Intensifying Social Exchange Relationships in Public Organizations: Evidence from a Randomized Field Experiment Morten Jakobsen Simon Calmar Andersen Abstract In accordance with social exchange theory, prominent streams of management research emphasize the importance of reciprocal exchange relationships between organizations and their employees. When employees perceive themselves as supported by the organization, they reciprocate with increased work motivation. However, we do not know how this knowledge can be developed into management initiatives that increase public employees’ perceived support, because severe endogeneity problems make it difficult to estimate the effect of organizational support on employee commitment outside the laboratory. We use a randomized field experiment involving more than 800 public employees to estimate the effect. We find no average effect of the organizational support treatment on the employees’ perceived organizational support. Yet, a subgroup analysis shows a positive treatment effect when the employees’ local front-line managers felt less supported prior to the intervention. We discuss the implications for theory C 2012 by the Association for Public Policy Analysis and and management practice. Management. INTRODUCTION Based on social exchange theory, prominent streams of management research suggest that employees’ work motivation is strongly affected by a reciprocal social exchange relationship between the organization and its employees. Accordingly, employees’ commitment, effort, and performance are expected to increase by exchange of noneconomic, intangible goods such as organizational support. When employees perceive the organization as valuing their contributions, caring about their well-being, and aiding them so they can carry out their jobs effectively, they work harder and increase their commitment to the organization because of a norm of reciprocity (Bottom et al., 2006; Coyle-Shapiro & Conway, 2004; Eisenberger et al., 1986; Romzek, 1990). This reciprocal relationship is found empirically in a number of studies on public organizations (Armeli et al., 1998; Coyle-Shapiro & Kessler, 2003; Eisenberger et al., 1997; Gould-Williams & Davies, 2005), and the psychological mechanisms of social exchanges are documented in laboratory experiments (e.g., Bottom et al., 2006; Miller & Whitford, 2002; Molm, Peterson, & Takahashi, 2003; Molm, Takahashi, & Peterson, 2000). However, much less is known about what happens when this knowledge is operationalized and applied by public managers who wish to enhance the commitment, Journal of Policy Analysis and Management, Vol. 32, No. 1, 60–82 (2013) C 2012 by the Association for Public Policy Analysis and Management Published by Wiley Periodicals, Inc. View this article online at wileyonlinelibrary.com/journal/pam DOI:10.1002/pam.21662 Intensifying Social Exchange Relationships in Public Organizations / 61 behavior, and performance of their employees by using organizational initiatives. Although the quid pro quo assumptions of traditional principal-agent models have been extensively operationalized and tested in terms of pay-for-performance schemes and other economically incentivized managerial tools, similar work still remains to be done within the social exchange approach to the public organization– employee relationship. How do public employees, who are already engaged in organizational exchanges, perceive attempts by managers to increase their motivation? Turning this translation of the theory and laboratory results into testable management initiatives is no trivial task. First, should support, for instance, be supplied as an offer—relying on employees’ willingness and ability to ask for and opt into the support—or should support be given by fiat, risking that some employees find it controlling and that resources are wasted on support that they do not need? Second, studying the causal effects in the relationship between an organization and its employees is methodologically difficult exactly because of the reciprocal nature. This is especially the case when examining whether public managers could intensify employees’ perceived organizational support (POS) by specific ways of increasing the level of organizational support: Is employees’ increased perception of support and commitment a result of increased organizational support—or is increased organizational support a result of employees’ increased commitment? Social exchange theory expects both, that is, a two-way causality. In this study, we use a randomized field experiment involving more than 800 public employees from 117 public child-care centers to examine if and how management initiatives can increase POS among public employees and thus intensify social exchange relationships in public organizations. We test the effect of a management initiative that provides professional support from the central administration of a local government to the municipality’s child-care workers on a voluntary basis without demanding any quid pro quo. We randomly divided the public child-care centers into three groups. In one treatment group, child-care employees received the additional organizational support from the municipality’s central administration. Another group received a Hawthorne treatment in the form of support aimed at the parents. A third group was not affected at all and functions as a control group. A difference-in-difference estimator utilizing pre- and postsurveys among the public child-care employees is used to evaluate the average treatment effect of the increased support on the employees’ POS. The results show that even though we are able to replicate the correlation between POS and commitment found in previous studies, we find no average treatment effect of more organizational support on the employees’ perceived support or commitment. In a subgroup analysis we do, however, find that the initiative has a positive effect on the employees when the local front-line manager of the center felt less supported prior to the intervention. No effect was found when the local manager felt more supported at the outset. This empirical estimation of a dynamic, moderating mechanism suggests an important modification to the theoretical understanding of the causal effect of organizational support on employees. We suggest that the initial level of perceived support among the receivers of organizational support is built into the model. Such theoretical modifications are important not least to managers that aim to intensify social exchange relationships. These dynamics, however, are not easily captured by laboratory experiments. Hence, in addition to answering recent calls for more experimental studies within public management research (Brewer & Brewer, 2011; Coyle-Shapiro & Shore, 2007; Margetts, 2011), the study demonstrates the importance of supplementing our laboratory experiments with experiments from the field. We discuss these different implications of our study in the penultimate section before the conclusion. First, we introduce the theory on social exchange and outline the central expectations. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 62 / Intensifying Social Exchange Relationships in Public Organizations Subsequently, we present data and methods of the field experiment followed by the empirical tests. A SOCIAL EXCHANGE PERSPECTIVE ON PUBLIC EMPLOYEES’ COMMITMENT Social exchange theory is one of the most important theoretical frameworks for analyzing employer–employee relationships and employees’ commitment (Bottom et al., 2006; Coyle-Shapiro & Conway, 2004; Cropanzano & Mitchell, 2005). Although the theoretical foundation comes from different disciplines, such as organizational theory (Bernard, 1938; March & Simon, 1958), social psychology (Gouldner, 1960; Homans, 1958; Thibault & Kelly, 1959), and sociology (Blau, 1964),1 the contributions agree that social exchange involves a series of interactions among different actors that generate obligations (Cropanzano & Mitchell, 2005; Emerson, 1976). Hence, when an actor receives a valued good, tangible or intangible, from another actor, an obligation to repay is generated. The actors are not restricted to being individuals; they include groups or formal organizations as well (Eisenberger et al., 1986; Molm, 2003). In an employment context, employers (organizations) and their employees are often regarded as the main central actors in exchange relationships. Moreover, the exchanged resources are not restricted to material or tangible resources, but can be nonmaterial, such as symbols of approval and prestige (Bottom et al., 2006; Foa & Foa, 1980). In contrast to negotiations, actors in reciprocal exchanges initiate exchanges individually by performing a beneficial act for another actor without knowing whether, when, or to what extent the other actor reciprocates (Molm, 2003). However, receiving a valued good induces an obligation to repay. According to Gouldner (1960), these obligations are generated by a norm of reciprocity stating that people should help those who have helped them—not as a contractual relationship. Other exchange rules see the obligation to reciprocate as an individual’s belief in mutual expectations to the involved actors (Rousseau, 1989). Social exchange theory has been used by different theoretical frameworks concerning the employer–employee relationship (Coyle-Shapiro & Conway, 2004, p. 5). Among the most prominent is the POS framework developed by Eisenberger et al. (1986), which we use in this study. Hence, the POS framework has previously been employed, and the survey items developed by Eisenberger et al. (1986) to measure POS have been well tested in public administration settings (Armeli et al., 1998; Coyle-Shapiro & Kessler, 2003; Eisenberger et al., 1997; Gould-Williams & Davies, 2005). Perceived Organizational Support (POS) The POS framework focuses on the relationship between support provided by an organization to its employees, the employees’ perception of this support, and their organizational commitment. POS refers to employees’ beliefs about the extent to which the organization values their contributions, cares about their well-being, and aids them so they can carry out their jobs effectively (Eisenberger et al., 1986, 2001; Rhoades & Eisenberger, 2002). A high degree of POS elicits employees’ felt obligation to care about the organization’s welfare and help the organization reach its objectives (Eisenberger et al., 2001). POS is therefore expected to have a positive effect on employees’ organizational commitment, as illustrated in the right-hand 1 Good overviews of the different contributions are found in Coyle-Shapiro and Conway (2004) and Cropanzano and Mitchell (2005). Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 63 Figure 1. The Organization–Employee Exchange Relation and New Management Initiatives. side of Figure 1, which shows the reciprocal mechanism in the organization– employee exchange relationship. POS itself is expected to be affected by the organization’s support of its employees, that is, the extent to which it values their contributions, cares about their well-being, and aids them. The applicability of the hypothesized exchange relationship to public organizations must consider at least two features that distinguish public organization– employer relationships from private ones. First, public employees tend to be more oriented toward serving society, which can be captured by the notion of public service motivation (PSM, see, e.g., Brewer, Selden, & Facer II, 2000; Perry, 2000). Therefore, public employees’ commitment may be more influenced by their PSM than by their perception of their organization, that is, they are more oriented toward society than toward the organization. This may dampen the reciprocal organization– employee relationship (Coyle-Shapiro & Kessler, 2003). Second, compared to their private counterparts, public managers are limited in their use of personal profitmaximization incentives to affect employee commitment (Wilson, 1989). This increases the importance of other forms of motivation, such as POS and PSM, compared to private settings. Although the distinctiveness of public organizations may either dampen or increase the importance of the reciprocal organization–employee relationship, empirical evidence clearly demonstrates a positive correlation between POS and commitment in public organizations (Armeli et al., 1998; Coyle-Shapiro & Kessler, 2003; Eisenberger et al., 1997; Gould-Williams & Davies, 2005). This underlines the importance of social exchange relationships in public organization settings. Notably, Coyle-Shapiro and Kessler’s (2003) study of more than 5,700 public employees from different sectors in the United Kingdom found that public employees’ organizational commitment was correlated to their POS. While the causal relationship between these interrelated phenomena are notoriously difficult to test in cross-sectional surveys, a number of laboratory experiments with high internal validity have been used to show how these norms of reciprocity actually make people act more cooperatively than would be expected from a rational choice point of view (Bottom et al., 2006; Molm, Peterson, & Takahashi, 