime of
steel finishing line and quality of output . Arthur
(1994) found the adoption of a commitment
system had lower turnover and scrap rates and
higher productivity in steel mini mills and
MacDuffie (1995) found that clusters of internally
consistent HRM practices were associated with
higher productivity and quality in the automotive
industry.
Difficulties in determining the validity of the
universalist propositions arise in regard to whether
sufficient evidence exists to conclude there is one
best way. To date, the literature on best practice
HRM is characterised by the shortcoming that
essentially no two studies measure HRM practices in
the same way (Delaney and Huselid, 1996). For
instance, Arthurs (1994) high performance HR
system, which he termed a commitment system,
specifies a low emphasis on variable pay, whereas
the high performance systems of Huselid (1995) and
MacDuffie (1995) placed importance on variable
pay. The study scope varies, for example, Arthur
(1994) uses social aspects in the organization as an
independent variable, but it has not been employed
as a variable in other studies. An alternative
approach, posited by the contingency theorists, is
that no practice or system is superior in isolation,
rather there is an interaction between a firms
strategic intentions and its HR system such that if
they fit with one another it will result in a
competitive advantage (Delery and Doty, 1996;
Hendry and Pettigrew 1990).
The fundamental argument of the contingency
perspective is that where an organisations HR
practices and overall system are responsive to
external factors, superior firm performance will
result. Contingency theorists have proposed that in
order to be effective, an organisations HR practices
must be consistent with other aspects of the
organization. Wood (1999) describes this type of
consistency as the fit between the HR system and the
HR practices context. Various research approaches
have been taken to test the theory. One of the earlier
approaches was to examine how a number of HR
practices are consistent with different strategic
positions and relate these practices to firms
performance (Schuler and Jackson 1987; Miles and
Snow 1984; Gomez-Mejia and Balkin 1992). In
more recent years attention has turned towards
configurations of HR practices examining their
influence on aligning the goals of the organisation
with those of its employees, and assessing whether
or not this leads to higher performance (Youndt et al

1996; Huselid 1995; Venkatraman 1989).
One stream of research within the contingency
mould has concentrated on the interaction between a
firms strategy and its HR practices and has been
notably limited in the extent of its characterisation of
strategy. Researchers selected broad, academic
typifications of strategic direction and then
examined the fit of HRM practices to the particular
strategy. Porters (1985) identification of strategies
(cost minimization, quality, innovation) formed the
basis for the comparatively well known research of
Jackson and Schuler (1987) and Huselid (1995). A
similar framework was adopted more recently by
Hoque (1999) in a study of service businesses.
Another common framework that has been utilised is
Miles and Snows (1978) identification of three
main strategies prospector, defender and analyser
which they stated in a later publication has
implications for an organisations HR practices and
system (Miles and Snow, 1984). These typifications
tend to conceptualise strategy in a top-down manner
whereby strategy directs or should direct the
formation of HR practices and system to reflect the
competitive, strategic intent of the organisation. To
illustrate, Delery and Doty (1996) found those banks
that employed a prospector competitive strategy
involving high innovation found success in
implementing
results-oriented
performance
appraisals but obtained lower levels of employee
participation. In contrast, the banks that were
attempting to maintain a defender strategy were
more successful by relying less on results-oriented
appraisals and giving employees higher levels of
participation in the firm.
In another stream of research within the contingency
perspective,
interest
has
moved
towards
investigating the internal fit between various HRM
practices. Barney (1995: 56) has argued that
individual practices, have limited ability to generate
competitive advantage in isolation of other
complementary practices. They conjecture that
more effective systems of HRM practices, which
employ the potential for complementarities or
synergies among such practices and help to
implement a firms competitive strategy, are sources
of sustained competitive advantage (Purcell 1999;
Huselid 1995; Guest 1998).
Interest in
configurations is common to both contingency and
universalist theses for HRM. Arthur (1994), who
found support for the universalist perspective, also
acknowledged the importance of the concept of
congruence, or fit, between diverse sets of
organizational human resource policies and
practices.
The resource-based view of the firm has informed
conceptual debate within the SHRM literature and
has been influential in sustaining interest in what

links might exist between HR practices, business
strategy and competitive advantage. The implicit
assumption of the resource-based view of the firm is
that its current and potential human resources are
important considerations in the development and
execution of the strategic business plan.
A
foundational premise of this theory is that an
organisations human resources are a valuable
source of competitive advantage due to the
difficulties associated with replicating or imitating
unique human behaviours (Becker and Gerhart
1996). These resources and capabilities can be
tangible and intangible and can be based in a range
of human knowledge and skills, HR practices and
organizational systems (Kamoche 1996: 214-216).
Much of the conceptual literature on resource-based
theories of the firm has not yet been empirically
investigated and in some cases simpler behavioural
perspectives have been adopted instead. Following
the contingency approach it has been argued that to
obtain superior performance, a firm must define its
strategic goals and use them to determine what
employee behaviours and attitudes are required and
identify what unique set of HR practices and policies
will elicit those behaviours (Cappelli and Singh
1992). A common assumption of this work is that
successful implementation of business strategy
requires a unique set of HR practices to elicit the
desired employee behaviours and attitudes (Delery
and Doty 1996; Guest 1997). The principle of
equifinality would argue the reverse namely that
there may in fact be a number of configurations of
practices leading to high performance, on the basis
that the same end can be achieved by multiple means
(Arthur 1994: 677). However, in determining the
effects of internal fit of an HR system on
performance, researchers have tended to identify a
foundational HR system to which the other practices
can be fitted and the system then related to the
overall strategic direction of the organisation.
In assessing the validity of best practice and internal
fit approaches, both universalists and contingency
theorists have found evidence supporting their
research propositions, however, not without their
respective limitations. Boxall and Steeneveld (1999)
believe that the downfall of the universalist
argument is that no common understanding has been
established on which HR practices should be
identified as high performance practices (Becker and
Gerhart 1996); a problem which becomes
compounded when cross-cultural issues are
acknowledged (Guest 1997; Wood and Albanese
1995). Similar criticisms can be levelled against the
contingency perspective that by dealing with very
broad categorizations of strategy it is applicable to a
range of firms within a particular industry or market
and therefore actually has comparatively little to say

about unique sources of competitive advantage.
Looked at another way, Hoque (1999) has argued
that the effectiveness of HRM may be contingent
upon its alignment with a firms strategy, but if all
firms are experiencing pressure from the external
marketplace to adopt flexible, quality and innovative
strategies, then an HRM approach will be
universally relevant. The universal relevance of
high performance HRM systems may also be
dependent upon the nature of the industry product
market. Guest (1987) and Walton (1985) support
Hoques view by asserting that many organizations
have to operate within uncertain environments.
Such environment often demand higher quality
goods and services, arguably requiring firms to
adopt more innovative HR practices that enhance
employee flexibility, adaptability and commitment
to the firm. Thus more uncertain environments may
over time lead to the HRM gaining universal
relevance. This does not reduce the necessity for
more research into the viability of the strategic
contingency approach, as Lengnick-Hall and
Lengnick-Hall (1998) note there is insufficient
empirical evidence to show how strategic HR
practices
directly
influence
organizational
performance or competitive advantage.
The best practice argument proposes the existence of
a model of universally applicable HR practices that
yield superior organization.
Whereas, the
contingency argument implies that internal fit
should exist between the internal environment for
example, top management, strategy, organizations
structure and systems, technology, organization
culture and HR system. It also proposes further
that there should be evidence for a degree of external
fit whereby the organisations capabilities relate
appropriately to the demands of the external
environment. The central research question being
considered in this paper concerns the relevance of
best practice and contingency models for
professional service firms from traditional
professions. Mainstream approaches within the
universalist and contingency debate are based on
assumptions emanating from corporate company
models of business strategy and HRM. Our overall
research question therefore is: To what extent are the
recent normative concepts of formal business
strategy and explicit human resource policies &
practices relevant to an understanding of high
performance HRM systems in professional service
firms?
Methodology
The purpose of the exploratory study is to
investigate the extent to which best practice and
contingent human resource management systems are
evident in the interpretive scheme of employees and

the systems and structure of professional service
firms. Two specific research propositions have been
devised to inform investigation of best fit and
contingent HR systems. For reasons of space the
results are not yet reported in detail within this
paper.
1. Professionals in professional service firms will
implement either best practice or contingent human
resource systems only when there are a group of
partners committed to management methods of
organisation.
2. Implementation of best practice and contingent
human resource management structure and systems
in the professional firm will be extensive and
enduring whenever it is a norm observed by the
profession. Our research is exploratory based on
case study of two professional service firms.
Partners in offices of the two Australian law firms
were interviewed individually and partnership
documents studied concerning business strategy and
HR policies and practices. Interviews were held in
the firm over a one year period with partners,
professionals and support staff. This paper reports
the results of preliminary research prior to
conducting the empirical study and examines the
evidence for best practice and contingent HR in a
PhD research study on Australian law firms written
by the third author for this paper (Gray, 1999).
Consistent with the advice of Hinings and
Greenwood (1988) for research on organisational
change, two were selected that were undergoing
significant organisational change. A choice is
necessary, they have argued, if the research is to
gain insight into the organizing mode; firms
undergoing change will either reinforce the existing
mode or strategically choose a new one. In this
paper, we re-examine the PhD case study data to
determine the evidence for strategic human resource
management in two organizations the former having
to react to a changed position in one of its major
legal markets (personal injury) and the other
growing rapidly through referral of highly profitable
work from major corporate clients. Data reported in
this paper have been restricted for reasons of space
to just two of the firms from the sample of 15
reported in the PhD thesis.
Results
Firm A was established in 1880 and its name
partners can trace lineage to its founders. It has
eleven partners, nineteen solicitors and forty
administrative staff. The decline in the size of the
market for personal injury and the changes in the
nature of industrial relations are most salient to this
firm. It has an outstanding reputation for sound
traditional legal work but its personal injury market
is challenged by a very strong Sydney firm that had,
in a period of six years, gained the major share of
personal injury defendant work and was aggressive

in attempts to gain more. Competitor firms were
adopting cost leadership and aggressive marketing
strategies to which firm A had responded by
emphasizing a professional approach to client
management. Partners emphasised tradition and
courtesy in their dealings with clients, which was
likely to increase costs by requiring their personal
presence and activity on a wider range of tasks than
were being undertaken by competitor firms. The
following account from a partner responsible for
coordinating the firms marketing exemplifies the
professional approach.
Theres a lot of resistance within the partnership,
you know, with partners against the sandwich board
type of people. Were not TV type people and, you
know, a few years ago we said, we dont want to
advertise at all, you know, we should just be known
for who we are. Thats not the way it works
anymore. You know, people were much more
reluctant in those days to steal your client, but
theyve got no compunction at all now. So you
either sit back and sort of let your market just fall
away or you take some steps within, you know, what
you feel comfortable with. But something thats
compatible with your own professional standards
and, you know, just in the way you advertise...
The managing partner was reputed to hold tight
management control over the firm. Management by
consultation and employee involvement was his
espoused approach to human resource management.
He described, what he called, linker groups as
follows:
These are groups like the solicitors, the secretaries
and administrative assistants, the administering staff
and the word processors, so four different groups,
and they meet about every three months or so, its
not as often as wed like, maybe at least three times
a year as groups, and I attend their meetings
initially, for the purpose is for them to have the
opportunity to make any suggestion that they think
they should make about the way in which the firm
should be better conducted. And thats got some
great ideas. I mean, nothing revolutionary but just
little things. And it has two effects. One, we get the
good ideas, 98% of which we act on and, b) it makes
them feel that they are identified with whats going
on here.
The managing partner was an ex officio member of
these groups and, despite his comment on the
significance of involvement; the groups did not
determine matters of much moment. He looked
upon these linker groups and the annual allfirm
retreat as indicators of participative management
by which all members of the firm can communicate
freely.
However, staff members were not
enthusiastic and the minutes of these activities reveal
little of significance. Partners met monthly but

delegated most matters to the managing partner who
controlled the firm. In summary, the systems of the
firm were dominated by the autocratic control of the
managing partner. This person held more equity in
the firm than others and tended to have more weight
than others in major HR decisions such as
performance review and admission to partner.
Firm B had five partners when it first agreed to
participate in the research. By the time the research
commenced it had grown to six partners with seven
legal staff and nine administrative staff. Seven
months later, it had grown to eight partners with an
external partnership offer pending; and had accepted
two additional legal staff at senior levels. The firm
focused upon commercial law for large corporate
clients and was based upon the enormous talents and
networks of its founding partners. This firm can be
summarized as a boutique firm tightly focused on
top end corporate law with two megastars and a
second string of stars who were held in very high
esteem. This type of lawyer was described by one of
the partners of the firm as follows:
See there is a different level to them, they are very,
very bright and sought-after lawyers who can just
look at their diary and name the price and the
clients will pay. You know, those mere mortals
amongst us are subject to greater accountability to
the client.
The firm concentrated on complex, difficult
corporate law, and operated as a professional
partnership priding itself on its informality, respect
of legal traditions and open system of governance.
It obtained significant referral work from large firms
and by virtue of its small size did not provide the
threat of taking the referring firms corporate client.
It operated without formal hierarchy; partners
lunched together most days and had drinks in the
evening prior to leaving the office. There were no
formal partners meetings. Partners espoused the
need to operate as a traditional legal practice. One
described it as their ex post facto strategic
competitive advantage and offered the following
observations:
Ah, the major decisions, and by major decisions I
would say a decision as to where to locate the
practice, a decision as to who to employ in the
practice, a decision as to whether to invite anyone
else to be a partner in the practice, would always be
taken by Jeff and myself and the others. Jeff and
myself, I think sort of running a philosophical issue
about a lot of it, usually in opposite directions, I
have to say, were never, well, we are rarely as one.
And everyone else chiming in.
Reflecting on what he had said, he expounded
further:
Well, its not, yes you can call it a strategy, but its
more of we know nothing else. I think we fell into it.
So thats always been our life. So, yes. I mean, I
think if we had a strategy, if we were to articulate a
strategy, or more precisely if I were to articulate a
strategy, it would be this stay narrow, that is,
corporate commercial, with emphasis on corporate,
but do as much work in the field as you can on as
wide a base as you can so as to provide a base, both
a revenue base and an experience base to grow the
firm, with the partners such as myself and Jeff, in
particular, who want to do so, having the ability to
pick and choose what they do. If I was to articulate
my own strategy, it would be that. ...
During discussion of the tendency of law firms to
become like accountancy and consultancy firms in
adopting a more corporate like management, he
clarified his antipathy towards formalised strategy
and structure:
.. I mean, it sounds stupid to say that, but practicing
law for me is a lifestyle choice, I mean, as well as
paying the groceries, it is a lifestyle choice and if
Im making a lifestyle choice, it is a choice thats
going to suit my comfort zones and my demand for
freedom. A strategy, structuring, those things are
always going to be antithetical.
Firm B had strategically evolved into an organizing
mode of the professional partnership. It was a
boutique firm in a corporate commercial business
market that is dominated by large firms and used its
size and status to attract business. It was values
driven and had the talent, resources, and network
connections to be different than other firms that
focused on corporate, commercial law. Its strategy
was implicit and largely based upon the reputations
of its extremely talented principals.
Discussion
At first sight, following the P2 archetype of the
professional partnership firm defined in 1991 by
Greenwood, Hinings and Brown (see table 1 for its
main elements), these two case firms are very
similar. As inspection of table one below shows,
they both have interpretive schemes dominated by
governance involving fusion of ownership and
control and a primary task emphasizing professional
knowledge, strong links with clients and minimal
hierarchy.
Both firms are low on strategic
rationality, for instance, lacking explicit, formal
strategic plans and their marketing-financial controls
are comparatively simple and short-term in
orientation, emphasizing precise financial targets. In
terms of organization structure, both firms are of
relatively low specialization and integration. One
point of contrast in integration is that firm B places
much greater importance on regular informal contact

and communication than firm A.
Table 1 Strategy and Archetype Characteristics
Element
Governance
Primary Task
Strategic
Control
MarketingFinan
cial Control
Operating
Control
Differentiation
Integration
FIRM A
Equity partners
dominated by
name partners
Strong links with
clients
Low strategic
rationality
Short-term
FIRM B
Equity partners
dominated by
managing partner
Strong links with
clients
Low strategic
rationality
Short-term
Frequent informal
contact
Low
Informal
Control by
managing partner
Low
Low
What distinguishes the two firms is not really

revealed that strongly using the archetype
characteristics. In both firms, the senior partners are
committed to retaining their client business and seek
to do so through traditional professional and
partnership values.
Some of their most
distinguishing features do not come through so
clearly within the archetype framework. One firm
was in a reactive strategic situation, leadership was
by the managing partner who was the major
shareholder and retained tight, formal control of the
firm operating in markets that had become less
profitable and more dominated by cost leadership,
while in the other firm, strategic leadership was
prospective and by two rainmakers practising in the
highly profitable market of commercial law.
Secondly, in terms of HR following the business, it
was evident from the interviews that the morale of
employees was lower in the firm with the defender
strategy and that, while leadership was autocratic in
both, the personal style of the managing partner in
Firm A was not giving employees much autonomy
or motivation. His bureaucratic style did not provide
transparency to the HRM system nor convey a sense
of optimism about future business. HRM in Firm A
was analogous to a beleaguered manufacturing firm
pursuing a defender strategy. In Firm B, the
emphasis on informal communication and
consultation moderated the effects of an autocratic
style of leadership.
Conclusion
Our exploratory investigation of professional service
firms studies formal and informal, explicit and
implicit senses of strategy and HRM. We have
argued on the basis of Grays PhD case study
research that understanding informal and implicit
approaches should be more fruitful than will the
application of corporate concepts of strategy and
HRM to the study of high performance HRM
systems in professional service firms.
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Path models of the relationship between role overload, role ambiguity,

sources of support and emotional exhaustion in women police
Andrea Kirka, David F. Brown b , Briony Thompsonb
a
School of Applied Psychology, Griffith University, Australia

b
School of Business, La Trobe University, Australia
Abstract
Previous research examining relationships between
role overload, role ambiguity, sources of support
and emotional exhaustion has been conducted on
male police officers. However, little research has
examined these relationships in women police. Even
when these relationships have been examined in
women police the referent group has been almost
always male police officers. The present study
structurally models relationships between role
overload, role ambiguity, sources of support and
emotional exhaustion in operational (police) and
non-operational (staff) women in a police service.
The model comparison of these two groups allows
the evaluation of the effects of type of work on the
relationship between role overload, role ambiguity,
sources of support and emotional exhaustion. Path
analyses identified significant direct (positive)
pathways between role overload, role ambiguity and
emotional exhaustion. Direct pathways between role
overload and support variables were not significant.
However, direct (negative) pathways between role
ambiguity and support variables differed according
to work role. Direct negative pathways were
identified for sources of support and emotional
exhaustion. However, the strength of the
relationship between sources of support and
emotional exhaustion for women police appeared
weaker than for women staff. The findings suggest
that an interaction may exist between support
variables, level of emotional exhaustion, and
occupational role.
Keywords
Role Overload; Role Ambiguity; Emotional
Exhaustion; Sources of Support; Women Police
Officers
Introduction
Work place stress has been shown to have a variety
of negative outcomes for the organisation that
include higher rates of employee turnover,
absenteeism, tardiness, and job dissatisfaction (Bull,
1997; Cooper and Marshall, 1976). Employees
working in an emotionally charged environment
may be particularly exposed to stressors and are

vulnerable to emotional burnout (Maslach and
Jackson, 1981). The term burnout is used to
describe a particular type of stress reaction that is
characterised by the individual workers inability to
respond adequately to perceived demands, and it is
usually accompanied by the anticipation of negative
consequences of such inadequate responses
(Wallace and Brinkerhoff, 1991). Emotional
exhaustion,
depersonalisation
and
personal
accomplishment are seen as the three components of
burnout (Lee and Ashforth, 1990; 1996). Emotional
exhaustion is considered the core symptom of
burnout, and is the component most responsive to
stressors in the work environment (Barber and Iwai,
1996; Shirom, 1989).
Police work is considered to be emotionally
charged and has been ranked among the top five
most stressful occupations (Dantzer, 1987). Recent
studies of paramilitary organisations, such as the
police service, have identified a number of possible
sources of stress within the organisation (Hotchkiss,
1992; Christie, 1994; Kelly, 1995). However, much
of the research on this occupational subgroup has
centred on male officers. Few studies have
investigated differential sources of stress related to
women police officers, who may experience
qualitatively different sources of stress from those
experienced by male police (Brown and Fielding,
1993). Kelly (1995) concluded from focus groups
with over 200 women police that they experienced
difficulties with access to a variety of policing roles,
and that gender-based stereotypes influenced the
way that policing roles were allocated. These
findings contrast to those of Hotchkiss (1992) who
found that only 6.6% of the sample of 50 women
police reported work role restrictions.
Thompson (1996) has argued that men and women
experience the work-family interface differently,
with women being more susceptible to role overload
and work-family conflict. A qualitative study of
women police conducted by Thompson, Kirk-Brown
and Brown (1998) identified role overload and role
ambiguity as frequent sources of stress. Kelly (1995)
also noted that work loads, and work rosters
presented difficulties for women police with

families. Previous research has found that women,
when compared to men, demonstrate a higher
correlation between the number of hours spent in a
role (work or family) and conflict originating in that
role (Gutek, Searle and Klepa (1991).
There is some evidence that women may use as a
coping mechanism sources of work place support
that differ from those used by men. Etzion (1984)
found that for men support in the work place
moderated the relationship between work stress and
burnout, whereas for women, life support (outside
the work place) was the significant moderator. The
study by Alexander and Walker (1994) found
women officers were more likely than men to talk
things over with family and friends; males were
likely to keep things to themselves. In this study, the
most salient coping factor in relation to work place
stressors was social support. However, in the study
of women police conducted by Thompson et al.
(1998), the women police reported that they did not
seek support from outside the workplace by talking
with friends and family about work, due to the
nature of police work.
A variety of factors in the work environment have
been identified as possible stressors (Cooper, 1987).
These factors include sources of stress related to the
employees role in the organisation. Factors such as
role overload and role ambiguity have been shown
to be associated with measures of strain and stress
(Decker and Borgen, 1993; Stout and Posner, 1984).
Further sources of stress may involve relationships
with supervisors and coworkers (Parker and
DeCotiis, 1983). Role ambiguity, in particular, has
been found to be significantly correlated with
emotional exhaustion (Bhana and Haffejee, 1996;
Bedini, Williams and Thompson, 1995; Siefert,
Jayaratne and Chess, 1991).
In consideration of the research cited, the aim in the
present study of women police was to examine
structural relationships between role overload, role
ambiguity, sources of support, and emotional
burnout. The present research uses quantitative
methods to further examine the findings of the
previous qualitative study of women police
conducted by Thompson et al. (1998). Consequently,
it was hypothesised that for women police role
stressors may have both direct and indirect effects
on emotional exhaustion by operating through social
support mechanisms. Due to the findings of the
qualitative study that indicated that the nature of
police work might be related to the type of support
utilised, the present study examined whether sources
of support vary according to occupational role. Path
models of the hypothesised relationships were tested
separately for women police, and a referent group of
women in the same organisation. By using a referent
group of women working in the same organisation,

but in non-operational roles, the present design held
gender constant but varied work roles.
Methodology
Subjects and Procedure
A self-report survey containing each of the scales
used was forwarded through the organisations
internal mail system to all women police
(operational, n= 1081), and a randomly chosen 50%
of the female non- operational (staff) employees
(n=865) of the Australian police service sampled.
The employment characteristics of the sample
groups are given in Table 1.
For the women police the return rate was 40%
(n=421), and for the women staff the return rate was
44% (n=381). Due to a variety of organisational
factors (i.e. transfers to new locations) a number of
questionnaires were undelivered and returned to the
authors. Therefore, the actual return rates are slightly
higher than those reported.
Table 1 Sample Characteristics of Police Group
Police Groups
Classification
Frequency
Recruit
13
Constable
239
Senior Constable
107
Sergeant/Senior Sergeant
56
Commissioned Officer
5
Not Reported
1
Total Responses
421
Staff Groups
Classification
Frequency
Staff Administration Officer
326
Professional Officer
23
Technical Officer
4
Operations Officer
27
Not Reported
1
Total Responses
381
Percent
3.1
56.8
25.4
13.3
1.2
.2
100
Percent
85.5
6
1
7.1
.2
100
Measures
The survey included demographic data relevant to
operational and non-operational work roles, and
questionnaires measuring perceived role overload,
role ambiguity, levels of social support from
supervisor, coworkers, and degree of perceived
emotional exhaustion.
Measures of role ambiguity (alpha=0.78) and role
overload (alpha = 0.83) were taken from the OSI
(Osipow and Spokane, 1981). The ten item role
overload scale has a reported internal reliability of
a=0.83, and the ten item role ambiguity scale a
reliability of a=0.78. Supervisor and coworker
support scales were taken from The Social Support
Measures used by Ray and Miller (1994). The six
item supervisor support scale has a reported
reliability of a=0.92. The six item coworker support

scale has a reported reliability of a=.90. Social
emotional exhaustion was measured by the
Emotional Exhaustion Scale (Ray and Miller, 1994).
This eight item scale has a reported reliability of
a=0.85. The social support and the emotional
exhaustion measures were scored over a five point
Likert scale from strongly disagree to strongly agree.
The role overload and ambiguity measures were
score over a five point scale from rarely or never
true to true most of the time.
Results
Measurement Models
In order to test the construct validity, and improve
the measurement properties of the scales, one-factor
congeneric measurement models for each of the
scales were tested. These analyses entail the
estimation of reliability and error variances of the
measurement models for each of the scales. Onefactor congeneric models (Joreskog and Sorbom,
1989) allow a large number of observed variables to
be reduced to a single composite scale which takes
into account the unique contribution of each item.
Through the use of one-factor congeneric models a
set of observed indicator variables are regressed on a
single latent variable (Holmes-Smith and Rowe,
1994). In addition to other fit statistics, LISREL
generates a coefficient of determination which
indicates the degree to which the observed variables
measure the latent variable.
Table 2 One factor congeneric model fit indices for
each of the scales used in the path analyses
Coeff of
Determination
Goodness
of fit
Adjusted
Goodness
of fit
Root
Mean
Square
Resid
Role
Overload
.90
.95
.91
.05
Role
Ambiguity
.84
.87
.80
.08
Supervisor
Support
.94
.88
.72
.03
Coworker
Support
.93
.90
.78
.03
Emotional
Exhaustion
.94
.88
.78
.05
Scale
of-fit, and root mean square residual. The results of

these analyses are illustrated in Table 2. It can be
seen in Tables 2 that the goodness of fit statistics
indicate that each of the models demonstrated good
overall fit.
Path Analyses
The analyses consisted of a series of tests of onefactor congeneric measurement models for each of
the scales followed by separate path analyses for
each of the police and staff groups. The
measurement model stage entailed the estimation of
reliability and error variances for each of the scales.
The structural equations defined in the path analyses
provide the path coefficients between variables, and
proportion of explained variance for each of the
models.
Following the derivation of one-factor congeneric
models for each scale, composite scores can be
computed for each scale by multiplying each item
raw score with its associated factor score regression
(Holmes-Smith and Rowe, 1994). The composite
scores for each scale, derived from the one-factor
congeneric models, provide the measures to be
entered into the path analyses (Holmes-Smith and
Rowe, 1994). LISREL was used to generate the path
coefficients associated with the pathways tested in
each model (Joreskog and Sorbom, 1988). The
procedure used followed that recommended by
Holmes-Smith and Rowe (1994). The statistic
provided by LISREL, to evaluate the overall
significance of the path model, is the coefficient of
determination.
PRELIS was used to generate correlation matrices
for the composite scores for each scale for the police
and staff groups. The correlation matrices for each
group were then entered into LISREL and the path
analyses conducted according to the procedure
recommended by Joreskog and Sorbom (988). The
correlation matrices for each group are illustrated in
Tables 3 and 4.
Table 3 Correlation Matrix for the Police Group
A one-factor congeneric model was tested for each

of the scales using the procedure recommended by
Holmes-Smith and Rowe (1994). PRELIS was used
to generate matrices of polychloric correlations for
each measurement scale. These matrices were then
used to estimate and test a one-factor congeneric
model for each of the scales. The statistics used to
evaluate model fit were the coefficient of
determination, goodness-of-fit, adjusted goodness-
Scale
RO
RA
SP
CW
.219
RA
-.202
-.207
SP
-.030
-.048
.163
CW
.483
.274
-.274
-.142
EE
Code : RO=role overload; RA=role ambiguity; SP=supervisor
support; CW=coworker support; EE=emotional exhaustion.
Table 4 Correlation Matrix for the Staff Group

Scale
RO
RA
SP
CW
.297
RA
-.173
-.377
SP
-.248
-.306
.295
CW
.455
.299
-.301
-.347
EE
*p<.05
Figure 2 Path Model for the Staff Group Note:
*p<.05
Table 5 Significance and t-values for each of the
paths
Path
Police Model
t value
10.32*
4.11*
-1.28
-4.25*
1.11
0.28
-3.46*
-2.40*
Staff Model
t-value
8.54*
3.81*
0.36
-6.42*
-1.39
-3.06*
-4.02*
-4.04*
RO
EE
RA
EE
RO
SP
RA
SP
RO
CW
RA
CW
SP
EE
CW
EE
Total Coefficient of
Determination for
.30
.34
Structural Equation
*=significant path P <.05.
The path models for each group are illustrated in

Figures 1 and 2. The t-values for the path
coefficients and the coefficients of determination for
each model are illustrated in Table 5.
ROLE
OVERLOAD
.440*
-.150
-.020
SUPERVISOR
SUPPORT
-.185*
EMOTIONAL
EXHAUSTION
-.237*
CO-WORKER
SUPPORT
-.163*
-.044
ROLE
AMBUGUITY
.177*
Figure 1 Path Model for the Police Group Note:
ROLE
OVERLOAD
.402*
-.067
-.173
SUPERVISOR
SUPPORT
-.214*
EMOTIONAL
EXHAUSTION
-.358*
CO-WORKER
SUPPORT
-.255*
ROLE
AMBUGUITY
.179*
-.252*
Discussion
The path coefficients for both groups of employees
demonstrate that both role overload and role
ambiguity had direct and significant effects on
emotional exhaustion. In addition, social support is
significantly related to emotional exhaustion, with
increased levels of support related to reduced
emotional exhaustion. There were no significant
indirect effects for either role overload or role
ambiguity through any of the social support
constructs for either model. The significant positive
relationships between the role stressors and
emotional exhaustion are consistent with previous
research (Decker and Borgen, 1993; Stout and
Posner, 1984; Bedini, Williams and Thompson,
1995; Siefert, Jayaratne and Chess, 1991).
The differences found between the models support
the proposition that the type of role affects the
salience and efficacy of different sources of support.
For women police and female staff, sources of
support were significantly related to emotional
exhaustion. However, the path coefficients for the
direct relationship between support variables and
emotional exhaustion were weaker in the police
model. This finding suggests that sources of support
utilised may interact with the nature of the work.
Role overload was not significantly related to the
sources of support for police or staff, but
demonstrated a direct significant relationship with
emotional exhaustion. In Kellys (1995) study,
women police reported a variety of concerns with
unequal sharing of work loads, and restrictions
placed on flexible work hours.
Differences in pathways for the police and staff
models were evident in the relationships between
role ambiguity and coworker support. The
significant pathway between role ambiguity and
coworker support evident in the staff model was not
evident in the police group. In the presence of role
ambiguity, female staff appear to utilise both
supervisor and coworker support. However, in the
presence of role ambiguity, women police appear to
utilise only supervisor support. These findings again
suggest that type of support is related to the nature
of the differences between the operational role of
women police compared to the non-operational role
of female staff. Complex intra-organisational
relationships between women police, colleagues, and
non-operation staff were also identified by Kelly
(1995). In Kellys study, women police reported
difficulties in developing effective work-related
relationships with male colleagues and with female
non-operational staff.
Conclusions
In conclusion, it appears that higher levels of role
overload and of role ambiguity lead to higher levels
of emotional exhaustion in both women police and
non-operational female staff. However, the degree to
which social support is utilised as a buffer to these
effects differs in these work groups. The quantitative
findings of the present study are supported by earlier
research by Kelly (1995) who also identified
complex relationships between sources of support
and work roles. In the light of the present findings,
future research should consider the interactive
effects between work roles and the effects of sources
of support on emotional exhaustion.
Acknowledgements
The authors appreciate the support and cooperation
of the Queensland Police Service in carrying out this
research. This support does not suggest that the
Queensland Police Service endorses the research or
its findings, and responsibility for any errors of
omission or commission rest solely with the authors.
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Re-theorising the university as an unfamiliar culture: Consequences

and responses for the increasing diversity of the student body
Jill Lawrence
Faculty of Arts/ Student Services, University of Southern Queensland
Abstract
There is a recurrent theme woven through the
literature documenting the experiences of the
increasing number of students accessing and
participating at university: that of deficit in dealing
with diversity and difference. Inherent is the
assumption that there is one mainstream discourse
and that languages and literacies that are different
from those of the mainstream represent a deficit or a
deficiency on the part of students who do not possess
them. This paper will argue that such deficit
approaches are not helpful for the increasing
diversity of students attempting to access,
participate and succeed at university. It will present
an alternative approach by arguing that a successful
transition to university intrinsically involves gaining
familiarity with, engaging, negotiating and
mastering the often unfamiliar discourses and
multiliteracies of the university culture. The paper
will also explore the responses to this retheorisation - both for the university and its
practices and for the diversity of students
negotiating their transition to it.
Keywords
Culture; Diversity; University Transition
Introduction
This paper will argue that the university constitutes a
new and an unfamiliar culture for the increasing
numbers and diversity of students attempting to
access it. This unfamiliarity stems principally from
its discourses the very discourses the students are
expected to possess and to demonstrate if they are to
participate and succeed. The notion and application
of the role of discourses however defies traditional
theory and practice. Woven throughout the literature
documenting the experiences of students accessing
and participating at university, for example, is a
recurrent theme: that correlating diversity and
difference with deficit. This paper will contend that
such approaches are not helpful for students entering
university. Firstly the contextual and theoretical
contexts will be assembled to establish the potency
and applicability of the role of discourses, or
multiliteracies, in the university context. These
theoretical contexts make possible, even imperative,

a re-theorisation of the transition to university. They
also reveal the limitations of assumptions of deficit
currently underpinning many of the approaches to
dealing with diversity, a consequence of the elitemass paradigm shift that has occurred in higher
education in Australia since the 1980s. The paper
will also explore the responses of this re-theorisation
- for both the university and for the students
negotiating their transition to it.
The Higher Education Context

The move from elite to mass education in Australia
saw rapid growth in both student participation and
diversity (Williams 1993; Meek 1994; DEET 1995;
McInnis and James 1995; Beasley 1997). During the
1980s, for example, participation rates increased
more than 50% in eight years (Williams, Long,
Carpenter and Hayden 1993:3). This rapid growth
provided consequences both for the accessibility of
higher education and for its identity. Until the 1980s
it had served an intellectual and social elite (Atkins
and White 1994:46). Until then, Anderson (1992:9)
argued, the majority of the population saw
secondary education as the single best means of
advancing their life chances or at least the life
chances of their children. However this was replaced
with the perception that a majority of the young
population not only aspired to, but also
acknowledged that they required university
education to achieve their life choices. Williams et al
(1993:3) argued that the changing demographic,
social, economic and academic make-up of the
populations of higher education entrants irrevocably
changed the nature and aims of higher education in
Australia. McInnis and James (1995:ix) further
contended that the expansion of participation
increased the critical mass of identifiable subgroups
that were formally significantly under-represented.
One of the responses emanating from the increasing
diversity was a corresponding and burgeoning
interest in educational equity. This culminated in the
document A Fair Chance for All: Higher Education
Thats in Everyones Reach (DEET 1990), which
provided a national and specific action framework
for educational equity. It identified six
disadvantaged groups including low socio-economic

status students, students with disability, women,
aboriginal and Torres Strait Islander people, rural
and isolated students and students from non English
speaking backgrounds. The original thrust of the
framework emphasised increasing access and
participation but was extended to include the
improved retention, progression and success of these
groups within the system. Postle Clarke, Skuja, Bull,
Barorowicz and McCann (1997:2) argued that the
aim articulated was for access with success for the
targeted groups leading to a student profile, which
more fully reflected the diversity of Australian
society.
How well have these initiatives succeeded? Postle et
al (1997) also evaluated the status of educational
equity in the Australian higher education sector.
Their NBEET funded study, Towards Excellence in
Diversity, found that within the existing framework,
a clear trend is the lack of progress of the socioeconomically disadvantaged and people from rural
and geographically isolated areas (Postle et al
1997:xii). By noting that the educational
disadvantage of these groups was generally well
appreciated, their study also flagged the
corresponding and burgeoning interest in the reasons
for such disadvantage. This research, particularly the
strand stemming from the critical domain, is
significant in that it identifies and demonstrates the
lack of familiarity some groups have with university
culture. Marginson (1997) and Postle et al (1997),
for example, argue that the experiences, beliefs and
values of some groups marginalize them from the
mainstream
university
discourses.
These
characteristics include the consequences of social
positioning, for example a de-valuing of education
and the benefits of education, and a lack of private
schooling. Not only are measures of merit for the
purposes of admission to university, for example,
weighted heavily in favour of private schools but
these schools prepare their students to be more
familiar with university discourses, have higher
expectations for their students and offer role models
who are more in tune with university discourses
(Jamrozik 1991 and Beasley 1997). Commentators
have also noted the lack of cultural familiarity
displayed by the diversity of students attempting to
access the new university culture (Williams 1987;
Connell 1994; Moodie 1995; Dearn 1996 and Postle
et al 1997). Beasley (1997:p.29) argued universities
have cultural values and norms to which new
students must adjust, and students come with their
own unique but varied cultural values. Students
themselves verbalise this notion; its a society
which is totally different from what most of us are
used to (cited in Beasley 1997:182).
Postle et al (1997) contended, however, that finding
strategies to address the disadvantage remained
problematic. Postle, Taylor, Bull, Hallinan, Newby,

Protheroe, and James (1996), for example, argued
that there have been few studies completed in
Australia dealing specifically with the needs of the
range of students now accessing tertiary education.
Further, these have approached the problem from a
curriculum or pedagogical orientation. There are
also very few studies utilising a theoretical
perspective. Positioning the debates within a
theoretical context, however, might present alternate
ways of conceptualising the experiences of students
participating at university.
The Theoretical Contexts

This section assembles several theories which are
used to position the students experiences as they
negotiate their transition to university. These
theoretical insights facilitate a re-thinking of the
transition to university, providing the grounds, the
rationale and the impetus for its re-theorisation as a
process: a process which intrinsically involves the
negotiation and mastery of the discourses and
multiliteracies of an often unfamiliar university
culture. Three theoretical frames are assembled:
postmodernism, poststructuralism and critical
theory. Each illuminates a focus contributing to the
re-theorisation of transition.
Postmodern Themes and Contributions
The postmodern frame, for example, with its
questioning of universality and meta-narratives, its
focus on viewing reality and knowledge as socially
constructed, its relevance for understanding the lived
experiences of individuals in local situations, and its
recognition of the role of story telling, of
narrativisation, provides a backdrop against which it
is possible to position the experiences of students. It
is also a frame that allows the assumptions
underlying arguments to be revealed and overturned.
This rethinking of assumptions opens a space for
previously unconsidered alternatives, which
themselves are left open to multiple interpretations
and uses rather than being shut down again or
refrozen (Hatch 1997:366). Used in this way the
postmodern perspective is a means to overcome
domination by a singular perspective or idea, with
the focus shifting to one which renders the
consideration of alternative ways of knowing a
matter of public discourse (Hatch 1997).
The notion of culture, in particular, is revitalised by
postmodernism. The rootedness of human activity
and language in their cultural and social contexts is,
for example, explicitly acknowledged, with culture
seen as a determining and not just a determined part
of social activity (OSullivan et al 1994). Geetz
(1973) asserted that there is no such thing as a
human nature that is independent of culture. Collins
(1989) went further and argued that, implicitly and
explicitly, culture had become discourse-sensitive.
He contended that how culture is conceptualised

depends upon discourses. Culture is understood to
encapsulate a way of knowing and, implicit, are
other, or alternate, ways of knowing (Inayatullah
2000). The notions of cultural difference and the
acceptance of difference thus become important. The
New London Group (1996:88), for example, saw
that the recognition of cultural differences was
critical in education:
Teaching and curriculum have to engage with
students own experiences and discourses, which
are increasingly defined by cultural and subcultural diversity and the different language
backgrounds and practices that come with this
diversity.
Poststructural Themes and Contributions
The poststructuralist frame provides a lens through
which to view the role of language and discourse.
Language is seen to constitute reality, with each
language constructing specific aspects of reality in
their own way. The focus, then, shifts to the
linguistic and social construction of reality, to the
interpretation and negotiation of the meaning of the
lived world (Kvale 1995:21). Poststructuralism also
encourages an investigation of the ways in which
subjects are constituted and reconstituted through
discourse. It is a frame which emphasises the telling
of stories about equity and literacy - the production
of a variety of texts exploring the connections
between language and education and, for example,
the construction of a means of succeeding for new
students. It makes possible a new signifying space
from which to pose and debate several key
questions. For example questions relating to how the
stories of our culture become the facts we learn:
how to address inequalities of language
opportunities in terms of access, space and power
(see for example Bourdieu 1990 and Muspratt, Luke
and Freebody 1997). Discourses provide different
stories through which to read language practice.
They make it possible to change the stories used as
classroom resources but also the stories students
might build and construct to position themselves
differently. The poststructuralist view, with its
capacity to identify and reinforce the salience of
language and discourse, helps to re-position the
students experiences as they adjust to a new
university culture.
Critical Themes and Contributions
The experiences of new students are further framed
by the understandings provided by critical theory.
Critical theory contends that language use, discourse
and communication should be studied in their social,
cultural and political contexts. A critical orientation,
for example, can specifically identify and reveal the
discursive practices that have hitherto constituted
barriers for these groups of students. A critical
orientation is also valuable in that it not only enables
and encourages social and critical awareness of these

practices but is also able to facilitate and promote
practice for change (Van Dyjk 1995; Fairclough
1995). Educational practices, developed for example
in university contexts, serve then to constitute
selections of practices, and these selections are not
accidental, random, or idiosyncratic (Muspratt, Luke
and Freebody 1997). So it should not be surprising
that a good deal of institutional effort is put into
making these materials and activities appear
natural and essential characteristics of literacy.
Muspratt, Luke and Freebody (1997:192)
additionally argued:
In that sense at least literacy education and
research about it can be viewed as political in
that each entails choices among theories and
methodologies that afford or reinforce radically
different competencies and ways of engaging in
social experience, all of which have significant
material consequences for learners, communities
and institutions.
Critical Discourse Analysis (CDA) emerged as that
domain of study unveiling, in particular, the role of
discourse in constructing and maintaining
dominance and inequality in society, providing
insight into the fact that not only is language socially
shaped, but that it is also socially shaping or
constitutive (Fairclough 1995: 132). CDA
specifically however establishes the grounds for
rethinking as discourse, pedagogical practices and
outcomes. It identifies, focuses on and analyses, for
example, the importance of the role of discourse in
educational practice (Luke 1999). If the primacy of
discourse is acknowledged then it is possible to
support the argument that mastery of discourse can
be seen to constitute a principal educational process
and outcome.
Critical theory identifies, then, the primacy of the
role of discourse in educational practice and its
impact on students abilities to persevere and
succeed in the new culture. Such a theoretical
orientation has the capacity to identify and reveal the
prevalent and dominant discourses and the ways in
which those discourses might not only be unfamiliar
but which might also operate to marginalize
students. Its application re-conceptualises their
transition as gaining familiarity with and, ultimately
mastery, of its unfamiliar discourses and provides
the basis for the responses to this re-theorisation
developed later in the paper. Firstly, however the
paper will document the limitations of the
assumptions of deficit which underpin many of the
responses to diversity.
The Limitations of the Deficit Approaches
In the last decade there has been a proliferation in
the higher education literature documenting the
difficulties faced by the diversity of first year
students as they navigate their transition to the

unfamiliar university culture. See, for example,
Marginson (1993), McInnis and James (1995),
Dearn (1996), Cartwright and Noone (1996), Lee
(1996), Postle et al (1996) and Beasley (1997).
There were also a number of studies which are often
referred to by those who wished to support claims
for particular programs or services for these
students. Postle et al (1996) argued that this
literature has explored the difficulties from two main
research focuses. The first concentrated on the
determination of socially or culturally inappropriate
curricular and teaching methods: how programs and
services might be more responsive to the cultural
academic needs of students (see for example
NBEET 1995). Other examples involved changes to
curriculum and teaching approaches to better match
the needs and backgrounds of the students.
Cartwright and Noone (1996), Crouch (1996) and
Lee (1996) represent researchers who, for example,
approached the question by arguing that the
development of a cogent pedagogy is necessary if
students are to succeed in higher education.
The second attempted to understand how programs
and services could assist students to better adapt to
the demands of university education (Beasley 1997).
According to Postle et al (1996) these studies
proceeded from the assumption that difficulties and
problems could be explained in terms of student
deficits or deficiencies. The answer, these studies
argued, lies in moulding the student to fit the
institution; in the determination of pre-requisite
knowledge and skills necessary for success such as
those targeted by literacy, preparatory and enabling
programs. While these approaches help students
adjust to university requirements and demands, they
do not question their underlying assumptions. For
example, a number of studies found that, while most
staff in tertiary institutions acknowledged the
benefits of having the diversity of students entering
courses at their institution (altruism, social justice,
student diversity) they demonstrated little
knowledge about these students (Postle et al 1996
and Beasley 1997). Postle et als (1996) study, for
example, revealed that the staff interviewed believed
that these students should be treated no differently
from other students and that existing academic
support mechanisms should be resourced to provide
any remediation that was deemed necessary. That
the staff gave very little support and credence to
value added teaching as an indicator of good
teaching involving these students also reinforced the
ascendancy of the deficit approaches to dealing with
diversity. As well, such attitudes reinforced the
unquestioned and unchallenged dominance of the
mainstream elite discourses resonating through
them. That the university culture is comprised not
only of multiple discourses but also multiple cultural
groupings, for example multiple staff and student
cultures, exacerbates the situation for students

attempting to engage them and successfully
participate.
The New London Group (1996:72) argued in fact
that such deficit approaches involved writing over
the existing subjectivities with the language of the
dominant culture. They were representative of
models of pedagogy that had emerged from the idea
that cultures and languages other than those of the
mainstream represented a deficiency, a shortcoming,
a deficit. The deficit approach therefore not only
reflects a lack of questioning of the dominant elite
or mainstream discourse but, further, it denies the
implications provided by the existence as well as the
potency of the concept of multiple discourses and
literacies. It also demonstrates the lack of challenge
directed towards long-held assumptions held about
the nature, characteristics and abilities of the
typical university student in the early stages of the
twenty first century. The tensions inherent in the
contrast between lecturers perceptions of the elite
student and the actual student, particularly those
typically attending rural and provincial universities,
remain also largely unexplored.
According to The New London Group (1996) the
multiplicity of communications channels and
increasing cultural and linguistic diversity in the
world today called for a much wider view of
pedagogy and literacy than portrayed by traditional
approaches like the deficit approach. The New
London Group recognised that there existed real
deficits (such as a lack of access to social power,
wealth, and the symbols of recognition). However,
they also contended that the role of pedagogy was to
develop an epistemology of pluralism that provides
access without people having to erase or leave
behind different subjectivities (p.72). In response
they developed the notion of multiliteracies,
widening the definition of literacy pedagogy to
include the negotiation of a multiplicity of
discourses. This, they saw as encompassing the
objective of creating the learning conditions for full
social participation, where the issue of differences
becomes critically important (p.61). But, they also
asked, how then do we ensure that differences of
culture, language, and gender do not constitute
barriers to educational success? The question of
differences, of diversity, and how best to respond to
them, is pivotal. According to this group the use of a
multiliteracy approach to pedagogy enables students
to achieve two goals: that of creating access to the
evolving language of work, power and community,
and that of fostering the critical engagement
necessary for students to achieve success. The
notion of multiliteracies, they argued, overcomes
the limitations of traditional approaches by
emphasising how negotiating the multiple linguistic
and cultural differences in our society is central to
the pragmatics of the working, civic, and private
lives of students (The New London Group

1996:60).
Responses to Re-theorising Transition

University Responses
The re-theorisation of university transition
necessarily demands responses. A possible first
response is to challenge to the university and its
practices. Such a challenge could result in a shift in
focus from the deficit view to one which takes into
account the familiarity, or lack of familiarity, with
the culture and its discourses and multiliteracies.
This would then raise a number of questions about
the nature of university practices. For example the
potential blame that is attached to students, who
are considered deficient, inadequate or underprepared by teaching staff immersed in the
dominant elite discourse, can be questioned. Such
teaching practices can be challenged by the
recognition that part of the responsibility must lie
with the academics themselves, in particular in
relation to their roles as educators, as
communicators. In fulfilling these roles it becomes
the responsibility of the academic to make their
discourses explicit. To not only explain and make
clear the rules, but also to make explicit the hidden
agendas, the covert or hidden curriculum, the
implicit expectations as well as the expected (but not
stated) behaviours intrinsic to achieving success in
their discipline (Benn 2000). This involves the
recognition that the key to teaching/learning is the
process, rather than the content: that retention
relies in part on what the academic does in the
classroom, as a professional educator.
Educational theory supports these practices. Friere
(1972), for example, speaks of the centrality of
dialogic education to the purposes of the university,
a collegial and egalitarian approach to education in
which productive dialogue, sustained critique and
participation is maintained between members of the
community. This notion of dialogic interaction
assumes more prominence if interwoven against
Gees notion of multiple discourses. Gee (1997),
from both a cultural and a cognitive perspective,
argued for a juxtaposition of differences in such a
way that a commonness could emerge without
obliterating the differences as lived and situated
realities. If each child was viewed as a network of
associations formed by his or her socio-cultural
experiences, a network from which specific ways of
knowing the world emerged, then a classroom
should be a network of such networks from which
new, ever variable, and meta-level forms of
knowing emerge. According to Gee (1997:297):
These forms emerge from and transcend diversity
without effacing it in any way, because each
childs own continuing experiences contribute to
the transformation of that common knowledge. A

new Discourse is formed in the classroom.
A classroom with too narrow a spectrum of diversity
is impoverished, because the generalisations that
emerge are too narrow. A classroom utilising the
diversity of its students to make connections,
thereby acknowledges and integrates its cognitive,
social, cultural, and political complexity. The
notions of dialogic education and multiple
discourses and literacies therefore merge to reinforce
the driving impetus of this paper. That a negotiation
of the multiple linguistic and cultural differences of
the university is central to the students abilities to
persevere and succeed in a new, and often
unfamiliar, university environment. An important
thread can therefore be woven into the philosophy of
university teaching. It lies in recognizing,
participating in and facilitating the processes by
which students learn to negotiate and integrate a
number of competing discourses and multiliteracies
- the university, faculty, department and discipline
discourses they are engaging. Mezirow (1991:354),
for example, stated that adult education becomes
the process of assisting those who are fulfilling
adult roles to understand the meaning of their
experience by participating more fully and freely in
rational discourses to validate expressed ideas and to
take action upon resulting insights. Incumbent also
is the need for university managers and teachers to
emphasise the preservation and development of the
students own multiliteracies and discourses as well
as a willingness to engage in dialogue with them.
Student Responses
Many academics, however, raised in the dominant
mainstream elite culture and succeeding amongst a
cohort of homogeneous like-minded students, may
be unable to grapple with the implications raised by
diversity, even possessing an antipathy towards it 1.
If students are to succeed it then becomes important,
perhaps imperative, for them to recognise and
identify their needs and requirements. This
understanding lies at the heart of the second set of
responses to re-theorising transition. These
responses involve the students interpersonal
communication, or socio-cultural, competencies.
The paper will finally argue that the use of these key
interpersonal communication competencies can
facilitate the students abilities to engage, negotiate
and master the new culture. In short, become more
familiar with that new culture, its multiliteracies and
discursive practices.
Fundamental to their survival and success at
university are the students needs to develop the
appropriate communicative and professional
1 The terms elite and dominant emerge from the critical theory. They are not meant
to be as pejorative as they appear to be to scholars unfamiliar with critical discourses.
competences that will empower them to move with

comfort and effectiveness within the new culture.
These include the development of academic literacy
and intellectual integrity, as well as a capacity for
both critical and self-reflection. Intrinsic are the
abilities to study and reflect on the social, cultural
and educational practices of their first year
experience at university, to engage in a consistent
monitoring of them, and as a consequence,
accumulate new and better understandings of them.
Giddens (1994:90) argued that this involves the goal
of ensuring that the social practices in which
students were engaged are constantly examined and
reformed in the light of incoming information about
those very practices, thus constitutively altering their
character. In this way students might not only
achieve new understandings about the ways they had
been constrained by cultural and social forces but
also, by doing so, empower themselves. The skills of
observation - listening and watching - and reflection
(for example in relation to the specific verbal and
nonverbal practices of a culture or discourse) are
also integral to facilitating dialogue and engagement
with new cultures and literacies. Postle et al (1996)
and Padilla (1991) argued that the use of such
critical reflection enables students to provide
heuristic knowledge of the higher education culture
that would be valuable to both staff and students.
Interpersonal communication theory also contributes
insights valuable to students as they negotiate their
transition to the new university culture (Adler and
Towne 1996). Communication is, in essence, a
foundation for building relationships, involving
individuals in the mutual creation of meaning
(Pearson and Nelson 1997). The insights provided
by communication theory contribute, then, to the
recognition that effective communication is intrinsic
to facilitating a means of connecting with and
succeeding in the unfamiliar university culture. It is
seen to be essential in building a strong foundation
of
interpersonal
interaction,
interpersonal
relationships, interconnectedness and community.
Interpersonal communication theory reinforces the
role of dialogue, participation and interaction,
emphasising the importance of interpersonal
communication and the establishment of personal
relationships.
Both are considered to be crucial to the development
of first year students abilities to access, negotiate,
participate in, master and articulate the university
discourses and multiliteracies. The literature
surveying student retention argues that isolation is
the key factor determining student withdrawal
(McInnis and James 1995 and Tinto 1995). Benn
(2000) maintained, for example, that the presence
of a significant other was the most significant
variable facilitating continued perseverance at
university in Britain. The literature on the
importance of interpersonal communication and the

establishment of personal relationships has also
achieved sustained emphasis in the American
context. Tinto (1995) maintained the social
environment was significant for success to be
achieved in study. Austin (1993) and Kuh (1995)
discussed the importance of student involvement in
the university. They showed that the time, energy,
and commitment students directed to on-campus
activities positively correlated to increased
persistence. Stuart Hunter (1996) agreed that joiners
are stayers and emphasized the importance of
opportunities, activities clubs, organisations and
schemes, which enhanced the students feeling of
belonging. Terezini (1993) argued that students learn
holistically asserting that both students class-related
experiences and out of-class experiences made
significant contributions to explanations of
variations in intellectual orientations.
Literature in the Australian context also documents
the importance of social interaction in developing
feelings of connection and community, and in
facilitating perseverance. McInnis and James
(1995:118), for example, contended that there were
differences in academic performance between those
students who interacted with other students and
those who do not. They went on to suggest that
particular reference should be paid to the role and
significance of the social context of learning as
successful learning and the development of a
positive view of the university experience did not
occur in a social vacuum.
The quality of the learning climate at the first
year level is probably more important than at
any other time. with first year students
orientations towards learning in a formative
stage and inextricably linked to the pursuit of
identity and self-efficacy developed in a peer
group (p.119).
Dearn (1996:194) asserted that universities needed
to critically reflect on widely held assumptions about
teaching and learning and the type of learning
environments created for students, especially in the
first year. Learning, he argued, should be seen as a
deeply social activity involving the active
construction of knowledge and a process of
enculturation. McCann (1996) pointed out that social
isolation played a significant role in causing
difficulties in transition when examining the broader
implications of student diversity for university
culture and practice. The features she saw as
significantly contributing to student participation
and success included academic support strategies,
access programs and social networks (McCann
1996). Clulow and Brennan (1996: 33) argued that
there is a positive relationship between personal
support and persistence with study and that there is a
significant correlation between a group of people
never spoken to and withdrawal or failure in a

subject.
While
the
importance
of
interpersonal
communication has been noted in relation to a
successful transition to the new university culture,
ways to facilitate specific communication strategies
remain problematic. Cross-cultural communication
theory presents a theoretical perspective which could
be useful in generating new possibilities. It is usually
applied, in a university context, to international or
English-as-a-second language students. However if,
as this paper argues, the university does, in fact,
constitute an unfamiliar culture for some groups of
students, then cross-cultural theory provides the
rationale and the means for facilitating a successful
transition to the new culture. As well as providing
the link between critical discourse theory and
communication
theory,
cross-cultural
communication theory is also applicable in that it
provides the grounds for arguing that the use of
interpersonal communication competencies can
facilitate communication and aid adjustment to an
unfamiliar culture. Banduras (1986) social learning
model, for example, is utilised as the basis of a
cross-cultural communication program called
ExcelL: Excellence in Experiential Learning and
Leadership (Mak, Westwood, Barker and Ishiyama
1998). ExcelL is an experiential, skills-based,
practice-focused program, which enables people
who have recently arrived in a new culture to be
competent and effective in dealing with members of
the host culture (Mak et al 1998:4). The
significance of this program is that it establishes the
grounds and the efficacy for prioritising specific
communication competencies (in the program they
are called socio-cultural competencies) as a means
of engaging an unfamiliar culture or discourse.
Although these competencies comprise the basis of a
program, a program not dissimilar to those proposed
under the deficit model, in essence the application of
specific
communication
competencies
still
represents an alternative to the deficit approaches.
Their inclusion in the program reinforces and
validates their efficacy in the acculturation of
international students but their application is much
wider. They are just as applicable, for example, to
any newcomers entering an unfamiliar culture. For
example first year students entering the unfamiliar
culture of the university. They could act as sources
of engagement for low SES students or rural and
isolated students who need to master unfamiliar
academic literacies or the multiple discourses
intrinsic to the new disciplines they are
encountering. They could also facilitate more
meaningful dialogue between the many different
cultural groups and disciplines present within the
culture (for example, between locals, staff, older
people and younger people, people of different
socio-economic levels, different genders and

different disciplines and cross-disciplines). In this
way university education is able to encapsulate the
diversity present because the competencies are
transferable, facilitating engagement between the
many cultures and sub-cultures that make up the
university.
The value of the ExcelL program lies then in the fact
that it identifies and validates the efficacy of specific
communication competencies. However these can be
applied by students who have not participated in the
program. The competencies comprise those of
seeking help, participating in a group, making social
contact, providing feedback, both positive but
particularly
negative
feedback,
expressing
disagreement and saying no. The ability to seek
help and information, for example, is a crucial
interpersonal competency that needs to be
consistently demonstrated by students in a variety of
university contexts. Students need to be able to
canvass a wide range of resources and be able to
determine which one will best meet a specific need
for specific discipline areas. They need to be able to
access for themselves, locating, utilising and
assessing for example, information gleaned from
handbooks, booklets and web sites, as well as
discipline specific assistance such as peer assisted
learning programs, consultation with tutors and
lecturers, library and computer support services, and
study skills sessions. They also need to know how to
access learning enhancement support and the
personalised coping mechanisms to help them
negotiate the bureaucratic infrastructures in a variety
of departments and faculties. There is also the help
and support available from a plethora of counsellors:
careers, peer and clinical counsellors. These kinds of
support can make the difference between retention
and withdrawal. Also pivotal is the ability to make
social contact and social conversation, in socially
and culturally appropriate ways across a diversity of
cultural groups. This ability is crucial as it facilitates
the development of study groups, writing groups or
learning circles, as well as study partners, mentors
and friends, and perhaps, the support of a
significant other. The ability to participate in a
group or team is another interpersonal
communication or socio-cultural competency that is
pivotal to perseverance and success at university.
This ability can generate feelings of confidence and
belonging in a diversity of classroom settings and
contributes to the critical and questioning
engagement essential to academic success. In the
transactional model of the communication process
feedback is integral. Crucial communication
competencies include the twoway feedback
process. This hinges on the ability to both solicit
constructive feedback and give negative criticism,
and conversely give constructive feedback and
solicit negative input. For example, students need to
be able to ask lecturers for advice on how to

improve a draft plan or the structure or body of an
assignment. At the same time they need the skills of
explaining the difficulty of anticipating the lecturers
requirements in the absence of a Marking Criteria
Sheet. Or being able to ask for guidance about
research sources, while providing, in a socially and
culturally appropriate way, negative feedback, for
example in relation to the quality of the learning
environment - illegible transparencies, lack of
constructive feedback on assignments or the use of
unexplained technical language. The ability to give
and receive feedback is integral to perseverance. The
final key competency relates to the ability to express
disagreement or to say no. This is vital, for
example, in organising a timetable, in maintaining
discipline, in being assertive and in preventing stress
in a variety of contexts and situations.
These are then the specific and key interpersonal
competencies which, if utilised by students, enable
them to construct their means of negotiating and
mastering the unfamiliar discourses of the new
university culture. They enable students to
demonstrate
the
appropriate
inter-cultural
competencies and cultural literacies necessary for
perseverance in the new culture and, in particular,
they empower them to exhibit the knowledge and
characteristics which successful students possess and
display.
Conclusion
This paper has argued that the university constitutes
a new and an unfamiliar culture for the increasing
numbers and diversity of students attempting to
access it. It challenged the assumptions of deficit
which underpin many of the responses to diversity.
These assume that there is one mainstream discourse
and that languages and literacies different from the
mainstream represent a deficit or a deficiency on the
part of students who do not possess them. The paper
presented an alternative approach by firstly overviewing the contexts within which higher education
operates. These revealed the pivotal role played by
the first year experience and the difficulties faced by
students negotiating their transition. Several theories
were then assembled to re-position the students
experiences. These theories established the potency
and applicability of the role of multiple cultures,
multiple discourses and multiliteracies in the
university context, making possible, even
imperative, a re-theorisation of transition. They
provided the grounds, the rationale and the impetus
for its re-theorisation as a process. By re-theorising
transition as a process of gaining familiarity with the
unfamiliar discourses and multiliteracies of the
university, the paper challenged both the university
and the students. It challenged universities to not
only identify and make explicit their discourses, but
also to engage and make connection with the
diversity of its student body. It challenged students

to recognise that to demonstrate mastery of these
discourses, the use of key interpersonal
communication competencies must be evoked. It is
these competencies that enable the students
negotiation and engagement with the new culture
and its multiliteracies, facilitating their transition and
empowering them to master the discourses intrinsic
to their perseverance and success at university.
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Corporate volunteering: A cross-perceptual study

Louise Leea and Colin Higginsb
a
School of Accounting, Finance and Law, The Open Polytechnic of New Zealand
b
Department of Management Systems, Massey University, New Zealand
Abstract
Introduction
Many businesses demonstrate their role as

responsible corporate citizens through involvement
in corporate volunteering programmes. There is a
growing body of research supporting the view that
involvement in corporate volunteering can provide
many benefits for business. However little research
has been done on the experience for the employee
volunteers or community groups involved.
The public environment in which business operates

today is far different than it was just 20 years ago.
For instance, there have been dramatic and farreaching changes in the perceptions of the
relationship between business and society. This has
been reflected in the literature. For example, since
the 1960s questions have been raised about the
legitimacy of the prevailing market system, and the
effect that this has on business relationship with
society. Similarly, debate concerning the correct
role of business in society has raged since the 1970s.
Additionally, the literature throughout this time has
been dotted with numerous case studies of how
businesses have related to their communities.
This paper presents the findings of case study

research with EDS (NZ), examining the experience
of corporate volunteering from a variety of
perspectives business, employee volunteers, and
the community groups involved.
From the business perspective the key benefit of
corporate volunteering was to give visible
expression to corporate citizenship. For employee
volunteers a sense of personal satisfaction and the
desire to contribute to community were key
motivators. Community groups acknowledged the
practical,
short-term
assistance
corporate
volunteering provided and they also welcomed the
opportunities for raising the public profile of their
organisations and awareness of community issues.
They also expressed a desire to develop
collaborative, long-term partnerships utilising the
specific competencies of the business.
While the corporate volunteering initiatives in place
at EDS (NZ) have not at this stage developed into
extensive mutually beneficial partnerships this
research reveals that the benefits derived are
welcomed and meaningful for the groups involved.
Corporate volunteering has the potential to achieve
more sustained community-business partnership
through sharing, awareness raising and dialogue
between the stakeholder groups involved. Greater
understanding of the benefits and issues for each
group can potentially lead to more sustained
partnership and commitment between business and
the community.
Keywords
Corporate volunteering; Partnership;
Citizenship; New Zealand
Corporate
One particular way in which businesses relate to

their communities, that is well established and
reflected in case studies, is corporate volunteering.
Much has been written describing the extent and
variety of activities that corporate volunteering
encompasses, particularly in the US and UK, and the
many benefits that involvement can provide for the
business. However there has been little research
done on the experience for the employee volunteers
and community groups involved.
What does appear to be emerging in the literature,
however, is the view that an effective business
response to societal issues and a meaningful
contribution to a civil society require more than just
piecemeal, ad hoc interactions with the community.
Literature emerging in the 1990s has been focusing
on a new paradigm of business, emphasising
linked prosperity and partnerships between business,
government and society to create a good and civil
society.
This paper reports on a case study of corporate
volunteering with the New Zealand arm of
multinational computing firm, EDS. It examines the
perceptions of corporate volunteering from the
perspective of the business, employees and the
community groups involved. The findings of this
study suggest that corporate volunteering generates
considerable benefits for all three groups. The
findings also suggest that community groups do in
fact desire a more sustained commitment from

business organisations than what is frequently
provided by corporate volunteering. The authors
suggest that while the current emphasis in the
literature towards partnership is desirable, it is
important to recognise the contributions that
business does make. The importance of building on
these contributions to achieve a more sustained
community-business involvement is emphasised.
After providing an overview of the methodology
employed in this study, this paper highlights key
aspects of the literature relating to corporate social
responsibility, corporate citizenship, corporate
volunteering and partnership. A brief description of
the corporate volunteering programme at EDS is
then discussed before the results of the current study
are presented.
Methodology
Previous research on corporate volunteering has
largely been descriptive concentrating on the
experiences of business in the US and UK. In this
study, a case study approach was adopted in order to
explore the practices and experiences of a business
organisation actively engaged in corporate
volunteering, in New Zealand, from the perspective
of the business, employee volunteers, and the
community groups involved. A two-stage approach
to the research was adopted using both qualitative
and quantitative techniques. The first stage of the
research focused on gathering data through
interviews and focus groups to better understand the
phenomena of corporate volunteering within the
New Zealand context. Data gathered during stage
one was then used to design a questionnaire in stage
two that investigated the perceptions of the key
stakeholder groups involved in corporate
volunteering.
Literature Review
Despite current fascination in the press in New
Zealand and elsewhere about the social
responsibility of business, the attention to this issue
in the literature is not new. Writers such as Thurow
(1966), Galbraith (1972) and others have focused on
the degree to which the priorities and outcomes of
the current Western Capitalist model create an
environment for business that has damaging
consequences for society. During the 1970s and
1980s, attention in the literature appeared to focus
on the issues arising out of the relationship between
business and society. See, for example, Friedman
(1970), Beesley and Evans (1978), Jones (1974),
Steiner and Steiner (1977), Berger (1981), Carroll
(1979), Dalton and Cosier (1982). The late 1980s
and early 1990s saw a proliferation of case studies
on the ways in which business interacted directly
with the community, and debate concerning the
correct role of business in society. See, for example,
Drucker (1984); Evans and Freeman (1988);

Donaldson (1982); Buchholz (1991); Bowie (1991);
and Kerr (1996).
One common way in which business organisations
have interacted with their communities has been
through corporate volunteering. Much has been
written describing the experience of corporate
volunteering from a business perspective. For
example, The Conference Board (1993), Business in
the Community (1993), Caudron (1994), Tuffrey
(1995), and Carroll (1996) all discuss business
benefits of corporate volunteering programmes.
These include developing better work forces;
enhancing corporate reputations; and investing in the
communities in which their businesses trade. Tuffrey
(1995) and Quirke (1999) expand on the human
resource benefits that corporate volunteering can
provide, arguing that corporate volunteering offers
opportunities for challenge and skills development
for staff and impacts positively on staff morale and
motivation. Community involvement supported and
encouraged by the business, they argue, is seen as a
way to build a sense of identification with the values
and goals of the business.
The literature focusing on employee volunteers
experiences appears to be less extensive. Tuffrey
(1995) and Quirke (1998) touch on the reasons why
people choose to participate in corporate
volunteering programmes. These reasons include a
desire to make a difference to the community;
enhancing work performance; and meeting other
people. Post, Frederick, Lawrence and Weber (1996)
suggest that employees can develop leadership skills
and other useful workplace skills by participating in
corporate volunteering programmes.
From the perspective of the community groups,
there are even fewer studies. Tuffrey (1995)
suggests that programmes such as short placement
for staff in community organisations, to work on
precisely defined assignments, or mentoring
schemes between business and community
organisations, can help to provide expertise to
community organisations. (See also Business in the
Community, 1993). Quirke (1998) highlighted
benefits for the community groups at two levels - the
individual community organisation and the wider
societal level. Finally, Business in the Community
(1993) suggest that corporate volunteering can offer
the potential for mutually beneficial partnerships to
develop between community organisations and
business. For these partnerships to be sustainable,
however, a climate of trust and an understanding of
what each hopes to gain must be fostered.
Recently, the corporate citizenship and corporate
social responsibility literature has focused on this
idea of partnership. In theorising emerging
approaches to business, concepts such as reciprocal

relationships, partnerships, dialogue, diversity and
inclusivity are common. (RSA, 1996; Elkington,
1998; McIntosh, Leipziger, Jones and Coleman,
1998).
All of these writers stress that the key to an effective
business contribution to the community requires
developing mutual, beneficial partnerships between
business and community groups. Birch (1999), for
example, stresses that long-term interactive
partnerships rather than short term transactive
relationships (pg. 7) are the key to developing
social coalition. Similarly, Kanter (1999) suggests
that new paradigm partnerships (pg. 124) have the
potential to attack stubborn social problems and to
produce faster innovations and transformations.
Birch (1999) also summarises a Danish programme
called New Partnership for Social Cohesion
launched by Karen Jespersen, Minister for Social
Affairs in 1998, which stresses mutuality,
reciprocity, and sustained participation.
While these writers acknowledge the contribution
that transactional relationships, such as corporate
volunteering and philanthropy can make to the
community, they tend to argue that these interactions
are ineffective. They have the tendency, according to
Birch (1999) to be fragile and can lead to one-sided
relationships of dependency. Long-term, reciprocal,
and mutually beneficial partnerships, can help to
develop more sustainable outcomes from business
interactions with the community.
It is important to recognise, however, that the
development of partnerships between business and
the community can be difficult and problematic
(Murphy, 2000). Additionally, these judgements
about transactional relationships such as corporate
volunteering are made in light of limited research on
the perceptions of the stakeholders involved.
Effective partnerships require stakeholder inclusion an understanding of the expectations of the various
parties involved in the partnership is important if the
partnership is to be effective. Therefore there is a
need to understand the expectations of employee
volunteers and community groups as well as
understanding a business case to support corporate
volunteering.
Description of EDS Programme

EDS (NZ) is a subsidiary of EDS - one of the
worlds leading outsourcer, integrator and business
process management service providers. In New
Zealand they employ over 1,100 people and provide
services in four key areas: systems and technology
services;
business
process
management;
management consulting; and ebusiness.
EDS has three distinct corporate volunteering

initiatives: Global Volunteer Day, Net Day, and the
Community Grants Scheme. Global Volunteer Day
involves staff voluntarily spending one day per year,
usually in the month of October, doing hands on
work in the community. NetDay is where technical
staff volunteer their time to install computer
networks in Wellington schools. The Community
Grants Scheme involves employee nomination of
non-profit organisations for a $500 cash grant with
allocation made by a selection panel of EDS staff.
EDS provides the following institutional support for
their Corporate Volunteering initiatives:
a corporate volunteering coordinator to facilitate

employee community involvement
staff release time policy
company endorsement
This paper discusses the business, employee
volunteers, and the community groups experiences
in the corporate volunteering programmes
undertaken by EDS (NZ).

