Mission statement effectiveness: investigating managers' sensemaking role

PurposeThis study highlights the instrumental role of the mission statement as a tool used by managers to shape value congruence to achieve enhanced employee performance levels.Design/methodology/approachA variance-based structural equation modelling was used to analyse the data obtained from a sample of 123 managers working in private organisations in Malaysia.FindingsThe management sensemaking approach is useful in mission statement research. Managers' involvement in clarifying the mission statement to various firm stakeholders, especially employees, is the strongest predictor of value congruency between employees and the firm, leading to improved levels of employee behavioural performance. Managers can influence value congruency through two processes: (1) guiding and shaping employees' values and (2) adapting the mission statement's contents.Research limitations/implicationsFuture studies can consider the impact of managerial role modelling on employees' value alignment with the firm in longitudinal studies. Other aspects of alignment offer further research opportunities, for example, HR policy alignment and alignment of marketing and operation strategies with the mission statement.Practical implicationsManagers should move beyond treating the mission statement as a management tool. Instead, it is a firm philosophy that reflects managers' words and deeds and exemplifies their philosophical ideals.Originality/valueDespite three decades of research into the relationship between the mission statement and performance, the results have been mixed. Therefore, this study adopts a sensemaking approach to research the mission-performance relationship underpinned by the resource-based view (RBV) theory.

Linking person–organization adhocracy value congruence to creativity

PurposeThe purpose of this study is to examine the effect of person–organization (P-O) adhocracy value congruence on employee creativity using the supplementary fit theory while investigating the moderating effect of the immediate supervisor's transformational leadership.Design/methodology/approachThe study uses polynomial regression to analyze 431 employees from 47 Chinese companies.FindingsHigher levels of creativity were observed in employees whose adhocracy value was congruent with that of the organization.Practical implicationsThe practice of hiring employees with creative value or building creative culture may not trigger employee creativity if managers do not take value congruence into consideration.Originality/valueThis study introduces a new perspective on understanding creativity in the workplace. First, it contributes to work on the consequences of P-O value congruency by exploring how supplementary fit influences employee creativity. Second, it contributes to creativity research by proposing a P-O supplementary fit argument to explain the actor-context interactionist model of creativity.

Analisis Faktor Persepsi Nasabah Bank Konvensional dan Switching Barriers Ke Bank Syariah

This research is to identify and analyze the factors of conventional bank customers' perception in Pondok Pesantren community in using Islamic banking services and identify and analyze switching barriers factors to become sharia bank customers for the Pondok Pesantren community. The paradigm in this research uses quantitative research with a CFA approach. The results showed that the factors that become conventional bank customers' perceptions in using Islamic banking for the Islamic boarding school community are comprised of three perceptions, namely customer perception variables consisting of a cognitive dimension, affective, and connectively. This means that respondents already have a dominant perception of the Islamic banking system. This is indicated by that they have an understanding and knowledge of the existence and sharia banking system in Indonesia, although some of them use conventional banking services. There are several factors causing switching barriers to become customers of Islamic banks in the Pondok Pesantren community, from the loading factor value it is known that the dimension of value congruency is the dominant dimension in forming switching barriers variables in conventional banks.

Person-Culture Fit and Employee Commitment in Banks

This paper makes an attempt to ascertain the relationship between socialization, person-culture fit, and employee commitment. In other words, it seeks to determine whether the organizations high on socialization scores will experience high value congruency⁄person-culture fit and also whether high value congruency leads to employee commitment. In the recent past, the concept of culture has gained wide acclaim as a subject of study and reflection. However, the parameters of culture are so intricate that they cannot be outlined or defined. While contemporary research fully endorses the view that culture is an internal variable and can be conceptualized in terms of widely shared and strongly held views, the researchers have not empirically investigated the relevance of social learning in permeating these values into the organizational members. This paper seeks to overcome this limitation and also deviates from the earlier research studies undertaken in this field in the Indian context by exploring whether the person-culture fit notion or the integration of organizational values and individual preferences for those values could predict employee commitment. This study was conducted on six banks including two public sector (banks 1 and 2), two private sector (banks 3 and 4), and two foreign banks (banks 5 and 6) located in Delhi. It used three wellestablished scales — organizational culture profile (OCP), organizational commitment scale (OCS), and socialization practices scale (SPS) — to collect data from two separate groups of respondents through convenience sampling procedure. The first group consisted of 135 newly recruited employees who were asked to complete the OCP indicating their individual preferences on the given 54 value items and OCS for ascertaining their commitment. The second group comprised of 69 senior employees of the banks studied. An overall profile of the culture of each bank was developed by averaging the individual responses of this group. These were then used to calculate the person-culture fit scores for the newly hired employees. The main findings of the study are as follows: Moderate to strong person-culture fit score was found in one private and two foreign banks and weak to moderate person-culture fit score was found in rest of the banks studied. Two foreign and one private bank scored high to moderate on socialization practices respectively. The other two public and one private bank scored low on this dimension. Banks high on value congruency and socialization scores showed significant correlation between person-culture fit and normative commitment. Banks low on value congruency and socialization practices exhibited insignificant correlation between person-culture fit and normative and instrumental commitment. On the whole, the study indicates the need for firms, especially public sector, service-oriented firms, to pay attention to socialization practices which would result in strong cultures and employee commitment.