2003; Molm, Takahashi, & Peterson, 2000). However, social exchange research in the public management context has paid less attention to the question of how new management initiatives—organizational Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 64 / Intensifying Social Exchange Relationships in Public Organizations support initiatives—can increase POS. In contrast, research within rational choice theory has developed and tested a number of practical implications of public management theory—for instance pay-for-performance schemes and other quid pro quo, economically incentivized contracts. Here, studies have found that payfor-performance schemes do not always increase employees’ efforts (Andersen & Pallesen, 2008; Frey, 1997; Weibel, Rost, & Osterloh, 2010). What are similar implications of social exchange theory for public managers? Management initiatives founded in rational choice theory are based on the assumption that agents do not perform a task for their principals without a credible promise, for instance a contract, that they will receive some good in return. This is fundamentally different from social exchange theory that assumes that agents will put more effort into their work if they feel supported by the organization—even if this support comes in intangible forms without demanding any quid pro quo. Laboratory experiments are of limited help in this regard because of their relatively low external validity. According to the theory, organizations are already the result of a number of previous social exchanges that may affect the perception of new management initiatives. This is not easily captured in the artificial settings of laboratory experiments. On the other hand, cross-sectional surveys, which are often used within this research area, are not ideal for sorting out the causal exchange between these factors: Are changes in POS and commitment a result of a change in organizational support, or are changes in organizational support caused by changes in POS and commitment? Social exchange theory predicts that they are both in the sense that increased employee commitment will increase the employers’ organizational support because of a norm of reciprocity (see Figure 1). We argue that the best way to test the effect of new management initiatives on POS would be a randomized field experiment in which researchers randomly assign the treatment to one group of employees and compare their POS to that of a control group.2 Unfortunately, this method is seldom used within public management research. In a review of the field, Margetts (2011) shows that while the number of experimental studies within political science increased dramatically in the 1990s (see also McDermott, 2002), only scattered examples are found within public management (see also Brewer & Brewer, 2011; Coyle-Shapiro & Shore, 2007). Hence, the literature lacks empirical tests of which new management initiatives can enhance POS in organizations in which these reciprocal relationships may already be at play. The aim of our study is to examine this issue, which is illustrated in the box to the left in Figure 1. The general definition of organizational support states that it concerns the organization’s ability to value employees’ contributions, care for their well-being, and aid them so they can carry out their jobs effectively (Eisenberger et al., 1986; Rhoades & Eisenberger, 2002).3 Rhoades and Eisenberger (2002, p. 698) stress that “social exchange theorists argue that resources received from others are more highly valued if they are based on discretionary choice rather than circumstances beyond the donor’s control.” Such voluntary aid is welcomed as an indication that the donor genuinely values and respects the recipient. However, the literature does not restrict organizational support to any specific type of aid or valuation of employees’ contributions. It emphasizes that organizational support may present itself in many different forms. A very large number of 2 3 For a more elaborate discussion of the benefits of randomized field experiments, see Margetts (2011). This notion of organizational support corresponds to the items developed by Eisenberger et al. (1986, 2001) to measure employees’ perceptions of organizational support, for instance: “The organization is willing to help me if I need a special favor,” “help is available from the organization when I have a problem,” and “the organization values my contributions to its well-being.” Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 65 organizational characteristics seem to be associated with employees’ perception of the supportiveness of their organization. Among suggested antecedents of POS are the fairness of the organization, often conceptualized as structural and social aspects of procedural justice (Cropanzano & Greenberg, 1997), (perceived) supervisor support (Kottke & Sharafinski, 1988), pay and promotions, job security, autonomy over job, and training (Rhoades & Eisenberger, 2002). Although this plethora of organizational characteristics gives an impression of the many ways POS may be induced, they provide little guidance concerning which management initiatives could increase employees’ POS—and subsequently their commitment. This is no trivial task. Should support, for instance, be supplied as an offer—relying on employees’ willingness and ability to ask for help—or should support be given by fiat, risking that some employees find that resources are wasted on kinds of support that they do not need? To move research from studying the relationship among POS, commitment, and effort, to studying the practical implications for public managers, the present study uses a random assignment field experiment to test the effect of one way of increasing organizational support. The next section presents how this initiative was designed according to the organizational support theory as well as the empirical setting and the design of the experiment in general. DESIGN AND DATA A test of this kind of management in practice through a randomized field experiment requires cooperation with a public organization taking initiatives to increase exchange relationships with its employees. We conducted the experiment in cooperation with the local government in Aarhus, Denmark, which was planning initiatives aimed at the frontline level prior to the experiment. The study case is targeted language support of three- to five-year-old bilingual children that is managed by local governments and delivered through public child-care centers. The children receiving this extra support are children of immigrants who do