Management Sciences and Quantitative Methods Commons^™

Introduction To Leadership Quarterly Special Issue On Leadership And Complexity, Russ Marion, Mary Uhl-Bien

Leadership Institute: Faculty Publications

Eric Bonabeau & Christopher Meyer (2001) have devised a simple “cocktail party” game that they use to introduce complexity dynamics. Imagine a party in which everybody present is instructed to follow a simple rule: Silently select two people at random, A and B, and position yourself so that A is always between you and B. Under these conditions, the party-goers will wander around the room, forming small, transient groups and meeting a number of people. Then halfway through the party the rule changes: Instead of positioning A between yourself and B, position yourself in the middle between A and B. …

The Role Of Leadership In Emergent, Self-Organization, Donde Ashmos Plowman, Stephanie Solansky, Tammy E. Beck, Lakami Baker, Mukta Kulkarni, Deandra Villarreal Travis

Department of Management: Faculty Publications

As complex systems, organizations exist far from equilibrium where the ongoing interaction of system components leads to emergent and self-organizing behavior. What, then, is the role of leadership in systems where change often emerges in unexpected ways? In this paper, we build on the work of Marion and Uhl-Bien who suggest that in complex systems leaders enable rather than control the future. While traditional views of leadership focus on the leader’s responsibility for determining and directing the future through heavy reliance on control mechanisms, we offer empirical support for a different view of leadership based on a complexity perspective of …

Emerging Positive Organizational Behavior, Fred Luthans, Carolyn M. Youssef

Leadership Institute: Faculty Publications

Although the value of positivity has been assumed over the years, only recently has it become a major focus area for theory building, research, and application in psychology and now organizational behavior. This review article examines, in turn, selected representative positive traits (Big Five personality, core self-evaluations, and character strengths and virtues), positive state-like psychological resource capacities (efficacy, hope, optimism, resiliency, and psychological capital), positive organizations (drawn from positive organization scholarship), and positive behaviors (organizational citizenship and courageous principled action). This review concludes with recommendations for future research and effective application.

Shared Leadership Theory, Craig L. Pearce, Jay A. Conger, Edwin A. Locke

Department of Management: Faculty Publications

Edwin Locke contributed a chapter to the critique section of Craig Pearce and Jay Conger’s (2003a) edited book, Shared Leadership: Reframing the Hows and Whys of Leadership, published by Sage. In this letter exchange, they continue their dialogue on this important topic. They focus in particular on clarifying what each means by “shared leadership” and on what shared leadership can and should look like at the top of organizations.

Who Shall Lead? An Integrative Personality Approach To The Study Of The Antecedents Of Status In Informal Social Organizations, Peter D. Harms, Brent W. Roberts, Dustin Wood

Department of Management: Faculty Publications

The effects of personality traits, motives, and leadership identity claims on the attainment of status in informal, social organizations were assessed in several organizations using multiple indices of status. The power motive Hope for Power was predictive of holding executive offices. Extraversion and Conscientiousness predicted peer-ratings of social influence. Extraversion, Emotional Stability, and Dominance were related to subjective beliefs of personal power and influence. Seeing oneself as a leader mediated the effects of personality traits and motives on subjective sense of power and attaining social influence, but not achieving formal office. Together, these findings offer an integrated look at the …

Being Ethical When The Boss Is Not, Mary Uhl-Bien, Melissa K. Carsten

Department of Management: Faculty Publications

A missing element in discussions of ethical leadership is: What happens to enforcement of ethics if it is the managers who are behaving unethically? In this article we address this question by describing a framework of upward ethical leadership. This framework expands conceptualizations of leadership beyond top-down models to a view that considers employees to be active participants in the leadership process. Upward ethical leadership is defined as leadership behavior displayed by individuals who take action to maintain ethical standards in the face of questionable moral behaviors by higher-ups. It is fostered when employees are encouraged to establish personal power …

Complexity Leadership Theory: Shifting Leadership From The Industrial Age To The Knowledge Era, Mary Uhl-Bien, Russ Marion, Bill Mckelvey

