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This study was concerned with the construction and validation of a Financial Distress Index (FDI). A stratified (UK) sample of 2000 adults completed the new measure as well as measures of financial anxiety, general stress and money attitudes. The FDI correlated highly with general stress and financial anxiety, establishing concurrent validity. For the FDI, men scored lower than women, there was an inverse association with age and FDI was lower for the highest income bands. A unit increase in seeing money as security was associated with a reduction in the FDI of 16%, whereas unit increases in money as generosity, freedom, or power and status were associated with an increase in the FDI of, respectively 21%, 24% and 19%. Implications and limitations are discussed.

This paper reports on a study of the relationship between demographic, personality, and attitudinal variables and impulsive buying (a consumer's tendency to buy spontaneously, unreflectively, and immediately); using secondary analysis of data from common participants in two large national surveys of British adults: one survey contributing data on impulsive buying, demographics, and money attitudes; and the second, a Big Five personality trait measure. In particular, we focus on the attitudes characterized by the extent to which individuals associate money with security, freedom, power, and love. Younger females and those with higher household income were more likely to engage in impulsive buying. Correlational and regression analysis showed that those high on Neuroticism and Extraversion and those low on Conscientiousness were more likely to be impulse buyers. All four money attitudes were related to impulsive buying (Money as Security most strongly). A hierarchical regression indicated that demographic variables accounted for 3 percent, personality a further 9 percent, and money attitudes a further 13 percent of the variance, showing that these three sets of variables accounted for around a quarter of the variance. Implications are considered for educational and therapeutic interventions in reducing maladaptive impulsive buying

This study examined the incremental validity of the Big-Five personality traits over primarily demographic factors in predicting Left-Right political orientation (PO) in a large British adult sample. Gender and trait Openness was most strongly correlated with PO. The regression indicated that females who were better educated, less religious and of higher social class were more Left-Wing. Personality traits doubled the variance accounted for (4% to 9%) indicating that Open, more Agreeable people were more Left-Wing and Introverted, more Conscientious people more Right-Wing. Agreeableness and Neuroticism showed an interaction with social class, such that for high social class, Left-Wing orientation increased with Agreeableness (but not for low social class); and for high social class, Left-Wing orientation increased with Neuroticism, whilst for low social class, Right-Wing orientation increased with Neuroticism.

We report research on investor susceptibility to the disposition effect, a financial decision-making bias where investors have a greater propensity to realize gains than realize losses. Despite theoretical arguments for the influence of emotions, research on susceptibility to this bias, on real investors, has relied primarily on socio-demographic explanations. Some experimental research on student populations has considered emotions more directly, but has not addressed differences in individual susceptibility and has not examined genuinely consequential investor behaviour in real markets. Our research addresses this gap by predicting susceptibility to the disposition effect based on investors’ reliance on intuitive (emotion mediated) cognition (System 1), analytical cognition (System 2) and the strategies they use to regulate their emotions. Using investors’ trading records from a UK sample, we measure their susceptibility to the disposition effect and assess, through a questionnaire, their reliance on Systems 1 and 2 cognitive processes and use of two emotion regulation strategies. Investors with higher reliance on System 1 processes have greater disposition effect, but reliance on System 2 processes is not related to the disposition effect. Investor reliance on reappraisal (an emotion regulation strategy of changing a situation’s meaning to alter its emotional impact) reduces their disposition effect. However, the use of expressive suppression (a strategy that inhibits emotion expressive behaviour) does not show a statistically significant relationship with this bias. These results suggest that investors’ intuitive emotional reactions explain susceptibility to bias, and that effective strategies of regulating emotions enable this bias to be overcome.

This study looked at whether demographics, religious beliefs, political orientation, personality traits, and money attitudes are correlates of financial capability, knowledge and distress. Over 3,500 British participants completed multiple measures online. As hypothesized, demographics, religious beliefs, political orientation, personality traits, and money attitudes each explained unique variance in financial capability, financial knowledge, and financial distress. Regression and correlational results showed demographic factors particularly age, education, and income were significantly related to all criteria variables. Money attitudes explained additional variance in financial capability and distress beyond that explained by demography, ideology, and personality. Trait conscientiousness, money as security attitude, age, and income were most strongly correlated with financial capability and financial distress.