The business perception of corporate
volunteering
EDS, as a business organisation, viewed corporate
volunteering primarily as a way to express their
desire to be a good corporate citizen. While also
acknowledging that corporate volunteering could
provide human resource benefits, and an opportunity
to develop a positive public profile and an enhanced
reputation, these were not seen as key drivers for
EDS involvement in corporate volunteering.
Expression of Corporate Citizenship

The key objective for EDS in their corporate
volunteering initiatives was to provide a tangible and
visible expression of corporate citizenship. For
example, EDS management consistently stressed the
notion of commitment to community as the key
reason for the corporate volunteering programme.
The selection of corporate volunteering as the
vehicle by which EDS demonstrates its commitment
to being a good corporate citizen appears to be
driven by a desire to include employees in the
corporate citizenship process. The corporate
volunteering programmes in place at EDS are
organised to facilitate and foster employee
involvement and ownership. For example, the EDS
corporate volunteering coordinator indicated that
there is an emphasis on employee led initiatives in
the selection of projects for Global Volunteer Day.
She encourages staff who have connections with
Public Profile
community groups to suggest possible projects. She

then follows these suggestions through to
completion or staff may manage the projects
themselves if they wish. One staff member, for
instance, who is involved with an environmental
group sourced and coordinated projects involving
over 30 employees with this community group for
Global Volunteer Day.
Corporate volunteering was also perceived as

providing opportunities to raise awareness of who
EDS is and what they do in the wider community.
While these public relations benefits were
recognised, like the human resource benefits, they
were not seen as key drivers for supporting
corporate volunteering as no measurement of these
aspects take place, and little emphasis is placed on
these aspects when corporate volunteering is
planned and discussed.
Human Resource Benefits

EDS management also recognised the potential that
corporate volunteering could provide for team
building and building staff morale. For example,
Global Volunteer Day was strongly promoted as
providing opportunities to work in teams in a
nonworking setting, and one newly appointed
manager specifically used corporate volunteering as
an means to strengthen team work.
The employee volunteers perceptions of

corporate volunteering
The employee volunteers perceived involvement in
corporate volunteering initiatives primarily as a way
to personally contribute to the community and to
gain an understanding and awareness of community
issues. In addition to this, the potential for personal
gain was also a key benefit cited by many of the
respondents. Business benefits were also recognised,
but they did not appear to hold as prominent a
position for employee volunteers.
EDS management also acknowledged the potential

for corporate volunteering to develop employee
pride in the organisation. However no formal
assessment measuring staff attitudes to EDS as a
result of community involvement have been initiated
as yet indicating that these are not considered to be
significant motives in the corporate volunteering
process.
These results are summarised in Figure 1.
Personal contribution to the community
Additionally, while research suggests that corporate

volunteering has the potential for employee skill
enhancement, as programmes are presently
structured at EDS these opportunities appear limited.
The majority of staff are involved in community
projects using general non-work related skills rather
than technical work based skills. This further
strengthens the resolve that corporate volunteering is
viewed primarily as a corporate citizenship exercise.
The desire to help and contribute to the community

was a key perception that employee volunteers had
of their corporate volunteering experience. For
example, statements such as a good way to help
people and a good way of helping a specific
community group have the highest mean scores as
indicated in Figure 1.
Median Score
Perceptions
rsal
l reve
Roe
tam
e
as a
Work
satf
know
Get ot
skils
adership
Dev. le
l good
me efe
Make
Figure 1 Employee volunteers perceptions
efirent
d
omehtnig
Donig s
Perceptions
ksli
new s
Learn
S
by ED
Expecetd
l
ie
onsb
i yl resp
Soca
prospecst
romooitn
Hepl p
EDS
sied by
s organ
Easy a
oup
pecif gr
Hepl s
i age
EDS' m
Enhance
do
tig ot
Fun hn
peopel
of heplnig
Way
5
4
3
2
1
0
The main types of contributions that employee

volunteers thought they made to the community
included practical assistance, but opportunities to
foster greater awareness and understanding of wider
community issues were also significant outcomes
perceived by the employee volunteers. For example,
volunteers described learning about community
organisations that operate in different ways and that
face many different pressures compared to a large,
for-profit organisation such as EDS.
Potential for personal gain

Employee volunteers also appeared to have had a
strong perception that they gained some personal
benefits from participating in the corporate
volunteering programme. A number of the
participants in the focus group sessions commented
about gaining a personal sense of satisfaction the
feel good, nice warm glow stuff. As indicated in
Figure 1 these personal benefits included having fun
with family and friends and raised self-esteem.
Interestingly, employee volunteers perceptions of
personal gain appeared to be based around personal
satisfaction, rather than the development of specific
skills. For example, Figure 1 indicates that
employees did not perceive that they had learned
new skills or developed leadership skills.
Potential for business benefits

Employee volunteers also perceived that EDS would
gain from supporting and encouraging staff to
become involved in corporate volunteering. As
indicated in Figure 1 these benefits include
opportunities to develop staff through team building,
enhance EDS reputation and getting to know
colleagues in a different environment.
Having said this, however, it seems that the
employee volunteers viewed the exercise more as a
personal exercise, and less as a business exercise.
For example a significant number of employee
volunteers participated in corporate volunteering in
their own rather than work time. Additionally, some
employee volunteers were unaware of the staff
release time policy, and others perceived difficulties
organising teams of volunteers during work-time
with the nature of existing work schedules.
Furthermore, both EDS management and employee
volunteers expressed dissatisfaction with what they
perceived as presently inadequate levels of
participation from EDS senior management.
The Community group representatives

perceptions of corporate volunteering
The community group representatives involved in
the EDS corporate volunteering programme
perceived a number of useful benefits that could be
derived from the programme. While one of the

obvious benefits of corporate volunteering was the
practical assistance provided to complete a variety of
tasks, it was also acknowledged that corporate
volunteering provided the community group with an
opportunity to raise awareness of the particular
societal issues they were involved in addressing.
Additionally, the potential to raise the profile of their
organisations through association with a well known
organisation was also cited as a significant benefit.
Some community groups also saw corporate
volunteering as a means of developing long-term,
mutual partnerships with business organisations.
Practical assistance
Community group representatives perceived that
Global Volunteer Day provides a good mechanism
for completing necessary tasks and in doing so help
the organisation to achieve its goals. For example
community organisations involved had received
assistance with general maintenance, gardening,
conservation work, a trip to the Zoo with rest home
residents, a wine trail with Foundation for the Blind
clients and taking IHC clients dragon boating.
Awareness raising
For many of the community organisations
fundamental to the existence of the organisation was
an educative role on a variety of issues such as sight
impairment, environmental awareness, intellectual
disabilities and others. Representatives from two
community groups involved in Global Volunteer
Day discussed the opportunities corporate
volunteering provided to expose the wider
community to the causes their organisations exist to
promote. Global Volunteer Day projects they had
been involved in required specialised training prior
to the activities taking place. These training sessions
and the Global Volunteer Day activities themselves
were seen as providing valuable opportunities to
break down myths and barriers and help participants
get involved in issues they may have been unaware
of.
Raising public profile

A majority of the community group representatives
also perceived that involvement helped the
community group to raise its profile and generate
community support for the work that they were
involved in. Ways to work together with the
business to achieve this were seen as particularly
important for one organisation. This community
organisation, for example, is involved in a project on
a significant area of public land. As such they need
to demonstrate to funders that there is community
support and buy-in for the work of the Trust. Being
part of EDS Global Volunteer Day and publicising
this was perceived as being very important for the

Trust.
Development of mutual partnerships

For one community group representative a five-year
involvement with Global Volunteer Day had
provided a strong basis for a mutually beneficial
partnership to develop. The representative from this
community organisation spoke of the need for both
EDS and the community organisation to nurture the
partnership with time and energy. Dialogue on what
both parties wanted from the relationship was
necessary if it was to be an effective working
partnership. She expressed a desire to extend this
partnership to gain access to specific business skills
particularly in terms of marketing and promotion.
Another community group that had been involved
with Global Volunteer Day for three years also
expressed an interest in further developing the
relationship they had established with EDS, and was
considering ways that they could build and
strengthen the partnership for mutual benefit.
Comments from community group representatives
stressed the importance of establishing mutually
beneficial relationships. While they recognised that
the needs of EDS and the community organisations
were quite different, with time and communication,
the partnership could grow and develop.
Conclusion
The corporate volunteering experience provides
benefits for all three key stakeholder groups
involved. Corporate volunteering enables business to
make a tangible contribution to the community,
involve their employees, and to receive some
additional benefits in the form of team building and
employee pride. The employee volunteers gain an
opportunity to contribute to the community and to
learn about wider community issues. The
community groups, in addition to receiving practical
assistance, fulfil their educative role and also raise
awareness of the various causes their organisations
represent.
While the corporate volunteering initiatives in place
at EDS have not at this stage developed into
extensive, mutually beneficial partnerships, this
research reveals that the benefits derived are
meaningful, welcomed and positive for the groups
involved. Additionally, corporate volunteering has
the potential for partnership opportunities to develop
as it provides an opportunity for sharing, awareness
raising and dialogue between the key stakeholder
groups, and is now subsequently an area for further
research.
Therefore, a recognition and awareness of the

various benefits and issues for each group can
potentially lead to more sustained partnership and
commitment between business and the community.
However, notwithstanding this, the practice of
corporate volunteering derives a number of useful
and important benefits in its own right.
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The ExcelL Program for International Students

Anita S. Maka and Michelle Barkerb
a
Centre for Applied Psychology, University of Canberra, Australia
b
Abstract
International collaboration aiming to address the
social challenges facing overseas students has
recently led to the development of the innovative
EXCELL (Excellence in Cultural Experiential
Learning and Leadership) program. EXCELL is a
practice-focused group program derived from
established learning paradigms and incorporates
techniques of cultural mapping, coaching, and
contract setting. Evaluations conducted in Canada,
the United Kingdom, and Australia have indicated
that EXCELL can be applied to helping new
international students develop social confidence and
skills for quick adjustment to the foreign university
campus. The program has also been successfully
applied to mixed groups of overseas- and local-born
students and shown to be beneficial for both groups,
including a potential for improving inter-racial
relations.
Developing Intercultural Effectiveness In

International Students: The EXCELL
Program
International education has become increasingly
common as the trend towards globalisation
continues and industrialised countries discover the
financial and social advantages of international
education. For example, international education,
mainly within the higher education sector, has
become one of Australias top ten export industries
since the 1990s. There were over 63,000 higher
education students undertaking onshore international
education in Australia in 1999 (Fell, 1999). Ensuring
the quality of international educational services,
including the provision of effective academic
support and student counselling programs to
international students, is vital for the longer-term
viability of this new industry.
Cross-cultural differences in communication and
learning style between international and local
students have been described in a range of reports.
For example,
Volet and Tan-Quigley (1999) describe how
cultural, subcultural and individual differences in
social rules contribute to awkward cross-cultural
incidents between Southeast Asian students and
Australian university administrative staff. Barker

(1993) and Jones (1993) explored the effects of
ethnicity, status and gender on communication
processes and outcomes among Chinese and
Australian university students, and both found
significant cultural differences in communication
styles and perceptions about appropriate and
inappropriate behaviour.
In a study into the difficulties of overseas students in
social and academic situations, Barker et al (1991)
found that Chinese students reported special
difficulties in dealing with tutorials, not knowing
how to behave, or feeling confident enough about
their English to express their opinions. Gallois et al
(1992) noted the impact of cultural stereotypes and
values in perceptions of interactions between
Australian and Chinese students and lecturers. In
that study, Chinese students judged students to have
more respect for a lecturer in a passive behaviour
vignette than in an assertive condition, and
considered that the lecturer would be more helpful
when the actor behaved in a submissive manner. The
authors note this reflects the style of teaching
experienced by Chinese students in their home
culture as well as intra-cultural norms of respect for
people of higher status and the importance of
maintaining harmony in interpersonal relationships.
Cross-cultural variation in norms and values and
their reflection in different rules in social
interactions have implications for communication
styles and the effectiveness of academic-related
interactions by international students. TalbertJohnson and Beran (1999) argue higher education is
facing a problem of critical magnitude at this time,
with increasing pressure to emphasize teacher
training aimed at better preparation of teachers to
effectively teach across diverse cultures.
For students from a culturally different background
to reap the maximum benefits from an unfamiliar
educational system, they will need to establish
interpersonal relations and communicate effectively
with mainstream students, teachers, and homestay
parents. However, their initial experiences in the
new country are often analogous to those of
strangers being lost in a new city, and who are in
need of a map to help them reach their destinations.
They should be able to benefit from social

competence training presented as a program that will
enable them to make quick adjustments and increase
their chances for academic and social success in the
host country (Bochner, 1986).
Recently, collaboration between Drs. Marvin
Westwood and Ishu Ishiyama of the University of
British Columbia, Canada, and Dr. Anita Mak at the
University of Canberra and Dr. Michelle Barker at
Griffith University in Australia has led to the
development
of
EXCELL,
an
innovative
intercultural social effectiveness training program
designed to facilitate the adjustment of newcomers
to a culture, thus increasing their chances of
academic and occupational success. It is a 12-18
hours, action-oriented group program that provides
new international students, immigrants, and
expatriate workers with systematic and costeffective training that will enable them to become
effective and confident participants in the new
society.
EXCELL is a theoretically driven and evidencebased program currently offered in Canada,
Australia, and the UK. Evaluations conducted with
EXCELL participants in these countries indicate
measurable increase in participants social
confidence and observed and self-reported skills,
and improvement in attitudes towards people from
other racial backgrounds (Mak, Barker, Millman, &
Logan, 1999; Shergill, 1997). The program has been
used effectively in various educational institutions as
a personal development course, a module of
academic subjects in Communication and Cultural
Studies, a program offered in residential colleges,
and to groups of international students as well as
mixed groups of overseas-born and local-born
students. The EXCELL method can also be adapted
to develop skills in managing a range of challenging
interpersonal encounters.
This paper will introduce readers to the special
features of the EXCELL program and its learning
process.
Special Features of EXCELL

EXCELL aims to provide optimal conditions for
adults to acquire the requisite knowledge and skills
for successful social interactions with host nationals
while maintaining their original cultural identity,
through incorporating various special features. It is
different from existing intercultural training
programs in that it recognises various potential
psychosocial barriers that may impede the
development of sociocultural competence in
newcomers.
These barriers include limited
opportunities for practising newskills, a sense of
being overwhelmed by the number of adjustments to
make, interpersonal anxiety about how to relate to

host nationals, and threats to ones own cultural
identity (Mak, Westwood, Barker, & Ishiyama,
1999).
It incorporates the following special features that
will maximise the effective learning of the requisite
knowledge and skills based on established learning
paradigms:
1. The social skills taught in EXCELL represent
discrete key competencies applicable in a range of
social situations and useful for accessing the new
culture (examples include participation in a group
setting, making social contact, seeking information
or help, refusing a request, and expressing
disagreement).
2. The acquisition of sociocultural competence is
facilitated by the construction of cultural maps,
which provide a succinct description of effective and
appropriate ways of behaving in specific contexts
and why these behaviours are preferred (Mak,
Westwood, Barker, & Ishiyama, 1998).
3. EXCELL recognises that social anxiety in
intercultural interactions among newcomers is
normal, and a goal of the program is to replace that
anxiety with efficacy beliefsreinforced by mastery of
the key social competencies and the associated
cultural maps described above.
4. EXCELL provides opportunities in the group
training for observing live and videotaped role-plays
of social situations, followed by coaching of
appropriate social responses, which are refined
through repeated practice and corrective feedback
(Westwood, Mak, Barker, & Ishiyama, in press).
Role models from the mainstream cultural
background can provide an authentic explanation of
the host cultural code, whereas role models from
minority backgrounds that international students can
identify with are particularly credible and
encouraging.
5. Participants are encouraged to approach
intercultural interactions like learning about novel
social roles, while they can choose to retain
customary social skills for interacting with coethnics (Mak, Westwood, & Ishiyama, 1994).
6. Training is delivered in four to six three-hour
sessions to allow for practice in real life social
situations and completion of relevant prescribed
activities between sessions.
7. At the end of the session, participants are
encouraged to set their individual short-term goals
for practising the strategic social skills learned in the
session. Participants are asked to visualise how the
attainment of their specific short-term goals will
contribute to the broader and longer-term goals for
academic and social success, and to record their
goals in the form of a contract in an EXCELL
Participants Manual.
Suitable Participants
EXCELL is designed to be offered by ideally two
trainers (co-facilitators) to groups of between 8 and
20 participants, who:
are students, immigrants, refugees, or expatriates
from diverse cultural backgrounds;
have been in the new country long enough to have
dealt with their first survival needs, and are now
seeking effective ways of engaging with the new
culture;
have enough fluency in the host language to engage
in a group program, and
are motivated to achieve increased mastery of
intercultural social competencies.
EXCELL Trainers
It is essential that trainers who deliver this program
have successfully completed a three-day EXCELL
Trainer Course. The intensive trainer course is
suitable for academic, counselling and international
office staff members who work with international
and migrant students or other transition or special
needs students (indigenous students, students living
in residential colleges, mature age students, those
from rural backgrounds), or local-born students who
want to increase their cross-cultural awareness
and/or their social effectiveness. Candidates for the
trainer course will have group facilitation skills and
have experience in the field of cross-cultural service
delivery.
At the time of writing this paper, staff members at
46 educational institutions and government
departments and from the private sector in various
cities in Australia, North America, the UK, and
Europe have already completed the EXCELL
Trainer Course.
The Learning Process in EXCELL

Unlike cross-cultural information-giving and
sensitivity training programs, EXCELL focuses on
behavioural competence training derived from the
following well-established learning theories (Mak,
Westwood, Ishiyama, & Barker, 1999).
1. Operant conditioning: Early attempts are shaped
towards the desired behaviours by rewarding
successful trials;
2. Classical conditioning: Social anxiety is reduced
by pairing successful performance of the behaviours
in a non-threatening environment;
3. Social cognitive learning: Participants watch
credible models perform desired behaviours, and
develop self-efficacy beliefs that they too can
behave appropriately to bring about a more positive
social environment;
4. Role-based group learning: Participants observe
others behaviours and perfect skills in a supportive
environment with like people.
The learning process that occurs in the EXCELL

training program (Mak et al., 1998; Westwood et al.,
in press) is summarised as follows.
1. Alliance building and assessment: The trainers
create an environment in which the unique cultural
backgrounds of participants are acknowledged with
respect, making it safe for participants to share their
personal experiences with challenging intercultural
social encounters (e.g, in having to interrupt to
participate in a group discussion, in putting a request
to an authority figure, or in giving negative
feedback).
2.
Cultural mapping: Explanations of what
behaviours will be appropriate in each category of
social encounter and why things tend to be done the
way they are.
3. Modelling of a practice scenario to replicate the
social situation by the trainer then follows, with the
participants observing the interaction and
commenting on it.
4. Participants are then invited to practise the same
exchange in pairs with a third person as an observer,
with the trainer coaching and giving feedback and
mini-demonstrations of how to change the approach
if required. This process is repeated if necessary
until participants master specific micro-skills.
5. Contracting to apply learning in a real situation.
Participants are helped to create realistic and specific
action plans.
Evaluation of the EXCELL Program in

Canada
A preliminary evaluation of EXCELL with mixed
groups of migrant and Canadian-born students
(N=36) in a community college in Vancouver,
Canada was the topic of Amritpal Shergills (1997)
doctoral dissertation in counseling psychology at the
University of British Columbia. The sample of his
study was drawn from a diverse cultural
background. It consisted of 14 Caucasians, 9 IndoCanadian, 7 Filipinos, 3 Europeans, 2 Hispanics and
1 Chinese. The research design included an
experimental and a delayed experimental groups
(which doubled as a control group) and used both
blind observers judgements of behavioural skills in
simulated role-play, and participants self-reports.
Data were taken prior to training, at completion of
training, and at four months follow-up.
The results obtained have indicated the programs
effectiveness in bring about significant improvement
in social skills valued in Canada and in encouraging
participants to apply the competencies acquired in
the program to real life situations beyond the period
of training.
Evaluation of the EXCELL Program in Australia
with International and Local Students
A recent study evaluated the social effectiveness

benefits to students who participated in the EXCELL
Program in Australian universities (see Mak, Barker,
Logan & Millman, 1999). The first sample in the
study comprised overseas-born, primarily recently
arrived Asian international students, whereas the
second sample consisted of participants who
completed EXCELL in mixed groups of Australian
and overseas-born. Participants completed pre- and
post-training questionnaires, which surveyed their
levels of social confidence and interaction skills, as
well as their evaluation of different aspects of the
program. In addition, qualitative feedback on what
constituted the most and least useful aspects of the
program were obtained from the participants.
In support of preliminary evaluations of the
program in Canada and the UK, both local and
international students in Australian were found to
benefit from the program. For both samples,
participation in the EXCELL program resulted in a
highly significant increase in students social selfefficacy in interacting with locals in the Australian
society. Moreover, both the Non-English speaking
background overseas born students and Australianborn sub-samples within the mixed sample had
benefited from the training.
This reflects an
enhancement of the participating students beliefs
that they can successfully perform or complete target
social behaviours in academic and everyday
situations. According to Bandura (1977, 1986), selfefficacy expectancy enables individuals to produce
the desired outcomes by motivating them to try out
the behaviour, set appropriate goals, invest
substantial effort in it, persist in the face of
difficulties, and finally achieve task mastery. In the
coast of negotiating challenging intercultural social
interactions, having the requisite social self-efficacy
is important for newcomers to decide to attempt and
gradually master the relevant competencies instead
of
avoiding
potentially
anxiety-provoking
encounters.
Results with the mixed sample concur with those
obtained by Shergill (1997) using a mixed Canadian
sample. Despite the rather high initial levels of selfefficacy and skills in the Australian mixed group, the
participants still reported benefits from the program
in terms of increased social self-efficacy; and they
also perceived various aspects of the program very
favourably. This recurrent finding reflects the basic
orientation of EXCELL as a social effectiveness
training program. It is possible that receiving the
training in a culturally diverse group may have
broadened local participants perspectives on social
interactions and heightened the need for adopting a
strategic approach while maintaining flexibility in
interpersonal encounters.
The positive finding with the mixed sample further

shows that it is a useful option to offer EXCELL as
an integral part of academic subjects, such as
communication, interpersonal skills, professional
development, or cultural studies.
Such an
arrangement ensures that there is a specific time
committed to the training in an education setting
where students may be too overloaded or too shy to
sign up for a stand-alone 18-hour intercultural
training course. Further investigations can explore
the benefits of being trained in a mixed group,
versus being trained in an overseas born group (or
even with only those students from the same
minority ethnic background), among the overseas
born. The potential benefits of offering EXCELL in
multi-racial, multi-national residences on higher
education campuses will merit special attention.
The conduct of qualitative research can have a
special role to play in uncovering the processes in
the formation and modification of ethnic attitudes
and patterns of interactions. As well, future research
can cast light on potential benefits for locals to
attend a social effectiveness training program in
mixed groups.
Recent application of EXCELL in Canada

The Vancouver Community College (VCC) has
been a leader in introducing the EXCELL program
in Canada. The program, known there as Social
Cultural Competencies Training (SCCT) was first
piloted in 1996 as part of Amritpal Shergills
doctoral study. Following the success of the
program, VCC made the commitment to send four
Health Sciences staff and two counsellors to be
trained as EXCELL trainers.
The staffs participation in the three-day Train-the
Trainer course confirmed their belief that the model
was readily adaptable to the VCC context. Many
students at the College are at various stages of
adapting to Canadian culture, to college culture or to
the culture of a particular career field. The emphasis
now placed on communication skills and teamwork
has been reflected in the curriculum of many
programs. Students are under pressure to
simultaneously (and rapidly) gain technical,
communication, interpersonal and selfpresentation
skills. This, coupled with an ever growing diversity
in the student body, places increasing demands on
teaching staff. Too often, it results in the need for
remedial and crisis oriented intervention to support
students in reaching their goals or to repair the
devastation that occurs when "failure" is experienced
as a total loss of confidence in personal and cultural
identity (Pearson, 1999).
Vancouver Community College has designed a
project that brings together the complementary
expertise of Health Sciences staff and Counselling
staff, and establishes a research and training

partnership between VCC and the Department of
Counselling Psychology at University of British
Columbia. VCC was successful in getting a Locally
Initiated Curriculum grant to develop SCCT
curriculum for delivery in three Health Sciences
programs - Practical Nursing, Resident Care
Attendant, and Hospital Unit Coordinaton. To date,
VCC has completed two further pilots programs.
According to Pearson (1999), students enjoy the
classes, find the skills useful, and feel more
confident in themselves and more connected with
classmates. Academic staff have reported that
normally shy students now speak up and ask many
more questions in other classes. Feedback from onsite clinical supervisors also attests to the confidence
of students who have completed the SCCT training
before undertaking their clinical placement.
Another Canadian development is the adoption of
the EXCELL program by the Ministry of Education,
the body
responsible for all post-secondary
institutions in the Province of British Columbia.
Similarly, a number of other tertiary Colleges who
have observed the success of EXCELL at VCC are
considering pilot programs in their own institutions.
EXCELL is also the focus of the PhD dissertation by
University of British Columbia doctoral student,
Yuk Shuen.
In addition to further refinement of the EXCELL
program in Australia, counsellors and academic staff
in a number of universities in England have
implemented the program. In particular, Leeds
University, Southbank University, London, and
Oxford Brookes University have conducted
successful EXCELL programs over the last three
years. Currently, international education agencies
such as NUFFIC in The Netherlands, and UKCOSA
in the UK are examining the role of EXCELL in
promoting the social, academic and career success of
international students.
The financial and social advantages of international
education have been clearly established. The
challenge is to examine how intercultural social
effectiveness programs, such as EXCELL, can
enrich the experience of students who choose to
study in countries far from their homeland.
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(1999). Benefits of cultural diversity for
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Dr Anita Mak
Centre for Applied Psychology
School of Human and Biomedical Sciences
Division of Science and Design
University of Canberra, ACT 2601, AUSTRALIA
mak@scides.canberra.edu.au

b
Centre for Applied Psychology, University of

Canberra, Australia
Effects of occupational stressors

on depressive symptoms during
organisational restructuring
a
Anita S. Maka, and Jason Muellerb

Centre for Applied Psychology, University of
Canberra, Australia
Abstract
Recent global trends towards organisational
restructuring have raised concern that its impact on
employees occupational roles and threat to their
job security constitutes stressors capable of
compromising employees well being. This paper
presents a longitudinal survey of the relationships
among multiple occupational stressors, negative
affectivity, and later depressive symptoms among
157
Australian
public
servants
during
organisational
restructuring.
Employees
perceptions of seven sources of workplace stress -role overload, role insufficiency, role ambiguity,
role boundary, responsibility, physical environment,
and job insecurity provided measures of
occupational stressors.
Employees depressive
symptoms were assessed at follow-up.
The bi-variate results obtained show that depressive
symptoms maintained significant albeit low
associations with role insufficiency, role ambiguity,
role boundary, job insecurity, and were moderately
correlated with trait negative affectivity. Multiple
regression analysis results indicate that when all the
indicators of work stress were considered
simultaneously, the only significant predictors of
depressive symptoms were negative affectivity and
role insufficiency. Implications of the findings are
discussed in the context of the research literature on
work stress, particularly the role of negative
affectivity
in
inflating
the
stressor-strain
relationship.
Keywords
Organisational
Occupational
Depression
Restructuring;
Work
Stress;
Strain;
Negative
Affectivity;
Introduction
Recent trends towards organisational restructuring
are capable of heightening work stress and affecting
employees health and well being (Cartwright &
Cooper, 1996; Ferrie et al., 1998; Terry & Callan,
1997). When employees observe an organisations
downsizing or change efforts, they assess the
continuity of their own work situations and often
respond to the experience of uncertainty with
feelings of job insecurity (Greenhalgh, 1983). Job

insecurity is a form of work-related stressor that is
potentially detrimental to the individual well being,
job attitudes and behaviours (Lim, 1997). Research
has shown that employees perceiving threat to their
work future would exhibit symptoms of distress
manifested as anxiety, depression, and reduction in
well being (Dekker & Schaufeli, 1995; Heaney et
al., 1994; Roskies, Louis-Guerin, & Fournier, 1993).
Regardless of whether organisations are being
restructured, researchers have found that aspects of
occupational roles are capable of causing significant
work stress (Decker & Borgen, 1993). According to
Osipow and Spokane (1987), these potentially
stressful aspects of work include role overload, role
insufficiency, role ambiguity, inadequate role
boundary, responsibility, and adverse physical
environment in the workplace. During restructuring,
the organisational changes implemented or being
planned may impact on various aspects of
employees occupational roles and accentuate the
potential for additional stress. It is conceivable that
restructuring may cause increases in stress related to
role overload, role insufficiency, role ambiguity, and
responsibility, as well as blurring of role boundary.
It should be noted that organisational restructuring
may have a different amount of impact on different
work groups and individuals, depending on which
particular sections and classifications within the
organisation are targeted for amalgamation,
downsizing, outsourcing, or other types of
restructuring. Moreover, research has generally
shown considerable variation in employees
perceptions of the severity of occupational stressors
and the levels of strain experienced (Osipow &
Spokane, 1987). There is clear evidence for the
significant role that individual cognitive appraisal
plays in the stress-strain link (Dewe, 1991),
providing support for Lazarus and Folkmans (1984)
cognitive-phenomenological model of stress. In a
longitudinal study on individual coping with stress
during organisational transitions, Ashford (1988)
found that perceptions of uncertainty and fears about
the impact of the transition matter more than the
things one does to cope with organisational
stressors. In another longitudinal study of the effects
of job insecurity on psychological health, Dekker
and Schaufeli (1995) concluded that it was the

perceived stressor itself, rather than the amount of
social support available, that had an adverse effect of
employees psychological health.
The present research draws upon this subjective
cognitive model of stress, while also incorporating
the role of individual differences in susceptibility to
stress.
The individual dispositions in such
difficulties (sometimes referred to as the stressdiathesis model) are said to result from their
constitutional reactivity to stress (Kobasa, Maddi, &
Kahn, 1982; Watson & Clark, 1984). One particular
personality trait, negative affectivity, reflects
neuroticism, a low level of self-esteem, and frequent
negative emotionality (Parkes, 1990; Watson &
Clark). Individuals high in trait negative affectivity
tend to experience and report high levels of
subjective stress and strain outcomes (Burke et al.,
1993; Spector & OConnell, 1994).
There is a growing body of research evidence that
negative affectivity and other measures of
neuroticism tend to accentuate the relationship
between work stress and strain measures (Brief et
al., 1988; Parkes, 1990; Schaubroeck et al., 1992;
Walsh et al., 1997). These stress researchers have
come to regard negative affectivity as a nuisance or
confounding variable that should be controlled for in
investigations into the stress-strain relationship.
Previous research on the work-related stress-strain
relationships during organisational restructuring has
tended to suffer from at least one or more
methodological problems, such as ignoring this
possible nuisance effect of negative affectivity,
focussing on single rather than multiple indicators of
occupational stress, and being cross-sectional. The
common method variance occurring when stressors
and strain are assessed contemporaneously is likely
to inflate the magnitude of the stress-strain
relationship obtained, especially when strain is
measured by subjective reports of personal
experiences, such as psychological distress and
depression. The longitudinal survey reported in this
paper was designed to overcome these shortcomings
by including the assessment of negative affectivity
and the use of multiple occupational stress
indicators, within the context of public sector
organisational restructuring.
The Present Study and Research Aim
The present study focussed on the relationships
between the appraisals of stress due to occupational
roles and perceived job insecurity, and later
depressive symptoms, taking into account
employees negative affectivity. The longitudinal
research was formulated to investigate whether
negative affectivity would inflate the work stress-
strain
relationship
restructuring.
during
organisational
The aim of the current research was twofold. First,

the study provided a test of the hypothesis that
during organisational restructuring involving
possible job losses, higher levels of perceived
occupational stress and negative affectivity, would
be associated with employees extent of depressive
symptoms at follow-up. A second hypothesis was
that negative affectivity would inflate the work
stress-strain relationship.
Methodology
Participants
Participants in this follow-up study were 157 fulltime employees (54 male and 103 female) from two
large Australian public service departments in
Canberra that were undergoing large-scale internal
restructuring, with some sections anticipated to be
affected more than others. The participants age
ranged from 20 to 63 years, with a mean of 39.2 and
a standard deviation of 9.4 years. The respondents
consisted of administration officers, middle and
senior management staff as well as scientists,
professional officers, research officers, health
workers, and technicians.
Measures
The survey questionnaire booklet used consisted of a
section on demographic background information,
including the respondents age, gender, and position
within the organisation. As well, respondents
negative affectivity and occupational stressors were
assessed.
Trait negative affectivity was measured by the tenitem measure in Watson, Clark, and Tellegens
(1988) PANAS Scale. Participants were asked to
assess the extent to which they perceive their general
mood on five-point Likert scales.
Negative
affectivity incorporates a variety of aversive mood
states including anger, contempt, disgust, guilt, fear
and nervousness, with a low score indicating
calmness and serenity.
Occupational role stress was assessed using the
Occupational Roles Questionnaire (ORQ) of Osipow
and Spokanes (1987) Occupational Stress Inventory
(OSI). The PRQ consists of six scales of ten fivepoint Likert scales each, assessing different aspects
of perceived workplace stress Role Overload, Role
Insufficiency, Role Ambiguity, Role Boundary,
Responsibility, and Physical Environment
High scorers on Role Overload may describe their
work load as increasing, unreasonable, and not
supported by needed resources. High scorers on
Role Insufficiency may report a poor fit between
their skills and the job they are performing. High

scorers on Role Ambiguity may report a poor sense
of what they are expected to do, how they should be
spending their time, and how they will be evaluated.
High scorers on Role Boundary may report feeling
caught between conflicting supervisory demands and
factions. High scorers on Responsibility may report
high levels of responsibility for the activities and
work performance of subordinates. High scorers on
Physical Environment may report being exposed to
high levels of noise, wetness, dust, heat, cold, light,
poisonous substances, or unpleasant odours.
Dekker and Schaufelis (1995) measure of job
insecurity was adapted for use in this study. The
instrument consists of four five-point Likert scales.
It assesses respondents perceptions of the extent to
which their jobs were secure, whether working well
could lead to greater job security, and their certainty
of retaining current duties and retaining the same
employer, at one year from now.
The measure of depressive symptoms in the onemonth follow-up period was adapted from Israel et
als (1989) modification of the Centre for
Epidemiological Studies Depression Scale (CES-D).
Participants were asked to rate how often they felt
each of eight mood statements in the past month on
three-point Likert scales.
same way using a different coloured small return

envelope. Participating employees had the option of
completing the two questionnaires either during
work hours or at home.
Results
Descriptive Statistics and Scale Reliabilities
Table 1 lists the means, standard deviations, ranges
of scores, and internal consistency reliabilities of
measures of negative affectivity, occupational
stressors, and depressive symptoms. The internal
consistency estimates obtained were satisfactory,
ranging from .76 (for Role Boundary) to .87 (for
Role Insufficiency).
Table 1 Descriptive Statistics and Scale Reliabilities
Scale
SD
Range of
Scores
Negative
affect
Role overload
16.92
5.74
10-40
.85
26.17
6.70
13-44
.79
Role
insufficiency
Role
ambiguity
Role
boundary
Responsibility
Physical
environment
Job insecurity
Depression
26.22
8.41
10-47
.87
21.45
6.06
10-40
.77
23.20
7.23
13-50
.76
23.53
18.83
7.31
6.75
10-42
10-42
.78
.79
11.12
4.32
4-20
.81
Procedure
11.81
3.36
8-23
.86
A staff notice requesting voluntary participation in
an anonymous and confidential workplace survey
Independent-samples t-tests for gender differences
was sent to each employee in the prospective pool of
performed on the scales found that males reported
respondents. Survey packs were available from
higher levels of stress related to role overload, role
central points in each division in a box marked
ambiguity, and responsibility. There were no gender
Workplace Experience Survey. Each survey pack
differences on other measures of occupational role
consisted of a questionnaire booklet (for completion
in the first instance) and a separate
Table 2 Intercorrelations Among Negative Affectivity, Occupational
health
record
sheet
(for
Stressors and Depressive Symptoms
completion in one months time)
printed in a different colour, and a
1
2
3
4
5
6
7
8
9
large and a small return envelope.
.23**
.13
.30**
.32**
.10
.01
.15
.45**
1. Negative
Those employees who chose to
affect
participate were requested to
-.01
.26**
.30**
.03
.11
.14
2. Role
.55**
complete
the
questionnaire
overload
.48**
.53**
-.03
.27**
.32**
.28**
booklet anonymously and return it
3. Role
insufficient
by internal mail using the large
.57**
.16*
.10
.21**
.29**
4. Role
return
envelope
with
the
ambiguity
researchers address on it.
.22**
.27**
.28**
5. Role
boundary
An electronic reminder for

6.
Responsibility
employees in the participating
7. Physical
organisations to return the second
environ
part of the survey the health
8. Job insecurity
record sheet containing items on
9. Depression
depressive symptoms-- was sent
out one month after the initial *p < .05. ** p < .01.
invitation to participate in the
study. The health record sheet was returned in the
.27**
-
.18*
.00
.02
-.12
.02
.18*
-
stress, perceived job insecurity, negative affectivity,

or depressive symptoms.
Bi-variate Correlations
Table 2 lists the intercorrelations among negative
affectivity, six indicators of occupational role stress,
perceived job insecurity, and depressive symptoms.
A positive and moderately strong association
between depressive symptoms and negative
affectivity was noted. There were also significant
positive correlations between depressive symptoms
on the one hand, and stress due to role insufficiency,
role ambiguity, and role boundary, on the other. The
positive relationship between depressive symptoms
and perceived job insecurity was low, albeit
significant.
Negative affectivity was noted to maintain
significant
positive
correlations
with
the
occupational role stressors of role overload, role
ambiguity, and role boundary.
Multiple Regression Analysis
A blockwise hierarchical regression analysis of
depressive symptoms against (a) gender, (b)
negative affectivity, and (c) seven occupational
stressors, was performed. The order of entry was
such that the effect of occupational stressors on
depressive symptoms could be examined after the
prior variables of gender a biological characteristic
and an existing trait (cum confounding variable) of
negative affectivity had been controlled for.
Subsequent results indicate that gender did not
account for any variation in depressive symptoms.
However, the addition of negative affectivity to the
analysis significantly contributed to the explanation
of depressive symptoms (DR2 = .198, F (1,154) =
38.04, p < .001). The further addition of the set of
seven occupational stressors to the analysis resulted
in DR2 = .063, F (1,147) = 1.79, n.s. A total of
28.6% of the variation in depressive symptoms was
accounted for.
Among the nine independent variables considered,
the only two significant individual predictors of
depressive symptoms were negative affectivity (b =
.396, t = 4.401, p < .001) and role insufficiency (b =
.212, t = 2.177, p < .05).
Discussion
In the present longitudinal study, bi-variate results
obtained provide partial support to the hypothesised
relations between (a) prior occupational stressors
(significant for role insufficiency, role ambiguity,
role boundary, and job insecurity) and trait negative
affectivity, and (b) depressive symptoms in the
follow-up period. However, findings from the
multiple regression analysis indicate that when all
the indicators of work stress were considered
simultaneously, the only significant predictors of
depressive symptoms were negative affectivity and

role insufficiency, in order of decreasing magnitude.
These findings thus lend support to the second
hypothesis that negative affectivity inflated the work
stress-depression relations.
Those relations
involving role ambiguity, role boundary, and job
insecurity were no longer significant when the
influence from the generalised tendency towards
negative affectivity was partialled out.
Trait negative affectivity was once again shown to
be a potent predictor of subjective distress and a
confounding variable in the stressor-strain
relationship, lending support to the earlier findings
by Brief et al. (1988), Burke et al. (1993), Parkes
(1990), and Roskies et al. (1993).
Overall, the empirical support for the significant role
played by dispositional negative affectivity indicates
the utility of integrating the stress-diathesis approach
with the more widely researched cognitivephenomenological model of stress. People who
characteristically experience negative moods are
often described as anxiety-prone, are probably more
likely to perceive stressors as having an inflated
degree of threat, and will also report a higher level
of the strain experienced. Present findings are
consistent with Ashfords (1988) findings from her
longitudinal study on employees experiences of
stress during organisational transitions, where she
concluded that apparently the kind of person one is
may matter more than the things one does to cope
with organisational stressors.
While the present use of a longitudinal design has
been superior to the typical use of cross-sectional
workplace surveys, the use of self-reports in
measuring both negative affectivity and depression
symptoms may have accentuated their link. The
confounding effects of negative affectivity may also
have been heightened by the use of general measures
of occupational role stressors than when researchers
focus on a single stressful work encounter (Terry &
Callan, 1997). As well, the voluntary nature of the
longitudinal survey suggests that the sample could
not be regarded as a representative one. The
majority of the respondents may not have been those
employees who were most at risk of work stress, but
rather those who felt they could afford the time and
effort to complete a comprehensive questionnaire
and not have their workload increased unnecessarily.
In conclusion, it is apparent from this study that
during organisational restructuring, individual
employees characteristic negative affectivity is by
far the best predictor of their strain reactions as
measured by depressive symptoms. This generalised
tendency to experience negative moods has turned
out to be a more important predictor of depressive
symptoms than a range of occupational stressors,
including the perception of job insecurity. Present
findings clearly support the view that the assessment

of individuals dispositional negative affectivity
should be part of any empirical investigations of the
work stress-strain relationship.
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Anita S. Mak
Centre for Applied Psychology
University of Canberra
ACT 2610
E-mail: Anita.Mak@canberra.edu.au
Phone: (612) 62012704
Sources of stress and strategies for intervention during organisational

change in a hospital environment
Angela Martin a and Elizabeth Jones b
a
b
The School of Management, Griffith University, Australia

indirect costs and other aspects of organisational
health (Quick, Quick, Nelson, & Hurrell, 1997).
Abstract
The present study investigated stress and stress
management during organizational change. A
diagnostic survey of 744 hospital employees
undergoing a large-scale program of change was
conducted. Sources of stress and possible strategies
for intervention were determined using a qualitative
approach.
The major sources of stress were
communication climate and resourcing issues. The
intervention preferred by the majority of employees
was an improved change process, including
widespread dissemination of detailed information
about the changes. The results also revealed some
differences between occupational groups in what
they described as significant sources of stress and
what intervention strategies they requested. The
paper concludes by discussing recommendations for
managing stress during change.
Keywords
Stress; stress management; organisational change;
content analysis.
Introduction
It can be argued that organisational change presents
a stressful situation which can remain salient to
employees for an extended period of time. Thoits
(1986) describes stressful situations as those where a
person is faced with an event or condition that
disrupts their ability to engage in everyday activities.
While temporary or infrequent stressors may be only
mildly discomforting, long-term, chronic or
compounded stressors can be quite problematic
(Lowe & Northcott, 1987).
Organisational change can exacerbate inherent
occupational stressors for many employees, and
when job pressures exceed an individuals ability to
cope, behavioural, psychological and physiological
problems can result (McLaney & Hurrell, 1988;
Nowack, 1989; Fielding, 1989). Reduced employee
well-being can also have consequences for
organisational effectiveness in terms of the
organisation-individual relationship, direct and
Much of the organisational development literature

has been concerned with models of organisational
change, and processes and interventions that aim to
inform the implementation of change in a manner
that benefits the organisation and minimises the
stress experienced by employees. Cartwright &
Cooper (1996) and Quick et al (1997) refer to stress
management strategies as primary, secondary and
tertiary.
Interventions that aim to reduce
occupational stress have largely focused on
secondary and tertiary strategies, or psychological
programs that target change in individual employees.
This is despite continued recommendations that
researchers address organisational issues (Reynolds
and Shapiro, 1991). There are both ethical and
practical
consequences
of
implementing
interventions which only aim to improve an
employees response to stressors (Murphy, 1988;
Ganster, Mayes, Sime, and Tharp, 1982; De Frank
and Cooper, 1987). Roney and Cooper (1997)
propose that primary prevention, or attempting to
eliminate stress at its source, is the most effective
way to approach stress management. They also
argue that any intervention needs to be guided by a
diagnosis which identifies what the stressors in a
particular organisation are and who is affected by
them. A wide sample of responses also ensures the
development
of
appropriately
consulted
interventions.
Aim
The present study aimed to obtain and analyse
qualitative data from a large sample of employees
regarding sources of occupational stress and the
desired remedial actions that could be taken by
management to reduce or eliminate the change
related stressors.
The study also aimed to
investigate occupational differences in sources of
stress and strategies for intervention so that the
priorities of different groups could be established
and interventions appropriately targeted.
Methodology
Participants and procedure
Participants were 744 employees at a large public
hospital who were experiencing the commencement
of a major program of organisational change
coinciding with the redevelopment of the hospital
site. The change program also aimed to implement
significant structural and cultural change, including
the introduction of multi-disciplinary teams and colocation of associated specialities.
The sample consisted 70 % women and 30 % men.
62 % of respondents were aged 20 to 40 years and
38 % were aged 41 and over. The occupational
categories represented in the sample were Clinical
Managers, Non-Clinical Managers and Supervisors,
Doctors, Nurses, Allied Health Professionals and
Operational, Administrative, Technical and Trade
Officers. The sample was representative of the
employee population on these characteristics.
In October 1998, all employees were mailed a selfadministered questionnaire with a postage-paid
return envelope. The questionnaire had been pilot
tested on a group of 20 employees from various
departments and organisational levels. The survey
was completed anonymously, however, some
descriptive data about the respondent was gathered.
Measures
A survey containing a range of quantitative
measures (see Martin & Jones, 2000) also included
two open-ended questions. These questions were
worded What causes you the most stress at work?
and What would help you most in handling the
changes? Write down anything that comes to mind.

Data analysis procedure
A total of 744 surveys were returned for analysis.
Based on calculations about how many staff
received the questionnaire, this represents a 50%
response rate.
Within the sample obtained,
response rates for the open-ended questions 1 and 2
were 85.2% and 71.6% respectively.
A standard content
analysis of this data
was conducted for each
question. Firstly, all
responses were read by
the researcher in order
to gain an overview of
the major issues. Upon
the second reading of
responses, categories
were developed which
encompassed all of the
responses. A number
of themes emerged and several categories were

developed and defined for the purposes of coding
this data. Most of the categories generated from the
data reflect occupational stressors typically
identified in the literature (Cooper and Marshall,
1976; Roney and Cooper, 1997). However, themes
specific to this organisation, or hospitals in general
also emerged. The defining characteristics of each
category are available from the authors upon
request.
Inter-rater reliabilities were calculated for the coding
of both data sets. A second rater independently
recoded approximately 20% of the data using the
categories that had been developed. The resulting
level of agreement between the additional rater and
the researcher was 83% for the first question and
73% for the second. Discussions following this
process enabled 100% agreement to be obtained.
Finally, all responses were allocated a particular
category.
It is important to note that many
employees mentioned multiple categories. Where
more than one category was mentioned, only the
first comment was coded to allow for the calculation
of discrete frequencies in each of the occupational
groups.
Cross tabulations revealed some important
differences in sources of stress and desired
interventions for the various occupational groups.
Matrices which include percentages for each of the
categories by occupational group are provided in
Tables 1 and 2 for each of the open ended questions
respectively.
Employee perceptions of sources of stress
It is important to note here that the coding categories
ineffective
communication
climate
and
ineffective
management
and
supervisor
communication could be merged into a metacategory called organisational communication
climate, which would then account for the majority
of responses. Separate categories were retained in
the analysis so that the magnitude of problems with
management communication could be established.
Table 1 Employee perceptions of causes of stress for each occupational group

Clinical
Mgrs
Doctors
Nurses
Allied
Health
Profs
Operational,
Administrative,
Trade & Tech.
Total
Sample
15.2%
24.2%
NonClinical
Mgrs &
Supvs
20.0%
28.6%
13.5%
19.2%
30.0%
24.0%
24.6%
14.5%
15.5%
9.3%
22.7%
19.9%
15.2%
11.4%
34.6%
9.5%
17.4%
14.7%
14.1%
Manager & Supv

10.6%
8.6%
0.0%
Communication
Change Process
13.6%
2.9%
9.6%
Misc.
4.5%
5.7%
3.8%
Structure &
9.1%
11.4%
5.8%
Procedures
Job Tasks
0.0%
2.9%
11.5%
Job Security
3.0%
0.0%
0.0%
Edited by M. Sheehan, S. Ramsay HRM
& J. Patrick
(2000) Brisbane:
University
& OHS
3.0% Griffith
8.6%
1.9%
Rosters & Shifts
1.5%
0.0%
0.0%
n=
66
35
52
8.8%
23.2%
21.7%
13.0%
5.7%
6.7%
3.9%
2.9%
1.4%
2.9%
10.1%
6.2%
5.4%
7.1%
5.7%
5.1%
4.9%
0.7%
1.4%
4.2%
283
8.7%
0.0%
2.9%
1.4%
69
2.3%
10.9%
3.1%
0.8%
129
4.7%
2.8%
2.6%
2.3%
634
Resources
Communication
Climate
Workload
The category ineffective communication climate

included comments characterised by references to
general interpersonal tensions, co-worker attitudes,
poor morale and motivation, lack of teamwork,
organisational politics, resistance to change, conflict
and aggressive behaviour. In addition, the issue of
inter-group relations was quite salient in the sample.
Many respondents highlighted a lack of
communication or cooperation between professional
groups or departments as a stressful aspect of the
communication climate. Also included in this
category were comments related to a perceived lack
of consultation and participation in change-related
decision making.
The category ineffective management and
supervisor communication style included any
comments about superiors such as unprofessional
and aggressive behaviour, autocratic management
style, a lack of encouragement, acknowledgment and
feedback, a lack of listening, support and
understanding and a lack of clear directions.
At the organisational level, the analysis revealed that
during a change program, communication with
others (i.e. superiors, colleagues, subordinates and
patients) is the major source of stress. Michela,
Lukaszwski and Allegrante, (1995) argued that
aspects of workers experiences included within the
concept of organisational climate are potential
stressors and can serve to broaden the range of
variables or conditions examined for their stressful
effects.
Another major source of stress was inadequate
resources to provide quality patient care. This
category included comments related to the need for
adequate numbers of permanent trained staff,
improved facilities and equipment and general
comments about the compromising of quality
standards due to too much focus on cost cutting.
The coding category increased workload was also
frequently mentioned as a source of stress. These
comments were often linked to concerns about
staffing levels (resources category), however it was
retained as a separate category which contained
references to long hours and frequent unpaid
overtime or excessive work demands (competing
demands, time management issues, not getting
breaks). Roney and Cooper (1997) have also
reported that increased workloads and limited
resources can mean overwork for employees, which
in turn can impact on organisational effectiveness.
Overall, these results are indicative that
organisational climate issues are the primary source
of stress for the majority of employees undergoing
organisational change in a hospital environment,
followed by resourcing issues.

There were,
however, some important differences between
groups in the sources of stress they described (see
Table 1).
Group differences
For
managers
(clinical
and
non-clinical)
communication climate was the most frequently
mentioned category, followed by inadequate
resources. These groups also mentioned inefficient
organisational structure and procedures more often
than other groups.
In addition, non-clinical
managers mentioned HRM and OH&S issues more
often than other groups.
Clinical managers
mentioned the change process itself as a source of
stress more often than other groups. Martin and
Jones (2000) also found that clinical managers had
higher levels of change-related stress than other
groups due to their responsibility for implementing
significant changes to clinical practice.
Doctors talked about workload more often than
climate and also mentioned job tasks as stressful
more often than other groups. These findings are
not surprising given workloads of up to 60 hours a
week and a job involving responsibility for the lives
of patients.
Nurses reported that the inadequate resources
available had a major impact on the delivery of
quality patient care. These findings are consistent
with those of Baglioni, Cooper and Hingley (1990)
who report considerable role conflict amongst
nurses, stemming from discrepancies between the
goals of clinical care and the goals of economic
rationalism. Nurses also mentioned rosters and shift
work as a source of stress more often than other
groups.
Allied health professionals mentioned resources and
managers and supervisors as the two most common
sources of stress. Similarly to nurses, because allied
health staff deliver patient care, they too feel this
tension, or role conflict due to a lack of resources.
The operational group reported ineffective manager
and supervisor communication style as the major
source of stress. They were also the only group to
make considerable mention of job security as a
stressor. This group also found the change process
more stressful than other groups. Martin and Jones
(2000) found that operational staff had consistently
more negative perceptions about organisational
change across a range of climate, stress and
adjustment criteria. These negative perceptions were
attributed to the weak
political position within the hospital culture and low
levels of control, or influence of operational staff.
over the change process.
Table 2 Employee suggestions for interventions for each occupational group

Clinical
Non-Clinical
Doctors
Nurses
264 T RANSCENDING BOUNDARIES
Mgrs : INTEGRATING
Mgrs & PEOPLE , P ROCESSES AND SYSTEMS
Supvs
Change Process
Climate
Training
Leadership
Resources
Other
n=
24.2%
22.7%
7.6%
18.2%
21.2%
6.1%
66
46.4%
21.4%
7.1%
3.6%
10.7%
10.7%
28
40.5%
24.3%
2.7%
2.7%
18.9%
10.8%
37
Employee suggestions for interventions to assist with

handling the changes
Table 2 indicates that, overwhelmingly, most
employees wanted a more transparent change
process. This category, clearly planning and
communicating the change process consisted of
requests for the dissemination of honest and detailed
information about the rationale for change, job
security, expectations and roles and responsibilities.
Employees want to see evidence of thorough
planning and objectives, a manageable pace and a
clear time-line. They wanted information to be
disseminated to all staff through a variety of
channels (web site notice board, newsletters, inservices/personal visits, meetings, videos for night
shifts etc). These improvements could include a goal
setting process for each work area that includes
determining milestones and evaluation criteria that
employees have had some input into. Greenhalgh
and Jick (1989) found that a core organisational
change stressor is ambiguity regarding the
organisations future. Sutton and Kahn (1986) argue
that understanding, prediction and control of
changes act as stress antidotes and thus, attention
must be directed towards ensuring that employees
are able to do this.
The next most often requested intervention was
improved organisational climate. This category
included comments related to the need for improved
communication, morale, teamwork, interdisciplinary
respect and more socially skilled and supportive
colleagues. Also included were comments regarding
the need for increased participation in decisionmaking and an improved patient care focus.
Improving interpersonal relationships is a complex
process and may be assisted by interpersonal skills
training, or changes to workplace design, managerial
style or organisational culture. Roney and Cooper
(1997) advocate the creation of healthy and
supportive networks within the work environment,
because it is extremely important that the
organisational climate will support any stress
management interventions.
The provision of training that enhances skills to
deal with changing roles/tasks was also identified
by staff as an important form of intervention. In
particular, training and support in the area of
computers, equipment and new technologies were
frequently requested. Other forms of training that
employees felt were necessary were training in
communication skills and consistent orientation and
48.7%
16.8%
18.6%
6.6%
4.0%
5.3%
226
Allied
Health
Profs
Operational,
Administrative,
Trade & Tech.
Total
Sample
50.8%
14.8%
11.5%
13.1%
6.6%
3.3%
61
47.0%
20.1%
18.3%
15.7%
4.3%
0.9%
115
44.7%
17.4%
14.7%
10.4%
8.0%
4.8%
533
induction for new and temporary staff. Other

relevant issues included in this category were that
training needed to be delivered in an equitable
manner and that attendance at training should be
supported by workload reduction/timeout to
integrate learning, practice skills and develop
mastery and confidence. Hurrell (1989) also
suggests extensive training programs for workers
whose jobs are being changed. It is recommended
that the improvements to the change process include
a training needs analysis to determine the technical
and communication skills necessary to achieve
organisational change objectives.
Although the lack of resources was identified as one
of the major sources of stress, it is interesting to note
that employees were less likely to request an
intervention in this area. This could be due to a sense
of realism about budget restrictions and decreasing
funding levels in the health sector. Although
employees are generally quite stressed by the lack of
resources and the effects of this on patient care,
many of them may realise that change process and
climate factors are more readily altered than funding
levels.
Overall, these results indicate that what employees
want most are organisational level (or primary)
interventions directed at improving the change
process and the climate within which the changes
are implemented.
However, individual-level
strategies such as training are still considered
important in some groups.
Group differences
Again, some interesting differences between groups
emerged. Clinical managers were more concerned
about intervening in the areas of resourcing and
leadership than other groups.
This finding is
consistent with the major sources of stress identified
by this group (communication climate, lack of
resources and increased workload).
Doctors also requested assistance in the area of
resources more often than other groups. When
looking at the sources of stress for this group, the
links between resources and workload are evident.
Nurses and operational staff were more interested in
training than other groups. A lack of training is often
linked to limited resources, a major source of stress
for nurses in particular. Training in communication
was often mentioned. This strategy would improve
the organisational climate, the second major source

of stress for nurses. Martin and Jones (2000) also
found that the operational group had lower levels of
situational self-efficacy. Ensuring that these staff
have the necessary skills to perform adequately in
changing roles should improve their self-efficacy.
Operational staff mentioned improvements in the
area of leadership more frequently than other groups
(except clinical managers). This reflects their
dissatisfaction with manager and supervisor
communication (the major source of stress for this
group).
Conclusion
The qualitative approach employed in this study
enabled issues of stress and intervention during
change to be examined in a diagnostic manner, so
that the most effective strategies for different groups
within the organisation could be appropriately
targeted. Climate issues such as interpersonal
communication, resource versus quality tensions and
the increased workload resulting from this were the
major sources of stress for hospital employees
experiencing change.
Employees demonstrated a sense of realism about
the possibility for changing resource allocation by
requesting change management and climate
interventions. Because additional resourcing is not
possible, creating structural efficiencies and
improving the organisational climate and change
process by enhancing communication between staff
at all levels should be a major priority.
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Ms Angela Martin -Doctoral Candidate
The School of Management,
Nathan QLD 4111
E-mail: a.martin@mailbox.gu.edu.au
Phone: 07 3875 7589
Fax: 07 3875 3887
Employee adjustment during organisational change: Differences

between occupational groups in a hospital environment
Angela Martin a and Elizabeth Jones b
a
b

organisational health (Quick, Quick, Nelson, &
Hurrell, 1997).
Abstract
The present study investigated occupational
differences in levels of adjustment during
organisational change. A diagnostic survey of 744
hospital employees undergoing a large-scale
program of change was conducted. Occupational
differences in employee adjustment, change
appraisal and perceptions of organisational climate
were assessed using indicators developed from
exploratory interviews and an empirically validated
theoretical model of employee adjustment to change
(Martin, Jones and Callan, 1999). The results
revealed some differences between occupational
groups, with one group in particular reporting
poorer levels of adjustment. These differences
highlight the importance of examining employee
perceptions at the sub-group level when
implementing change.
Keywords
Employee adjustment; organisational climate; stress;
organisational change; multivariate analysis of
variance.
Introduction
The impact of organisational change on individual
employees self-esteem and psychological well
being has been an important area of research.
Employees often report a sense of uncertainty and
anxiety in response to organisational change
(Ashford, 1988; Kanter, 1983; Schweiger &
Ivancevich, 1985). In their early work on life stress,
Holmes and Rahe (1967) identified the experience of
change as a defining feature of potentially stressful
events. Roney and Cooper (1997) argue that stress
at work is primarily caused by what they term the
fundamentals of change such as increased pressures
to perform, lack of job certainty/security, lack of
control and constant change in work patterns or
management approaches. It is also important to note
that reduced employee well-being can have
consequences for organisational effectiveness in
terms of the organisation-individual relationship,
direct and indirect costs and other aspects of
The application of a stress and coping perspective to

the investigation of employee adjustment during
organisational change has provided us with some
understanding of the way in which key psychosocial factors interact in predicting adjustment.
Terry, Callan and Sartori (1996) tested a model of
employee adjustment to change, based on Lazarus
and Folkmans (1984) theory of stress and coping.
They found support for this model, but urged
researchers to continue to examine the role of
organisational factors as well as individual responses
to change. Following on from this work, Martin,
Jones and Callan (1999) found empirical support for
a model that included measures of organisational
climate as well as measures of individual appraisals
of change and individual differences (e.g. negative
affect). In their test of the above model, Martin et al
(1999) found that organisational climate was the
most influential factor, with strong main effects, and
a mediational effect (through change appraisal
processes), on adjustment criteria (job satisfaction
and psychological well being).
Organisational climate is concerned with the
reciprocal interaction of the environment and the
person (Schneider and Reichers, 1983). Central to
this construct are perceptions about organisational
communication such as management style, intergroup and interpersonal relations. An organisations
core values and strategic objectives also impact on
employees perceptions of their environment.
Michela, Lukaszwski and Allegrante, (1995) argued
that aspects of workers experiences included within
the concept of organisational climate are potential
stressors and can serve to broaden the range of
variables or conditions examined for their stressful
effects.
Situational appraisals reflect the persons cognitive
evaluation regarding how a situation or event will
affect his or her level of well being (Lazarus &
Folkman, 1984). In other words, how much the
person predicts the event will be stressful for them.
Terry et al (1991; 1994; 1995) argued that appraisal
also includes situational self-efficacy expectations.

Martin et al (1999) found evidence that judgements
about openness (or in reverse, resistance) to change
are also part of the appraisal process.
The applied value of these models can be improved
by linking them to diagnostic processes that examine
the unique climate of each organisation. Such a
process needs to include the examination of subcultural or occupational group differences, rather
than treating employees as a homogeneous group.
Overall, this approach would ensure organisationspecific stress management programs are
implemented rather than the application of generic
models of stress management (Hart & Wearing,
1995; Dewe & ODriscoll, 1999).
Aim
The present study aimed to examine differences
between occupational groups in perceptions of
climate, psychological appraisal of change and
levels of adjustment during organisational change.
The results may then be used to identify specific
groups that would benefit from interventions
designed to facilitate a more positive adjustment
process.
Method
Participants were 744 employees at a large public
hospital who were experiencing the commencement
of a major program of organisational change
coinciding with the redevelopment of the hospital
site. The change program also aimed to implement
significant structural and cultural change, including
the introduction of multi-disciplinary teams and colocation of associated specialities.
The first section of the questionnaire gathered

demographic and descriptive data such as sex, age
bracket, length of service at THE HOSPITAL,
length of time in current position, employment status
and occupational classification.
Climate Indicators
Organisational climate was measured with 5 items
which asked staff to rate the extent of their
agreement with statements about different aspects of
working at the hospital (e.g. Open and free
communication is encouraged; 1 = strongly
disagree to 6 = strongly agree). The items in this
scale were developed for use in the survey on the
basis of exploratory interview data (Martin et al,
1999).
Work unit functioning was measured with 9 items.
These questions asked subjects to rate their work
unit in relation to different characteristics of a
positively functioning work unit (e.g. How much do
you agree that the following are characteristics of
your working unit: Ability to deal with problems,
1 = strongly disagree to 5 = strongly agree). These
items were adapted for use in the survey from Van
Kippenberg and Van Oers (1984) and Terry and
Callan (1998).
Quality of patient care was measured with 5 items.
The items asked staff to rate the extent of their fish
agreement with positive statements about their
perceptions of the quality of patient care at the
hospital (e.g. In my opinion, patients receive good
quality patient care 1 = strongly disagree to 6 =
strongly agree). These items were developed for use
in the survey on the basis of exploratory interview
data (Martin et al, 1999).
The sample consisted of 70% women and 30% men.

62% of respondents were aged 20 to 40 years and
38% were aged 41 and over. The occupational
categories represented in the sample were Clinical
Managers, Non-Clinical Managers and Supervisors,
Doctors, Nurses, Allied Health Professionals and
Operational, Administrative, Technical and Trade
Officers. These represent the major occupational
categories working within the hospital. The sample
was representative of the employee population on
these characteristics.
Change Appraisals
Appraised stress was measured using 4 items
designed to gauge an initial affective reaction to the
change. These questions asked subjects to rate the
change process on six point bi-polar scales (e.g. 1=
not at all stressful and 6 = extremely stressful),
regarding the level of stressfulness, disruption,
difficulty and extent of upset. These questions were
adapted for use in the survey from Terry, Callan &
Sartori (1996) and Terry, Tongue and Callan (1995).
In October 1998, all employees were mailed a selfadministered questionnaire with a postage-paid
return envelope. The questionnaire had been pilot
tested on a group of 20 employees from various
departments and organisational levels. The survey
was completed anonymously, however, some
descriptive data was gathered.
Self-efficacy, or the extent to which subjects felt

they could perform the behaviours required to deal
with the changes, was assessed with 4 items (e.g. I
am confident in my ability to deal with the planned
structural changes, 1 = strongly disagree and 5 =
strongly agree). One item was reverse scored I
have reason to believe I will not perform well in my
job following the introduction of planned changes.
These items are similar to those used by Ashford
(1988) and Terry, Callan and Sartori (1996).
Measures
Background information
Openness to change was assessed with 5 items that

asked respondents to rate the extent of their
agreement with a series of statements about their
attitudes toward the changes. These attitudes were
assessed using a six point likert scale (e.g. I am
looking forward to the changes in my work role at
THE HOSPITAL).
The scale contained two
reverse scored items (e.g. Right now I am
somewhat resistant to the changes at THE
HOSPITAL 1 = strongly disagree to 6 = strongly
agree). These questions were adapted for use in the
survey from items used by Miller, Johnson and Grau
(1994).
Employee adjustment
Job satisfaction was measured with five items
adapted from those used by Caplan, Cobb, French,
Van Harrison and Pinneau (1975). The scale
assesses generalised levels of job satisfaction (e.g.
All things considered, how satisfied are you with
your job? 1 = very dissatisfied to 5 = very satisfied).
Psychological well being was measured using the
Psychological Symptoms Scale of Goldbergs
(1972) General Health Questionnaire (GHQ-12).
Subjects were asked to estimate how often they
experienced 12 different positive and negative
psychological health symptoms, using a 4 point
likert scale (e.g. Been feeling reasonably happy all
things considered, 1 = More so than usual to 4 =
Much less so than usual; and Felt constantly under
strain, 1 = Not at all to 4 = Much more than usual).
Results
A total of 744 surveys were returned for analysis.
Based on calculations about how many staff
received the questionnaire, this number represents a
50% response rate.
All of the computed scales were of a moderate to
high level of reliability assessed by Cronbachs
alpha co-efficients ranging from 0.76 to 0.95.
Multivariate analysis of variance (MANOVA) was
conducted to examine group differences in ratings of
climate, change appraisal and adjustment indicators.
Table 1 shows the means of each group for the
different climate, appraisal and adjustment scales.

The first one-way MANOVA was conducted to
assess differences between the 6 occupational
groups on adjustment criteria: job satisfaction and
psychological symptoms (absence of personal well
being). A significant overall multivariate effect was
obtained (using Wilks Lambda, F (10, 1400) = 1.90,
p <.05). Inspection of univariate effects found a
significant difference between groups only on the
measure of job satisfaction (F (5, 701) = 3.25, p
<.01). Student- Newman Keuls tests indicated that
operational staff reported significantly lower levels
of job satisfaction than Allied Health professionals.
A second MANOVA was conducted to assess
differences between the 6 occupational groups on
climate indicators: work unit functioning,
organisational climate and quality of patient care. A
significant overall multivariate effect was obtained
(using Wilks Lambda, F (15, 1778) = 4.18, p <.001).
Inspection of univariate effects found a significant
difference between groups on the measures of work
unit functioning, (F (5, 646) = 6.53, p <.001) and
organisational climate (F (5, 646) = 7.66, p <.001).
No significant effects were found for quality of
patient care. Student-Newman Keuls tests indicated
that operational staff and non-clinical managers
reported significantly lower levels of work unit
functioning than Clinical Managers and Allied
Health Professionals. In addition, Doctors and
operational staff reported significantly less
favourable ratings of organisational climate than
Clinical Managers and Allied Health professionals.
A third MANOVA was conducted to assess
differences between the 6 occupational groups on
change appraisals: change-related stress, selfefficacy and openness to change. A significant
overall multivariate effect was obtained (using
Wilks Lambda, F (15, 1943) = 3.72, p <.001).
Inspection of univariate effects found a significant
difference between groups on the each of the
measures of change appraisal: Openness to change,
(F (5, 706) = 3.19, p <.01), Self efficacy (F (5, 706)
= 4.456, p <.001), and stress (F (5, 706)) = 4.61, p
<.001). Student-Newman Keuls tests indicated that
Table 1 Variable Means by Occupational Groups

Scale (range)
Job Satisfaction (1-5)

Psychological Symptoms (0-3)
Organisational Climate (1-6)
Work Unit Functioning (1-5)
Quality of Patient Care (1-6)
Change Related Stress (1-6)
Self Efficacy (1-5)
Openness to Change (1-6)
Clinica
l Mgrs
Non-Clinical
Mgrs/Supvs
Doctors
Nurses
Allied Health
Profs
(n= 69)
(n=42)
(n=54)
(n=311)
(n=85)
Operational,
Administrative,
Trade & Tech
(n=151)
3.60
0.97
4.58
4.19
4.76
3.54
3.74
5.16
3.43
0.99
4.19
3.72
4.59
3.35
3.73
4.99
3.45
1.00
3.83
3.90
4.79
2.92
3.72
4.69
3.49
0.93
4.19
3.99
4.70
3.14
3.63
4.94
3.70
0.91
4.63
4.20
4.88
2.94
3.69
4.97
3.26
1.02
3.89
3.65
4.57
3.58
3.48
4.74
Doctors and operational staff reported significantly

lower levels of openness to change than Clinical
Managers. Operational staff reported significantly
lower self-efficacy than Doctors, Allied Health
professionals, Non-clinical and Clinical Managers.
Doctors and Allied Health professionals reported
significantly lower levels of change-related stress
than Clinical Managers and Operational staff.
Discussion
Operational, administrative, technical and trade staff
were significantly more likely to report lower job
satisfaction and self efficacy, higher change related
stress and rate the organisational climate and their
work unit functioning less favourably than other
occupational groups. In a qualitative study of
employee sources of stress during change, Martin
and Jones (2000) found that this group of staff
reported that communication climate (in particular
poor manager and supervisor communication style)
was the major source of stress during change.
This pattern of results (poorer levels of adjustment
across a range of indicators) is not surprising as
support staff often fare worse than professional
groups during organisational change, particularly in
relation to downsizing and the amount of political
influence they are able to exert. The concept of job
control is highly relevant here. The decision
latitude-job control model of occupational stress
highlights the important role of job control in
predicting levels of occupational stress and
employee well-being (Karasek, 1979; Jimmieson &
Terry, 1993).
The analyses also revealed significant differences
for some of the other occupational groups. Nonclinical managers were significantly more negative
in their perceptions of work unit functioning than
other groups.
These managers supervise the
operational group described above and come from a
similar occupational background, and thus it is likely
that they might share some perceptions about the
work climate.
Doctors rated the organisational climate less
favourably and were less open to change than other
groups. The fact that Doctors had more negative
perceptions about the organisational climate may be
because Doctors see themselves as the internal
client within the hospital and thus have higher
expectations about the extent of innovation and
flexibility in delivering patient care (these are some
of the items in the scale). They may be less open to
change due to the pressure for major changes to how
doctors practice in the new hospital. They are
perhaps the most powerful political group within the
organisation and it could be argued that they have
strong vested interests in resisting change.
Clinical managers reported significantly more

change-related stress than other groups. This group
is primarily responsible for developing and
implementing a lot of significant changes in relation
to the core business of the hospital (patient care). It
could be argued that the managerial responsibility
for this process creates increased workload for this
group. In addition, these managers often have to
deal with increased hostility and or uncertainty from
employees in response to the changes. Callan and
Dickson (1992) also found that managers experience
high levels of stress during change due to such
pressures.
Conclusion
Overall, the results showed that while there were
many similarities between the occupational groups,
some statistically significant differences in
perceptions of climate, appraisal of change and
levels of adjustment were detected.
These
differences reflected the differing positions and roles
of the groups in the organisation.
The results highlight the importance of organisations
undergoing
change
developing
targeted
interventions for specific occupational groups. In
particular, this study reported a pattern of negative
perceptions for one group in particular (operational,
administrative, technical and trade officers). These
results suggest that this group could benefit from a
number of specifically targeted intervention
strategies focusing on organisational and work unit
climate.
Moreover, the results emphasise the
importance of ensuring that all staff are involved in,
and have knowledge about, the change process.
Greenhalgh and Jick (1989) found that a core
organisational change stressor is ambiguity
regarding the organisations future. The results also
highlight the value of change management strategies
differentiating
between
managerial
and
nonmanagerial staff. Future research will evaluate
the effectiveness of such interventions in terms of
managing stress and improving employee
adjustment is currently being evaluated. These
interventions are targeted at the organisational, or
primary, level as well as at the individual, or
secondary, level.
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Job Demands and Worker Health, U.S.

Department of Health, Education and Welfare:
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Organisational
Psychology,
Brisbane,
Australia.
Goldberg, D. P. (1972) The detection of psychiatric
illnesses by questionnarie, Oxford University
Press: Oxford.
Greenhalgh, L. & Jick, T. D. (1989) Survivor sense
making and reaction to organisational decline.
Management Communication Quarterly, Vol.
2, pp. 305-327.
Hart, P. M. and Wearing, A. J. (1995) Occupational
stress and well-being: A systematic approach to
research, policy, and practice. In Cotton, P.
(Ed) Psychological Health in the Workplace:
Understanding and Managing Occupational
Stress, The Australian Psychological Society:
Melbourne.
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readjustment rating scale. Journal of
Psychosomatic Research, Vol. 11, pp. 213-218.
Jimmieson, N. L. and Terry, D. J. (1993) The effects
of prediction, understanding and control: A test
of the stress antidote model. Anxiety, Stress
and Coping, Vol. 6, pp. 179-199.
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Transformations in the American Corporate
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New York.
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Vol. 24, pp. 285-307.
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Appraisal and Coping, Springer Publishing
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and strategies for intervention during
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change
in
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Boundaries: Integrating People, Processes and
Systems.
Martin, A. J., Jones, E. and Callan, V. J. (1999)
Employee adjustment during organisational
change: The role of climate, social support,
negative affect and situational appraisals.
Unpublished conference paper To be
presented at 2000 Meeting of the Academy of
Management, Toronto.
Michela, J. L., Lukaszwski, M. P. and Allengrante,
J. P. (1995) Organizational climate and work
stress: A general framework applied to innercity schoolteachers. In Sauter, S. L. and
Murphy, L. R. (Eds) (1995) Organizational risk
factors for job stress. Washington, D.C.:
American Psychological Association, pp. 6180.