Leadership Institute: Faculty Publications

Leadership models of the last century have been products of top-down, bureaucratic paradigms. These models are eminently effective for an economy premised on physical production but are not well-suited for a more knowledge-oriented economy. Complexity science suggests a different paradigm for leadership—one that frames leadership as a complex interactive dynamic from which adaptive outcomes (e.g., learning, innovation, and adaptability) emerge. This article draws from complexity science to develop an overarching framework for the study of Complexity Leadership Theory, a leadership paradigm that focuses on enabling the learning, creative, and adaptive capacity of complex adaptive systems (CAS) within a context of …

Diversity Training: Analysis Of The Impact Of Self-Efficacy, Gwendolyn Combs, Fred Luthans

Department of Management: Faculty Publications

Although the importance of diversity in organizations is widely recognized, diversity training is under attack. Drawing from self-efficacy theory and research, we developed a questionnaire to measure one’s efficacy of successfully coping with widely recognized diversity initiatives. Then we conducted a study examining the effect of self-efficacy-based diversity training on the level of participant’s measured diversity self-efficacy (DSE) and the possible mediation of this DSE on intentions to pursue positive diversity-related initiatives. The field experimental design showed that training incorporating efficacy components significantly increased trainees’ (N = 276) measured DSE. Diversity training was also shown to be positively related to …

Positive Psychological Capital: Measurement And Relationship With Performance And Satisfaction, Fred Luthans, Bruce J. Avolio, James B. Avey, Steven M. Norman

Leadership Institute: Faculty Publications

Two studies were conducted to analyze how hope, resilience, optimism, and efficacy individually and as a composite higher-order factor predicted work performance and satisfaction. Results from Study 1 provided psychometric support for a new survey measure designed to assess each of these 4 facets, as well as a composite factor. Study 2 results indicated a significant positive relationship regarding the composite of these 4 facets with performance and satisfaction. Results from Study 2 also indicated that the composite factor may be a better predictor of performance and satisfaction than the 4 individual facets. Limitations and practical implications conclude the article.

When The Romance Is Over: Follower Perspectives Of Aversive Leadership, Michelle C. Bligh, Jeffrey C. Kohles, Craig L. Pearce, Joseph E. (Gene) Justin, John F. Stovall

Leadership Institute: Faculty Publications

While leadership is indisputably one of the most pervasive topics in our society, the vast majority of existing research has focused on leadership as a positive force. Taking a follower- centric approach to the study of leadership, we integrate research on the Romance of Leadership and the dark side of leadership by examining followers’ perceptions of aversive leadership in the context of public high schools. Although Meindl, Ehrlich, and Dukerich (1985) demonstrated that the Romance of Leadership also includes the overattribution of negative outcomes to leaders, subsequent research has failed to explore the implications of this potentially darker side of …

Radical Change Accidentally: The Emergence And Amplification Of Small Change, Donde Ashmos Plowman, Lakami T. Baker, Tammy E. Beck, Mukta Kulkarni, Stephanie Thomas Solansky, Deandra Villarreal Travis

Department of Management: Faculty Publications

A decision to offer breakfast to homeless people led to radical change in a church and its environment. Existing theories of change do not fully explain observations from our qualitative study; however, complexity theory constructs suggest how and why such change emerged. We offer four key findings. First, the radical change was unintended, emergent, and slow. Second, destabilizing conditions helped small changes to emerge and become radical. Third, subsequent actions amplified an initial small change and, though not intended to do so, promoted radical change. Finally, the dynamic interaction of amplifying actions, contextual conditions, and small changes led to continuous …

Development Of A Global Measure Of Job Embeddedness And Integration Into A Traditional Model Of Voluntary Turnover, Craig Crossley, Rebecca J. Bennett, Steve M. Jex, Jennifer L. Burnfield

Department of Management: Faculty Publications

Recent research on job embeddedness has found that both on- and off-the-job forces can act to bind people to their jobs. The present study extended this line of research by examining how job embeddedness may be integrated into a traditional model of voluntary turnover. This study also developed and tested a global, reflective measure of job embeddedness that overcomes important limitations and serves as a companion to the original composite measure. Results of this longitudinal study found that job embeddedness predicted voluntary turnover beyond job attitudes and core variables from traditional models of turnover. Results also found that job embeddedness …

