Poor Organizational Performance Research Articles

Strategic Responses to Poor Organizational Performance: A Test of Competing Perspectives

Two widely cited, yet disparate, theoretical views of the relationship between poor performance and subsequent organizational action appear in organizational research. The behavioral theory of the firm posits that poor performing organizations will make strategic changes in, for example, the products and services they offer. In contrast, the threat-rigidity perspective predicts rather conservative responses; poor performers are expected to rely on previous actions to reverse their poor outcomes. We examined these competing predictions using data from a regional sample of hospitals. The results offer support for the behavioral theory of the firm and no support for threat-rigidity. We derive several implications from these findings in an effort to guide future research.

Of tricks and tumors: Some little-recognized costs of dishonest use of effective social influence

Although the question of which social-influence principles and practices are most effective has long been a central focus among marketing professionals, an equally important question has received much less attention: What are the circumstances under which the use of an effective influence principle is ethically acceptable? Consideration is given to one system for determining such acceptability. It is then argued that the failure to use powerful principles of influence in ethical ways has deleterious practical consequences for both individuals and organizations. In the case of marketing organizations, the consequences take the form of tumorlike costs that are difficult to detect by standard accounting methods as the causes of poor organizational performance and profitability. © 1999 John Wiley & Sons, Inc.

Strategic responses to poor organizational performance: a test of competing perspectives

Two widely cited, yet disparate, theoretical views of the relationship between poor performance and subsequent organizational action appear in organizational research. The behavioral theory of the firm posits that poor performing organizations will make strategic changes in, for example, the products and services they offer. In contrast, the threat-rigidity perspective predicts rather conservative responses; poor performers are expected to rely on previous actions to reverse their poor outcomes. We examined these competing predictions using data from a regional sample of hospitals. The results offer support for the behavioral theory of the firm and no support for threat-rigidity. We derive several implications from these findings in an effort to guide future research.

Mental health services--maintaining strategic direction.

AIM AND KEY ISSUES: This article reviews the theoretical basis of strategic management in an attempt to provide managers with a better understanding of the underpinning concepts and consequent actions they need to take to avoid loss of control and ultimate failure. The authors argue that community care for the severely mentally ill is failing and that in part the reason for this perceived failure is a closer allegiance to primary care that has shifted the focus away from mental illness. Such a shift, coupled with poor management and a desire by Community Mental Health Nurses (CMHNs) to retain a broad focus and maintain the 'autonomy' they gain when not held in the gravitational grasp of Consultant Psychiatrists, has resulted in strategic drift. The authors suggest 10 possible reasons to explain why CMHNs currently fail to meet the needs of the severely mentally ill. Among these are a lack of explicit strategic implementation plans, professional ambivalence and self-interest, poor management of resources and conflicting demands from key interest groups. It seems that mental health services in this country have reached the point where resistance to change should be crumbling in the face of perceived failure to deliver the required services. Whilst it could be argued that a major and potent source of internal change is performance gaps, few things force change more than sudden and unexpected information about poor organizational performance.

Towards Integrating Emotions into Strategic Management Research: Trait Affect and Perceptions of the Strategic Environment

This paper describes an empirical investigation of the associations between trait negative affect and perceptions of the strategic environment. Data were collected from two samples of managers undertaking a distance learning MBA course (n = 59, n = 272). In the smaller sample, significant correlations were found between negative affectivity and perceptions of poor organizational performance and industry complexity. These results were replicated in the larger sample, after controlling for other variables. Additionally, negative affectivity was found to be related to perceived industry growth, and marginally related to perceived industry competitiveness.

Cynicism in the workplace: some causes and effects

A scenario-based experiment was employed to test seven hypotheses concerning several causes and consequences of cynicism in the workplace. The results of a 2×2×2 MANOVA revealed that high levels of executive compensation, poor organizational performance, and harsh, immediate layoffs generate cynicism in white-collar workers. Furthermore, regression analyses showed that cynicism relates negatively to intentions to perform organizational citizenship behaviors and intentions to comply with requests to engage in unethical behaviors. The study provides a first experimental investigation of an important employee attitude and indicates directions for further research. © 1997 John Wiley & Sons, Ltd.

Corporate Downsizing and Profitability in Canada

AbstractThree competing models of downsizing—the “rational,” asymmetrical/hysteretic, and institutional approaches—were tested, using data from large Canadian companies. Although none of the approaches was fully supported, it was noted that there was no consistent relationship between past profit and propensity to downsize, nor was there any consistent relationship between extent of downsizing and future profit.Résumél'auteur examine trois modèles différents duphénomène de la réduction des effectifs des enterprises, soit les modèles “rationnel,” asymétrique‐hystérésique et institutional, à l'aide de données sur diverses grandes sociétés canadiennes. Aucune des trois approches n'est complètement validée par les données étudiées. l'analyse révèle aussi qu'il n'y a pas de relation systématique entre la rentabilité antérieure et la tendance d'une entreprise à réduire ses effectifs, d'une part, ou d'autre part, entre l'ampleur des réductions de personnel et les bénéfices futurs.

A Feedback Loop Model of Postmerger Performance

Most of the research on mergers and acquisitions has focused on the organization(s) undergoing a merger. Numerous studies have observed a common syndrome marking the postacquisition period. Poor organizational performance is one of the regular symptoms of this syndrome, yet little attention has been addressed to the role of customers, whose patronage is a prime determinant of economic performance, and competitors. A case study was developed of a merger of two local organizations. Data were collected from customers and competitors, and the analysis led to a feedback loop model of customer and competitor roles in postmerger performance. Among the important observations are: (a) organizational change causes customers to change vendors, (b) the announcement of a merger fuels efforts by competitors to “steal” market share, and (c) organizational change leads to more organizational change. These dynamics are, furthermore, a function of communication between the merging organizations and their customers.

Succession as A Sociopolitical Process: Internal Impediments to Outsider Selection

Although traditional adaptive theory implies that poor organizational performance will directly increase the likelihood that an outsider will be selected to succeed a firm's chief executive, we dev...

SUCCESSION AS A SOCIOPOLITICAL PROCESS: INTERNAL IMPEDIMENTS TO OUTSIDER SELECTION.

Although traditional adaptive theory implies that poor organizational performance will directly increase the likelihood that an outsider will be selected to succeed a firm's chief executive, we dev...