Miller, V. D., Johnson, J. R. and Grau, J. (1994)
Antecedents to willingness to participate in a
planned organisational change. Journal of
Applied Communication Research, Vol. 22, pp.
59-80.
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J. J. (1997) Preventative Stress Management in
Organisations,
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Psychological
Association: Washington, DC.
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Workplace Stress: The Essential Facts, John
Wiley and Sons: Chichester.
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Ms Angela Martin
Doctoral Candidate
The School of Management
Griffith University, Nathan, Q 4111
E-mail: a.martin@mailbox.gu.edu.au
Phone: 07 3875 7589; Fax: 07 3875 3887
The bully-victim at work

Paul McCarthy
School of Management, Griffith University
Abstract
The purpose of this paper is to map the contours of
knowledge
and
interest
that
make
the
conceptualisation of the bully-victim at work
possible. While the rise of the syndrome bullying-atwork has been premised on the binarisation of the
bully and victim, the bully-victim is identified as a
new formation of meaning. The crossing-over of
polarities of bully and victim in the bully-victim
points to limits of meaning in the syndrome bullyingat-work.
The polar opposition of bully and victim is traced to
projective identity-formation, naming, blaming, and
labelling. On the one side, the victim may be
depicted as weaker, fallen, even blamed. And on the
other, the bully may be the subject of witch-hunts
and criminalisation. The emergence of the hybrid
bully-victim signals the limits of these attributions,
revealing them as unable to account for the
complexities of bullying.
Keywords
Bullying; the Bully-Victim
turbulence of contemporary workplaces and

markets, wherein one can be both bully and victim.
Pleasures of the exercise of power by the bully and
the pain of the victim are depicted as mutually
furthering in the bully-victim, a characterisation that
carries forward the mutual lubricity of ecstasy and
pain, creation and destruction in Dionysus.
Rather than as marginal, the oscillating sensibilities
of the bully-victim are seen as central to experiences
of work in conditions of globalisation. The process
of mapping identifies complex shades of desire,
identity, culture, economy and polity in the
composition of the bully-victim. The perspective
developed suggests the need for a more subtle
approach to the complexities of bullying.
Methodology
A key methodological influence in the process of
mapping following is derived from Foucaults
genealogical method. This study extends preliminary
applications by McCarthy (1999) and McCarthy and
Hatcher (2000). The approach taken traces the
intersection of a number of trajectories of
knowledge, interest and desire into the normalisation
of bullying as a way of signifying distress at work.
Introduction
In the process of mapping formations of meaning of
bullying following, the bully-victim emerges as a
projective (con)fusion of fear and anger, of
compassion and vengeance, at the intersection of
several lineages of thought. Trajectories of fall,
compassion, and rehabilitation within Christianity,
humanistic psychology and civil society, are carried
into the signification of the victim as fallen, even
blameful, but forgiven and deserving of help. On
the other hand, traditions of the harsh God, of
vengeance, may surface in the witch-hunting and
punishment of the bully. The common individual
psychologisation of the problem within these
traditions may also contributes to blaming of victim,
their need to confess performance failures, and to
developmental penance.
The interpenetration of opposites in the bully-victim
can be seen as a postmodern phenomenon in which
the polarities of meaning are less fixed, more fluid;
less individualised, more tribal (McCarthy, 1994).
This fluidity in identity composes a dance-drama
that is mimetic of action and reaction in the
Genealogical method also helps configure ways

conceptualisation of bullying and remedies, at levels
of medical and psycho-therapeutic intervention, selfhelp, industry self-regulation guidelines, and the
law, all compose a new expression of
governmentality. This new configuration can be seen
to align interests of the state, professions, business
and individuals in mediating distress at work to
mutual benefit.
In addition, the process of mapping expresses
influences
from
postmodernism,
the
poststructuralism of Deleuze and Guattari, and
critical theory. Perspectives from postmodernism
(Featherstone, 1988; McCarthy, 1994), and from
Deleuze and Guattari (1987) and Guattari (1984)
help us trace the projection of desire into the
concept, and on, into the relations of signification
and space, to reveal the interplay of brutality and
pleasure in matters of organisation.
Prototypical deconstructionism in the lineage of
critical theory (e.g., Horkheimer and Adorno, 1972)
reminds us of the ongoing potential for desire to be
captured within relations of meaning, capital, and

domination. The dynamic of immanent critique in
critical theory is also useful - generally, in
negotiating the several universes of meaning
embodied in the bully-victim binary, and,
particularly, to reveal complicities in its
construction. The results of this process of mapping
can be read as a collage that denaturalises the
meaning of bullying.
From Bullies and Victims to the BullyVictim

The emergence of a new discourse about distress at
work in terms of bullying, and its enfolding of
several dimensions of meaning as a syndrome
(Showalter, 1997), has recently been charted
(McCarthy, 1999; McCarthy and Hatcher, 2000).
The following scenario depicts a complex texture of
events from which the bully-victim emerges, as a
destabilisation of meaning in the syndrome. The
events encompass:
serial circulation of panic about a new threat

through the media in the relaying of anxietyprovoking horror stories; and the concurrent
cataloguing of meanings, symptoms and effects
by professionals and researchers;
adoption of syndrome concepts by a public

anxiously seeking meaning; networking of
resentments in the formation of associations to
address the plight of victims; and public witchhunting of bullies;
development and publication of remedies by

interested parties, including: action groups;
psychiatrists, counsellors, social workers, and
employee assistance providers; lawyers;
workers
compensation
agencies
and
rehabilitators; management and unions;
researchers; and self-help publishers;
interest group pressuring of governments and

agencies to provide codes of conduct, self
regulation guidelines, and legal remedies;
ongoing struggle over meanings and remedies

amongst professional and disciplinary interests;
and the experience of difficulties by victims
seeking ways through a maze of remedies that
preserves (what is left of) their sanity and
finances;
recurrent pressure on the political-bureaucratic

system to make remedies more accessible;
appropriation of meanings and remedies by
interest
groups
and
agencies;
and
implementation of policies, guidelines, changes
to administrative procedures and the law that
are more or less compensatory or punitive, by
governments that posture caring;
development of industry self-regulatory

guidelines emphasising mutual obligation and
the third-way involvement of affected
communities, organisations and governments;

promotion of individual self-help solutions,
including coping strategies and resilience - in
the face of less than satisfactory operation of
self-regulatory guidelines;
emergence of contradictions and hybrid
meanings, such as the bully-victim, that trigger
re-appraisals of meaning in the syndrome; and
maturing of understandings, with movement
beyond punitive blaming of bullies and victims
to more sophisticated appreciation of the
complexity of the phenomenon; and
development of preventative strategies that
address individual, organisational, sociocultural, political, economic and legal relations
of the problem in a more holistic, balanced
manner.
While the above schema expresses the recent texture

of events from which the notion of the bully-victim
emerges, the following section traces the
interweaving of longer trajectories of meaning in the
concept.
Lineages of Meaning in the Bully-Victim

The bully-victim enfolds several moments in the
attribution of meaning to violent natural and social
phenomena throughout the ages. The Dionysiac
naming of nature gods and ritual sacrificial mimesis
of the interplay of violence and pleasure in nature
stand as early accommodations with natural cycles
of destruction and beneficence. Later, the naming of
the Apollonian Gods projected awe of violence out
of its immanence in human affairs, into the removed
Gods of Mount Olympus, effectively attributing it to
fate or destiny.
For the Apollonians, sacrificial violence was a key
to survival, and cross-over in the character of the
bully and victim common in an ongoing epic,
metaphysical war. Cornforth (1912) traces this early
projective mode into the naming of atomic particles
and their dynamics as a source of explanation for
violent natural and social events. And chaos theory
(Peters, 1987) recently emerges as a fluid
postmodern scientism that shows managers the way
to the future through strategic fads and fashions
(Hilmer and Donaldson, 1996) that commonly
sacrifice staff and resources to global market gods,
as ritual mimetic offerings.
At the level of epistemology, early violence to the
human body can be found at the cornerstone of
western philosophy, in Platos excremental
sublimation beneath sublime reason (Brown, 1977:
177). This motion is continued in Christianity, in
which the cycle of fall, brutality, and salvation is
compelling for the victim. In the quietistic strand of
Christianity, the victim turns the other cheek, acts
out of compassion, pursues the commandments and

seeks forgiveness, on the path to salvation.
Moments of this early construction of the victim are
carried forward in liberation theology, western
humanistic psychology, and in civil society, to the
present day.
However, the lineage of the harsh Judeo-Christian
God persists. In the Christian ascendancy, social
group fear is parlayed into the walls of the church,
the violent statism of Constantine, and the crusades
(Debray, 1983). Of the various projections of
victims fear into religion, sovereign power and the
state throughout history, the Inquisition stands with
present day genocides as indicators of the potential
for victim-mentality to inscribe itself in enclosures
of the idea, the commune and the state, as a base for
mobilisation of interests through violence.
Violent public spectacles of punishment have
commonly been an expression of sovereign power,
as the hand of God. Confessions and repentance
were often extracted by torture along the way to
dispatching the soul to the hereafter (Merback,
1999). The spectacle of punishment absorbs the
more or less victimised and resentful public in a
compelling drama of fall, vengeance, confession and
redemption, placing religion in conduit with
sovereign power. Now, televised spectacles of
executions are more sanitised, although they
continue to evoke mixed emotions of compassion
and vengeance as the bully becomes confessor and
victim.
Foucault (1979) explains the progression from
punishment as from public spectacle to the more
sanitised control and rehabilitation of the
panopticon, and on to modern systems of
surveillance and self-regulation. A lineage of the
projection of victims fear into the control of
violence can be traced through the rise of
parliaments, the panopticon, civil society, and into
contemporary systems of surveillance and selfregulation at the roots of participation and selfdevelopment in contemporary management practice.
This trajectory is marked by the ongoing
contestation of the legitimacy of lesser and greater
sacrificial violences to the benefit of the greater
good within the market, as a legacy of utilitarianism.
Eichmans attempt to present himself as a victim of
moral duty can be seen as a chilling signal of the
limits of the projective disposition of fear by the
bully-victim into the construction of the enemywithin and their cleansing. (Copjec, 1996).
The Bully-Victim in Post-Modern Times

Several currents in postmodernism further the
interplay of pleasure and pain in bully-victim
sensibilities. This section sketches these currents at
levels of desire,
organisation.
signification,
culture
and
In post-modern times, the sensibilities of the bullyvictim circle back to their early mimetic, sacrificial
expression in Dionysus, and pick up several
moments of meaning along the way to the future.
Features of postmodern experience include:
resurgent mytho-poetic sensibility; neo-pagan,
pantheistic feelism of the body-in-nature; and retribalism of society around identity and local
meaning with the deconstruction of grand theoretical
narratives (Featherstone, 1988; McCarthy, 1994).
Globalism gives new impetus to the re-imagining of
old communities and to the proliferation of
communal violence (Anderson, 1983).
The
capitulation of the nation state as a source of justice,
to the brutal exercise of managerial prerogative in
the interests of survival in global markets,
compounds local experiences of victimisation.
These experiences are networked and projected into
new violences in thought and action as in
Hansonism and in Speightism. In the networks and
teams of (re)feudalised post-industrial organisational
domains, steered by handsomely rewarded
Machiavellian princes, scapegoating and ritual
sacrificial offering-up of employees thrives in the
interests of global market survival.
Therein,
mammon is God and greed rules (Cox, 1999;
Totaro and Brown: 2000).
These post-modern organisations emerge with the
rhetorical flourish of flexibility, market adaptation,
and creative participation through information
technologies, in the quarter century of economic
tumult following the oil-price shocks of the 1970s.
During this time, the body-at-work has been
restructured, downsized, re-engineered, re-trained,
multi-skilled,
quality-oriented,
individually
contracted, and performance appraised, from all
degrees.
While there are pleasures and empowerments via
opportunities to work and consume in all this, the
psychological cruelty generated is commonly
attributed to survival needs in turbulent global
markets. The experience of victimisation has
understandably been widespread (McCarthy,
Sheehan and Kearns, 1995).
Fear accompanying this experience is commonly
projected out of local human affairs and into the
postmodern world of signifiers (Harland, 1987) in
search of meaning. Signifiers of the enemy Other
act as new enclosures of meaning around which
victim-encampments coalesce and bullies are named
and pursued. Debrays observation, give me a
good enemy and I will give you a good community
(1983: 279) suggests that cross-over in the
sensibilities of the bully-victim is central to

postmodern signification of the Other and to
tribalisation of interests around such signifiers.
In workplaces undergoing continuous change there
are many instances of bullying managerial styles
being rewarded - e.g., Chainsaw Al (Dunlap,
1996) and such characters as Max the Axe. A
cruelty dividend accrues within often inflated
salaries, stock options, and promotional prospects.
At the extremes of the bullying continuum, we may
observe a range of psychopathic, sociopathic and
sadistic behaviours at work (McCarthy, 1996). The
exercise of power in a brutal, degrading fashion may
carry Sades psycho-erotic intensities.
The
calculated violence of the torturer can be seen in
procedural bullying by cold professionals in
contemporary workplaces, in epistemological
cleansing and in the mutilation of self-esteem. This
kind of bullying may also be furthered by people
skills failures in the pressures of contemporary
workplaces (McCarthy, et al, 1995).
In postmodern organisations there is considerable
potential for brutality, in the full-flowering of
Baudelaires modernism that continually redefines
humanity in proportion to the new enjoyments it
offers (cited in Berman, 1980: 142). Guattari
points to micro-fascisms that emerge in this
condition, in the small furnaces of the family, the
school, racism ghettoes of all sorts (1984: 229).
Recently, Casilli (2000) suggests that, in postmodern
organisations, abuse is produced, as a self-furthering
product of the system of human labour. Arguably,
as normal individuals working in these
organisations and pursuing lifestyles geared to the
symbolic goods they produce, we are all more or
less complicit in this production of abuse, as bullies
and victims at various moments (McCarthy, 2000).
Indeed, normal individuals in a chain of command
will relay cruelty to others, as Milgram (1965)
demonstrated. And, normal college students
placed in the role of prison warder escalated
violence, in Zimbardos (1988) experiment. In the
fluidity of the new organisations, we are inevitably
relayers of all sorts of little brutalities that
marginalize, exclude, and threaten. The familyloving ordinariness of personnel in the Nazi
apparatus
(Bauman,
1991),
and
amongst
professional torturers generally (Conroy, 2000), has
been observed. In the sensibilities of normal
people in power, fear encapsulated into roles
predicated on needs to survive in global markets has
the remarkable potential to circulate into victimmentality and into brutal pursuit of the enemy
within.
The effects of this brutality have no doubt prompted

some of the 9 million prescriptions for antidepressants written in Australia last year.
A
significant proportion of these prescriptions have
been attributed to the use of drugs in the moodmanagement of work-related problems (Australian
Broadcasting Commission, 2000). As an expression
of desiring these drugs are often requested by
victims of pressures at work seeking to ensure their
abilities to participate in the rough and tumble of
contemporary workplaces, and, concurrently, to
fully experience pleasures of postmodern lifestyles.
Conclusion - Appraising Recent Initiatives

The bully-victim emerges as a new formation of
meaning within the syndrome bullying-at-work, as a
predominant postmodern sensibility. Therein, the
polarities of bully and victim cross-over, in
projective dispositions of fear, blaming, and anger
that reverberate within and without - outwards into
violence in the clash of ideas and bodies, mandatory
sentencing, witch-hunting, racism, fascism, and
genocide; and inwards, into self-sacrifice,
depression, social and political apathy, selfmutilation and suicide. Indeed, self-sacrifice that
implicates us in work intensification has the
potential to make us all bullies and victims. These
oscillating sensibilities of the bully-victim can be
seen to further a cycle of violence in which nobody
is safe.
Ongoing medicalisation of bullying places the
victim in a professional-bully-victim triangle
dominated by doctors and psychiatrists, and this
tends to individualise the problem, for example, as
individual anxiety disorder or stress. The effect is to
relegate workplace, organisational, and wider
cultural, social and economic factors to the
background. Clearly, diagnosis of the victims
condition needs to investigate these factors.
In the postmodern politics of caring and retribution,
the enemy is pursued, and the Victorian Government
has stated its intention to fine bullies. However, this
policy could be critically appraised as an exquisite
form of mandatory sentencing. While the proposal
plays to public anger about dreadful cases of
bullying of apprentices, it does little more to address
the problem, since the bullying metered out to
apprentices is mostly physical, and that is already
illegal.
Such an approach is also consistent with widespread
calls for criminalisation of bullying. As repugnant
and damaging as bullying is, this approach leaps
over the need for ongoing negotiation of behavioural
ethics, in respect of unreasonableness and
inappropriateness, that is central to civil society and
social democracy.
For example, under what
conditions could one impose mandatory fines on or

criminalise a bullying manager who follows normal
procedures in creating conditions of overwork,
unnecessary pressure and impossible deadlines, or
underwork and feelings of usefulness, or proffering
belittling opinions and constant criticism, or
isolating a person from normal work interaction?
These are examples of bullying, notably less illegal
and more procedural, given in the Queensland
Governments Division of Workplace Health and
Safetys guidelines to address bullying at work
(1998).
The networking of resentments in advocacy for
guidelines, such as those of the Queensland
Government guidelines can be seen as a third-way
political accommodation with a widespread bullyvictim reflex. The approach invokes the essential
civil-social democratic connective tissue of mutual
obligation, obliging a diversity of stakeholders to
network their interests and to deal with the problem
at a local level. Self-regulatory guidelines are
arguably more healthy than the blaming and
retribution of criminalisation that further the cycle of
violence.
However, there is nothing obliging powerful bullies
to adopt self-regulatory guidelines, and there is
clearly the need for the investment of considerably
more resources in promotion of the guidelines,
communicating their human and economic benefits,
and training and development in organisations and
the wider society.
Also, the problem that a person who names another
as a bully can suffer stigmatisation, job loss, and
implication in grievance and legal proceedings of
indeterminate cost and duration needs to be
addressed. Adoption of the guidelines could also be
furthered by gearing workcover premiums to the
effective operation of preventative procedures within
organisations.
Given base instincts drive the production of abuse in
postmodern organisations, the negotiation of
behavioural ethics at work needs to be placed within
a wider politics of action directed at the system of
human labour, as Casilli (2000) suggests. Casillis
strategies make the personal political, again, in
emphasising individual action to form alliances and
take well-planned long-term strategic action in the
workplace - as distinct from the wholesaling
investing of faith in doctors, therapists, unions and
consultants beyond the workplace.
To his credit, Casilli seeks a more empowering way
beyond the short-circuiting of energies into
accommodations by the very institutions and
professions that so efficiently circulate bullying in
the first instance. Understanding ways we are
implicated in the production of abuse through the

bully-victim reflex helps us appreciate the need for a
comprehensive investigation of wider individual,
organisational, socio-economic, cultural and
political dimensions of the problem that are
otherwise normalised.
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Author
Paul McCarthy is a Lecturer in the School of Management,
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p.mccarthy@mailbox.gu.edu.au.
Does marital status matter? A study of employee selection

Jeff Millera and Judy Feeneyb
a
b
School of Psychology, University of Queensland, Australia
Abstract
The goal of this study was to investigate how single
men and women are perceived in terms of personal
and professional characteristics, relative to their
married counterparts, using an employee selection
activity. Three hundred and eighty-one psychology
undergraduate students were presented with a
written description of a hypothetical job applicant,
and were asked to rate the applicant on various
dimensions, representing personal, interpersonal,
and professional qualities. Contrary to previous
studies in this area, results suggest that single
applicants were generally seen as being more
sociable and more professionally competent than
married applicants. Implications of these findings
for employee selection practices are discussed.
Keywords
Employee selection; Marital status
Introduction
Throughout recent history, it has been relatively
uncommon for individuals to remain single through
their adult years. Because marriage has been seen as
an important and necessary indicator of complete
maturity, singles have sometimes been viewed as
deficient or deviant in some way (Etaugh &
Petroski, 1985; Jacobson, 1981; Schwartz & Wolf,
1974). While both male and female singles have
tended to be viewed negatively, single women are
perhaps seen in a more negative light. Hicks and
Anderson (1989) suggest that the more profound
pressure experienced by single women exists
because of cultural perceptions in which women are
expected to be highly invested in relationships, and
to be naturally inclined towards nurturing roles.
The issue of how single people are perceived is one
of particular relevance in organisational contexts.
With the current organisational environment being
one of increasing competition, it is necessary for
organisations to ensure that they have a competitive
advantage over rival companies. A crucial factor in
obtaining such an advantage is to ensure high levels
of professional competence and dedication in
employees. As such, recent years have seen a shift
in terms of employers expectations of staff; in
particular, employers expect longer hours and more

flexibility from employees.
In addition to an employees professional abilities,
employers also need to consider employees
interpersonal skills. For example, current trends in
organisational behaviour emphasis the importance of
team building and group work. Thus, it is necessary
for employees to have well-developed social skills.
The need for high levels of professional competence
and social skills, combined with the stereotypic
beliefs about single people discussed above, may
have far reaching implications for management
practices. For example, employers may be less
likely to hire a single job applicant, due to the belief
that single people tend to be less competent than
married people. In addition, there may be fewer
career paths within an organisation for single
employees, because management may believe that
single employees are less responsible and motivated.
Moreover, single people may receive inequitable
remuneration relative their married counterparts,
because their competence and skills are seen to be
less valuable.
On the other hand, single people may be seen as
more desirable employees. For instance, employers
may believe that single employees have more
resources (e.g., time and energy) available to devote
to their careers, due to the absence of a romantic
partner. As a result of this belief, employers may
have unrealistic expectations of their single
employees.
Although current demographic trends indicate a
substantial and continuing increase in the rates of
single hood (see Australian Bureau of Statistics,
1996 and U. S. Bureau of the Census, 1992), it is
unclear whether or not attitudes towards singles have
also changed. Few recent studies have investigated
differences in how single people and married people
are perceived. Those researchers who have explored
this issue have generally found systematic
differences in perceptions in the personal,
interpersonal, and professional domains.
In a series of studies disguised as investigations of
first impressions, undergraduate students were asked
to rate married and non-married targets (Etaugh &
Malstrom, 1981; Etaugh & Petroski, 1985; Etaugh &
Poertner, 1992, Etaugh & Stern, 1984). Specifically,

participants were presented with a written
description of a target individual, and were asked to
rate the target on several personal and interpersonal
variables. The gender and the marital status of the
target were manipulated, while all other information
about the target was held constant.
Findings from these studies suggest that married
people were evaluated more favourably than
unmarried people in terms of interpersonal
characteristics. For example, Etaugh and Malstrom
(1981) found that married men and women were
perceived as more sociable than never-married men
and women. Moreover, married women were rated
as more well-adjusted than all groups of unmarried
women (Etaugh & Malstrom, 1981; Etaugh &
Petroski, 1985; Etaugh & Poertner, 1992).
Similarly, Jacobson (1981), in a study presenting
brief written profiles of married and single men and
women to undergraduate students, reported an antisingle bias, in terms of perceptions of social and
interpersonal qualities. However, that bias extended
only to older single people; older single people (i.e.,
35 years of age) were evaluated as less attractive,
outgoing, friendly, happy and popular than younger
single people (i.e., 25 years of age), or than married
people in either age group.
Experiments comparing the perceived professional
competence of married and unmarried men and
women have also been conducted. For example,
Etaugh and her colleagues (Etaugh & Czachorski
Kasley, 1981; Etaugh & Foresman, 1983; Etaugh &
Riley, 1983) conducted a series of studies in which
undergraduate participants were required to evaluate
a hypothetical job applicant in a number of jobrelated areas. As in the studies described earlier, all
information about the job applicant was held
constant, with the exception of gender and marital
status. Results of these studies showed that married
applicants were rated more favourably than single
applicants. For example, married applicants were
seen as having higher status in their professional
field, and as having better job performance than
single applicants (Etaugh & Czochorski Kasley,
1981). Furthermore, married men were given higher
ratings of job success than were single men (Etaugh
& Riley, 1983).
However, findings which oppose those described
above have also been published. For example,
Jacobson (1981) found no differences between
married and single people in terms of their perceived
stability, competence or reliability. Moreover, using
the first impression procedure described earlier,
Etaugh and Stern (1984) found that never-married
targets were rated as more professionally competent
than married targets, and that never-married targets
were rated as more responsible, stable, and dedicated

to their careers than divorced targets.
Taken together, these findings suggest that married
men and women may be seen in a more positive
light than their single counterparts, in terms of their
personal and interpersonal adjustment. However,
whether differences in perceived professional
competence exist between married and single groups
is uncertain.
It is important to note that an exhaustive search of
the literature uncovered very little research
comparing how married and single people are
perceived. Of those studies which were identified,
few had been conducted in the last 15 years. Given
the increasing rates of single hood observed in
recent years, it is reasonable to expect that attitudes
towards singles may have also shifted. In addition,
all of the studies reported above were conducted
within the United States. Attitudes towards singles
may be different in Australia from those reported
overseas.
Two additional limitations of previous research in
this area should also be noted. First, previous
studies have mostly failed to consider the age of the
stimulus person (see Jacobson, 1981, for an
exception), a factor which may moderate the
association between marital status and perceptions
of abilities and adjustment. As Jacobson (1981)
argued, in ones mid-twenties, marriage is
encouraged, rather than required, while in ones
mid-thirties, marriage may be seen as more of a
societal requisite. Because most of the studies
investigating perceptions of single people have not
stipulated the age of the stimulus person, it is
unclear whether participants in these studies
identified the unmarried targets as being truly
single.
That is, the participants (who were
themselves relatively young and single) may have
assumed that the single targets were also relatively
young, and that they were likely to go on to marry at
some time in the future.
Second, the studies described above have also
neglected to consider the possible effects of the
participants marital status. Whether the effects of
the stimulus persons marital status and gender are
consistent across all levels of participant marital
status is uncertain. It is reasonable to expect single
and married respondents to be differentially affected
by the applicants marital status. According to
Social Identity Theory (Tajfel & Turner, 1979;
1986), individuals are driven to seek distinctions
between groups to which they belong, and those to
which they do not.
These distinctions lead
individuals to develop in-group favouritism and
out-group bias, such that members of ones own
group tend to be evaluated more positively, while
members of other groups tend to be evaluated more
negatively (Tajfel & Turner, 1979; 1986). Based on

these propositions, the generality of the findings
concerning perceptions of singles can be questioned.
Given these limitations, the results presented above
must be interpreted with caution in terms of their
applicability to current social and organisational
contexts. The primary purpose of this study was to
explore how single men and women are perceived,
relative to their married counterparts, using an
employee selection methodology involving profiles
of hypothetical job applicants. This research was
intended to replicate and extend previous findings
regarding the association between marital status and
perceptions of personal and interpersonal
adjustment, and professional abilities. A secondary
aim of the research was to assess the generality of
any observed effects of the applicants
characteristics, in terms of the participants own
marital status. Based on previous findings, the
following hypotheses were developed:
Hypothesis 1: Married men and women will be

perceived more favourably on interpersonal
characteristics than single men and women.
Hypothesis 2: Married men will be perceived as

more professionally competent than married
women, and as more professionally competent
than single people of either gender.
No specific prediction was made concerning

possible differences in perceived professional
competence of married women and single
people.
Methodology
Participants
Three hundred and eighty-one undergraduate
psychology students (male = 117, female = 264)
participated in the study for course credit. Forty-five
participants were married, 315 were never-married,
and 21 were divorced at the time of participation.
The mean age of participants was 21.9 years
(SD=7.66), and ages ranged from 17 to 53 years.
Materials
Participants were provided with one of four brief
written descriptions of a hypothetical job, and a
questionnaire containing demographic questions and
the items to be rated. The description of the
hypothetical job applicant took the form of a job
application form, and included the applicants
gender, marital status, age, education and
employment histories, names of referees, and a list
of extra curricular activities. With the exception of
the two variables of gender (male/female)1 and
marital status (single/married) , all information about
the hypothetical applicant was held constant. The
1 The resume displayed 4 marital status options (i.e., married, single,
divorced/separated, and widowed) with either married or single selected, depending
in the version.
applicants age was held constant at 40 years. This

age was chosen for two reasons. First, it is generally
expected that both men and women of this age will
have married. Second, men and women of this age
who have not yet married are relatively likely to
remain single throughout their lives. Thus, the
single applicant was likely to be seen as a true
single, as opposed to a young unmarried person.
The questionnaire that participants were asked to
complete contained two sections. The first section
requested demographic information, including the
participants gender, marital status and age. The
second section contained a list of 39 items
describing personal, interpersonal and professional
qualities (see Table 1 for items), with a 6-point
Likert response scale for each item (from 1 = not at
all, to 6 = extremely well). Items for this list were
selected on the basis of previous research, and
included a mixture of positively and negatively
worded items.
Procedure
Participants were instructed to imagine that they
were employed at a company to assist in the
selection of new staff members, and that their job
was to screen the potential job applicants.
Participants were further told to imagine that their
company was currently trying to fill the position of a
counselling psychologist. This occupation was
selected for two reasons. First, the occupation of
counselling psychologist is seen as being gender
neutral (Shinar, 1978). That is, it is equally
acceptable for both men and women to hold such a
position. Second, because counselling psychologists
work closely with clients, information about how
they interact with other people would be relevant to
prospective employers.
Thus, this occupation
requires both interpersonal abilities and professional
competencies. For these reasons, selecting this
particular occupation is likely to enhance the validity
of the present study.
Participants were then presented with a description
of a hypothetical job applicant, and asked to rate the
applicant on the 39 Likert scales. In total, 89
participants were presented with a description of a
married male, 93 with a description of a married
female, 101 with a description of a single male, and
98 with a description of a single female.
Results
Principal Components Analysis of Ratings
Principal components factor analysis of the 39 items,
with orthogonal rotation, yielded two interpretable
factors which accounted for 35.7% of the variance.
The first factor, sociability, contained 16 items, such
as sociable, warm, unfriendly (negative
loading), and likeable.
The second factor,
professional competence, contained 15 items, such
as motivated, dedicated to career, educated,

and reliable (see Table 1 for factor loadings). The
cut-off for salient factor loadings was set at .40.
Two items (i.e., secure and well adjusted) were
excluded from the factors due to factorial
complexity. In addition, the factor loadings of six
items failed to reach the cut-off level on either
factor.
Samples for remainder of analyses
The remainder of the analyses reported in this paper
were conducted both with the full sample of
participants, and with a reduced sample. However,
the results presented in the current report will
include only those for the reduced sample. Most of
the existing research comparing perceptions of
married and single people has utilised relatively
young, single, undergraduate student participants.
However, a limitation of using such a sample is that
many of the young single respondents may not have
identified strongly with their single status; rather
than being true singles, these people may be better
described as pre-marital singles, who are likely to
marry some time in the near future. For this reason,
younger participants (i.e., those under 21 years of
age) were excluded from the reduced sample.
In addition, for both theoretical and logistical
reasons, separated and divorced participants were
not included in the reduced sample. The current
literature on single hood has been inconsistent in the
definition of the term single.
While some
researchers (e.g., Kaslow, 1992; Spurlock, 1990;
Shostak, 1987) include only those who have never
been married, others (e.g., Hicks & Anderson, 1989)
include all those who are not currently married,
regardless of their marital histories. This distinction
suggests the possibility that differences may exist
between different single groups (i.e., never-married,
separated, divorced, and widowed). Thus, we felt
that it was theoretically important to ensure that our
single group was homogenous in terms of
relationship history.
However, the number of
separated and divorced participants was insufficient
to include as a separate marital status group. Hence,
the reduced sample consisted of all of the married
participants, and those never-married participants
who were at least 21 years of age. In total, the
reduced sample consisted of 45 married participants
(mean age = 33.18 years; sd = 9.41) and 48 nevermarried participants (mean age = 24.35 years; sd =
4.47).
Effects of applicants marital status and gender
Two 2 X 2 factorial Anovas were conducted with the
focal variables of applicants marital status and
gender varied between participants, and sociability
and professional competence as the dependent
variables.
Main effects were found for the
applicants marital status and gender on sociability;
F(1, 100) = 5.75, p < .02 and F (1, 100) = 7.67, p <
.01, respectively. Contrary to Hypothesis 1, single
applicants were seen as being more sociable (M =
4.08) than their married counterparts (M = 3.68).
Further, male applicants were seen as being more
sociable (M = 4.12) than female applicants (M =
3.78).
Table 1 Factor loadings for sociability and
professional competence2
Item
Sociable
Comfortable with others
Socially skilled
Likeable
Warm
Fun to be with
Relationship oriented
Caring
Emotionally expressive
Cooperative
Unfriendly
Avoids intimacy
Well adjusted
Satisfied with life
Happy
Secure
Lonely
Selfish
Reliant
Tense
Compliant
Unattractive
Dependent
Competent
Motivated
Intelligent
Dedicated to career
Successful
Committed
Stable
Self confident
Responsible
Educated
Articulate
Competitive
Influential
Lazy
Unreliable
Immature
Eigenvalue
Sociability
.76
.74
.72
.71
.68
.66
.61
.61
.60
.58
.57
.54
.53
.52
.52
.47
.43
.42
.31
.24
.24
-.22
.19
.16
.19
.07
.12
.13
.23
.33
.35
.09
-.03
.06
-.03
.27
.07
-.13
.12
10.36
Professional
Competence
.10
.26
.17
.26
.16
.12
.03
.19
.12
.30
.07
-.02
.47
.34
.36
.43
.16
.00
-.21
.08
.22
-.08
-.17
.73
.70
.70
.68
.66
.66
.61
.60
.58
.56
.52
.49
.48
-.45
-.40
.36
3.57
Neither of the main effects was significant for

professional competence. Further, the interaction of
applicants marital status and gender was not
significant for either dependent variable. Thus, the
results for professional competence do not support
Hypothesis 2, which predicted high ratings of
professional competence for married men.
Effects of respondents marital status
2 Bold formattg indicates those items loading onto each factor
competent than married women, and as more

professionally competent than single people of either
gender. Limited support for this hypothesis was
found. In general, no differences were seen between
married and single applicants in terms of their
professional competence. As with sociability, this
finding was consistent, regardless of whether the
participants characteristics were considered. The
only support for the second hypothesis was that
participants who had never been married judged the
married male applicant to be more professionally
competent than the married female applicant.
Professional Competence
Next, analyses were conducted to assess the effects

of the participants marital status on ratings of the
hypothetical job applicant. Specifically, the ratings
made by married participants were compared to
those made by never-married participants. Two 2 X
2 X 2 factorial Anovas were conducted, with
applicants marital status and gender and
participants marital status (married vs. never
married) varied between subjects, and sociability
and professional competence as the dependent
variables. In these analyses, participants age was
included as a covariate to control for possible age
differences between married and single participants.
(Due to limited cell sizes, we were unable to include
participants gender as an independent variable in
these analyses).
Consistent with the analyses already reported, main
effects were found for both the applicants marital
status and the applicants gender on sociability, such
that single applicants were again rated as more
sociable than married applicants, and male
applicants were rated as more sociable than females.
On professional competence, none of the main
effects were significant.
However, the 3-way
interaction (of applicants marital status and gender,
and participants marital status) was significant; F
(1, 77) = 4.04, p < .05. Further exploration of this
result revealed a significant 2-way interaction
between applicants marital status and gender, for
single participants only (F (1, 41) = 4.51, p < .05).
Simple effects tests indicated that single participants
gave higher ratings of professional competence to
married males than to married females (see Figure
1). While this finding is interesting, limited cell
sizes prohibit us from exploring it any further; note
that most cell sizes exceeded 10, but only six single
participants rated the married male applicant. Thus,
this interaction should be interpreted with caution.
Finally, there was no effect of the covariate (age) in
the analyses
Discussion
The findings reported here provide very limited
support for the proposed hypotheses. Hypothesis 1
suggested that married men and women would be
judged
more
favourably
on
interpersonal
characteristics than single men and women. In
contrast, participants in the present study judged
single applicants more favourably than married
applicants. This finding was consistent, regardless
of whether relevant participant characteristics were
taken into account. That is, analyses including only
the applicants characteristics yielded similar results
to those including the participants marital status. In
all cases, single applicants were judged as more
sociable than married applicants.
According to Hypothesis 2, married men were
expected to be perceived as more professionally
Single (Never-married)
6
5
4
3
Single
Married
Professional Competence
Maleapplicant
Femaleappicant
Married
6
5
4
3
Single
Maleapplicant
Married
Femaleappicant
Figure 1 Plot of 3-way interaction

between applicants marital status,
applicants gender, and participants
marital
status
on
professional
competence.
In contrast, married participants did not differentiate
between the applicants in terms of their marital
status or gender. As indicated earlier, this finding
must be treated with caution; due to the small cell
sizes, replication of this result is necessary.
These findings indicate that applicants marital
status does influence ratings of sociability, but not
necessarily professional competence. However, in
interpreting these results, several limitations of the
study must be acknowledged. First, the present
study used an experimental methodology, in which
limited information about the stimulus person was
provided. Thus, the external validity of this study
needs to be considered. It is unlikely that any
organisations recruitment and selection procedures
would involve making decisions about an
applicants interpersonal and professional abilities

on the basis of a job resume alone. It is likely that
more through procedures (e.g., interviews,
personality testing, reference checking, etc.) would
also be used. However, it must be noted, that even
with such procedures, employers still have access to
only limited information about an applicant. Thus, it
may be useful to more fully assess, the basis on
which employers make decisions concerning the
hiring of new employees, and in particular, the
implication of applicants marital status on such
decisions.
Second, the present study asked participants to rate
either a married or single job applicant. There
is evidence that different single groups (i.e., nevermarried, separated, divorced, and widowed) are
viewed somewhat differently from one another
(Etaugh & Malstrom, 1981; Etaugh & Petroski,
1985; Etaugh & Poertner, 1992). In view of the
problem of limited sample size, the decision was
made in the present study to limit the applicants
marital status to only two levels (married versus
single). Future research needs to differentiate the
single targets in terms of their marital histories.
A final limitation of this study involves the sample
tested, which consisted primarily of relatively
young, unmarried, university students. Whether the
single participants in this study identified as
singles must therefore be considered. Although we
attempted to minimise this problem in several of the
analyses (by deleting the youngest single
participants), we can not be sure that this procedure
successfully addressed the problem.
Further
research extending these results to a truly single
sample (i.e., older than 25 years) is necessary. In
addition, the number of married participants in this
study was relatively small, particularly for men, and
the small cell sizes precluded the investigation of
potential effects of respondents gender. Further
research in this area needs to recruit a greater
number of married participants.
Finally, research in this area needs focus on
those who are making recruitment decisions. While
the current study sheds some light on how single
people are perceived in general, it would be helpful
to know more about the attitudes of people who are
trained and hired to make decisions about employee
selection.
Notwithstanding these limitations, the current results
provide important information when compared to
previous research investigating attitudes towards
single people.
Earlier research on this topic,
utilising a similar methodology (i.e., evaluating a
hypothetical job applicant) with similar samples
(i.e., undergraduate psychology students), has
consistently found singles to be judged more harshly
than other marital status groups (Etaugh &

Czochorski Kasley, 1981; Etaugh & Malstrom,
1981; Etaugh & Petroski, 1985; Jacobson, 1981).
By contrast, the single applicants in the present
study were seen as being more able (both
interpersonally and professionally). One might
argue that attitudes towards singles may have
undergone a shift which parallels recent
demographic changes, and that the antisingle bias
observed in past years may be disappearing, at least
within relatively young and well-educated groups.
If the pattern of results reported in the present study
holds true for evaluations in actual work settings,
single people may be less likely to experience the
stereotyping and discrimination witnessed in
previous years.
References
Australian Bureau of Statistics (1996). Marriages
and divorce, Australia (No. 3310.0). Canberra,
Australian Capital Territory: Author.
Etaugh, C. & Czochorski Kasley, H. (1981).
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status, and parental status. Psychology of
Women Quarterly, 6(2), 196-203.
Etaugh, C. & Foresman, E. (1983). Evaluations of
competence as a function of sex and marital
status. Sex Roles, 9(7), 759-765.
Etaugh, C. & Malstrom, J. (1981). The effect of
marital status on person perception. Journal of
Marriage and the Family, 43, 801-805.
Etaugh, C. & Petroski, B. (1985). Perception of
women: Effects of employment status and
marital status. Sex Roles, 12(3/4), 329-339.
Etaugh, C. & Poertner, P. (1992). Perceptions of
women: Influence of performance, marital and
parental variables. Sex Roles, 26(7/8), 311321.
Etaugh, C. & Riley, S. (1983).
Evaluating
competence of women and men: Effects of
marital and parental status and occupational
sex-typing. Sex Roles,9(9), 943-952.
Etaugh, C. & Stern, J. (1984). Person perception:
Effects of sex, marital status, and sex-typed
occupation. Sex Roles, 11(5/6), 413424.
Hicks, S. & Anderson, C. M.. (1989). Women on
their own. In M. McGoldrick, C. M. Anderson
& F. Walsh (Eds.), Women in families: A
framework for family therapy (pp. 308-334).
New York: W. W. Norton and Co. Inc.
Jacobson, M. B. (1981). Married is better: Attitudes
toward single persons as a function of their
age. Psychological Reports, 49, 287-290.
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In B. R. Wainrib (Ed.), Gender issues across
the life cycle (pp. 77-94). New York: Springer.
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and the American experience: Prospects for a
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Relations, 4(1), 17-24.
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function of occupation and sex. Sex Roles,
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Sussman & S. K. Steinmetz (Eds.), Handbook
of marriage and the family (pp. 355-367). New
York, Plenum Press
Spurlock, J. (1990). Single women. In J. Spurlock
& C. B. Robinowitz (Eds.), Womens progress:
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Tajfel, H. & Turner, J. C. (1979). An integrative
theory of intergroup conflicts. In W. G. Austin
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CA: Brooks-Cole.
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identity theory of intergroup behavior. In S.
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Jeff Miller
Email: j.miller@mailbox.gu.edu.au
Phone: 61 7 3875 7356
The tall poppy syndrome in New Zealand: An exploratory

investigation
V. Suchitra Mouly a, and Jayaram Sankaranb
a
Department of Management & Employment Relations, The University of Auckland

Department of Management Science and Information Systems, The University of Auckland
Abstract
This paper represents an exploratory investigation
into the oft cited but under-researched tall poppy
syndrome (TPS), which is an Australasian reference
to the politics of envy, jealousy, and covetousness.
Through an inductive analysis of references to the
TPS in the popular press, we uncover a conceptual
categorisation of the TPS. Manifestations of the
TPS can be classified along two dimensions: the
level of the tall poppy (i.e., individual/organisation);
and the level of the detractor (i.e., peer/societal). We
clarify the resulting 2x2 framework with recourse to
several vignettes of the TPS.
Keywords
Tall poppy syndrome;
Australasia; induction.
professional
jealousy;
Introduction
The tall poppy, according to the 1997 edition of the
Oxford Dictionary of New Zealand English, is a
conspicuously successful person. The term is of
Australian origin and was first recorded in the
Australian National Dictionary in 1902. The 1982
supplement to the Oxford English Dictionary in
Australia defines a tall poppy in Australia as an
especially well paid, privileged or distinguished
person. The 1988 edition of the Australian National
Dictionary defines a tall poppy as a person who
is conspicuously successful and (frequently) as one
whose distinction, rank or wealth attracts envious
notice or hostility (Ramson, 1988). To tall poppy is
to cut (an apparently successful person) down to
size. The tall poppy syndrome (TPS) refers to the
tall poppying of tall poppies.
The usage seems quite peculiar to Australasia; in a
search for the phrase, tall poppy, in Science Citation
Index Expanded, Social Sciences Citation Index,
Arts & Humanities Citation Index, and the ABIInform database at the University of Auckland, we
obtained only one relevant hit - Ceramalus (1994),
published, not surprisingly, in the Management
magazine of New Zealand (NZ)!
This article reports an exploratory investigation into

the tall poppy syndrome, with special emphasis on
its apparent manifestation in NZ (the country of
residence of the authors). We begin by reviewing
the rather scant extant research on the topic. By
inductively analysing references to the TPS in the
NZ popular press, we uncover a conceptual
categorisation of the various manifestations of the
TPS. We then present several vignettes of the TPS
to clarify the various connotations of the term. We
conclude by describing ongoing research into the
TPS in organisational contexts.
Review of the Relevant Literature on the

TPS
Little academic or scholarly research has been
published on the TPS, a notable exception being
Feather (1989, 1991).
Using an experimental
design, Feather investigated the attitudes of school
children, university students, and adult subjects in
Australia towards tall poppies and their fall. He
showed that respondents differed in their attitudes to
high-achievers (as opposed to average-achievers)
when the former failed or fell from grace. The
principal findings of Feathers research are that
respondents intense reactions to tall poppies are
highly correlated with their own sense of selfesteem, and that envy and jealousy play a role in the
cutting to size of tall poppies.
Jones (1993) addresses the issues relevant to
educating gifted and talented children in Australia,
focusing especially on the TPS. Dixson (1990)
discusses the TPS in Australia, dwelling on the
origins of and solutions to what she refers to as the
third deadly sin. Pacagnella (1994) assessed
attitudes towards high-achievers in sports that had
either fallen from grace or retained their high
standing. This research showed that high-achievers
with tainted reputation were evaluated more
harshly than their untainted counterparts.
An Inductive Analysis
References to the TPS
of
Popular
Given the exploratory and inductive nature of our

study, the NZ popular press is a defensible starting
point.
Tall poppies, by definition, are highachieving individuals/ organisations; hence,
instances of discredited and/or disestablished tall
poppies often comprise news that the media sees fit
to print. By helping to clarify the popular usage of
the term, which is rather peculiar to Australasia, we
can better locate our research focus on the syndrome
in organisational settings. Moreover, inasmuch as
the TPS within NZ organisations might reflect the
socio-cultural context in which these organisations
are embedded, a broader understanding of the
syndrome is germane to the present investigation.
From our secondary data, we have induced two
dimensions of manifestations of the TPS. The first
dimension pertains to the tall poppy, which can be
either at the individual level or at the level of the
organisation. The second dimension pertains to the
detractor of the tall poppy, which can manifest either
at the peer level or at the societal level. This results
in four types of manifestations of the TPS, which are
depicted in Table I. Thus, as the table depicts, Type
I refers to instances of the TPS wherein the tall
poppy is an individual and the detractors are peers.
Further, in Type I instances, at the peer level, the
detractors can comprise of either direct peers of the
tall poppy or indirect peers. An example of indirect
peers is the owners of average-achieving ponies that
compete against tall poppy ponies (in fact, Tall
Poppy is the actual name of a certain prize-winning
thoroughbred mare in NZ!). In this case, the
detractors are not direct (i.e., fellow ponies) but the
owners/custodians of average-achieving ponies. We
let I-A and I-B denote those instances of the TPS of
Type I in which direct peers and indirect peers
respectively fell the individual tall poppy.
In the rest of this section, we clarify the two
dimensions of manifestations of the TPS with
recourse to several vignettes of the TPS, each of
which belongs to one of the four quadrants depicted
in Table I.
Table 1 A categorisation of manifestations of the tall
poppy syndrome.
Tall Poppy
Detractor
Peer
Societal
Individual
Organisational
I-A, I-B
II
III
IV
Type I: Individual-Peer
A good example of this type of the TPS concerns
fire-fighter Royd Kennedy, who became a hero
when he helped save a 12 year old girls life from
under a burning petrol tanker in Manukau in 1990

(NZPA, 1997). Although Kennedy always claimed
that the rescue was a team effort, he lost friends as
well as contact with his colleagues after being
awarded the George Cross and the Charles Upham
award for bravery. Kennedy said that the rescue
changed his career in the fire service; he became a
victim of the TPS, a target for backstabbing and tags
such as Mr Glory Hunter.
Another example is furnished by the experiences of
Linda Black, a female soccer referee in NZ
(Malcolmson, 1996). She was ousted from the
national league on contestable grounds such as that
she failed to take action over swearing, something
that many other referees were culpable of. No
spectator or coach had laid a complaint to the
referees association about her conduct although
complaints from spectators and coaches against
other referees were ignored. Black was well
respected both on and off the field, a popular
referee with personality, which undoubtedly led to
her downfall.
The above two examples are of Type I-A insofar as
both Kennedy and Black were tall poppied by their
peers who were fire-fighters and soccer referees
respectively. Gifted children provide an instance of
the TPS of Type I-B wherein the detractors are not
direct peers, but indirect. Fiona Hall, the Aucklandbased mother of Olivia, an outgoing six year old girl
who has been assessed as having the reasoning of a
child who is twice her age, observes: I can proudly
tell friends if my child wins the cross-country race,
but not reveal she is in the top 2% of intelligence for
her age.
They would think I was skiting
(Henderson, 1999).
Type II: Individual-Societal
The frequent denigration of the supposedly high
incomes earned by NZ executives illustrates how the
TPS can also manifest in NZ at the individualsocietal quadrant of Table I. Interestingly, when it
comes to remunerating top executives, only Chinese
companies pay worse than New Zealand corporates
(Slade, 1997). Jeff White, outgoing chief financial
officer of Telecom (NZ), observes: When people
say to me, do you think Roderick Deane [former
chief executive of Telecom (NZ)] makes an
absurd[ly high] amount of salary, I say absolutely because hes dramatically underpaid (Steeman,
2000).
Roger Kerr, executive director of the Business
Roundtable in NZ, attributes the disparagement of
those on high incomes in NZ to a misplaced notion
of egalitarianism (Kerr, 1995). However, the
egalitarian values of the welfare state, widely held
before 1984 [the year of commencement of the
liberalisation of the NZ economy] have since been
replaced by a corporate model: really, there is a

distinction now between those with talent and those
without (Jeffrey, 1998).
James Klein, a consultant for Towers Perrin in New
York, cites the TPS as one of the reasons for the
comparatively lower pay levels in Australasia
(Slade, 1997). According to him, New Zealanders
and Australians do not have the Americans winner
takes it all mentality: We dont believe the person
at the top deserves the biggest reward. Australia is a
country that isnt comfortable with someone
standing out economically. It is the only major treaty
partner with the US that has means-tested social
security. Theres not a lot of comfort with people
earning a lot of money.
As a consequence, pay secrecy is an issue in New
Zealand, and all the more because of the NZ
Companies Act of 1993.
Under this Act, a
companys annual report must state, in bands of
NZD 10000, the number of employees who received
remuneration and other benefits in excess of NZD
100,000 during the relevant financial year.
To cite another example of Type II manifestations of
the TPS, Kiwi businessman and former model Jon
Andrews says he is disappointed to find the TPS
rife (Crowley, 1996). He gets angry when people
start knocking him and other expatriate Kiwis who
have gone to Australia and found success: I find it
amazing how negative people have to attack you. If I
did nothing with my life and I was sitting around fine. But I am not.
Type II1: Organisation-Peer
Peers of a tall poppy organisation also may strive to
discredit the tall poppy. In early 2000, UFM, a radio
station that is based in Hamilton, NZ, circulated up
to 1000 fliers a day around the city. The fliers
compared time The Edge, another radio station
which was the market leader in the region, devoted
to music, news, weather, ads, etc., and implied that
The Edge did not devote as much time to music as
UFM did (Holloway, 2000). The manager of The
Edges umbrella company described UFMs move
as an instance of the TPS: When you do well, this
happens. Interestingly, UFMs manager himself
agreed that there was a tall poppy element in his
stations promotion: We are aimed at people who
care about music and were surprised at the
difference in the amount the two stations played.
We just want to point out that difference. It is to our
advantage to let people know.
High-achieving stables afford another example of
Type III instances of the TPS. Owing to persistent
rumours that several high-profile stables were milk
shaking their horses with sodium bicarbonate in
staying races, shock random checks were conducted
on one occasion on horses participating in jumping

races at the Ellerslie racecourse in Auckland, NZ
(Dillon, 1997). (Bicarbonate is believed to delay the
onset of the effects of lactic acid on muscles, thereby
assisting stamina.) As it turned out, all the horses
tested returned satisfactory bicarbonate levels. The
racecourse detective said that the complaints were
the result of the TPS: From time to time, we get to
hear that major stables are doing these things. It is
always the B- are doing this and the O- are doing
that. In this instance, lesser-achieving stables were
discrediting their high-profile peers.
Type IV: Organisation-Societal
Public antipathy towards Telecom (NZ) and its
profits provide an example of Type IV
manifestations of the TPS.
Such antipathy,
according to Jeff White, was something foreign in
the United States where success in business was
revered. Mr White found New Zealanders lack of
reverence for big business hard to understand. He
said that he was very proud to work for Telecom, but
he was quitting because it was hard to fight uphill
against something like the TPS in New Zealand
(Steeman, 2000).
In a similar vein, Sir James Fletcher, the 85-year-old
patriarch of Fletcher Challenge, which was NZs
largest company till mid-1999 when it was broken
into four separate businesses, says business in New
Zealand is limited by the countrys TPS: I had two
prime ministers tell me to my face that Fletcher
Holdings had grown big enough. There was very
much a tall-poppy syndrome in business, that you
were not encouraged to grow because of fear of
dominance and lack of competition. Thats still
around today. (NZPA, 2000).
Conclusion
In this paper, we have induced a 2x2 framework for
categorising manifestations of the tall poppy
syndrome. We are using this framework as a
starting point to explore how the TPS manifests
within organizational settings; thus, we are focusing
on instances of Type I-A. Specifically, we are
undertaking an interpretive investigation into the tall
poppy syndrome in the context of peer evaluation
mechanisms in a New Zealand organisation. While
the investigation itself is the subject of a subsequent
paper, we frame it below in the context of extant
research on professional jealousy and peer appraisal
mechanisms.
Rather surprisingly, research into professional
jealousy per se is very limited. The only salient
study we have encountered is Thome (1993), who
presents very brief sketches of high-achievers who
were done in variously by their peers,
subordinates, and superiors. Further, some of the
measures she cites by which one can protect oneself,

such as diplomatically downplaying any personal
successes when they do occur (Thome, 1993, p.
30), are patently infeasible in the context of peer
evaluation procedures such as promotion processes
that call for peers input on ones application.
The conventional wisdom underlying peer appraisals
in organisations is that because the supervisors
ratings can be very subjective, it is important to have
appraisals done by different raters such as peers
(Kramar, McGraw and Shuler, 1997, p. 364). Peer
appraisals are regarded as being especially useful for
studying variables such as attendance, timeliness,
interpersonal skills, and group supportiveness, which
are behaviours that are more consistently observable
by peers. However, in spite of their stated
usefulness, peer appraisals are not often formally
used in organisations (McEvoy, Buller and Roghaar,
1988; Smith, 1990).
An important influence on the quality of peer ratings
and on user acceptance is the context in which the
ratings are used. Using a quasi-experimental design,
Farh, Cannella and Bedeian (1991) examined the
effects of purpose (evaluative versus developmental)
on both peer-rating quality and user acceptance. The
subjects were 67 undergraduates who were divided
into 11 project groups. Six groups conducted peer
ratings for evaluative (i.e., grading) purposes,
whereas the remaining 5 did so to provide
developmental feedback. Farh et al. found that peer
ratings conducted for evaluative purposes tended to
contain greater halo effect and to be less
differentiating, less reliable, and less valid than those
performed for developmental purposes. User
acceptance as measured by recommendation for
future use was more favourable under the
developmental than the evaluative conditions.
McEvoy and Buller (1987) examined user
acceptance of peer evaluation systems through
surveys of workers who had used such a system for
more than a year, the survey sample including 218
employees in a non-union food processing plant in
the western US. Their results showed higher user
acceptance if peer appraisals were used for
developmental rather than evaluative purposes.
Similarly, from a study of 261 undergraduate
business students who were enrolled in a managerial
skills course at a large midwestern university,
McEnery and Blanchard (1999) concluded that peer
reviews might be very useful sources for
developmental information as long as raters are
anonymous and organisational rewards are not at
stake.
Drawing upon his experience in designing and
implementing appraisal schemes in five different
organizations within a period of three years as a
consultant along with his colleagues, Fisher (1995,

p. 54) dwells in part upon various anxieties and
aspirations of the individuals being appraised. One
of the causes for concern is the appraisers possible
inability to, or malicious intention not to, conduct a
fair, objective and valid appraisal. Ramsay and
Lehto (1994), for instance, report a case where a
peer was given a score of 10 on 40 because the rater
didnt like the SOB.
Fisher himself recounts: Some people, in some of
the organizations in which we worked, reported that
working
in
close
proximity
with
their
supervisor/appraiser in a small, close-knit team, in
an open-plan office, was enough to diminish their
confidence in their appraisers objectivity. In this
context, people hope that an appraisal scheme
will be sufficiently well designed, implemented and
monitored for the effects of bias to be minimized.
Their objective is to avoid painful, personal,
consequences. Their fear is that appraisal will just
become another device which can be manipulated to
requite personal jealousies (1995, p. 54).
The foregoing discussion would suggest that if peer
reviews are being used for evaluative purposes, then
the appraisal scheme must be so designed and
implemented as to prevent the actualisation of
professional jealousies. Otherwise, a seemingly
anomalous situation can result whereby a highachiever is denied a merited outcome.
To be able to design and implement peer evaluation
mechanisms that curtail the expression of
professional jealousies, one needs greater
transparency into the process by which such
jealousies are enacted in the first instance. That
transparency is the goal of the interpretive
investigation mentioned earlier. We uncover the
social construction that underlies the enactment of
professional
jealousy
in
peer
evaluation
mechanisms, whereby shortcomings are imputed to
high-achievers and are legitimised as valid and
impartial bases for discrediting them. Central to this
social construction is the management of meaning
by peers. At an extreme, apparent bases for
commendation are transformed, either directly or
indirectly, into bases for censure.
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Dr V. Suchitra Mouly
Senior Lecturer
Department of Management & Employment Relations
The University of Auckland, Private Bag 92019
Auckland, New Zealand.
E-mail: s.mouly@auckland.ac.nz
Phone: 00 64 9 373 7599, x6848.
Fax: 00 64 9 373 7477.
Fairness of performance feedback and its impact on perceived ability

Paul L. Nesbit and Suzan Burton
Macquarie Graduate School of Management, Macquarie University
Abstract
One important mechanism through which
performance feedback influences motivation is via
its effect on perceived ability or self-efficacy. Selfefficacy, or beliefs about ones ability to perform a
particular task is developed through feedback that
one has successfully reached ones goals (Gist &
Mitchell, 1992). However, the relationship between
efficacy and performance is not simply a product of
goal-performance
discrepancy.
Perceptions
moderate the self-efficacy/goal-performance cycle.
We report on a study that investigated the impact of
perceptions about the fairness of the performance
feedback process and subsequent impact on
performance ability. Eighty subjects were surveyed
about their goals, efforts, and self-efficacy before
and after receiving performance feedback. We found
that self-efficacy after performance feedback is
influenced not only by performance but also by
whether people see their efforts as being equitably
rewarded. The implications for research and
management are discussed.
Keywords
Feedback; Fairness; Equity theory; Self-efficacy;
Goal-performance discrepancy
Introduction
efficacy through feedback of successful utilization

of skills and knowledge and in turn this leads to the
setting of more challenging goals. Additionally,
people with high self-efficacy are more resilient in
their effort to overcome obstacles in the pursuit of
goals (Wood & Bandura, 1989). Self-efficacy and
goal-performance discrepancies interact in a
dynamic reciprocal motivational process where selfefficacy not only influences performance, but is also
a product of the feedback process (Lindsley, Brass &
Thomas, 1995).
However, the relationship between efficacy and
performance is not simply a product of goalperformance discrepancy. Cognitions moderate the
self-efficacy/goal-performance cycle (Gist &
Mitchell, 1992). That is, how a person thinks about
feedback received will influence the assimilation of
performance into self-evaluations. For example,
research on the role of causal attributions of
performance has shown that in order for successful
experience to increase self-efficacy beliefs, one must
attribute performance to activation of skills rather
than extraneous aspects such as luck (Mone &
Baker, 1992; Thomas & Mathieu, 1994). Thus selfefficacy can be impacted by attributions about the
reasons for a particular result, not just by success or
failure in achieving a goal, or goal-performance
discrepancy.
Performance feedback plays an important role in the

motivation of behavior. Following performance,
feedback information is assimilated to provide selfevaluations on future task performance. Positive
performance discrepancies (where performance
exceeds goals) can lead to a sense of mastery over
task elements and enhancement of future
performance (Locke & Latham, 1990). In contrast,
negative
performance
discrepancies
(where
performance falls short of goals) can lead to
questioning of ability to perform tasks and lead to
spirals of performance decline (Lindsley, Brass &
Thomas, 1995).
Equity perceptions in feedback and selfefficacy
Self-efficacy is a key aspect influencing the effect of

feedback on motivation. Self-efficacy is defined as
an individuals perceptions about how well one can
execute courses of action required to deal with
perspective situations (Bandura, 1982, p.122).
Research has shown that people increase their self-
Perceptions of effort expended relative to reward

received
have
substantial
motivational
consequences, especially when they involve
comparisons with others (Greenberg, 1990). In the
case of under-reward a person may put in less effort
in order to balance the effort to reward perception.
Another aspect of perception that may influence the

interpretation of performance is the individuals
perceptions concerning the equity of outcomes of the
process. According to equity theory (Adams, 1963,
1965), performance is evaluated through effortreward comparison. This evaluation can result in a
perception of receiving equitable reward to effort
(equity), more reward relative to effort (overreward) or a perception of receiving less reward
relative to effort (under-reward).
Over-reward may result in higher levels of

motivation but it is also possible that people will
adjust their perception of what constitutes an
equitable effort-reward (or equity) ratio rather than
change their effort (Locke, 1976).
While equity perceptions (that is, Am I overrewarded, under-rewarded or receiving rewards
equal to my effort?) have been shown to have a
significant impact on motivation and performance,
the link between equity perceptions and self-efficacy
has not been studied. Given the relationship between
effort and performance on self-efficacy, the study of
equity perceptions, which focus on interpretation of
effort, may elucidate further insight into the
cognitive processing of feedback and assimilation
into self-efficacy perceptions. For example, consider
the situation where one receives feedback that ones
performance is better than ones set goal and also
greater than perceived effort. Since one has achieved
a positive performance discrepancy, self-efficacy
should rise as a result of evidence of performance
mastery (Bandura, 1982). However, over-reward
would also make one less certain about the role of
effort and skill in reaching that high performance,
since the outcome is greater than ones perceived
effort. Thus perceptions of the fairness of
assessment and feedback processes are hypothesised
to influence cognitive processing about the
attributions of performance and subsequently
influence self-evaluations of task ability.
Situational conditions for equity

perceptions
The previous discussion of equity perceptions
relative to self-efficacy may appear to neglect two
important elements of equity theory. First, equity
theory focuses on actual rewards received for
performance, rather than on the performance
outcome itself. Second, equity theory requires
comparison of effort to reward ratios with similar
others that form a referent group. However, many
settings exist where the performance and reward are
identical or highly related, and comparisons with
referent others is inherent in the evaluation.
For example, in academic settings students
performance and the rewards that students receive
(feedback) are one and the same. That is, grade
results for an exam or assignment are an indication
of performance and the students reward. In
addition, there is clear normative data about
performance grades as well as comparisons with
peers. Many organizational performance assessment
systems also provide performance feedback that
allows performance comparisons with other
employees and is directly linked to rewards.
Thus, in situations characterised by ease of

comparison of feedback and where feedback is
congruent with reward, we argue that an important
aspect of individual cognitive processing of
feedback is assessing the effort to reward ratio or
equity perceptions. In this study we investigate the
role of equity perceptions within the goalperformance relationship, and hypothesize that these
will have an influence on self-efficacy perceptions.
Specifically, we expect a positive association
between equity perceptions and self-efficacy, even
in the case of negative goal-performance
discrepancy.
Methodology
Participants were 80 post-graduate students enrolled
in an MBA program. They completed two surveys,
one at the beginning of the course and the second
after the provision of feedback on assignment
performance. Subjects completed the surveys using a
unique identifier code based on their mothers
maiden name and birth-date, which allowed
matching of surveys across time, while preserving
respondent anonymity. The first survey asked
respondents to estimate their grade for the next
assignment and asked them to rate their confidence
in reaching that grade. The second survey asked
respondents to indicate their actual level of
attainment, their perceptions of the equity of the
process, expectations concerning performance on
future assessment, and their level of confidence
about future performance.
Measures
Expected performance level was measured by asking
respondents to estimate the grade they expected get
for their subsequent assignment. The expected
performance could range from performance at
distinction level, credit level or pass level.
Assignments were essay based requiring students to
address a theoretical issue of the course.
Measures of self-efficacy were derived from a
probability rating for each of ten levels of
performance (95, 90, 85, 80, 75, 70, 65, 60, 55, 50
marks) using a 100 point certainty scale on which 0
= certain the performance cannot be achieved and
100 = certain that the performance cannot be
achieved. For each grade of performance,
participants were provided with historical data about
past distributions. This required students to confront
objective data about their probability of performance
in the next assignment while they make a number of
probability estimates. Stone (1994) has suggested
that with cognitively complex tasks (as with this
performance task) over-estimates of personal ability
are common and that efforts to induce mildly
negative expectations may improve performance.
Thus students must engage in reflection on their
ability relative to peer related data. The responses to

the scale are a measure of the strength of selfefficacy beliefs while those marks on which an
individual rated as greater than the historical
probabilities are effectively measures of selfefficacy magnitude. A composite measure of selfefficacy was created by summing those probability
ratings above the historical data probabilities (Lee &
Bobko, 1994).
Following performance feedback, goal performance
discrepancy was assessed as a comparison with what
individuals wanted to achieve using a nine point
scale (much less than I wanted/much more than I
wanted) with a neutral midpoint. Expected
performance discrepancy was assessed on a similar
nine point scale (much less than I expected/much
more than I expected). Since it was not clear
whether the estimated effects would be linear, both
scales were recoded to three categories (less
than/equivalent/more than).
Equity perceptions were measured in two ways:
effort-reward ratios were assessed by asking the
participant to assess the grade received relative to
that which they believed they deserved. This item
was based on a nine-point scale (much worse than I
deserved/much better than I deserved) with a neutral
midpoint. The nine-point deserve scale was also
recoded into three categories representing each of
the
equity
ratio
outcomes
(less
than
deserved/equal/more than I deserved) to allow for
non-linear effects. Equity perceptions were also
measured by a nine point fairness scale (extremely
unfair/extremely fair) with a neutral mid-point.
Results
Self-efficacy, expected and actual performance
Not surprisingly, self efficacy rating was
significantly associated with expected performance
(F= 21.60, p < 0.001). Individuals with higher selfefficacy expected to achieve higher levels of
performance. However efficacy at time1 was not
significant in predicting subsequent performance, as
shown in Table 1. Thus despite the effort to
encourage participants to reflect on their ability in
terms of estimating their self-efficacy, participants
found it difficult to accurately reflect on the variety
of judgements about the skills and subtasks
associated with the assignment.
Table 1 Prediction of performance
Efficacy time1
Df
2
SS
22358
MS
11179
F
1.18
Efficacy time2
115899
57949
7.92
p
0.31
2
0.00
1
Since efficacy at time 1 is not a significant predictor

of performance, one would expect updating of
efficacy after performance feedback. This occurred,

with a significant change in self-efficacy ratings
from time1 to time2 (t= 8.5, p < 0.001). Efficacy
ratings post feedback were significantly associated
with performance (F= 7.92, p= 0.001), suggesting
that efficacy ratings were adjusted following
feedback on performance.
Predicting self-efficacy
To examine the relationship between equity
perceptions, actual performance, goal-performance
discrepancies and self-efficacy, univariate analyses
were conducted using linear regression for
continuous variables (efficacy at time1 and
perceived equity) and univariate ANOVA for
ordinal variables (absolute performance, goalperformance discrepancy and effort-reward ratio).
Efficacy at time1, goal-performance discrepancy,
perceived equity, actual performance and effortreward ratio were all significant in predicting selfefficacy at time2 (p<0.05). The effect of expectedperformance discrepancy was marginal (p=0.068).
Details are shown in Table 2.
Table 2 Univariate analyses
DV: Efficacy at time2
IV
Efficacy time 1
Goal-performance
discrepancy
Expect-perf. discrepancy
Perceived equity
Absolute performance
Effort-reward ratio
0.28
11.71
St.Dev
0.11
5.20
T
6.10
2.25
p
0.008
0.027
R2 (adj)
5.4
4.4
7.99
11.28
df
2
2
4.32
5.42
SS
115899
66772
1.85
2.08
MS
57949
33386
0.068
0.040
F
7.92
3.69
2.6
3.7
p
0.001
0.029
A multivariate model was constructed to determine

the effect of equity perceptions on self-efficacy at
time2, after allowing for the effect of other factors.
Because the correlation between effort-reward ratio
and perceived equity was high (r = 0.585), and
effort-reward ratio was considered a more valid
measure of equity perceptions, perceived equity was
removed from the multivariate model. Effort-reward
ratio was then still significant in predicting efficacy
at time2. The results are shown in Table 3.
Table 3 Prediction of efficacy at time2
df
MS
Absolute performance
35097.8
2
Efficacy time1
35590
1
Effort-reward ratio
44445
2
Goal-performance
7155
1
discrepancy
Expect-performance
9403
1
discrepancy
Error
445082
Total
637558
Rsq= 0.301: Adjusted Rsq = 0.233
* no two-way interactions were significant
F
2.84
5.76
3.60
1.16
p
0.065
0.019
0.033
0.286
1.52
0.221
Discussion
Consistent with previous studies on self-efficacy, a
significant relationship was found between selfefficacy and goal-setting. High efficacy individuals
set more challenging goals. However, there was no
evidence of a significant relationship between selfefficacy at time1 and subsequent performance at

time2. The complexity and novelty of the task
appears to have reduced the accuracy of estimations
of self-efficacy at time1. This is not surprising,
given that students had limited experience with
which to predict their performance, and hence the
result would not be unexpected with a relatively
novel task (Gist & Mitchell, 1992).
Consistent with Thomas & Mathieu (1994) we found
that self-efficacy perceptions are not simply a
product of performance-goal discrepancies, but also
reflect how people interpret the performance
situation. We found a significant relationship
between equity assessment of effort to rewards and
self-efficacy, even after controlling for the effect of
goal-performance on self-efficacy. This finding
supports the hypothesis that equity perceptions have
a significant effect on self-efficacy, and hence on
subsequent performance. Thus in situations where
performance feedback allows comparison with
others or with normative performance data, equity
perceptions appear to be critical to performance
dynamics.
This study examined an academic feedback situation
and has implications for these settings in
demonstrating the importance of equity perceptions.
However, there are also clear parallels with the
feedback systems of many organizations.
Performance appraisal systems commonly link
rewards with performance ratings and these ratings
are typically anchored by statements that provide
normative values of performance. For example,
being rated on a scale with percentile rating
information would provide normative comparisons
and may trigger equity comparisons. This study
suggests that individuals who feel that the
performance appraisal system is unfair may
subsequently show lower self-efficacy, with
implications for subsequent effort and performance.
A number of research avenues arise from this study.
In this study we examined only a single episode of
performance
and
its
feedback.
Dynamic
performance cycles that incorporate feedback and
future goals are more representative of
organizational situations (Lindsley, Brass &
Thomas, 1995). The relationship between equity and
performance could therefore be explored across
multiple performance episodes.
Future research could also explore the boundary
conditions necessary for equity perceptions in
feedback settings. In this study we examined equity
perceptions in an academic feedback setting where
performance outcome and reward is one and the
same and where normative and peer comparison is
possible. This is a conservative stance derived from
current understanding of equity research. However,

the effect of equity perceptions in organizational
settings where peer comparison is sometimes less
explicit, warrants further research.
Research could also be linked with recent research
on equity sensitivity (ONeill & Mone, 1998).
Equity sensitivity suggests that some people are
more sensitive to violations of effort-reward. Thus
assessment of individual differences on this factor
could be incorporated into an exploration of whether
some people are more likely to initiate equity
perceptions in the feedback situation.
Conclusion
In conclusion, the results are encouraging for equity
theory research and for further exploration of the
motivational implications of performance. Equity
perceptions have received limited attention in
previous research on performance feedback which
has concentrated on the relationship between goalperformance discrepancy and self-efficacy. This
study suggests that while goal-discrepancy is
important in determining self-efficacy, further
exploration of the reasons for, and impact of, equity
perceptions may enhance our understanding of selfefficacy. A number of suggestions have been given
for further research.
References
Adams, J.S. (1963). Toward an understanding of
inequity. Journal of Abnormal and Social
Adams, J. S. (1965). Inequity in social exchange, In
Leonard Berkowitz (Ed. ), Advances in
experimental Social Psychology, Vol. 2 (pp.
267-299). New York: Academic Press.
Bandura, A. (1982). Self-efficacy mechanism in
human agency. American Psychologist. 37,
122-147.
Gist, M.E., & Mitchell, T.R. (1992). Self-efficacy: A
theoretical analysis of its determinants and
malleability. Academy of Management
Review, 17, 183-211.
Greenberg, J. (1990). Organizational Justice:
Yesterday, today, and tomorrow. Journal of
Management, 16, 399-432.
Lee, C., & Bobko, P. (1994). Self-efficacy Beliefs:
Comparison of five measures. Journal of
Applied Psychology, 79, 364-369.
Lindsley, D.H.., Brass, D.J., & Thomas, J.B. (1995).
Efficacy-performance spirals. The Academy of
Management Review, 20, 645-671.
Locke, E.A. (1976). The nature and causes of job
satisfaction. In M. Dunnette (Ed.). Handbook
of Industrial and Organizational Psychology,
Stokie, IL, Rand Nally, 1297-1349.
Locke, E.A., & Latham, G.P., (1990). Goal setting:

A motivational technique that works.
Englewood Cliffs, NJ: Prentice Hall.
Mone, M.A., & Baker, D.D. (1992). A socialcognitive, attributional model of personal
goals: An empirical evaluation. Motivation and
Emotion, 16, 297-321.
ONeill, B.S., & Mone, M.A. (1998). Investigating
equity sensitivity as a moderator of relations
between self-efficacy and workplace attitudes.
Journal of Applied Psychology, 83, 5, 805-816.
Thomas, K. M., & Mathieu, J. E. (1994). Role of
causal attributions in dynamic self-regulation
and goal processes. Journal of Applied
Stone, D.N. (1994). Overconfidence in initial selfefficacy judgements: Effects on decision
processes and performance. Organizational
Behavior and Human Decision Processes, 59,
452-475.
Wood, R.E. & Bandura, A.(1989). Impact of
conceptions of ability on self-regulatory
mechanisms and complex decision-making.
Journal of Personality and Social Psychology,
56, 407-415.
Dr Paul Nesbit,
Macquarie Graduate School of Management
Macquarie University
NSW 2109
AUSTRALIA
Email: Paul.Nesbit@mq.edu.au
Phone: 02 9850 9908
Improving confidence and accuracy in performance appraisals

Paul L. Nesbit a, and Robert E. Woodb
a
Macquarie Graduate School of Management, Macquarie University, Australia
b
Australian Graduate School of Management, University of New South Wales, Australia
Abstract
The paper presents findings of a study evaluating the
impact of training on performance appraisal on
rating accuracy and perceived rating ability. Fortyone supervisors from a telecommunications firm
took part in the training evaluated video vignettes
and completed a questionnaire measuring selfefficacy beliefs about rating, goal intentions, and
feelings about future rating behaviour. Supervisors
in a control group (n = 12) also rated the video and
completed the questionnaire. Trained supervisors
showed increased accuracy on video ratings of work
behaviour over the course of the training and
increase in self-efficacy measures. Control group
supervisors in comparison decreased their accuracy
of rating over the same time period while selfefficacy ratings remained constant. Impact of
training on satisfaction and goals of participants is
also presented.
Keywords
Self-efficacy, Performance Appraisal, Training
Introduction
While performance appraisals are commonly used
by organisations there is widespread dissatisfaction
with their use. Many managers do not think that the
information provided by appraisal justifies the effort
and stress associated with the ratings (Napier &
Latham, 1986). Performance appraisal often rely on
subjective judgement measures of performance
which tend to introduce distortion into the
measurement process (Smith, 1986). For example, it
is a common finding that performance appraisal
ratings suffer from extreme leniency effects,
resulting in 70-80 per cent of those being assessed
being rated in the top two categories of rating scales
(Landy & Farr, 1980; Longenecker, Sims and Gioia,
1987). Thus the resulting data from performance
ratings with such lack of discrimination would be
ineffective for making the decisions such as salary,
promotion or training.
Two strategies have traditionally been advocated to
address the problems with subjective performance
judgements: rating scale development and rater
training. Studies that compare rating scale designs

have not demonstrated much improvement in
performance ratings (Borman, 1991; Gomez-Mejia,
1988; Landy & Farr, 1980 ). Rater training,
however, is an area that has received considerable
attention and has shown potential for improving the
effectiveness of performance ratings. While early
rater training addressed rating errors (Hedge &
Kavanaugh, 1988; Pulakos, 1984) there has been a
shift away from rater error training towards training
managers how to actually rate tasks and to agree on
the forms and standards used within an organisation.
This shift in emphasis from rater error training to
focus on the process of rating is of considerable
importance when we consider that most ratings data
are used for purposes of comparison between
different staff. Therefore, individual biases may be
less relevant in determining the overall validity of
rating data than a common agreement on the
standards to be used.
One approach that has received considerable
attention is frame-of-reference (FOR) training
(Bernardin & Buckley, 1981). The FOR strategy
seeks to provide all managers with a common set of
standards for the behaviours that define effective
performance for each of the criteria on the rating
scale.
Research on Frame-of-Reference
Training
As described by Bernadin and Buckley (1981) FOR
training involves a number of steps. First,
participants are given job descriptions and instructed
to discuss duties and qualifications they believe are
necessary for the job. Second, participants are given
case examples comprising critical incidents that
represent outstanding, average, and poor job
performance for different performance areas. These
case examples are rated by participants using
behaviourally based rating scales. Third, the ratings
are discussed and participants receive feedback on
the accuracy of their ratings, based on normative
data. Through this process, managers who
participate in the training program develop a
common set of standards as to what constitutes
different levels of performance for the criteria used
in appraisals and a common schema for assessing

performance.
To date, research focusing on the effectiveness of
FOR training indicates that it is extremely effective
with respect to rating accuracy (Pulakos, 1984;
Sulsky & Day, 1992, 1994; Woehr, 1994). In a
meta-analytic review of performance appraisal rater
training, Woehr and Huffcutt (1994) found an
average effect size of .83 for studies comparing FOR
training with control or no training.
Although the findings for the overall efficacy of
FOR training are robust, understanding of the
underlying reasons for this accuracy are unclear. In
addressing the causes of accuracy, attention has
focused on the impact of FOR training on
participants cognition. FOR training is suggested to
lead to the development of prototypes or cognitive
schema that aid in the creation of impressions about
ratee behaviour (Sulsky & Day, 1992) and recall of
specific behaviour information about performance
(Woehr, 1994).
The research on development of cognitive schema
during FOR focus on the evaluative judgement
process of performance appraisal in laboratory
settings. In organisations performance ratings are
embedded in a process that has substantial
consequences and personal relevance to raters and
ratees. Consequently, many personal and
organisational factors are likely to be reflected in the
appraisal process and can adversely influence rater
cognitions. For example, raters beliefs or selfefficacy about their ability to successfully carry out
performance appraisals may be an important
mediator of accuracy.
Self-efficacy or a trainees perceived capability to
perform a specific task (Gist, 1987) has received a
great deal of attention in the training literature. Selfefficacy has been shown to predict performance in a
range of training situations including training of
computer skills (Compeau & Higgins, 1995,
Venkatesh & Davis, 1996), complex decisionmaking tasks (Ford, Smith, Weissbein, & Salas,
1998), speed reading (Karl, OLeary-Kelly, &
Martocchio, 1993) and career counselling training
(Heppner, Multon, Gysbers, Ellis, & Zook, 1998). In
short, previous research has substantiated the
important role that self-efficacy plays in behaviour
change in a variety of work settings. As yet the
impact of FOR training on participants self-efficacy
beliefs has not been examined.
The present study reports on a experimental
evaluation of FOR training that examined the impact
of training on self-efficacy. Unlike many studies that
use student samples in non-work settings, the study
evaluates a FOR training program for supervisors
conducted in a large telecommunications firm.