Relational Leadership Theory: Exploring The Social Processes Of Leadership And Organizing, Mary Uhl-Bien

Leadership Institute: Faculty Publications

Relational leadership is a relatively new term in the leadership literature, and because of this, its meaning is open to interpretation. In the present article I describe two perspectives of relational leadership: an entity perspective that focuses on identifying attributes of individuals as they engage in interpersonal relationships, and a relational perspective that views leadership as a process of social construction through which certain understandings of leadership come about and are given privileged ontology. These approaches can be complementary, but their implications for study and practice are quite different. After reviewing leadership research relative to these two perspectives I offer …

Complexity Leadership Theory: An Interactive Perspective On Leading In Complex Adaptive Systems, Benyamin B. Lichtenstein, Mary Uhl-Bien, Russ Marion, Anson Seers, James Douglas Orton, Craig Schreiber

Department of Management: Faculty Publications

Traditional, hierarchical views of leadership are less and less useful given the complexities of our modern world. Leadership theory must transition to new perspectives that account for the complex adaptive needs of organizations. In this paper, we propose that leadership (as opposed to leaders) can be seen as a complex dynamic process that emerges in the interactive “spaces between” people and ideas. That is, leadership is a dynamic that transcends the capabilities of individuals alone; it is the product of interaction, tension, and exchange rules governing changes in perceptions and understanding. We label this a dynamic of adaptive leadership, and …

Perceptions Of Leadership In Undergraduate Fraternal Organizations, Peter D. Harms, Dustin Woods, Brent W. Roberts, Dan Bureau, A. Michelle Green

Leadership Institute: Faculty Publications

An essential component of the culture and stated purpose of fraternities and sororities is their commitment to leadership. This is highly espoused as a prerequisite to joining and an outcome of membership. With this in mind, it is important to evaluate what leadership means in the context of a fraternity or sorority. This article concludes that leadership can be perceived as exercising power, holding formal positions, and serving as a positive role model for other members. Through understanding the multiple approaches to leadership, the culture and effectiveness of undergraduate fraternal organizations can be evaluated to verify the authenticity of claims …

Use Of A Classroom Response System To Enhance Classroom Interactivity, Keng Siau, Hong Sheng, Fiona Fui-Hoon Nah

Department of Management: Faculty Publications

Classroom interactivity is a critical component of teaching and learning. This paper reports on the use of a classroom response system to enhance classroom interactivity in a systems analysis and design course. The success of the project was assessed using both quantitative and qualitative data. A pretest/posttest design was used to examine the effects of a classroom response system on interactivity. The results show that a classroom response system can significantly improve classroom interactivity. Qualitative data was also collected to identify the strengths and weaknesses of using a classroom response system to enhance classroom interaction. Based on the quantitative and …

Becoming The Harvard Man: Person-Environment Fit, Personality Development, And Academic Success, Peter D. Harms, Brent W. Roberts, David Winter

Department of Management: Faculty Publications

The continuity and change of the needs and evaluations of the college environment and person-environment fit (PE fit) with the college environment were studied in a 4-year longitudinal study of students (N = 191). Perceptions of the environment changed more dramatically than corresponding self-perceived needs. PE fit demonstrated moderate levels of consistency over the 4-year span, but no significant increases in mean levels were found over time. Antecedents to PE fit in the college environment included both intelligence and openness to experience. Outcomes associated with PE fit included changes in personality traits linked to openness to experience and higher academic …

Psychological Capital Development: Toward A Micro-Intervention, Fred Luthans, James Avey, Bruce Avolio, Steven M. Norman, Gwendolyn Combs

Department of Management: Faculty Publications

After first providing the meaning of psychological capital (PsyCap), we present a micro-intervention to develop it. Drawn from hope, optimism, efficacy, and resiliency development, this PsyCap Intervention (PCI) is shown to have preliminary support for not only increasing participants’ PsyCap, but also financial impact and high return on investment.