Purpose – Using the concept of disconfirming communication to define interpersonal mistreatment, the purpose of this paper is to explore the impact of specific negative managerial communication behaviors on employee emotions, while taking into account both leader-member exchange (LMX) and employee trait negative affect (NA). Design/methodology/approach – In all, 275 working adults completed surveys about their managers’ confirming and disconfirming communication and their own emotional responses to these communications. Findings – The positive relationship between disconfirming managerial communication and employee negative felt emotion was reduced when LMX was high and was increased for employees with high trait NA personalities. Research limitations/implications – While the cross-sectional design exposes the study to potential common method bias, a priori and post hoc procedures minimized this risk, confirming it has a negligible impact on the results. Practical implications – Study insights and the new instrument, the confirming/disconfirming managerial communication indicator can be used to train managers to be better communicators, thereby improving organizational effectiveness. Social implications – Drawing attention to the nature and emotional impact of disconfirming managerial communication may reduce its occurrence and lead to improved employee mental health with resultant positive effects for society. Originality/value – Unlike previous studies of interpersonal mistreatment and managerial communication, the authors focus explicitly on the effect on employee emotion and explore confirming and disconfirming communication, and the moderating roles of LMX and trait NA.

Researchers reach different conclusions about the functional or dysfunctional nature of impulsive buying behavior. While many note the use of impulsive buying as a form of mood regulation, there is disagreement about whether this is functional or dysfunctional and the extent to which it causes financial harm. This paper draws on data from a U.K. national survey sample (N = 109,472) to contribute to these debates. Study results suggest that impulsive buying is more common for those who have most need to regulate mood and who have the least effective emotion regulation strategies. This suggests that impulsive buying may be understood as a failure of self-regulation in relation to long-term goals and as a strategy for mood regulation. Contrary to some prior claims in the retail management and marketing research literature, the study shows higher levels of impulsive buying to be associated with more adverse financial outcomes (which are not confined to the most extreme manifestations of the trait). While ineffective emotion regulation is associated with higher propensity to buy impulsively, the findings also suggest that effective emotion regulation may to some extent mitigate the adverse consequences of the propensity to buy impulsively. The implications for ethical management, research, and policy are considered.

Compensation systems, such as individualized pay-for-performance (I-PFP) schemes for employees, represent an important approach to aligning employer-employee interests. However, the adoption of I-PFP is much less common in many countries than in the United States. Employing a multilevel analysis of over 4,000 firms in 26 countries, we explore determinants of its adoption. At the country level, we distinguish between cultural and institutional (labor regulation institutions) influences. At the firm level, we distinguish firms that view human resources as strategically important and firms that are foreign owned. On the one hand, our findings indicate that both cultural and institutional effects at the country level significantly influence the adoption of I-PFP. On the other hand, senior managers’ agency counts. We find the effect of labor regulation on I-PFP to be mediated by its effects on labor union influence, and we find the effects of culture on I-PFP to be entirely mediated by labor regulation and (country-level) union influence.

The disposition effect is an investment bias where investors hold stocks at a loss longer than stocks at a gain. This bias is associated with poorer investment performance and exhibited to a greater extent by investors with less experience and less sophistication. A method of managing susceptibility to the bias is through use of stop losses. Using the trading records of UK stock market individual investors from 2006 to 2009, this paper shows that stop losses used as part of investment decisions are an effective tool for inoculating against the disposition effect. We also show that investors who use stop losses have less experience and that, when not using stop losses, these investors are more reluctant to realise losses than other investors.

Etienne Wenger-Trayner, Mark Fenton-O’Creevy, Steven Hutchinson (eds): LEARNING IN LANDSCAPES OF PRACTICE: BOUNDARIES, IDENTITY, AND KNOWLEDGEABILITY IN PRACTICE-BASED LEARNING. Routledge, 2015.