Training was carried out over three days, the first
two days being conducted on consecutive days and
the third day occurring approximately two weeks
later. Thus the length of training provided an
opportunity for examining the psychological and
skill changes of participants over an extended period
of time.
Previous research (Pulakos, 1984; Sulsky & Day,
1992, 1994; Woehr, 1994), has demonstrated that
FOR trained raters provide substantially more
accurate ratings than do other types of (or no)
training. It is, therefore, expected that FOR trained
raters in this study would be more accurate than
controls.
Hypothesis 1 : Participants undergoing FOR training
will demonstrate superior rating accuracy in
comparison with control raters.
Self-efficacy and FOR Training
Self-efficacy is defined as peoples judgement of
their capabilities to organize and execute courses of
action required to attain designated types of
performances. It is concerned not with the skills one
has but with judgements of what one can do with
whatever skills one possesses (Bandura, 1986,
p.391). Self-efficacy expectations are task specific
derived from four cues within a situation: enactive
mastery, vicarious learning, verbal persuasion and
physiological arousal. The FOR training procedure
provides a rich environment for forming and
reinforcing self-efficacy beliefs around performance
appraisal rating. There are three ways that FOR
training may encourage self-efficacy. First , FOR
trainees engage in the experience of rating a number
of case examples and gaining feedback on
performance discussion in a non-threatening and
supportive environment which is an ideal situation
for development of self-efficacy through enactive
mastery. Second, FOR training encourages vicarious
learning since it is carried out among peer groups of
raters with similar skill levels and experiences who
share the need to develop skills to carry out ratings
in the near future. Observing the development in
performance rating skills of ones peers influences
the observers perceptions of their own performance
rating ability. Third, trainers not only facilitate
discussion of viewpoints but act as coaches
encouraging participants in their learning process.
Thus it is expected that an important outcome of
FOR training will be the development of
participants self-efficacy.
Hypothesis 2: FOR training will increase selfefficacy beliefs of participants.
Self-efficacy beliefs regulate performance by
determining the task choices, effort, and persistence
and is also linked with self-aiding or self-hindering

thought patterns that accompany performance
(Wood & Bandura, 1989). Individuals with high
self-efficacy beliefs are, therefore, more likely to set
themselves challenging goals, are confident of their
ability to reach goals and display determination and
persistence in their efforts to reach their goals. Thus
it is expected that FOR training participants will
develop positive attitudes towards future
performance appraisals and adopt challenging goals
in terms of expected rating accuracy, clarity of
communications, and level of justifications for
ratings.
Hypothesis 3: FOR trained participants will express
higher satisfaction for the performance appraisal
process in comparison with control raters.
Hypothesis 4: FOR trained participants will be more
goal focused for the performance appraisal process
in comparison with control raters.
communication and interview skills were also

discussed. Day 3 was mainly used to reiterate the
content of the first two days and elaborate on
interview techniques and organisational issues
surrounding the performance appraisal system.
Stimulus Materials
The stimulus set for measures of rating accuracy
consisted of videotaped vignettes. While many
studies use written case examples. Kinicki, Hom,
Trost & Wade (1995) have suggested that the use of
written cases may unintentionally prime ratee
categorisation because they impose lower demands
on selective attention and encoding than do
videotaped cases. Thus videotaped incidents are
possibly a more difficult and valid assessment of
training accuracy. The videotape was made in
consultation with the organisation and was
specifically targeted to the supervisor group being
trained. The organisation intended to use the
videotape as a training resource for future FOR
training.
Methodology
Subjects
Three groups of supervisors (n=41) undergoing FOR
training in a telecommunications firm constituted the
experimental group. A separate group of eleven
supervisors acted as control group. The experimental
group supervisors had an average age of 44 years
(SD=5.7 years) and had worked with the
organisation for twenty-four years (SD=7).
Supervisors in the control group came from similar
positions in the organisation (same business unit and
hierarchical level) and had an average age of 42
years (SD=9 years) and organisational tenure of 23
years (SD=9.5 years). Thus the two groups were
well matched in terms of age and experience. The
telecommunication firm was introducing a formal
appraisal scheme so supervisors in the study had
only limited experience in performance appraisal.
The experimental group supervisors took part in the
FOR training as a precursor to actual performance
appraisal interviews they were to carry out in the
near future. The control group were supervisors in a
different geographical area, who duplicated the
evaluation procedures but did not receive any
training. They were not scheduled to carry out
performance appraisal interviews in the near future.
Rater training
Subjects went through the FOR training in three
groups. Content of the program followed closely the
outline of FOR training discussed above. Days 1 and
2 were taken up mainly by discussion of behavioural
standards and training on use of behavioural ratings.
Participants had numerous opportunities for
evaluation of written cases of behaviour and
discussion of ratings. Other issues such as
The video showed six vignettes consisting of critical

incidents associated with customer service and teamwork, two dimensions on which supervisors in the
study would have to evaluate their subordinates. The
first three scenes focused on customer service
behaviour representing outstanding, average, and
unsatisfactory performance. The second set of
scenes showed an office based scenario focusing on
teamwork behaviour, again representing three levels
of performance. Each scene last approximately two
minutes.
Accuracy Measure
Participants were asked to rate the behaviour of the
main character in each of the six videotaped
vignettes using the following scale.
5 = Exceeds all job requirements
4 = Mostly meets job requirements
3 = Consistently meets all job requirements
2 = Mostly meets job requirements
1 = Limited match between job requirements and
staff members skills/experience.
Accuracy was the measure of the difference between
the supervisors ratings of the videos and the correct
ratings for the behaviours shown in each video
scene. The difference was squared to ascertain the
absolute difference scores. These were summed and
averaged to find an overall index score of accuracy.
Correct ratings for the video scenes were established
by the training department of the organisation in
consultation
with
experienced
personnel.
Improvements in the accuracy of ratings of the
videos (less errors) was evidence that the training
program improved the rating skill levels of the

participant supervisors.
Psychological Measures
Participants completed a 16 item questionnaire that
used a 7 point Likert scale (1= strongly disagree, 7 =
strongly agree. The questionnaire contained 10
questions examining participants beliefs about their
skills in performing a successful performance
appraisal. Questions relating to self-efficacy
assessed trainees beliefs about their ability to
collect information, to make assessments, to justify
ratings to ratees etc. An example of a typical
question is I believe that I am able to assess and
measure a staff members performance against skills
and behaviours identified for each job. There were
3 questions assessing trainees feelings about
carrying out performance assessments asking them
to report on satisfaction, stress and anxiety. There
were also 3 questions about trainees intentions and
effort regarding goals for appraisals in the future.
Self-efficacy: Ten questions from the questionnaire
concerning beliefs about skills in performing a
successful performance appraisal were combined
and averaged into a single index of self-efficacy.
(Cronback alpha =.92)
Satisfaction: Three questions from the questionnaire
concerning satisfaction in carrying out future
performance appraisals were combined and averaged
into a measure of satisfaction. (Internal reliability
Cronback alpha=.90)
Challenging Goals: Three questions from the
questionnaire questions concerning goals of future
performance appraisals were combined and averaged
into a measure of goal-setting. (Cronback alpha r
=.84)
Evaluation Procedure
Prior to the commencement of training, participants
were asked to watch and rate the video scenes and to
complete the questionnaire. Participants were
informed that their ratings of the videos was being
used for an evaluation of the training study and that
no individual results would be made available to the
company. Data was collected by one of the
researchers and sealed in front of participants.
The questionnaire and videotape viewing and
evaluations were also carried out at the end of the
first day of training and at the end of the second day
of training (These training days were consecutive).
Only the questionnaire was used at the day three
training (which occurred two weeks after the first
two days training) and was carried out at the start
and the end of the days training.
The control group duplicated the evaluation of the

training group. However, at the time of writing, the
control group had not undertaken the third day
questionnaire evaluation.
Results
Rating accuracy
Table 1 shows the mean scores and (standard
deviation in brackets) for measures of accuracy, selfefficacy, satisfaction and goal focus for each
occasion of measurement for the FOR training group
and the control group.
Table 1 Mean Scores for Self-efficacy, Satisfaction
and Goal-Focus (Standard Deviation in brackets)
Accuracy^
(Higher accuracy = low error scores)
Pres End D1 End D2
FOR
4.6
3.7
1.9
(2.4)
(1.8)
(1.7)
Control 4.8
4.8
5.7
(1.8)
(1.8)
(1.5)
Self-Efficacy
( High score = higher self-efficacy)
Day 1 End D1 End D2 Day 3 End D3
FOR
5.2
5.66. 6.0
5.7
(.84) (.76) (.76) (.75)
Control 5.9
5.9
5.9
(.59) (.52)
(.53)
-
6.1
(.59)
-
Feelings
(High score = higher satisfaction)
FOR
3.9
3.6
3.5
4.1
3.9
(1.5) (1.5) (1.7) (1.6) (1.7)
Control 3.1
2.8
2.4
(1.8) (1.7) (1.8)
Goal-Focus
(High score = higher goal-focus)
FOR
6.3
6.5
6.6
6.3
6.3
(.67) (.5) (.55) (.66) (1.12)
Control 6.2
6.2
6.3
(.56) (.78) (.53)
^ Elevation measures of accuracy showed similar results
The FOR training significantly increased accuracy

on video ratings over the course of the two days of
training. Figure 1 shows the accuracy for the training
and control groups. Before training, supervisor
ratings of the videos in both the training and control
groups varied widely from the correct ratings. Both
groups scored similar levels at the pre-training
evaluation of the video ruling out any argument that
the improvements observed in the training group
were due to inherent rating skills before training.
efficacy measures, i.e., pre-day 1 with end day 1 and

with end day 2 and end day 1 with end day 2, we
used paired t-tests. Because there are multiple t-tests
a Bonferroni adjustment is made for inflated type I
error (alpha = .05/3 = .016).The comparison between
pre-day 1 and day 2 self-efficacy was significant (tvalue = 7.7, p<.001).
Figure 1 Accuracy (95% CI of Means)

The average error score for the training group
dropped significantly by the end of the first day of
the FOR training and again further declined by the
end of day 2. The average error in the ratings of
supervisors in the training group reduced from 4.6 to
1.9 as a result of the training.
Statistical comparison (t-tests t-value = -7.16) of the
two groups showed that supervisors who received
training were significantly(p<.001) more accurate in
their ratings at the end of the training program than
the control group. Therefore, the improved rating
accuracy of supervisors in the training program
could be attributed to the content of the training and
was not due to the experience of rating the video
several times or other factors unrelated to the
content of the training program. Supervisors in the
control group did not improve in their rating
accuracy at the end of day 1 and became slightly less
accurate the third time they rated the videos, at the
end of day 2.
Figure 2 Self-efficacy (95%CI of Means)

Figure 2 shows the changes in the levels of
motivation for the self-efficacy, goal-focus and
satisfaction for supervisors in the training and
control groups. The results for the training groups
show that supervisors self-efficacy measures for the
appraisal task rose progressively over the initial two
days training and remained high after day 3. Since
we were interested in specific comparisons of self-
The confidence levels of the control group, which

were relatively high from the beginning, did not
change as a result of completing the rating exercises.
The higher confidence levels of the control group at
the pre-session and end-of-day 1 measures are
probably due to the fact that they were not required
to conduct performance appraisals. Supervisors in
the training group completed the surveys with the
knowledge that they would have to rate and counsel
their staff on their return to work. By the end of the
training, their confidence had risen to match that of
the control group. This was despite the greater
challenges that they faced in relation to the appraisal
process.
Supervisors in both the training condition and the
control group reported high levels of goal-focus (see
table 1). Thus both groups were committed to rating
their staff accurately and to putting the effort in
required for the process of appraisal and counselling.
For the control group, these judgements were made
in relation to the general requirements of appraisal
and not specifically in relation to future appraisals.
Therefore, we can assume that observed differences
in the rating accuracy between the training and
control groups were not due to differences in their
commitment to doing a good job in rating their staff.
Questions that assessed supervisors feelings about
the rating and counselling tasks required as part of
the appraisal process were asked in relation to future
appraisal for the training group and in general for the
control group. The two groups started out with
similar levels of (dis)satisfaction with the
requirements of the appraisal processes. For the
training group these feelings about the appraisal
process remained relatively constant throughout the
training programs. The control group became
increasingly dissatisfied the more they worked at the
rating task without training. While no significant
differences were found (see table 1), the training
group had generally greater satisfaction about the
requirements for them to appraise their staff than the
control group despite the obvious stress associated
with carrying out performance appraisal process in
reality.
Discussion
The primary purpose of the study was to examine
the impact of FOR training on participants rating
accuracy and self-efficacy beliefs about carrying out
performance appraisals. The study also examined the

impact on participants reports of satisfaction and
goal focus intentions for future performance
appraisals.
Consistent with previous research investigating the
effect of FOR training on rating accuracy (Pulakos,
1984, Suslky & Day, 1992; 1994; Woehr, 1994) the
results showed that FOR raters were significantly
more accurate than control raters who had not
received training. While many researchers had
examine the effects of FOR training on participants
cognition, principally categorisation effects on
memory, no attention had been given to selfefficacy, despite the relevance of this concept to
training success in other areas.
Our results showed that self-efficacy beliefs about
performance appraisal rating rise in the subjects
undergoing FOR training. FOR training gives
participants opportunity for practice and feedback of
evaluative judgements that they will be required to
make in future performance appraisal situations.
Additionally, participants see colleagues improving
in performance and are encouraged by training
facilitators to improve performance. Thus
experience, modelling and persuasion, which are
fundamental to development of self-efficacy (Gist,
1987), are inherent in FOR training.
organisation. It is possible that dissatisfaction

expressed related to dissatisfaction with the
organisational situation rather than the process of
performance appraisal. Given the significant
personal consequences for raters and ratees
associated with the performance appraisal process in
this organisation the maintenance and slight increase
in training group satisfaction is an encouraging
outcome.
Intentions regarding goals for performance
appraisals is not of course the same as carrying out
the process of a performance appraisal. A better test
regarding goals would be to assess the quality of the
performance appraisal process in practice. Since the
control group were not in a position to actually
perform an appraisal this test was not possible.
Future research needs to better assess the impact of
FOR training on the actual behaviour of raters
during the appraisal process.
Overall, the study showed a significant support for
the contention that FOR training impacts selfefficacy beliefs and future research on the
behavioural correlates of this belief can utilise a
substantial literature to further develop explanations
of the relationship of FOR training and rater
performance.
Conclusion
The finding of an increase in self-efficacy is
important as it provides a theoretical basis to
understand and explain the success of FOR training.
Self-efficacy beliefs are associated with increases in
performance because efficacious individuals pursue
more difficult tasks, are more persistent and
motivated in their approach, and more positive in
thoughts that aid resilience in the face of obstacles
(Wood & Bandura, 1989). These cognitive and
motivational correlates of self-efficacy may enhance
the process of rating by reducing raters reluctance
to carry out appraisals, and encouraging raters to
organise themselves better in their conduct of the
appraisal.
The hypotheses regarding satisfaction and goalfocus tested these ideas. Neither of these two
hypotheses were significant. However, the results
for satisfaction where in the predicted direction.
Trained supervisors kept a positive attitude to future
ratings whereas the control supervisors reduced their
satisfaction.
While questions regarding satisfaction for future
performance appraisals were asked, it is possible
that satisfaction levels expressed were not solely
related to perceptions of supervisors confidence in
carrying out performance appraisal. In the
organisation studied, the performance appraisals
were instituted as part of a process to downsize the
The purpose of this present study was to examine the

effects of performance appraisal training on
accuracy and self-efficacy beliefs. It was
hypothesised that both accuracy and self-efficacy
should rise as a result of training and that selfefficacy would be associated with reducing anxiety
about future performance appraisal interviews. The
results of this study support these hypotheses. The
results provide further support for the positive
impact of frame-of-reference training on rating
accuracy and suggests that self-efficacy is an
important cognitive change associated with such
training.
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Childrens ethnic prejudice: A comparison of approaches

Drew Nesdale
School of Applied Psychology, Griffith University, Gold Coast Campus, Australia
Abstract
Two
studies
assessed
predictions
from
sociocognitive theory (SCT, Aboud, 1988) and social
identity development theory (SIDT, Nesdale, 1999a)
concerning the development of childrens ethnic
prejudice, with 8, 10 and 12 year old AngloAustralian children participating in the first study,
and 6, 9 and 12 year olds participating in the second
study. In both studies, the children listened to a
story about an ingroup Australian boy and an
outgroup Vietnamese (Study 1)/Chinese boy (Study
2) who displayed equal numbers of stereotypeconsistent (Study 1)/positive traits (Study 2) and
stereotype-inconsistent (Study 1)/negative traits
(Study 2). The results of the two studies revealed
that, as they increased in age, the children
remembered more of the ingroup characters
stereotype-inconsistent/negative
traits
versus
stereotype-consistent/positive traits, and they liked
him less. In contrast, with increasing age, the
children remembered more of the outgroup
characters stereotype-consistent/positive traits
versus stereotype-inconsistent/negative traits and
they liked him more. The results are discussed in
terms of their greater support for SIDT versus SCT.
Keywords
Children; Prejudice; Stereotypes; Attitudes
Introduction
Ethnic prejudice (i.e. unjustified feelings of dislike
or hatred towards members of ethnic minority
groups) has long been a significant social problem in
ethnically diverse countries (e.g. Brown, 1995).
Indeed, contrary to earlier reports that prejudice was
systematically declining, recent evidence suggests
that prejudice may simply be being expressed in new
disguises, and may actually be increasing (e.g.
Dovidio & Gaertner, 1991; Duckitt, 1991; Pettigrew
& Meertens, 1995).
While the presence of ethnic prejudice is
problematic in any sector of the community, the
possibility that it may be widespread among school
age and even younger children (Aboud, 1988), is of
particular concern. During this period, children
acquire social knowledge and attitudes which may
endure into adulthood and which, in the case of
ethnic prejudice, have the potential to lead to shortand long-term psychological and physical harm to
young members of minority groups, and may prove
to be long lasting (Durkin, 1995).
The aim of this paper is to briefly outline the main
theoretical approaches to accounting for childrens
ethnic prejudice and the extent to which each is
supported by research findings. Two studies are
then outlined which were designed to test the main
theoretical approaches to the development of
childrens prejudice.
Approaches to the Development of

Childrens Prejudice
Three main approaches to accounting for childrens
ethnic prejudice have been proposed. The social
reflectance approach contends that ethnic prejudice,
when it does appear in children, does not actually
emerge until they are well into middle childhood,
around 9 or 10 years of age (e.g., Proshansky, 1966).
By this time it is considered that the process of
ethnic attitude differentiation, integration and
consolidation has been progressed by the childs
attainment of ethnic constancy and the childs
adoption of the language of racism. The most
widely accepted version of this approach places
considerable emphasis on the influence of the childs
social environment, particularly the impact of the
childs parents and peers. It is assumed that children
simply learn their ethnic attitudes from these sources
in the same way that they learn other social
behaviours (e.g., Allport, 1954).
In stark contrast to the preceding approach,
sociocognitive theory (SCT, Aboud, 1988, Aboud &
Doyle, 1996a,b), contends that most, if not all,
children display ethnic prejudice by 5-7 years of age
and that there is no strong evidence that childrens
prejudice is influenced by the attitudes of parents or
peers.
Instead, Aboud argues that childrens
prejudice reflects their developing perceptualcognitive processes.
Initially, children are
considered to be dominated by affective-perceptual
processes associated with fear of the unknown and
attachment to the familiar. Perceptual processes
subsequently dominate, increasing to a peak between
5-7 years, with preference for the (similar) ingroup
and rejection of the (different) outgroup being
determined primarily by the outgroups physical

attributes (e.g., skin colour, language, body size).
Thereafter, cognitive processes take ascendancy
with the advent of the concrete operational stage of
cognitive development and, later, formal operational
thinking, the effect being that the child is
increasingly able to understand the individual rather
than the group-based qualities of people, which
thereby results in a reduction in their ethnic
prejudice.
Compared with SCT, the more recently developed
social identity development theory (SIDT, Nesdale,
1999a) proposes that children who display ethnic
prejudice pass through four sequential phases
(undifferentiated,
ethnic
awareness,
ethnic
preference, ethnic prejudice) which vary in terms of
the social motivations and behaviours which
characterise them, and the events which precipitate
changes from one phase to the next. Of central
importance is the assumption that by 4 or 5 years of
age, children in multi-ethnic communities who are
typically in the ethnic preference phase are aware
that the members of some ethnic groups are better
off and more highly regarded than others and that
they make comparisons between their standing as a
member of one ethnic group and the members of
other groups. SIDT also assumes that by this age
children prefer to be members of high rather than
low status groups because they derive social selfesteem from the former but not the latter. The
implication for children is that membership of the
dominant cultural group prompts a focus on, and
preference for that group.
Importantly, rather than ethnic prejudice diminishing
from 7 years onwards, SIDT proposes that it is
precisely in this period that ethnic prejudice actually
emerges and crystallises in those children who come
to hold such attitudes. According to SIDT, the
transition from ingroup preference to outgroup
prejudice depends upon the strength of social
identity processes which motivate the child to adopt
the negative ethnic attitudes prevailing in his/her
social group. SIDT proposes that the probability of
children adopting their social groups ethnic
prejudice as their own will increase as (1) that
prejudice is increasingly shared and expressed by
(i.e., is normative to) members of the social group,
and (2) members of the dominant group increasingly
feel their well-being is threatened in some way by
members of the ethnic outgroup(s).
In sum, although the preceding treatment is
necessarily abbreviated, it is clear that markedly
different theoretical accounts of the development of
childrens ethnic prejudice have been proposed. The
accounts differ in terms of both the age sequence
and the importance accorded to sources such as
parents and peers, as well as the mechanism through

which prejudice is acquired.
Research Findings
Although there has been an extensive amount of
research which has addressed the development of
ethnic prejudice in children, it is fair to say that
empirical support for each of the preceding models
is currently mixed.
In relation to the social reflectance approach, for
example, although significant correlations between
the ethnic attitudes of parents and children have
been reported, other studies have reported low or
non-existent correlations (e.g., Mosher & Scodel,
1960; Frenkel-Brunswik & Havel, 1953; Aboud &
Doyle, 1996b). Similarly, Aboud & Doyle (1996a)
reported a significant peer effect in one study, but
not in another (Aboud & Doyle, 1996b, Study 2).
In relation to sociocognitive theory, research has
revealed evidence of apparent linkages between the
development of childrens cognitive abilities from 3
to 12 years of age and several types of ethnic
cognitions such as ethnic flexibility and ethnic
constancy (Aboud, 1984), that the acquisition of
concrete operational thinking coincided with a
decrease in ingroup prejudice, and that the mastery
of conservation preceded the reduction in prejudice
(e.g., Doyle, Beaudet & Aboud, 1988); Doyle &
Aboud, 1995). At the same time, however, although
Doyle & Aboud (1995), for example, found a
linkage between childrens conservation and
prejudice, up to 50% of the children who could
conserve, still displayed prejudice.
Further, although there are certainly a number of
studies which have reported an unambiguous
decrease in prejudice after 7 years, as sociocognitive
theory would predict, others have reported not only
that ingroup prejudice remained at the same level
from 7 to 12 years, but that ingroup prejudice
actually increased during these years (see Nesdale,
in press, for a review). Perhaps more importantly,
however, there are good reasons for questioning
whether the data which sociocognitive theory is
founded seeks to explain actually comprises ethnic
prejudice. In short, much of the extant childrens
prejudice data has been obtained in studies in
which researchers have typically used a variation of
the doll preference technique in which children
indicate a preference for, or assign positive or
negative traits to, ethnically differentiated dolls or
photos. In view of the transparency of this measure,
it is arguable that the decline in ingroup preference
by dominant group children after 7 years of age
which has been reported in some studies may simply
be a social desirability response (e.g., Katz, 1976).
In addition, given that childrens doll preferences are
unrelated to their friendship and play preferences,

there are strong grounds for concluding that
childrens doll preferences reflect their ingroup
preference rather than their outgroup prejudice.
Less explicit measures of prejudice suggest that real
racial cleavage, as well as racial tension and
epithets, do not occur until children are at least 8 or
9 years of age (Nesdale, in press).
realistic because of the array of information

presented, as well as the other issues which can be
addressed (e.g., what did the characters wear, what
did they do, etc.).
Finally, in relation to social identity development

theory, research has indicated that children as young
as 5 years of age are sensitive to the status of their
social group, that they like their group more, and see
themselves as being more similar to the ingroup
members, when they have high versus low status
(e.g., Bigler & Lieben, 1992, 1993; Nesdale &
Flesser, in press). Low versus high status group
members also seek to change their group
membership and, like adults, their liking and
similarity ratings of ingroup and outgroup members
are influenced by whether they can change groups
(e.g., Nesdale & Flesser, in press). Finally, there is
some evidence that, in the absence of outgroup
threat, children in the middle childhood period
remain primarily focused on the ingroup and its
members, rather than feeling prejudice towards
members of ethnic outgroups who happen to be in
the vicinity (e.g., Nesdale, 1999a). However, there
is currently no evidence relating to the self-esteem
effects of ingroup versus outgroup membership, or
of the effects of outgroup threat on childrens
tendency to display outgroup prejudice.
Two hundred and seventy Anglo-Australian children

participated in the first study (Nesdale, 1999b) with
equal numbers of eight, ten and twelve year old
children. The children listened to a story about an
ingroup Anglo-Australian boy and an outgroup
Vietnamese boy, each of whom displayed equal
numbers of ethnic stereotype- consistent and
inconsistent traits and behaviours. The childrens
memories for the stereotype-consistent and
inconsistent traits were then assessed, together with
their liking ratings (on bi-polar scales) of each of the
story characters.
In sum, the current situation is that there are several

competing accounts of the development of ethnic
prejudice in children, and there are research findings
which are consistent, and sometimes inconsistent,
with each approach. The present paper describes
two studies which were designed to shed some
further light on these competing claims, particularly
those of SCT and SIDT. Central to this objective
was the use of a technique which tackled the
transparency issue by seeking to reduce the salience
of ethnicity and the focus on prejudice. This was
accomplished by utilising a paradigm familiar to
children which provided a range of additional and
more realistic information concerning the target
stimuli and by seeking responses on a number of
other context-relevant but prejudice-irrelevant,
measures.
This technique the intercultural
narrative test (INT) - involves children reading (or
being read) a short story involving two characters,
one being of the same, and the other different,
ethnicity to the subject (e.g., Nesdale &
McLaughlin, 1987). The story is thematic (e.g., a
day at the zoo) and each character reveals a mixture
of positive and negative traits and behaviours as the
story unfolds. Thus, the salience of ethnicity, as
well as the focus on prejudice, are both deemphasised and the task is made more familiar and
Study One
Introduction and Method
The first question of interest concerned whether

there would be age-related changes in memory for
stereotype-consistent
versus
-inconsistent
information, and whether those changes would be
interactively influenced by the ethnicity of the story
character
(i.e.,
Anglo-Australian
versus
Vietnamese). Research to date with adults has
revealed a response bias for stereotype-inconsistent
versus -consistent information, particularly when a
recognition rather than a recall measure of memory
is utilised and there are memory capacity constraints
(see Hamilton & Sherman, 1994, for a review).
Bearing in mind the array of information to be
presented about the two story characters in the
present study, sociocognitive theory would predict
that as children become older, they would
increasingly individualise both story characters and
hence would remember more of the stereotypeinconsistent versus -consistent information for both
story characters. In contrast, SIDT would predict
that more stereotype-inconsistent information would
be remembered, but more so in relation to the
ingroup story character whose stereotypeinconsistent traits would attract the childrens
attention because they would be surprising and
would violate an expectancy of the traits likely to be
displayed by ingroup members.
The second question centred on the childrens liking
for the two story characters. Consistent with
sociocognitive theory, it would be predicted that the
youngest children would prefer the ingroup
character but that this ingroup preference would
systematically decrease with age, as the children
increasingly took into account the individual and
stereotype-inconsistent qualities of both story
characters. In contrast, consistent with SIDT, it
would be predicted that, regardless of age, the

Analysis of the childrens recognition memory
scores revealed main effects for age, story character
and information consistency. Of particular interest
to the present study, however, were the interactions
involving age. Thus, the age x story character
interaction indicated that the children remembered
more about the ingroup Australian story character
with increasing age, and that at each age level they
remembered more about the ingroup character than
the outgroup Vietnamese character, although the
difference tended to diminish with increasing age.
In addition, the findings revealed a significant age x
information consistency interaction.
As the
childrens age increased, they remembered more of
the inconsistent information relating to the story
characters, whereas their memory for the consistent
information was unaffected by their age. Finally, a
significant story character ethnicity x information
consistency interaction indicated that the children
remembered more of the ingroup Australian
characters stereotype-inconsistent versus -consistent
traits whereas there was no difference in their
memories of the outgroup Vietnamese characters
stereotype-inconsistent versus -consistent traits.
In sum, the results indicated that the children
responded differently to the stereotype-consistent
versus -inconsistent information relating to the
ingroup versus outgroup story characters, and that
their responses changed with increasing age;
specifically, the children remembered more of the
ingroup
Australian
characters
stereotypeinconsistent traits as they increased in age.
Apparently, the stereotype-inconsistent information
concerning the ingroup Australian versus outgroup
Vietnamese story character was simply more salient
or attention-grabbing to the participants, presumably
because they revealed the Australian character to be

an unrepresentative member of the Australian
ingroup; that is, one who displayed negative traits.
Such an interpretation is, of course, consistent with
SIDT, which argues that the groups or categories
which are important to individuals, and to which
individuals see themselves as belonging, are those
which maintain and enhance their self-esteem.
Further, this interpretation is entirely consistent with
the liking results which also revealed age and story
character main effects which, once again, were
qualified by a significant age x story character
interaction. This result (see Figure 1) indicated that
the 8 year old children preferred the Australian to
the Vietnamese story character but that by 10 and 12
years of age the situation had reversed and the
children expressed greater liking for the Vietnamese
than the Australian character. Indeed, liking for the
Australian significantly decreased from 8 to 10 to 12
years of age.
While the 8 year old childrens preference for the
ingroup story character over the outgroup story
character is consistent with both sociocognitive
theory and SIDT, the results for the 10 and 12 year
olds are. However, what is of special note in relation
to the present findings, is the fact that the effect was
absent in 8 year olds, appeared in 10 year olds and
was strengthened by 12 years of age. And, once
again, this finding tended to be paralleled by the
causal attribution results.
4.4
Mean Affect Rating
children would prefer their ingroup to the outgroup

but that if, with increasing age, the older children did
become increasingly sensitised to the ingroup story
characters stereotype-inconsistent traits, as
predicted above, the ingroup story character would
actually be liked increasingly less than the outgroup
story character. That is, whereas the liking of
younger children would simply be influenced by
group membership information (see Nesdale &
McLaughlin, 1987), older children would
increasingly take account of person information,
particularly information indicating that another child
was unworthy or unrepresentative of ingroup
membership. This prediction is reminiscent of the
black sheep effect identified by Marques and his
colleagues (e.g., Marques, Yzerbyt & Leyens, 1988;
Marques, Robalo & Rocha, 1992); that is, the
tendency to derogate an unlikable ingrouper more
than a similarly unlikable outgrouper.
4.2
4
3.8
Vietnam
3.6
Australia
3.4
3.2
3
8
10
12
Age
Figure 1
Age x Story Character Effect on
Childrens Liking Study 1
In sum, the findings from the first study appear to
provide greater support for SIDT (Nesdale, 1999a)
than for SCT (Aboud, 1988). Contrary to the latter,
when the total pattern of findings is considered, it is
clear that the childrens changing responses as they
increased in age were not merely dependent upon
their expanding abilities to differentiate individuals,
for their attention was seemingly not equally shared
between the ingroup and outgroup story characters.
Of particular significance to the children as they

increased in age was the stereotype inconsistency of
the ingroup story character. It was this information
which was most remembered and which appeared to
have the greatest impact on their liking for the story
characters. Seemingly, the childrens responses
were increasingly motivated by their concerns
regarding the ingroup story characters worthiness to
be a member of their ingroup. While this response is
consistent with SIDT, and has been revealed as the
black sheep effect in adults (e.g., Marques et al,
1988; Marques et al, 1992), the real importance of
the findings concerns the fact that the children at all
ages were much more concerned about the ingroup
member (i.e., ingroup preference) than they were
about the ethnic outgroup member (i.e., outgroup
prejudice).
Study Two
Introduction and Method
While the first study garnered some valuable
findings concerning the development of childrens
ethnic attitudes, several issues which required
further attention were addressed in a second study
(Nesdale & Brown, 2000). First, this study included
6, 9 and 12 year old children, so as to span the
critical seventh year specified by SCT, as well as
enabling childrens responses to be followed to the
upper end of childhood.
Second, given that the first study manipulated the
stereotype-consistency of the story characters traits,
it meant that the Australian story character displayed
half positive and half negative traits, compared with
the standard, unambiguously, positive ingroup
stereotype which is held by Australian children
(Nesdale & McLaughlin, 1987). The effect of this
may have been that the Australian character was
simply seen to be a less favourable person than the
Vietnamese character, with the resulting impact on
the childrens memories and liking ratings.
Accordingly, in the second study, each character
displayed four positive and four negative traits such
that the positive traits in the two sets, and the
negative traits in the two sets were matched for
degree of positivity and negativity, respectively.
Third, in addition to allowing for the children to
identify with the story character from their ethnic
ingroup, if they so chose, the study also assessed
whether any such tendencies would be influenced by
the relationship between the two story characters.
Thus, for half the children, the story characters were
revealed to be the best of friends who shared lots of
activities. For the remaining children, the story
characters were described as being bad friends
whose relationship had been characterised by lots of

disputes.
In sum, 6, 9 and 12 year old Anglo-Australian
children in the present study were asked to listen to a
story about an Australian and a Chinese boy who
were portrayed as good friends or bad enemies.
Each of the boys displayed equal numbers of
positive and negative traits, and each boy also
displayed a positive and negative behavior. Again,
of particular interest were the possible age-related
changes in the memories of the children of the traits
and behaviours displayed by the ingroup versus
outgroup story characters, as well as their feelings of
like or dislike directed towards the ingroup versus
outgroup story characters.
In relation to the childrens memories of the story
characters positive and negative traits, it was
assumed that Study 2 would reveal a similar pattern
of findings to Study 1 when the two story characters
had a positive relationship. However, when the
relationship between the story characters was
negative, the reverse findings might be expected if
the effect of the negative relationship was to
enhance the childrens identification with the
ingroup versus outgroup story character. That is,
more of the ingroup characters positive versus
negative traits would be remembered, whereas more
of the outgroup characters negative versus positive
traits would be remembered.
Similarly, it was expected that the same pattern of
liking responses, as were revealed in Study 1, would
be revealed, when the two characters had a positive
relationship. However, when the two characters had
a negative relationship, it was expected that the
ingroup character would be liked more, and the
outgroup character less that is, the black sheep
effect would be reversed.

Consistent with Study 1, and with SIDT, the
memory results again revealed differences in the
childrens responses between ages which was
interactively influenced by the story characters
ethnic group. Thus, the 6 and 9 year old participants
remembered more of the ingroup characters
positive versus negative traits and more of the
outgroup characters negative versus positive traits.
However, sometime between 9 and 12 years of age,
there was a dramatic change in the childrens
responses to the two story characters such that the 12
year old children remembered more of the ingroup
characters negative versus positive traits, and the
outgroup characters positive versus negative traits.
Similarly, analysis of the childrens liking responses
revealed that whereas the 6 and 9 year old children
liked the ingroup character more than the outgroup
character, the 12 year olds displayed the black
5.5
Liking
5
4.5
Outgroup
Character
Ingroup
Character
3.5
3
6
12
Age
Figure 2 Age x Story Character Effect on Liking

Study 2
sheep effect, preferring the outgroup character to
the ingroup character (See Figure 2).
Conclusions
Several important conclusions follow from these two
studies. First, even children as young as 6 years
apparently quite straightforwardly and naturally
categorise themselves or identify with the ingroup
(Anglo-Australian) versus the outgroup (Vietnamese
or Chinese) character in the story, without any cuing
or prompting by the researchers. This finding is
consistent with other research indicating that preschool children actively and spontaneously engage
in intergroup categorisations and comparisons (e.g.,
Nesdale & Flesser, in press).
Second, given that the stimulus material remained
constant over the different age groups, it is clear that
older children view the material through different
eyes. Importantly, the findings suggest that older
children do not listen to, and process, information
(in this case, a story) in a less biased, more impartial
way, as SCT would argue. Rather, the findings are
more consistent with the SIDT position that the
older children remained as focused on the ingroup
story character as the younger children, but placed
different weights on the information, with differing
effects. Specifically, whereas the younger children
seemingly focused on and/or remembered the
stereotype-consistent/positive versus stereotypeinconsistent/negative trait information about the
ingroup character, the older children focused on
and/or remembered the stereotype-inconsistent/
negative versus stereotype-consistent/ positive
information about this character. That is, rather than
childrens ingroup preferences decreasing with
increasing age, as SCT claims, the reverse is actually
the case children are actually even more concerned
about the standing of their group, as they increase in
age.
Moreover, the ingroup preference
interpretation is entirely consistent with the fact that
the childrens liking responses paralleled their
memories. As the children increased in age, they
revealed themselves to be less positive towards the
ingroup character and more positive towards the
outgroup character, even to the extent that, at 12
years, they actually liked the outgroup character
more than the ingroup character.
Of course, the latter point also gives emphasis to the
SIDT view that the striking ingroup orientation and
preference revealed by children does not necessarily
lead them to reject, dislike or express prejudice
towards all outgroup members as a matter of course.
As several other researchers have also found (e.g.,
Aboud & Mitchell, 1977; Nesdale & Flesser, in
press), even the youngest children in the present
study did not rate the outgroup character negatively.
Instead, they tended to rate the outgroup member
less positively than the ingroup member, and
generally no lower than the mid-point of the scale.
These findings reinforce the SIDT position that, in
the absence of considerations such as threat or
conflict, young children are more concerned with
ingroup preference than outgroup prejudice and
discrimination (Nesdale & Flesser, in press).
It was partly in an attempt to assess the latter
proposition that the second study sought to
manipulate the relationship between the two story
characters for half the children, the story
characters were good friends, while for the
remaining children, they were bad enemies. As it
happened, however, the results revealed that
regardless of the story characters relationship, the
youngest children favoured the ingroup character
while the oldest children favoured the outgroup
character. While it might be suggested that the
children simply did not register the relationship
between the story characters, a more plausible
interpretation is that the story characters
relationship was simply not seen as being greatly
relevant to the childrens primary focus on the
ingroup. Indeed, somewhat ironically, the liking
data indicated that the children actually liked both
story characters more when they had a good versus a
bad relationship.
Consistent with SIDT, the
implication of the preceding interpretation is that the
black sheep effect displayed by the older children
is unlikely to be reversed unless the situation is such
that the participants identify with the group of which
the ingroup character is a member and that group is
really threatened by the outgroup characters group.
In conclusion, the findings from the present studies
revealed that childrens ethnic attitudes and
cognitions vary as the children increase from 6 to 12
years of age. Moreover, consistent with social
identity development theory (Nesdale, 1999a), the
findings indicated that childrens changing responses

as they increase in age are not merely dependent on
their expanding abilities to differentiate individuals,
as claimed by sociocognitive theory (Aboud, 1988).
Instead, the findings suggested that, other things
being equal, children in this age range tend to focus
upon the ingroup and its members, rather than
automatically displaying ethnic prejudice towards
members of ethnic outgroups.
References
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ethnic identity constancy. Journal of Genetic
Aboud, F. (1988). Children and prejudice. Oxford:
Blackwell
Aboud, F.E., & Doyle, A.B. (1996a). Does talk of
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Knowledge management: Lessons learned from an early implementer

Shan L. Pana; Ming H. Hsiehb ; Y.S. Tsaic and Jimmy C. M. Huangd
a
School of Computing, National University of Singapore, Singapore
b
Warwick Business School, University of Warwick, Coventry, UK
c
Department of Industrial Engineering, National Taipei University of Technology, Taiwan
d
Department of Management Studies, University of Aberdeen, UK
Abstract
The article presents the case of a multinational
company organising its global knowledge sharing
activities between 1992-1998. Several important
lessons emerge from this study, including: (1) open
internal communication structure; (2) knowledge
sharing culture; (3) KM-focused HRM. Finally, the
case illustrates the need to take into account a sociotechnical perspective of organising knowledge
sharing activities and highlights the interplay
between the adoption of ICT and organizational
processes overtime.
Key words
Information and Communication Technologies
(ICT); Knowledge Management (KM).
Introduction
From a case study of a distinctive organization
whose purpose is to facilitate knowledge sharing for
competitive advantage, this study has selected
Buckman Labs for an in-depth study by addressing
the gap between conceptual research and
organizational practice. To provide a managerial
perspective as well as an holistic organizational
perspective, the researcher formally interviewed 12
top managers (including the Chairman and Chief
Executive Officer of the company) and 38 other
employees. The range of interviewees covered the
different actors and management levels involved in
the development and implementation processes.
Transfer, etc.) to these profit centres across the

world. Altogether, these Buckman Labs companies
employ 1,300 people with annual sales approaching
US$ 300 million.
Buckman Labs is smaller than its major competitors,
so in order to achieve its corporate goals it has to use
its resources more intelligently. In other words, to
become competitive in its increasingly knowledgedriven industry in the late 1980s, Buckman Labs
management realised that they must improve the
efficiency of organising knowledge sharing globally,
and this required a new business philosophy and
economic development. (Chairman, 1998)
By 1989, the Chairman, personally pledged that
knowledge would become the foundation of his
companys competitive edge. Three years later, the
implementation of the KNetix knowledge
network marked the beginning of the realisation of
Bob Buckmans visions.
Knowledge Architecture
Company background
Buckman Labs started its search for a system that

could support the sharing of both explicit and tacit
knowledge in the early 1990s. With the Chairmans
pioneering vision in mind, the former Vice President
of the KTD set out to build a single knowledge
network encompassing all of the companys
knowledge and experience, and allowed Buckman
Labs sales representatives to focus the companys
capabilities on customer challenges. Buckman Labs
users around the world could use e-mail and forums
to share knowledge via messages on the forums,
company-wide discussions and documents authored
using PC tools.
Buckman Labs is a privately-owned specialty

chemical company, based in Memphis in the United
States. It has a 50-year history of developing,
manufacturing and marketing proprietary chemical
products in 21 different countries, with 18 principal
companies (branches) outside the USA selling 1,000
different specialty chemicals. Nineteen of these
companies are engaged in 80 countries, marketing
and selling the chemicals that are manufactured at
eight strategically placed locations. The twentieth
company, Buckman Labs, provides the support
functions (R&D, Legal, Marketing, Knowledge
In March 1992, Buckman Labs set up a Knowledge

Transfer Department (KTD) and appointed a Vice
President, who had a PhD in organic chemistry and
possessed strong computer skills, and who had spent
the previous year studying the theoretical
possibilities of global knowledge transfer systems.
Furthermore, a R&D technical information centre
(TIC) which had formerly served as a clearinghouse
for technical questions from world-wide offices, was
renamed the Knowledge Information Centre (KIC)
and then the Knowledge Resource Centre (KRC) as
part of the KTD. The KTD was responsible for the

design and on-going management of knowledge
sharing. At the time of data collection in 1998, 90
per cent of the 50 KTD employees were responsible
for the design, development, implementation and
maintenance of the software and hardware of the
ICT-based knowledge transfer system. The other
five KTD employees were located in the KRC, and
their responsibilities included the monitoring and
processing of the knowledge shared within the
various sections of Buckman forums, with particular
reference to social and organizational, rather than
technical, perspectives.
By the end of 1993, for a total cost of US$75,000
per month, all Buckman Labs employees could
make a single phone call using a ThinkPad 720 with
a modem to establish point-to-point communication
with headquarters and gain access to the global
knowledge transfer system. Based on this concept,
KNetix was introduced with seven forums (three
customer-focused forums and four regional-focused
forums) to co-ordination-line conversations and
exchanges of information and knowledge.
KNetix was the knowledge architecture of
Buckman Labs. It puts the most knowledgeable
experts in the organization in touch with each other,
thus encouraging group problem-solving and the
sharing of new ideas and knowledge. In fact,
Buckman Labs trademarked the name KNetix to
convey not only the power of the knowledge transfer
system but also the broader benefits of a knowledgesharing corporate philosophy. The result is that
Buckman Labs has successfully combined the
interactive and integrative aspects of organization
and knowledge flow (Zack, 1999). The former
facilitate direct and emergent exchanges of
knowledge through the forums, while the latter
refine and archive the record of those exchanges for
future use.
On-line Regional Forums

Structurally speaking, the on-line community at
Buckman Labs is regionally and functionally
structured and developed between 1992 and 1997.
There are four different regional forums available
on-line: the TechForum, Euroforum, LatinoForum,
and AAAForum. These forums, only accessible to
company employees, are each further divided into
sections based on Buckman Labs lines of business.
Codified databases come from a number of sources:
valuable knowledge that can be generated from
discussions on the forums, and unloaded external
secondary material and any materials that are helpful
to Buckman employees.
These four regional forums constitute the central
pivot of Buckman Labs knowledge sharing and are
accessible by all employees. The regional forums

were open to all employees and had similar internal
structures. The major difference was in terms of
language and the geographical areas served. For
example, Spanish was used mainly in the
ForoLatino, which was created at the request of
Spanish-speaking employees based in Latin
America. English was used in the Techforum and
was mainly used by North Americans. European
languages (French, German and others) were used in
the EuroForum for Europe-based employees. The
AAA Forum used English as the main language and
was open to Asian, Australians and African-based
employees.
Problems Encountered in Organising

Global Knowledge Sharing
This case study has identified that the issue of
communication inertia has poses significant
organizational problems for Buckman Labs during
the process of organising global knowledge sharing.
Communication Inertia
One of the major problems found in the case study is
related to the communication inertia resulting from
the design of the forums adopted. While the adopted
technology
has
expanded
communication
capabilities across time and space, Buckman Labs
global knowledge network system has also altered
the way in which employees communicate.
Despite launching and adopting a fairly successful
CT-based knowledge transfer system since 1992,
Buckman Labs has not been completely free from
communicational problems.
In most cases, however, communication barriers
have been cultural rather than technical. This is
demonstrated by Buckman managements dilemma
in choosing the design of global forums during the
period 1992-1998. Initially, with the introduction of
the knowledge transfer system (single forum design)
and the philosophy of global knowledge sharing, the
organization encountered a number of problems in
relation to communication. The first problem was
language. When the system was first introduced,
there was only a global forum (the US-based
TechForum). By March 1994, although the single
global forum design had worked well in terms of
Buckman Labs knowledge-sharing philosophy, the
design had not been well received by overseas
employees. In particular, they commented that they
were uncomfortable asking their questions in
English, although they had no problem
understanding the feedback they received in English.
Therefore, to encourage employees outside the USA
to participate, management introduced a new policy:
Bulab employees should feel comfortable using any
language they desire when posting messages to the

message board. The Sysop(s) will follow the
addendum to the Sysops manual and see that the
message is translated into English for all to read.
Technical replies will be translated back to the
originators own language in accordance with the
addendum. (On-line archive 1997)
In practice, this policy proved to be inadequate to
deal with the problem. This was because the root of
the problem was identified as cultural rather than
linguistic.
As more and more employees from outside North
America voiced their discomfort in using English as
the medium of communication, management
realised that the only feasible response was to
establish regional forums, starting with the Latin
American ForoLatino. Calls to set up more regional
forums followed.
Subsequently, EuroForum and AAA Forum were
established. As a result, a multiple regional forum
strategy
was
adopted
to
overcome
the
communication barriers introduced by employees
cultural and linguistic diversity. The response of
employees to this move was extremely positive.
However, the communication problems did not
disappear. The decision to move towards a set of
regional on-line communities led to other difficulties
which became evident in 1995-1997. These were
mainly concerned with the redundancy of solutions
provided by different forum participants, and also
the formation of different on-line virtual
communities world-wide contradicted the original
philosophy of genuine global knowledge sharing. In
most cases, this has proved to be an inefficient
method. Moreover, it has also caused inconvenience
for all and has been identified as the probable cause
of the drop in the usage of on-line forums during this
period (1995-1997). This was brought to the
attention of Buckman management when a USbased associate expressed his preference for a
proposed single uniform forum over multiple
regional forums spread over five continents.
This comment later triggered a series of long heated
debates on the Intranet involving employees of all
ranks and from all regions. According to one
member of the US-based forum, initially the
question was thought to be a simple technical
problem, resolvable by implementing real-time
replication software. However, the cultural issues
again surfaced as the main factor behind
communicational problems.
As the discussions continued and evolved into a
series of debates over the cultural and linguistic
differences between European employees and US
employees, the importance of recognising diversity

in a global organization became increasingly
apparent.
Moreover, as some of the overseas employees
observed, with almost all KM hardware and
software designed and implemented by/from the
KTD in US, there seemed to be a gap between what
was expected and what was achieved between the
headquarters and regional forums. In other words, it
was suggested that knowledge-sharing tools were
designed according to the needs of the US-based
forum without taking account of the needs of other
regional forums. All these dilemmas and difficulties
pointed to an urgent need to readdress Buckman
Labs global knowledge sharing strategy. By the end
of 1997, a strategic decision was made by Buckman
management to re-organise its forums into a single
global forum using new software and with an
enhanced translation capability. In the long run, this
shift was regarded as the key to dismantling the
communication barriers that had built up in the
company.
Under the new system (which was not in place until
late 1998), there is a single global forum divided
into different lines of business.
Initial Findings
Having discussed and explained some of the
experiences of Buckman Labs in organising
knowledge sharing during the period of 1992-1998,
there are a number of lessons that can be learned
from the case study. In this section, we discuss the
three factors that had a significant influence on the
processes and mechanisms of Buckman Labs
knowledge sharing activities (1) open internal
communication structure; (2) knowledge sharing
culture; (3) KM-focused HRM.
Lesson One: Open Internal

Communication Structure
As well as facilitating a virtual communitybased organizational structure, the enabling
mechanism also helps to create an open internal
communication structure that influences the
knowledge-sharing capacity of a knowledge-based
firm. In the initial stage (1993-95), Buckman Labs
encountered some difficulty in handling global
knowledge sharing. Any organization, like Buckman
Labs that serves customers in a variety of
geographical and cultural areas is likely to exhibit
many of the typical structural barriers of a complex,
hierarchical organization.
Taking a more holistic view, the findings indicate
that the open and emergent communication structure
of Buckman Labs has provided a environment that is
suitable for the fast changing business climate in
which this knowledge-intensive organization is

operating (Cohen and Levinthal, 1990). From a
socio-technical
standpoint,
Buckman
Labs
experience suggests that some of the key
characteristics of an open environment are: open
communication, the encouragement of creativity,
brainstorming, collective problem solving and social
interaction.
On the other hand, it is also evident that the changes
made to the communication structure were due to
the emergence of knowledge-sharing practices that
are different from those of the CoPs. These were not
pre-planned but rather they emerged. This has clear
implications for the way in which information and
knowledge for organizational employees is accessed.
In the past, employees access to information and
knowledge were controlled by management. By
introducing a new, more open structure, Buckman
employees were provided with almost unlimited
real-time access to corporate data, information and
expertise, thereby reducing their reliance on middle
management and providing them with a sense of
knowledge ownership and creation. In other words,
the availability of an open and emergent
communication structure also implies a redefinition
of the power relationships between management and
employees. In this way, the nurturing of CoPs for
knowledge sharing becomes an important
managerial task that requires an understanding of the
interplay between technological, social and
organizational elements. It is clear from this study
that CoPs must be recognised as being quite
different from traditional, functional project-based
groups in organizations.
Moreover, it is also clear that the knowledge-sharing
process at Buckman Labs originally had a strong
technical emphasis. This was largely due to the fact
that the KTD was upgraded from Buckman Labs IT
department. As a result, the early focus was mainly
on the adoption of an ICT-based knowledge transfer
system and the communication and structural
infrastructures within the organization. Little effort
was made to consider the social and managerial
implications of knowledge sharing. Such realization
is not to suggest that technological issues are of
secondary importance. Rather, what is required is an
integration of the social and technical elements of
knowledge sharing. The absence of such integration
was most clearly demonstrated in the first stage of
the implementation of the knowledge-sharing
initiative (1992-1995).
Lesson Two: Knowledge Sharing Culture

At Buckman Labs, it was evident that knowledge
sharing involved a strong internal focus, e.g. through
the use of tacit knowledge. The Buckman
management believed that tacit knowledge resided
in the social interactions among employees. The

organization of a knowledge culture for the sharing
of both explicit and tacit knowledge became the
most important management task. However, culture
is not simply a matter of conscious design by
management; it reflects the evolution of the
organization over a period of time.
For Buckman Labs, cultural change was emergent
and had to overcome many obstacles related not
only to technology but also to social and
organizational factors. The process of cultural
change was difficult, since Buckman management
clearly recognised from the beginning that they were
asking a great deal of their employees if they were to
become active global participants. The companys
approach was to think proactively by identifying the
potential hurdles, removing or reducing their impact
wherever possible, and, where feasible, putting in
place appropriate social and technical support
structures.
Buckman Labs knowledge sharing culture has a
number of specific features. For instance, top
management sought to move from a culture of
knowledge hoarding to one of knowledge sharing by
establishing norms of collaboration. As a result of
early resistance to technological changes, the
facilitation of a knowledge culture change became a
crucial element in the organization of knowledge
sharing. The knowledge culture at Buckman Labs
can be defined along three dimensions: 1) norms,
beliefs and values (the way we consider things); 2)
practices (the way we conduct business); and 3)
rewards (what receives recognition and benefits).
At the same time, this kind of knowledge sharing
culture can also be used to understand the habits,
assumptions and actions behind some of the
practices and dilemmas found in organising the
knowledge sharing process. In particular, Buckman
Labs knowledge sharing culture has influenced
management behaviour in two areas: (1) knowledge
architecture -- that is, the structure, mechanisms, and
design of processes; and (2) knowledge dynamics -that is, the rules, customs and ethics that guide
action.
Lesson Three: A KM-focused HRM

In retrospect, Buckman Labs approach to the
implementation of its knowledge transfer system, at
least in the first few years, overemphasised the
technological aspects, and the need to develop a
systematic approach to KM-focused HRM was
ignored.
The first requirement for the development of a KMfocused HRM is related to the training and
performance evaluation of knowledge workers.
Traditional organizations have considered training as
an expense to be minimised. This is also the

fundamental reason why organizations generally
prefer to hire ready-trained workers rather than
provide training themselves (Lynch, 1994; Stern and
Ritzen, 1991). However, as the nature of workrelated
knowledge
becomes
more
fluid,
organizations have no choice but to take training
needs more seriously. In order to become more
efficient in providing training for employees, more
and more organizations are beginning to adopt the
strategy of just-in-time learning via the Internet or
Intranet (Stern, 1998).
As the case of Buckman Labs, with the trend
towards providing flexible training using ICT, HR
managers are likely to take on two additional
training responsibilities in managing knowledge
workers: to provide training in an on-line
knowledge-intensive environment and provide KMfocused HRM activities. Brown (1984), for example,
emphasises the key role of HR specialists in new
interpretative communities through the provision of
training experiences which can develop the ability to
contribute to constructive knowledge sharing. This
implies that training is to be provided on-line in and
across CoPs. In other words, it suggests that
knowledge should be acquired when and where it is
needed. In this regard, in addition to the traditional
distance learning concept, a number of emerging
practices in promoting justin-time learning are now
being adopted by organizations, including: crosstraining by co-workers, job rotation, suggestions
systems, skill-based pay, and formal or informal
groups (Stern, 1998). The last two practices are
particularly important in the case of Buckman Labs
own experience in developing its on-line learning
centre.
Another immediate implication for HRM is the
adoption of KM-focused training and personnel
development. In terms of knowledge-sharing
training at Buckman Labs, HR personnel were left
out of the decisionmaking and implementation
process almost entirely, at least in the initial stage.
Most KM-related training was left to the KTD
Department. Only recently (1998) did HR personnel
begin to work with KTD personnel in developing
training materials for knowledge sharing as well as
for other job-related training. This involves allowing
greater flexibility in employees use of time so that
they can adjust to the new technologies of KM tools.
Cohen, W., and D. Levinthal. (1990). Absorptive

Capacity: A New Perspective on Learning and
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Grant, R. (1997). The Knowledge-Based View of
the Firm: Implications for Management
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and the Private Sector: International
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Springer-Verlag, Berlin and New York.
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Shan L. PAN
10 Kent Ridge Crescent, School of Computing, National
University of Singapore, Singapore 119260. Singapore
Pansl@comp.nus.edu.sg
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Born to lead: Evidence of a biological predisposition for

transformational leadership?
Jeff Patrick
all of whom have a strong behavioural orientation
(Conger, 1999).
Abstract
The topic of transformational leadership in
organisational settings has undergone a significant
evolution in terms of both theory development and
empirical investigations over the last decade and a
half. Despite these advances, there are a number of
aspects of transformational leadership which we
know very little about. One such area is the
aetiology of transformational leaders. Gray (1987)
proposed that individual traits must correspond to
an underlying biologically causal system. Recent
data concerning the interaction of the brain and
environment has suggested a relationship between
stable behavioural traits and the behavioural
activation and behavioural inhibition systems. As a
consequence, it seems reasonable to ask whether
one key aspect of transformational leadership is the
presence of a heightened behavioural activation
sensitivity - literally a biological predisposition.
Evidence from a sample of 87 managers supports
this proposition lending weight to the argument that
transformational leaders have a pre-existing
biological aptitude for their role within
organisations. While these results are not definitive
they do suggest that selection may well be more
important than training when it comes to developing
leaders.
Keywords
Transformational; Leadership; Predisposition
Introduction
Over the last decade and a half, the topic of
transformational leadership in organizational
settings has undergone a significant evolution in
terms of both theory development and empirical
investigations. As a result, knowledge about
leadership forms has deepened, transformational
leadership is now an established paradigm in the
leadership field (Conger, 1999). Both the greatest
amount of theory development as well as empirical
research on transformational leadership has been in
the area of leader behaviours and, to a lesser extent,
on follower effects. This is due largely to the
backgrounds of the most active researchers, almost
Bass and later his colleague Avolio (1985)

essentially built upon Burns (1978) original notion
of transformational leadership with a similar model
for organizational leaders (Conger, 1999). As
Bryman (1992) has pointed out, their model does go
further conceptually than Burns original model.
Bass (1985) conceptualised the transactional and
transformational dimensions as separate, whereas
Burns had defined them as two ends of a spectrum.
For Bass, therefore, a leader could be both
transformational and transactional. In addition, Bass
was determined to more precisely identify the actual
behaviours that these leaders demonstrated along the
two dimensions.
At the heart of the model is the idea that
transformational leaders motivate their followers to
commit to and to realize performance outcomes that
exceed their expectations. Three principal leadership
processes are involved (Bass, 1985) in achieving
such outcomes: (1) these leaders heighten followers
awareness about the importance and value of
designated goals and the means to achieve them; (2)
they induce followers to transcend their self-interests
for the good of the collective and its goals; and (3)
they stimulate and meet their followers higher order
needs through the leadership process and the
mission.
Bass (1985) was the first organizational scholar to
operationalise the transformational leadership model
into a measurement instrument. As a result, we see
more studies employing his scale than any of the
other models proposed to date. Though the
transformational leadership models components
have evolved somewhat since Bass original 1985
publication, the changes have been relatively
limited. For example, the component of inspiration
which was originally treated as a subfactor within
the charismatic leadership dimension is today a
stand alone component (Bass & Avolio, 1993). As
such, today four behavioural components make up
the dimensions of transformational leadership: (1)
charisma or idealized influence; (2) inspiration; (3)
intellectual stimulation; and (4) individualized
consideration. In contrast to the other theories,

charisma is a separate component and is defined in
terms of both the leaders behaviour (such as role
modelling) and the followers reactions (such as
trust, respect, and admiration for the leaders ability)
(Bass & Avolio, 1993).
Despite these advances, there are a number of
aspects of transformational leadership which we
know very little about (Conger, 1999). One such
area is the aetiology of transformational leaders. It is
true that transformational leadership has been
explored using a wide variety of research methods.
For example, there have been field surveys (Conger
& Kanungo, 1992; Hater & Bass, 1988; Podsakoff,
MacKenzie, Moorman & Fetter, 1990); laboratory
experiments (Howell & Frost, 1989; Kirkpatrick &
Locke, 1996; Puffer 1990); content analyses of
interviews and observation (Conger, 1985, 1989;
Conger & Kanungo, 1998; Howell & Higgins,
1990); and analyses of historical archival
information (Deluga 1998; Shamir, House & Arthur,
1993; Chen & Meindl, 1991; House, Spangler, &
Woycke, 1991). Yet no study has ever questioned
whether transformational leaders are born or made.
While analysing DNA samples of transformational
leaders for direct evidence of a biological
predisposition for leadership is overly technically
ambitious, it is possible to gather behavioural
evidence of underlying neurophysiological systems
relatively simply. Gray (1982a) holds that 2 general
neuro-motivational systems underlie behaviour: a
behavioural inhibition system (BIS) and a
behavioural activation system (BAS). Gray (1987b)
proposed that individual traits must correspond to an
underlying biologically causal system. In a study a
situation in which people anticipated a punishment
those with high BIS sensitivity were more nervous
than those low in BIS sensitivity. Conversely in a
situation where people anticipated a reward those
high in BAS sensitivity (reward responsiveness)
were happier than those low in BAS sensitivity
(Carver & White, 1994). In other words those with
high BAS sensitivity were happier and more
oriented to rewards and potential rewards while
those with high BIS sensitivity were more anxious
and more likely to orient to what might go wrong in
any given situation.
While not wanting to get too far into the physiology
of these two systems - Gray (1982b) believed that
people where predisposed to reward seeking or
punishment avoidance behaviour as a result of
differences in neuro-physiological systems. He
based this proposition largely on an analysis of the
behavioural effects of anti-anxiety drugs (i.e.
benzodiazepines, barbiturates, and alcohol). From
such psychopharmacological experiments, the
concept of a behavioural inhibition system (BIS) has
been developed. This system responds to novel

stimuli or to those associated with punishment or
non-reward by inhibiting ongoing behaviour and
increasing arousal and attention to the environment.
It is activity in the BIS that constitutes anxiety and
that is reduced by anti-anxiety drugs. Because of
similarities between the behavioural effects of
certain lesions and those of anti-anxiety drugs, it is
proposed that anti-anxiety drugs reduce anxiety by
impairing the functioning of a widespread neural
system, including the septo-hippocampal system, the
Papez circuit, the prefrontal cortex, and ascending
monoaminergic and cholinergic pathways that
innervate these forebrain structures. Analysis of the
functions of this neural system suggests that it acts
as a comparator - it compares predicted to actual
sensory events and activates the outputs of the BIS
when there is a mismatch or when the predicted
event is aversive. The opposite is true for the
behavioural activation system (BAS). This system
responds favourably to novel stimuli or to those
associated with potential reward by heightening
ongoing behaviour and increasing arousal and
attention to the environment.
These two systems can actually be observed in the
activity of the brain. Harmon and Allen (1997)
examined whether resting frontal cortical
asymmetrical
activity,
as
measured
by
electroencephalographic activity in the alpha band,
was examined in relation to the motivational
response tendencies of a behavioural activation
system (BAS) and a behavioural inhibition system
(BIS). They found relatively greater left than right
frontal cortical activity was related to heightened a
behavioural activation system (Harmon & Allen,
1997).
Recent data concerning the interaction of the brain
and environment has suggested a relationship
between stable behavioural traits and the
behavioural activation and behavioural inhibition
systems (Pickering, 1997). Gray (1982b) himself
linked Eysencks concept of extraversion and
introversion to behavioural activation and inhibition
systems. It is interesting to note that Eysencks
(1975) conception of extraversion particularly was
more multifaceted than we normally think of today.
He defined extraversion in a way that bears a
striking resemblance to many of the descriptions of
transformational leadership (e.g. expressiveness,
risk-taking, charismatic). Eysenck (1975) also
broached the idea that there may be functional and
dysfunctional extraverts because a lack of reflection,
or of taking responsibility may also be associated
with some extraverts. It therefore seems reasonable
to wonder whether one key aspect of
transformational leadership is a type of functional
extraversion, and that this behavioural trait is a
manifestation of a heightened BAS sensitivity -
literally a biological predisposition. The evidence

presented thus far would seem to suggest so.
Methodology
Participants
Table 1 Sample by age and gender
Age Group
Male
Female
25-34
12
8
35-44
13
9
45-54
14
10
55-64
13
8
52
35
Eighty-seven managers of various medium and large
firms kindly agreed to anonymously take part in this
study. The sample was stratified for age and gender
in order to balance any possible age or gender
affects (see Table 1).
Participants age ranged from 26 to 63 with an
average age of 42. Because situational factors were
not thought to influence any possible biological
predisposition various contextual were not coded
(e.g. industry, department, length of tenure, or
number of subordinates).
Materials
The BIS/BAS Scale
Carver and White (1994) developed the Behavioural
Inhibition System and Behavioural Activation
System (BIS/BAS) scale, a self-report scale
designed to assess dispositional BIS and BAS
sensitivities. The criterion validity of this instrument
was established when resting anterior brain electrical
activity (EEG measures) of pre-frontal asymmetry
and the self-report measures showed excellent
internal consistency reliability and adequate testretest stability (Sutton & Davidson, 1997). Sutton
and Davidson results also showed that people with
greater relative left prefrontal activation reported
higher levels of BAS strength, whereas those with
greater relative right prefrontal activation reported
higher levels of BIS strength. Prefrontal EEG
asymmetry accounted for more than 25% of the
variance in the self-report measure of relative BASBIS strength (Sutton & Davidson, 1997).
More recently Jorm, Christensen, Henderson,
Jacomb, Korten and Rodgers (1999) examined the
psychometric properties of the BIS/BAS scale, using
an Australian community sample of 2,725
participants (aged 18-79 years). Factor analysis of
the BIS/BAS items supported 2-factor higher-order
structure reflecting separate behavioural inhibition
and behavioural activation systems. The BIS scale
was related to neuroticism and negative mood, while
the BAS scale was related to extraversion and
positive mood. BIS scores were somewhat higher in

females. Both BIS and BAS scores were lower in
older age groups, suggesting the possibility that the
behavioural inhibition and behavioural activation
systems become less responsive with age.
The Multifactor Leadership Questionnaire
Carless (1998) examine the construct validity of the
Multifactor Leadership Questionnaire (MLQ) and
found that the MLQ assesses a single higher order
construct of transformational leadership and that
there is little evidence to support the contention that
the MLQ measures distinct transformational leader
behaviours. Avolio and Bass (1999) also examined
the construct validity of the most recent version of
the Multifactor Leadership Questionnaire (MLQ
Form 5x) using a larger and more heterogeneous
sample than those prior research (n = 3,786). Their
results confirmed previous findings, that the MLQ
was a both reliable and valid measure of
transformational leadership.
Procedure
Participants were simple asked to complete the
questionnaires and return them to the University. All
participants who had agreed to take part in this study
returned the questionnaires within two weeks. No
identifying information was recorded, nor was there
an intervention of any type.
Results
Scores for transformational and transactional
leadership as well as for behavioural activation and
inhibition sensitivity were transformed to z-scores in
order to standardised the scale between the two sets
of measures. All score were normally distributed
(the highest skewness was evident in the
transactional leadership scores - 0.21). Results
(presented in Table 2) indicate that self-reported
transformational
leadership
qualities
are
significantly and positively associated with the
behavioural activation system (r2=0.29). Likewise,
self-reports of transactional leadership qualities was
significantly associated with the behavioural
inhibition system, though this relationship was
perhaps too weak (r2=0.14) to interpret
meaningfully in a sample of this size.
Table 2 Correlation between BIS/BAS & leadership
Transformational
Transactional
* significant p<0.05
Behavioural
Inhibition Sy stem
0.14
0.38*
Behavioural
Activation Sy stem
0.54*
0.18
A series of four t-tests also indicated that there was

no difference between male and female participants
on either transformational of transactional leadership
scores (p>0.05), or behavioural activation and
inhibition scores (p>0.05). Nor was there any

significant association between age and any of the
measures taken (the largest was with BAS scores,
r=0.08).
Discussion
While it would be inappropriate to interpret too
much into what is in fact only a couple of
correlations between indirect measures of
neurophysiology and leadership ability, the evidence
from a sample of 87 managers does indicate a
relationship between the two. These results lend
weight to the argument that transformational leaders
have a pre-existing biological aptitude for their role
within organisations. These results also suggest that
selection may well be more important than training
when it comes to developing leaders. If
organisations
can
more
reliably
pick
transformational leaders with a simple self-report
test then one could reasonably expect organisational
efficiency to increase. This latter point rests on a
recent
meta-analytic
review
that
showed
transformational leadership reliably predicted work
unit effectiveness across a range of organisational
settings (Lowe, Kroeck and Sivasubramaniam,
1996).
This preliminary research also needs to be pursued
for a couple of reasons. Firstly, the current sample
was insufficient to assess the structural similarities
between individual neurophysiology and leadership
ability. One indication of the magnitude of this
relationship is the r2 of the relationship between
heightened BAS sensitivity and scores on
transformational leadership suggested that individual
neurophysiology can account for about 30% of the
variability in transformational leadership ability.
It may be that this estimate in rather conservative in
the light of other related research. Emerging genetic
research is identify genes for personality, or to be
more precise, stretches of DNA that differ between
individuals and are inherited. The fact is genetic
approaches to complex traits such as personality
have moved from single-gene models and methods
to approaches that can identify multiple-gene
systems called trait loci. To quote from Pinkers
(1997) recent book How the mind works - Much of
the variation in personality about 50% has genetic
causes. [Environmental factors] account for, at most,
5% of the differences among people in personality.
The biggest influence that parents have on their
children[s personality] is at the moment of
conception. No one knows where the other 45% of
the variation comes from. While personality and
leadership are not the same thing functional
leadership traits are as stable as personality.
The second reason why this research should be
pursued is that heightened BAS sensitivity is not
only indicative of extraversion (as Gray showed) and

transformational leadership, it is also related to
delinquency. Matthys, VanGoozen, DeVries, Cohen
& VanEngeland (1998) conducted two studies to test
the hypothesis that the dominance of the
Behavioural Activation System over the Behavioural
Inhibition System is more pronounced in males with
conduct disorder. Their results supported the
hypothesis.
Does this mean our lives are effectively
predetermined by our genetic makeup? Could we
one day use gene therapy to alter personality or
create leaders? The short answer, at least for the
moment is no - but the debate is a long way from
that simple. The evidence that these (and may
previous) results show that only a portion of the
range of human behaviour can be accounted for by
known physiological composition also indicates that
while a biological predisposition (or talent) may
allow for the possibility of effect transformational
leadership, it falls well short of insuring that this
potentiality is ever realised by the individual in a
given set of circumstances.
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Jeff Patrick

Email : j.patrick@mailbox.gu.edu.au
Phone: + 61 7 3875 7704
What causes small businesses to fail: The hidden role of psycho-social

factors
Jeff Patrick
Abstract
According to the Australian Bureau of Statistics, one
in two small businesses will not make it past their
tenth year and within 15 years, 66 percent will have
collapsed. Why is this so, and more importantly what can be done about it? The surprising fact is
that external macroeconomic factors only accounted
for 26% of the total variability on small business
failure rate - a portion far less important than
internal factors. In other words, small business
success has far more to do with the skill of the small
business owner than government and reserve bank
economic policy. These results also indicate the
psycho-social factors such as motivation, judgment,
fatigue, family support, self-efficacy, personality,
education, attitudes, and even maturity underlie
small business failures and typically manifest as
poor management and marketing practices. These
results also arguer a greater role for organisational
psychologists alongside accountants and lawyers in
fostering small business success. Practical
guidelines to avoid these pitfalls are suggested.
Keywords
Small Business; Failure; Australia.
Introduction
Close to 1.5 million Australians run their own small
businesses (Alberici, 1999). According to the
Australian Bureau of Statistics (ABS), one in two
small businesses will not make it past their tenth
year and within 15 years, 66 percent will have
collapsed (ABS, 1998). Even if one ignores the
social consequences of these business failures the
and Small Business (DEWRSB) estimates that the
annual economic costs include more than 46,000
business closures of which about half will end in
bankruptcy, as well as the loss of nearly 250,000
jobs (DEWRSB, 1998).
Despite these discouraging facts another 50,000
Australians will have become new small businesses
owners by the end of 2000 (Alberici, 1999). While
the Federal Government aims to help these small
businesses flourish (DEWRSB, 2000) it has so far
failed to fundamentally alter these damaging trends nor has any other industrialised country done any
better. Why is this so, and more importantly - what
can be done about it?
Understanding the causes of small

business failure
Clark (1997) summarised the majority of causes of
business failure into three categories;
i.
Money,
ii.
Management, and
iii. Marketing.
He referred to these categories as the three Ms. In
relation to money, Clark (1997) recommended that
small business owners should set aside a nest egg to
ensure that their family could survive, as well as to
ensure that investors will still be interested in
supporting their firm. He based this advice is based
on the fact that it can take a long time for a company
to break even.
In relation to management, he suggested that one
should not promote friends into management
positions unless they have appropriate management
experience and are willing to openly disagree (Clark,
1997). He also suggested, in relation to marketing,
that small business owners need not only to know
the market and what motivates it, but should focus
on the pull of the market. By that he meant
ensuring that potential customers are aware of the
product and what it could do for them (Clark, 1997).
While this level of analysis and intervention may
seem overly simplistic there is some evidence to
supports it. Bradley and Moore (1998) found that
most small business failures are caused by managers
who believe that they will succeed despite investing
little effort into their business. In particular, they
found that small businesses are overlooking market
research which entails marketing new ideas and
developing a marketing plan.
In order to investigate these findings further, they
study randomly selected individuals who filed
bankruptcy during 1995 and 1996. Surveys were
mailed out to 1000 individuals in which 365 were
returned (Bradley & Moore, 1998). The survey
consisted of questions that measured how small

business people viewed different parts of their
business priorities. The questions addressed
respondents economic understanding, and level of
marketing skills and how they were used. The results
revealed that just over half of respondents (51%) had
a low to very low economic understanding of
their local environment.
Similarly, half of
respondents (50%) rated their marketing skills as
low or very low (Bradley & Moore, 1998).
Perhaps as a consequence of these finding, the
following results are not surprising. Target
marketing of customers was used very little to
never by respondents. Marketing research was
only conducted by 11% of businesses who filed for
bankruptcy, while only 38% of businesses had a
marketing plan in writing. It was also shown that
85% of businesses either never or very rarely
bought or developed products or services that were
different from their competitor(s). In relation to
their customers, 78% of respondents reported that
they either did not know, knew little or knew
very little about their customers and demographic
characteristics of their customers or market in
general (Bradley & Moore, 1998).
Clearly, marketing and economics were not high
priorities for these small business bankrupts either
when starting or managing their small businesses.
While there is no direct evidence that this ignorance
caused their businesses to fail, it does seem
reasonable that this lack of planning, marketing and
economic knowledge probably contributed to the
failure of these small businesses. It is certainly
evident that the small businesses in this survey
overlooked the fact that continual research into what
their consumers need and an understanding of the
business environment are important for a business to
survive (Bradley & Moore, 1998).
Gaskill and Van Auken (1993) had previously
operationalised the factors that lead to small
business failure (at least from the business owners
perspective) in a more systematic way. Their study
examined the apparel and accessory industry, in an
attempt to identify the perceived causes of small
business failure in that industry. The apparel and
accessory industry was chosen as the retail trade has
been identified as one of the larger sectors of the
small business industry. Gaskill and Van Auken
(1993) examined whether discontinued small
business apparel and accessory retailers perceived
the causes of their business failure to relate to
common failure themes of poor managerial skills,
financially oriented problems and inability to
compete in the market place (as suggested above by
Clark, 1997).
Gaskill and Van Aukens (1993) sample consisted of

previous small business owners who experienced
business failure in apparel and accessory retailing
between 1987 and 1991. A total of 130 (84 females
and 46 males) previous business owners agreed to
participant in their study.
However, only 91
questionnaires administered were returned and
deemed usable.
Investigation of the demographic details revealed
that 59.4% of respondents were sole owners of their
past businesses, 54.3% had started their own
business and 43.4% had bought a previously existing
business. In addition, over two thirds of the business
owners had no previous experience with small
business ownership (Gaskill & Van Auken, 1993).
A factor analysis was conducted revealing four
factors that were perceived by business owners to
contribute to the discontinuance of their business.
The first factor consisted of reasons that related to
managerial and planning functions such as pricing,
business planning and advertising. The second factor
related to vendor relations and consisted of reasons
such as poor relations with vendors and difficulties
in receiving merchandise. The third factor related to
the competitive environment and contained reasons
that were directly related to the ability of the firm to
successfully operate and compete in its environment.
The last factor consisted of reasons that related to
growth and over expansion such as premature
business growth and inventory difficulties (Gaskill
& Van Auken, 1993).
The first factor, poor managerial functions, is
consistent with the previous literature. This factor is
closely related to Clarks (1997) construct of
management. This finding indicates that poor
decisions are the result of poor decision making
skills that can lead to financial distress and failure.
The second factor, working capital management, and
last factor, growth expansion, also indicated a
relationship between financial distress and failure.
The emergence of the third factor, competitive
environment, was also supported by the literature as
a failure factor. In short, Gaskill and Van Aukens
(1993) findings supported the concept of the three
Ms.
The role of forces external to the small

business
A number of economic factors are thought to
influence small business success. Firstly, low or
negative economic growth is said to be related to
business failure. Secondly, in relation to the money
market, a company is unlikely to declare bankruptcy
if credit is available. It would be reasonable to
expect that the likelihood of small business failure
increases during periods of tight credit conditions.
Thirdly, in relation to capital market activity, a
failing business is unlikely to voluntarily declare

failure if the future seems hopeful. For example, if
the economic outlook is optimistic then investors
are more likely to speculate on smaller businesses.
Fourthly, sector strength in terms of business
populations and business formations are said to be
associated with business failures. For example, it is
expected that the reported business failure rate
would decrease if there were a larger small business
population.
Finally, in relation to price level
changes, the rate of inflation is seen to have both
positive and negative effects on business. For
example, the increasing price levels can be
debilitating for some businesses. However, the short
term impact of price increase can actually prolong
some businesses from going bankrupt. It is said that
unanticipated price increases are negatively
correlated with business failure (Altman, 1983).
Altman (1983) examined the aggregate economic
influences on small business failure. He wanted to
know what governments might be able to do to help
- whether macroeconomic conditions affect small
business failure. Economic growth activity, credit
availability (or money market activity), capital
market activity, business population characteristics,
and price level changes were all plotted against the
variability in small business failure rate (Altman,
1983). All factors quite obviously well outside the
control of the small business owner.
Not surprisingly Altmans (1983) analysis indicated
that the likelihood of failure increased due to the
combined effects of these macroeconomic
indicators. The surprising fact was that these
external factors only accounted for 26% (R2adj =
.26) for the total variability on small business failure
rate - a portion far less important than internal
factors (Altman, 1983). In other words, small
business success has far more to do with the skill of
the small business owner than government and
reserve bank economic policy.
Do all small businesses fail at the same

rate?
While it is a common belief that franchises are less
risky than non-franchise small business, Stanworth
and Purdy (1998) believe that there are similar
failure rates between the two forms of small
business. Their research was conducted in the USA
and the UK provides a contrasting and more
empirically sound basis on which to estimate of
small business failure rates.
Stanworth and Purdy (1998) noted that many
prospective small business people are lead to believe
that franchise businesses have low failure rates in
the early days and large profits, however, survey
reports indicate that start-up costs are relatively high
and failure rates match those of non-franchise small

businesses. It is true that franchising generally
overcomes many problems associated with small
business failure. These include under-capitalism,
the absence of economies of scale, lack of business
acumen, and an inability to survive intense
competition sectors where barriers to entry are low.
Unfortunately these strengths appear to be
neutralised by a number of counter-productive
factors associated with franchising - business fraud,
intra-system competition, insufficient support of
franchisees, poor franchisee screening, and
persistent franchiser-franchisee conflict. In fact
Stanworth & Purdy (1998) conclude that franchising
may be even more risky than conventional small
business activity in the first four or five years
Rather than comparing franchises with nonfranchised small businesses Lewis (2000) that it may
be more helpful to compare two general classes of
business failure; catastrophic failures, and a general
lack of success failures (GLOS). Catastrophic
failures are defined as those companies that have
been impacted by a sudden shock to their standard
method of operation (e.g. death of a partner) which
often results in bankruptcy, receivership and/or
liquidation. Catastrophic failure can also be caused
by the death of a sole proprietor, fire, act of God,
employee fraud, burglary and strikes. By contrast,
GLOS failures occur when businesses do not meet
with the owners profit expectations, resulting in the
company being sold off or shut down (Lewis, 2000).
Lewis (2000) found the main reason for catastrophic
failure is a lack of adequate cash flow. This
inadequacy decreases the business ability to
respond to outside problems or threats. He showed
that most small businesses are prone to this type of
failure because many do not monitor their cash flow
or properly insure themselves - both of which are
fairly easily rectified.
The causes of GLOS failures were more complex.
Lewis (2000) demonstrated that approximately 90%
of all GLOS business failures are due largely to
psycho-social factors. He compiled a list of twelve
reasons:
iv. going into business for the wrong reasons,
v. asking the advice of family and friends,
vi. being in the wrong place at the wrong time,
vii. getting worn out,
viii. the pressure of family on both time and
money commitments,
ix. hurt pride,
x.
lack of market awareness,
xi. falling in love with own product,
xii. lack of fiscal responsibility and awareness,
xiii. lack of a clear focus,
xiv. more investment money than business sense,
and
xv. not having a blend of optimism, realism and

pessimism.
Overcoming these pitfalls is clearly more difficult
than those associated with catastrophic failures.
These pitfalls also articulate the origins of failure
better than Clarks (1997) three Ms, though each of
these issues could be categorised in such a way.
Lussier and Corman (1995) also examined a list of
15 resources purported to distinguishing business
success from failure compiled through a metaanalytic review of the available literature. They
believed that successful small businesses had
significantly greater resources than failed
businesses (Lussier & Corman, 1995).
The results of their analysis indicated a far more
complex and again, psycho-social picture. It appears
that successful businesses had significantly greater
resources in 2 of the 15 variables; successful
businesses made greater use of professional
advisors, and more of them had parents who owned
a business. Conversely, failed businesses also had
significantly greater resources for two variables;
failed business owners had a higher level of
education; and an enjoyment of re-staffing (Lussier
& Corman, 1995). Their results also indicted that the
presence or absence of one or all of these variables
does not guarantee success or failure.
Conclusion
These results indicate the psycho-social factors such
as motivation, judgment, fatigue, family support,
self-efficacy, personality, education, attitudes, and
even maturity underlie more small business failures
than macro-economic conditions, and manifest
typically as poor management and marketing
practices. These results also arguer a greater role for
organisational psychologists alongside accountants
and lawyers in fostering small business success.
In this vein, Lewis (2000) suggested some practical
guidelines in order to avoid most of the common
pitfalls particularly associated with general lack of
success failures. These include: developing a
business plan and mission statement, maintaining
accurate financial information on the company,
profiling the target customer, profiling the
competition, going into business for the right
reasons, not borrowing family money and not ask
for family advice, networking with other businesses
in similar industries, not forgetting that someone
will always have a lower price, realising that tastes
change, and finally becoming better informed of the
resources that are available.
References
Alberici, E. (1999). The Penguin Small Business
Book. Ringwood: Penguin Books.
Altman, E. (1983). Why businesses fail. The Journal
of Business Strategy, 3(4), 15-21.
Australian Bureau of Statistics. (1998). Small
Business in Australia. Canberra: Australian
Bradley, D. & Moore, H. (1998). Small business
bankruptcy caused by lack of understanding of
business environment and consumer needs
[Online].
Available:
http://www.sbaer.uca.edu/DOCS/98icsb/g005.h
tm [2000, March].
Clark, S. (1997). Reasons for business failure come
in three broad groups. Puget Sound Business
Journal, 18(10), 13-14.
and Small Business. (1998). Annual Review of
Small
Business.
Canberra:
Australian
and Small Business. (2000). Small Business
[Online].
Available:
http://www.dwrsb.gov.au/group_osb/smallbus/
smallbus.htm [2000, February].
Gaskill, L. & Van Auken, H. (1993). A factor
analytic study of the perceived causes of small
business failure. Journal of Small Business
Management, 31(4), 18-32.
Lewis, A. (2000). Small business: Preventing failure
promoting success [Online]. Available:
http://www.sbaer.uca.edu/docs/Publications/pu
b00100.txt [2000, March].
Lussier, R. & Corman, J. (1995). There are few
differences between successful and failed small
businesses
[Online].
Available:
http://www.sbaer.uca.edu/docs/proceedings/95
sbi003.txt [2000, March].
Stanworth, J. & Purdy, D. (1998). Franchise versus
conventional small business failure rates in the
US and UK: More similarities than differences.
International Small business Journal, 16( 3),
56-70.
Jeff Patrick,
Griffith University
Email j.patrick@mailbox.gu.edu.au
Phone + 61 7 3875 7704
Acknowledgements
I would like to thank Ms Helene Dyer for her
valuable assistance in locating, screening and
copying the references used in this manuscript.
Comparing apples with oranges: Teaching and the issue of

incommensurability in organisational studies
Arthur Poropata
a
Abstract
Paradigm incommensurability has been an issue in
organisation studies research for at least the last
twenty years, however it also has implications for
academic teaching. A range of methods for dealing
with incommensurability are critiqued along with
some promising suggestions based on praxis as
opposed to theory.
Suggestions for academic
teaching emphasise the role of mutual exploration
and development of ideas.
Keywords
Paradigm Incommensurability; Teaching; Theory;
Praxis
Introduction
It is over two decades since the publication of
Burrell and Morgans (1979) pioneering analysis of
approaches to organisational research. In their study
they observed that organisational research can be
conceptualised as falling into several paradigms
which reflect researchers assumptions about issues
of ontology and epistemology. Although there are
reasons to question the nature of the dimensions
defined by Burrell and Morgan (Connell & Nord,
1996) their framework has formed the basis for a
broader critique of organisational theory (Cooper &
Burrell, 1988), new approaches to organisational
research (e.g. Hassard, 1991) and systems design
(Goles & Hirscheim, 2000), and a general
appreciation of the multiplicity of perspectives
adopted in the field highlighted particularly by the
development of metaphorical approaches to
organisation (Morgan, 1997).
One of the basic tenets of Burrell and Morgans
analysis is the idea that different approaches to
organisational analysis may not be merely different they are often incommensurable. For Burrell and
Morgan the paradigms are mutually exclusive in that
the approaches which fall within each paradigm are
based on meta-theoretical assumptions which
contradict those of alternative paradigms. One may
be able to adopt different paradigms sequentially but
cannot use more than one at any particular instance
because in doing so we defy the assumptions of all
the others (p.25). No synthesis is possible different paradigms are always left talking at crosspurposes.
Much of recent meta-theoretical discussion in
behavioural science generally and organisational
science specifically has been focussed around this
problem of the multi-paradigmatic state of current
research (Eastman & Bailey, 1996; Held, 1995;
Parker, 1995; Scherer & Steinmann, 1999).
For
many the thought that different approaches to
organisation can not be integrated is a difficult pill to
swallow. Such has been the level of debate about
this idea that Jackson and Carter (1993) labelled it a
paradigm war.
In teaching within the field of organisational studies
paradigm incommensurability raises the issue of
how best to communicate an understanding to
students of the nature of organisations when it is
almost inevitable that many students will be coming
from positions which are mutually incompatible
with those held by their teachers. This is only made
worse when the diversity of positions held among
academics or within organisations themselves is
considered. As an example it is possible using
Burrell and Morgans dimensions to similarly
analyse organisational teacher, student and manager
paradigms.
Table 1 presents a preliminary
comparison based on differences cited elsewhere
between academics and practitioners (Tsang, 1997),
as well as personal experience of teaching.
The point of this analysis is not to establish once and
for all the paradigm positions of these groups,
particularly considering the relative diversity of
each. Instead a general assessment of commonly
held positions within each group has been developed
by way of illustration. Although the details of this
analysis are open to argument, it still supports the
following conclusion: the dilemma of paradigm
incommensurability is not one just for the
researchers - academics wearing their teaching hats
also need to pay heed. Therefore in the rest of this
article
I
will
outline
the
nature
of
incommensurability and some of its implications for
academic teaching, before going on to highlight
possible approaches for dealing with the issue.
Table 1 Teaching and Practice Paradigms
SubjectiveObjective
Dimension
Theory of
Society
Dimension
Academic
Nominalist or
Realist
Student
Realist
Practitioner
Realist
Positivist
AntiPositivist
AntiPositivist
Voluntarist or
Determinist
Voluntarist
Determinist
Nomothetic
Idiographic
Idiographic
Stability
Change
Change
Conflict or
Integration
Integration
Integration
Coordination
Consensus or
Coercion
Coordination Coordination
Coercion
Consensus
The Nature of Incommensurability