Subordinates’ Resistance And Managers’ Evaluations Of Subordinates’ Performance, Bennett J. Tepper, Mary Uhl-Bien, Gary F. Kohut, Steven G. Rogelberg, Daniel E. Lockhart, Michael D. Ensley

Department of Management: Faculty Publications

The authors explored the validity of two perspectives as to how managers evaluate subordinates who resist downward influence attempts: a uniformly dysfunctional perspective (i.e., managers regard all manifestations of resistance as indicators of ineffective influence and rate subordinates unfavorably when they resist) and a multifunctional perspective (i.e., managers regard some manifestations of resistance as more constructive than others and rate subordinates more favorably when they employ constructive resistance tactics). The results of two studies provided support for an interactive model, which predicts that the uniformly dysfunctional perspective is characteristic of lower quality leader-member exchange (LMX) relationships and that the multifunctional …

The “Moments That Matter” For Fred Luthans’S Academic Career, Steven M. Sommer, Fred Luthans

Leadership Institute: Faculty Publications

Fred Luthans is the George Holmes University Distinguished Professor of Management at the University of Nebraska– Lincoln. He was president of the Academy of Management in 1986, received the Academy’s Distinguished Educator Award in 1997, was named in 2000 as a member of the Academy’s Hall of Fame for his numerous publications in AMJ and Academy of Management Review, and received an honorary doctorate from DePaul University and the Distinguished Alumni Award from the University of Iowa, from which he received all of his degrees. Currently, with John Slocum, he is coeditor-in-chief of the Journal of World Business, editor of …

Entrepreneurial Self-Efficacy In Central Asian Transition Economies: Quantitative And Qualitative Analyses, Fred Luthans, Elina Sharlezdvna Ibrayeva

Department of Management: Faculty Publications

In both quantitative and qualitative field studies, the self-efficacy of entrepreneurs in the transition economies of Kazakhstan and Kyrgyzstan is examined. Using a social cognitive framework, the complex interaction among these entrepreneurs’ (N=133) personal characteristics, environment, and self-efficacy is analyzed by structural equation modeling. Their self-efficacy was found to have a direct and mediating impact on performance. Another sample of entrepreneurs from these countries (N=239) qualitatively assessed what they actually do in their day-to-day activities. The findings from these two studies contribute to better understanding and have implications for successful entrepreneurial practice in countries undergoing the difficult process of transition …

Using Multiple Methods In Personality Psychology, Brent W. Roberts, Peter D. Harms, Jennifer L. Smith, Dustin Wood, Michelle Webb

Leadership Institute: Faculty Publications

In many ways, Campbell and Fiske’s (1959) article on multitrait-multimethod (MTMM) approaches to construct validity has stood like a Platonic ideal for personality psychologists since its publication. In the ideal study, and scientific world, our constructs should converge in a robust and coherent fashion across diverse methods. Moreover, we should all aspire to use multiple methods in both validating our measures and in investigating our ideas. Interestingly, that Platonic ideal is not realized as often as expected. If one looks closely at the empirical literature in personality psychology, the expectation that abstract constructs should converge across methods is seldom met …

A Note On The Instability Of The Unprojected Individual Level Premium Cost Method, Pierre Devolder, Valerie Goffin

Journal of Actuarial Practice (1993–2006)

We compare the unit credit and the unprojected individual level premium cost methods in a continuous time environment and show that the latter may produce unstable contribution rates in a dynamic environment. Specifically, assuming there are no unfunded liabilities, we prove that the unprojected individual premium cost method may produce non-bounded contributions if benefits change too close to the normal retirement age.