We report on a case study of high Japanese student failure rates in an online MBA programme. Drawing on interviews, and reviews of exam and assignment scripts we frame the problems faced by these students in terms of a ‘language as social practice’ approach and highlight the students’ failure to understand the specific language games that underpin the course assessment approach. We note the way in which the distance learning and online context can make the challenges faced by international students less immediately visible to both students and institution.

We describe a psychophysiological study of the emotion regulation of investment bank traders. Building on work on the role of emotions in financial decision-making, we examine the relationship between market conditions, trader experience and emotion regulation whilst trading, as indexed by high frequency heart rate variability (HF HRV). We find a significant inverse relationship between HF HRV and market volatility and a positive relationship between HF HRV and trader experience. We argue that this suggests that emotion regulation may be an important facet of trader expertise and that learning effects demonstrated in financial markets may include improved emotion regulation as an important component of that learning. Our results also suggest the value of investigating the role of effective emotion regulation in a broader range of financial decision-making contexts.\ud \ud Keywords: Emotion Regulation, Financial Decision-Making, Market Volatility, Trading, Heart Rate Variability

We report on a qualitative investigation of the influence of emotions on the decision making of traders in four City of London investment banks, a setting where work has been predominantly theorized as dominated by rational analysis. We conclude that emotions and their regulation play a central role in traders' decision making. We find differences between high and low performing traders in how they engage with their intuitions, and that different strategies for emotion regulation have material consequences for trader behavior and performance. Traders deploying antecedent-focused emotional regulation strategies achieve a performance advantage over those employing primarily response-focused strategies. We argue that, in particular, response-focused approaches incur a performance penalty, in part because of the reduced opportunity to combine analysis with the use of affective cues in making intuitive judgments. We discuss the implications for our understanding of emotion and decision making, and for traders' practice.

We explore determinants of subsidiary autonomy in setting human resource management (HRM) practices within US-parented multinational enterprises (MNEs), in Europe and Australia. We examine both the effect of strategic context and the effect of the institutional location of the subsidiary. We find that US MNEs show greater centralisation of control over HRM where the subsidiary faces global markets, in coordinated market economies vs liberal market economies, and where union density is low. Journal of International Business Studies (2008) 39, 151–166. doi:10.1057/palgrave.jibs.8400313

The disposition effect is an investment bias where investors hold stocks at a loss longer than stocks at a gain. This bias is associated with poorer investment performance and exhibited to a greater extent by investors with less experience and less sophistication. A method of managing susceptibility to the bias is through use of stop losses. Using the trading records of UK stock market individual investors from 2006 to 2009, this paper shows that stop losses used as part of investment decisions are an effective tool for inoculating against the disposition effect. We also show that investors who use stop losses have less experience and that, when not using stop losses, these investors are more reluctant to realise losses than other investors.

The concept of risk propensity has been the subject of both theoretical and empirical investigation, but with little consensus about its definition and measurement. To address this need, a new scale assessing overall risk propensity in terms of reported frequency of risk behaviours in six domains was developed and applied: recreation, health, career, finance, safety and social. The paper describes the properties of the scale and its correlates: demographic variables, biographical self‐reports, and the NEO PI‐R, a Five Factor personality inventory (N = 2041). There are three main results. First, risk propensity has clear links with age and sex, and with objective measures of career‐related risk taking (changing jobs and setting up a business). Second, the data show risk propensity to be strongly rooted in personality. A clear Big Five pattern emerges for overall risk propensity, combining high extraversion and openness with low neuroticism, agreeableness, and conscientiousness. At the subscale level, sensa...