Just as metaphor has proven useful as a tool for
understanding the nature of paradigms (Morgan,
1997), analogy may help to appreciate the nature of
incommensurability
itself.
The
term
incommensurable itself refers to lack of a common
measure, a problem of comparing apples with
oranges. Apples and oranges show some types of
incommensurability but not others. Apple growers
and orange growers can compare weights and prices
per tonne. Biologists can compare fruiting strategies
while nutritionists discuss vitamins, carbohydrates
and fibre.
Each of these are forms of
commensurability allowing comparison between
apples and oranges. However when eating or
cooking, preferences for, and qualities of, each fruit
are not interchangeable in any simple manner apples and oranges are just different and bring
different experiences to different people.
These leads to the observation that there are
different forms of (in)commensurability. Taste and
preference are at best fuzzy concepts whilst being
very tangible experiences which people are able to
discuss adequately but without precision. But one
persons tastes and preferences are not necessarily
the same as anyone elses. Simply because two
people are comparing the same dimension, taste,
doesnt mean they will assess it in the same way:
one may prefer apples while another prefers oranges.
This amounts to experiential incommensurability one persons felt experience can not be directly
compared with anothers.
A common way of negotiating experiential
incommensurability is through developing shared
frames of reference by identifying common
qualities, leading to common ways of talking along
the lines of Wittgensteins language games (Monk,
1991). Typically this form of commensurability is
developed by abstracting from experience. These

abstractions produce dimensions of measurement
which allow comparison (e.g. colour, weight and
caloric content) but give rise to incommensurability
between dimensions - e.g. colour and weight are not
directly comparable and hence illustrate dimensional
or conceptual incommensurability.
This usually
causes no problem because the different dimensions
whilst incommensurable are not necessarily
incompatible and may be complementary differences in dimension and experience do not have
to preclude the existence of other dimensions and
experiences.
Logical incommensurability however involves one
measure or discourse rendering another meaningless
(Jackson & Carter, 1991). Without disparaging (or
praising) either tradition it would be safe to suggest
that mysticism and economics are examples of such
discourses. Mystics and economists can look at the
same fruit, but their appreciation of it is profoundly
different - within one tradition an apple has financial
value, within the other its essence is intimately
connected with its experience. Although one could
alternate between a mystic and an economic
appreciation these perspectives are sufficiently
different to suggest that it is impossible to use both
at the same time. It is not merely a case of using
complementary concepts or dimensions because the
assumptions which underlie the dimensions
incompatible. To reduce an apple to a unit of value,
although coherent from an economic point of view,
does a severe violence to mystical appreciation of an
apples essence. Even when using similar words
they invoke disparate meanings e.g. value,
transformation, representation.
Thus these are
logically incommensurable paradigms.
To close the analogy, similar types of
incommensurability
exist
when
discussing
organisations. Different individual experiences of
organisation are unique and non-substitutable.
Participation in the same discourse or language
game allows coordination of behaviour and
discussion (Maturana & Varela, 1980) within and
about organisations but in doing so loses the
uniqueness of felt experience. And as Burrell and
Morgan (1979) point out the assumptions upon
which discourses or paradigms are based are often
logically incompatible. As a result the problem of
teaching in any meaningful manner when paradigms
are incommensurable remains profound.
Incomplete Responses to Incommensurability
The analysis of the nature of incommensurability
given above suggests a number of things for dealing
with the problem. Firstly it highlights several
important negative conclusions. To begin with, the
solution to the problem of incommensurability is not
simply a case of doing better science, or getting
better measures, contrary to what writers such as

Hogan & Sinclair (1996) would suggest. There
already exist remarkably powerful measures of
concepts as nebulous as personality and value.
Money for example as a measure of value has
proven its power through its successful use as a
means of exchange and relative valuation for things
as varied as guns, food, sex and medicine. Yet the
revulsion people feel at putting a price on what they
find most sacred is more than the horror at being
faced with a choice of the relative value they wish to
place on things - it is the recognition that the most
personal of choices do not fit neatly into a onedimensional concept of value.
People do make
choices between career, love, spirit, pleasure, health
etc everyday, but treating them as one set of values
denies the substance of experience. There is
something about life which resists abstraction to
dimensions, as useful as we find these to be, a
problem which is given voice each time a student
complains about being boxed by a personality or
cognitive assessment.
A second negative conclusion is that simply crossing
boundaries of incommensurability will not make the
problem go away.
Hassards (1991) attempt to
conduct multi-paradigm research on the same
organisation is a case in point. In effect his
approach involved four parallel analyses using each
of Burrell and Morgans paradigms, followed by a
discussion of comparisons and contrasts provided by
each methodology. At the very least it must be said
that this offers a more comprehensive approach to
research or teaching. However rather than resolving
the issue of incommensurability Hassards approach
appears to either revivify the distinctions between
paradigms or imply some form of meta-paradigmatic
decision-making process which incorporates
paradigmatic assumptions leading to circular
reasoning (Parker & McHugh, 1991). Rather than
transcending the problem Hassards strategy
recreates and potentially obscures it. The teaching
profession echoes this problem in calls for flexible
delivery wherein the fundamental differences in
approaches used are ignored and instead treated as
equivalents.
Other approaches which have been suggested but are
incapable of solving the problem are based upon
appeals to higher authority, be it reason or power.
Scherer and Steinmann (1999) give a brief
discussion on the problems with either form of
strategy. Reason, although it appears to provide a
sure footing for deciding between paradigms is
nonetheless reliant on paradigmatic assumptions.
Paraphrasing the argument they present, every
logical syllogism starts with propositions which are
assumed to be given. However if the assumptions
about the beginning propositions are questioned
further syllogisms are required for their support, and
so on and on in an infinite regress (Albert, cited in

Scherer & Steinmann, 1999). Each iteration merely
rediscovers the assumptions on which the previous
one was based. Therefore if two positions are
incompatible appeals to reason will only produce an
infinite regress or circular arguments. Teachers who
rely on their argumentative ability can not assume
that students will, or should be, swayed by their
logic because of this.
Pfeffer (1993) on the other hand proposed that
scientific gatekeepers insist on certain standards of
acceptable scientific practice within the discipline,
an autocratic proposal which is clearly dogmatic and
antiscientific (Canella & Paetzold, 1994). Likewise
academic teachers are prone to resting upon their
own claims to higher authority. The implicit power
structure in universities has teachers both providing
knowledge and assessing / rewarding / punishing
students according to their compliance with the
explicit and implicit demands of the system.
Academics may make their claims to authority on
the basis of reason or knowledge, but as noted above
this is ultimately as arbitrary as Pfeffers call for
standards of practice. This seems to be a poor basis
for learning anything apart from mimicry.
Theory and Praxis

Scherer and Steinmann (1999), drawing inspiration
from Lueken (1992) suggest a way out of the
dilemma of paradigm incommensurability for
researchers, but their recommendation has
application to teaching as will be seen. Their model
emphasises the lived nature of knowledge by making
praxis (actions or systems of actions) the basis of
their model. For Scherer & Steinmann theories and
theoretical praxis arise from a pre-theoretical praxis
rather than the reverse. The purpose of theoretical
praxis is to develop alternatives when practical
know-how needs reconsideration. Theory-supported
praxis which follows this review then forms the
basis for further development of pre-theoretical
praxis as presented in Figure 1.
Theory-supported praxis
Theoretical praxis
Pre-theoretical praxis
Figure 1 The Theory-Praxis Relationship (Scherer &

Steinmann, 1999)
In summary Scherers and Steinmanns claim is that

incommensurability only arises in discussions of
theoretical praxis, and only then when a process of
reasoned argumentation has highlighted fundamental
inconsistencies between positions. Where orthodox
scientific reasoning would attempt to resolve this by
questioning assumptions leading to an infinite
regress or circular argument, the solution that
follows from this alternative model is that the
proponents instead explore each others pretheoretical praxis. In other words they should try
walking in each others shoes to come to an
understanding of their felt experience. On the basis
of this they are then able to begin collaboratively
developing a new theoretical praxis based on their
newly-shared appreciation of their joined actions
and forms of life.
This approach has already received some inadvertent
confirmation in the form of a special issue of The
Journal of Applied Behavioral Science. Writers
from disparate and, in Burrells and Morgans terms,
incommensurable positions were invited to provide
accounts of their paradigmatic positions. Gergen
and
Thatchenkerys
(1996)
postmodern
philosophical critique would fit into Burrells and
Morgans radical humanist paradigm while Hogan
and Sinclairs (1996) defence of empirical research
is clearly a functionalist position. Although not as
easily categorised, Chris Argyriss (1996) action
science shares aspects of a radical structuralist
paradigm but Connell and Nords (1996) agnostic,
value-oriented framework is somewhere between
the others. Despite this degree of paradigmatic
discord between the various contributors, Eastman
and Bailey in their review of the special issue stated
that we see in all of them taken together a charter
for organisational scholarship that is more
normatively candid and action-oriented than has
been characteristic in the discipline (Eastman &
Bailey, 1996; p.455).
Eastmans and Baileys point of agreement is
entirely in sympathy with the proposal put forward
by Scherer and Steinmann. This is not to down-play
the differences between the paradigms, nor to
suggest they have been resolved - they are still
clearly incommensurable positions. However it does
highlight that the point at which agreement is
possible, and the potential for traversing the
boundaries between these paradigms presents itself,
is the point of praxis.
There are clear implications for the teaching
relationship from this discussion.
Academics,
students and managers may occupy different
incommensurable positions but there is always the
possibility of transcending those positions through
collaboratively exploring each others worlds. The
suggestion that researchers and practitioners need to

have a ongoing dialogue is relatively common Tsang (1997) is just one recent example. Academic
teachers are often exhorted in similar manner. The
problem has often been however that the dialogue
has been between alternative forms of theoretical
praxis without a common pre-theoretical basis. As a
consequence participants are likely to do little more
than rediscover how different they are.
Instead academic teachers need to more strongly
emphasise approaches which encourage mutual
experience and allow for development of new
frameworks. The growing popularity of action
learning is a case in point (Marsick, V. J. , 1999;
Wade, S., & Hammick, M. 1999), but so are
newer teaching approaches such as active dialogue.
In any case the approach used needs to be
continually refreshed by revisiting each others
world-space. Any fallback to a formulaic style has
the potential to subtly re-impose a dominant
paradigm, something all too easy given the power
differentials which exist in universities where marks
are the coin of the realm and academics are the only
dispensers thereof. A genuine engagement with the
experience of others will instead allow for more
honest learning for not only students but for
academics as well.
Conclusion
Incommensurability is not a curse. As has been
pointed
out
elsewhere
acceptance
of
incommensurability
empowers
alternative
approaches to knowledge and its creation (Jackson
& Carter, 1991). Those alternative approaches
include the approaches which students bring to their
studies. However failure to honestly confront
paradigm incommensurability when it arises is both
intellectually suspect and a denial of an opportunity
for growth in knowledge. This is just as true for the
teaching relationship as it is for research. Honest
teaching requires a mutuality of exploration
commonly absent from university settings. The role
of the academic teacher therefore should more
strongly emphasise the creative development of
settings for dialogue.
References
Argyris, C. (1996). Actionable knowledge: Design
causality in the service of consequential theory.
The Journal of Applied Behavioral Science, 32,
390406.
Burrell, G. and Morgan, G. 1979 Sociological
Paradigms and Organisational Analysis:
Elements of the Sociology of Corporate Life.
Heinemann, London.
Cannella, A, A., Jr., & Paetzold, R. (1994).
Pfeffers barriers to the advance of
organizational science: A rejoinder. Academy

of Management Review 19, 331-341.
Connell, A., & Nord, W. (1996). The bloodless
coup: The infiltration of organisation science
by uncertainty and values. The Journal of
Applied Behavioral Science, 32, 407-427.
Cooper, R., & Burrell, G. (1989). Modernism, postmodernism and organizational analysis: An
introduction. Organization Studies, 9(1), 91112.
Eastman, W. N., &
Bailey, J. R. (1996).
Epistemology, action, and rhetoric: Past and
present connections. The Journal of Applied
Behavioral Science, 32(4), 455-461.
Gergen, K. J., & Thatchenkerry, T. J. (1996).
Organisation science as social construction:
Postmodern potentials. The Journal of Applied
Behavioral Science, 32(4). 356-377.
Goles, T., & Hirscheim, R. (2000). The paradigm is
dead, the paradigm is deadlong live the
paradigm: The legacy of Burrell and Morgan.
Omega, 28(3), 249-268.
Hassard, J.
(1991). Multiple paradigms and
organizational analysis: A case study.
Organization-Studies, 12(2), 275-299.
Held, B. S. (1995). Back to reality: A critique of
post-modern theory in psychotherapy. New
York: W. W. Norton.
Hogan, R., & Sinclair, R. (1996). Intellectual,
ideological, and political obstacles to the
advancement of organizational science. The
Journal of Applied Behavioral Science, 32,
378-389.
Jackson, N, & Carter P. (1991). In defence of
paradigm incommensurability. Organization
Studies 12(1), 109-127.
Jackson, N, & Carter P. (1993). `Paradigm wars:
A response to Hugh Willmott. Organization
Studies 14/5: 721-725.
Lueken, G.-L. (1992). Inkommensurabilitit als
Problem
rationalen
Argumentierens.
StuttgartBad-Cannstatt: Frommann-Holzboog.
Cited in Scherer A. G. & Steinmann H. (1999).
Some remarks on the problem of
incommensurability in organization studies.
Organization Studies, 20(3), 519-544.
Marsick, V. J. (1999). The many faces of action
learning. Management Learning, 30, 159-176.
Maturana, H. R., & Varela, F. J.
(1980).
Autopoiesis and cognition : the realization of
the living.
Boston: D. Reidel Publishing
Company.
Monk, R. (1991). Ludwig Wittgenstein : The duty
of genius. London : J. Cape.
Morgan, G. 1997 (2nd Ed.) Images of Organization.
Sage Publications, California.
Parker, M. (1995). Critique in the name of what?
Postmodernism and critical approaches to
organization. Organization Studies, 16/4, 553567.
Parker, M., & McHugh, G. (1991). Five texts in

search of an author: A response to John
Hassards
Multiple
paradigms
and
organizational analysis.
Organization
Studies, 12(3), 451-456.
Pfeffer, Jeffrey (1993). Barriers to the advance of
organizational science: Paradigm development
as a dependent variable. Academy of
Management Review, 18, 599-620.
Scherer A. G. & Steinmann H. (1999). Some
remarks on the problem of incommensurability
in organization studies. Organization Studies,
20(3), 519-544.
Tsang, E. W. K. (1997). Organizational learning
and the learning organization: A dichotomy
between descriptive and prescriptive research.
Human Relations, 50(1), 73-89.
Wade, S., & Hammick, M. (1999). Action learning
circles: Action learning in theory and practice.
Teaching in Higher Education, 4, 163-179.
Arthur Poropat
Nathan Campus
Griffith University
Nathan Q 4111
Australia
(617) 3875 7757
arthur.poropat@mailbox.gu.edu.au
Emotional stability and attributional style: Relationship and

implications for research and practice
Arthur Poropat
Abstract
Personality traits have been shown to have
significant impacts upon work performance,
however the underlying nature of personality and
the reasons for its impact have not been explained.
One particular dimension of personality, Emotional
Stability, has been shown to predict performance
and has theoretical links with a cognitive process
variable, attributional style. This study found a
significant relationship between Emotional Stability
and attributional style. Implications of these results
for employee selection and training are discussed.
Keywords
Emotional
Stability,
Attributional
Performance, Employee Selection, Training
Style,
Introduction
Over the last ten or more years trait-based theories
of personality have re-established themselves within
organisational studies. After some serious critiques
of traits as predictors of behaviour and performance
(notably Mischel, 1968) evidence has been
accumulating that personality traits are stable
(Epstein, 1986), and are reliable predictors (Borman,
Hanson & Hedge, 1997). Personality dimensions
from the so-called Big Five or Five-Factor Model,
the most-widely used current factor structure
(Hogan, Hogan & Roberts 1996), have been
correlated with sales (Barrick & Mount, 1991),
performance ratings (Ones, Viswesvaran & Schmidt,
1993), customer service (McDaniel & Frei, 1998),
training success (Hough, 1992), and decision
making (Remus & Kotteman, 1998).
Theoretical understanding of these relationships
remains elusive (Borman, Hanson, & Hedge, 1997;
Eysenck 1993). Personality traits derived from
factor analysis of personal descriptors highlights the
underlying dimensions of description. However it
leaves the processes which produce the behaviours
on which those descriptions are based a mystery
(Magnusson & Trestad, 1993; Revelle, 1995).
Mischel and Shoda (1998) outline theoretical
reasons and evidence that cognitive-attentional
processes underlie personality dimensions and
provide long-term stability. An example of the type

of process Mischel and Shoda refer to is the process
of delaying gratification in order to complete an
activity, often with a greater reward in mind. The
ability to employ this process in childhood has been
linked to a range of behavioural outcomes in later
life (Mischel, Shoda & Rodriguez, 1989) as well as
higher achievement on the Scholastic Aptitude Test
(Shoda, Mischel & Peake, 1990), and better ratings
of competencies including use of planning, response
to stress, and distractibility (Mischel & Shoda,
1998). Mischel and Shoda suggest that these sorts
of consistencies may form a link between
personality as measured in factor-analytic studies
and underlying cognitive-attentional activities.
A number of studies have provided results consistent
with the view that cognitive variables may underlie
personality dimensions especially for Emotional
Stability (the opposite pole of which is sometimes
referred to as Neuroticism). Emotional Stability has
been linked with fewer task-irrelevant cognitions
(Newton, Slade, Butler & Murphy 1992), reduced
distractibility (Sacco & Olczak 1996), enhanced
visual search speed (Magaro, Smith & Ashbrook
1983) and greater memory performance (Kello
1977). There are a range of reasons for believing
that attribution theory may also be a promising
avenue to explore when looking for cognitive
activities that may be associated with personality
dimensions such as Emotional Stability (Peterson,
Maier, & Seligman, 1993).
Attributions are the many and varied ways in which
people attempt to associate events in order to
understand the nature of what causes them (Munton,
Silvester, Stratton & Hanks, 1999). Weiner (1995)
links the origins of attribution theory to writers on
areas such as relationships (Heider, 1958),
ascriptions of disposition (Jones & Nisbett, 1972),
inferential processes (Kelley, 1967), and causal
assumptions (Rotter, 1966). Perhaps as a result of
this disparate parentage attribution theory has been
found to be particularly appropriate to a variety of
organisational behaviour issues such as cooperation
(Weiner, 1995), leadership (Farquhar, 1995) and
performance (Schulman, 1995).
One of the key contributions of attribution theory is

its exploration of the ways in which attributions
vary. Martinko (1995) states that apart from the
specific events explained within an attribution,
attributions vary in terms of target (self or other),
function (description, evaluation and selfpresentation) and various cognitive dimensions (e.g.
locus of causality, temporal stability). The fact that
people habitually favour certain sorts of attributions
over others has given rise to a range of methods for
assessing attributional habits or style, such as
Content Analysis of Verbatim Explanations or
CAVE (Colligan, Offord, Malinchoc, & Schulman,
1994) and a range of attributional style
questionnaires (Henry & Campbell, 1995; Kent &
Martinko, 1995; Peterson, Semmel, von Baeyer,
Abramson, Metalsky, & Seligman, 1982; Peterson &
Villanova, 1988).
Much of the work on assessing attributional style
has been inspired by Seligmans (1975) theory of
learned helplessness and its reformulation in
attributional terms (Abramson, Seligman, &
Teasdale, 1978). This theory sees helplessness to be
an analogue for depression and suggests that it is a
direct outcome of the type of attributions people
make about negative events in their life. Within this
theory the key dimensions by which attributional
style varies are internal/external, stable/unstable and
global/specific. Internal attributions are ones which
assume that the individual is responsible for the
event, as opposed to external attributions which
place responsibility upon other people or
circumstances. Stable attributions are those which
remain present over time. Global attributions are
those which apply to all situations an individual
encounters, as opposed to specific attributions which
relate to more constrained sets of circumstances.
People who make internal, stable and global
attributions about negative events, and the reverse
sort of attributions about positive events, are
considered as a consequence to feel pessimistic and
more prone to depression as a consequence
(Peterson, Seligman, Yurko, Martin & Friedman,
1998). On the other hand, people who make
internal, stable and global attributions about positive
events are considered optimistic and there is some
evidence that this attributional style protects people
from depression (Seligman, 1991).
Consistent with the learned helplessness idea,
attributional style appears to be amenable to learning
(Seligman, 1991).
Carver (1989) in particular argued that individual

dimensions of the ASQ should be reported
separately because they appear to provide separate
levels of prediction. This argument is partially
confirmed by the factor structure of the ASQ.
Results from previous studies suggest that for
positive events and for negative events there are two
separate factors: a composite of stability and
globality for positive events labelled hopefulness,
and an internal/external factor; a composite of
stability and globality for negative events labelled
hopelessness and an internal/external factor (Bunce
& Peterson, 1997; Haugen & Lund, 1998; . Corr &
Gray, 1996). Hopefulness and hopelessness seem to
operate as measures of optimism and pessimism
respectively
(Corr
&
Gray,
1996).
Internality/externality may be related to Rotters
Locus of control (Rotter, 1992), although this is
open to dispute (Peterson & Stunkard, 1992).
Implications for motivation and behaviour have been
drawn from this theory and a range of studies have
shown significant relationships between attributional
style and various measures of relevance to
organisational behaviour, performance in particular.
Seligman and Schulman (1986) found that
attributional style was related to both sales and
length of employment in sales a finding confirmed
by Corr and Gray (1996). Yates, Yates and Lippett
(1995) observed a link between attributional style
and mathematics performance, while Rettew and
Reivich (1995) obtained a correlation between sports
players recovery from defeat and attributional style.
Schulman (1995) summarises a range of further
studies linking attributional style and performance,
which support the importance of this concept.
The fact that attributional style and personality share
an impact upon variables such as performance,
emotion and motivation provides a reasonable
justification for suggesting that there is a link
between these variables. Some research has already
provided evidence to support this. As discussed
above pessimism has been used as an explanation
for depressive symptoms and depressive symptoms
have likewise been linked to Emotional Stability
(Rusting & Larsen, 1998; Nolan, Roberts & Gotlib
1999). Therefore it seems reasonable to suggest that
there will be a negative relationship between
Emotional Stability and pessimism as measured by
hopelessness on the one hand, and a positive
relationship between Emotional Stability and
optimism as measured by hopefulness. This study
reports on an examination of these relationships.
Research using the Attributional Style Questionnaire

or ASQ (Peterson, Semmel, von Baeyer, Abramson,
Metalsky, & Seligman, 1982; Peterson & Villanova,
1988), suggests however that the picture is a little
more complex than Pessimism and Optimism.
Methodology
Measures
Emotional Stability
The Emotional Stability scale from Sauciers (1994)
Mini-Markers was used to assess this dimension of
personality. Sauciers scales are an abbreviated
version of Goldbergs (1992) scales which are
specifically focussed on measuring the Big Five
Factors (Widiger & Trull, 1997). Although briefer
(eight vs twenty items in the Emotional Stability
scale) the Mini-Marker scale for Emotional Stability
has comparable reliability and fewer difficult items
(Saucier, 1994; Dwight, Cummings & Glenar 1997).
Explanatory Style
The Attributional Style Questionnaire or ASQ
(Peterson, Semmel, von Baeyer, Abramson,
Metalsky, & Seligman, 1982; Peterson & Villanova,
1988) was developed specifically to assess
attributional style in the framework of the
reformulated theory of learned helplessness.
Although individual sub-scales have low reliability
the composite scores have acceptable Cronbach
alphas and test-retest reliability (Reivich, 1995). As
described in the introduction scores for
internal/external
for
negative
events,
internal/external for positive events, hopelessness
and hopefulness were calculated within this study.
Participants and Procedure
Participants were students in a first year introductory
management subject at the Nathan campus of
Griffith University. Inclusion in the study was
voluntary, although completion of (and feedback and
discussion upon) the assessments described in the
measures section forms a part of the learning process
for the subject. Of the 282 students who initially
enrolled in the subject 239 agreed to have their
results included within the study. However because
the assessments were conducted at different times
only 174 participants provided useable data on both
instruments. Participants ranged in age from 17 to
53 with an average age of 20.8 years. Males
accounted for 47% of participants and 22.5% were
students from non-English speaking countries.
Results
The Cronbach Alpha for Emotional Stability (0.75)
is consistent with that reported by Saucier (1994)
and Dwight, Cummings and Glenar (1997), and is
similar to the average internal consistency reliability
for measures of Emotional Stability (0.78) reported
by Viswesvaran and Ones (2000). The Cronbach
Alpha for the Internal/External scale for Positive
(0.55) and Negative (0.47) events is low but
consistent with other findings (cf. Kent & Martinko,
1995). The other scales reported for the ASQ have
acceptable reliabilities (Hopelessness - 0.72;
Hopefulness - 0.73) and are above the typical range
for these scales quoted by Barnett and Gottlib

(1988).
Emotional Stability correlated significantly in
predicted directions with Hopelessness ( r = -0.14, P
< 0.05 one-tailed) and Hopefulness ( r = 0.18, P <
0.01 one-tailed) were significant. Internal/external
negative did not correlate significantly with
Emotional Stability, nor with Hopefulness, although
it was correlated with Hopelessness (0.27 , P < 0.01
one-tailed). There was no significant correlation
between Hopefulness and Hopelessness.
Discussion
On the basis of this research attributional style
accounts for a small but significant proportion of the
variance of Emotional Stability. The correlations
reported represent a conservative estimate of this
relationship given the very different approach to
measurement used by the Mini-Markers and the
ASQ and the fact that they were designed to assess
at different levels of analysis (global personality
versus specific cognitive processes).
As predicted pessimism (as represented by the
Hopelessness scale) is associated with reduced
Emotional Stability, while optimism (represented
here by the Hopefulness scale) links to greater
Emotional Stability. This finding is consistent with
the ideas presented in the introduction and with the
views of other writers. For example Abramson,
Metalsky and Alloy (1989) suggest that a stable and
global attributional style for negative events leads to
a sense of hopelessness about which one has no
control - a person sees themselves as a victim of the
fates and their emotions are captive to events. On
the other hand people with a stable and global
attributional style for positive events are likely to see
the world as typically offering good things and
consequently would be immunised against
adversity (Seligman, 1991).
A persons selfperception would tend to reflect this increased or
decreased lability of affect, leading to their
assessment of themselves on the Emotional Stability
scale as observed here.
The fact that both Emotional Stability and the ASQ
scales have been shown to be linked to work
performance especially in the area of sales is
consistent with this finding. It would be profitable
to determine the extent to which these relationships
with work performance are independent. Some
authors have already concluded from the association
between Emotional Stability and performance that
this scale should be used for selection purposes
especially in customer service situations (e.g..
Hogan, Hogan, & Roberts, 1996). It may be
tempting to conclude from this and other studies that
attributional style can make a contribution to
organisational behaviour in a similar manner
through the use of instruments modelled on the ASQ

for selection. An alternative and probably easier
approach would be to further explore the
relationship between the ASQ and various subscales of Emotional Stability, and to target these
sub-scales for selection purposes.
However attributional style has been shown to be
modifiable through counselling and training and
consequently a range of training approaches for
enhancing ones optimism have been developed
(Seligman, 1991). Training of staff to enhance their
resilience in the face of adversity may have similar
or better effects upon performance than use of
refined selection procedures, and may prove to be
better targeted. For example a salesperson who has
learnt how to respond effectively and maintain their
emotional centre in response to an obstreperous
customer may well produce a better result than one
who is naturally inured to difficulty, but does not
respond well. Indeed much of current sales training
is already, perhaps unconsciously, directed at
enhancing the ability of sales staff to respond
effectively to negative events and maintain their
motivation. It would be instructive and practically
informative therefore to follow up this study with
prospective comparisons of selection and training
strategies for performance in occupations which
profit from greater Emotional Stability and
optimism.
In summary this study shows that Emotional
Stability is linked to attributional style. This finding
holds future promise for greater understanding of
personality and for managing performance in the
workplace.
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Arthur Poropat
Nathan Campus
Griffith University
Nathan Q 4111
Australia
(617) 3875 7757
arthur.poropat@mailbox.gu.edu.au
The contribution of a cross-cultural adjustment framework to workrole transitions

Sheryl Ramsay, Liz Jones and Michelle Barker
School of Management, School of Management, Australia
Abstract
The aim of this paper is to highlight the relevance of
the cross-cultural adjustment literature in
developing an understanding of work-role
transitions. The paper takes Andersons (1994)
model of cross-cultural adaptation and argues that
her model may address some of the shortcomings of
research in the work-role transition area identified
in the literature.
Keywords
Transition, adjustment, culture
Introduction
Transition periods are commonly recurring features
of personal life histories (Fisher, 1990) and arise as a
result of changes at the physical, intrapersonal or
sociocultural level of the person or the environment
(Demick, 1996). Across the life span, many different
transitions are experienced, including transitions to
work, educational institutions, parenthood, and
retirement (Demick, 1996). Although the experience
of change and transition is commonplace, Nicholson
(1990, p. 85) claims that theories and methods in
psychology often incorrectly embody assumptions
of static social conditions, and therefore, provide a
limited view. By their nature, however, transitions
need to be viewed as experiences through time
where a person moves from the initial point of
impact into more strategic adjustments (Nicholson,
1990, p. 86).
As the employment context becomes more dynamic,
the experience of work-role transitions also
increases as people change roles and organisations
more regularly (Kidd, 1998). During such transitions
which often involve entry to a new organisation,
there can be great uncertainty regarding role
requirements (Ashforth & Saks, 1996, p. 149). A
work role refers to a set of expected behaviour
patterns attributed to someone occupying a given
position in a social unit (Robbins, 1996, p. 304).
Role transitions involve adjustments and can be
conceptualised in terms of person-environment
interactions (Feij, 1998).
Adjustment may be
defined as a dynamic and interactive process that
takes place between the person and the environment,
and is directed toward an achievement of fit between

the two (Anderson, 1994). Adjustment involves
learning processes which refer to the ways in which
individuals acquire knowledge and skills, essentially
enlarging their personal resources to cope with the
new context (Boekaerts, 1993).
Work role transitions

Research has focused on the way the newcomer
performs the role and, to a lesser extent, on the
changes to the identity of the newcomer as a person
in a new environment (Ashforth & Saks, 1995;
1996). Socialisation is the term used in the
organisational context where newcomers undergo
the normative process of adaptation of the
individual to the values, demands and expectations
of the social structure (Feij. 1998, p. 247).
Experiences of organisational socialisation show
great variation from very informal, laissez-faire
processes to highly structured training courses (Feij,
1998). In this regard, Ashforth and Saks (1996)
examined the organisations role in the socialisation
of newcomers and found that a relatively structured
approach to socialization was associated with higher
job satisfaction, organisational commitment and
organisational identification, as well as lower stress
symptoms, role ambiguity and intention to quit.
From the more individual perspective, Munton and
West (1995) found that lower levels of self-esteem
were associated with lower levels of role innovation
when undertaking new roles. In addition, the
everyday interactions that newcomers have with
more experienced people within the organisation are
also significant in terms of socialisation (Feij, 1998).
Furthermore, it is important to note that people are
proactive agents in their new environments
(Anderson, 1994). For example, newcomers who
seek out information are more likely to experience
higher levels of adjustment (Mignerey, Rubin &
Gorden, 1995).
A number of researchers have indicated that role
transitions need to be conceptualised more broadly
and with greater complexity.
It has been
recommended that macro factors such as the culture
of the organisation or sub-unit (Ashforth & Saks,
1996) and dynamics of the work group (Nicholson,
1990) be considered in the understanding of role

transitions. In addition, the importance of teasing
out subjective meanings and dynamic interactions
underlying transitions processes has been
highlighted (Ashforth & Saks, 1995, p. 173).
Munton and West (1995) suggest that future
research could examine the importance of both
socialisation processes (e.g. training) and social
psychological factors (e.g. social support) on role
and personal adjustment. Kidd (1998) suggests that
a promising way forward is to take further account
of the emotional and cognitive experiences and
resulting actions, which accompany role transitions
for individuals, as theorised by Lazarus (1991).
Culture
The experiences of the individual within the broader
environment can be further understood through the
concept of culture. Culture refers to widely shared
ideals, values, formation and uses of categories,
assumptions about life, and goal-directed activities
which occur in large groups with which people have
strong emotional ties (Brislin, 1990, p. 11). Thus,
culture is embodied within societies, as well as
within more specific groups which can include a
work group (Unsworth & West, 2000). In the
organisational context, Smircich (1983) suggests
that one perspective on
culture is through
organisational symbolism where organisational
members interpret and understand work related
experiences, and upon which they base their actions.
Essentially, the values, norms and behavioural
patterns which make up culture influence daily
practices and events (van Muijen, 1998), and
therefore impact upon those making role transitions.
Andersons model of cross-cultural

adaptation
The importance of culture in work role transitions
indicates that cross-cultural adjustment theory may
offer insights into the study of transitions more
generally.
Because cross-cultural research has
examined the experiences of people taking up
residence in a different country (a new cultural
context) there is some information about the effects
of transition to a new environment. Ward, Okura,
Kennedy & Kojima (1998), for example, found that
both psychological (depression) and sociocultural
(social difficulty) adjustment problems were found
to be more evident in the initial phases of the
sojourns of international students.
It is proposed here that Andersons (1994) model of
cross-cultural adaptation may be used to better
understand role transitions because it highlights
adjustment and learning processes as it captures the
dynamic, ongoing interactions between the person
and the environment.
Essentially, the model
proposes that within a new environment people have

a series of affective, cognitive and behavioural
responses to obstacles which arise from the self and
the environment, and which lead to ongoing change
and development within the self and the
environment (Anderson, 1994). The model
encompasses the concept of person-environment
interactions which are particularly important during
transition periods (Staton, 1999). The concept of
person-environment fit has been used by researchers
to capture the ideas of congruence or incongruence
between the person and the environment. While
early research indicated that congruence was
generally associated with satisfaction with the
environment, and incongruence with dissatisfaction
and emotional stress (Grove & Torbiorn, 1985),
person-environment fit is now recognised as a much
more complex phenomenon (Hampton, 1991).
Importantly, person-environment fit is not a static
concept. Rather, it is based on continuous
interactions between the person and the
environment, wherein the environment impacts on
the person, and the person also impacts on the
environment. Thus, person-environment interactions
need to be considered as dynamic, interpretive and
process-oriented (Hampton, 1991). Significantly,
environment itself is a multi-faceted concept
which includes the physical setting, social
atmosphere and culture of the organisation (Staton,
1999). Furthermore, organisations should not be
treated in isolation as they are nested within, and
subject to, many external forces including wider
community values and debates.
In considering how someone becomes successful in
a new work environment, Feij (1998) writes that an
interdisciplinary approach is required where three
types of knowledge are necessary.
The first
concerns personal factors including capacities,
interests, values and role behaviours and the way
these capacities develop together within the
particular environment. It is important to note that
role innovation and creative problem-solving, rather
than conformity, are attributes often valued by
organisations, particularly in professional and
management roles (Vogt & Herzog, 1989). The
second type of knowledge needed in a new work
environment concerns the particular structure of the
environment itself, and the third includes the wider
political, social and cultural context which impacts
in a range of ways including the effect of
government policy on work and training
opportunities and circumstances (Feij, 1998). As
further noted by Lazarus (1999), the dynamic,
interrelated and complex nature of adaptational
processes make them difficult to research and
quantify, and should not be treated narrowly.
This complexity is captured by Andersons (1994)

model as it proposes that the learning which takes
place during adjustment involves the interplay of
emotions and cognitions, followed by associated
actions. Andersons model has four major
components, each of which is described briefly here.
The model commences with a general cultural
encounter when the person first enters the new
culture. In the second stage, it is proposed that
people experience various obstacles which are
presented either by the environment or the self.
Examples of environmental obstacles could include
local bureaucratic processes and accommodation
difficulties, while obstacles presented by the self
could include inadequate knowledge of the local
language and difficulty coping with loneliness. In
the
organisational
context,
examples
of
environmental obstacles could include lack of
orientation information and less than expected
support for new ideas from colleagues, while
obstacles presented by the self could include lack of
confidence in a new role and difficulty in dealing
Experience/encounter
Responses
Affective (e.g. apprehension; surprise)
Cognitive
(e.g.
realistic/unrealistic
expectations)
Behavioural (e.g. gather information)
with lack of social support from familiar workmates.

Largely because the obstacles lead to perceptions of
personal imbalance or disequilibrium, various kinds
of response generation actions occur in the third
stage of Andersons model. The aim of these
actions is to improve the fit between the person and
the environment. Actions can vary widely but could
include seeking feedback or changing activities.
The fourth stage is the overcoming phase where
adjustment is usually, but not always, reached.
Although Andersons model is based on the
intercultural transition experience, such a process is
directly applicable to other transitions where
relationships with others and the environment are
also in a state of change (Demick, 1966) . Being
alive at home or abroad means having to cope with
disruptive events, adjustive crises (Anderson,
1994, p. 299). This approach to adjustment takes an
active learning perspective where the significant
features of the culture are learned through
experience within it. For example, in the work
context the value placed on
working as part of a team or
the prevailing supervisory
styles may be important
characteristics to learn in the
new organisational culture.
A summary of Andersons
model is given in figure 1.
Interplay of affective,
cognitive and
behavioural responses
Obstacle
Responses
Affective (e.g. disbelief; hopefulness)
Cognitive (e.g. question values)
Behavioural (e.g. try out new behaviours;
avoid)
Response generation
Responses
Affective (e.g. apathy; interest)
Cognitive (e.g. search for meaning)
Behavioural (e.g. develop skills; withdraw)
Overcoming
Responses
Affective (e.g. self-confidence)
Cognitive (e.g. independence)
Behavioural
(e.g.
communication)
more
Figure 1 Andersons (1994) model of cross-cultural adaptation

assertive
Central to Andersons model

is the idea that adjustment
involves learning. In an
organisational context, this
learning
might
involve
managing and developing a
new role in an unfamiliar
context, developing different
personal networks for task
and social support, and
understanding
the
organisational
culture
including its implicit, though
powerful,
social
rules
(Henderson & Argyle, 1986).
Learning,
however,
is
facilitated or hampered by
emotions, moods and feelings
(Boekaerts, 1993). Lazarus
(1999, p. 34) lists 15 different
emotions and states that
Each emotion tells us
something different about
how a person has appraised
what is happening in an
adaptational transaction and how that

coping with it.
person is
As can be seen in figure one, each stage has

affective, cognitive and behavioural responses which
occur. These interrelated responses have been
recognised as central to human functioning and
adjustment processes (Anderson, 1994; Kim, 1995).
According to Lazarus (1991, p. 31), the experience
of an emotion or a change in the intensity or type of
emotion is related to a change in the personenvironment relationship or a change in the status
of the business at hand. An organisational example
would be the emotions experienced in response to
unexpected negative feedback (e.g. lack of support
for an innovative idea drawn from previous
workplace). Personal evaluations based on
cognitions are integral to the experience of emotion
because each person appraises the effect on wellbeing and the person-environment relationship in
different ways. In conjunction with such appraisals
and emotions, the person may choose different
actions or behavioural responses (Lazarus, 1991). In
the above example, actions could include presenting
the information differently, presenting the ideas to a
different audience, asking for more information
about the culture from new colleagues, or
withdrawing emotionally from the new workplace.
Fisher (1986) notes that a perceived imbalance
between the person and the environment is thought
to provide significant motivation towards particular
actions.
Importantly, Ekman and Davidson (1994), claim that
most researchers of emotion agree that emotions
organise behavioural and physiological patterns to
deal with emotion-evoking events, interrupting less
important ongoing activities.
Emotions may,
however, disorganise behaviour and planning when
they occur at high-intensity levels (Ekman &
Davidson, 1994). While the emotional, cognitive,
and
behavioural
responses
are
separated
conceptually, in reality they interpenetrate and
influence each other (Anderson, 1994).
Obstacles in the new environment

While Anderson (1994) highlights obstacles in the
environment, it is also proposed that positive events
can contribute to learning and adjustment. Positive
events from the environment could include such
things as direct praise for work accomplishments
and attention to orientation needs by the organisation
during the transition phase, while positive
experiences from the self would include feelings of
success and confidence in the new role and
perceptions of acceptance from others.
generally, where considerably more attention has

been given to negative experiences and subsequent
coping responses than to the effects of positive
events. The lack of research into the impact of
positive experiences has been highlighted by
Langston (1994).
He argues that positive
experiences also impact strongly on cognitive
processes. Positive events may be perceived and
appraised as opportunities and people may capitalise
upon such opportunities in a way which enhances
learning and development (Langston, 1994).
Moreover positive affect has been shown to foster
problem solving and thinking (Isen, 1999). A
supportive learning environment, for example, is
seen as an important, emotionally positive factor in
the adaptable learning process (Boekaerts, 1993).
More specifically, and in terms of Andersons model
(1994), critical positive events could be considered
as catalysts for emotions, cognitions and actions
which contribute positively to adjustment and
learning processes.
Work role transition cycle

Andersons model has some similarities with the
process model developed by Nicholson (1990, p. 87)
where his transition cycle again captures the idea
of experiences through time in the work context.
Nicholsons model was developed to help explain
transitions into different work roles.
Like
Andersons model it does not prescribe that certain
experiences will or will not occur (Nicholson, 1990)
but provides a framework within which a wide range
of individual experiences could be included. Both
obstacles and positive experiences are seen as
critical in the adjustment process because they
inform people about their skills and abilities through
processes of critical self-reflection (Taylor, 1994).
Nicholson (1990) proposes four stages which
include the preparation stage which occurs in the
period before taking on the new work role and may
include unrealistic expectations and fearfulness. The
next stage is the encounter which occurs in the early
days and weeks of the new role and is characterised
by
sense-making and sometimes shock and
regret. Adjustment is the third stage where the
person finds their own way of working in the role
actively finds ways to reduce any perceptions of
person-job misfit. Fourthly, the stabilization stage
allows both the employee and the organisation more
chance to concentrate on performance and future
changes. Thus, Nicholsons model (1990), like
Andersons (1994), suggests a staged model which
is quite flexible and dynamic in its application.
Andersons model, however, provides more in-depth
information about the processes involved, including
the affective, cognitive and behavioural responses
which may occur over time.
This focus on obstacles or negative experiences

(Anderson, 1994) is reflected in the literature more
Although some critics have noted that discrete stages

of socialisation are somewhat artificial and that, in
some ways, the socialisation process does not
actually ever end, there is some agreement that
entering a new role or environment does offer
particular challenges which often take the person
through processes of adjustment (Feij, 1998). As
noted, the person and the environment both impact
in a dynamic way upon each other (Anderson, 1994;
Feij, 1998). In terms of the impact that a person can
make on their environment, Gudykunst and Kim
(1997) claim that people native to a particular
society are likely to have at least some success in
acting on portions of the environment to make it
better suited to their needs. By contrast, strangers
have little chance, particularly in the short run, of
changing their environment especially when
compared to the pervasive effect the host culture has
on them (Gudykunst & Kim, 1997). Thus, certain
groups and individuals may be less likely to
influence their environment because of lack of
familiarity with it and the accompanying social rules
and roles (Argyle, 1982). Using this same logic,
newcomers to an established group (e.g. work
group) may exert less influence on the environment
than established members. This again indicates the
significance of adjustment processes for the
individual in a new cultural environment.
Further research directions

As noted earlier, there are a number of shortcomings
within the present adjustment literature including the
limited information on adjustment processes.
Ashforth and Saks 1995) have highlighted the need
to examine socialisation processes in more depth.
This can include the more formal processes such as
training, as well as social psychological factors such
as social support (Munton & West, 1995) which may
uncover subjective meanings and dynamic
interactions underlying transitions processes
(Ashforth & Saks, 1995, p. 173). As suggested by
Fisher (1986), more longitudinal research on a
variety of samples is needed in order to map the
times and ways in which different learning processes
take place during adjustment. This would allow
further examination of adjustment experiences and
proposed stages within different contexts.
It is proposed that Andersons model could be used
to address some of the shortcomings identified in the
literature by allowing further examination of the
dynamic interplay between the person and
environment during adjustment. The model offers a
framework which allows for the examination of
affective, cognitive and behavioural outcomes for
newcomers to a culture, an approach proposed by
Kidd (1998). By extending the model to include
positive experiences as well as obstacles, it is
possible to gain insight into the impact of the
organisational culture on people undergoing work-
role transitions.
Thus, it is proposed that a
qualitative study which mapped peoples emotional,
cognitive and behavioural experiences associated
with positive and negative critical events would
allow further examination of the interplay of
personal factors (e.g. values, role behaviours), the
structure and culture of the environment, and the
possible impact of the wider political and social
context on the person (Feij, 1998). Learning and
adjustment processes, as well as the proposed
adjustment stages, could therefore be more fully
examined.
As suggested by Feij (1998), the study of adjustment
is quite fragmented and can be difficult to
generalise. Clearly, the individual nature of
organisational cultures, together with differing
personal experiences, does make generalisation
difficult. It would therefore be important to follow
Fishers (1986) advice to take a longitudinal
approach across a range of samples.
In a practical sense, a qualitative study of adjustment
using Andersons framework could heighten
awareness of the less formal adjustment experiences
of the newcomer and therefore facilitate the
development of socialisation programs. Such a study
would also allow examination of the effects of
organisational culture on newcomers in their quest to
adjust to the organisation. Newcomers themselves
bring changes to the organisational environment and
Andersons model would also allow an examination
of the actions that newcomers take to make an
impact on the organisation. Such research could
therefore give new insights into the best ways of
conducting orientation programs, an examination of
ongoing training needs, and the actions that
newcomers can profitably take in their new
environments. The complex nature of adjustment
and learning processes would indicate that such
programs would need to be well considered in terms
of both the organisational culture and individual
needs (Vogt & Herzog, 1989). Potentially, further
understanding of adjustment and learning issues
could improve recruitment and selection procedures,
and allow improved career guidance by
organisations. From another perspective, qualitative
studies of adjustment would enable further
examination
of
change
and
development
opportunities within organisations.
Conclusion
In conclusion, the paper has argued that Andersons
(1994) model of cross-cultural adaptation is useful in
conceptualising transition and adjustment processes.
Work-role transitions include the move to a new
organisational culture. Andersons model allows for
the examination of specific experiences in terms of
affective, cognitive, and behavioural outcomes
which can be used to further understand adjustment
and learning processes, with implications

in which
organisations perceive and
socialisation programs, and gain insight
impact of organisational culture and
experiences in times of transition.
for ways
conduct
into the
specific
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Sheryl Ramsay
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Phone: (07) 38757460
Email: S.Ramsay@mailbox.gu.edu.au
Skills, training and workforce bargaining The implications of

Australian workplace agreements
Amanda Roana and George Laffertyb
a
b
Department of Management, University of Queensland

Department of Management, University of Queensland
Abstract
The provision of a highly skilled workforce has been
a key element of strategies to enhance Australias
international competitiveness since the 1970s. Skills,
training and qualifications have also historically
been integral to the bargaining relationship between
employers and employees. This paper provides an
overview of the role of skills and training in
Australian industrial relations, focusing on the
impact of Australian Workplace Agreements
(AWAs). It analyses the incidence and content of
training provisions in 539 AWAs, showing that only
a small percentage of agreements identify training
provisions as an important part of the bargain
struck between employer and employee. The paper
argues that the decentralisation of industrial
relations to the individual level is having an adverse
impact on training and skills formation, in terms of
individual career paths, enterprise productivity and
national policy goals.
Keywords
Australian Workplace Agreements (AWAs);
Training; Industrial Relations; Bargaining; Skills.
Introduction
Since the time of the earliest guilds, workers have
used their possession and control of skills as a
bargaining instrument. In Australia, the system of
industrial awards has provided the most important
mechanism for the development of skills, training
and qualifications. During the 1980s and 1990s the
ALP Federal governments Training Reform Agenda
and related clever country policies were designed
to coordinate these objectives. However, during this
period there was also a steady process of industrial
relations decentralisation, beginning with the
introduction of enterprise bargaining under the
Keating ALP governments in the 1980s, and
accelerated under the Coalition government. The
introduction of Australian Workplace Agreements
(AWAs) in the Workplace Relations Act 1996
represented the governments most radical
innovation. The rationale for AWAs has been that
employers and employees, through individual
contracts free from intervention by third parties

(most importantly, unions and governments), will be
able to achieve mutually beneficial outcomes. This
paper examines the validity of this claim, with
respect specifically to training and skills formation,
through a detailed examination of 539 AWAs.
Skills, training and industrial relations in

Australia
Skills and training have long been a focus of
workplace contestation, due to their influence on the
demand for different types of labour, and the
respective bargaining strength of employers and
employees. On one hand, the deskilling thesis
(Braverman 1974) has highlighted the ways in which
management has intensified managerial control and
reduced
wages
through
labour-substitution
technology. On the other, post-Fordist arguments
(for example, Mathews 1989) suggest that
employees can gain greater autonomy and input to
decision-making through enhanced skills linked to
more flexible workplace organisation.
The term flexible has also become associated with
the practice of applying numerical flexibility. This
form of working arrangement has been manifested in
the growth of part-time and casual work, out-work
and a shrinking core of tenured employees within
organizations. This means a growing periphery of
employees in secondary labour markets, which are
generally associated with lower levels of skills and
little input into decision making (see Boreham et al.
1996). Further recent research from the United
Kingdom suggests that there is some evidence that
labour market flexibility in the United Kingdom is a
major barrier to the development and maintenance of
skills (Lloyd 1999: 163).
Skills and training have also been important to the
achievement of social and economic goals for
example, in providing unemployed people with
appropriate skills to counter their labour market
disadvantage. According to the International Labour
Organisation, dialogue between social partners
(government, business and unions) is essential if
training is to achieve such social and economic
goals, and dialogue is usually greater in countries

with more cooperative or consensual industrial
relations systems (Lansbury and Pickersgill 2000:
49-55). However, dialogue between the social
partners in Australia, historically managed through
the industrial relations systems may have been
reduced by the process of decentralisation (Lansbury
and Pickersgill 2000: 55).
Since the mid-1980s, training has occupied an
important role in the shift away from centralised
fixation of wages and conditions. At the work
practices summit in September 1986, business and
unions agreed to pursue a co-operative approach to
remove restrictive work and management practices
in order to enhance productivity and efficiency.
Areas identified include training and skills
improvement, the removal of demarcation barriers
and the introduction of new technology (Dabscheck
1995: 32). This summit was followed by the
Structural Efficiency Principle (1988) and the
process of award restructuring, which included the
establishment of skills-related career paths as an
incentive to continuing skills formation and the
elimination of impediments to multi-skilling.
In the view of Macken (1989: 59), award
restructuring would allow both vertical and
horizontal multi-skilling of workers and thus provide
a very flexible workforce. To meet its requirements,
a process of examining the skills of Australian
workers was inaugurated, through a system of skills
audits. This involved identifying the skills and
competencies present in an organisation, as well as
those required immediately and in the longer term
(Macken 1989: 59). Through skills audits and the
associated broad banding of skills, occupational
classifications of similar skills were grouped under a
single wage level, in order to facilitate the
introduction of new, more flexible, less hierarchical
methods of work organisation. These changes were
concurrent with the shift towards enterprise-level
negotiations, promoted by business associations,
most prominently the Business Council of Australia
(BCA), and accepted by government and even some
sections of the union movement. Ewer et al (1991:
25) has argued that the BCAs approach to skills
formation parallels their approach to enterprise
bargaining: since each enterprise is a unique entity,
it requires a correspondingly unique skills profile to
optimise productivity and efficiency. Therefore,
there should be a different and more limited role for
national skill standards within that industry (BCA
1990: 39).
Little was known about workplace training until the
release in 1990 of an ABS household survey entitled
How Workers Get Their Training (ABS 1990) and
Employer Training Expenditure Survey (ABS 1991).
The collection of data on workplace training remains
problematic, as the isolation of on the job training

from other workplace activities is often difficult,
rendering measures such as training expenditure
somewhat incomplete. However, the latest available
ABS figures indicate that despite a small increase in
total expenditure, employers on average spent less
per employee on structured training and provided
less hours of training per employee in 1996 than
they did in 1993 (ABS 2000).There has been some
research on training provisions within enterprising
bargaining. In their analysis of the position of
women in enterprise bargaining, Smith and Ewer
(1995: 18) observe that enterprise bargaining has
cemented training as an important issue in the
workplace. Their examination of the 1029
agreements certified between May 1991 and July
1993 Smith and Ewer (1995: 18) found that 62.2 per
cent provided some level of access to training.
However, the introduction of individual contracts
between employers and employees raise further
issues with respect to levels of training and overall
processes of skills formation, such as portability of
skills between enterprises. The following section of
this paper outlines the research methodology and
results.
Methodology and Results

We examined 539 AWAs provided through the
Office of the Employment Advocate (OEA) as a
confidential sample set selected by the OEA for
recognised research organizations. The data
consisted of single AWAs from 539 different
employers who had signed an AWA between March
1997 and June 1998. The copies of agreements
provided by the Office of Employment Advocate
were distinguished as the first one signed by that
employer with one of his/her employees. The sample
is based on a population of approximately 22,471
AWAs approved in this period, covering a broad
range of occupations and industries. The highest
percentage of agreements by industry category was
in Health and Community Services (12.4 per cent)
with the smallest representation being in personal
and other services (0.4 per cent).
As the data was in raw (unclassified) state, the first
analysis undertaken was to identify the presence of
provision in the contracts under a range of work and
management practices, including training. Firstly, a
simple analysis of depth was undertaken.
Agreements were classified on the basis of: (1) no
content; (2) one to two sentences of content; (3)
three-to- five sentences or a few small paragraphs
(including up to a page of general information with
little content) and (4) a page or more of content. For
purpose of the analysis, category two is labelled
very limited content, category three is labelled
limited content and category four is labelled
extensive content. After identifying the agreements
that contained references to the provision of training,
Table 1 Themes contained in AWA by measurement of

content
Theme
Must undertake training as

directed
Training provided where
necessary
Costs paid by employer
Within employers time
Fully
or
partially
in
employees own time
Will provide access to
training for staff/ employer is
committed to training
Must undertake job rotation
and job flexibility
Multi-skilling which is not
de-skilling provided
Details of traineeship
Must reciprocate by using
skills to train others
Other
Total
Very
Limited
Content
15
Limited
Content
Detailed
Content
12
5
3
5
15
2
3
18
6
6
13
13
12
1
4
5
3
6
3
11
61
14
86
8
71
NB: Training provisions could be coded into more than one category
a detailed analysis of the substance of these

references was undertaken with each category
analysed separately. The most recurring themes were
then extracted from the data. In the first analysis,
only 153 (28.4 per cent) agreements were found to
have reference to the provision of training. Of these
47 (30.71 per cent) agreements were classified of
very limited content, 66 (43.13 per cent) were
classified as having limited content and 40 (26.14
per cent) were classified as having extensive
content. Further content analysis revealed the
recurrence of the same themes, regardless of
agreement. These themes are not mutually exclusive
and many agreements contain more than one theme.
They are listed in Table 1.
It should be noted that the very limited content

classification contained such minimal provisions as
employee must undertake training as directed.
None of the agreements in this classification denote
a detailed commitment to workplace skills
maintenance or development. It is also significant
that in 23 agreements the only reference to training
was directive, with the onus being placed on the
employee for example, themes 1, 7 and 10. In 13
agreements, there was merely the statement that that
the employer was committed to training or that
the employer would provide access to training.
In the limited content category, the obligation of
employees to undertake training was again
emphasised, with 24 agreements detailing the
themes outlined under numbers 1,7 and 10.
However, in these agreements much more attention
was paid to the question of costs, with 15
agreements specifying that the cost of approved

training would be borne by the employer. Again
13 agreements stated employer commitment or
the provision of access to training in only
generalised terms, while 12 agreements outlined
the provision of training though multiskilling,
with the caveat that such multiskilling would not
lead to deskilling or demotion.
Six of the agreements that provided detailed
content were concerned with traineeships.
Within these a detailed outline of the structured
training and employee and employer obligations
was provided. Eighteen of the detailed
agreements outlined the financial resources
available to employees, while 6 specified the
training would be carried out in the employers
time. In this category four employers included
multi-skilling without demotion as part of their
specified category. It must be noted however, in
this and the previous category, two agreements
specified that employees must accept
multiskilling that required them to work in
higher or lower classifications.

The examination of these agreements shows
considerable disparities with respect to training and
skills provisions. Both the lack of importance
accorded to training in many agreements and the
large degree of variation between agreements should
raise significant concerns with respect to skills
formation, for employees themselves and at the
enterprise and national levels. Whereas training
provisions could be related clearly to career paths
and pay scales in awards and certified agreements, in
AWAs they appear to have largely disappeared from
the agenda. Most importantly, 71.6 per cent of
agreements contained no reference to training. While
this does not mean that no training will occur, it
certainly indicates that training is of no importance
in establishing the particular agreement. Even in
those agreements that contain training provisions,
there are serious problems such as the requirement
that employees pursue training in their own time, an
imposition made more significant by the fact that
AWAs are characterised by longer average working
hours than either industrial awards or certified
agreements (ACIRRT 1999: 114).
The disparity in training provisions means that the
outcomes for employees will vary widely, reducing
the portability of the skills they possess and losing
the nexus between skills, training and career paths.
At the enterprise level, there are few indications of
coherent linkages between employee training and
the attainment of a more productive skills profile. In
terms of the achievement of the national goal of a
more skilled, flexible and productive workforce, the
proliferation of AWAs poses further problems. If the

overwhelming majority of agreements contain no or
minimal provisions for training, then much of the
past rhetoric arising from the clever country
agenda may be confounded.
Acknowledgments
The authors wish to acknowledge the research input
of Tom Bramble and the research assistance of Mark
Keogh, Mathew Tomkins and Simon Irvine and
Rebecca Lim in completing this paper.
Smith, M. and P. Ewer. (1995) The Position of

Women in the national training reform Agenda
and Enterprise Bargaining. Canberra: AGPS.
Dr Amanda Roan
phone 07 33811040
e-mail: a.roan@gsm.uq.edu.au
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(Australian
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Industrial Relations Research and Training)
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Newcastle NSW. Volume.
Lloyd, C. 1996. Regulating Employment:
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Sydney: Pluto Press
Management practice and employee mental health An occupational

safety perspective
Cathy Robertsona and Felicity Lammb
a
Management Consultant, Auckland, New Zealand

Senior Lecturer at the Auckland University Graduate School of Business, New Zealand
Abstract
There has hitherto been little attempt to investigate
the links between management malpractice, mental
health and occupational health and safety. In this
paper the development of criteria for a viable
methodology to assess the possibility of the existence
of this link, has been developed. A semi-structured
questionnaire was devised and used in a pilot study
which revealed a connection between poor
management techniques and mental ill-health. Some
of the selected people who were invited to
participate declined for fear of further intimidation.
The analysis of the pilot study is discussed and the
results indicate that there is a need for further, more
detailed research to establish and quantify factors
contributing to poor mental health in employees.
Keywords
Work stress; Mental Health; Management Practice;
Workplace Bullying; Occupational
health and
safety
Introduction
This paper reports a pilot study which endeavours to
identify the types and outcomes of management
malpractice with an emphasis on the health effects
of employees as well as linking management
malpractice with the costs to the individual
employees. Currently, there is a tendency among
many managers and occupational health and safety
(OHS) inspectors to adopt a narrow view of what
constitutes a hazard, which is one that causes acute,
physical injuries (Lamm, 2000). Frequently poor
management practice, such as bullying, is not
regarded as a hazard but rather as a variable
influencing worker productivity. Instead, there is a
great deal of rhetoric about improving HR processes
such as performance management (Cummings &
Worley, 1997) reward systems analysis (Wilson,
1995), worker involvement and participation
(Marchington, 1995). There is little attempt to make
the links between poor management practice,
workplace hazards and poor productivity.
It is acknowledged that demotivational and abusive
management practices place employees under
excessively high levels of stress, which can lead to

chronic mental ill health. However, the New Zealand
OHS case law shows that the Department of
Labours enforcement emphasis is on trauma injury
and not occupational mental ill health (Lamm,
2000). One reason for this is that the definition of
hazard under the Health and Safety in Employment
Act, 1992 is too vague to consider applying it to
stress related ill health. Typically, employees who
have been victimised at work are forced to take legal
redress under New Zealands industrial relations
law, in the form of a personal grievance. There is no
existing procedure through which organisations are
held responsible for the mental health of their
employees
by
enforced
compliance
with
occupational mental health and safety standards.
Mental Health problems in New Zealand
The extent of mental health problems and their
causes within the New Zealand population is largely
unknown. Nevertheless, it is interesting to note that
out of a total of 33,210 in-patient days during
1996/1997, of those treated for mentally related
disorders, 536 were for alcohol dependence, 164 for
drug dependence, 527 for nondependent drug abuse,
145 for acute stress reaction, 399 for depressive
disorder and 506 for adjustment reaction. These total
6.9% of in-patient days and represent the mental
disorders most likely to fall in within the types of
conditions for which the respondents in this study
were treated.
However, in its analysis of Mental Health Data
1994, the New Zealand Health Information Service
admits that because the data which is currently
available represents only those patients admitted to
hospital, the true prevalence of psychiatric illness in
New Zealand can not be determined from the data,
(New Zealand Health Information Service, 1998: 89). The data provided in the above statistics excludes
community-based mental heath programmes and
numbers of patients treated by private practitioners.
Therefore, it is argued that there is a need to
establish more clearly (a) the true extent of mental
illness in employees and (b) in what ways and to
what extent mental illness is connected to poor
management practice.
Management Malpractice and Stress

The literature acknowledges that stress threatens the
mental health of employees and occurs across all
levels of the workplace, in all occupations, across all
ages and is a world wide problem (Bohle & Quinlan,
2000). For example, Kawakami, (1992) shows that
job unsuitability and poor human relations at the
workplace are risk factors for long-lasting
depressive symptoms among Japanese blue-collar
workers.
Further, there are a growing number of studies that
show that management malpractice in the form of
bullying increases the likelihood of victims
experiencing stress-related illnesses such as those
associated with mental health (e.g. Quine, 1999).
Making the connection between bullying and the
victims mental health, Rees argues that:
The potential for bullying in the workplace has
been heightened by several managerialist values and
techniques: the fundamentalist claim that `we know
best, ridiculing the past, and mechanisms of control
such as an intolerance of critics. (1995:197-198)
Guest, (1998) goes further by stating that stress is
increased when the psychological contract between
the employer and the employee is breached, namely
that the employer is either no longer able to promise
the traditional career and job security or they violate
their promises. Robinson and Rousseau (1994) also
found that violations of the psychological contract
correlated with a more pronounced dissatisfaction
with the organisation and a higher staff turnover.
Brittons (1995) commentary of ill academic and
non-academic staff clearly shows that a breach of
trust by the employer has a propensity to increase
stress related illnesses among employees. She
states:
They [staff] love the university, and suddenly they
perceive it as having betrayed them because they are
now fearing for their job, or are involved in sacking
other people, or are left behind with enormous
workloads and no guidelines on how to manage
these demands. They perceive no support or thanks
for their efforts to manage these problems, so each
of those groups wakes up feeling dread because they
have lost controlit is like a breakdown of a
marriage or, for people who leave the university, a
bit like deathI encourage peopleto record it as a
workers compensation but they are almost always
anxious about doing that in the present climate for
fear they may be victimised for being stressed and
for not coping. (1995: 222-223)
Typically remedies applied to reducing stress
centred on the victims ability to manage the
situation. Bohle and Quinlan (2000) are highly

critical of the narrow managerial approach which
lays claim to legitimacy by using psychologists and
creates a blame the victim culture. Instead, they
argue that a more holistic approach which considers
a wide range of factors is more useful. Moreover,
there is a propensity among occupational
psychologists to focus on the health aspects of the
stressed individual as opposed to injuries caused by
stress (Slappendel, 1995). Therefore, it is equally
important to determine in what ways, and to what
extent, management practice affects employee
mental health, and, while not directly dealt with in
this paper, to understand the extent and nature of
general organisational factors in injury causation.
Legal Remedies
Although Britton encouraged her clients to seek
workers compensation, it is questionable as to
whether such compensation claims would be
successful in many of the Commonwealth
jurisdictions, and whether legal remedies will reduce
or eliminate management malpractice. Barrett
(1998) notes that employees in the United Kingdom
have difficulty in seeking redress for occupational
stress-related
illness.
She
questions
the
appropriateness of common law litigation in the
United Kingdom as a means of claiming
compensation for psychiatric illness as a result of
negligence of another person.
In New Zealand it is unlikely that employees
suffering from work-related illnesses will receive
workers compensation payments. Instead victims
seeking compensation for mental ill-health as a
result of management malpractice are forced to seek
remedies in the Employment Court. However, the
provisions under the New Zealand Health and Safety
in Employment Act, 1992, have the potential to
provide more protection for such individuals. The
fact that workplace hazards are insufficiently
defined under Act may provide an inclusive
interpretation of the law, although there are few, if
any examples where this has occurred.
Section 7 of the New Zealand Health and Safety in
Employment Act, 1992 defines a hazard as follows:Where there occurs any accident or harm in respect
of which an employer is required by section 25 (1)
of this Act to record particulars, the employer shall
take all practicable steps to ensure that the
occurrence is so investigated as to determine
whether it was caused by or arose from a significant
hazard.
Section 25 (1) requires every occurrence of serious
harm to an employee at work, or as a result of any
hazard to which the employee was exposed while at
work, in the employment of the employer, to be

recorded and registered in a register.
Part one of the Act defines harm as illness, injury
or both, and to harm, harmed and unharmed
have corresponding meanings. The Act defines
hazard as an activity, arrangement circumstance,
event, occurrence, phenomenon, process, situation or
substance (whether arising or caused within or
outside a place of work) that is an actual or potential
cause or source of harm; and hazardous has a
corresponding meaning. Although one has to
question why the New Zealand OSH Service pursues
very few breaches of the Act that involve ill-health,
it is clear that, given the above descriptions of
hazard and harm, a causal link between mental
ill-health and poor management practices may be
difficult to prove in a court of law.
Management Practices
In this paper, it is shown that management
malpractice leading to employee mental ill health
can take many forms. In New Zealand the most
common are: harsh and oppressive employment
contracts, breaching psychological contracts, the
systematic use of fear as a motivational tool by
superiors, and harassment on the basis of gender or
ethnicity.
Under the Employment Contracts Act, 1991, harsh
and oppressive individual employment contracts are
one of its outcomes. Set within a context of high
unemployment, a laissez-faire approach by
government and no legal recognition of trade unions,
the Employment Contracts Act, 1991 has fostered an
imbalance of power in employment relationship that
favours the employer (Rasmussen et al, 2000).
Studies show that a take it or leave it style of
bargaining is common, particularly among service
and clothing workers (Rasmussen & Lamm, 1999).
The New Zealand Industrial Relations Services
show that not only has there been a dramatic rise in
the number of personal grievance cases filed in the
Employment Tribunal and Court, but also the
number of personal grievance cases successfully
bought by employee plaintiffs has increased
considerably during 1993-1998.
Deliberate breaching of the employment contract
and/or the psychological contract by pressurising
employees to accept contrary and detrimental
contractual arrangements can also be described as
management malpractice.
So too are the practices of constantly shifting the
rules and goals under the guise of change
management. Often, management consultants (the
so-called gurus) are employed as change agents
for politically motivated managerial reasons which
have little to do with benefiting either the
organisation or its employees. According, to Britton

(1995) employee exclusion from decision making
processes affecting their welfare is prevalent in
poorly managed change initiatives.
Using fear as a managerial tool has been identified
as a management malpractice. Some of the fear
tactics used are:
Threatening behavioural characteristics

standing over employees.
The use of abusive language or issuing of harsh

instructions.
Making covert threats which imply that

exposing bullying behaviour will result in more
victimisation of the employee.
Conducting threatening performance reviews as

implicit disciplinary procedures.
Altering performance reviews after the

documents have been signed by the employee.
One of the most recognised malpractices is
discrimination, for example, on the grounds of sex,
age, religion, marital status. Discrimination can be
perpetrated overtly, such as blocking promotion on
the base of race or gender, or covertly, such as
deliberately excluding an individual from group
social activities or imposing heavy workloads
compared to other staff members.
Key Questions
Given that there are few New Zealand empirical
studies on the effects of management malpractice on
employees well-being, there still remain
unanswered questions. The key questions driving
this pilot research are:
What are the types of management malpractice?
What are the outcomes, particularly health

effects, of the malpractice?
What are the costs of management malpractice

to the individual employees?
By undertaking an initial investigation it is hoped
that the findings of this paper will provide a platform
for a deeper and more extensive analysis of the
mental health state of employees in New Zealand.
Methodology
This study is exploratory and the authors have
adopted a qualitative approach in order to examine
the feasibility of the developing a methodology by
which a set of criteria can be identified linking poor
mental health in employees to inappropriate
management techniques (Nueman, 1994). The
intention here is to use the criteria as a springboard
to conduct further research across a wider section of
the population and thus gain a deeper understanding
of the problem.
The sample selected for this pilot study was based
on a confidential client data base and was intended
to cover a diverse range of people. As Tables 1 and