not speak Danish as their first language. The mean share of bilingual children in the child-care centers in the experiment is 0.34. Hence, providing targeted language support for bilingual children is an important task for the child-care centers and employees. Furthermore, targeted support for second language learners is both a demanding and fairly new task for the employees. Like many European countries, Denmark witnessed a large increase in immigration during the late 1990s, which enhanced the need for the task considerably. As an educational service, the examined task thus resembles some of the most common public services. In the present setting, local governments are responsible for managing most of the public welfare services such as public child-care, primary schooling, elderly care, and social services. The study was conducted on public child-care centers (73 percent of all child-care centers in the setting). Moreover, the study includes only child-care centers that had at least one bilingual child enrolled by April 15, 2009, which marked the experiment’s starting point. In sum, 117 public child-care centers were included in the study. Treatment Design Considerations As mentioned, organizational support may take on a variety of forms. The design of a treatment that tests a management initiative to increase POS is, however, subject to a number of restrictions. First, it must, of course, comply with the general notion that organizational support concerns the organization’s ability to value its employees’ contributions, care for their well-being, and aid them so they can Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 66 / Intensifying Social Exchange Relationships in Public Organizations carry out their jobs effectively (Eisenberger et al., 1986; Rhoades & Eisenberger, 2002). Second, it should be evident that it is actually based on discretionary choice rather than circumstances beyond the managers’ control, because this will be valued more by the employees according to the theory. Third, the support should have no strings attached because it should not test the effect of a contractual relationship, but a relationship based on reciprocity. For that reason, it may well use intangible goods such as support and recognition rather than a massive increase in economic resources. Because the theory of social exchange contends that social exchanges are made out of a norm of reciprocity, organizational support should be provided on a voluntary basis and not as something in which the employees are required to take an active part. Fourth, to test an initiative that is in the hands of upper-level public managers, it should be an intervention that can be initiated directly by such managers. They cannot be in daily contact with all street-level workers, so the initiative should work through someone who the upper-level managers can manage. Fifth, for ethical reasons, it should be an intervention that could realistically be prolonged by the organization itself in case the results of the test give reasons for that. It would not be fair to the organization to test a very costly intervention, demonstrate its success, and then leave the organization with no chance of prolonging the initiative. The organizational support treatment is designed in accordance with these requirements. The following sections describe the organizational support treatment and the Hawthorne treatment. Organizational Support Treatment The organizational support treatment in our experiment consisted in providing the child-care centers with a special language consultant from the central administration, whose function it was to visit the child-care centers individually and offer a decentralized, professional, and appreciatory support to the employees. The special consultant was an expert in second-language learning. The sole concern of the special consultant was to support the child-care employees based on their needs. We attempted to meet the requirements mentioned above as follows. (1) The special consultant was a trained specialist in language development and offered the child-care workers advice and training on how to work with the bilingual children, as well as assistance in resolving concrete cases. The special consultant’s job instruction emphasized that she should provide appreciatory support and express respect and valuation of the jobs carried out by the childcare employees.4 The special consultant was assigned a coach to help in this endeavor, and a number of meetings between the special consultant and the researchers were held prior to the intervention to ensure that the special consultant was familiar with the purpose and goal of the appreciatory approach. (2) The child-care employees were told that the special consultant was a new initiative taken by the department—not because there was a need, but as a way to help and support them in their important task. (3) It was made clear that the special consultant was an offer that had no strings attached—it demanded no quid pro quo. The special consultant was meant to respond to the needs and requests of the child-care employees. The special consultant did not impose new tasks on the child-care employees or control the work in the child-care centers. The special consultant was thus an optional 4 The job description is available in the online appendix. All appendices are available at the end of this article as it appears in JPAM online. Go to the publisher’s Web site and use the search engine to locate the article at http://www3.interscience.wiley.com/cgi-bin/jhome/34787 Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 67 Table 1. The special language consultant’s visits to treatment centers. No. of visits Hours of visits (effective time in center) Total Mean Std. dev. Min. Max. (N) 105 210.25 2.44 4.89 1.45 3.91 0 0 6 17.75 (43) (43) resource. For instance, the special consultant was instructed to give the employees contact information and to inform them that they could call and write about anything, and that she would be happy to assist in looking at a certain child or group of children if needed. Hence, the organizational support consisted in the child-care employees’ access to expert assistance if they needed it. The support, in the sense that aid was available when needed, was therefore provided regardless of the child-care employees’ use of the assistance. (4) Although the expression of organizational support by supervisors of each childcare employee may be more valuable to them than the aid of a special consultant, such support is not easily initiated by central managers of the organization. It would