Journal Of Actuarial Practice - Volume 13 (2006) - Contents And Masthead

Journal of Actuarial Practice (1993–2006)

Contents

Editorial Policy: Topics suitable for this journal include AIDS, annuity products, asset-liability matching, cash-flow testing, casualty rate making, credibility theory, credit insurance, disability insurance, expense analysis, experience studies, FASB issues, financial reporting, group insurance, health insurance, individual risk taking, insurance regulations, international issues, investments, liability insurance, loss reserves, marketing, pensions, pricing issues, product development, reinsurance, reserving issues, risk-based capital, risk theory, social insurance, solvency issues, taxation, valuation issues, and workers' compensation

Review Process

Editor - Colin Ramsay, University of Nebraska

Associate Editors: Robert Brown, University of Waterloo ○ Cecil Bykerk, Mutual of Omaha ○ Ruy Cardoso, Actuarial Frameworks ○ …

Solvency Of Life Insurance Companies: Methodological Issues, Rosa Cocozza, Emilia Di Lorenzo

Journal of Actuarial Practice (1993–2006)

The paper deals with solvency assessment for life insurance business; some methodological issues concerning the solvency of life insurance companies, particularly connected to the investment risk, are suggested. Considerations about the technical equilibrium of an insurance portfolio and the financial regulation lead to a dynamic system involving risk measure and solvency assessment. The formal model is applied to a life annuity cohort in a stochastic context in order to exemplify the potential of the model, especially referred to the need to frame solvency assessment in a dynamic perspective.

Bayesian Analysis Of A Health Insurance Model, Helio S. Migon, Edison M.O. Penna

Journal of Actuarial Practice (1993–2006)

We consider the problem of determining health insurance premiums based on past information on size of loss, number of losses, and size of population at risk. The size of loss and the number of losses are treated as mutually independent random variables. The number of losses is assumed to follow a Poisson process, and the loss sizes are independent and identically distributed non-negative random variables, and the population at risk is assumed to follow a non-linear growth model. An expression for the premium is obtained through maximization of the insurer's expected utility under a Bayesian model. The parameter estimation process …

Pricing Insurance Policies With A Distribution-Free Financial Pricing Model, Min-Ming Wen

Journal of Actuarial Practice (1993–2006)

The highly skewed and heavy tailed distributions used to model insurance losses (claims) raise a concern about the validity of the applications of the capital asset pricing model (CAPM) to insurance pricing when market risks are essential. This paper provides an alternative pricing model, called the Rubinstein-Leland model, which can be used to price insurance contracts. The Rubinstein-Leland model has a distribution-free feature that can fully capture the asymmetry embedded in insurance losses. Thus, this model is better able to derive fair prices for insurance policies than is the CAPM.

Bivariate Archimedean Copula Models For Censored Data In Non-Life Insurance, Michel Denuit, Oana Purcaru, Ingrid Van Keilegom

Journal of Actuarial Practice (1993–2006)

We describe a methodology based on Archimedean copulas for analyzing nonlife insurance data with censoring present. Specifically, we propose a graphical selection procedure for the nonparametric estimation of the generator. An actual loss-ALAE data set is used for the numerical illustrations and for comparisons of our approach to a few others.

Consistent Assumptions For Modeling Credit Loss Correlations, Jan Dhaene, Marc J. Goovaerts, Robert Koch, Ruben Olieslagers, Olivier Romijn, Steven Vanduffel

Journal of Actuarial Practice (1993–2006)

We consider a single period portfolio of n dependent credit risks that are subject to default during the period. We show that using stochastic loss given default random variables in conjunction with default correlations can give rise to an inconsistent set of assumptions for estimating the variance of the portfolio loss. Two sets of consistent assumptions are provided, which it turns out, also provide bounds on the variance of the portfolio's loss. An example of an inconsistent set of assumptions is given.

Journal Of Actuarial Practice, Volume 13, 2006, Colin Ramsay , Editor

Journal of Actuarial Practice (1993–2006)

ARTICLES

Bivariate Archimedean Copula Models for Censored Data in Non-Life Insurance • Michel Denuit, Dana Purcaru, and Ingrid Van Keilegom 5

Bayesian Analysis of Insurance Losses Using the Biihlmann-Straub Credibility Model • Abraham J. van der Merwe and Kobus N Bekker . 33

Bayesian Analysis of a Health Insurance Model • Helio S. Migon and Edison M. O. Penna 61

Solvency of Life Insurance Companies: Methodological Issues • Rosa Cocozza and Emilia Di Lorenzo . 81

Pricing Insurance Policies with a Distribution-Free Financial Pricing Model • Min-Ming Wen . 103

A Note on the Instability of the Unprojected Individual Level …