There has been considerable debate both among scholars and policy makers concerning the extent to which national systems of industrial relations (IR) and human resource management (HRM) systems are converging. In Europe this debate has concerned both convergence within Europe and convergence between European systems and those of non-European states, most notably the USA. The convergence thesis rests essentially on the notion of competitive isomorphism: that is as firms are increasingly faced with similar competitive environments globally, they will adopt similar (optimally efficient) management practices. For example, a significant part of the European convergence debate concerns whether, in Europe, collective employee relations, mediated by representative institutions are being replaced by HRM management systems designed to establish a direct and individualised relationship between organization and employee. Some commentators have attributed this trend to the influence of a model of HRM derived from practices in the USA and increasingly adopted in Europe. Multinational companies (MNCs) have become of particular importance to this thesis. First, they are often seen as an important channel for the transmission of management practices from one country to another, in particular from the USA to Europe. Second, the transferability of management practices from one national context to another is a matter of considerable practical importance for managers in MNCs. Third, the economic importance of large MNCs and their border spanning nature means that their activities have particular salience to legislators and regulators. This special issue addresses these concerns in three ways. First reviews of the development of HRM in the USA and in Germany and evidence on convergence of HRM practices in Europe help us consider both what may be being transmitted from the USA and the evidence for its transmission. Second three papers, provide different kinds of evidence on the convergence or barriers to convergence of HRM practices between Europe and the USA and the role of MNCs in that transmission. Finally, the special issue concludes with three reviews of in all six books each of which are relevant to the concerns of this special issue.

This paper explores the possibility of combining rational-economic and institutional approaches to understanding the diffusion of human relogicalTitle management and industrial relations practices within MNCs. I propose one broad and one focal research question: "In what circumstances is the competitive context more salient than the institutional context to managerial decision making (and visa versa) and how do they interact?" and "In what circu...

This paper examines the impact of illusory control beliefs on the performance of traders in financial instruments. The authors argue that the task and environment faced by traders are conducive to the development of illusions of control and that individual propensity to illusion of control will be (inversely) related to trader performance. Using an innovative computer task, designed to assess illusion of control in the field, data from 107 traders in four organizations showed individual differences in this bias to have a significant, inverse, association with performance, as measured by managers' ratings of trader performance and by total remuneration. The authors conclude that, at least in this context, illusion of control is maladaptive and that it is productive to take an individual difference approach to the study of such illusions. Implications for debates about the costs and benefits of positive illusions are discussed.

This chapter focuses on the identity and emotion work which is entailed in personal learning trajectories. Identity is not just an individual attribute, but is negotiated a new in each community participate in. It explores the identity and emotion work that goes on in transitions across boundaries in landscapes of practice and in the experience of multimembership. The chapter argues that experiences of failure and intense emotions are a commonplace consequence of the identity work that goes on in transitions across boundaries in landscapes of practice. It explores how Mark's narrative has a strong emotional element. Gill describes similar threats to identity across a boundary of practice and again stresses the highly emotional nature of the experience. Yannis's story addresses the same theme of failure and emotion at the boundary between parts of the landscape of practice. It explicitly acknowledges difficult emotions as at the core of professional development and design learning to support their negotiation.

If the body of knowledge of a profession is a living landscape of practice, then our personal experience of learning can be thought of as a journey through this landscape. Within Learning in Landscapes of Practice, this metaphor is further developed in order to start an important conversation about the nature of practice knowledge, identity and the experience of practitioners and their learning. In doing so, this book is a pioneering and timely exploration of the future of professional development and higher education. The book combines a strong theoretical perspective grounded in social learning theories with stories from a broad range of contributors who occupy different locations in their own landscapes of practice. These narratives locate the book within different contemporary concerns such as social media, multi-agency, multi-disciplinary and multi-national partnerships, and the integration of academic study and workplace practice. Both scholarly, in the sense that it builds on prior research to extend and locate the concept of landscapes of practice, and practical because of the way in which it draws on multiple voices from different landscapes. Learning in Landscapes of Practice will be of particular relevance to people concerned with the design of professional or vocational learning. It will also be a valuable resource for students engaged in higher education courses with work-based elements.

Crossing boundaries in landscapes of practice is an important occasion of learning. However, a sense of identity as a capable person, knowledgeable about problems and their solution, in one context, may be difficult to express in another. In this chapter we explore the experience of students in practice-based education, as they move between academic and workplace communities, and between different communities in their work lives. We look at the challenges they face in these transitions, how they learn and develop resilience in the face of these challenges, and how they seek to translate learning from one part of the landscape into another.