be inconsistent with the theory of social exchange if top-level managers gave administrative fiat that supervisors should express obligation, commitment, and empathy toward the employees. To offer a special consultant’s aid was an initiative that could be taken by upper-level managers and provided to all parts of the organization. (5) It was central to the design of the support treatment that it reflected realistic interventions, that is, interventions that a local government’s administration could apply without making major changes in the allocation of its economic resources, rather than constructing inflated treatments that depended on a supply of research or project funds and thus could not be sustained after the trial period. Therefore, the treatments were not supported by any research funds, but entirely funded by the local government. The managers set a budget for the intervention that could realistically be sustained after the trial period. Indeed, more support would, all else being equal, be expected to have a greater impact than less support, but in this case, this concern had to be balanced against the concern for an economically sustainable treatment. The treatment was initiated in the spring of 2009. The special consultant contacted the child-care centers, gave a brief introduction to the purpose of the initiative, and arranged to visit the centers. The special consultant made it clear that the initiative was optional for the centers. Interviews with both the special consultant and childcare employees during the intervention indicated that the special consultant and the initiative were generally well received by the employees. The employees could contact the special consultant to arrange visits or receive advice on the phone. Table 1 shows descriptive statistics of the special consultant’s visits to the childcare centers in the treatment period. The special consultant made 105 visits and spent 210.25 hours in the 43 treatment centers. Only three centers opted out in the sense that they had no visits. Most centers (74 percent) were visited more than once. Most importantly, however, all centers received the visits they asked for. This means that all centers received the treatment in the sense that they were offered the assistance without being required to accept a minimum or maximum number of visits. The number of visits was decided by the child-care centers. The child-care centers used the special consultant in different ways. Some asked for general advice and training while others asked for assistance and advice in concrete cases. Most often, the special consultant took part in daily work situations when providing the assistance. Thus, much of the visits consisted in providing Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 68 / Intensifying Social Exchange Relationships in Public Organizations on-the-floor advice on language development techniques in relation to specific children. The concrete guidance and content of the visits were based on the concern for the employees’ specific needs in relation to the task of language development. When appropriate, the special consultant expressed appreciation of, and the importance of, the child-care employees’ contribution to the children’s language development. The organizational support treatment is described further in the online appendix.5 Hawthorne Treatment One concern is that employees may change their perceptions and commitment, not because of the increased organizational support but because they are being studied, that is, as a consequence of a Hawthorne effect (see Adair, 1984). Furthermore, employees’ perceptions and commitment may change because of a novelty effect (employees increase commitment because the initiative is new). Therefore, besides comparing the organizational support treatment to the control condition, it is also compared to a Hawthorne treatment. A program was designed to support the bilingual children’s families in their work with their children to learn Danish. Each bilingual child in these centers received a suitcase containing books, games, and a video tutorial. The language consultants from the municipality’s central administration designed the content of the suitcase, which was delivered to the families by the child-care workers. Thus, the program had the same characteristics as the organizational support treatment in terms of being a new initiative, implemented through the child-care centers, potentially improving the language of the bilingual children, and evaluated in the same way as the organizational support initiative. Therefore, it contains the same potential Hawthorne and novelty effects. Ethical Considerations Several ethical considerations apply to the study as a result of the experimental design, in which some employees and users are offered additional support while others are not. First, it is important to underline that the control group received the same support as it would have if the experiment was not conducted. Second, new initiatives are often implemented gradually in an organization so that some, but not all, employees and users in a certain trial period receive a given support or are involved in additional efforts that we do not know the effects of. Third, the treatment is chosen on the basis of previous research, which indicates that the treatment has positive, or at least neutral, effects. Fourth, all employees and families were offered the treatments on an optional basis, that is, they could either accept or refuse to participate in the initiative. Furthermore, the project has been submitted to the relevant bodies for ethical consideration.6 5 All appendices are available at the end of this article as it appears in JPAM online. Go to the publisher’s Web site and use the search engine to locate the article at http://www3.interscience.wiley.com/cgibin/jhome/34787 6 The project has been submitted to the Research Ethics Committee, Region Central Jutland, and in a written answer, the committee stated that the project does not need to further notify, or be evaluated by, the committee. Moreover, the project has been approved and registered by the Danish Data Protection Agency. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 69 The Experimental Design The experiment includes one control group and two treatment groups, corresponding to the two interventions described above. To avoid experimental contamination, that is, that the treatments are diluted because control group subjects are exposed to the treatments, we assigned clusters of child-care centers to the groups instead of individual centers. Each cluster of child-care centers consists of one to five centers and is managed by a middle manager. Centers within a cluster cooperate on various issues. Supporting some centers within a cluster, but not others, could result in the employees in the control group being affected (positively or negatively) by the fact that their colleagues in other centers within the cluster were offered support that they did not receive themselves. In the statistical analyses, cluster effects are handled by generalized least squares (GLS) random effects regressions with child-care centers as a grouping variable, because spatial autocorrelation is stronger at the lower level. The analysis has been replicated in a multilevel model with employees nested within centers within clusters of centers with no substantial impact on the results. In total, 41 clusters of child-care centers, containing 117 centers and 825 frontline employees, were assigned to one of the three groups. Before the random assignment, the clusters were stratified to ensure homogeneous groups.7 Table 2 shows descriptive statistics on how different variables are distributed over the three experimental groups. The table shows that the assignment procedure generally resulted in a balanced set of groups. Very few statistically significant differences are found between the organizational support group and the two other groups (indicated with asterisks in Table 2). Furthermore, in robustness analyses we include the unbalancing covariates in the models, which does not change the results. In our analysis, we apply the intention-to-treat principle, in which the participants are analyzed in the groups to which they were randomly assigned (Hollis & Campbell, 1999). The advantage is that the analysis utilizes the random assignment in contrast to using an approach in which the participants are analyzed in the groups to which they belong at the end of the experiment. Thus, participant movement is not necessarily random. This entails that child-care employees who move between the groups are placed in their original groups in the analyses. However, it was not possible to include people who stopped working as child-care employees in the municipality during the test period, as they are deleted from the administrative data used to contact them. To increase precision levels in our analysis and thereby—all else being equal— increase the statistical power of the study (Raudenbush, 1997; Sochet, 2008), we include a pretest of POS and commitment in the model. We use a simple differencein-difference estimator utilizing pre- and posttests among the employees to evaluate the effect of the organizational support treatment on POS and commitment. However, not all respondents from the pretest responded to the posttest and vice versa. Consequently, the gain in power from including the pretest variable in the analysis may be set back by the reduction of respondents. We therefore supplement the pretest–posttest model with a model in which only the posttest POS and commitment are used, and the participants are analyzed in the experimental groups to which they belong at the end of the experiment. This approach provides more 7 Stratification variables include the following: (1) bilingual children’s expected Danish proficiency at school entry calculated by a model including socioeconomic variables, (2) child-care employees’ taskspecific POS in 2008, and (3) the centers’ share of bilingual children. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 70 / Intensifying Social Exchange Relationships in Public Organizations Table 2. Balance test prior to intervention (2008). Organizational support Control Hawthorne treatment group treatment Dependent variables General POS (0 to 10, 10 = high POS) Task-specific POS (0 to 10, 10 = high POS) General organizational commitment (0 to 10, 10 = high commitment) Task-specific commitment (0 to 10, 10 = high commitment) Child-care employees Age Tenure No. of sick days, 2007 to 2008 Wage (adj. for no. of working hours) Frontline manager (=1, not manager = 0) Woman (=1, man = 0) Attitudes toward specific task (0 to 10, 10 = positive attitudes toward task) Stress (0 to 10, 10 = highly stressed) Child-care centers No of child-care employees (n) No. of child-care centers (n) No. of clusters of child-care centers (n) No. of children Share of bilingual children Budget for language support (1,000 DKK) Users’ socioeconomic status Mother’s education Primary school Vocational training High school Higher education, undergraduate Higher education, postgraduate Father’s education Primary school Vocational training High school Higher education, undergraduate Higher education, postgraduate Total 3.54 3.14 2.93 3.29 (n = 343) 5.28 5.27 5.09 5.25 (n = 347) 3.94 3.62 3.73 3.82 (n = 412) 4.58 4.56 4.67 4.60 (n = 410) 42.88 10.45 18.98 28.29 42.64 11.39 28.28* 28.67 43.87 11.44 21.78 27.86 43.04 (n = 678) 10.87 (n = 678) 22.77 (n = 678) 28.29 (n = 678) 0.18 0.18 0.18 0.18 (n = 678) 0.90 7.82 0.90 7.87 0.88 7.73 0.89 (n = 678) 7.82 (n = 406) 6.39 6.89 6.95 6.68 (n = 426) 301 43 14 31.72 0.34 87.84 257 35 14 34.46 0.30 94.94 267 39 13 30.09 0.36 95.9 825 117 41 43.44 (n = 116) 0.34 (n = 116) 92.59 (n = 107) 0.31 0.20 0.10 0.25 0.26 0.18 0.15** 0.26 0.30 0.17 0.12 0.26 0.29 (n = 5983) 0.19 (n = 5983) 0.12 (n = 5983) 0.26 (n = 5983) 0.14 0.15 0.15 0.14 (n = 5983) 0.24 0.27 0.10 0.23 0.20 0.26 0.11 0.24 0.26 0.24 0.11 0.22 0.23 (n = 5906) 0.26 (n = 5906) 0.10 (n = 5906) 0.23 (n = 5906) 0.16 0.19 0.17 0.17 (n = 5906) Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 71 Table 2. Continued. Organizational support Control Hawthorne treatment group treatment Rented house (=1, ownership = 0) Household income (1,000 DKK) Attrition (=1, no attrition = 0) from 2008 to 2010, dependent variables 0.56 0.66* Total 0.65 0.62 (n = 6492) 491.64 (n = 7530) 506.94 474.81 479.94 0.51 0.45 0.46 0.48 (n = 287) Note: The cells display means, unless otherwise stated. *p < 0.05; **p < 0.01. Two-tailed significance tests of difference between organizational support group and the control and Hawthorne groups, respectively. respondents and less attrition to the estimation as we can use all of the respondents who answered the 2010 survey. Measuring the Dependent Variables The dependent variables, POS and employee commitment, were measured by two surveys, one in December 2008 prior to the intervention, another in January 2010, nine months after the intervention was initiated. If POS had been measured immediately after the first visits, we might have been measuring a novelty or warm glow effect. After nine months, the vast majority had received