2 illustrate, the respondents represent different
occupations, gender, ages, ethnicity and social
background.
Most importantly, they had no
experience of mental illness prior to their exposure
to the management malpractice. All the respondents
had undergone counselling after experiencing poor
mental health as a result of abusive management
practices.
Eleven respondents were invited to participate in the
pilot study. Three declined for fear of being
intimidated, despite being provided with a guarantee
of anonymity. It should also be noted that because
the smallness of the sample, 8 respondents, the
findings cannot be extrapolated to the wider
population but instead provide an indication of the
forms and outcomes of management malpractice
(Nueman, 1994).
Table 1 Biographical profile of respondents
The age of respondent
at the time of the
interview
Gender
43 years
32 years
28 years
49 years
29 years
52 years
37 years
65 years
Female
Female
Female
Male
Male
Female
Female
Female
Country of
Origin or
Ethnicity
England
N.Z. Maori
N.Z. Pakeha
S. Africa
Asia
Scotland
N.Z. Pakeha
Canada
Table 2 Employment profile of the respondents

Respondents by
Occupation
Banker
Nurse
Laboratory technician
Engineer
Marketing Executive
Customer Service Clerk
Retailer
Receptionist
Length of service
15 years
6 years
5 years
5 years
2 years
3 years
3 years
4 years
Because of the exploratory approach adopted and the

sensitive nature of the study, face-to face interviews
were conducted. A semi-structured questionnaire
was designed to capture information on the forms
and outcomes of management malpractice. The
information is essentially descriptive and charts the
experiences of the respondents. The questions asked
in the study can be grouped under the following
headings:
A description of management malpractice,
A description of human resource management

practices;
A description of the respondents feelings of the

experience;
Ill-health experienced by the respondents as a

result of management malpractice;
Injuries incurred as a result of work-related

stress,
The financial and personal costs to the
individual;
Wider implications of management malpractice;
Summary description of management practices.
Data Analysis
The analysis of the data on management malpractice
and the outcomes of management malpractice can be
summarised as follows:
Management Malpractice
Unwarranted pressure exerted by manager
All eight respondents had been placed under severe
pressure by their managers. Seven had experienced
overt bullying tactics such as being shouted at,
falsely accused of fraud, being stood over and
forced to sign documents out of fear of losing their
positions.
Abusive performance reviews
Six respondents had experienced traumatic
performance reviews resulting in feelings of fear and
high anxiety. Some examples of the abusive use of
the performance management procedures contained
in the replies were:
Being marked down for being too thorough

when the job itself demanded a particularly high
level of accuracy;
Being stood over to sign a performance

review prior to completion by a manager;
Being told by a manager that it was not

necessary to sign an excellent performance
review and discovering later, that the areas of
high performance had been erased and
reconstructed as poor and subsequently
presented to senior management in order to give
an impression of poor performance by the
respondent. Any attempt to question the
manager is met with threatening response.
Being called into an impromptu, sudden

performance review in which peers and
supervisors were invited to participate, during
which the manager shouted and pounded the
table in an incoherent rage;
Being issued with a verbal warning during a

performance review for being unable to rectify a
situation which the manager who was
conducting the review had themselves caused.
Broken psychological contract
The eight respondents felt that they had put much
extra effort into their work and that superior
achievements which they had achieved for their
organisation had neither been recognised nor
rewarded. For example, one respondent regularly
exceeded sales targets and built the business up to a
large turnover, exceeding budget by 200% within
twelve months. The manager subsequently doubled

the sales target and halved commission, making it
impossible for the respondent to earn a liveable
commission. This considerably reduced the
respondents salary and resulted in symptoms of
anxiety and depression. I was unable to
concentrate, had poor memory and just wanted to
stay away from anyone and go to bed which is not
my normal extrovert self. I was sure that I was
about to be terminated and panicked by the prospect
of no money and being unable to pay my mortgage
and provide for my children.
Outcomes of Management Malpractice

Effects on health
Seven respondents had consulted a medical
practitioner and were all subsequently referred for
counselling. Typical symptoms were; heart
palpitations; sudden onset of high blood pressure;
development of alcohol and drug dependency; loss
of appetite; loss of sleep; severe allergic reactions;
development of sporadic short term memory loss;
stomach cramps; depression; anxiety; lack of self
esteem; and fear.
Accidents
Two respondents were involved in a near miss and
potentially fatal motorcar accidents as a result of
inattention through work-related anxiety. None had
any near miss work based accidents although it is
possible that the sample of respondents is biased, as
they were all employed in relatively physically safe
occupations. Nevertheless, this result supports
criticisms made by Bohle and Quinlan (2000) of the
undue emphasis placed on individual employee
causation of ill-health and injuries despite the
evidence to support a wider consideration of
organisational factors when looking at causes of
work-related ill-health and injury.
Costs to individuals and to the companies
All of the respondents felt that not only had their
performance at work been adversely affected but
they had incurred both personal and monetary costs.
Six of the respondents consulted with counsellors,
stress management consultants and medical
practitioners at a total cost exceeding NZ$10,000.
One respondent took six months to regain
confidence through retraining and being coached by
a career consultant at a total cost including lost
salary, of approximately NZ$36,000.
Seven of the eight respondents resigned or are
actively seeking employment. There is no data
available from which the cost of re-recruitment to
the relevant companies can be assessed.
Two respondents were offered counselling by inhouse industrial psychologists but turned this down
for fear of being blamed for the problem and further

victimisation. West and Reynolds (1995) note that
industrial, organisational and clinical psychologists
have largely failed to address the issue of the
acceptability of different approaches to stress
management to those for whom such services are
provided.
One respondent approached their professional
association for advice but due to ignorance and lack
of support for the problem, opted for private
treatment. All six respondents who had taken sick
leave had named influenza to their companies, as the
reason.
Legal Action taken by respondents
One respondent took legal action under the
Employment Contracts Act, 1991 and the case was
heard in the Employment Tribunal. The remaining
seven refrained from doing so for fear of losing their
positions or being subject to victimisation.
Effect on other staff members
Two of the eight respondents were subsequently
excluded from staff events or victimised and
undermined, leading to further feelings of isolation.
Three respondents reported particularly high staff
turnovers and time taken for sick leave within their
organisations. For example: Nine resignations out of
fifteen support staff in six weeks; Ten out of twenty
five peers taking sick leave within two months for
stress related sickness; Six resignations out of fifteen
highly qualified professional staff in one year.
One respondent, a supervisor, felt guilty and anxious
over the way a particular member of staff was being
treated. Although the staff member had performed
exceptionally well in terms of generating new
business, the newly appointed departmental manager
threatened the staff member with physical violence
if sales did not improve. As a result the staff member
resigned. The respondent felt responsible for the
supposed non performance, the managers
threatening behaviour,
the staff members
resignation and worried about the welfare of the
staff members family.
Summary of Management Practices
The respondents were clear about what constitutes
good management skills. These were: supportive;
honest; down-to-earth; providing clear objectives
and instructions; decisive; firm but fair performance
expectations; consultative approach; appreciative of
extra effort; creating an atmosphere of trust; willing
to listen; encouraging.
They were equally vocal about poor management
traits and listed them as: unsupportive; dishonest;
arrogant; degrading; fear creation and bullying
tactics; inflexible; autocratic; unattainable and
distant; uncommunicative; unwilling to listen to

ideas; constantly changing rules and goals.
The above results show that respondents had
reasonable expectations of what constitutes good
management and fair perceptions of the nature of
poor management skills and characteristics.
Discussion
From the analysis of the data it is clear that all the
respondents who participated in the exercise
suffered some degree of mental ill health as a result
of poor management practices. The data also reveal
that management malpractice in the form of
unchecked bullying, insufficient victim support and
lack of health and safety systems creates a
dysfunctional organisation as well as incurring costs
for both the individual and the company.
Thus, in order to avoid these problems it was clear
from the interviewee data that employers need to
develop and implement procedural tools as a way of
improving management practices that in turn will
reduce the mental stress of employees. Such tools
should also be an essential part of an employers
organisational strategy that will enhance employee
performance.
For New Zealand companies, having an OHS policy
and system is a legal requirement. However,
typically the emphasis has been on safety with little
or no consideration for mental health, leaving the
company vulnerable to litigation by either the OSH
Service or by employees. Therefore, there is a need
to create a new OHS model that incorporates the
notion of mental health and safety. Such a model
should also include a high degree of employee
participation (not directly required under the Health
and Safety in Employment Act, 1992). Studies by
Weil (1991) and Pil and MacDuffie (1996) have
shown that there are strong empirical links between
highinvolvement work practices, lower injury and
illness rates and improved economic performance.
Furthermore, Pil and MacDuffie (1996) state that
such practices are most effective as part of a larger
bundle or system that includes complementary
human resource practices.
A large New Zealand retail company is a good
example of how the combination of both good
management practices and human resource
management can be used to gain a significant share
of the New Zealand market. The owner maintains
that by combining strategic planning, marketing
strategies with the function of human resource
selection, development, training and participative
initiatives and health and safety measures, his
company has achieved a billion dollar annual
turnover (Listener, July, 2000:18). Of particular
relevance to the findings of this paper was the
introduction of strategies to ensure a management

motivational style that fostered good will and
enrichment. By combining these functions, the
company acknowledges the need to promote mental
health in its employees through its development of a
strong sense of company cultural values and the
commitment of its managers to communicating well
with their staff and listening to their needs. At the
same time it sets clear performance goals and
provides the support, which assists employees in
achieving those goals.
It is necessary for companies not only to implement
long-term solutions to counter management
malpractice and employee ill-health, but also to
adopt strategies that will ensure the retention of
organisational core competency through its skilled,
qualified staff. One of our case studies is a good
illustration of poor management practices that lead
to high staff turnover. This professional firm lost
35% of its skilled, professionally qualified specialist
staff in a twelve month period.
It is also argued that that the emphasis on the
victim and the resultant victim blaming
explanations are not useful in reducing the level of
ill-health and loss of staff. Thus, question is, How
productive are those disciplines such as psychology,
which have a tendency to apply an intellectual
framework that concentrates solely on the individual
behaviour of the victim?
In summary, New Zealand companies need to first
accept the principle of creating a mentally healthy
workplace based on employee participation. This
may be more difficult in New Zealand than in other
Australian states as employee participation in
workplace health and safety is not fostered in either
the Health and Safety in Employment Act or the
Employment Contract Act. Next, there is a need to
implement holistic, participative strategies that will
not only result in a reduction in the stress among
employees but will also reduce the polarisation
between management and employees on workplace
health and safety issues, and improve labour
commitment and productivity.
Conclusion
The purpose of this paper is to explore the links
between management malpractice and occupational
health and safety. It is also intended to provide a
criteria of management malpractice and its outcomes
as a way of demonstrating the health, safety and
monetary costs to the individual and to the company.
However, this pilot study raises more questions than
it answers and the issues raised here require further
analysis of the causes and the effects on safety of
poor mental health in employees. In addition, there
are problems with the research design that need to be
taken into consideration. First, the small sample of

respondents were restricted to those employed in the
service and specialist professional fields. Secondly,
statistical data from the New Zealand Health
Information Service by its own admission does not,
in present format, reflect the true prevalence of
psychiatric illness in New Zealand. Thirdly, no
statistical analysis exists which relates mental illness
to work-related stresses. Finally, there are no
existing criteria through which a set of procedures
can be developed and by which employers can be
held accountable for employee mental safety within
Health and Safety in Employment legislation.
Therefore, in order to assess the deeper and broader
extent of the problem, an in-depth analysis of mental
health in the context of management practice will be
required which includes employees from all sectors
within the labour market.
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Cathy Robertson
PO Box 8437
Symonds St
New Zealand
Email: cathy.robertson@xtra.co.nz.
Phone: +64 9 483 8878
Adult victims profiles

Elizabeth Seigne, Iain Coyne. & Peter Randall,
University of Hull, United Kingdom
Abstract
The aims of this study were to investigate
personality differences in victims and non-victims of
workplace bullying and to examine if victims of
school bullying become adult victims of workplace
bullying. The study was in two parts and the first
stage involved 60 victims and 60 non-victims from
two large organisations in Ireland who responded to
an in-depth interview and completed the ICES
Personality Inventory (Bartram, 1994; 1998), which
measures four of the Big Five personality factors.
Results show that the victims had a consistent profile
of low independence, high conscientiousness,
introversion and instability and that some victims
histories of bullying extended from childhood to
adulthood. At the second stage victims and nonvictims were re-assessed using the Interpersonal
Behaviour Survey (Mauger, Adkinson, Zoss,
Firestone & Hook, 1980) and the Culture Free SelfEsteem Inventories - second edition (Battle, 1992).
Results indicated that victims again had high
dependency, and, in addition, low self-esteem and
direct aggression, poor assertiveness, and a
tendency to denial and to avoid conflicts.
Keywords
Bullying,; personality,; childhood; victim profile
Introduction
In Ireland, there has been a rapid increase in
the number of reported incidences of workplace
bullying and their adverse effects. As yet there are
no precise figures for Ireland, but it is expected to be
close to the level of 14% as reported in the United
Kingdom (Rayner, 1997) Throughout continental
Europe there is a steady increase in the number of
publications concerned with bullying behaviour.
Several journals have published special editions
devoted to workplace bullying, for example the
Psychology (1996), the Journal of Community and
Applied Social Psychology (1997), the Journal of
Occupational Health and Safety (1998), and most
recently the International Journal of Manpower
(1999).
Bullying is defined as being repeatedly exposed to
aggressive acts, which can either be physical and or
verbal(Crawford, 1998), and when the

aggressive behaviour arising from deliberate intent
cause physical or psychological distress to others
(Randall, 1997, p.4 ). The balance of power between
the parties and the intent of the perpetrator has also
been included within definitions of bullying (Hoel,
Rayner and Cooper, 1999). Conflicts between two
persons of equal strength is not considered to be
bullying behaviour (Einarsen, 1999).
Leymann, (1996) suggested that bullying behaviours
can fall into five main categories of: (1) effects on
the victims possibilities to communicate
adequately, (2) effects on the victims possibilities to
maintain social contacts, (3) effects on the victims
ability to maintain personal reputation, (4) effects on
the victims occupational situation, and (5) effects
on the victims physical health.
A well-researched area within workplace bullying
surrounds the adverse effects upon victims. Neidl
(1996) reported that victims of bullying in a sample
of 368 Austrian hospital employees had higher
levels
of
anxiety,
depression,
irritation,
psychosomatic complaints than non-victims.
Similarly, negative well-being symptoms were
found by Zapf, Knorz & Kulla (1996) in a sample of
bully victims in Germany. Edelmann and Woodall
(1997) found some initial effects of bullying
included a loss of confidence, physical or
psychological ill health, inability to cope, and low
self-esteem. Leymann and Gustafsson (1966), in a
sample of 350 victims of mobbing in Sweden,
reported that symptoms included: memory
disturbance; nightmares; chest pains and sweating;
muscular tension; and sleep problems . These
consequences are argued by the authors to fit within
the diagnostic criteria of Post-Traumatic Stress
Disorder (PTSD). There seems little doubt that those
who have been bullied may suffer severely. The
physical and psychological effects of bullying may
also be expressed in behavioural patterns such as
absenteeism and premature exit from the
organisation (Hoel, & Cooper, 2000, p.107).
In terms of attempting to provide explanations for
workplace bullying, Scandinavian research appears
to concentrate upon the behavioural relationship
between bullying and what are referred to as
organizational factors. Leymann (1990) suggests
that the only causes of bullying and harassment at

work are working conditions. Other research, (Vartia
1996; OMoore, Seigne, McGuire & Murray, 1998)
found that bullying is prevalent when the working
environment is strained and competitive; where
superiors treat their inferiors unfairly; and when
changes within an organisation have occurred under
an authoritarian leadership.
As can be seen from previous research, the model
that has been accepted as the most popular for
workplace bullying has been the work environment
and organisational factors. Einarsen et al (1994)
focused on three explanatory models for workplace
bullying, namely: the work and organisational
climate; characteristics of inherent human
interactions in organisations (interpersonal conflict);
and personality. They argued that personality does
have a role to play, as humans do not act in a
uniform manner, all have different perceptions and
thresholds of acceptance of bullying behaviour.
They found that: individual behaviour was rated as
the major reason why someone was bullied
(Einarsen et al., 1994, p.33). It is further suggested
that some victims may have certain personality traits
that predispose them to being bullied within the
working environment. It is as though I have the
word victim above my head in neon lights
(Randall, 1997, p.89).
Studies within the school environment, where the
myth of bullying is born (Randall, 1996, p.ix. )
can provide evidence as to the relevance of
personality traits in determining whether a child is
bullied. A number of studies in schooling contexts
have shown that victims of school-based bullying
were lower in Extraversion and higher in
Neuroticism than control samples (Byrne, 1994;
Mynard & Joseph, 1997; Slee & Rigby, 1993) and
that submissiveness and sensitivity leads to school
bullying (Olweus, 1993: Schwartz, Dodge & Coie,
1993). OMoore, Kirkham & Smith (1997),
examining bullying in Dublin schools, found that
bully/victims tend to have lower scores on
behavioural conduct and global self-esteem. Pure
victims were reported as being less forthcoming and
more withdrawn, and more neurotic than both
bullies and controls.
In relating this to workplace bullying, Randall
(1997) has suggested that these traits may emerge
within adult victims who may become more prone to
being bullied. OMoore et al., (1998) looked at
16PF personality profiles in a sample of 30 selfselecting Irish workplace victims. On average, they
were lower than the 16PF norm group in Emotional
Stability and Dominance as well as higher in
Anxiety, Apprehension and Sensitivity. They also
found that victims tended to be more neurotic,
anxious with low levels of self-esteem. Victims are
further described as conscientious, literal-minded

and somewhat unsophisticated (Brodsky, 1976, p.
89), also paranoid, rigid and compulsive. Einarsen et
al (1994) found that victims in a Norwegian survey
felt their lack of coping and conflict management
skills as well as shyness contributed to being bullied.
More recently, Zapf (1999) found that victims of
mobbing in a German sample had pre-existing
symptoms of anxiety and depression and lower
social skills than a control sample and avoided
conflict by tending to give way.
Vartia (1996) suggested that there is a need for
further investigation into the role of personality in
workplace bullying to obtain a clearer understanding
as to why personality could be of importance at the
stage when the victim is selected. They may be
selected due to their personality because the bully
sees weaknesses within the victims personality,
such as a lack of social skills (and hence a social
support network) as well as a tendency to avoid
conflict (Zapf, 1999) and an inability to cope
(Einarsen, 1999). On the other hand, the victim may
provoke aggressive behaviour within a bully
(Einarsen, et al., 1994). In school settings, Olweus
(1993) identified these individuals as provocative
victims. Einarsen (1999) suggested that personality
traits of those victims that provoke anger in others
might be different to those that cause some victims
to be vulnerable when faced with aggressiveness.
The current study was devised to examine further
the role of personality in workplace bullying; it also
applied a retrospective technique to investigate if a
history of school bullying extended to the
workplace. In addition, the study used a design
where the same number of victims and non-victims
were obtained and matched on various
organisational and personal variables. Previous
research into personality and bullying (both in
schools and at work) has employed general
personality tests. This study relied on an in-depth
interview schedule, and a more work-specific
personality test. Two further personality tests and an
interview were used in the second stage.
Method
Samples
Data from the present study were randomly drawn
from 120 employees in two organisations in the
Dublin area, and comprised 60 victims and 60 nonvictims. Samples consisted 56 females and 64 males
with an age range from 18 to 57 years. Both control
and experimental groups were near matched in terms
of gender, age, occupation, and, where possible,
their personal lives in relation to marital status,
home, community and social environments.
Instruments
The ICES Personality Inventory (Bartram, 1994;

1998), measures four main scales of Independence,
Conscientiousness, Extraversion and Stability. These
four major scales of the ICES are each further
divided into two subscales: Competitive (I1) and
Assertive (I2); Conventional (C1) and Organized
(C2); Group-oriented (E1) and Outgoing (E2);
Poised (S1) and Relaxed (S2). All major scales are
factorily independent, whilst the minor scales are
conceptually distinct.
The ICES has clear evidence of content and
construct validity. It correlates with the 16PF and
the Hogan Personality Inventory (Bartram,
1997;1998). The internal consistency reliability
coefficients range between 0.6 and 0.85 and test and
retest coefficients over a one-week interval range
from 0.60 to 0.86.
An interview schedule (Seigne, 1996) was used,
which comprised 54 items divided into six sections:
personal; work details; bullying behaviours; effects
of being bullied, and a sub-section of colleagues
being bullied; present home and social environment;
and childhood history.
Tests used in the second stage of the study included
the Interpersonal Behaviour Survey (IBS) (Mauger,
Adkinson, Zoss, Firestone & Hook, 1980), which
comprised 272 items with four major scales of:
Validity; Aggressiveness; Assertiveness; and
Relationships. Also used was the Culture-Free SelfEsteem Inventories second edition (Batt1e, 1992).
The CFSE-2 comprises 40 items and measures
General, Social and Personal Self Esteem.
Design and procedure
In the first stage of this survey, the interviewer had
several meetings with both management and unions
to give a background of the survey and to obtain
permission to interview employees. During all stages
of this survey, management and the union
representative were kept informed of the ongoing
procedure.
The researcher initially contacted the respondents in
the canteen area, where the aims and procedure of
the study were discussed. It was explained that the
survey required data from a broad range of
employees in terms of a personality questionnaire
and an interview about their working, home and
social environments (past and present). At this time
the ICES questionnaire was distributed for
individual completion. A suitable time was then
arranged to conduct an interview and collect the
completed questionnaire. In order to obtain the
victim sample, respondents read a definition of
bullying and were asked to respond if they had been
a victim of such behaviour. Those in line with
Leymans definition (1992) of being victimised at
least once a week for at least 6 months were placed

within the victim group.
The second stage of the study was conducted some
12 months later, when the interviewer re-established
contact with management of the two organisations.
Permission was granted by one organisation to
continue with the survey. All respondents were
contacted and asked if they would be willing to
complete two additional personality questionnaires
and meet again with the interviewer to discuss any
changes in their working and social environments
and to furnish further information on their
childhood.
Results
Table 1 shows the mean sten scores for each of the
ICES scales for the victims and non-victims of
workplace bullying. As can be seen the non-victim
samples mean sten scores are fairly similar to the
norm groups (mean sten for the norm group equals
5.5) in terms of personality and therefore can be
considered an appropriate control group.
Table 1 Mean sten scores and t values on each ICES
main scale for victims and non-victims of bullying
Group
IndepConscientExtraver
dence
iousness
-sion
Victim
2.47
7.63
2.93
Non-V
5.45
6.15
5.87
T(118)
-8.81
3.70
-9.07
Note: significance levels are all <0.001
Stability
1.63
6.30
-14.79
Significant differences emerged between victims and

non-victims on all the ICES main scales. From the
data, victims of bullying tended to be anxious,
suspicious, submissive and non-controversial,
introverted, reserved, traditional, organised and
conventional.
Just under half of the total sample had experienced
bullying at school (48.3%) and over a half of the
victim sample had been bullied at school (58.3%).
However, on closer inspection, 88.5% of workplace
victims who were bullied at school were bullied
throughout, whilst this applied to just 52% of the
workplace non-victims, who were bullied at school.
Table 2 Mean scores on the ICES major scale
Group
N
No.
1
35
2
25
3
23
4
37
Table 2 illustrates the
the four groups.
Indep.
Consc.
Extrav
Stabib.
2.17
2.89
5.34
5.51
mean sten
7.69
7.57
6.43
5.97
scores for
2.74
1.51
3.20
1.80
5.70
5.80
5.97
6.30
the ICES scales for
Again there are significant differences between the

60 victims and 60 non-victims which are classified
into 4 groups of being (group 1) bullied at work and
school, (group 2) bullied at work, not at school,
(group 3) not bullied at work, but at school, (group

4) not bullied at work, or at school.
Both victim groups 1 and 2 show extreme scores on
all major ICES scores (as described in data from
Table 1). Results of non-victims of groups 3 and 4
show scores within the normal ICES range.
An analysis of variance showed that the group
scores were significantly different for each of the
four scales (p<0.000 except for Conscientiousness
where p<0.004 ). Examination of the means reveals
an astonishing regularity in the trends for each
factor. The greater the extent of bullying suffered,
the more extreme the scores in the expected
direction. Thus, those bullied longest were least
independent, most conscientious, least extraverted,
and least stable.
Results of the second stage of the study
1. Results from Interpersonal Behaviour Survey to
date (18% of respondents) show substantive
differences on scales of Validity, Aggressiveness,
Assertiveness and Relationship between victim and
non/victims. Overall scores from group 1 and group
2 show high dependency and conflict avoidance, low
direct aggression, poor assertiveness, extreme
shyness, and a tendency to denial. In addition 50%
of victims from group 1, and one victim from group
2 also showed traits of passive aggression. These
results indicate that these victims could have a
disregard for others feelings and may fit into a
profile of being provocative victims. The general
results for the non-victims of groups 3 and 4 scored
within the normal range of the IBS scores.
2. Results from the Culture Free Self-Esteem (18%
of respondents) subtests scores of General, Social
and Personal Self-Esteem indicate significant
differences between victims and non-victims.
Overall victims show low levels of social selfesteem. In particular, victims scored very low in
general self-esteem (which reflects ones perception
of how others see one), and in personal self-esteem
(ones perception of oneself). Scores for nonvictims were all within the normal range of selfesteem.
Allowing for this initial small sample, overall results
from IBS and CFSEI-2 for victims, and in particular
for group 1, (who were also bullied at school)
indicate that there could be a distinctive link of
bullying history.
Discussion
Workplace bullying predominantly relates to
self-reported incidents by victims. It is more usual
for many researchers to have worked with victims
who have contacted them: in effect, self-selected
groups. Also, there have been difficulties in
obtaining a representative distribution of employees.

The present study actively sought victims within two
large organisations and was successful in including a
wide variety of white and blue-collar employees,
representing different professions and trades. In
addition, a number of organisational and personal
criteria were matched in order to control for possible
moderating effects. Further, previous research has
employed general personality tests, whereas the
present study used the work-specific ICES
Personality Inventory. The second stage applied a
more retrospective technique with two additional
tests, and an interview to investigate further past
experiences of being bullied.
The victim sample consisted of 28 females and 32
males. The gender ratio does not correspond with
that obtained by Bjorkqvist, Osterman and HjeltBack (1994), who argued that more women
experience bullying at work. The ages of victims
being bullied in the workplace vary from one study
to another. Some studies (for example, Einarsen and
Skogstad, 1996) found that older workers tend to be
more vulnerable and at a higher risk of being bullied
in the workplace. Others, such as those of Leymann
(1992) and Rayner (1997), found no differences
between younger and older workers. In the present
case, it emerged that just over 50% of the victims
were under the age of 40, the balance in the 41-50
bracket, with just 6% in the 51-60 age group. The
findings imply, as Sheehan and Barker (1998)
suggest, that the problem of workplace bullying
transcends sex and age boundaries (p540).
In terms of the relationship with personality, the
largest differences between victims and non-victims
on the ICES is on the Stability scale. Victims score
significantly lower than non-victims on stability,
which implies that they had low levels of selfesteem, were more anxious, sensitive, emotional,
and suspicious. This supports the findings from
school studies (Slee & Rigby, 1993, Byrne 1994;
OMoore et al., 1997; Mynard & Joseph, 1997) and
work-based studies (Brodsky, 1976; Vartia, 1996;
OMoore et al., 1988).
Support also emerges from previous research that
identified the relationship between introversion and
bully victim status (Slee & Rigby, 1993; Mynard &
Joseph, 1997). Victims are described as being
introverted and tend to avoid large social gatherings.
They are quiet and reserved and do not like being
the centre of attention in social activities (Bartram,
1994, 1998). This is also confirmed from the second
stage of research, of victims being very shy with a
tendency to be non-controversial and to avoid
conflict. Another strong difference between victims
and non-victims is seen on Independence, where
victims tend to be less independent than nonvictims. Victims tend to score higher on
Conscientiousness than non-victims and tend to be

orderly, meticulous, dependable and predictable, and
work well in a controlled environment. They also
tend to be traditional, detail-conscious and rule
abiding. This relates strongly to the view of
somewhat unsophisticated, often overachievers
who have an unrealistic view of themselves
(Brodsky, 1976, p.89).
There is evidence to suggest that there may be a
victim profile
(e.g., OMoore et al.,1998)
predisposing them to become victims in the
workplace. However, one cannot say that the
individuals personality causes bullying, but it may
be a contributing factor. In the present research
some victims of the second stage portrayed a profile
similar to provocative victims. Within the school
setting, these type of victims to some extent
provoke bullying by others because of their own
actions (Pikas, 1989, cited in Smith & Sharp, 1994,
p222) Some longitudinal studies of school bullying
(e.g. Perry, Kinsel & Perry, 1989, cited in Hoel,
Rayner & Cooper, 1999) postulate that personality
traits are relatively stable and continue through to
adulthood (Randall, 1997). Hence, as adults in the
working environment, it could be that these
personality traits are perceived as annoying by
others and result in provoking aggressive behaviour
(Einarsen, 1999) and thus selected as a victim.
It could also be argued that it is not necessarily
personality that causes bullying, but could well be
more a result of the organisational climate. Rather,
personality gives indications as to who will be
bullied and not why bullying occurs. The suggestion
being that a particular combination of personality
traits may be the trigger to a bully to choose this
individual to bully rather than someone else. In
other words, the bully spots weaknesses in the
victims personality that makes them more
vulnerable to being bullied (Zapf, 1999). Clearly
this would imply that there remain organisational
implications in terms of combating bullying
behaviour.
It is of course possible, as Leymann (1996) has
suggested, that personality characteristics develop as
a result of being bullied rather than acting as a
precursor to bullying. This compliments results
from victims of the second stage of the study which
could suggest that bullying leads to personality
changes. On the other hand it could be that their
victim profile only emerged in the workplace when
social support systems in their childhood could not
be relied on during their adulthood. In other words,
lack of social support from colleagues in the
working environment place victims in a more
vulnerable position and hence an easier target to be
bullied. It seems that the data from this present
study is in debate, because results from the second
stage study of group 3 (i.e. non-victims at work, but

bullied at school) scored within normal ranges of all
three personality tests.
However, a possible
explanation is that data from personal interviews
revealed that many of these victims were not
affected by being bullied at school, indeed, many
perceived it as normal school practices, particularly
the males. On balance, our evidence suggests that
those with a long history of being bullied have
different strength traits to others. It is still possible
that these traits were developed from childhood
experiences and have been strengthened over time as
bullying has continued. However, it seems more
probable in terms of the nature of the traits
concerned that they antedate bullying and are
responsible for the selection of their possessor as a
victim.
In conclusion, present data shows that before an
individual reaches the workplace their previous
history and their personality may predispose them to
being bullied in their working environment.
Findings further suggests that the history of the
victims profile can give indications as to who are
bullied but not necessarily why bullying occurs. As
Smith (1977) suggests the traditions of research on
school bullying and more recently on workplace
bullying have sufficient similarities and continuities
that they can learn from each other (P.253). The
present authors acknowledged these similarities, and
applied a life-span perspective in our attempt to
predict a victim status over time. Findings for this
study suggest that certain personality traits of some
individuals may single them out to be targets of
victimisation which continues into the working
environment.
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Seigne, E.,
University of Hull,
c/o Psychology Dept.,
Hull HU6 7RX, U.K.
Analysing metaphors used by victims of workplace bullying

Michael Sheehana and Michelle Barkerb
a
b
Abstract
Many researchers have investigated the effects of
workplace bullying on individuals and organisations
in an attempt to further their understanding of the
nature of this phenomenon. Few researchers,
however, have considered the underlying emotional
dimensions of workplace bullying. Metaphors have
been proven as effective tools for communicating
traumatic and emotional experiences in both clinical
and organisational settings. One aim of the study
reported here was to examine metaphors used by
victims of bullying in an attempt to further
understand the emotional dimensions of the
problem. The sample consisted of 11 victims of
bullying who agreed to participate in the study. The
researchers compiled a list of ten open-ended
questions assessing participants perception of, and
feelings in regard to, their bullying experience. Six
participants responded to the questions by e-mail,
four chose to be interviewed over the phone, and one
elected to have a face-to-face interview.
Participants were asked to construct metaphors
describing the bully, the overall bullying experience,
their feelings about themselves, and their feelings
towards their organisation. It was revealed that the
metaphors constructed by interviewees were less
detailed and informative then those constructed by
e-mail respondents. The findings indicate that indepth interviews alone may not be sufficient in
gathering metaphoric data. Overall, the majority of
participants used metaphors to help communicate
their experiences to the researchers and to express a
wide range of emotions about their experience.
Further investigation into the use of metaphors by
victims of workplace bullying would enhance our
understanding of how their felt experience
contributes to workplace bullying.
Keywords
Workplace
Bullying;
Metaphors;
Organisational; Therapeutic.
Emotions;
Introduction
Workplace bullying has become a prominent area of
research in the past decade. High incidences of
adult workplace bullying (or mobbing as the
phenomenon is also termed) have been reported by,
among others, Einarsen & Raknes (1997), Leymann

(1990), Lewis (1998), and Rayner (1997). The costs
to organisations as a result of workplace bullying
include high rates of absenteeism and sickness,
decreased productivity, and high turnover (Adams,
1997; Randall, 1992; Rayner, 1998). Other studies
highlight a number of economic costs associated
with workplace bullying because of related health
problems.
Problems
include
decreased
psychological well-being (Gemzoe Mikkelsen &
Einarsen (2000), psychosomatic stress (Leymann,
1990), anxiety (McCarthy, Sheehan & Kearns, 1995;
Niedl, 1996), depression (OMoore, Seigne,
McGuire & Smith, 1998) and burnout (Einarsen,
Matthiesen & Skogstad, 1998). Leymann (1990)
proposes that the costs of sick leave as a result of
some of these symptoms may be estimated at
between 30,000 and 100,000 US dollars for each
person subjected to mobbing, his term for bullying.
Rayner (1999) suggests that 25% of bullied workers
leave their jobs as a result of their treatment, thus
implying costs associated with turnover. Clearly,
should these costs be extrapolated across a working
population, the final figure would suggest
organisational costs that have serious implications
for organisational profitability.
The negative effects of bullying are not only costly
to organisations, however, but also to individuals both physically and psychologically. Studies, such
as those by McCarthy, Sheehan & Kearns (1995)
and Rayner (1997), have investigated the effects of
bullying on the health of the victims or targets.
Generally, people who have been bullied show a
significant decline in their health compared to their
non-bullied colleagues. In some cases, the effects
have been quite severe and devastating.
For
example, Leymann (1987) purported that one in
seven adult suicides in Sweden each year may be
attributed to the trauma of workplace bullying.
A central tenet of the present article is that the
process of bullying can best be understood by
consideration of the emotional dimensions
underpinning the bullying victims responses to, and
feelings about, their bullying experience, following
Damasio (1994). From an individual perspective,
Goleman (1996) has argued that interpersonal
behaviour is more a function of emotional
intelligence than of rational, cognitive processes.

Ashforth and Humphrey (1995) have offered a
similar view at the organisational level, arguing that
work life is intrinsically emotional and value-based,
and that ostensibly rational organisational behaviour
reflects the extent to which organisational members
are able to reconcile emotional issues in the
workplace. In other words, organisational members
are able to resolve the needs of the organisation and
their own individual preferences, values, attitudes
and behaviours. We envisaged that one way to
understand the depth of emotion related to the
experience of workplace bullying was by way of
metaphor.
Metaphors
For the purposes of this paper, a metaphor is defined
as a figure of speech used by participants in the
study to apply a term to their experience, but to
which that term is not literally applicable, in order to
suggest a resemblance. Metaphors are seen as tools
of communication, which assist people in describing
or expressing their thoughts and feelings. According
to Morgan (1986), the use of metaphor implies a
way of thinking and a way of seeing that pervade
how we understand our world generally (p.12).
The use of metaphor to explain a phenomenon has
been utilised in various educational (Katz, 1990;
Sputa, Marchant, Rothlisberg & Paulson, 1996),
organisational (Burke, 1992; Carroll, 1995; Cleary
& Packard, 1992; Palmer & Dunford, 1996; Stein,
1991), and therapeutic settings (Goodwin, Mayo &
Hill, 1997; Kangas, Warren & Byrne, 1998; Krizek,
Hecht & Miller, 1993; Witztum, Van der Hart &
Friedman, 1988). As the majority of research has
been conducted in organisational and therapeutic
settings, the educational setting will be omitted from
this review.
Organisational settings
In organisational settings, the use of metaphors has
assisted with the exploration of employee perception
of corporate images (Carroll, 1995), the analysis of
organisational practices (Palmer & Dunford, 1996),
organisational assessment and change (Cleary &
Packard, 1992) and the facilitation of organisational
development (Burke, 1992).
Metaphors employed in an organisational setting not
only benefit the organisation as a whole, but also
individual employees. Metaphors assist employees
to articulate and express their perceptions of the
organisation. For example, in a study conducted by
Stein (1991), metaphors of organisational loss were
examined. Metaphors were used by staff members
to express how they felt about the major
organisational changes that were occurring.
Analysis revealed that through the use of metaphors,
employees expressed a sense of injury and grief
over what was happening to their organisation
(Stein, 1991). Furthermore, employees or clients

who use metaphors in describing various aspects of
the organisation, provide valuable information and
insight into the organisation and its social system.
The review of studies listed above highlights the
value of using metaphors to obtain detailed
descriptions of the organisation and how employees
perceive it.
These studies also illustrate the
successful use of metaphors in obtaining valuable
information about the organisation and its
function(s).
Therapeutic settings
The majority of research investigating the use of
metaphors has been conducted in and around the
therapeutic setting (Eisikovitis & Buchbinder, 1999;
Goodwin, Mayo & Hill, 1997; Kangas, Warren &
Byrne, 1998; Krizek, Hecht & Miller, 1993). The
metaphors used by clients help therapists further
understand what sense people are making of their
felt experience. In the therapeutic setting, clients are
often reported to use metaphors in an attempt to
conceptualise their problems and communicate
clearly their experience(s) and feelings.
Metaphors and themes expressed during in-depth
interviews by people who have experienced a
traumatic event are frequently analysed and
interpreted by therapists and/or researchers.
Research in a variety of therapeutic settings has
shown that metaphors provide a window into the
perceptions of women who have been battered
(Eisikovits & Buchbinder, 1999), teenagers who
abuse drugs (Fromme, Marlatt, Baer & Kivlahan,
1994; Krizek, Hecht & Miller, 1993), and
salespeople who have experienced a huge loss of a
major account (Goodwin, Mayo & Hill, 1997).
Conversely, metaphors are also employed by
therapists to help communicate information to
clients such as during Alcohol Skills Training
Programs (Fromme, Marlatt, Baer & Kivlahan,
1994) and Drug Abuse Prevention Programs
(Krizek, Hecht & Miller, 1993; Thompson &
Cusella, 1991).
The therapeutic relevance of
metaphors is addressed by Witztum, Van der Hart
and Friedman (1988), who state that the metaphor
frequently deactivates the defences without
heightening anxiety, by allowing patients to defocus
on the issue itself and focus in the metaphoric
domain (p.1).
Valuable information can be gathered through
analysing peoples use of metaphors compared to
descriptions of experiences without metaphors. For
example, in a study conducted by Kangas, Warren
and Byrne (1998), six nursing researchers were
interviewed in relation to their research experiences.
It was revealed that some participants used
metaphors to describe their experiences more than

did others. Furthermore, those who used metaphors
were able to express their experiences more clearly
then those who did not.
The review described above illustrates the
usefulness of analysing and interpreting metaphors
used by individuals who have experienced a
traumatic event. Clearly, in-depth interviews were
the most effective means of data gathering in the
research studies that were analysed. The study
conducted by Kangas et al (1998) also provides
evidence that people who use metaphors are able to
describe their experiences, feelings and perceptions
more succinctly than those who do not. In light of
the research reviewed, one aim of the study that is
reported here was to examine the metaphors used by
the victims of workplace bullying to describe their
overall experience of being bullied, the bully, their
feelings about themselves, and their feelings about
the organisation. In addition, the study aimed to test
whether metaphor analysis contributes to our
understanding of the bullying experience.
Methodology
Participants
Prior to the commencement of the study, a database
was constructed of people who had contacted the
researchers following publicity about previous
research on workplace bullying. The database also
included a list of people who had approached the
agency Job Watch in Victoria, Australia, for advice,
support and assistance after being bullied at work.
After being informed of the nature of the research
project, these people consented to having their
names and contact details passed on to the
researchers for inclusion as possible participants in
the research project. All the people listed in the
database had reported being subjected to repeated
incidences of bullying at work. Bullying was
defined as the repeated less favourable treatment of
a person by another or others in the workplace,
which may be considered unreasonable or
inappropriate workplace practice (Division of
Workplace Health & Safety (Queensland), 1998).
Of the 16 people contacted by the researchers, 11 (4
men and 7 women) agreed to participate in the
study. Thus, purposive sampling was elected as the
method for the study. As suggested by Patton
(1990), the context and purpose of the study, and the
availability of resources, were also taken into
consideration when deeming the sample of 11
participants appropriate. Other demographic details
of participants, such as age or job description, were
not obtained, as the researchers believed that these
details did not contribute to the purpose of the study.
The highly sensitive nature of bullying and the
limited number of participants willing to share their
experience contributed to the final sample size.
Procedure
Each of the 11 participants were contacted by
telephone and given the option of responding to the
interview questions by one of four different
methods, namely: (1) during a telephone interview,
(2) during a face-to-face interview (3) by e-mail or
(4) by surface mail. Six participants responded to
the questions by e-mail, four participants chose a
telephone interview, and one participant elected to
have a face-to-face interview. Consent forms that
detailed the aim of the study, the voluntary nature of
participation, and participants rights with respect to
confidentiality were presented to all participants,
signed by them, and returned to the researchers.
Data gathering
The researchers compiled a list of ten open-ended
questions and two close-ended questions that sought
participants perceptions and feelings in regard to
their experience of being bullied and the actions
taken in response to their situation.
The questions addressed participants overall
experience of being bullied, specific bullying
incidents, and their feelings about themselves as a
result of being bullied. Further, the questions
explored participants feelings about their
organisation at the time of the bullying incidents and
after the bullying had ceased, and actions taken in
response to being bullied. In particular, participants
were asked to use metaphors to describe their overall
experience of being bullied, the bully, their feelings
about themselves, and their feelings about their
organisation at the time of the bullying.
The phone interviews
Prior to the commencement of each interview, the
researcher briefly outlined the interview procedure.
Next, the consent form was read to participants in
order to obtain their verbal consent. The consent
form was later posted to participants for their
signature. Participants permission was sought, and
received, for audiotaping of the interview.
Four participants chose to be interviewed over the
telephone in their home. The researcher asked
participants to choose an area in the house that was
quiet, in order to ensure that the tape recording
would not be affected by background noise. The
interviews (including the face-to-face interview)
were semi-structured to enable further investigation
of issues that arose and that extended beyond the
series of questions developed. The telephone
interviews lasted one hour on average.
At the conclusion of each interview, participants
were able to ask the interviewer questions and to
provide additional information that they felt was not

covered in the interview. Arrangements were made
to send the transcript of the taped interview to each
participant for their comment and review.
The face-to-face interview
One participant chose to have a face-to-face
interview in order to tell his workplace bullying
story. At the beginning of the interview, the
participant was handed a consent form and was
given time to read it and ask any questions prior to
signing it. Consistent with the procedure followed
for the telephone interviews, the participant was
informed of the likely duration of the interview, the
number of questions to be covered, and the role of
the researcher. In addition, the participants postal
details were obtained and permission was sought,
and granted, for audiotaping the interview.
The interview was conducted in an area that the
participant considered was discrete and where
anonymity and privacy would be protected during
the interview. The interview lasted approximately
one and three quarter hours. The lengthy duration
may be due to the fact that there was an unforeseen
interruption that resulted in a change of venue about
halfway through the interview process. The second
venue was another room that provided privacy.
E-mail responses
Six participants opted to respond to the questions by
e-mail.
An e-mail message containing two
documents as attachments was sent to each
participant. The documents attached were the set of
twelve interview questions and the informed consent
form. Participants returned their responses by email and posted their signed consent form by surface
mail.
Any additional comments or questions
appeared at the end of their written responses.
Data analysis
At the completion of the interviews, the five
audiotapes were transcribed in order to preserve
participants stories in written format and to assist
with the analysis of their experience. The transcripts
were analysed together with the six e-mail
responses.
The five interview transcripts and the six e-mail
responses were read and interpreted through serious
inspection. This method was employed to identify
key phrases and statements in relation to
participants experiences of being bullied, and their
use of metaphor to explain that experience
(following Dey, 1999).
Concurrently, the taped interviews were listened to
while the transcripts were read. This enabled the
researchers to take into account the participants
non-verbal behaviour, such as pauses, tone of voice
and nuances of speech (following King, 1994). In

addition, this approach enabled the researchers to
complete any omissions that occurred during the
transcription process. During the entire analytical
process, the transcripts (including the e-mail
responses) were re-read on six occasions so that the
key patterns, concepts, phrases and words used by
the participants could be identified.
Key words and phrases served to identify themes,
which, for the purpose of this paper are identified as
the overall bullying experience, the bully, feelings
about yourself, and feelings about the organisation.
To assist with the illustration of themes, narrative
extracts, including metaphors, from the 5 interview
transcripts and the 6 e-mail responses were recorded
under their respective themes. The extracts were
reviewed in this new format which further enabled
the researchers to reflect on the metaphors, and on
the meanings of words and phrases used by the
participants.
In some cases, additional information was required
from the transcripts to understand further the
experiences of the participants. To enable ready
identification and location of further information in
the transcripts, page numbers on which the
illustrative extracts appeared in the transcripts were
listed with the illustrative extracts in the first
instance. Returning to the transcripts to locate such
data also assisted with the contextualisation of that
information when necessary.
In identifying the shared words and phrases used,
patterns emerged that were common to many
participants. For example, in relation to their
bullying experience, the researcher searched for
what each participant had said about particular
actions taken by the perpetrator. A tally of the
number of participants who commented about each
action, such as the use of sarcasm, was recorded.
Sometimes, the themes that were mentioned by one
or two participants only, were collapsed into larger
themes. For example, in relation to how participants
felt about their organisation at the time of the
bullying, only two participants used the keywords
hypocritical and inconsistent in describing their
feelings about the organisation. Consequently, these
two responses were collapsed into a larger theme
entitled, disillusioned about the organisation.
The eleven themes identified through the analytical
process were: (1) the overall experience of being
bullied; (2 reactions to the bullying; (3) feelings
about self at the time of interview; (4) feelings about
the organisation at the time of the bullying incidents;
(5) feelings about the organisation at the time of
interview; (6) actions taken as a result of being
bullied; (7) participants views of strategies that the
organisation could have adopted; (8) helpful
information; (9) organisational policies; (10) legal

action; and (11) metaphors.
Following thematic categorisation, the data was
reassembled into a meaningful context. The lived
experiences of each participant, as they related to
workplace bullying, were gathered together for a
common purpose. Using the analysis of the data,
participants experiences were described and
presented in a narrative format in which there was
generous use of appropriate illustrative extracts. For
the purpose of this paper, only the category entitled
metaphors is presented and discussed. The label
P1 in parenthesis after the narrative extract
identifies Participant 1.
Results
All participants were asked to use metaphors to
describe their overall experience, the bully, their
feelings about themselves, and their feelings about
organisation at the time of being bullied. The
researchers hoped that the use of metaphors would
aid participants in describing their traumatic
experience(s), and enable others to gain a deeper
understanding of the emotional experience of each
participant.
The overall bullying experience
Ten of the eleven participants used metaphors in
describing their overall experience of being bullied
in the workplace. The most common feeling
expressed by eight participants was one of
helplessness.
Words and phrases used by
participants included, drowning, struggling and
being trapped. Typical comments were:
It was like drowning and calling for help. I could
see and hear everyone else, but to them I was
invisible and they could neither hear nor see me no
matter how loudly I screamed or how wildly I
thrashed about. (P1)
[It was like] being trapped in a bottle garden with
her [the bully] outside. (P3)
The bully
Nine participants attempted to use metaphors to
describe the person who was perceived to be the
bully.
Four participants believed that the bully
was insincere and two-faced. In describing one of
the bullies who targeted her, P2 stated that the bully
was a tyrants heart wrapped in a womans
petticoat. Similarly, P3 saw the bully as the doll
with two heads. She further explained that, Under
one skirt is a happy kind doll. Turn her over and lift
her skirt and she is an evil/wicked witch. Twist the
head and you may find a wolf. So never knowing
really which face is real, or which one would be
presented next.
Three participants believed that the bully was very

controlling and uncaring and used metaphors to
describe these undesirable qualities. For example,
P8 nicknamed the bully as the Sergeant Major and
The Enemy. Two of these participants aligned
their experience to being steamrolled and processed
by a machine. For example, P11 commented, it
was like a machineyou either meshed in or you
were spat out.
Feelings about yourself
Nine participants used metaphors to describe how
they felt about themselves at the time of the
bullying.
Four participants felt trapped and
vulnerable. For example, P5 described feeling
trapped and abnormal. She explained that it was
like being stuck in a bad dream like Ray Miland in
a B-Grade movie or like being the only normal
character in a Salvador Dali painting.
P1
described herself as being part of a game, stating
that it was like being stuck to the bulls eye on an
archery target while a very good archer was
shooting arrows. It was a game to them [the
bullies]. Three other participants felt unimportant,
fearful and a victim of circumstance. For example,
P2 felt as if she was an inconsequential speck of
naked filth.
Feelings about the organisation
Nine participants used metaphors to describe their
feelings about their organisation at the time of being
bullied. The majority of these participants described
their organisation and management as inconsistent
and inactive in preventing bullying in the workplace,
or in counselling and disciplining the bully. In two
instances the metaphors clearly depicted managers
and/or the organisation turning a blind eye to cases
of workplace bullying. For example, P1 explained
that it was like watching someone commit murder
and everyone else choosing not to see what was
happening. Another participant described her
manager as a bit of an ostrich and putting his head
in the sand and going, Oh, well, shes shut up,
obviously the problems gone away. (P9)
Discussion
One of the aims of the study that is reported here
was to examine the metaphors used by victims of
bullying in describing their overall experience of
being bullied, the bully, themselves and their
organisation. The second aim was to examine how
the richness of metaphors contributes to our
understanding of the bullying experience. Overall,
participants who responded by e-mail provided more
detailed metaphors than those who were interviewed
over the phone, particularly in relation to
descriptions of themselves and the bully.
The researchers noted that, during the interviews,
four of the five participants required further
explanation about what metaphors were and how

they were used. Clarification did not always
produce a satisfactory result. The researchers
interpreted the questioning by participants as
confusion about what was being asked of them.
Participants may have felt stressed as a result of
having to think of a metaphor on the spot.
Consequently, the interviews were deemed as
producing less valuable information with respect to
metaphors than was expected. This expectation was
based on the fact that the majority of clinical studies
using in-depth interviews to obtain metaphoric data
have reported great insights into peoples traumatic
experiences (Eisikovits & Buchbinder, 1999;
Fromme, Marlatt, Baer & Kivlahan, 1994; Krizek,
Hecht & Miller, 1993).
The results of the study also indicate that the
richness of metaphors emerges more when
participants are given time to reflect on and write
their responses compared to responding verbally.
Participants who responded by e-mail found it easier
to use metaphors to describe themselves and the
bully, when compared to the interviewees. This
finding suggests that asking participants to write
their responses by way of survey, questionnaire or email is a useful way of gathering rich metaphoric
data.
In particular, e-mail surveys provide
participants with a convenient method for
responding quickly by way of the Internet. To the
researchers knowledge, few if any studies
investigating metaphors in organisational and/or
clinical settings have utilised e-mail to gather
metaphoric data.
How metaphors were used
In considering the value of metaphors as an analytic
tool, it is important that the metaphor is simple and
concise, and that it aligns with the message that the
participant wishes to be conveyed. For example, P3
described the bully as the doll with two heads
which is a simple and concise statement. Consistent
with other responses, P3 then followed the statement
with a detailed description of how this statement was
appropriate to her situation.
In comparison,
interviewees used adjectives and nicknames such as
bombastic and the enemy to describe the bully.
Overall, participants used metaphors to describe the
bully as insincere, controlling and uncaring.
In relation to participants feelings towards
themselves at the time of the bullying, a similar
pattern of response was revealed between the
interviewees and the e-mail participants. Only three
of the five interviewees attempted to use metaphors
to describe themselves, coining phrases such as
fearful of the situation and a victim of
circumstance. In contrast, e-mail participants were
more descriptive in their metaphors, using words
and phrases to capture feelings of entrapment,

insignificance and vulnerability.
Overall, the majority of participants used metaphors
to help recall and describe situations that were still
anxiety provoking for some. Similar to a study by
Stein (1991) that examined the use of metaphors to
describe organisational loss, participants were able
to use metaphors to express a sense of injury and
grief. It is also interesting to note that metaphors
pertaining to the organisation, and participants
overall experience of being bullied, were less
informative then metaphors used to describe
themselves and the bully. One explanation for this
finding may be because participants feelings
towards themselves and the bully provoked a
stronger, negative reaction, thus enabling more
illustrative metaphors to be constructed. According
to Witztum, Van der Hart and Friedman (1988),
metaphors make it possible to recall anxietyprovoking situations. They explain that when
constructing metaphors, the focus shifts from the
issue to the metaphoric description of the issue,
allowing the individual to be more expressive by
deactivating their defences and thus minimising the
anxiety.
Benefits of using metaphors
Metaphors have been shown to be beneficial to
individuals,
therapists
and
consultants
in
organisational and clinical settings. Although it
would appear that no studies have investigated the
use of metaphors by victims of bullying, this method
seems worthy of further investigation in this new
domain.
Metaphors help link concepts and they help build
bridges between old and new knowledge. They
evoke an emotion or a feeling that can help create a
positive learning experience. They inspire lateral
thinking and they create a message that encourages a
different perspective.
Using metaphors also
facilitates the recall of information by using
language that activates the senses such as sight,
touch, hearing, and smell. Overall, exploring the use
of metaphors may provide researchers with
additional information and greater insight into the
meaning individuals give to being bullied, and the
nature and impact of the bullying behaviours on
them.
Acknowledgements
The researchers wish to acknowledge that funding
for the original research from which this paper is
drawn was provided by a small Australian Research
Council (ARC small) grant. They would also like to
acknowledge the generosity of each of the
participants who agreed to share their stories for the
purpose of this study. They also thank Oonagh
Barron from Job Watch in Victoria and Helene Dyer
from Griffith University for their ongoing support

and assistance throughout the project.
The researchers wish to advise that the research
from which this paper is drawn was undertaken in
each authors capacity as a staff member of Griffith
University.
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Michael Sheehan
Email: M.Sheehan@mailbox.gu.edu.au
Phone: 61 7 3875 7456
Culture and production efficiency

Harm-Jan Steenhuis and Erik J. de Bruijn
Technology and Development Group, University of Twente, The Netherlands
Abstract
The links between national cultural characteristics
and efficiency of production are investigated. It is
the outcome of research on international technology
transfer. A major finding of this study is that the
efficiency of the Destination Company differs
significantly from the efficiency of the Source
Company. Case study evidence shows that in
instances where the Source Company plans the
technology transfer, the efficiency of the
Destination Company was overestimated. The
results also showed that organisation structure and
culture influenced the production efficiency. It is
discussed that these factors are manifestations of
national culture. This leads to a proposition on
maximum production efficiency. An implication of
this proposition is that characteristics of certain
countries (cultural) fit better with specific
production technologies.
Keywords:
Technology transfer, national culture, production
efficiency
Introduction
The manufacturing activities of companies are
increasingly
taking
place
in
international
manufacturing networks (Shi and Gregory, 1998). In
this framework international technology transfer
occurs. The transfer of technology is in many cases
difficult. Frequent failures with technology transfer
testify this fact. Attempts have been made to develop
a comprehensive theory on the international transfer
of technology by looking at technology transfer as a
process (e.g. Grant et al., 1997). Recently a research
project was set up to study the process of
international (production) technology transfer in the
aircraft industry, as an example of high technology
transfer. During the research a concept was
developed for production technology: it consists of
three core elements: humanware (people), inforware
(documents) and technoware (machinery). Besides
this core of technology, there are inputs (parts and
materials) and outputs (the aircraft or aircraft part)
and it is controlled by management. The
international transfer of technology refers to the
transfer of part or whole of the technology across
national borders.
One of the main findings of this research is that the

efficiency1 of the Destination Company (DC, the
receiver of the technology), which was estimated in
three of the four cases by the Source Company (SC,
where the technology originates), prior to transfer,
was over estimated. This affected the time period
necessary to transfer the technology and the
continuous production activities. It was found that
national cultural characteristics are a main
determinant of production efficiency in the case
companies and a proposition is developed on the
influence of national cultural characteristics on the
maximum production efficiency.
Methodology
The study was set up to determine the important
phases and factors for technology transfer. After
evaluating the theoretical and practical issues an
inductive approach was chosen conform Eisenhardt
(1989). Technology was considered to be of prime
importance since technology transfer deals with
technology.
Four case studies were executed, identified as:
Woodpecker, Swan, Eagle and Albatross. Case study
selection was based on theoretical sampling
(Eisenhardt, 1989). In addition, insights gained in
earlier case studies were used to identify later
potential cases to elaborate on certain issues
(snowball sampling) (Miles and Huberman, 1984;
Verschuren and Doorewaard, 1995).
An approach was followed where the research was
executed in the DC during a part of the technology
transfer process. This was considered the most
appropriate for obtaining the data since the
implementation activities take place at the DC. This
approach allowed becoming familiar with the
technology as well as the application of a
combination of several data collection techniques
such as observation, interviewing and document
analysis.
During nine months in the DCs, approximately 315
interviews were held with 45 different people
1 Efficiency is defined as (norm sacrifice)/ (real sacrifice), (Int Veld, 1992). The
number of man-hours necessary to produce the product, with a fixed technology, is used
as a measure for the sacrifice.
representing both the SC and

Table 1 Case characteristics1
the DC. To overcome a main
Case
Age of
Magnitude
Source
Destination
objection against case study
technology
of technology
Company
Company
research (the number of
Woodpecker
approximately
large
Birds of the
Mountain Birds
variables is larger than the
(entire aircraft)
10 years
Woods (UK)
(Romania)
number of units (Swanborn,
Swan (cockpit)
Approximately
small
Forest Birds
Mountain Birds
5 years
(Canada)
(Romania)
1996)), several strategies
Eagle
approximately
small
Birds of Prey
Mountain Birds
were followed to increase the
(empennage)
1 year
(UK)
(Romania)
degrees of freedom of the
Albatross (skin
approximately
small
Sea Birds
Elegant Birds
data.
These
included
section)
7 years
(Germany)
(the Netherlands)
remaining on site and thus
Observations and interviews with foreign
measuring at multiple moments, using the
representatives led to the insight that these factors
triangulation principle, performing a member check,
did not only apply for Mountain Birds but they were
and collecting additional data from other companies
part of the Romanian culture.
for comparing purposes. The selection of the case
studies was executed as is indicated in table 1.
Discussion
Results
The case studies indicated that efficiency of the DC
is one of the most important factors for technology
transfer (Steenhuis, 1998a; 1998b; 1999a; 1999b).
Inefficiency at the DC influences the time period
necessary for the transfer, and the production
efficiency of continuous production at the DC.
The Woodpecker and Eagle case studies showed that
the SC, that planned the technology transfer,
explicitly assumed that the DC would have lower
production efficiency than the SC. Effects of
learning did not cause the lower production
efficiency. This factor was separately taken into
account, see also (Steenhuis and de Bruijn, 2000).
For the Swan and Albatross technology transfers the
companies did not explicitly take differences in
efficiency into account.
The case study evidence shows that the DC and SC
have different efficiencies and it was also shown that
the estimated efficiencies of the DCs were incorrect.
The actual efficiencies of the DCs were lower than
expected. An exception to this was the Albatross
case. It turned out that this was the case because in
this instance the DC developed the project plan and
not the SC.
The analysis lead to the conclusion that the
efficiency of the DC was mainly determined by four
variables; degree of centralisation, workforce
acceptance of responsibility, attitude towards time,
and the motivation of the workforce. It was shown
that a low acceptance of responsibility, a workforce
with low motivation, and a relaxed attitude towards
time were characteristics of a low productivity
culture. At the same time, a high acceptance of
responsibility, a high workforce motivation and an
emphasis on the importance of time were
characteristics of a high productivity culture
(Steenhuis, 2000).
The case studies illustrated that the Romanian

culture influenced the efficiency of Mountain Birds.
The importance of national culture leads to several
important questions about national culture:
1. What determines national culture (input)?
2. What are independent national cultural
variables (output)?
3. What is the influence of these variables on
production efficiency?
This is schematically represented in Figure 1.
independent input variables
1
NATIONAL CULTURE
2
independent output variables
3
PRODUCTION EFFICIENCY
Figure 1 Cultural determinants of efficiency

The first question can not be answered in this
context because not enough is understood about this
phenomenon. It is outside the scope of this paper to
contribute to this field. The second question is
relevant because it is not clear from the case studies
how the identified variables relate to national culture
and whether they are independent.
Cultural output variables
To get a grip on the identification of independent
cultural (output) variables, the theory of Hofstede
has been applied2. Hofstede defines culture as: the
1 Other literature on the topic of culture was also examined, e.g. Trompenaars. It was
found that both Hofstede (1997) and Trompenaars (Trompenaars and Hampden-Turner,
1997) indicate several cultural dimensions, but the number and content of their
collective programming of the mind which

distinguishes the members of one group or category
of people from another (Hofstede, 1997, p. 5).
Hofstede distinguished several levels of culture
(Hofstede et al., 1990; Hofstede 1997).
He found that there are four independent dimensions
to the differences between national value systems
(national culture). These are termed: power distance,
uncertainty avoidance, individualism versus
collectivism, and masculinity versus femininity.
Research from Bond led to a fifth dimension:
Confucian dynamism (Hofstede, 1997).
In the case studies, four variables were identified.
One of these variables, the acceptance of
responsibility by the workforce, can be considered
as a measure of power distance. Romania is a
country with high power distance (at least compared
to the situation in the Netherlands, UK and Canada
{which have approximately the same score on power
distance according to Hofstede}). In a high power
distance country, centralisation is popular and
subordinates expect to be told what to do (Hofstede,
1997, p. 37). Thus, another variable in the case
studies, degree of centralisation in the organisation
structure, is related to the same dimension of
national culture 3.
Another variable, attitude towards time, can be
considered as a measurement of the uncertainty
avoidance dimension. Romania can be seen as a
country with a weaker uncertainty avoidance than
the Netherlands, UK and Canada (all of these
countries have a weak uncertainty avoidance). In
weak uncertainty avoidance countries, people are
quite able to work hard if there is a need for it, but
they are not driven by an inner urge towards
constant activity. They like to relax. Time is a
framework to orient oneself in, but not something
one is constantly watching (Hofstede, 1997, p.
121). Lewis (1998) added insight into the dimension
of attitude towards time. Lewis used Hofstedes
definition of culture but he also looked at culture
from a language perspective. Lewis classified the
worlds cultures into three rough categories4 (Lewis,
1998, p. 5):
linear actives: those who plan, schedule,
organise, pursue action chains, do one thing
at a time
multi-actives: those lively, loquacious peoples
who do many things at once, planning their
priorities not according to a time schedule,
but according to the relative thrill of
dimensions are not the same. Trompenaars identified more cultural dimensions but does
not indicate how much variance in the data these dimensions explain.
3Although degree of centralisation and attitude towards responsibility were perceived as
independent it is now shown that in fact these two are related variables.
4 Trompenaars also identified this phenomenon, he termed it sequential and synchronic
(Trompenaars and Hampden-Turner, 1997, p. 124).
importance that each appointment brings with

it
reactives: those cultures that prioritise courtesy
and respect, listening quietly and calmly to
their interlocutors and reacting carefully to
the other sides proposals
This categorisation matches the observations in the
research. In the Netherlands, Canada and UK,
people are linear active. In Romania, the people
were perceived as multi-actives.
The fourth variable that was identified in the case
studies, workforce motivation, cannot be traced to a
dimension of national culture. It is not the amount of
motivation of people but rather what motivates
people that is related to national culture (see also
(Hofstede, 1997, p. 71; p.123; p. 153)). In other
words, the amount of motivation that was observed
in the case studies had more to do with what
individuals were looking for, and how the
organisation was contributing to this, than with
national conditions.
The other three dimensions of national culture
identified by Hofstede were not observed in the case
studies. Hofstede states that the power distance and
uncertainty avoidance dimensions affect our
thinking about organisations. The other dimensions
affect our thinking about the people within
organisations (Hofstede, 1997, p. 140). Since the
research was aimed at the organisational level it is to
be expected to find only the variables that reflect
this.
The variables observed in the case studies
(acceptance
of
responsibility,
degree
of
centralisation, and attitude towards time) can thus be
seen as manifestations of national cultural
dimensions.
Efficiency, organising, and culture
An important determinant of efficiency for a
company is the match between the type of
production technology used and the market
requirements (Hill, 1987, p. 59 et seq.). The type of
production technology used by an organisation is
related to the way a company is organised
(Mintzberg, 1979). Thus, market characteristics and
the type of organisation are coupled via production
technology. For example, high volume standard
demand fits with assembly line characteristics and a
full bureaucracy organisational structure, whereas
low volume specialised demand fits with unit
production and an the advocacy organisational
structure.
Sorge and Maurice (1993) make a distinction
between a fit between the firm (type of organisation)
and the industry (market characteristics) and the fit
between industries and societies. According to them,
the fit between industries and societies is more

important than the fit between a firm and the
industry.
Lincoln, in his comparison of Japanese and
American work organisations, showed that the
method of organising is linked to national
characteristics (Lincoln, 1993). Kogut also links the
organisation of work with national factors. He states:
national organising principles pertain to how the
shopfloor and the workplace, the corporation, and
the institutions between and supporting individual
firms are organised. It is because the resources of a
firm are linked to the greater economy that
competitiveness must be understood, partly, as a
question of the productivity of its resident country.
But, more subtly, it is because the country of origin
of a firm has impressed a set of operating rules for
example, how to manufacture, to manage people, to
do research on the firm that even when it is a
multinational
corporation,
it
carries
this
organisational baggage (Kogut, 1993, p. 6).
One of the most important societal characteristics is
the national culture. Hofstede relates the method of
organising to the society (its national culture).
Hofstede coupled the power distance and uncertainty
avoidance dimensions with the organisation
structure theory of Mintzberg. In the words of
Hofstede: other factors being equal, people from
a particular national background will prefer a
particular configuration because it fits their implicit
model, and [] otherwise similar organisations in
different countries will resemble different Mintzberg
configuration types because of different cultural
preferences (Hofstede, 1997, p. 151). This is
depicted in figure 2.
Low
ADHOCRACY
SIMPLE
STRUCTURE
DIVISIONALISED
FORM
Uncertainty
avoidance
PROFESSIONAL
BUREAUCRACY
FULL
BUREAUCRACY
High
Low
Power distance
High
Figure 2 Different types of organisations, adapted

from (Hofstede, 1997)
It follows from the above that three important
relationships can be discriminated: the link between
the type of organisation and the market
characteristics, the link between the market

characteristics and the society (national culture), and
the link between the society (national culture) and
the firm. A consequence of this is that certain
national cultural characteristics fit with certain
production technologies.
If the type of organisation, the market
characteristics, and the national culture all match
then a maximum efficiency can be achieved. In
practice, there will be many instances where these
matches do not exist as was shown in the first three
case studies. Romanian cultural characteristics fit
with the simple structure but the aircraft industry can
be characterised as non-standard. Although a limited
range of aircraft is available, airlines have
requirements that lead to customisation. This type of
aircraft demand requires a production technology
based on unit production, and this matches an
advocacy type of organisation (this is the preferred
type of organisation in Canada, Germany, the
Netherlands, and the UK). The evidence from the
case studies suggests that, due to the mismatch, the
aircraft production efficiency in Romania is lower
than that in countries where the preferred type of
organisation matches market characteristics. This
leads to the following proposition:
The national cultural characteristics determine
the preferred type of organisation for a company.
For companies to achieve the maximum
production efficiency the actual type of
organisation, the preferred type of organisation
and the market characteristics must match5.
The relationship between national cultural
characteristics and production technology is not an
entirely new phenomenon. For example Hayes and
Wheelwright (1984) note the differences between
American, German and Japanese production
methods. However, they did not elaborate on the
cultural aspects because they do not believe that
unique cultural conditions have a large impact.
Hayes and Wheelwright further stated that if cultural
aspects did have a large impact, it would be an
intellectual end, because it would mean that to learn
from companies in other countries might mean that
large environmental changes might be necessary
(Hayes and Wheelwright, 1984, p. 336).
The case studies suggest that Hayes and
Wheelwright were underestimating the importance
of cultural conditions. With regard to the
environmental changes, learning can also be seen in
a different light. One of the major mistakes made in
management is copying techniques from other
5 If the market characteristics and the national cultural characteristics do not match, the
firm is stuck and its efficiency will not be the maximum possible efficiency, this was
the case for Mountain Birds.
cultures. The techniques can in most cases not be

separated from the environment in which they came
into existence6. Just copying often leads to poorer
results. With respect to this issue Kogut states:
the feasibility of the adoption of best practices by a
firm is strongly linked to the system-wide
characteristics of its regional and national
environments (Kogut, 1993, p. 5). Rodrigues
(1998) with regard to the management aspect also
notes that because different societies hold
different views, a managerial style that works in one
culture will not necessarily work in another.
Relating cultural characteristics to production
technology explains how authors on economic
theory can couple the product life cycle with
technology transfer of mature technologies to
industrially developing countries (Vernon and
Wells, 1991). In practice, most of the industrially
developing countries have cultural characteristics
that show a high power distance and high
uncertainty avoidance, and thus these countries are
best suited to industries that are stable and simple.
These kinds of industries are frequently based on
mature technologies.
Coupling cultural characteristics to efficiency of
production also explains why when researching
profitability of firms, a large part could not be
explained by several authors (for example
(Schmalensee, 1985), (Rumpelt, 1991) and
(McGahan and Porter, 1997)). These authors only
researched in one national setting, thus effectively
ignoring what could be seen as the most important
variable, the societal (cultural) situation.
Conclusion
It was shown that the national cultural dimensions;
power distance and uncertainty avoidance, as
identified by Hofstede, are major variables in
determining the way in which a company organises
its activities and its production efficiency as given in
the proposition. The case study research led to the
conclusion that international transfer of technology
is very much dependent on the efficiency level of the
DC. The analysis showed that the efficiency level of
the DC was dependent on four variables; degree of
centralisation,
workforce
acceptance
of
responsibility, attitude towards time, and the
motivation of the workforce. It was determined that
degree of centralisation, workforce acceptance of
responsibility, and attitude towards time were
manifestations of national culture. This led to the
insight that national cultural characteristics, the type
of organisation, and the market characteristics need
to match in order to achieve maximum production
6 Hayes and Wheelwright, when discussing the German and Japanese manufacturing
management approaches, mention strengths that exist precisely because of cultural ways
of thinking.
efficiency. A consequence of this is that if

companies transfer production activities across
borders, they often will be faced with lower
efficiencies due to the differences in national
culture.
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374
TRANSCENDING BOUNDARIES: INTEGRATING PEOPLE , PROCESSES AND SYSTEMS
Transcending boundaries and transforming industrial relations in the

meat processing industry of Queensland: A case study from the 1990s
Gordon Robert Stewart
Faculty of Business & Law, Central Queensland University, Australia
Abstract
The work of Kochan, Katz and McKersie (1986) with
respect to the alleged transformation of industrial
relations in the United States of America, resulted
in the formulation of a theory of strategic choice.
This theory emphasises the importance of
understanding and studying the strategic choices
of the principal actors in any given system of
industrial relations. To that end, this paper studies
the process of enterprise bargaining that occurred
from 1994 to 1996 at the export meatworks, which
were owned by Australia Meat Holdings in
Queensland. It focuses on the strategic choices of
the key players throughout this bargaining process.
The paper attempts to answer the following
question: To what extent did the strategic choices
of the management of Australia Meat Holdings
determine the course of enterprise bargaining at its
Queensland works from 1994-1996?
Keywords
Strategic Choice; Enterprise Bargaining; Meat
Processing Industry
Abbreviations
AIRC
Australian
Industrial
Relations
Commission
AMH
Australia Meat Holdings Pty Limited
AMIEU Australasian Meat Industry Employees
Union
HRM
Human Resource Management
IC
Industry Commission
MATFA Meat and Allied Trades Federation of
Australia
USA
United States of America
Introduction
Throughout the course of the last two decades, the
public policy debate in Australia has been dominated
by the rhetoric of reform. This reform rhetoric
has been primarily directed towards both the
microeconomic and the macroeconomic reform of
the Australian economy. The theory and practice of
management in Australian based organisations and
workplaces has of course, been a key component in
any consideration and discussion of what has to be
achieved, and how it has to be achieved. The
transcending of organisational boundaries, and
the integration of various operating systems,

individuals and processes within the new
organisation, is part and parcel of the rhetoric that
surrounds these discussions. Furthermore, given the
importance of the economy to the health and well
being of the nation, such discussions and debates
have permeated the body politic and fabric of
society to a greater extent than could have been
conceived at the beginning of the 1980s (Bamber &
Lansbury 1998; Keenoy & Kelly 1998).
The linkages that exist between the performance of
the Australian economy and the performance of the
world economy provide a partial explanation for
these developments. The political and philosophical
dispositions of key public policy and organisational
decision makers have also been significant factors in
the determination of both governmental and
organisational responses to the challenges created by
changing global market place conditions (Bamber &
Lansbury 1998; Keenoy & Kelly 1998). This paper
will discuss the impact of these factors and forces on
industrial relations within the meat processing
industry in the State of Queensland in the 1990s.
This outcome will be achieved by studying in
particular, the process of enterprise bargaining that
was undertaken from 1994 to 1996 at the export
meatworks, which were owned by Australia Meat
Holdings. This study will be linked to certain
theoretical developments that emanate from the
study of change in the industrial relations system of
the United States of America, to which our attention
is now turned.
The theory of strategic choice