This introduction presents an overview of key concepts covered in the subsequent chapters of this book. The book investigates the implications of a 'landscapes of practice' perspective in more detail. It explains the boundary encounters between different practices can be important opportunities for learning but also bring significant challenges. The book and the workshop had their origins in a conversation about learning between Etienne Wenger and the Practice Based Professional Learning Centre at the Open University, in the UK. The workshop, held in Milton Keynes, England, brought together practitioners, researchers, Higher Education teachers and regulators from a variety of different fields to explore 'landscapes of professional practice'. It shares some of the stories and role plays crafted by the groups. The book helps to reflect on the changing nature of higher education and professional development. It illustrates how exploring different practices in the landscape can be important opportunities for learning.

This chapter focuses on our reflections on practice-based learning. These reflections are likely to have resonance with broader questions about higher education, concerning lifelong learning, employability, assessment, and the role of the university. These questions are generating a lot of thinking and innovation directed at the future of higher education. The chapter provides a framework that suggests a view of students on a learning trajectory through a landscape of practice. These learning travellers have to find their way into and around specific practices, build an image of where these practices are located in the landscape, engage with multiple places in the landscape at once and develop an identity. In designing a course on online learning for faculty members from around the world, we spent time listening to their concerns. Whilst online learning is strategically important by the leaders of the majority of universities, many of their faculty continues to have deep concerns about the implications for their work.

The role of intuition may be especially dominant in organizations embedded in turbulent environments (Khatri & Ng, 2000). Dane and Pratt (2007) argue that intuition will be more likely to function as an effective component of decision making in performance domains that require significant experience and complex domain-relevant schema, a description that fits the world of financial trading. Traders are also frequently engaged in decision making that is characterized by time pressure, high risk, complexity and imperfect information. In a previous study (Fenton-O’Creevy et al., 2011), the second author found that many high performing traders deploy a reflective and critical approach to the use and development of intuition, which they understand as well-founded in prior experience. In this chapter we draw on our prior research to discuss the role of intuition in the work of professional traders. We bring together the results of our research on emotion regulation of investment bank traders (Fenton-O’Creevy et al., 2005, 2011, 2012; Vohra & Fenton-O’Creevy, 2011) with research on expertise and affect-based intuition (Baylor, 2001; Dane & Pratt, 2007; Simon, 1987; Sinclair & Ashkanasy, 2005; Weiss & Cropanzano, 1996) to argue that since more effective emotion regulation is associated with greater experience and more effective use of emotions in decision making (Fenton-O’Creevy et al., 2012) and emotions underpin the use of intuition (Lieberman, 2000; Sinclair & Ashkanasy, 2005), then effective emotion regulation will be essential in the deployment of expert intuition.

This study examined sex differences in money beliefs and behaviours. Over 100,000 British participants completed two measures online, one of which assessed “money pathology” (Forman in Mind over money, Doubleday, Toronto, 1987), and the other four “money types”, based on the emotional associations of money (Furnham et al. in Personal Individ Differ, 52:707–711, 2012). Nearly all measures showed significant sex differences with medium to large effect sizes, and with females exhibiting more “money pathology” than males. The biggest difference on the money types was on money being associated with generosity (money representing love) where men scored much lower than females, and autonomy (money representing freedom) where men scored higher than women. For men, more than women, money represented Power and Security. Men were more likely to be Hoarders while women did more emotional regulatory purchasing. Implications and limitations of this study are discussed.

This article reports on the results of a study of managers' attitudes to employee involvement. Contrary to a number of existing studies, this research found middle managers' attitudes to be no more negative than those of senior managers. As hypothesised, managers' intentions to support employee involvement were found to be inversely related to recent managerial job loss and positively related to managers' experience of employee involvement. Contrary to expectations, the study revealed a positive relationship between recent delayering and intentions to support the involvement of employees. The study also reveals a complex curvilinear relationship between managers' perceptions of their own empowerment and their attitudes to employee involvement. The article draws out a number of implications for practice.