more than one visit. On the other hand, effects might dissipate after nine months, but if managers want lasting effects, they should expect to prolong the intervention. Fifty-one percent of the population returned the questionnaire in 2008, and 55 percent returned the questionnaire in 2010.8 Thirty percent returned both questionnaires. The attrition rates (share of employees who did not provide information on the dependent variables in 2010 based on those who provided information on the dependent variables in 2008) do not differ significantly between the organizational support group and the control and Hawthorne groups, respectively (see bottom of Table 2). A nonresponse analysis presented in Table 3 shows minor differences on age, gender, size of child-care centers, and share of frontline managers. The sampling bias is not large, but it implies that the accuracy in the descriptive statistics is slightly reduced. However, there are no differences in the number of sick days, wage, number of children, and share of bilingual children. Moreover, because the experimental groups are nicely balanced and attrition rates do not differ significantly between the groups (see Table 2), the causal effect estimations are not expected to be substantially affected by nonresponse. We used two measures of POS. One is the employees’ general perception of the organization’s support (general POS), which uses the six high-loading items (used by Eisenberger et al., 2001) from the survey of POS (Eisenberger et al., 1986, p. 502, 8 The response rates are calculated on the basis of the entire study population of child-care employees (both employees with and without contact information were included in the calculation). Contact information was missing for some child-care employees. A calculation based on to whom the questionnaire was sent to (excluding employees with missing contact information) shows that 65 percent of the child-care employees answered in 2008 and 55 percent in 2010. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 72 / Intensifying Social Exchange Relationships in Public Organizations Table 3. Nonresponse analyses, child-care employee surveys. Nonrespondents Respondents Nonrespondents Respondents 2008 2008 2010 2010 Child-care employees Age Tenure No. of sick days, 2007 to 2008 Wage Frontline manager (=1, not manager = 0) Woman (=1, man = 0) Characteristics of employee’s child-care center No. of children Share of bilingual children Budget for targeted language support 42.06 10.32 24.19 43.62* 11.19 21.83 41.71 9.78 23.96 44.52** 12.08** 21.27 27.99 0.20 27.66 0.17 27.95 0.10 27.61 0.18* 0.87 0.91 0.86 32.83 0.32 34.28** 0.35 33.23 0.35 34.29* 0.33 68.32 75.83 71.25 75.29 0.93** Note: The cells display means, unless otherwise stated. *p < 0.05; **p < 0.01. Two-tailed significance tests of the difference between nonrespondents and respondents. items no. 1, 4, 9, 20, 23, and 27). Except where noted, the respondents indicated the extent of their agreement with each item on a 7-point Likert scale (1 = strongly agree, 7 = strongly disagree). The item wordings and factor loadings are shown in Table 4. The six items were included in the additive index General POS, ranging from 0 to 10 (10 = high POS). This measure is supplemented by a four-item measure of the employees’ POS with regard to the task of targeted language support of bilingual children (Task-specific POS, 0 to 10, 10 = high POS, see Table 4). As the increased organizational support concerns a specific task (the work with targeted language support of bilingual children), one would expect the increased support to primarily affect employees’ perceived support regarding that task rather than the employees’ general perceived support from the organization. Three of the task-specific POS items have been taken from Eisenberger et al. (1986, p. 502, items no. 1, 8, and 10), but adjusted to incorporate the task-specific element. In addition, we constructed an item measuring the cooperation between the organization and the employees regarding the specific task. The correlation (Pearson’s r) between the general POS and the task-specific POS is 0.57 in 2008 and 0.65 in 2010. We used two items from Eisenberger et al. (2001, p. 45, items no. 23 and 24) to measure the employees’ general organizational commitment (0 to 10, 10 = high commitment, see Table 4, items 13 and 14). Like the POS measure, we supplemented the general commitment index with a task-specific commitment measure (0 to 10, 10 = high commitment) that included two self-constructed items (see Table 4). Item 14 was included in the 2010 survey to replace an item in the 2008 survey measuring task-specific commitment that did not work as expected. As item 14 was not present in the 2008 survey, it is not included when examining the change in task-specific commitment. As shown in the next section, the commitment indexes correlate with POS very much like they do in previous research, which gives us confidence that the items provide valid measures. The correlation (Pearson’s r) between the general commitment and the task-specific commitment is 0.15 in 2008 and 0.32 in 2010. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 73 Table 4. Items and factor loadings. Item Factor loading 2008 General POS (0 to 10, 10 = high POS; Alpha, 2008 = 0.91; Alpha, 2010 = 0.91) 1. The organization strongly considers my goals and values 2. The organization shows little concern for me (R) 3. The organization values my contributions to the delivery of the best possible service 4. The organization really cares about my well-being 5. The organization takes pride in my accomplishments 6. The organization is willing to help me if I need a special favor Task-specific POS (0 to 10, 10 = high POS; Alpha, 2008 = 0.84; Alpha, 2010 = 0.88) 7. The organization values my contributions to the targeted language support of bilingual children 8. We have a comprehensive cooperation with the organization regarding targeted language support of bilingual children 9. Help and support is available from the organization with regard to the targeted language support of bilingual children 10. The organization is willing to extend itself in order to help me perform targeted language support of bilingual children to the best of my ability General commitment (0 to 10, 10 = high commitment; Pearson’s r 2008 = 0.59; Pearson’s r 2010 = 0.62) 11. I feel a strong sense of belonging to the organization 12. I am proud to tell others I work at the organization Task-specific commitment (0 to 10, 10 = high commitment; Pearson’s r 2010 = 0.35) 13. I see it as a personal victory when a bilingual