Theorising about the contemporary nature of, as well
as the future direction of, national systems of
industrial relations in the post Second World War
period has achieved a measure of academic
respectability and subsequent notoriety. By the
1980s, the theories designed in the late 1950s and
the early 1960s were being revised and modified to
accommodate the unforeseen developments that had
occurred as the post-war economic boom gave way
to periods of uncertainty and volatility (Bamber &
Lansbury 1998). One theory that was thought to be
in need of up dating was the systems model of
John T. Dunlop (1958). This particular model had
been very influential in underpinning the academic
study of industrial relations. In essence, it focused
on the making of rules by actors operating within

the constraints of the overall societal, economic and
technological environment. Insofar as it could fairly
be characterised as a theory or a model (and this is
debatable), the Dunlop approach to the study of
industrial relations emphasised the features,
institutions and characteristics of the system. The
challenges posed by the economic pressures of the
1970s and the 1980s to the institutions of one such
industrial relations system (that of the United
States of America), led directly to the development
of the theory of strategic choice. Of course, this
particular theory has also been subjected to the usual
doubts as to whether or not it constitutes a
comprehensive theory of industrial relations. Be
that as it may, this framework of analysis is
relevant to any paper that purports to study the
reasons for changes to systems of industrial relations
(Deery, Plowman & Walsh 1997, pp. 1.20-1.22;
Kitay 1997; Bamber & Lansbury 1998, pp. 9-10).
The theory of strategic choice was perhaps the
most significant outcome of the research, which was
undertaken by three American scholars with respect
to the transformation of the system of industrial
relations in the USA (Kochan, Katz & McKersie
1986). In their own words:
Our central argument is that industrial relations
practices and outcomes are shaped by the
interactions of environmental forces along with the
strategic choices and values of American managers,
union leaders, workers, and public policy decision
makers. We believe that by better understanding the
nature of these interactions, the consequences of
alternative strategic choices (and the different
values they embody), the parties can gain greater
control over the destiny of the organizations and
interests that they represent (Kochan, Katz &
McKersie 1986, p. 5).
In the case of America, Kochan, Katz and McKersie
found that managers had exercised the key strategic
choice in changing the post-war practice of
industrial relations in that country. They had
responded to increased competitive pressures by
abandoning, avoiding, or even suppressing, the
collectivist institutions (such as trade unions and
collective bargaining) of the allegedly old industrial
relations (Kochan, Katz & McKersie 1986; Deery,
Plowman & Walsh 1997; Kitay 1997).
By the 1980s, management in the USA favoured the
individual employee orientated practices and
schemes propagated and implemented in American
workplaces by human resource management
practitioners, as part of the purportedly new
industrial relations. A critical element in this
process was the displacement within organisations
(in terms of influence, authority and status), of
industrial relations practitioners by their HRM
counterparts. Of course in general terms, the latter
(with their philosophical focus on individualism and

commitment within the employment relationship)
were thought to be more flexible and supportive of
innovation than the former (with their
philosophical focus on collectivism and the
management of conflict within the employment
relationship). Increasingly, American managers were
expecting HRM practitioners to transcend existing
industrial relations boundaries, and to better
integrate people, processes and systems, into what
could almost be fairly described as new
organisations (Kochan, Katz & McKersie 1986;
Deery, Plowman & Walsh 1997; Kitay 1997).
The management of employment relations was no
longer the sole prerogative of middle level
managerial specialists, who were conversant with
the intricacies of the industrial relations system.
Indeed, the role of these specialists in shepherding
the implementation of the decisions of their
employers, through the labyrinth of constraints that
were imposed on managerial practice by that
particular system, inevitably led to them becoming
associated by management with these workplace
rigidities. Competitive pressures required an
integration of middle-level management decisionmaking processes, with those of the managers who
worked above and below this decision-making level
in the organisational hierarchy. Furthermore, the
employment relationship choices that were available
to American managers now extended beyond the
traditional union/non-union ones. They also included
employee empowerment and flexible work practices
as part of a new industrial relations framework. A
sophisticated HRM and trade-union exclusive
model, and a transformed trade union inclusive
model of employment relations were at the centre
of this new industrial relations (Kochan, Katz &
McKersie 1986; Deery, Plowman & Walsh 1997;
Kitay 1997).
Inevitably, this Kochan, Katz and McKersie view of
the development of the system of industrial relations
in the USA attracted criticism. Scepticism has been
expressed as to the actual extent of the
transformation of American industrial relations in
practice (Deery, Plowman & Walsh 1997, pp. 1.201.22). Of course, similar reservations can be found
in
the
literature
regarding
the
alleged
transformation of industrial relations in many
industrialised market economies throughout the
world (Bamber & Lansbury 1998). Such
reservations are also applicable to the studies of
various industries within these national economies
(Kitay & Lansbury 1997). A number of criticisms
have also been made with respect to the theory of
strategic choice and the central role of
management in changing systems of industrial
relations. Indeed, it is ironic that one of the main
criticisms of a concept that emphasises integration is
376 TRANSCENDING BOUNDARIES: INTEGRATING PEOPLE , PROCESSES AND SYSTEMS

that management lacks a unified focus and a
The reform of industrial relations in the
coherence of vision in assessing its choices.
meat processing industry in Australia in
Management by muddling through is more
the 1990s
prevalent in practice than management by strategic
At first glance, the industrial relations history of the
vision. Furthermore, the centrality and the
meat processing industry in Queensland appears to
determinism of management strategy in terms of the
fit comfortably within the parameters, which were
implementation of the new industrial relations in
held to be characteristic of the old industrial
workplaces, obviates the necessity for choices.
relations. Here was an industry that was dominated
Managements agenda often emphasises a there is
by adversarial industrial relations, and defined by an
no other choice in the economic circumstances
adversarial industrial relations culture. The principal
perspective (Deery, Plowman & Walsh 1997;
production trade union and the meat export
Bamber & Lansbury 1998).
companies adopted a militant approach to the
furtherance of their interests. Such an approach was
The level of regulatory constraint imposed on the
enhanced by the fact that the industry was seasonal,
formulation of management strategy in any given
with labour being plentiful at the commencement of
system, is also a significant factor that has to be
each particular season, and scarce at its peak.
considered when discussing the relevance of such
Therefore, the employers were able to impose their
theories. Indeed, the relevance of the strategic
industrial terms on the workforce at the
choice theory may well be restricted to Anglocommencement of the season. In their turn, the
Saxon countries. It is in these countries that systems
employees were able to economically coerce their
of industrial relations can be most readily
employers into granting improved terms and
characterised as adversarial, and in which
conditions of employment at the peak of the season
employment relations are less heavily regulated by
(Walker 1970).
the State. Nevertheless, the applicability of the
strategic choice theory to the study and practice of
This pseudo-ritual was assisted by the fact that the
the Australian system of industrial relations, has
production process was in effect a sequential Fordist
been limited by the historically highly
dis-assembly line. As with all such systems, an
interventionist presence of the State (a relatively
organised and militant workforce was well placed to
unique
circumstance
amongst
Anglo-Saxon
interrupt the process, often by the strategic
countries) in employment relations in that country
placement of work bans and limitations. Within any
(Kitay 1997; Bamber & Lansbury 1998).
given meatworks, there were a myriad of
opportunities for the parties to contest control of the
Be that as it may, and notwithstanding these
production process, and use their industrial muscle
limitations, the analysis that has been provided for
to extract a higher price for their effort. The
scholars and practitioners alike by Kochan, Katz and
militant tendencies of the parties, the precarious
McKersie has, for the purposes of this paper, two
nature of employment, and the authoritarian
redeeming features. Firstly, it focuses attention on
supervisory practices and structures of management
the possibility of there having taken place in the
within the industry, almost of themselves guaranteed
concluding decades of the twentieth century, a quite
the development of comprehensive industrial award
fundamental transformation (however defined) of
regulation, with often complex and detailed
industrial relations systems in industrialised market
provisions covering the payment, recruitment,
economies. Secondly, their research emphasises the
deployment and dismissal of labour. These problems
key role played by management through the exercise
were compounded by the presence of an underof its strategic choices, in the implementation of
educated and under-skilled workforce, working in a
changes to the practice of industrial relations within
low-trust and sometimes unsafe, unhealthy and
American workplaces. These views will now be
unpleasant industrial environment without a great
tested against the evidence of changes to
deal of employee empowerment. Inevitably, the
employment relations within the meat processing
industrial relations culture of such an industry
industry in Queensland. The theory of strategic
(which was after all, based on the cruel necessity to
choice has been criticised for the lack of fervour,
slaughter animals and dis-member their carcasses)
flavour and passion, which it assigns to individuals
was hard and poor (Walker 1970; AIRC 1992; IC
and the institutional players in its analysis of their
1994; Deery, Plowman & Walsh 1997).
respective interdependent relationships (Deery,
Plowman & Walsh 1997, pp. 1.20-1.22; Kitay 1997;
Of course, this broad general summary of the
Bamber & Lansbury 1998). There has been no
industrial relations history of the meat processing
shortage of this missing fervour, flavour and
industry in Queensland is flawed. Conflict was not
passion in the industrial relations history of this
the norm. Nonetheless, at a time when the public
particular industry.
policy of the nation was focussing on improving the
productivity of its export industries in order to
maintain the living standards of its citizenry, it was

inevitable that this industry would enter the
proverbial spotlight. No amount of academic
quibbling could disguise the fact that this major
Australian export industry had problems (IC 1994;
Keenoy & Kelly 1998). These problems were
highlighted in the flowery language contained within
the submission of one group of employers to an
inquiry, which had been established to determine the
extent of the industrial relations difficulties of the
industry, and to propose their remedy:
There is [a] deepening crisis of falling international
productivity with no present incentives to improve
productivity levels; a crisis of declining profitability
as measured against a number of recognised
objective standards; and an abysmal record of
industrial disputation, distrust and open hostility; a
crisis involving attitudes and the culture of
participants within the industry - a culture conceived
in history, born out of mutual oppression, nurtured
by self-interest, and without reform, about to
strangle the very industry which it gave life to.
(MATFA, quoted in AIRC 1992, p. 23)
All of the major players in the industry agreed that
there were problems that needed to be addressed.
They divided along traditional employer and
employee battle lines however, when it came to
apportioning the blame and responsibility for these
difficulties, and proposing solutions for them (AIRC
1992; IC 1994).
On 17 June 1992, the Full Bench of the Australian
Industrial Relations Commission provided a
framework for the parties to overhaul the industrial
award structure of the industry, by establishing
three minimum rates awards covering the retail,
smallgoods and processing sectors respectively.
Furthermore, these newly constituted awards were to
be allied with enterprise agreements. Of course,
such agreements were to be developed in accordance
with the Commissions own principles regarding
such matters. Of equal significance in the decision
with respect to future events, was the stated support
for payment under the new awards to be for time
worked, with the proviso that the parties may agree
on the introduction of an incentive payments scheme
based on productivity performance (AIRC 1992,
pp. 1-14).
Since the 1960s, the phrase incentive payments
scheme had principally applied to a variety of
schemes that were designated as tally systems. In
general terms, these systems provided for a
minimum daily tally or output to be processed by
employees at a stipulated minimum rate of pay. The
employers in effect, guaranteed the minimum pay
for a day of work for these employees. As the rate of
production increased above this minimum tally to a
maximum tally and beyond, the rate of pay for each

worker employed under such schemes increased
disproportionately, as higher or penalty rates came
into effect. Hence wages and the prospect of leaving
the workplace early upon the completion of the set
tally for any given workday provided the incentive
for employees to increase productive throughput. Of
course, over time these schemes, which had
originally been introduced into the industry at the
instigation of the employers, became entrenched in
the industrial award regulation system. Indeed, they
came to be supported by the Australasian Meat
Industry Employees Union and opposed by many of
the meat processors in their present form (AIRC
1992; IC 1994; AIRC 1999).
The tally systems that emerged from the collective
bargaining rounds and the conciliation and
arbitration hearings of the 1960s and the 1970s came
to be seen as the principal and key features of the
comprehensive award system that regulated
industrial relations in the meat processing industry in
Australia. Therefore, those employers who perceived
that this particular award system was an impediment
to the economic performance of their organisations
focussed their attention quite naturally on the tally
systems. The tally system with its penalty payment
system was identified as the principal cause of
industrial disputation. It was held to be responsible
for restrictions on technological change, quality and
production, and therefore the under-utlisation of
plant in an industry with a history of seasonal
operations and excess or surplus capacity,
particularly in the northern part of the country. The
abolition of these systems of incentive payments,
and the diminution of the extent of the terms and
conditions of employment contained within the
system of industrial awards, became the primary
industrial relations objective of reform minded
employers (AIRC 1992; IC 1994; AIRC 1999). One
such employer was Australia Meat Holdings.
Enterprise bargaining in the meat

processing industry in Queensland 19941996
The strategic choice for employers lay in how best
to attain this objective. Some preferred to work
within the constraints imposed by the industrial
award regulation system and the tribunals that
administered it, as well as by the bargaining power
of the AMIEU. Once the leadership of AMH
determined that their industrial relations agenda
could not be achieved solely by working within the
traditional system, they set another course for
themselves. Frustrated by the lack of progress in
implementing the minimum rates award that had
been recommended by the AIRC, AMH resigned
from its employer association MATFA, and struck
out on its own in pursuit of its industrial relations

objectives. These quickly became identified in the
have been a watershed dispute in the long and
industry as relating to hours of work and the tally
eventful industrial relations history of the industry
system. The former were to be changed to extend the
(Fellows Medlock & Associates 1995, pp. 20-21;
number of working hours (that could be worked in
Stewart 1998).
one day, one week, and on the weekend), which
would be classed as ordinary workings hours and
As far as the AMIEU was concerned, enterprise
thereby fail to attract any penalty payments. These
bargaining was about ensuring that the terms and
demands were non-negotiable, and virtually
conditions of employment that had been secured by
guaranteed that any enterprise bargaining between
union activity over the years, and were enshrined in
the AMIEU and AMH would result in industrial
the industry awards, were secured and improved.
disputation. Furthermore, the Company exhibited a
For the Company, such bargaining provided an
willingness to take direct action by means of the
opportunity to make the quite fundamental reforms
unilateral imposition upon its workforce of its
that it considered to be essential for the future
preferred working arrangements. It also exhibited a
viability of its operations. The Commission wanted
preference for discussing its proposed reforms
enterprise bargaining to be underpinned by a
directly with its employees, to the exclusion of the
minimum terms and conditions award. It was
representatives of their trade union (AIRC 1995a;
however, forced by events to repeatedly intervene in
AIRC 1995c; Fellows Medlock & Associates 1995,
the bargaining process in an attempt to assist and
pp. 20-21; Stewart 1998).
cajole the AMIEU and AMH to bargain with each
other in good faith. Of course, the evidence of
Faced with competitive pressures that had seen the
damaging industrial disputation between the
number of meat processing plants decline
parties provided the immediate reason for its
significantly in Australia over a twenty-year period,
persistent intervention. This emerging pattern of
AMH decided to increase the productive capacity of
disputation led to the AIRC establishing interim
its works and transform the culture and
awards to protect the employment conditions of
employment practices within them. The industrial
AMH employees in Victoria and Queensland, whilst
relations part of this particular agenda focussed on
the processes of negotiating new industrial awards
controlling costs and the production process, as well
and enterprise agreements continued. Over time, the
as the introduction of more flexible work practices.
centre of the industrial disputation shifted to the
It was in many respects a very traditional industrial
AMH plants in Queensland, and more particularly to
relations agenda for the industry. What was new at
the Fitzroy River Abattoir in Rockhampton (AIRC
this particular point in time was the preparedness of
1995a; AIRC 1995b; AIRC 1995c; Stewart 1998).
the Company to confront the AMIEU and wear the
industrial consequences of its actions in the shorter
AMH responded to the industrial campaign that had
term, in order to achieve its medium to longer-term
been initiated by the AMIEU in support of its
industrial objectives. In political parlance, the
enterprise bargaining claims, with its own brand of
leadership of AMH was prepared to crash through
direct action. The Company decided to only work to
or crash. Furthermore, it would not be the recipient
the level of minimum tally at some of its plants.
of any significant overt assistance from its
Furthermore, the Company attempted to implement
competitive rivals in any industrial confrontation
its proposed changes to work practices. The AIRC
with the AMIEU. Other meat export companies had
subsequently endorsed trials of these proposed
to choose the extent to which they were prepared to
working arrangements, but with some modifications
concede to the industrial claims of the AMIEU in the
such as guaranteeing the involvement of the AMIEU
round of enterprise bargaining, which was initiated
in the process. The impact of these developments
by that trade union in 1994. Of course, this did not
was greatest at the Rockhampton Abattoir, where the
imply that they were unsympathetic to the industrial
plant had been closed and the workforce dismissed
relations agenda being advanced by AMH. It
for a period. Indeed, as the dispute dragged on, the
certainly did not imply that any success that was
composition of the workforce changed at that
achieved by AMH in its campaign would be
meatworks, and the AMIEU held fears that the
restricted to the operations of that particularly
Company was preparing to engage a completely new
Company alone. Pattern bargaining in the meat
workforce. By the middle of 1995, the previously
industry is not the sole prerogative of the trade
aggressive Union stance in this round of enterprise
unions. There were plenty of interested observers on
bargaining had given way to a more defensive
the sidelines awaiting the outcome of this particular
industrial position. Nonetheless, the AMIEU
contest. Indeed, the first round of enterprise
continued to oppose AMH demands at the Fitzroy
bargaining that was conducted in the meat industry
River Abattoir to replace the tally system of
since the AIRC had laid down its principles for such
incentive payments, increase the number of hours to
matters in 1991, would quickly develop into a
be worked in the working week, and to extend the
classic industrial trial of strength in the pattern of
working week to include Saturdays. This industrial
the old industrial relations. It could well prove to
position could not be sustained over time (AIRC

1995b; AIRC 1995c; Stewart 1998).
Ballots of the meatworkers who were employed at
the Rockhampton plant revealed a workforce, which
was divided on the question of agreeing to AMHs
new working arrangements. Eventually however
(and for whatever reasons), a majority of the
workforce came to support the working of the
Companys proposed terms and conditions at the
Fitzroy River Abattoir. The rejection by the AMIEU
of this employee endorsement resulted in the
employer seeking to have a non-union enterprise
agreement approved by the AIRC. The Commission
declined to support this position, because of its
reservations with respect to the process by which
this agreement had been formulated and agreed at
plant level. Nonetheless, by this particular stage of
the dispute all of the parties were probably amenable
to an agreement being reached. This task was
accomplished at plant level, and between the officers
of AMH and the AMIEU, before an enterprise
agreement covering the Fitzroy River Abattoir (and
two other AMH plants in Queensland) was certified
by the AIRC in April 1996 (AIRC 1995b; AIRC
1995c; AIRC 1996; Stewart 1998).
Conclusion
In terms of industrial disputation, the process of
enterprise bargaining has proceeded more smoothly
at AMH plants in Queensland since 1996. Indeed,
with respect to enterprise bargaining in particular
and industrial relations in the Australian meat
processing industry in general, the level of
disputation has declined dramatically. As far as
working practices are concerned, the evidence
indicates that the previous sticking point of the tally
systems has diminished significance in the industrial
relations scheme of things for the time being. In a
recent award simplification decision, the Full Bench
of the AIRC held that these incentive payment
systems should be deleted (save in two exceptional
circumstances) from the principal industry award. In
most cases then, they are now no longer an
allowable award matter (Stewart 1998; AIRC 1999;
Field 1999).
Be that as it may, these events do not suggest that
incentive schemes will be of no further import in the
industrial relations history of the industry. Neither
do they prove that there has been a fundamental
transformation of industrial relations in the
industry. More evidence, and a broader analysis of
changes to working practices and the terms and
conditions of employment within the meat
processing sector is required before this conclusion
can be reached. The causes of industrial conflict in
the industry remain present within the competitive
structure of the capitalist economic system, and the
employment relationships and tensions that such

competitive pressure inevitably create. However, at
this particular point in time, these competitive
pressures have forced the parties to cooperate with
each other for their mutual survival and economic
viability. At other times in the long history of
industrial relations in the meat industry, these
pressures have exacerbated the conflict between the
parties, and provided each one of them with the
opportunity (which they have taken), to bargain
from a position of strength (Walker 1970; Stewart
1996; AIRC 1999).
Indeed, in the case of enterprise bargaining at the
Fitzroy River Abattoir from 1994 until 1996, both
the AMIEU and AMH attempted to economically
coerce each other into conceding their respective
industrial demands. The pattern of bargaining was
part of the old rather than the new industrial
relations. Furthermore, the pattern of relative
industrial turbulence being followed by a period of
relative industrial calm is normal for the industry
(Stewart 1998; Stewart 1999). Cooperation and
conflict have always existed side by side in
industrial relations (Keenoy & Kelly 1998). It is the
historically low levels of disputation and the weaker
plant level strength of the AMIEU (this is
particularly the case at the Rockhampton plant),
which may represent the beginning of longer-term
change in the adversarial industrial relations
culture of the industry (Stewart 1998; AIRC 1999).
Since the most recent round of tribunal supervised
enterprise-based productivity type bargaining and
award restructuring commenced in the 1990s, there
have been changes in the practice of industrial
relations in the meat processing industry in
Queensland. An indication of the nature of such
changes can be deduced from a study of the
enterprise agreements, which covered three AMHowned plants (including Rockhampton) in that
particular State in 1996. These three certified
agreements revealed changes to shift systems and
working hours, as well as the replacement of the old
tally-based wage rates with new classification based
wage rates. Other prominent changes included an
important role for works-based consultative
committees, and the employment of workers on a
weekly basis (AIRC 1996; Stewart 1998; AIRC
1999).
In large part, these changes have arisen as a result of
the strategic choices taken by public policy
decision makers to confront Australias economic
problems by improving productivity at the
workplace level, by means of the process of
enterprise bargaining. The implementation of these
changes has also been facilitated by the reemergence of employer power in the labour market.
This development is best evidenced by the success

achieved by AMH during the course of enterprise
Keenoy, T. & Kelly, D. (1998) The employment
bargaining at its Queensland works, particularly at
relationship in Australia, 2nd edn, Harcourt
the Fitzroy River Abattoir. In carrying the reform
Brace, Sydney.
standard for employers in the industry (perhaps
Kitay, J. (1997) Changing patterns of employment
inadvertently), the strategic choices that were made
relations: theoretical and methodological
by the Company were influential in determining the
framework for six Australian industry studies,
direction and outcomes of enterprise bargaining in
in Changing employment relations in Australia,
the industry in the 1990s. To a certain extent at least,
eds J. Kitay & R.D. Lansbury, Oxford
AMH pushed out the industrial relations
University Press, Melbourne.
envelope, and ensured that the events of 1994 to
Kitay, J. & Lansbury, R.D. eds (1997) Changing
1996 probably constituted a watershed in the
employment relations in Australia, Oxford
industrial relations history of the Queensland meat
University Press, Melbourne.
processing industry. However, the historical odds
Kochan, T.A., Katz, H.C. & McKersie, R.B. (1986)
favour this being but one of a number of such
The transformation of American industrial
watersheds in the industrys history. Furthermore,
relations, Basic Books, New York.
each one of these watersheds has resulted less in a
Stewart, G. (1996) The causes of industrial conflict
transformation of industrial relations, than it has in
in the Australian meat industry, in Futures for
a realignment of the balance of industrial power
Central Queensland, eds D. Cryle, G. Griffin &
(Bamber & Lansbury 1998; Keenoy & Kelly 1998;
D. Stehlik, Central Queensland University.
Stewart 1998; Stewart 1999). Time alone will tell.
Stewart, G. (1998) Enterprise bargaining in the
Australian meat processing industry: the case
of the Fitzroy River Abattoir in Rockhampton
References
1994-1996, paper presented at 12th AIRAANZ
(The Association of Industrial Relations
Meat Industry Inquiry - s.107 and 108
Academics of Australia and New Zealand)
references to Full Bench, Decision 561/92,
Conference, Wellington, New Zealand.
Print K3313, 17 June, Melbourne.
Stewart, G. (1999) An historical overview of
Australian Industrial Relations Commission (1995a)
industrial relations in the Central Queensland
Meat workers: Meat industry, Decision 764/95,
meat export industry, School of Organisational
Print M0578, 31 March, Melbourne.
Behaviour and Human Resource Management
Australian Industrial Relations Commission (1995b)
Research Seminar 16 June, Griffith University,
Appeals against orders, Decision1774/95, Print
Brisbane.
M4078, 3 August, Melbourne.
Walker, K.F. (1970) Australian industrial relations
Australian Industrial Relations Commission (1995c)
systems, Harvard University Press, Cambridge,
Enterprise flexibility agreement, Decision
Massachusetts.
2667/95, Print M7764, 15 December, Sydney.
Certification of agreements, Decision 460/96,
Gordon Stewart
Print N1219, 26 April, Melbourne.
c/- School of Management
Faculty of Business and Law
Central Queensland University
Federal meat industry decision, Decision
Rockhampton, Queensland, 4702, Australia.
1090/99, Print R9075, 24 September, Sydney.
E-mail: g.stewart@cqu.edu.au
Bamber, G.J. & Lansbury, R.D. eds (1998)
Phone: 61-7-49309448;
Fax: 61-7-49309700
International and comparative employment
relations: A study of industrialised market
economies, 3rd edn., Allen & Unwin, St
Leonards.
Deery, S., Plowman, D. & Walsh, J. (1997)
Industrial relations: A contemporary analysis,
McGraw-Hill Australia, Roseville.
Dunlop, J.T. (1958) Industrial relations systems,
Southern Illinois University Press, Carbondale.
Fellows Medlock & Associates (1995) Review of
progress in workplace reform in the export
meat processing sector, March.
Field, N. (1999) Tally system in meat industry
scrapped, The Australian Financial Review,
25-26 September, p. 4.
Industry Commission (1994) Report no. 38: meat
processing, 2 vols, Australian Government
Publishing Service, Melbourne.
Career management in the new economy: Surfing the turbulent waves

of change
Dr Mohan Thite
Abstract
This paper identifies major changes to
organisational structure in the new economy and
assesses their impact on career management. It
focuses on the implications of change on individuals
and surveys the current literature on the likely set of
skills necessary to successfully manage the career
change process. In particular, it advocates the need
for self assessment and management of strengths,
personality orientation and life style choices.
Keywords
Career management; individual career planning
Overview
Career
management
researchers
seem
to
unanimously agree that the context and contents of
career management process have witnessed
considerable changes in recent times in direct
response to environmental upheaval (Alfred et all,
1996, Nicholson, 1996, Brousseau et all, 1996). The
change process is driven by globalisation, hypercompetition, information technology, life style
changes etc. Organisational responses include
restructuring, delayering, strategic collaboration,
organic structures, life-long learning orientation,
unit-level empowerment and so on. To add to the
pandemonium, the environmental changes and
organisational responses are in a state of constant
flux, making it difficult for researchers to diagnose
the process and prescribe solutions. It needs to be
emphasised that as of today the identification and
analysis of the change process is more of crystal
gazing than empirical as the change process from the
old to the new economy is still underway and
remains unpredictable.
The Human Resource Management function is
similarly subject to several changes, such as increase
in part-time, casual and contract employment,
outsourcing, global and multi-cultural workforce,
self-directed work teams, multi-rater performance
appraisal,
performance-based
remuneration,
portfolio careers, and enterprise-based employee
relations.
As can be expected, the career management process

is caught in the whirlpool of environmental,
organisational, and HRM changes. Accordingly,
these changes have far-reaching consequences for
both organisations and individuals in managing
careers. The foremost change is the shift in career
management responsibility from the employer to the
employees (Whymark and Ellis, 1999, Hall, 1996).
In some extreme cases, employers have almost
abandoned any responsibility for managing the
careers of their employees. However, there is a
dramatic increase in their expectations of their
employees, in terms of skill requirements, both
technical and behavioural. It is as if employers have
adapted a help us but help yourself attitude. One
of the major ironies of the new career management
situation lies in the fact that the career-conscious
employee is being asked to offer more and more,
while the employer is in no position to offer the
scale and the kinds of rewards that were available in
the past (Whymark and Ellis, 1999).
To their dismay, individuals have noticed that the
formal and informal aspects of their employment
contract have changed considerably, often to their
disadvantage. The traditional bond between the
employer and employee seems to be breaking.
Whymark and Ellis (1999) argue that traditionally,
employment relationship was characterised by a
clear psychological contract. Employers expected
loyalty, respect for rules, and commitment in return
for job security, steady career progression, and
training & development. But today the relationship
between the parties is viewed more as a short-term
economic exchange arrangement instead of a longterm, mutually beneficial commitment. Employers
seem to be adopting here-and-now attitude to
career management as against the long-term focus.
Bereft of the life-support from employers, many
individuals are clue-less on how to manage their
careers. Their predicament is aptly described by
Gunz et all. (1998): it is hard for someone being
swept downstream in a fast-moving river to make
sense of where they are, let alone where they are
going. At the same time, there is a growing
recognition amongst individuals, particularly the
professionals, that from now on, their careers have

to be managed by themselves with little or no help
Handy (1996) suggests that organisations are taking
from employers. This realisation brings them to the
on a shamrock configuration whose three levels
next question: what is the best way to manage ones
comprise core, contract and temporary employees.
career? What are the skills necessary to successfully
Core employees are those central to the core
manage ones career?
competencies of the organisation. Contract
employees are the new portfolio careerists
Before analysing individual response to the
qualified, skills-oriented individuals with a portfolio
changing framework of career management, it is
of skills and clients. Temporary employees are those
necessary to look at the macro developments in the
individuals needed for specific, lower skilled tasks
environment, at the general and organisational
and are employed on a need basis.
levels, affecting the career management process.
The rise and rise of temporary employment is
another major feature of the new economy. It is
Changing face of career management
estimated that the temporary services industry has
In response to hyper-competition, organisations are
expanded over 360 percent since 1982 (Boroughs,
losing their traditional sources of dominance, such
1994). Hippel et all (1997) suggest that the use of
as cost and quality, timing and know-how, financial
temp. workers has many implications for
muscle and are realising that the only enduring
individuals careers. Opportunities for promotion
advantage results from the ability to generate new
may decrease, career paths will be less defined, job
advantages all the time and every time (Quinn et all,
duties will be more open-ended, job descriptions
1996).
Accordingly,
hyper-competitive
will be less clear, and the perquisites that come with
environments call for fundamental changes in
seniority will be more difficult to secure.
organisational structures and designs. These changes
seem to have a major impact on the process of career
The most important implication of the forms and
management.
features of the new economy on career management
process is that the individual is in full charge of
According
to
Nicholson
(1996),
career
ones own career. Hall (1996) describes the career of
development in the 21st century will take place
the 21st century as protean, a career that is driven
against a background of unprecedented variety of
by the person, not the organisation, and that will be
organisational forms, as old and new models persist
reinvented by the person from time to time, as the
side by side. Like building blocks, the new
person and the environment change. The second
organisational forms, such as networks, are
major implication is that the individual career will
embedded in larger organisational structures that are
be in constant state of flux and will change
still at least partially bureaucratic, posing a key
directions many times during the career span of an
challenge to top management to integrate these
individual. Change in career directions also mean
different forms into a coherent whole (Quinn et all,
change in skill components, skill levels, authority
1996).
and responsibility levels, income levels and so on.
Cianni and Wnuck (1997) predict that the employees
According to Brent et all (1996), 21st century
in the 21st century will periodically backtrack in
organisations will have a cellular structure. Like
their careers, moving from expert back to novice as
living cells, they (strategic business units, selfthey are required to have new competencies that
managing teams etc) can act independently but by
may very well be in areas unconnected to their
networking with other to share common knowledge
personal preferences.
and information, akin to human DNA, they will
learn, grow, and adapt to uncertain environment.
The macro-level changes in the environment as
Within such cellular organisations, members take
above highlight the serious limitations of traditional
full charge of their careers and develop their careers
framework of career management. Therefore, Gunz
around an agreed set of norms for self-governance
et all (1998) find the metaphor of career ladder
and professional allegiance.
limiting, in many ways. They assert that ladders
allow movement only up or down but it is clear that
There seems to be a discerning shift in organisations
careers are not. Today it is more like a jungle gym
from position-centred to portfolio-centred. As
moves can be upwards, sideways, downwards,
described by Templer and Cawsey (1999), under
diagonal, or in any direction that the jungle gym
portfolio-centred career development, the contract
allows.
output is identified, the matching portfolio of skills
needed to complete the contract are specified,
Individual Response to Career
individuals with those skills are located in the HR
Management
Information System, the contract is offered and then
managed. This shift of focus requires a parallel shift
Considering that the waves of change in career
in career development roles and activities.
management are unpredictable and turbulent,
individuals need to learn how to surf the waves
successfully and keep their careers afloat and scale

new heights.
It is quite clear that the most important skill
necessary to successfully navigate ones career in
the new economy is self-management. While
individuals can still rely on many enabling tools,
such as the internet (Koonce, 1997) and virtual
career development centres (Warner and Keagy,
1997), it is the management of self that matters the
most. This requirement is in line with the growing
trend in empowerment within organisations as a
substitute to command and control by the
management.
Schein (1996) argues that self-reliance and selfmanagement are becoming dominant requirements
for future career management. Similarly, Durcan and
Oates (1995) state that the aspiring senior manager
may have to face up to a critical personal analysis of
skills and abilities more than ever before, in order
that an effective assessment of the critical moves can
be made. Drucker (1999) adds, most people will
have to learn to manage themselves. They will have
to learn how to place themselves where they can
make the greatest contribution, how to stay alert
throughout the working life, and learn how and
when to change their work patterns.
Current literature on career management indicates
that self-management of career involves several
steps. It includes
self-assessment of strengths in technical and

behavioural areas,
development and marketing of those strengths

as core competencies,
identifying personality orientations, such as

opportunity vs. security, safety vs. risk, team
work vs. independent work, technical vs.
managerial work, big vs. small organisation,
autonomy vs. compliance
defining ethical dimensions, and
due importance to personal choices and

preferences and at the same time aligning them
with environmental requirements
According to Drucker (1999), knowing where one
belongs is the key to career success. He argues that
successful careers are not planned. They develop
when people are prepared for opportunities because
they know their strengths, their method of work, and
their values. Knowing where one belongs can
transform an ordinary person hard-working and
competent but otherwise mediocre- into an
outstanding performer.
Arthur and Rosseau (1996) offer new career lexicon
for the 21st century based on the following pointers:
knowing
your
situation,
leveraging
your
competencies, extending your collaborations,

broadening your accountabilities, and cultivating
career resiliency.
Flexibility in terms of skills, position, location of
work and timing seems to be another key criteria for
individuals to succeed in the new economy.
Brousseau et all (1996) suggest that people need to
go anywhere, at any time, and at a moments notice,
to do anything.
Schein (1996) traces the changes in career
management in terms of career anchors. He
advocates that most people form a strong selfconcept, a career anchor that holds their internal
career together even as they experience dramatic
changes in the external career. Scheins research in
the mid-1970s showed that most peoples selfconcepts revolved around five categories:
autonomy/independence,
security/stability,
technical-functional competence, general managerial
competence, and entrepreneurial creativity. His
follow-up studies in the 1980s revealed three
additional anchor categories: service or dedication to
a cause, pure challenge, and life style.
The increasing importance of life style issues in an
individuals career management is further supported
by Wilson and Davies (1999). They suggest that
faced with reduced levels of employment security,
managers are redefining careers in terms that now
include references to life style and the achievement
of a balance between the personal, domestic and
employment aspects of their lives. For some
managers, the definition of self is becoming less
focused upon employment and more related to
lifestyle. This trend may signify an attempt by
individuals to assert their authority over their
careers.
Keeping in line with the above literature,
Montebello (1999) proposes a 3-step model for
career development: First, look inward to gain
insight in to strengths and development needs using
self-assessment tools and feedback. Next, look
outward to align career goals with department,
company, and industry needs and realities. Finally,
look forward to establish a development plan with
goals, action plans, and implementation schedules.
In conclusion, many may argue that the time for new
economy is yet to come but the signs are clear as
globalisation and e-commerce grow by leaps and
bounds. Accordingly, organisations are quick in
adapting themselves to the changing environment
and are experimenting with new forms of structure
and designs. Similarly, individuals need to urgently
re-examine their career paths and options and
reposition themselves to face the uncertain future.
384

century. The Academy of Management
References
Executive, 10(4):80-88.
Arthur, M.B. and Rosseau, D.M. (1996) A career
Templer, A. J. & Cawsey, T. F. 1999. Rethinking
lexicon of the 21st century. The Academy of
career development in an era of portfolio
Management Executive, 10(4):28-39
careers. Career Development International,
Boroughs, D.L. (1994) The new migrant workers:
4(2)
Part-time and temporary job holders toil for
Warner and Keagy (1997). Creating a virtual career
low pay and limited benefits. Business gives in
development center. HR Focus, 74(10)
to temptation. U.S. News & World Report, July
Wilson, T. and Davies, G. (1999) The changing
4.
career strategies of managers. Career
Brent, A., Snow, C., Miles, R. (1996) Characteristics
Development International, 4(2)
of managerial careers of the 21st century, The
Whymark, K. & Ellis, S. 1999. Whose career is it
Academy of Management Executive, 10(4):17anyway? Options for career management in
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flatter
organization
structures.
Career
Brousseau, K. R., Driver, M. J., Eneroth, K. &
Development International, 4 (2).
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Realigning organizations and individuals. The
Academy of Management Executive, 10(4):52Dr Mohan Thite
66.
Griffith University
Cianni, M. and Wnuck, D. (1997) Individual growth
Nathan, QLD 4111
and team enhancement: Moving toward a new
Australia
model of career development, The Academy of
Phone: (+61 7) 3875 7643
Email: M.Thite@mailbox.gu.edu.au
Desler, G. 1999. How to earn your employees
commitment. The Academy of Management
Executive, 13, 2:58-67.
Drucker, P. 1994. The age of social transformation.
The Atlantic Monthly, November. pp.53-80.
Drucker, P. (1999) Managing oneself. Harvard
Business Review, 77(2)
Durcan, J. and Oates, D. (1995) Career paths for the
21st century: How to beat job insecurity,
Century, London.
Gunz, H. P., Jalland, R. M. & Evans, M. G. 1998.
New strategy, wrong managers? What you
need to know about career streams. The
Academy of Management Executive, 12(2):2137.
Hall, D.T. (1996) Protean careers of the 21st
century. The Academy of Management
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Handy, C. 1996. Beyond Certainty. Harvard
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Heneman, R.L. and Skoglind, J.D. (1997)
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employees both win? The Academy of
Koonce, R. (1997) Using the internet as a career
planning tool. Training & Development, 51(9)
Montebello, A.R. (1999) Promoting a development
culture in your organisation: Using career
development as a change agent. Personnel
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Schein, E. H. 1996. Career anchors revised:
Implications for career development in the 21st
Attachment links to team functioning and leadership behaviour

Ashlea Troth and Jeff Miller
general, and to work relationships specifically, need
to be considered to optimise team effectiveness.
Abstract
The purpose of this paper is to examine the utility of
attachment theory in understanding and predicting
aspects of team functioning and leadership
behaviour in the workplace. Specifically, this paper
puts forward several predictions regarding the
influence
of
an
individuals
attachment
characteristics on team functioning behaviours. It
also considers attachment theory as a framework for
exploring
optimal
team
composition
in
organisations.
Finally, predictions are made
regarding attachment effects on leadership style and
leader-empowering behaviours. Possible future
research directions, to empirically test the
theoretical assertions put forward, are also
considered.
Keywords
Attachment; Team functioning, TransactionalTransformational Leadership; Empowerment
Introduction
The literature shows that organisations are
increasingly utilising and depending upon selfmanaged but fully led multifunctional teams to get
tasks done effectively (Bass & Avolio, 1998). The
current paper introduces attachment theory as a
framework to explore this trend and to better
understand and predict some relational aspects of
team functioning and leadership behaviour.
Current attitudes emphasise the importance of team
work within organisations, noting several
advantages over working alone (e.g., increased
productivity and employee satisfaction: Coch &
French, 1948; Macy, Norton, Bliese & Izumi, 1990;
Trist, 1969; Walton, 1965). Scholars who have
explored team functioning within organisations have
identified several characteristics of effective teams
(Carlopio, Andrewartha & Armstrong, 1997). These
characteristics
include
interdependent
team
members, sharing of responsibility, and the
provision of support and encouragement to team
members. Given these characteristics, it is clear
that team work is inherently relational in nature.
Thus, team members orientations to relationships in
A leaders transformational style, and their

propensity and ability to utilise empowerment
behaviours, is also examined in the current paper.
Indeed, the research increasingly shows that
transformational leadership and the ability to
empower employees has important consequences for
teams. These leadership qualities appear to increase
quality performance and promote decision-making,
research, innovation, and change in teams (Bass &
Avolio, 1998; Burnington & West, 1995; Burpitt &
Bigoness, 1997; Fuller, Morrison, Jones, Bridger &
Brown, 1999; Howard, 1998).
Transformational leaders inspire employees to
transcend their own interests and instead pursue the
higher ideal of the organisations mission (Carless,
1998). The concept of empowerment proposes that
leaders hand down decision-making responsibility to
those close to internal and external customers, and
that employees take charge of their own jobs
(Howard, 1998). It is important to emphasise that
both these leadership qualities stress the idea of
mutual reliance, shared responsibility, effective and
appropriate communication, trust and dependency in
leader-subordinate relations (Bass & Avolio, 1998;
Howard, 1998). Indeed, by adopting a relational
theoretical framework, the current paper takes
special note of the relational mechanisms that must
take place between a leader and his or her followers
to ensure transformational leadership and
appropriate empowerment.
Attachment theory (Bowlby, 1969, 1973, 1980) is
used to understand and predict the salient relational
aspects of team functioning and leadership discussed
above. A large body of empirical research already
supports the usefulness of attachment theory as a
conceptual
framework
for
understanding
interpersonal dynamics and interaction processes
within close non-work adult relationships (e.g.,
Feeney & Noller, 1990; Hazan & Shaver, 1987).
Since its introduction into the psychological
literature over three decades ago, attachment theory
has become, and remains, one of the most widely
researched theories of interpersonal relationships.
386
Attachment theory proposes that, based on our

experiences in social interactions with significant
others across the life-span, we develop expectations
(working models) about the worthiness of self and
the responsiveness of significant others that are
linked to relatively stable and enduring patterns of
relationship interactions (Bowlby, 1973; Collins &
Read, 1994). That is, the working models created
from
our
relationship
experiences
across
development become core features of our
personality and are used to stimulate and predict the
behaviour of others and to plan our own behaviour
in future exchanges (Collins & Read, 1994; Hazan &
Shaver, 1987).
Attachment researchers have delineated four distinct
attachment patterns based on the combination of the
working model of self (positive, negative) and the
working model of others (positive, negative) (see
Figure 1) (Bartholomew, 1990; Bartholomew &
Horowitz, 1991). Essentially, the model of self
reflects the extent of dependence on others
acceptance (or anxiety about abandonment) while
the model of other reflects the extent of avoidance in
close relationships (or avoidance of intimacy).
Figure 1 shows that individuals with positive models
of others (non-avoidant) may be classified as either
secure or preoccupied, depending on their degree of
dependence and sense of self-worth. On the other
hand, those with negative models of others
(avoidant) may be classified as dismissing or fearful,
depending on their degree of dependence. Both
avoid close relationships, however, fearful
individuals do so because they feel vulnerable to
rejection while dismissing individuals do so because
they emphasise self-reliance and autonomy. The
prototypical descriptions of the four styles are shown
in Table 1.
Table 1 Prototypical descriptions of four attachment
styles
Secure: It is relatively easy for me to become emotionally
close to others. I am comfortable depending on others and
having others depend on me. I dont worry about being alone
or having others not accept me.
Dismissing: I am comfortable without close emotional
relationships. It is very important to feel independent and selfsufficient, and I prefer not to depend on others or have others
depend on me.
Preoccupied: I want to be completely emotionally intimate
with others, but I often find that others are reluctant to get as
close as I would like. I am uncomfortable being without close
relationships, but I sometimes worry that others dont value
me as much as I value them.
Fearful: I am somewhat uncomfortable getting close to
others. I want emotionally close relationships, but I find it
difficult to trust others completely or to depend on them. I
sometimes worry that I will be hurt if I allow myself to
become too close to others.
Source: Bartholomew and Horowitz (1991)
Model of Other (Avoidance)
Attachment theory
Positive
(Low)
Negative
(High)
Model of Self (Dependence)

Positive
Negative
(Low)
(High)
Secure
Preoccupied
Comfortable with
Preoccupied
Intimacy and
Ambivalent
Autonomy
Overly dependent
Dismissing
Denial of
attachment
Dismissing
Counter-dependent
Fearful
Fearful of
attachment
Avoidant
Socially avoidant
Figure 1 Four-Group Model of Adult Attachment

Source: Bartholomew (1990)
In line with theory, there is large body of empirical
evidence that differentially links the four attachment
patterns with past relationship experiences and
current relationship functioning.
For instance,
research consistently shows that individuals who
experience relationships with others as supportive,
trustworthy and responsive tend to develop a secure
attachment. In turn, secure individuals tend to view
others as largely responsive, trustworthy, and
reliable, and make effective use of others when they
encounter difficulties (Collins & Read, 1994; Feeney
& Noller, 1991; Hazan & Shaver, 1987).
The
literature also demonstrates that, based on their
positive relationship experiences, secure individuals
tend to have higher levels of self-esteem and engage
in effective and appropriate interaction behaviours.
For example, secure people display higher levels of
self-disclosure with interaction partners (Mikulincer
& Nachshon, 1991), engage in more assertion and
listening, and have a greater propensity to engage in
constructive problem-solving strategies and to utilise
integrative styles of conflict resolution (Feeney,
Noller & Hanrahan, 1994).
By contrast, individuals who have experienced
relationships as non-supportive, untrustworthy or
unresponsive are likely to display insecure patterns
of attachment. For instance, preoccupied adults
report viewing others as unreliable and inconsistent
and find it hard to get as close to others as they
would like to. They also lack self-confidence and are
worried
about
relationship
rejection
and
abandonment. Furthermore, although they are eager
to get involved in close relationships, they report
low satisfaction, and relatively high levels of
frustration, anger and anxiety in their relationships
(Hazan & Shaver, 1987). In terms of interaction
functioning, they tend to engage in inappropriate
disclosure (Bartholomew & Horowitz, 1991;
Mikulincer & Nachshon, 1991) and high levels of
coercion during conflict resolution and problem
solving (Feeney et al, 1994).
Preoccupied
individuals also engage in emotion-focused coping
strategies in times of stress (Mikulincer & Florian,
1995). Finally, research shows avoidantly attached
individuals (fearful and dismissing) evade conflict
and constructive problem solving and evince low

levels of self-disclosure to maintain emotional
distance from others.
However, while fearful
individuals have low self-esteem and avoid close
relationships to prevent getting hurt, dismissing
individuals deny the importance of close
relationships because they value self-reliance and
independence.
Given the demonstrated utility of attachment theory
as a conceptual framework for understanding
interpersonal dynamics and interaction processes
within intimate adult relationships, the current paper
argues that attachment theory will provide a valuable
structure to understand and predict aspects of
relational functioning at work, such as team and
leadership behaviours. To date, few researchers
(Burge, Hammen, Davila & Daley, 1997;
Doverspike, Hollis, Justice & Polomsky, 1997;
Hardy & Barkman, 1994; Hazan & Shaver, 1990;
Johnston, 2000; Kahn & Kram, 1994; Mikulincer &
Florian, 1995; Raskin, Kummel & Bannlister, 1998)
have attempted to understand work place dynamics
and functioning from an attachment theoretical
perspective. The first and most comprehensive
research that utilised attachment theory in an
organisational context attempted to find links
between adult employees attachment patterns and
their work styles (Hazan & Shaver, 1990). Findings
from this study revealed evidence of attachmentrelated differences in feelings about co-workers, and
preferences regarding interacting with others in
work settings. Specifically, secure attachment was
associated with more positive feelings about coworkers, and preferences for working with others.
Thus, the utility of conceptualising work place
dynamics within an attachment theoretical
perspective has been given some support.
Attachment theory is also useful in that it goes
beyond the individual level of functioning to
consider how individuals with different working
models of attachment will combine, interact with,
and perceive each other. That is, attachment theory
allows predictions to be made about whether an
individual with a particular attachment style is more
or less likely to function optimally with an
individual who possesses similar or different
attachment characteristics. The literature tends to
show that secure-secure couples report more optimal
functioning that secure-insecure couples, who in turn
report better outcomes than insecure-insecure
couples (Cohn, Silver, Cowan, Cowan & Pearson,
1992) For example, Senchak and Leonard (1992)
found that two secure partners in a relationship
report better adjustment, less aggression and less
withdrawing conflict than other couples. The current
paper believes this research may have important
implications for team composition and functioning.
Later, consideration is given as to how teams
comprising individuals with varying attachment

characteristics may differ in terms of work
functioning. To date, this has not been examined in
the literature.
Team Functioning and Attachment Links

Working together in teams is an important and
inevitable part of organisational life. Within work
teams, people integrate diverse skills to optimise
resources in the pursuit of a common goal (West,
1996). As mentioned earlier, current attitudes
towards this issue suggest that working in teams
offers several notable advantages over working
alone. For example, team work has been linked to
improvements
in
numerous
organisational
effectiveness variables, including productivity,
product quality and employee morale (Coch &
French, 1948; Macy et al., 1990; Trist, 1969;
Walton, 1965).
Academic interest in the functioning of groups
within organisations has resulted in a vast body of
literature, which has explored a range of important
issues, such as group development, effectiveness and
structure, as well as both intragroup and intergroup
processes (e.g., Napier & Gershenfeld, 1999; West,
1996). Scholars investigating these topics have
identified several characteristics of effective teams
(Carlopio, Andrewartha & Armstrong, 1997; West,
1996). First, in effective teams, members work with
one another to accomplish shared objectives. Thus,
involvement
in
a
work
team
requires
interdependence. Second, teams have an identity as
a work group with a specific organisational function.
Third, team members generally have a clearly
defined role within the team. Fourth, team members
share responsibility for attaining goals. Finally,
team members generally provide support and
encouragement to one another.
As can be seen, team work is inherently relational.
That is, the very nature of teams is such that
members are required to interact with each other.
Thus, team members orientations to relationships in
general, and to work relationships specifically, need
to be considered to optimise team effectiveness.
Given the characteristics of effective teams outlined
above, several extrapolations can be made. First,
due to the interdependent nature of team work, and
the importance of shared responsibility, team
members must feel safe depending on one another.
For instance, they must feel that others can be relied
upon to fulfil their work responsibilities and
obligations.
Second, given the emphasis on
providing support and encouragement, team
members must trust their co-workers to be
supportive and helpful. Finally, given the reasons

outlined above, team members must themselves be
given that the leader-subordinate relationship may
dependable, trustworthy, and supportive.
be characterised as one of the more important social
relationships in adult life (Doverspike et al, 1997),
Furthermore, some evidence suggests that the value
the current paper proposes that the attachment
of teams is contingent upon moderating factors (e.g.,
models that individuals hold of relationships, will be
Neuman, 1991; Pearce & Ravlin, 1987).
For
associated with their leadership style and, more
example, Neuman (1991) suggests that team
specifically, their propensity and approach to
members personality characteristics can influence
empower employees.
team performance; hence, team members need to be
specifically recruited based on their capacity to
To date, only a couple of scholars have attempted to
operate effectively within a team context.
examine attachment links to leadership style.
Therefore, it is necessary for organisations to ensure
Doverspike et al (1997) examined attachment links
appropriate team composition so that the potential
to individuals scores on the Least Preferred Coadvantages of using teams within organisations are
Worker scale (LPCW: Fiedler, 1974). High scores
realised.
on the LPCW indicated a leaders relatively strong
relationship motivation in a social context at work
Given the relational nature of team work, attachment
while low scores suggested the leader was driven by
theory provides a useful conceptual framework for
task motivation. The researchers found secure
understanding team functioning. Two important
individuals had significantly higher LPCW scores
questions are raised concerning the association
than avoidant persons and concluded that the
between attachment patterns and team functioning.
attachment mental model regarding preferred
First, are some individuals more likely than others to
relations with others is related to leadership style in
perform better within teams, depending on their
terms of a leaders relationship versus task
attachment characteristics? Second, are particular
orientation. In line with this, Mikulincer and Florian
combinations of attachment patterns within a team
(1995) assessed the impact of attachment style on
related to more effective team functioning?
peer evaluations of an individuals leadership ability
in a military setting. They found that secure and
A number of specific hypotheses can be proposed.
avoidant persons received more nominations for
However, because this theory has not been widely
leadership positions from their peers than
applied in organisational settings, these hypotheses
preoccupied persons. The difference between secure
are tentative. First, those with a secure pattern of
and preoccupied persons was expected and was
attachment may perform better within teams and get
consistent with previous findings based on selfmore satisfaction from working in a team; these
reports of social competence (e.g., Hazan & Shaver,
people view others as generally reliable and
1990). However, the finding regarding avoidant
trustworthy, and are themselves generally reliable
attachment links with leadership nominations was
and supportive.
unexpected. The finding led the researchers to
conclude that, although the tendency of avoidant
Second, individuals with a preoccupied attachment
persons to maintain social distance may be
pattern may be more likely to experience higher
negatively evaluated in relationship focused
levels of frustration and anxiety from working in a
workplace interactions, avoidant individuals in task
team; these people desire to work closely with
related episodes may be capable of providing
others, but have trouble trusting and relying on
concrete assistance and advice which may lead to a
others. Finally, both groups of avoidant attachment
more positive evaluation of leadership ability. It is
patterns (i.e., fearful and dismissing) may be less
important to note that Mikulincer & Florien (1995)
likely to perform well and may be less likely to
did not distinguish between fearful-avoidant and
enjoy working in a team.
However, their
dismissing-avoidant individuals.
psychological motivations for these preferences will
be different.
While fearful individuals lack
In terms of the current paper, a thorough review of
confidence and thus, may doubt their ability to
the leadership literature revealed that researchers are
contribute to team functioning, dismissing
increasingly turning towards transformational
individuals may emphasise the importance of selftheories of leadership to increase their understanding
reliance and independence, and downplay the
of leadership functioning and to predict employee
importance of teamwork.
and organisational effectiveness due to leadership
behaviour (e.g., Bass & Avolio, 1998; Conger,
1999). As discussed earlier in the paper, there is
evidence to suggest that transformational leadership
Leadership Behaviour and Attachment
is linked to positive organisational and employee
Links
outcomes.
Transformational leadership is an
The important role of leadership in terms of team
expansion of transactional leadership. Transactional
functioning and effective organisational outcomes
leadership emphasises the exchange that takes place
was discussed at the beginning of this paper. Indeed,
between leaders and subordinates (i.e. the leader

discussing with others what is required and
specifying the conditions and rewards they will
receive if they fulfil those requirements). In addition
to this, transformational leaders stimulate interest
among employees to view their work from new
perspectives; generate awareness of the mission of
the team and organisation; develop employees to
higher levels of ability and potential; and motivate
their followers to look beyond their own interests to
those of the group.
According to Bass (1985), transformational leaders
engage in behaviours that comprise the following
four dimensions: (1) Idealised influence; (2)
Inspirational motivation; (3) Intellectual stimulation;
and (4) Individualised consideration; while
transactional leadership comprises the following
three dimensions: (1) Contingent reward; (2)
Management-byexception; and (3) Laissez-faire
leadership. It is important to note that the
behaviours that comprise the transformational
dimensions (as opposed to the transactional
dimensions) focuses heavily on the idea of mutual
reliance, shared responsibility, effective and
appropriate communication, trust and dependency in
leader-subordinate relations.
Given this, several assertions can be made about the
influence of an individuals attachment style on their
ability to engage in transformational leadership
behaviours. For instance, it is expected that leaders
with positive models of self and others are more
likely to engage effectively in the highly
participative requirements of transformational
leadership. This is especially so given Hazan and
Shaver (1990) found that secure attachment was
associated with more positive feelings about coworkers, and preferences for working with others.
Specifically, it is predicted that leaders with higher
transformational scores (measured using Basss
1995 Multifactor Leadership Questionnaire) are
more likely to be secure. Furthermore, in light of
Mikulincer and Floriens (1995) findings, it is
expected that avoidant, as well as secure, leaders
may have high scores on the transactional dimension
of Contingent reward (a non-relational strategy to
ensure task achievements). Finally, it is expected
that fearful and dismissing individuals will be more
likely to report Management-by-exception and
Laissez-faire styles of management in keeping with
their desire for social distance and/or social skills
deficiencies. No specific predictions are made for
preoccupied individuals.
Researchers have recently begun to suggest that a
leaders ability to empower his or her employees is a
major determinant of transactional versus
transformational styles of leadership (Fuller,
Morrison, Jones, Bridger & Brown, 1999; Howard,
1998). Indeed, one of the main concepts underlying

Bass and Avolios (1998) transformational model of
leadership is empowerment. The transformational
leadership dimension of Individualised consideration
involves providing encouragement and support to
followers, assisting their development by promoting
growth opportunities, and showing trust and respect
for them as individuals. Its role is to build follower
self-confidence
and
to
heighten
personal
development. According to Conger (1999), these
activities and their outcomes in essence describe
empowerment.
There is a large body of research that suggests a
leaders skill to effectively empower his or her
employees is a major contributing factor to good
leadership (e.g., Burnington & West, 1997; Burpitt
& Bigoness, 1997; Howard, 1998; Konczak, Stelly
& Trusty, 2000). Konczak and colleagues (2000)
have considered the construct of empowerment in
detail and have identified the following six major
groups of empowerment behaviours by leaders:
Delegation of authority or power; promotion of
employee
accountability,
encouragement
of
independent decision making; information and
knowledge sharing, employee skill development,
and leadership behaviours that encourage calculated
risk taking and new ideas.
Therefore, besides proposing that internal models of
attachment will influence leadership style (i.e.
transactional versus transformational), the current
paper also suggests that attachment patterns will
affect a leaders approach to employee
empowerment and delegation. Specifically, it is
expected that different patterns of attachment will be
related to a managers (a) tendency to empower and
(b) the ways in which they carry out empowerment
of employees. For instance, if a leader views others
as being generally reliable and trustworthy (i.e.
securely attached), he or she will be more likely to
effectively empower employees (e.g., delegate
decision-making responsibility) than if he or she
sees others as generally unreliable and undependable
(i.e. insecurely attached).
To date, only one empirical paper has attempted to
explore attachment links to empowerment
dimensions.
Johnston (2000) investigated
attachment links to delegation in small business and
found there was a tendency for secure managers to
report the highest levels of delegation while avoidant
managers reported the lowest level. In terms of the
current study, it is expected that secure leaders will
be more likely to empower their staff, and do so
appropriately. Furthermore, it is expected that
preoccupied managers, who want to be close to
others, will involve others in the decision-making
process, but will fail to do so clearly and effectively.
Finally, it is expected that both fearful and

dismissing leaders, with expectations that others will
a secure base allows for exploration (a concept
be generally unreliable and unavailable, will be less
central to attachment theory) (Bowlby, 1969, 1973,
likely to empower their staff. However, they will
1980). In organisational terms, exploration may
differ in their motivation for failure to empower
manifest itself in work behaviours such as
employees.
innovation, creativity and a willingness to try new
ideas, methods and procedures.
Future Research Directions

The current theoretical paper suggests a number of
avenues for future empirical research. First, a
questionnaire study is proposed that addresses the
earlier hypothesised links of attachment patterns
with (a) team functioning and (b) leadership.
Indeed, the current authors are in the process of
recruiting 200 team leaders and 400 team members
from an organisation with a pre-existing team based
structure.
All participants will provide
demographic, job satisfaction, and attachment
information (i.e. Relationship Styles Questionnaire,
Bartholomew & Horowitz, 1990; Attachment Style
Questionnaire, Feeney, Noller & Hanrahan, 1994).
In addition, leaders will be asked to provide
information regarding perceptions of their own
transformational leadership and empowerment
behaviours
(i.e.
Multi-factor
Leadership
Questionnaire, Bass, 1985; Leader Empowering
Behaviour Questionnaire, Konczak et al, 2000).
They will also give performance evaluations for
each team member participating in the study.
Finally, each team member will rate their leaders
transformational leadership and empowerment
behaviour as well as perceptions of their own team
functioning on key dimensions.
There are several other lines of research regarding
attachment theory and workplace behaviour that are
considered fruitful, particularly if evidence for the
proposed attachment links in the current paper
emerge.
First, it may be useful to explore how
leader-subordinate relationships and teams operate
under different organisational conditions (e.g., stress
due to change and/or restructuring). According to
attachment theory, attachment systems are activated
and become most salient under times of stress (e.g.,
Bowlby, 1969, 1973; 1980). Therefore, one research
question to be explored in the future might be, how
do work place relationships change as occupational
stress changes? Second, it may be worthwhile
examining the interaction processes (e.g.,
communication styles, conflict resolution styles)
within workplace relationships. There is a large
body of literature linking attachment to observed
interaction characteristics such as communication
and conflict resolution styles in personal
relationships (e.g., Feeney & Noller, 1990).
However, to date, there is little research that
explores these links within work relationships.
Finally, it may be valuable to explore the extent to
which people use their work groups as a source of
security within the workplace. In attachment terms,
Conclusions
In conclusion, this paper has demonstrated how
attachment theory may be useful in conceptualising
and predicting aspects of team functioning,
transformational
leadership
and
leaderempowerment behaviours.
Specifically, it
considered how working models of self and others,
that form across the life span and originally in nonwork relationships, transfer to the work
environment. This research has the potential to
contribute to a number of bodies of literature
including organisational and social psychology,
employee relations, human resource management
and management. In practical terms, this research
might help to inform human resource policy within
organisations.
For
example,
provide
recommendations regarding team selection and
optimal team composition, management of
employee relations, and leadership development.
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Linking people, business and technology - The effectiveness of system

development methodologies
Billy Wonga and Louis Sanzognib
a
b

Abstract
The paper develops a discussion on what a
methodology can and cannot achieve in the
development of information systems.
The
discussion is conducted by a review of recent
literature in the area.
We define information
systems, encompassing in the definition their sociotechnical nature, and what role a methodology plays
in their development.
Within this enriched
definition a comparison is made between hard
systems thinking and soft systems methodology. We
find that despite the proliferation of methodologies
(all claiming to be able to facilitate the development
of information systems), there are surveys that show
that a significant proportion of information systems
have not been developed with any methodology at
all. In most cases where a methodology is used, it
is only used at selected stages of the development
process. We conclude that no methodology can be
a panacea to all the problems encountered during a
development exercise.
Keywords
Methodologies; information systems
Introduction
Operating within an environment where speedy and
flexible actions and creative decision-making are the
order of the day, managers of businesses are turning
to information technology for solutions to transform
their organisations to meet the challenge (Fiedler et
al., 1995; Raymond, et al., 1995; Applegate et al.,
1999; Gharajedaghi, 1999; Laudon and Laudon,
1999). The power of new computer technologies, in
both hardware and software, however, must be
harnessed to work with the human agents as a whole
before any meaningful result can be achieved
(Fiedler et al., 1995; Applegate et al., 1999; Weber,
1999). Such a human and machine set-up, together
with all the attending procedures and processes,
constitute what many people now call an
information system (IS) (Bell and Wood-Harper,
1992; Gibson and Hughes, 1994; Winter et al., 1995;
Waring, 1996; Avison, 1997; Shelly, 1998;
Schultheis and Sumner, 1998; Weber, 1999). For
such a system to effectively and efficiently carry out

its functions, many IS researchers and practitioners
adopt various methodologies to guide them in the
design and development of information systems
(Bell and Wood-Harper, 1992; Chatzoglou, 1997).
The importance of employing a methodology has
been widely documented in the literature on
information systems development (Ashworth and
Goodland, 1990; Avison and Wood-Harper, 1990;
Benynon-Davies, 1993; Winter et al., 1995;
Chatzoglou, 1997; Hawrszkiewycz, 1998; Segars
and Grover, 1999). In fact, there has been such a
great proliferation of methodologies that the figure
has been put at 1,000 (Jayaratna, 1994). Though it
has been doubted if there is really such a great
number of methodologies (Avison and Fitzgerald,
1995), there are certainly hundreds of them that
invariably lay claims to their efficacy and efficiency
in helping the development of information systems
(Avison and Fitzgerald, 1995). It has been said that
computer people, without a methodology and left to
their own devices, will implement the system that is
most convenient to build, which will not necessarily
be what the user wanted (Ashworth and Goodland,
1990).
If the benefit claims that researchers and users make
of methodologies were anything to go by, it could be
expected that all information systems should have a
methodology to underpin their development.
However, a recent research reported that only
around 50% of the surveyed organisations had
methodologies for IS/IT systems development,
project management and investment appraisal, and
only a minority of organisations considered such
methodologies to be effective in ensuring success for
information systems development (Ward et al.,
1996). Another research also showed that only 69%
of the projects used a methodology at various stages
of the development process, and 31% did not use
any methodology at all (Chatzoglou, 1997). Some
researchers actually hold the view that because most
of these methodologies were developed with a
mindset of the nineteenth-century industrial era and,
now with newer technologies like end-user
computing emerging at a breakneck pace, a

preoccupation with methodical approaches to
considerations as the self interests, values and
information systems severely limits our ability to
beliefs of different groups of stakeholders (which
respond effectively to organisational information
often are incompatible with each other), the
requirements (Baskerville, Travis and Truex,
environmental impact in the form of competition on
1992).
Such methodical approaches, they
the operations of the organisation and the norms and
contended, would only inhibit rather than enhance
practices of a particular trade, just to name a few
the
effectiveness
of
information
systems
(Lewis, 1994; Winter et al., 1995; Lycett and Paul,
development.
1999). The interplay of all these considerations
often puts an organisation in a state of flux, which in
The paper reviews recent literature in this field to
fact is the characteristic of all human activity
see what role system methodologies in general play
systems (Lewis, 1994; Checkland, 1999b). If an
in the development of information systems. A brief
information system were to adequately serve the
review of the nature of information systems as a
needs of such a system or the organisation
system is first made, before the meaning of the term
concerned, it must also be able to evolve with this
methodology is examined. It will be followed by
flux of events that may get increasingly complex
an analysis of what a methodology can achieve and
over time (Winter et al., 1995; Lycett and Paul,
cannot achieve (emphasis will be centred on the pros
1999; Xu, 2000). It has therefore been suggested
and cons in using the hard scientific approach in
that any information system should be technically
information systems development) and an
efficient and show sensitivity to organisational and
examination of how a paradigmatic methodological
human needs (Mumford and Weir, 1979). In fact,
shift from the hard systems thinking to the soft
the development of information systems involves
system methodology affects information systems
both technical knowledge in a variety disciplines
development.
Finally, we suggest how much
like computer science, management science and
weight a developer should attach to a methodology
operations research, and behavioural consideration
when he is to develop an information system.
from the sociological, economic and psychological
perspectives, so that a pure technical or engineering
approach to systems development would not be
Information Systems - what kind of system
amenable to producing any user-friendly system
are they?
(Laudon and Laudon, 1999).
First of all, an information system is not to be
confused with a more specific automated
Hence, besides being just a set-up of hardware
information system (Bell and Wood-Harper, 1992),
components connected in an organized way, an
despite that the resultant information system of a
information system is an embodiment of the
development exercise would more often than not
workings of a human activity system; it derives its
automate, or semi-automate, as far as possible some
raison dtre and meaning from the particular social
of the functions of an organisation. Making such a
context it is to serve. If a prison system was to be
distinction would enable one to take a wider
viewed as one for depriving criminals of their liberty
perspective in viewing an information system as not
by locking them up, it would be just as valid if it is
just a physical artefact that is engineered like a piece
to be viewed as one for rehabilitating these lawof machinery. From a functional perspective, an
breakers to prepare them for re-entry into society
information system is a technologically implemented
after they have served their sentences (Winter et al.,
system for recording, retrieving and disseminating
1995). Should an information system be developed
data/information. From a structural perspective, it
for a prison system, which of these views the
is one that is supposedly to knit technology and
information system is to serve would very much
people into a cohesive whole to serve the needs of
depend on how the owner and the developer of the
an organisation (Hirschheim, 1995; Laudon and
system conceptualise it. This is why an information
Laudon, 1999; Xu, 2000). An information system
system has been seen as a meaning attribution
is thus a socio-technical system exhibiting many of
system in which people select certain data and get
the emergent characteristics of a social system
them processed to make them meaningful in a
(Checkland, 1993; Winter et al., 1995; Hirschheim
particular context in order to support people who are
et al., 1995) that may require a developer to go
engaged in purposeful action (Checkland, 1999b).
beyond the technical considerations in the
It is here where methodologies come in to play a
development process and to look for social factors
very pivotal role in helping analysts to inquire into
that may impact the functionality of an information
the situation and establish a proper understanding of
system.
the kind of information system to be developed
(Olle, et al., 1988; Lewis, 1994; Checkland, 1993,
Given that an information system is developed to
Xu, 2000).
serve the needs of an organisation and the people
related to it, there is always a social dimension to the
whole development process (Lewis, 1994; Winter et
al., 1995). This social dimension may include such
What is a methodology?
Despite the extensive use of the term methodology
amongst researchers and practitioners of information
systemic perspective place greater emphasis on the

subjective world of human activity, which systems
researchers like Checkland (1993) refers to as the
soft side of the problem situation that always has
Perceptions
Meanings
Subjective view of reality
8
Less control
Subjective
Eductive
Technical facts
Objective meaning
6
Participative
research
TENDS TO BE SYSTEMIC
Non-participative
research
Control
Objective
Inductive
TENDS TO BE REDUCTIONIST
Fig. 1 A continuum of methodologies (Bell and Wood-Harper, 1992)
systems, there is no general agreement on what

constitutes a methodology.
Some people
understand the term as a framework of principles,
paradigms, methods and techniques for addressing
or studying a particular subject (Waring, 1994;
Checkland, 1993). Others consider it a system of
technical methods and management procedures that
cover the entire development activity (Wasserman et
al., 1983). Some even have opined that the term
method is already good enough (Baskerville et al.,
1992; Flynn, 1992). The British Computer Society
has defined an information system methodology as
a recommended collection of philosophies, phases,
procedures, rules, techniques, tools, documentation,
management, and training for developers of
information systems (Maddison, 1983). Collins
COBUILD English Language Dictionary and the
Concise Oxford English Dictionary respectively
define methodology as a system of methods and
principles for doing something, for example for
teaching or for carrying out research and a body of
methods used in a particular branch of activity. A
central idea that runs in most of these different
notions of methodology is that a methodology is
more than a method and, as a tool for research
studies, it should be distinguished from mere
techniques. It is the methodology that determines if
a particular technique is appropriate or not.
A methodology enables one to perceive order, hence
meaning, in the flux of events of the outside world;
it is thus natural for a methodology to have an
explicit or implicit underlying worldview or
philosophy (Bell and Wood-Harper, 1992; Lewis,
1994; Hirschheim et al., 1995; Winter et al., 1995).
Bell and Wood-Harper (1992), for example, have
placed the range of methodologies along a
continuum according to how subjective or objective
the worldview of a particular methodology is (Fig.
1).
Those underpinned by the hard science
thinking tend to be objective and positivist in their
worldview, where the universe is viewed as fixed,
structured and measurable, and thus predictable.
On the hand, methodologies that see things from a
such social forces like politics, cultures, values and

beliefs interacting with each other and with the
hard technical issues. In a similar vein, Saraswat
(1998) compares the philosophy of the two
paradigms with reference to the various aspects of
the operations of an organisation (Table 1).
Table 1 A comparison of the scientific and the
systems paradigms (Saraswat, 1998)
Dimension of
Comparison
Focus
Purpose
Relationships
Interactions
Organisation
Environment
Solutions
Response
Motivation
Consequences
Systems
Paradigm
Holistic
Teleological
Multi-way
Synergistic
Dynamic
Open
Synthetic
Proactive
Internal
Stochastic
Scientific
Paradigm
Elemental
Functional
Linear
Causal
Static
Closed
Analytical
Reactive
External
Deterministic
Thus, if a methodology is a system of methods, then

for
an
information
system
development
methodology to be treated as such, the underlying
philosophy must be the guiding thinking that runs
through the whole methodology, bringing the
various parts of the methodology into a unified
whole. Metaphorically speaking, this thinking can
be seen as a grid for organizing events in ways that
facilitate easy comprehension.
Applied to
information systems development, this thinking will
be a tool that directs the attention of the systems
developer in what he should look for and how he
should analyse the task with which he is entrusted
(Wilson, 1984; Simon and Wood-Harper, 1992;
Lewis, 1994). The importance of this thinking has
been likened to the premises on which one bases
ones decision, in that the hidden and sometimes
unquestioned assumptions that are built into the
design of information systems can be of crucial
importance in structuring day-to-day activity
(Morgan, 1997). Some researchers have referred to
this thinking as the philosophy of the methodology
(Hirschheim et al., 1995), others have treated it as
the basic assumption of the methodology (Stone,

1990).
No matter what term is used,
the most effective) to develop the system (Wilson,
epistemologically, this thinking helps the user of the
1984; Lewis, 1994).
Any large and complex
methodology to gain a better understanding or
problem is viewed as the sum of the smaller and less
knowledge of the tasks or problems he is confronted
complex problems (Lewis, 1994). By solving the
with. It is the hope of developers that, by adopting
smaller and less complex problems, it is hoped that
a methodology in systems development, the system
the accumulative effect will lead to the resolution of
can be developed in a functional, efficient and
the parent problem. Such an approach certainly has
economic way and that the final product will be
its proponents, given the successes that it has
user-friendly in use, reliable in operation and easy to
achieved in many of the hard engineering projects,
maintain. What a methodology does is to give a
like the range of space projects in the 60s and 70s.
modus operandi and a guiding principle whereby, it
is hoped, a standard of action can be achieved and
The generic system development life cycle (SDLC)
quality of development assured.
as described in almost all textbooks on systems
analysis and design is a classic example of such an
approach. It comprises a number of stages, namely,
How methodologies of different paradigms
feasibility study, systems investigation, systems
affect the development outcome?
analysis, systems design, implementation, review
Despite that in practice most methodologies cover
and maintenance (Antill and Wood-Harper, 1985;
all of the following aspects of a design and
Fertuck, 1995; Avison, 1997; Hawryszkiewycz,
development project (Simon and Wood-Harper,
1998; Shelly, 1998; Laudon and Laudon, 1999),
1992):
with each stage comprising activities in greater
1. Identifying and understanding the problem
details. SDLC has often been depicted as a linear or
situation;
waterfall model, with each stage of the development
2. Familiarising with the environmental setting of
process commencing only after the defined activities
the problem situation;
and deliverables of the previous stage have
3. Understanding what resources and constraints
completed.
In fact, this linear approach is best
one is working with;
suited to projects that have clearly defined
4. Identifying all the major information
requirements (Hawryszkiewycz, 1998; Laudon and
components of the problem situation;
Laudon, 1999). However, many researchers and
5. Designing a model for solving the problem;
developers were embarrassed by the fact that the
6. Designing solutions to the problem;
systems they developed did not have the expected
7. Testing and costing the model;
reception of the end-users; some such systems even
8. Implementing the model.
have resulted in huge financial losses (Checkland
(1999b) reported a number of such incidents, like the
Different methodologies order a problem differently
75m Taurus project of the London Stock
and lead to varying degree of success. During the
Exchange).
early days of information systems when there was
not yet anything that had the semblance of a modern
Some researchers thus point out that instead of just
day methodology for information systems research,
taking a positive objective view of reality and
the practice of information systems development
teasing out the key elements from it to be
took as its tools the approaches adopted by engineers
incorporated in an information system, a developer
of engineering projects (Wilson, 1984; Checkland,
should treat the whole development exercise as a
1993).
Like a bridge construction project that
reality construction process by negotiating with the
already has a clear objective of what to accomplish
intended users of the system (Wilson, 1984;
before the actual construction begins, an information
system is developed with similar Project
Project
thinking that the purpose of the Selection
Report
system
is
supposedly
Feasibility
Feasibility
understood
by
both
the
Study
Report
developer and the stakeholders.
User
The developer would develop
Analysis
Requirements
the system by breaking down
Document
the whole development process
System
Design
into phases (Fertuck, 1995;
Specification
Avison, 1997; Shelly, 1998).
Information
Implementation
He would then try to identify,
system
Operable
with the skills, crafts and
Evaluation
system
techniques that are at his
disposal and from a number of
Review
possible solutions, the best way
Waterfall Model of Development
(either the most cost-efficient or
Checkland, 1993; Beynon-Davies, 1998). This is

the basic thinking of the soft systems methodology.
Instead of seeing the work required for a
development project as activities that unfold in a
linear fashion, the developer would try to learn how
meaning is generated within an organisational
context. Armed with such knowledge, he would be
in a better position to design and develop a system
that truly serves the needs of the organisation.
Under such a conception, an information system is
seen as a serving system that serves the human
activity system (Winter et al., 1995).
The
information system would then be a set-up that
comprises data manipulation, to be accomplished by
machines, and meaning attribution, a uniquely
human act (Checkland, 1993). The developer of
this whole set-up, however, must recognise that
organisations are complex and paradoxical
phenomena that can be understood in many different
ways (Morgan, 1997). Such recognition would
enable him to look beyond the hard data, and to
consider also issues, especially political ones, that
pervade every human activity system.
What importance should be attached to

methodologies in information systems
development?
Being a tool for mapping out a plan of action, a
methodology tends to be prescriptive or predictive in
its application. A methodology is prescriptive in
that it sets down how a problem is to be formulated,
how a task is to be broken down into manageable
sub-tasks, what tasks need to be accomplished at a
particular stage, and when or under what
circumstance some other actions should be carried
out. In addition to this, a methodology may also
specify what tools and techniques are to be used at
each and every stage of the whole development
process, as well as what sort of training the users
should have and what documentations are to be
produced (Avison and Fitzgerald, 1995).
A
methodology is predictive in that in every plan of
action, there must be an element of prediction or
estimation, whereby a model of what the final
product would look like can be built; in fact it is also
a standard against which a system can be evaluated
as to how well the system has achieved the
objectives it was designed to achieve.
Experience has shown that many methodologies are
able to help developers to successfully develop their
systems, and it has also been shown that using a
methodology in the development process may have
the economic benefit of involving less people and
requiring less time and effort (Chatzoglou, 1997).
The latter benefit certainly is high on the agenda of
any business concern and government agency. That
may be one of the reasons that makes the United
Kingdom government designate SSADM, a data-
driven structured analysis methodology (Maddison,

1983), as the standard methodology to be used in all
official projects (Avison and Fitzgerald, 1995;
Chatzoglou, 1997).
However, despite all these obvious benefits, there
are still a third of the projects not developed with
any methodology at all (Chatzoglou, 1997). Some
researchers have pointed out that many of the
methodologies are framed with the mindset of the
nineteenth-century industrial era (Baskerville, Travis
and Truex, 1992). The industrial revolution brought
about great changes in social organisation; and there
was an accompanying restructuring of all forms of
social structures. The operations of organisations
such as business concerns were seen like a machine;
these organisations were structured according to a
hierarchy whereby the various functions within were
compartmentalized to mirror the division of labour
in the production lines. The whole decision-making
process had to flow down from the top. It seemed
that the key to all the problems within an
organisation was held by those people at the top.
The overall structure of the organisation seemed to
remain static, but this is exactly not what the real
world is like (Morgan, 1997).
The emergence of new computer technology has a
great impact on structuring an organisation
according to a top-down approach (Schultheis and
Sumner, 1998; Laudon and Laudon, 1999).
Corresponding changes have to be made when the
new technology is incorporated by an organisation,
as the new technology has enabled decisions to be
made by people lower down in the hierarchy, and
thereby flattening the overall hierarchy (Murthy,
1996; Schultheis and Sumner, 1998).
Coupling
with such a change is a merging of some functions
within an organisation. If an information system is
to be developed with a methodology that treats an
organisation as immutable, then the development of
the organisation would be hindered or limited and
the responsiveness of the organisation to external
changes would also be hampered. At a time when
organisations are being geared towards becoming
learning entities through enriching their members, so
that the organisations can adapt to and evolve with
the ever-changing environment (Senge et al., 1994),
the restrictive outlook of a methodology certainly
will be doing more disservice than service to the
organisation it is to serve.
A fact that any systems developer or analyst must
recognize is that no one single methodology can be a
panacea for all problems.
The success of a
methodology also depends on other facts, such as
how well a developer understands a particular
methodology and the criteria on which he based his
decision for selecting a certain methodology. There
is also the problem with how an analyst views his

role in the whole development process. With the
would suffer as a result. Having said that, it does
information system now being viewed more as a
not mean that information systems can be developed
social system than a technical system (Hirschheim et
with whatever whim the developer may have at the
al., 1995), a system analyst shall no more be seen as
material time.
Any development without a
one akin to a technician; instead, he should also be
methodology would, if not verging on anarchy,
one playing the role of a business analyst, capable of
make the whole development process difficult to
understanding the operation of an organisation
monitor and the progress would also be erratic.
against the workings of the modern day business
Greater attention must be paid to the particular
world.
objectives of organisations for which information
systems are developed, and it is such objectives that
The failure of one system with a particular
a methodology is to serve. The continuous evolving
methodology does not mean that it would meet with
nature of organisations should be recognized as it is
the same result with another methodology.
because the organisations are evolving that they
Information systems development is a very timeneed to have a system that can help them sustain this
consuming and expensive exercise, which, in many
evolvement process.
instances, can only be carried out within an
organisation.
Unlike an experiment done in a
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Training of Australian expatriates for management in SE Asia