Summary Although the literature on employee involvement suggests that some organizations experience significant benefits to employee attitudes and productivity, the results from individual studies vary widely. This study focuses on those factors that may mediate the success or failure of employee involvement practices, especially the role played by middle managers. A postal survey of 155 organizations examined the perceived outcomes of different employee involvement practices and the support or resistance attributed to middle managers. Hypothesized correlates of middle management resistance to employee involvement were examined. As hypothesized, positive outcomes of employee involvement were lower in organizations that experienced middle management resistance. The study supports the view that middle managers may resist employee involvement practices in response to threats to self interest (managerial job loss and delayering). However, lack of congruence between organizational systems and structures and the goals of EI and divided or unclear senior management support for EI were also found to be strongly related to middle management resistance. ? 1998 John Wiley & Sons, Ltd.

The study described in this paper addressed two key objectives. Using structural equation modelling, the study examined first the dimensionality of the British Organizational Committment Scale (BOCS) and second, how employee perceptions of their company’s prospects and their perceptions of their own career opportunities might affect each commitment dimension. Analysis of the data (from an oil company) suggests that the BOCS has three principal dimensions but that there is a fourth (measurement artefact) factor, consisting of the negatively phrased items. Analysis also reveals that improved company prospects are positively related to the ‘loyalty’ dimension of the BOCS but are inversely related to the ‘involvement’ dimension. The paper considers explanations for this phenomenon.

This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests.

In this chapter, we use case studies of two multinational enterprisesto enquire into the micro-foundations of success and failure in the travel of practices within MNEs. We question the utility of ideas of "knowledge transfer" and focus instead on understanding the travel and translation of practices. We pay particular attention to managers in 'bridging roles' within MNEs and the way in which their skills, interests and career trajectories influence the travel of practices. We build on social capital theory in arguing that is important to consider managers' network positions and that bridging roles are of particular importance to the travel and translation of practices. However, we conclude that an account of the role of social capital in the travel of ideas and practices within MNCs needs to abandon the 'pipes' metaphor of knowlege flow, draw on an epistemology of practice, engage with the skilled agency of individuals in bridging roles and to consider the interaction between network position and prior experience, values and interests.

This paper assesses the relative and joint impact of cultural and institutional factors on firms' use of “calculative” human resource management practices to determine their separate analytic power. To what extent do institutions and culture structure managerial choice? Previous research has been constrained by not having measures for both cultural and institutional distance. Employing data from 14 European countries taken from the Cranet survey, our findings indicate that institutional, and more specifically, labour relations factors, have more explanatory power than cultural factors.

Recent critiques of management and teacher education curricula and teaching pay particular attention to the disconnection between the de-contextualised, formal knowledge and analytical techniques conveyed in university programs and the messy, ill-structured nature of practice. At the same time research into professional expertise suggests that its development requires bringing together different forms of knowledge and the integration of formal and non-formal learning with the development of cognitive flexibility. Such complex learning outcomes are unlikely to be achieved through a 'knowledge transmission' approach to curriculum design. In this article we argue that in many ways current higher education practices create barriers to developing ways of knowing which can underpin the formation of expertise. Using examples from two practice-focused distance learning courses, we explore the role of distance learning in enabling a dialogue between academic and workplace learning and the use of 'practice dialogues' among course participants to enable integration of learning experiences. Finally, we argue that we need to find ways in higher education of enabling students to engage in relevant communities of expertise, rather than drawing them principally into a community of academic discourse which is not well aligned with practice.

Direct involvement methods are often seen as heralding a new industrial relations in which employee voice is weaker than in systems based on unions or works councils. We test this argument through an empirical study across the European operations of 25 multinationals with headquarters in the UK and find that this is true only when direct voice is used in isolation. Such systems are not uncommon, but more often direct voice coexists with union and other representative channels. It is the variability in the relationship between three channels (direct, representative committee and union) that is significant. This confirms that institutions matter, but we conclude that the subject of industrial relations needs to focus more on the interplay between different voice mechanisms.