Peter Woods
Abstract
This paper will review the literature pertaining to
cross-cultural management training, with the
purpose of identifying optimum training timing and
methods for developing intercultural management
effectiveness. The focus will be on Australian
management expatriates posted to the South East
Asian region. Expatriate Australian managers
continue to be rated poorly in intercultural
effectiveness by Asian business executives. Training
programs in intercultural management are mostly
underutilised, are seen as having limited
effectiveness and are held prior to departure.
Within country (in-post) training characterised
by small, cross-organisational management groups
is examined. These groups, aiming to develop
relevant socio-cultural competencies and host
culture relevant management practices are proposed
for effective training of long term (over one year)
Australian expatriate managers.
Keywords
Expatriate; Training; Intercultural Effectiveness
Introduction
The need for cross-cultural training for expatriates
has been long established in the research literature
(Black,
Gregersen
&
Mendenhall,
1992),
(Mendenhall & Oddou, 1985), (Tung, 1982). The
reality, however is that such training is often
regarded as superficial (Stedham, & Nechita, 1997).
US firms have improved in the number of
companies offering cross-cultural, pre-departure or
language training, from previous research indicating
only one in three companies offering such training
(Tung, 1982), (Mendenhall, Dunbar, & Oddou,
1987) to at least two in three offering such training
(Guzzo and Noonan, 1992). The reasons for not
offering cultural training for expatriates include: doubts about the effectiveness of the training
(Mendenhall,
&
Oddou,
1985);
trainee
dissatisfaction with the programs (Mendenhall, &
Oddou, 1985) (Mendenhall, Dunbar, & Oddou,
1987); the lack of time between selection and
relocation (Anderson, 1998) (Coyle, 1993); and
management questioning the need for such programs
for reasons including the anticipated short (1-3
years) length of expatriate assignments (Tung,

1981). Effective, well-timed programs with a high
participant and management satisfaction rating,
would perhaps fill this obvious need in corporate
human resource development.
The term expatriate is defined as people working in
foreign countries (Cohen, 1977). The South East
Asian region has been an important destination for
Australian expatriates. A survey of 52 Australian
companies in 1989-90 determined that SE Asia was
the most common destination for expatriate
international relocation (Coyle, 1993). The region is
significant in terms of the degree of perceived
cultural contrast with Australia, requiring expatriate
managers skilled in intercultural management.
Altogether, 12.9% of Australian exports were to the
ASEAN group and Australia received 14% of its
imports from ASEAN countries in 1999 (DFAT,
2000). Australias Foreign Minister estimated in
1997 that over 100,000 Australia expatriates were
working throughout Asia (Downer, 1997b), with
almost 6000 in Singapore (Downer, 1997a). Clearly
the effectiveness of expatriate Australian managers
is of importance to Australian trade and investment
in the region.
The 21st century has been labelled as the AsiaPacific Century (Karpin, 1995).
Training
Australian managers to successfully manage across
cultures within this region was a focus of the Karpin
report (1995), commissioned by the Australian
government in 1992. The research highlighted the
fact that Australian managers were seen as
unwilling to adapt to cultural differences and
appeared to be unaware of cultural differences
between countries (Dawkins, Savery, & Mazzorol,
1995, p. 37).
In a discussion of expatriate preparation, it is
necessary to contrast the terms education and
training. Training is defined as a planned process
to modify attitude, knowledge or skill behaviour
through learned experience, to achieve effective
performance in an activity or range of activities
(United Kingdom Manpower Services Commission,
1981 quoted in Smith, 1998). In contrast, education
is oriented towards future jobs, and is more broadly

related to all aspects of life (Smith, 1998) (Tovey,
Wood (1997) defined the competency areas needing
1997). The focus of this discussion is on training.
attention.
These were:- developing skills in
changing organisational mind-sets from ethnocentric
This review will critically examine the current state
to geocentric; developing skills in managing and
of cross-cultural training for Australian expatriate
dealing with staff in cross-cultural business
managers. The key aspects of the timing of training
settings; developing skills relevant to conveying
and type of training to potentially maximise
the business image as well as the operational and
effective intercultural management will be
strategic intent of the business enterprise in and
discussed.
across foreign business environments; and foreign
language skills (Fish & Wood, 1997, p. 47,48). The
researchers recognise that cross-cultural training and
Current State of Cross-Cultural Training
development programs focussing on these skills are
for Australian Expatriate Managers
needed.
The majority of respondents had
Research examining the effectiveness of Australian
experienced at least two overseas assignments, and
expatriate managers is relatively scarce. As part of
this raises the question as to whether overseas
the Karpin report, a telephone survey was conducted
experience alone develops these competencies.
(supplemented by focus group discussions and
Black, Mendenhall and Oddou (1991), found that
personal interviews) of 502 Asian business
with regard to expatriates on overseas assignments,
executives (Dawkins et.al., 1995).
This was
that overall, previous experience does not seem to
conducted in Singapore, Malaysia, Indonesia,
facilitate the adjustment process (Black,
Taiwan, and they were asked to rank Australian
Mendenhall, & Oddou, 1991, p.294).
managers against five key trade and investment
competitors active in the region (Japan, Germany,
Anderson (1998), in research that examined the
USA, UK and Taiwan) using a framework of
preparation of seventy-two Australian expatriates
managerial qualities. Australian managers were
and their families for relocation to South East Asia,
rated poorly against the key competitors on all levels
found that only a minority (36%) of respondents
(Dawkins et. al., 1995). Singaporean and Indonesian
reported attending formal cultural training courses.
focus groups reported Australian managers as
Respondents comments in this research indicated
friendly but simple, lacking in understanding of
that cultural training courses would have been
Asians or Asian business practice (Dawkins et.al.,
helpful.
1995. p. 38). These impressions of Australian
managers, however , were based on only 19 per cent
A 1995 survey of 31 Australian expatriate
of respondents having contact with Australian
employees (with the assignment countries not
business managers more than once a month, and
disclosed) found a higher percentage of companies
there was no differentiation between visiting
offered cultural training (Davidson, & Kinzel, 1995).
managers and expatriate managers (Dawkins et.al.,
Amongst the managers in this sample, 69% were
1995, p.9). As yet, there appears to be no research
offered language training, 63% were offered general
specifically examining Asian managers perceptions
culture transition training, and 57% were offered
of Australian expatriate managers.
training for local cultures customs and social
behaviour (Davidson, & Kinzel, 1995).
The
Australian expatriate managers, by nature of their
percentages were found to be lower than what was
situational demands, could be expected to perform
offered to US managers, with a similar survey with
better on the dimension of intercultural awareness
US expatriate managers reporting 10% to 13%
than managers in general. The returned expatriate,
higher access to such training. Less than 50% of
for example, is regarded as a source of cultural
Australian companies responding to the survey
information (Anderson, 1998). Research on 137
assessed their current training practices as sufficient
Australian expatriate managers in Hong Kong,
(Davidson, 1995).
determined that most managers (56%) were on their
first overseas assignment, and the average
Against the background of the apparent need for
assignment is between three and four years (Selmer
improved
cross-cultural
competencies,
the
& Lee, 1994). A total of 87% of expatriates on
percentage of Australian expatriates offered crosssubsequent overseas assignments were found to be
cultural training revealed by Anderson (1998) and
assigned to the same region (Selmer & Lee, 1994),
Davidson and Kinzel (1995) appears low. Research
indicating the potential for organisations to develop
by Hutchings and McEllister (1999) on 22
a knowledge base of culture and country specific
Australian organisations and expatriates working in
information on intercultural management.
China, found that no expatriate had received crosscultural training. Ten respondents had received
In an examination of cross-cultural management
some language training with six of those having
competence in Australian business enterprises in
some content covering training in multicultural
East Asia (with the largest group of respondents
communication included in the language course.
being expatriates in SE Asian assignments), Fish and
Further research is needed, however, to draw

conclusions on the state of affairs of Australian
expatriates in South East Asia, with research
published to date having such small sample sizes.
Specific research investigating the relationship
between cross-cultural competence of expatriate
managers in the region and cross-cultural training
would be beneficial.
Timing of Training
Sequential cross-cultural training, as proposed by
Selmer, Torbion and de Leon (Selmer, Torbiorn &
de Leon, 1998), suggests that predeparture training
alone is inadequate as it does not take into account
the variations in learning receptivity that occur over
the expatriate period. Predeparture training is
suggested as being more suited to essential
information on local conditions, didactic exposure to
the cross-cultural adjustment process and issues of
initial adjustment. The abstract foreignness of the
overseas situation is seen as limiting the effective
interaction with the training provided (Selmer,
Torbiornn & de Leon, 1998). Mamman (1995)
suggests that predeparture training is mostly relevant
to expatriates early adjustment in a culture.
The time between the decision to accept an overseas
posting and departure is relatively short, with only
64% of respondents in Andersons Australian
expatriate (Anderson, 1998) research indicating they
felt there was sufficient time between the posting
decision and departure. The impact of relocation
stress on the expatriate and the family also would
limit receptivity to training, with 3 months after
arrival being nominated as the most acute phase of
such stress (Coyle, 1993). The expatriates frame of
reference usually shifts from home to host culture
from four to seven months post-arrival (Torbiorn,
1982), hence the expatriate is more receptive to
learning new behaviours at least four months after
arrival.
The four post-arrival phases of adjustment are
(Selmer, Torbiorn & de Leon, 1998) ethnocentric,
culture-shocked, conformist and culturally adjusted.
In the ethnocentric phase, methods of training where
cultures are contrasted should help to enhance
cultural awareness and lower ethnocentrism. Crosscultural training is seen to be most effective in the
culture shocked phase, utilising methods such as
giving explanations for actual cross-cultural
experiences
and
encouragement
towards
experimentation with new behaviours on the job.
The conformist phase offers the opportunity to train
the expatriate in learning by doing as the hostculture members do (Selmer, Torbiorn, & de Leon,
1998, p.837). The interactional learning possible
during this phase has the potential for long term

effects due to the immediacy of application.
Selmer and his colleagues (1998) suggests that
sequential training should be conducted in a group
setting for expatriates from different organisations
operating in the same host culture, providing also the
potential for interpersonal networks amongst
expatriate managers. The benefits of such networks
have been highlighted by Tung (1998), who points
out the trend towards expatriates spending more time
abroad as compared to her previous study in 1981.
The expatriates most commonly nominated 6-12
months as the time to feel comfortable in the foreign
environment, indicating that training over a period
of time could provide both support as well as crosscultural skill refinement (Tung, 1998). Hutchings
and McEllister (1999), have identified in-post
support with work-related skill development,
mentoring and consultative groups (p.157) as being
a major need for Australian expatriate managers.
In-post support is defined as the range of training
and other support services available for expatriates
while they are stationed in the host country.
Hutchings and McEllister (1999) found that none of
their research subjects, being twenty-two Australian
expatriates in China, received such support.
Some international organisations have adopted a
sequential process in cross-cultural training. The
Canadian International Development Agency
(CIDA) has provided a training framework which
includes extensive pre-departure training, a postarrival training with co-workers to facilitate
productive integration, and periodic refreshers
throughout the assignment (Lane, DiStefano, &
Mazneveski, 2000).
Jardine Matheson, the
multinational trading giant, have a two year on the
job training program for new graduates which
addresses intercultural management issues through
group discussion amongst its multicultural trainees
(Williams, & Bent, 1996).
Web based training allows access to documentary,
collaborative and interactive information over the
course of an expatriate assignment (Fontaine, 1997).
Due to the potential for posting from managers on
assignment and host culture nationals, intercultural
management websites also permit the build up of a
reservoir of relevant experiences and insights from
expatriate individuals and organisations on the
field over a period of time longer than a single
training course. Broad access to such information
enables interaction with host nationals and people
from different cultural perspectives, enabling critical
analysis of cultural information such as sociotypes,
stereotypes, and appropriate intercultural behaviours
and practices.
404

stages of the expatriate training process.
Type of Training
Choosing the most effective intercultural
management training methods for a particular
assignment has been aided by well-established
frameworks (Black, & Mendenhall, 1989) (Black et
al., 1992) which have been modified over time
(Gudykunst, Hammer & Wiseman, 1996) to
incorporate new training design and delivery
techniques. These frameworks suggest that training
methods should be chosen depending on the length
and type of assignment, dissimilarity between host
and expatriate culture and the degree of culture
toughness (resistance to outside influences).
The well known training needs analysis has
traditionally focussed on the three levels of :organisation, operations and individual, to analyse
needs and integrate them together in training design
(McGehee, & Thayer, 1961). Australian training
has been guided by the Australian National Training
Authority (ANTA), which has favoured a
competency based training agenda (Smith, 1998).
Competency based training is training geared
towards specific outcomes which reflect the required
competencies in the workplace (Tovey, 1997).
Competency standards have not yet been formally
established for intercultural management, and such a
process would aid in training design.
There have been a number of categorisations of
cross-cultural training (Gudykunst, Hammer, &
Wiseman, 1977), (Landis, & Bislin, 1983), (Blake,
Heslin, & Curtis, 1996). Compared to Blake (Blake
et.al., 1996), I have developed further the
categorisations of cross-cultural training suitable for
expatriate managers, with an exploration of the types
of learning each activity provides (Table One). This
table, therefore, is a catalogue of training activities
based on the type of learning required at different
The type of training suggested by Selmer (1998) as

previously discussed, has been used successfully
with overseas students in U.K., Canada and
Australia.
The ExcelL program focuses on
developing socio-cultural competencies that
participants identify and then apply in their own
environment (Mak, Westwood, Ishiyama & Barker,
1999). The format of role-based training in groups
provides the opportunity for feedback, provides a
method of diagnoses and shared problem solving,
and the supportive environment enables mutual
validation (Mak, Westwood, Ishiyama, & Barker,
1999). For empirical evidence on the ExcelL
(Excellence
in
Experiential
Learning
and
Leadership, see (Mak, Westwood, Barker,
&
Ishiyama, 1998) (Mak, Barker, Millman, & Logan,
1998).
Action learning incorporating similar programs has
been found to be effective in management training
(Smith, 1998). Such programs based on Social
Learning Theory (Bandura, 1977), have been
recommended in cross-cultural training in the
business environment for some time (Black, &
Mendenhall,
1989).
The
socio-cultural
competencies needed in the host country crosscultural management context would need to have
immediate day-to-day application to justify the
allocation of training time in the in-post
environment and in particular, the culture shocked
and conformist phases. These types of programs,
however, are relatively untested with expatriate
managers in the post arrival environment, and
further research is required to test the effects on
cross-cultural management competencies.
Documentary and interpersonal methods both have
been shown to have beneficial effects on managerial
Table 1 Cross-Cultural Training Activities and Types of Learning

Category
Intellectual or area study
Laboratory
Case Study
Field Experiences
Group Discussion
Simulation
Role Playing
Sensitivity Training /
Personal Growth
Activities/ Techniques/ Topics

Books, films, lectures, web based instruction,
personal research
History, values, dos and donts, beliefs,
practices
Cross-cultural exercises, language learning,
culture assimilator, development centres
Scenarios dealing with cross-cultural
management issues
Orientation visits to the country prior to
departure
Exchange of views, experiences and strategies in
cross-cultural adjustment and management.
Construction and acting of interactive activities
that require the performance of skills associated
with intercultural performance.
Interactive replay and construction of common
intercultural encounters with an analytical
framework of briefing and debriefing.
Self awareness exercises, reflection, stress
reduction exercises, outdoor management
programs
Type of Learning and timing

Didactic, informational
All phases
Cognitive learning, programmed instruction,
self-awareness
Predeparture phase
Application of theory, integrative
Predeparture and conformist phases
Experiential, reflective
Predeparture phase
Collaborative
Eethnocentric and conformist phases
Action learning, self-awareness, skill
development
Predeparture phase
Action learning, self-awareness, skill
development
Culture shocked and conformist phases
Self-development, self-awareness
Ethnocentric and conformist phases
performance overseas (Earley, 1987). Interactive

web based training programs such as Learning
Space, Symposium, and many others (Steed,
1999) offer further opportunities for didactic,
collaborative, and interactive learning between
geographically dispersed expatriates, human
resource
development
professionals
and
management, particularly at the organisational level.
Such interactive multimedia programs, including
videoconferencing, combined with the programs
integrated curriculum management system, allow a
flexible and curriculum rich ongoing training
program for expatriates. This is particularly suited to
time pressured managers. One of the major
drawbacks of such training is the limitation on
interaction between trainers and students, with
immediacy still being limited by technology and
different time zones for expatriates (Noe, 1999).
The use of such learning tools to enhance effective
intercultural management skills amongst Australian
expatriates and in particular Australian expatriates
on South East Asian assignments, is yet to be
reported in the literature.
Intercultural programs should include both general
and specific information presented in a way that
increases individuals awareness of their culture
relative to another culture (Earley, 1987, p. 696).
With the increasing diversity of Australian
expatriate
managers
(Mamman,
1995),
understanding the individual in relation to the
culture becomes increasingly important in training.
The influence of individual biographical factors on
expatriates intercultural effectiveness, demands that
self-awareness of how personal characteristics may
influence effectiveness in the host culture (or
cultures) be included in training from pre-departure
onwards (Mamman, 1995). Ideally, this process of
self-examination continues through the expatriates
progression towards intercultural management
maturity (Wright, 1994).
Workplace and
management effects of individual differences
amongst members of the host cultures must also be
highlighted.
Training methods such as group
discussion aid in this process (Au, 1997),
particularly in the ethnocentric and conformist
phases.
Conclusion
An approach to training that integrates a sequential
process from pre-departure to at least 12 months into
the assignment, with learning activities suitable for
each phase, needs further investigation to establish
its potential in developing intercultural management
effectiveness. Training methods can also harness
the benefits of the internet, to provide culture
specific data, collaborative learning and importantly,
build the organisations knowledge of intercultural
management in the expatriates particular context.
The internet can also be used to provide modularised

information at appropriate points in the cultural
adjustment process.
Training in cross-organisational supportive groups
for expatriate managers over the first twelve months
of their assignment, focussing on intercultural
communication and management skills, is worthy of
further investigation.
Research is needed amongst Australian companies
sending expatriate managers to SE Asia to establish
the extent of training, the timing of training, the
suitable methodologies of training, and the impact of
training
on
cross-cultural
management
effectiveness.
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408
Strategies of national technology management in building up a

knowledge-based economy - The case of Singapore
Yuehua Zhang
Centre for Research Policy, Faculty of Commerce, University of Wollongong, Australia
Abstract
Knowledge has been increasingly salient as a source
of competitive advantage. Both developed and less
developed countries have been encouraging the
development of high-tech industries. National
technology management has become a new topic
challenging policy makers. Singapore has completed
her first National Technology Plan (1991-1995), and
is in the process of executing the second one (19962000). The national technology drive built up her
knowledge capacity, and turned the country into the
most competitive economy in the world. This study
on the about 30-year interaction between
Singapores national technology management and
economic development was conducted by focusing
on historical data and facts. It brings to light the
evolution of the country from a colonial trading post
to a highly competitive economy, and provides
insights for other countries, especially those less
developed, which are making similar efforts.
Keywords
Knowledge management, technology management,
technology
policy,
competitive
advantage,
Singapore.
Introduction
Technology has been the engine of economic growth
since the first Industrial Revolution (Dorf &
Worthington 1989). Increase in productivity
accompanying technological progress as the most
important determinant of economic growth and
consequently of income and welfare started to be
realised in the 20th century (Hofer & Polt, 1998).
This leads to revisions in economic theories and
models, which integrate knowledge as a vital
component into the traditional production
functions focusing on labour, capital, materials and
energy (Stevens, 1996).
Knowledge assets become outstanding because they
are difficult to trade. The market for knowledge is
riddled with imperfections and seriously faulted by
institutional devices at many levels. The
strengthening of intellectual property protection is
furthermore an important counterforce to imitation.
These have made knowledge increasingly salient as
a differentiator and, therefore, a

competitive advantage (Teece, 1998).
source
of
Management of technology as a resource for

economic development and the generation of wealth
appeared in the 20th century (Dorf & Worthington,
1989). Its importance made it go up to the national
policy level. The first technology policy statement of
the U.S., the U.S. Technology Policy, was published
on 26 September 1990 (Chiang, 1991). Singapores
first National Technology Plan was unveiled on 1
September 1991 (ST, 1991c). While the U.S.
Technology Policy declared the technological fields
falling into Federal R&D responsibilities and
measures
for
technology
transfer
and
commercialisation (Chiang, 1991), Singapores
National Technology Plan not only identified the
technological focus, but also aggressively quantified
the R&D targets for the national endeavour.
Gwynnes study shows that directed technology is
quite popular in Asia, which is characterised by
close collaboration between government and
industries. Government and private money is
ploughed into the high-tech activities expected to
meet the potential demand. Pioneered by Japan, this
strategy has enabled East Asias four dragons,
Singapore, South Korea, Taiwan and Hong Kong, to
build up their R&D infrastructure for a new
industrial development: moving from copying
Western-made products to developing their own.
Singapore is now the worlds major manufacturer of
computer disk drives (Gwynne, 1993), and has been
crowned the most competitive economy by the
World Economic Forum four times since 1996
(SEDB, 2000).
This paper presents a study on the strategies of
Singapores national technology management in
building
up
her
knowledge-base
and
competitiveness. It provides insights for other
countries, especially those less developed, who are
making similar efforts.
Methodology
A qualitative methodology was applied for the study
focusing on the secondary information. Historical
data and facts were designed to reflect the
interaction between Singapores national technology

management and economic development. Key
sources of information are the Straits Times and
Business Times of Singapore. Others include the
Internet and various journals.
Singapore and Her First Industrialisation

Singapore is a small country with a total land area of
647.8 square kilometres and a population of 3.87
million (SI, 1999). Modern Singapore found her
history as a trading post of the British since 1819. In
1983, Singapore, together with Malacca and Penang,
the two British settlements in the Malay Peninsula,
became a Crown Colony under the British
government. During the Second World War, the
Japanese took over Singapore by force on 15
February 1942. In September 1945, British forces
returned, and applied the Military Administration
there. In 1946, Singapore became a Crown Colony
under the British government; Penang and Malacca
became part of the Malayan Union, and the
Federation of Malaya in 1948 (SI, 2000).
In 1959, Singapore established as a self-governing
state, and merged with the Federation of Malaya in
1961. To foster closer political and economic
cooperation, Malaysia was formed on 16 September
1963 in the form of a merger of the Federation of
Malaya, Sarawak and North Borneo (now Sabah).
On 9 August 1965, Singapore was separated from
the rest of Malaysia, and became an independent
nation. She was admitted to the United Nations on
21 September of the same year and to the
Commonwealth of Nations on 15 October. On 22
December, the country became a republic (SI, 2000).
In the 1960s, with a GNP per capita of less than
US$320, poor infrastructure and insufficient capital,
Singapores economic structure was supported by
low-end commerce with little foreign direct
investment. There were only a few industries for
only domestic consumption (SEDB, 2000). The
withdrawal of British troops at the end of the 1960s
(Goh, 1999) caused massive unemployment and
rampant labour unrest. Employment creation
through intensive industrialisation became the
countrys prime objective. To create an environment
conducive to industrial development, Jurong
Industrial Estate was built up along the west coast of
the island for all types of industries to set up shops
there. Thereafter, Singapores industrialisation
started with factories producing garments, textiles,
toys, wooden products and hair wigs (SEDB, 2000).
The low labour costs and stable social and political
conditions in Singapore attracted more and more
foreign manufacturing activities, mostly labourintensive and low value-added. Full employment
was achieved in the early 1970s (SI, 1999). Foreign-
controlled companies took up about 70% of the total

cumulative investment in the manufacturing sector,
and about three-quarters of its total output, export
and value-added by the early 1980s (Grunsven &
Egeraat, 1999). The living standard rose to
US$8,333 per person in 1980 (Wang & Zhu, 1999).
However, R&D activities were still rare (BT, 1989).
During the first seven years of the 1970s, only 12
patents were registered by Singaporeans at the local
office (BT, 1978) . In 1978, about 0.2% of GDP was
spent on R&D, which was below the 0.5% level set
by the United Nations for less developed countries,
and far below 2%, the international norm generally
regarded as a healthy national outlay on R&D. Only
2.5% of the 8,000 scientists and engineers were
engaged in R&D. Most of them worked in
universities. As a result, the majority of research
projects were biased towards basic research ranging
from the breeding habits of house lizards to the
properties of silicon cells for solar energy
experiments (ST, 1979).
The Second Industrial Revolution

The industrialisation led to a tight labour market in
Singapore in the late 1970s. Facing increasing
labour costs and competition from other developing
countries and limited internal natural resources, the
government decided to restructure the economy to
move away from labour-intensive industries (Chew,
1984; Chng, 1987; Grunsven & Egeraat, 1999). This
led to the Second Industrial Revolution launched
in 1980 to gear the manufacturing sector to
productivity-driven growth and higher value-added
activities (Yeo, 1998; Grunsven & Egeraat, 1999;
SEDB, 2000). The thrust was towards the
exploitation of new technologies (Lum, 1988).
The first half of the 1980s saw Singapore lubricating
her R&D engine:
The R&D Assistance Scheme launched in 1978

was allocated S$50 million over a five-year
period starting 1981. Participation from the
private sector started to be permitted. One of the
main criteria was projects clear prospects of
commercialisation (BT, 1981; ST, 1983; Gwee,
1983).
The Product Development Assistance Scheme

set up in 1979 to induce smaller local
companies R&D was added new features,
which allowed companies to apply for funds to
do feasibility studies and to buy technologies
for product development (BT, 1980; Chng &
Tong, 1987). S$43 million was used to assist 72
projects from 1981 to 1987 (ST, 1989).
The Venture Capital Fund was launched with

S$100 million in 1985 to assist local companies
investing in new technologies at concessionary
interest rates. It would also co-invest with local
410

investors in new technological companies in
national competitiveness (ST, 1991a), and
to
both Singapore and overseas (BT, 1985).
propel the country from a newly
The Singapore Science Park was opened in
Table 1 R&D in Singapore (1978 - 1990)
1984 to provide the professionals and facilities
needed to support the technology drive (Tsang,
Year
GERD
RSEs/10,000
R&D
Workers
Firms
1984).
% of GDP
S$M
However, in the mid-1980s, overshot wages and

higher business costs caused a stagnation of foreign
direct investment and pushed Singapore into a
severe economic recession (Goh, 1999; Grunsven &
Egeraat, 1999). The government, thus, setting up
new directions: establish the country as a Total
Business Centre. Besides high value-added
manufacturing, the service sector was targeted as the
main growth area, particularly financial and business
services and non-production activities such as R&D,
logistics and management. Low value-added and
labour-intensive activities were guided out of the
country (Grunsven & Egeraat, 1999).
In 1986, the government spelled out three goals for
Singapores technology policy: (1) to get all
industries to exploit and apply new technologies; (2)
to build up competence in targeted new fields; and
(3) to move into selected high-tech manufacturing
(Chng, 1987). The main R&D objectives were to
improve the design and development capability in
established industries, and to develop competence in
the new technologies which were expected to
contribute to economic growth. The priority sectors
and new areas with a view of five to 10 years were:
robotics,
information
technology/artificial
intelligence, communications technology, laser
technology/electro-optics, biotechnology/biological
science, and micro-electronics (ST, 1987).
1978
0.21
38
08.4
1981/82
0.26
81
10.6
1984/85
0.54
214
20.2
1987/88
0.81
375
26.8
1990
0.90
572
28.6
Source: Teh (1994), ST (1991b & 1994a).
63
135
143
191
264
The Plan identified the niche areas consistent with

the strengths of local physical and human resources
(BT, 1991c), and focused on the key technologies
where Singapore-based companies already had a
significant competitive and technological edge so as
to achieve leadership or near leadership by 2000
(James, 1996). Four areas and nine technological
focuses were identified by two hundred experts. The
four
areas
were
manufacturing/materials;
microelectronics/electronics systems; information
technology; biotechnology/agro-technology (BT,
1991d). The nine technology focuses were
information technology; microelectronics; electronic
systems; manufacturing technology; materials
technology; energy, water, environment and
resources; food and agro-technology; biotechnology
and medical science. Nine expert committees were
formed to look into each of these focuses (ST,
1991a).
As a result, investment in manufacturing after the

mid-1980s moved towards the high-end of activities
in existing industries and initiatives in newtechnologically advanced industries (Grunsven &
Egeraat, 1999). The number of firms undertaking
R&D grew from 63 in 1978 to 264 in 1990. Gross
expenditure on R&D (RERD) increased to 0.9% in
1990. The proportion of private sector R&D grew
from half the total national amount in 1984/85 to
62% in 1990 (ST, 1991b). The number of research
scientists and engineers (RSEs) per 10,000 workers
increased from 0.84 in 1978 to 28.6 in 1990 (Table
1). GNP per capita reached S$22,620 (over
US$13,000) in 1990 (SEDB, 2000).
The Plan set the direction of R&D towards boosting

industries. Government support and funding would
be given primarily to projects which had industrial
applications (ST, 1992a). S$2 billion was allocated
to the Plan to finance the areas seen as crucial to
rapid and effective R&D growth: human resource
development; incentive schemes and technology
programs; and physical infrastructure (BT, 1991d).
Three targets were set up: GERD as 2% of GDP; the
private sector contributing over 50% of it; and 40
RSEs per 10,000 workers (Lien, 1996). The
Singapore Science Council was enlarged and
upgraded into a statutory board named the National
Science and Technology Board (NSTB) to
implement the Plan (ST, 1990b). It took over the
role of central authority for research funds from
various government bodies (ST, 1990a). To achieve
its mission, the NSTB enacted the following
measures:
The First National Technology Plan
Developing R&D Manpower
Singapores technology drive was put into full gear

in the 1990s. The first five-year National
Technology Plan (1991-1995) was unveiled on 1
September 1991 (ST, 1991c). It aimed to develop
the country into a centre of excellence in selected
fields of science and technology so as to enhance the
The Manpower Development Group was

formed in 1991 with S$158 million for
scholarships, awards, and courses (BT, 1991a).
200 foreign RSEs were to be attracted to
Singapore annually (Tan, S., 1991).
The Joint Industry Masters Program set up in

1991 with S$38 million provided scholarships
jointly with sponsoring companies to train their
talented staff for R&D work in selected fields
(ST, 1991d & e).
The Research Exchange Program, a S$7 million
scheme introduced in 1992, enabled companies
to train their R&D workers via a one-year
attachment to local universities, and vice-versa,
so as to encourage technology transfer, R&D
manpower development and collaboration
between these two sectors (Teh, 1992; Lim,
1992).
The Overseas Research Exchange Program

was set up in 1993 to assist companies in
training their researchers abroad, or inviting
foreign experts to be attached to local
companies (BT, 1993a).
The National Science Talent Search Award was
set up in 1995 to promote science and
technology among youngsters. Winners could
gain direct admission to science or engineering
courses in local universities. Scholarships for
their post-graduate studies would also be
offered (Tan, D., 1996).
Table 2 R&D in Singapore (1991 - 1999)

Year
1991
1992
1993
1994
1995
1996
1997
1998
1999
Encouraging Industrial R&D
The R&D Assistance Scheme was allocated

S$80 million to support R&D in all industries or
cooperation between industries and public
research sector. Grants, up to 70% of total
project cost, could also be used for R&D
feasibility studies or patent applications (BT,
1991b; NSTB, 1992).
Public research bodies were allowed to apply
for S$1 million grants to form holding
companies in order to pave the way for spin-offs
in research and industrial collaboration. The
holding companies could form subsidiaries to
commercialise their R&D products and
processes (BT, 1992a).
The Research Incentive Scheme for Companies
was set up in April 1993 to attract R&D
operations to Singapore and increase their R&D
personnel (ST, 1993). By May 1996, with
S$490 million, it brought about 55 R&D centres
worth over S$1.8 billion, and created over 2,500
R&D jobs. Every dollar committed by the
government generated about S$4 of industry
R&D spending (ST, 1993 & 1994c; Toh, 1995;
Nirmala, 1996b). As a result, another S$700
million was injected (Tang, 1996).
The Innovators Assistance Scheme was set up
in the mid-1994 to help independent innovators.
With an initial S$2 million, it would provide a
minimum of S$20,000 for either prototype
development or test marketing (ST, 1994b).
The Cooperative Research Program was

launched in May 1995 to facilitate the
cooperation between public research bodies and
industries. It could fund up to 70% of the total
cost of a project (BT, 1995).
The Technology Development Fund was
launched in 1995 to assist high-tech start-ups
which had not grown large enough to attract
traditional venture capital or bank loans. It was
also available to overseas firms as long as they
would site their first offshore operations in
Singapore
once
the
technology
was
commercialised (ST, 1995c).
Other incentives included: (1) tax deduction for
R&D expenditure of a capital nature; (2) a
three-year writing down allowance of 33.3% a
year for expenditure in acquiring technologies;
and (3) a 50% investment allowance for all
capital expenditure for approved R&D activities
(BT, 1991b).
% of
GDP
1.09
1.27
1.12
1.17
1.13
1.37
1.47
1.76
1.94
GERD
S$
(M)
756
949
998
1,120
1,370
1,709
2,100
2,500
2,800
RSEs/
10,000
Workers
33.6
39.8
40.5
41.9
47.7
56.3
60.2
65.5
68.8
Patents
Filed Granted
142
52
263
58
242
51
316
91
490
132
579
130
701
155
Note : Data for 1999 are preliminary.

Source: Teh (1994), Aggarwal (1995a & b), Chellam (1996 &
1998), Mok (1996), ST (1998c) and NSTB (2000).
Building a Conducive R&D Environment
The Patent Application Fund was set up in 1992

to allow investors to defray the costs, up to 50%
and a maximum of S$30,000, of patent
application (ST, 1992c). The legal framework
was also revised so that, starting 23 February
1995, inventors could apply for a patent in the
country instead of going to the U.K. or Europe
(Lim, 1993; ST, 1995a & b).
A S$3.53-million Technology Network
(Technet) was installed in early 1992, which
enabled R&D professionals to plug into more
than 2,500 international Internet networks (ST,
1992b).
Due to the surge in demand for R&D space,
Phase II of the Singapore Science Park was
embarked in 1993, when Phase I housed about
100 tenant companies (BT, 1993b; Tan, S.,
1993).
In the fifth year mark, the Plan had changed the

whole technological landscape and environment in
the country: 13 research institutes and centres, 67

cooperate R&D centres and an international network
(ST, 1996b). It recognised the need for a systematic
for collaborative R&D were established. These 13
career development for researchers and higher social
institutes and centres undertook about 800 joint
status for R&D people, and planned to instil an
research projects with industries, resulting in more
interest in science starting from 6-year-old children.
than 120 new products and processes. About 50% of
Due to the limited local talent pool, recruiting
them were commercialised. 20 spin-off companies
foreign talent would continue (ST, 1996c).
were set up (ST, 1996a). Companies engaged in
R&D more than doubled (TST, 1996b). Patent
S$4 billion would be committed to the Plan. 70%
applications increased from 142 in 1993 to about
would be used to improve the existing and next
250 in 1994 and 1995 (Table 2).
generation of products and services (ST, 1996b).
Key technology projects necessary for the economy
The target of 40 RSEs per 10,000 workers was
would be funded for up to over 50% of total cost.
achieved in 1992 (Table 2). GERD had more than
Incentives would be provided for industries to
doubled, reaching S$1.37 billion in 1995 from
acquire technologies to keep them relevant in the
1990s S$572 million (Nirmala, 1996a). 64.5% was
global market (ST, 1996c). Apart from established
from the private sector. This compared favourably
industries, emerging areas, i.e. bio-pharmaceutical,
with Germanys 66.9% (in 1993), the U.S. 70.8%
environmental technology and telecommunications
(in 1994), Taiwans 50.3% (in 1994) and Japans
would also be nurtured. The allocation of funds
66% (in 1993) (Chellam, 1996). However, GERD
would be left to market forces. Three targets were
as a percentage of GDP was 1.13% in 1995, far
set up: GERD as 1.6% of GDP, accumulating to
below the targeted 2%. Compared to 1991, 1995s
total S$11-12 billion; the private sector contributing
GERD had gone up by 75% (Lee & Kee, 1996),
two thirds of it; and 65 RSEs per 10,000 workers
growing at an annual compound rate of 15%, which
(ST, 1996b & d).
was high compared to most other countries.
Therefore, the failure to reach this target was
Ten months after the Plan was launched, the Asian
imputed to the faster than projected GDP growth
economic crisis occurred. Singapores 1998
(ST, 1996a).
economic growth was only 0.3% (Xinhua, 1999);
unemployment rate increased to 4.4% (Xinhua,
Singapore was ranked the first and second for
2000) from 1997s 2.1% (CC, 1999). The Singapore
growth in business sector R&D expenditure and
dollar was devaluated by about 20% during that
R&D personnel respectively by the 1995 World
periods darkest days (Drexhage, 1999). A 5.4%
Competitiveness Report (Koh, 1995), and the most
economic growth in 1999 showed the signs of
competitive economy by the World Economic
recovery, which brought down the unemployment
Forum in 1996. It was crowned the Worlds Best
rate to 2.9% (Xinhua, 2000).
City for Business and the Best City in Asia to work
and live in by Fortune in 1996 (SEDB, 2000).
However, Singapores investment in R&D did not
slacken. It grew from over S$1.7 billion in 1996 to
The Second National Technology Plan
S$2.1 billion in 1997. 66% was from the private
sector, up 3% over 1996 (ST, 1998b). 1998s GERD
The second national technology plan, the National
was 1.76% of GDP, surpassed the targeted 1.6%. It
Science and Technology Plan (1996-2000), was
reached 1.94% in 1999. Patent applications
launched in September 1996 (ST, 1996c; TST,
increased from 242 in 1995 to 701 in 1999, growing
1996a). Its vision was for the country to build a
at an annual rate of 31% on average. On the
world-class science and technology base in the
manpower front, the target of 65 RSEs per 10,000
following 10 to 15 years in the fields that were her
workers was also surpassed in 1998. The figure was
strengths (ST, 1996b). Focuses spelled out were
68.8 in 1999 (Table 2).
(Blond & Mathi, 1996):
The living standard in Singapore rose to S$31,000
Building indigenous technological capability by

(US$18,452) in 1998 (Wang & Zhu, 1999). The
investing more resources in universities and
country was labelled as having the best high-tech
research institutes for them to support and seed
infrastructure in Asia by the 1998 survey of the
industrial projects;
Political and Economic Risk Consultancy (ST,
Supporting private sector R&D with sufficient

1998a). It has bagged top spot in the Global
funds to co-share their risks through the existing
Competitiveness Report of the World Economic
incentive schemes;
Forum for four years since 1996 (SEDB, 2000).
Developing manpower by encouraging more

students to enrol in science and engineering
courses and to do postgraduate work.
Implications and Conclusion
The Plan estimated that at least 5,000 more RSEs
would be needed by 2000 and another 7,000 by 2005
Analysis of technology performance and policies has

traditionally focused on inputs and outputs (Stevens,
1997). The key input indicators include GERD and
the number of research personnel. The number of

patents is one of the key output indicators. They are
standardised across the OECD (Organisation for
Economic Cooperation and Development) countries
(OECD, 1997). Given the positive correlation
between research expenditure and added GNP
(Ewell, 1955), it wont be surprising for the above
input indicators being used.
Singapores government has been actively guiding
the countrys economic development. The most
significant moves made during the past few decades
were: (1) directed the country away from labourintensive industrial activities to high value-added
and knowledge-intensive activities at the turn
between the 1970s and 1980s; (2) repositioned the
country to a knowledge-based economy at the turn
between the 1980s and 1990s; and (3) formulated
the National Technology Plans to facilitate the
change in the 1990s. The role of knowledge in the
economic development has been enlarged gradually
until the first National Technology Plan turned it
into the engine driving the country on the track to a
highly competitive economy.
Singapores technology drive proved successful. The
secrets of her success are as follows:
Formulating
market-oriented
technology
policies. Singapores government has been
conducting R&D survey annually since 1978
(Aggarwal, 1995b), which has been the basis for
formulating technology policies and plans.
Besides, the first National Technology Plan was
the result of 200 experts brainstorming, rather
than the ideas of a dozen of policy makers and
consultants. During the process of executing the
Plan, there were Technology Market Research
Committees carrying out specific tasks in the
fields selected (NSTB, 1992). All these ensured
that measures applied were practical.
Supporting industrial R&D. Singapore started

encouraging industrial R&D since the early
1980s. 10 years later, the first National
Technology Plan made it clear that government
support and funding would be given primarily
to projects which had industrial applications. In
1996, the second Plan announced that 70% of
its budget would be used to improve the existing
and next generation of products and services.
Such a funding direction automatically
encouraged more companies to engage in R&D
and closer cooperation between industries and
public research bodies. It helped shorten the
time of technology commercialisation for both
public research bodies and industries.
Therefore, three birds were killed with one
stone: public research bodies became more
effective; industries became more innovative;
and the returns of investments in R&D were

enlarged.
Developing R&D manpower. Singapores
government has tried every means to encourage
people to take up R&D as a career since the
early 1990s. In order to meet the increasing
demand for RSEs, the government even
quantified the target of recruiting international
talent, 200 RSEs per year. This led to the
leapfrogging effect in climbing the ladder of
technology, which can be explained by the
nature of knowledge.
Knowledge
has
two
dimensions:
codified/explicit
knowledge
and
tacit
knowledge (Nonaka & Konno, 1998; Teece,
1998). Codified knowledge can be expressed in
words and numbers and shared in the form of
data, scientific formulae, specifications,
manuals, and the like, thus can be readily
transmitted between individuals formally and
systematically. Tacit knowledge is highly
personal and hard to formalise, making it
difficult to communicate or share with others. It
is deeply rooted in an individuals actions and
experience as well as ideals, values, or emotions
(Nonaka & Konno, 1998). Codified knowledge
is the material, the know-what; tacit knowledge
is the tool, the know-how, by which know-what
is
captured,
assimilated,
created
and
disseminated (Paye, 1995; Fahey & Prusak,
1998). In this sense, having the people with the
tacit knowledge is more important. They
effectively transform knowledge into the power
for economic growth.
Having a highly authorised agency to
implement the national technology plan.
Singapore enlarged and upgraded her Science
Council into a statutory board, the National
Science and Technology Board, to implement
the first National Technology Plan. It took over
the role of central authority for research funds
from various government bodies. The
combination of political and financial power
was the foundation for the Board to carry out its
mission
effectively.
Meanwhile,
by
monopolising research funding, wasteful
duplication of research efforts was minimised,
which is particular important for technology
policies (Marceau, 1997).
Having gone through three-stage development, from

creating as many jobs as possible to applying
technologies as widely as possible, and to targeting
the leadership positions in the technological fields of
her strengths, Singapore established herself as the
most competitive economy in the world. Singapores
experience confirms that competitions in the present
economic arena are fuelled by knowledge. Only by
turning a country into a system of continuously

innovating and using knowledge, can the country be
Chng, G. (1987) The Singapore way: acquiring
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Oct.
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Chng & Tong (1987) Govt giving new incentives for
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Yuehua Zhang
Centre for Research Policy
Faculty of Commerce
University of Wollongong
NSW 2522, Australia
E-mail: yzhang@uow.edu.au
E-mail: yuehua_zhang@hotmail.com
Facing the challenge of social purpose enterprises: The strategy of a

Bangla-deshi NGO in combining social and economic benefit
Marjolein B. M. Zweekhorsta , Jacqueline E.W. Broerseb and Joske F.G. Bunders c
a
Biology and Society, Vrije Universiteit, The Netherlands

c
Abstract
Business techniques and expertise are increasingly
applied to tackle social problems. This has given
rise to a new breed of organizations social purpose
enterprises. These organizations face the challenge
of generating earned income while at the same time
pursuing a social mission. In this paper conditions
are described that are important for the success of
social purpose enterprises. These conditions are
then compared with the experience of a non-profit
organization in Bangladesh Grameen Krishi
Foundation (GKF). However, whereas most social
purpose enterprises either create employment for the
poor, act as a trading houses or supply credit, GKF
primarily provides non-financial inputs to their
beneficiaries, the small-scale, resource-poor
farming community. It is found that most of the
conditions described in literature regarding social
purpose enterprises in general are relevant for GKF
as well. However, the case shows that social
purpose enterprises, which provide inputs to their
intended beneficiaries, are more constrained in
reaching their social goals; they run a very real risk
of ending up reaching only the easier to serve
clients. The strategy followed by GKF is to be highly
creative and innovative on the one hand, and to
establish highly standardized working procedures on
the other hand, while the board of directors
monitors the balance between business and social
objectives. Insights in the management of the double
bottom line by an NGO providing goods and
services for their clients not only provides
interesting lessons for social purpose enterprises in
general but also for regular businesses.
Keywords
Social purpose enterprise; sustainability; social
responsibility; management strategy
Introduction
The issue of profit making combined with social
benefit is currently high on the political agenda
(Emerson and Twersky, 1996; Kanter, 1999).
Economic, social and political pressures blur the
boundaries between the for-profit and non-profit

sector. Entrepreneurial approaches are increasingly
applied to solve social problems (Dees, 1998b;
Mitchell, 2000; Reis, 1999; Ryan, 1999). After all,
what would be more sustainable than an
organization with a social mission, which can cover
operating costs by generating earned income. These
so-called social-purpose enterprises, however, face
the enormous challenge of managing a double
bottom line meeting the dual objectives of social
impact and wealth creation (Dees, 1998b; Emerson,
1998; Emerson and Twersky, 1996; Flannery and
Deiglmeier, 2000a; Mitchell, 2000). These
initiatives are, however, generally risky and failureprone and the ideal is rarely realized.
Within the continuum of social entrepreneurship it is
much easier to either operate on the mission or the
market side of the continuum. On the mission side
we find traditional non-profit organizations that are
modestly expanding into entrepreneurial activity.
Some non-profit organizations are adopting
management approaches of the commercial sector to
run their organization more effectively, or are
creating some activities to generate additional
income by selling products and services, or
developing a corporate partnership, while remaining
primarily dependent on philanthropy funding. On the
market side of the continuum of social
entrepreneurships, non-profit organizations have
established for-profit subsidiary corporations. These
organizations have wealth creation as their primary
objective and serve well-off customers, channelling
the earnings back into their parent organization,
which runs the social programs (Emerson, 1998). At
this end, we also find businesses integrating social
responsibility into their operations. Particularly large
corporations, such as Shell, IBM, American Express
and Marriott International, increasingly focus on
those areas traditionally dealt with by non-profit
organizations (Hart, 1998; Kanter, 1999). Instead of
simply giving money to charity, these companies
invest their human resources and knowledge base to
enter into neglected parts of the social sector in a
more committed and sustainable way. They have

realized that solving social problems can meet
solutions tried as from its inception in 1991.
business objectives (Hart, 1998; Kanter, 1999).
Before describing and analysing the case study, we
go into more detail of theorizing about the issue.
In this paper we specifically focus on the rather rare
Unfortunately in our case, hardly anything can be
and risky but potentially highly rewarding breed
found in literature on social purpose enterprises that
of social-purpose enterprises: the (not-) for-profit
provide non-financial inputs to their beneficiaries 1.
organizations that have the explicit purpose to use
In section 2 of this paper, we therefore describe the
business techniques and expertise to solve social
conditions and corresponding strategies that
problems. Mission-related impact is the central
researchers have found to be particularly crucial for
criterion for success, while at the same time wealth
the success of social purpose enterprises. In the last
creation is essential as a means to the social end
section we compare these findings with our case
(Dees, 1998b). Emerson (1998) calls them the
study.
delicate hybrids; these enterprises address social
problems, fill gaps in the private market and remain
Managing the double bottom line
responsive to community needs. They aim to run
Dees (1997) points out that seven out of ten new
self-sufficiently on an operating-expense basis (their
businesses fail within eight years. Even the ones that
earned income covers all operating expenses) or to
survive often struggle financially for years, piling up
operate fully commercially (revenues covering all
losses before they break-even and start making a
costs). Besides earned income these organizations
profit. Making a success of a social purpose
also receive to a minor extend donations and
enterprises is even more difficult, because of the
generally loans (Dees, 1998a; Reis, 1999). In most
constant battle between social and profit goals.
cases social purpose enterprises start small and grow
Emerson (1998: 6) estimates that for every
through a continuous process of innovation,
successful venture, there have been a significant
adaptation and learning (Dees, 1998b; Mitchell,
number of failures. But with every new initiative,
2000). These organizations face an interesting and
experience is gained and more and more lessons are
challenging dilemma in managing a double bottom
exchanged and compiled.
line. Dees (1998a: 66) formulates this dilemma as
follows: On the one hand, they will need to act like
Although there is no single model for success in this
businesses by preserving their flexibility and by
area, the many experiences and lessons learned point
being willing to cut losses and search for new
towards a limited set of essential conditions which
sources of revenue. On the other hand, they will
when fulfilled can raise the odds of success
have to do so within the constraints of their
significantly.
These
include
appropriate
mission. This forces them to invent and experiment
organizational capacity, good management, portfolio
with innovative strategies.
of programs and fees, good capital mix and
availability, and management of outside relations.
Social purpose enterprise are quite diverse. All have
in common that they pursue a vision of economic
Appropriate organizational capacity
and social empowerment by providing expanded
opportunities for those on the margins of the
The social purpose enterprise should be organized in
economic and social mainstream (Reis, 1999), but
such a way that it is able to successfully manage
the way in which they operationalise this vision
potential mission dissonance. In literature we have
differs considerably. Firstly, there are the seemingly
found the following important elements (Flannery
ordinary small businesses whose main purpose is to
and Deiglmeier, 2000b):
train and provide jobs for the hard-to-employ work
1. Creating and managing one organizational culture
force (Emerson, 1998; Flannery and Deiglmeier,
that brings together the best of both non-profit and
2000a). Secondly, we find trade organizations.
for-profit world:
These organizations buy products or raw materials
participatory management vs. authoritarian;
from poor farmers or micro-entrepreneurs, which are
quality vs. quantity;

then sometimes after additional processing
thoughtful analysis vs. quick action;

channelled to rich consumer markets (Alter, 1999).
entrepreneurial methods vs. bureaucratic

Thirdly, there are those organizations that provide
methods (risk tolerance vs. minimizing risks);
in-puts (financial or non-financial) to their
personal relationships vs. more distant

beneficiaries against a fee. These include the wellrelationships; or
known for-profit community banks.
In this paper we analyse the strategies in managing
the double bottom line by a non-profit organization
1 Providing non financial input to the poor is
Grameen Krishi Foundation (GKF). GKF provides
important if they cannot purchase the goods and
agricultural products and services for the poor in
services necessary to create added value on the
north-western Bangladesh. We address the
market.
difficulties this organization encountered and the
creativity and innovation vs. stability and

consistency.
2. Creating a vision for the social purpose enterprise
that embraces both cultures and reinforces the dual
objectives (Alter, 1999; Flannery and Deiglmeier,
2000a). According to Flannery and Deiglmeier
(2000b: 17) a vision paints a picture, sets
parameters and acts as a guiding force that helps
managers make sense of the day-to-day
circumstances they encounter. This implies that
besides the usually easy to set business goals, the
social goals must also be spelled out and methods
for measuring social impact must be in place.
3. Building a flexible learning environment that
promotes
innovative
strategies
to
arising
opportunities and threats (Alter, 1999; Flannery and
Deiglmeier, 2000a). Processes and products are
continually retooled based on feedback from lower
operational levels.
4. Establishing clear roles and responsibilities for all
staff, and delineating clear reporting lines (Alter,
1999; Flannery and Deiglmeier, 2000b).
5. Setting up a plan for capacity building (Emerson,
1998; Alter, 1999). Specific expertise should not
only be attracted in the traditional form of
consultants but also in the form of knowledge
transfer aimed at genuinely increasing the
organizations capacity to engage in the task on its
own in the future. This will involve networking and
staff development.
6. Setting up a plan for R&D (Alter, 1999). Products
and services need to be improved and new ones
developed in response to changing market forces and
customer desires. Therefore budget allocation
usually are needed for R&D, including technical
expertise, personnel, equipment, experiments, etc.
Good management
Social purpose enterprises need skilled and
committed managers able to address the double
bottom line of both social and financial outcomes in
order to be successful (Alter, 1999; Emerson 1998;
Flannery and Deiglmeier, 2000b; Majeska, 2000).
These so-called mutant managers are still rare and,
thus, hard to find; working in a dual environment
requires more skills, energy and responsibility than
working in a single goal environment (Flannery and
Deiglmeier, 2000b). This implies that attention
should be paid to provide targeted training
opportunities to both top and middle level managers,
and appropriate financial compensation and good
secondary working conditions. A clear vision and set
of objectives set out by a governing board and top
management also makes life easier for managers.
Portfolio of programs and fees

Operating costs are increasingly to be covered by
earned income (Dees, 1998a). Social-purpose

enterprise often start with a simple program, but
quickly diversify in order to make the enterprise
more sustainable. Most social purpose enterprises
experiment with new products and services. Many
use the strategy of cross-subsidization between
programs and clients/customers (Dees, 1998a). For
example the programs specifically addressing the
intended beneficiaries are subsidized by the
programs which make profits by aiming at richer
customers and consumer markets. In this respect
diversified fees are usually also established:
discounted fees, deferred payments (loans/credit),
and/or group payment (using membership fees
and/or insurance schemes) for the poor clients.
Good capital mix and availability

Social purpose enterprises, particularly the ones
registered as non-profit organization, face the
challenge of securing adequate funds for start up and
growth. The capital market is not well developed for
the non-profit organizations. Since these enterprises
cannot provide individual investors with the same
financial returns as the for-profit businesses can,
they have no access to equity investment (Emerson,
1998). Consequently, many social purpose
enterprises are significantly undercapitalised. To
have even a modest hope of success, the social
purpose enterprise must be able to access sufficient
financial support to adequately cover costs related to
start up and growth of the venture (Emerson, 1998;
Majeska, 2000). The start up phase is usually
financed by grants and to a limited extent by loans
(often the enterprise has very limited assets with
which to secure significant sums of money through
loans) (Dees, 1998a; Emerson, 1998; Reis, 1999).
When the business grows, the enterprise needs to
invest further. Various sources of funding are
available at this point: program-related donations,
recoverable grants (no interest loans), programrelated investments (below-market rate loans), and
various forms of commercial debt (including lines of
credit and fixed-rate loans). Social purpose
enterprises usually need committed and long-term
funding partners willing support the organization not
only financially (Emerson, 1998).
Management of outside relations

Another important condition is to pay explicit
attention to the management of outside relations,
such as customers, clients (beneficiaries of the social
mission), suppliers, competitors, consultants (third
party advisors focused on specific projects or
topics), funders, volunteers and third-party partners
(organizations with whom the enterprise has a
collaborative professional relationship) (Portis and
Majeska, 2000). Social purpose enterprises are a
relatively easy target for outside criticism. Donors,
private and non-profit sector and clients often view

social purpose enterprises with a certain level of
years GKF made significant losses. From 1994 the
distrust; are they genuinely interested in pursuing the
losses were reduced due to higher sales (more
social cause or at the end of the day will they turn
diversified activities) and reduced costs (lower
out to be common for-profit businesses after all. The
personnel costs). Most new activities were financed
business community is uncertain whether to take
through program-related donations and investments.
social purpose enterprises seriously and therefore are
In 1998 GKF made its first profit of 113.750 US$,
reluctant to take them up in their networks. Nonand the income of the organization consisted of 80%
profit enterprises are sometimes viewed as unfair
earned income and 20% donations, grants and
competitors (because of their tax-exempt status).
program-related investments (Shah Alam, 1998).
There is, thus, a strong need to clarify the dual
Because of the unique relationship with the Grameen
objectives of social and economic benefit. Only by
Bank, GKF has been able to secure adequate funds
being open and explicit about the vision, objectives
(below-market rate loans) whenever liquidity
and realistic expectations can these enterprises hope
problems arose.
to manage the double bottom line in interaction with
outside relations. The sustainability of the enterprise
Organizational structure
can be further improved by establishing long-term
GKF has set-up an elaborate organizational
relations with committed investors any individual
structure, based on the concept of the Grameen
or organization willing to invest money, time and
Bank. The organization has a very bureaucratic
expertise in the enterprise (Emerson, 1998; Majeska,
structure with a charismatic leader. The management
2000). These allies provide support based on
of GKF consists of a board of directors and the
significant levels of trust and commitment to the
executive authority. The board of directors decides
vision of the social purpose enterprise.
on the overall policy and programs of GKF, and
consists of a chairman (the Managing Director of the
The Grameen Krishi Foundation2
Grameen Bank) and eight directors3. The managing
The Grameen Krishi Foundation (GKF) was
director of GKF, as chief executive, guides the
established in 1991 by the Grameen Bank. The
planning and overall implementation of the program
Grameen Bank is a community bank which provides
through the divisions located at head office and the
loans and credit to the poor in Bangladesh. The
different field-offices. The divisions at head office
Grameen Bank became involved in Deep Tubewells
control the targets of the field offices, supply the
(DTWs) on a significant scale in 1987 when it
inputs, and run special programs in the regions. The
acquired over 2,500 DTWs in Tangail and in the
field offices are located in several regions. These
greater Rangpur and Dinajpur region, from the
regions work independently of each other and are
Government of Bangladesh. At first these wells were
subdivided into units and farms.
managed under the Grameen Agricultural Project
(GAP), but because the large differences between
The farms and units form the operational base of
managing a bank and an irrigation project a separate
the organization; they are directly responsible for
organization was founded, the Grameen Krishi
implementation of the GKF program. GKF defines a
Foundation. GKF was set up as an autonomous Nonfarm as the area (around 50 hectares) serviced by a
Government Organization aiming at poverty
DTW. GKF operates the farms with participating
alleviation, self sufficiency in food production, and
farmers on partnership basis. In general GKF has the
effective utilization of agricultural resources in
responsibility of providing irrigation water (and later
seven regions in the North-Western part of
also other in-puts). The farmers have the
Bangladesh at a self sustaining basis. Currently,
responsibility of farm operations. In return, the
GKF serves a total number of 250,000 farmers in an
harvested crops are shared as a fixed quantity or as a
area of 125,050 acres (Shah Alam, 1998).
certain percentage of the produce. The farm manager
is responsible for operating the farm. He is
Capital
supervised by a unit manager, who supervises eighth
to fifteen farm managers. The regional manager
The start up phase of GKF was mainly financed by
supervises four to 13 unit managers. During monthly
four donations from the United Nations Capital
meetings at head office the regional managers
Development Fund (UNCDF). In addition GKF
discuss the progress with the executive authority.
received below-market rate loan from its parent
organization, the Grameen Bank. During the first
Data on GKF have been obtained by the authors
during the period 1994-2000 through interviews,
literature review and participant observation.
Various have previously appeared. The most
recently being; Zweekhorst et al, 2000
2
Managing Director of GKF, four managers of the

Grameen Bank, two former government officials and
one senior researcher of a public research institute.
3
Human resource management

During the first years GKF was staffed by
employees from the Grameen Bank (721 out of a
total number of 1132 employees) on a temporary
basis. To strengthen the agricultural and irrigation
engineering expertise, GKF contracted consultants
in extension, seed production, women in
development and water management. To reduce the
need for these expensive consultants and to employ
cheaper employees than those of the bank, GKF
started to train its own employees and replace the
consultants and the bank employees. People having
finished secondary grade were trained to become
farm manager and people having (at least) a BSc
degree were trained to become unit manager. The
newly recruited farm and unit managers received a
two-years training course followed by a probationer
of one year. During this course the new GKF
employees familiarize themselves with the
objectives, policy, decisions and working
procedures, which are as much as possible
standardized. In 1998 almost all functions were
taken over by staff employed by GKF out of the
total number of 1015 staff members, 910 were
employed by GKF. However, the higher
management positions are still taken up by former
Grameen Bank staff.
Diversification of programs and fees

Already within two years, after its inception the
management of GKF discovered that the
organization could never become self-sustainable by
the way it was operating at that time. The board of
directors decided to close down several highly
unprofitable farms and to improve the financial
performance of the remaining ones. In addition,
GKF established several programs to diversify its
products and services. Below all programs currently
run by GKF are briefly described.
Programs for the (nearly) landless

GKF set up different activities for this group.
Firstly, GKF has an employment program
through which it employs landless as guards,
land labourers on the different GKF agricultural
production and processing facilities (nurseries,
crop and livestock farms and factories).
Secondly, GKF established income-generating
programs for the landless. In these programs
landless obtain agricultural produce from GKF
(on credit) and sell this on the local market, or
provide agricultural equipment at a rental rate
with which the landless can work for thirds.
Finally, GKF established a so-called mortgaged
program. During 1988-89 many small-scale
farmers became functionally landless because
they had to lease out their land due to natural
disasters of that year. Within the framework of
this program GKF pays the entire amount for
which the land has been mortgaged and in
return the farm family cultivates the land in a

sharing system. Usually, after three years, the
family resumes full ownership of the land.
Credit program
In March 1996, GKF launched the credit
program specifically targeted at small-scale
farmers owning 0.5 to 3.0 acres of land, who
may take up credit for a wide variety of
agricultural activities. At that time this group of
farmers was not eligible for credit from other
NGOs in Bangladesh, while it makes up about
40% of the families in Bangladesh (Shah Alam,
1998). The program is based on Grameen
Banks well established system involving loans
to individuals in groups of five men or women
of the same social status, who take a collective
responsibility for repayment. Every group has a
group-leader, who has the overall responsibility
of the group. The loans vary between 50 75
US$. The loan increased with a service charge
must be refunded within a period of 50 weeks in
weekly instalments. In addition the members
have to deposit 5% of the total amount of loan
as well as a weekly contribution of 3 Thaka
(0.075 US$) to build up a savings fund as
insurance.
General input supply programs
It was observed that many farmers faced
difficulties in obtaining agricultural inputs, such
as seeds, fertilizer, pesticides and technical
advice. Therefore, GKF decided to purchase
inputs from suppliers and sell these to farmers
in the same way as irrigation water (share
system). However, GKF staff encountered
problems in obtaining sufficient amounts of
good quality planting material themselves. In
response, GKF started its own seed production
program, initially only producing seeds of
cereal crops, while later also including
vegetable seeds. Within this program GKF uses
two systems. Firstly GKF leases or purchases
land on which wage labourers (landless)
cultivate a crop for seed production. Secondly,
farmers are contracts to cultivate a certain crop
for seed production on their own land, GKF
guaranteeing to buy the produced seeds against
a fixed price. In addition, GKF recently started
its own tissue culture laboratory, initially only
producing banana plantlets. Furthermore GKF
provides technical advice to farmers. In this
respect GKF has set up demonstration farms to
show farmers the cultivation of different crops
in order to make farmers aware of new crops
and new cultivation practices.
Programs for processing and marketing
agricultural produce (and other goods)
Also this program consists of various activities.
The produce GKF obtains through its share
system has to be marketed. Only produce of so-
422

called non-perishable crops can be used as
Department of Biology and Society). In May 1997
repayment in the share system. Most of this
the team of the VUA started training the members of
produce is directly sold to wholesalers. Some of
the TA unit. The unit was trained in identifying the
the produce is processed by GKF wheat in its
needs and opportunities of small-scale farmers, in
own cookies and bread factory, and cotton in its
identifying promising innovation, and conducting
own weaving mill before being marketed
experiments with selected innovations on their own
through GKFs supermarkets and drapery shops
plot and assisting small-scale farmers in trying out
focused on the relatively rich consumer
these innovations on their land. A wide variety of
markets. GKF is currently in the process of
experiments have been conducted so far and some
establishing a food processing plant to produce
innovations have been successfully adapted for
jellies.
application by small-scale farmers.
Social impact
GKF has not put in place explicit methods for
measuring the social impact of its activities.
However, two studies have been conducted to
evaluate the socio economic impact of GKF on rural
households (BIDS, 1996) and to evaluate specific
activities (Zweekhorst et al, 1996 and 2000). The
study by BIDS concluded that GKF activities have
resulted in higher income among both participating
farm households and landless (particularly through
job creation). Zweekhorst et al (1996 and 2000),
however, found that the small-scale farmers rarely
benefit from GKFs input programs. Due to the
pressure to generate sufficient revenue to become
self-reliant, GKF took the easy way in its general
input supply programs, mainly servicing mediumscale farmers (owning about 5 acres of land). Since
medium-scale farmers require less operating costs
(buying larger quantities and more inputs) and
produce higher yields (implying higher income for
GKF given the applied share system), they are more
profitable for GKF than the small-scale farmers.
Although medium-scale farmers can still be
considered rather poor according to international
standards, they are clearly the easier to serve
clients. Besides being less profitable in the sense
mentioned above, various studies have shown that
servicing small-scale farmers is also costly because
of the time-consuming process of identifying this
client group and assessing their needs and
opportunities (e.g. Chambers, 1997; Pretty, 1998).
Research and development

In 1996, GKF has established a R&D department
the Technology Assessment (TA) Unit in order to
identify, select and test suitable technologies for
small-scale farmers. Innovations in crops and
cultivation are obtained by GKF from the
Bangladesh research institutes and then distributed
among farmers. However, management of GKF
realized that many of these innovations are not
appropriate for application by small-scale farmers
and need to be adapted to their specific production
conditions. Since GKF lacked the capability to
establish and run an R&D department, it established
a collaboration with the Vrije Universiteit
Amsterdam (VUA), the Netherlands (the
Some difficulties were faced in the establishment

and operation of the TA unit. Firstly a major
problem was to create a flexible and open learning
environment within a more bureaucratic institutional
setting. The staff training turned out to be quite
time-consuming, since the needed skills clearly
contradicted with the normal standardized
procedures set up and trained within GKF.
Furthermore, the attitudes of the trainees proved to
be constraining for the application of participatory
and interactive methodologies4. Another problem
which came to the fore more recently is the
relatively high turnover rate of TA unit staff. The
trained unit members have acquired skills and
attitudes that proved to be highly valuable to other
organizations as well. Offering higher salaries
international development organizations (e.g. CARE
international) have been able to attract several TA
unit staff members. In response, the salaries of the
TA unit members have been slightly increased, but
can still not compete with those offered in these
organizations. Both difficulties have not yet been
addressed sufficiently. Furthermore, the TA unit still
has to prove itself as being a good investment for
GKF as a whole.
Conclusions and discussion

Many strategies applied by social purpose
enterprises in managing a double bottom line are
locally and culturally inspired, but our paper
demonstrates that the findings of (predominantly
American) social purpose enterprises, described in
section 2, form a useful framework for analysing and
interpreting the activities of a NGO found in a
developing country, which is working under very
different circumstances. In our case study we found
some conditions of major importance. Good
management can never be underestimated. The
managing director was crucial for making sure the
organization could survive. The board of directors
set the main objectives and vision of the
The status difference between educated

Bangladeshi and
illiterate small-scale farmers
constrains a direct, open and interactive dialogue
between the TA unit and their clients.
4
organization and kept an eye on the relative

importance of the social and business goals. In the
initial difficult periods, the activities that made the
organization survive were favoured over social aims,
while more recently the focus is increasingly on the
social aims. The relaxation of social objectives was
essential in guaranteeing the survival of GKF.
However, continued focus on the business goals
would change the organization in a normal business
with one bottom-line and therefore the board of
directors is now emphasizing the social goal of the
organization.
We have also seen the consequences of managing a
double bottom line for organizational capabilities in
GKF. The continuous need of being creative and
innovative on the one hand, and the realization of a
strongly controlled standardized working procedure
to cut costs on the other hand, puts specific demands
on the organization and poses a real challenge.
Basically all high tech modern companies face this
challenge, but in these organizations all activities
can be evaluated from the perspective of profit
making. In the case of GKF a business has to be run
that is not primarily looking for profitable activities
but for those activities that support the poor in
creating value themselves. GKF deliberately wants
to focus on activities, which in other organizations
would be neglected due to lack of business potential.
Our case study further shows that social purpose
enterprises, which provide inputs to their intended
beneficiaries, run a very real risk of ending up
reaching only the easier to serve clients, and thereby
reduce their social impact. In all cases, the main
strategy followed is to try to be both a better
innovator and a better manager of human and
financial resource e.g. setting up a R&D facility
and experimenting with new technical and social
innovations, while standardizing the distribution of
innovations ones proven effective in benefiting the
very poor. Consequently, GKF has become a large,
and very complex, organization.
The above case study is also interesting from the
perspective of new developments in business
strategy. For long-term survival businesses realize
the importance of social responsible behavior.
Although their main bottom-line is not questioned
they try to include social aims as well. These
companies may learn from social purpose enterprise
to manage more effectively their social objectives. It
is common place to suggest that organizations
focussing on development and poverty alleviation
should learn from business models. We, however,
want to suggest that managers of industry and
students of business studies might learn interesting
lessons while looking at certain ethically driven third
world organizations.
References
Alter, S.K. (1999) Managing the Double Bottom
Line: A business planning guide for social
enterprises. Washington, D.C.: Save the
Children Federation.
BIDS (1996) Impact of Grameen Krishi Foundation
on the socio-economic condition of rural
households.
Chambes R. (1997) Whose reality counts?
Intermediate technology publications, London
Dees, J.G. (1998a) Enterprising nonprofits, Harvard
Business Review, January-February 1998,
pp.55-67.
Dees, J.G. (1998b) The Meaning of Social
Entrepreneurship. Paper.
Emerson J. (1998) The Venture Fund Initiative: An
assessment of current opportunities for social
purpose
business
development
and
recommendations for advancing the field. San
Fransisco, CA: The Roberts Enterprise
Development Funds, The Roberts Foundation.
Emerson, J. and Twersky, F. (eds.) (1996) New
Social Entrepreneurs: The success, challenge
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in the New Millenium. San Francisco, CA: The
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2000a), pp.11-18.
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June 1999, pp 123- 132
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New Millennium. San Fransisco, CA: The
Roberts Enterprise Development Funds, The
Roberts Foundation, pp.19-38.
Mitchell, E. (2000) Getting Better At Doing Good:
A dynamic breed of entrepreneur is using
business strategies to combat social ills, Time
Select/Global Business, Vol.155, No.7, Special
issue visions 21.
Portis, C. and Majeska, K. (2000) Managing key
relationships with the rest of the world:
Lessons learned (the hard way) by social
purpose enterprises. In: REDF (ed.)See
Majeska (2000), pp.64-76.
Pretty ,J. (1998) Who Changes? Intermediate
Technology Publications, London

Reis, T. (1999) Unleashing New Resources and
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+31- (0) 20- 4447028
Fax:
+31- (0) 20- 4447027
e-mail: m.zweekhorst@bio.vu.nl
Index of authors
Ananiadou...................................................................... 128
Angulo ........................................................................... 128
Askevold.......................................................................... 44
Averweg........................................................................... 52
Ayoko .............................................................................. 60
Back ................................................................................ 68
Barker..................................................75, 134, 250, 336, 360
Bibo ............................................................................... 166
Bordia............................................................................ 106
Bowden............................................................................ 83
Bracefield....................................................................... 117
Broerse........................................................................... 417
Brown ....................................................................... 91, 227
Buckley............................................................................ 98
Bunders.......................................................................... 417
Burgess............................................................................... 1
Burton............................................................................ 290
Cecez-Kecmanovic.............................................................. 1
Chang ............................................................................ 106
Chen .............................................................................. 111
Cotton ............................................................................ 117
Cowie............................................................................. 128
Coyne ............................................................................ 354
Daly............................................................................... 134
de Bruijn ........................................................................ 368
Del Barrio ....................................................................... 128
Drew.............................................................................. 141
Easton ............................................................................ 149
Einarsen ............................................................................. 7
Elin................................................................................ 155
Erwin ............................................................................... 52
Feeney ........................................................................... 278
Fielden........................................................................... 160
Fisher............................................................................. 166
Fraser............................................................................. 173
Ghose............................................................................. 179
Gjerstad............................................................................ 44
Gray............................................................................... 220
Greenfield....................................................................... 184
Hrtel........................................................................ 60, 166
Higgins........................................................................... 243
Holzworth ...................................................................... 141
Hsieh ...................................................................... 111, 310
Huang ............................................................................ 310
Ishiyama........................................................................... 14
Jacobs ............................................................................ 187
Jennifer ................................................................... 128, 194
Jones................................................................ 261, 267, 336
Jordan ..................................................................... 201, 208
Kerr ............................................................................... 215

Kilotat ............................................................................ 220
Kirk ..........................................................................91, 227
Lafferty .......................................................................... 343
Lamm............................................................................. 347
Lawrence........................................................................ 233
Lee................................................................................. 243
Lewis................................................................................20
Mak ........................................................................ 250, 256
Martin ..................................................................... 261, 267
McCarthy................................................................. 134, 272
Miller...................................................................... 278, 385
Monks..............................................................................98
Mouly ............................................................................. 285
Mueller........................................................................... 256
Nesbit...................................................................... 290, 295
Nesdale........................................................................... 302
Neto ............................................................................... 128
Pan.......................................................................... 111, 310
Patrick ..................................................................... 315, 321
Pereira............................................................................ 128
Pinnington ...................................................................... 220
Pomery ........................................................................... 155
Poropat .................................................................... 325, 330
Ramsay........................................................................... 336
Randall........................................................................... 354
Rayner..............................................................................31
Ridge .............................................................................. 106
Roan .............................................................................. 343
Robertson ....................................................................... 347
Russell..............................................................................83
Sankaran......................................................................... 285
Sanzogni...........................................................149, 155, 393
Seigne............................................................................. 354
Sheehan ..............................................................75, 201, 360
Steenhuis ........................................................................ 368
Stewart ........................................................................... 374
Thite .............................................................................. 381
Thompson..................................................................91, 227
Troth .............................................................................. 385
Van de Vliert .....................................................................37
Westwood.........................................................................40
Wong ............................................................................. 393
Wood ............................................................................. 295
Woods............................................................................ 401
Zarkada-Fraser ................................................................ 173
Zhang............................................................................. 408
Zweekhorst ..................................................................... 417

Sheehan, Ramsay Patrick - Transcending - Boundaries, 2000

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TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS I

T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE, P ROCESSES AND SYSTEMS

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS III

INTRODUCTION OF THE PROCEEDINGS

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE , P ROCESSES AND SYSTEMS

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS V

Michael Sheehan, Sheryl Ramsay and Jeff Patrick

+61 7 3875 6574

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE , P ROCESSES AND SYSTEMS

Dr. Campbell Fraser

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS VII

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

T RANSCENDING BOUNDARIES: INTEGRATING PEOPLE , P ROCESSES AND SYSTEMS

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS IX

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS 1

The Impact of the parasite economy on corporate overhead

Evidence of the Parasite Economy

and product statistics were overstating the

Exploding legal complexity i.e. more laws and

Lobbyists of all kinds e.g. trade associations,

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

2 TRANSCENDING BOUNDARIES: I NTEGRATING P EOPLE , P ROCESSES AND SYSTEMS

The notion that lawyers like any profession will seek

international consulting firm Mercer has studied

1995 - National Transport Planning Task Force

1998 Tracking Australia another

1999 Revitalising Rail a report to the

1999 Progress in Rail Reform

Industries that are already unfairly disadvantaged by

Australian transport provides a clear example of

Political economic theory

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS 3

discussion this paper will progress within the

Anglo-American model - the interests of the

Each of the above positions generates its own

Inadequacy of Narrow Economic Measures

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

4 TRANSCENDING BOUNDARIES: I NTEGRATING P EOPLE , P ROCESSES AND SYSTEMS

example that scarce resources attract higher prices,

As the narrow commodity base of the Australian

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS 5

indicated it opposed the amendment and

The commercial position of the firm

The social position of the firm both internally

The environmental position of the firm

Impact on Corporate Overhead

investment due to a misguided view of reducing

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

6 TRANSCENDING BOUNDARIES: I NTEGRATING P EOPLE , P ROCESSES AND SYSTEMS

have no clear way of recognizing that which cannot

Possible ways forward

per annum. However as such an outcome is

Edited by M. Sheehan, S. Ramsay & J. Patrick (2000) Brisbane: Griffith University

TRANSCENDING BOUNDARIES: INTEGRATING P EOPLE , P ROCESSES AND SYSTEMS 7

to develop its own in order to reduce costs, enhance

reducing corporate overhead. Developing more trust