child from the child-care center becomes good at Danish 14. Working with targeted language support has a great deal of personal meaning to me Factor loading 2010 0.84 0.84 0.72 0.90 0.68 0.88 0.86 0.84 0.89 0.85 0.83 0.86 0.75 0.81 0.85 0.86 0.88 0.90 0.83 0.87 Note: Factor loadings are not calculated for general commitment and task-specific commitment (Pearson’s r correlations are used to examine the association between the items). EMPIRICAL TEST In Table 5, we replicate the well-established relationship between POS and commitment using our data on Danish public child-care employees. Employees who perceive the general organizational support as high are also more committed to their organization than employees who feel less supported by the organization (Models I and III). Similarly, we find a significantly positive relationship Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 74 / Intensifying Social Exchange Relationships in Public Organizations Table 5. Relationship between POS and commitment, 2008 and 2010. 2008 Survey Model I Dependent variable Explaining variables General POS Task-specific POS Child-care employee variables (control) Gender (female =1, male = 0) Tenure Manager (yes =1, no = 0) Number of sick days during 2007 and 2008 Wage (DKK 1,000) adjusted for number of working hours Stress (0 to 10, 10 = highly stressed) Unit language worker (yes =1, no = 0) Language counselor (yes =1, no = 0) Constant N Number of groups R2 2010 Survey Model II Model III General TaskGeneral organizational specific organizational commitment commitment commitment 0.82 (0.04)** Taskspecific commitment 0.87 (0.04)** ** 0.20 (0.05)** 0.10 (0.03) −0.32 (0.27) Model IV 0.14 (0.22) 0.39 (0.32) 1.07 (0.36)** 0.006 (0.01) −0.012 (0.01) 0.03 (0.24) 0.09 (0.31) 0.004 (0.003) −0.004 (0.003) 0.02 (0.01) 0.75 (0.27)** 0.002 (0.002) 0.001 (0.01) 0.64 (0.22)** 0.001 (0.002) −0.02 (0.03) −0.06 (0.03)* 0.03 (0.04) 0.03 (0.05) −0.02 (0.04) 0.049 (0.03) 0.02 (0.03) 0.02 (0.04) −0.33 (0.19) 0.43 (0.24) 0.26 (0.25) 0.39 (0.31) 0.11 (0.19) −0.25 (0.26) 0.34 (0.16)* 0.05 (0.21) 1.76 (0.99) 5.16 (0.86)** −0.15 (1.05) 4.26 (1.41)** 324 89 0.62 330 91 0.09 266 91 0.15 266 93 0.71 Note: Two-tailed significance tests. GLS random effects regressions with child-care centers as grouping variable. Standard errors are presented in parentheses. *p < 0.05; **p < 0.01. between the task-specific POS and the task-specific commitment (Models II and IV). The result shows that Eisenberger and his colleagues’ theory of organizational support can be generalized also to the present empirical setting of exchange relationships between the organization and the public child-care centers. Furthermore, the result confirms that the translated survey questions are useful for testing whether increased organizational support affects perceived support and commitment. Table 6 presents the results of testing the effect of the management initiative on the employees’ POS as well as their commitment. Models I to IV use the change in general POS, task-specific POS, general commitment, and task-specific commitment as dependent variables. Models V to VIII use the posttest variables. Each model includes a dummy variable identifying the organizational support treatment group and a dummy variable identifying the Hawthorne treatment group (the control group works as a reference category). Moreover, Models I to IV each include a variable measuring the initial (2008) level of general POS, task-specific POS, general commitment, and task-specific commitment, respectively, to account for any ceiling effects. For instance, employees with high initial POS cannot increase their POS as Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 182 84 0.13 1.71 (0.25)** 195 82 0.20 2.64 (0.34)** −0.35 (0.05)** −0.25 (0.31) −0.27 (0.30) −0.26 (0.05)** −0.02 (0.27) −0.23 (0.26) task-specific POS, 2008 to 2010 general POS, 2008 to 2010 247 87 0.22 2.45 (0.28)** −0.39 (0.05)** −0.34 (0.43) −0.13 (0.31) general commitment, 2008 to 2010 Model III 243 86 0.28 2.36 (0.28)** −0.52 (0.05)** −0.12 (0.18) −0.10 (0.16) task-specific commitment, 2008 to 2010 Model IV 393 110 0.01 4.18 (0.21)** 0.01 (0.30) 0.31 (0.30) General POS, 2010 Model V 399 109 0.01 6.09 (0.20)** −0.07 (0.28) 0.29 (0.28) Task-specific POS, 2010 Model VI 479 110 0.01 4.53 (0.20)** 0.19 (0.28) 0.46 (0.29) General commitment, 2010 Model VII 450 111 0.00 7.26 (0.16)** 0.01 (0.24) 0.10 (0.23) Task-specific commitment, 2010 Model VIII Note: p values test the one-sided hypothesis. GLS random effects regressions with child-care centers as grouping variable. Standard errors are presented in parentheses. Item number 14 in Table 4 was only included in the 2010 survey and therefore not used when examining the change in task-specific commitment. *p < 0.05; **p < 0.01. N Number of groups R2 Control variables General POS, 2008 Task-specific POS, 2008 General commitment, 2008 Task-specific commitment, 2008 Constant Experimental treatments (ref. = control group) Organizational support treatment Hawthorne treatment Dependent variable Model II Model I Table 6. Treatment effects on POS and commitment. Intensifying Social Exchange Relationships in Public Organizations / 75 Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 76 / Intensifying Social Exchange Relationships in Public Organizations much as employees with low initial POS. Leaving that variable out of the model does not change the conclusions. Table 6 shows that the organizational support treatment does not have a statistically significant effect on the change in the employees’ POS, regardless if we look at the general or task-specific POS (see Models I and II). These models use the difference-in-difference estimator combined with the intention-to-treat design. This design provides the highest internal validity. On the other hand, it has fewer respondents. However, Models V and VI show that using only the posttest POS measure and the end-group design does not produce significant estimates even though the coefficients change from negative to positive. For that reason, it is no surprise that we do not find any effect on general or task-specific commitment in either the difference-in-difference models (III and IV) or posttreatment models (VII and VIII). The Hawthorne treatment did not have an effect on POS or commitment either. Robustness analyses show that the results do not change if we include covariates in the models. We also assured that the effect of the organizational support treatment is not contingent on whether the child-care centers have large or small shares of bilingual children. MODERATING MECHANISMS: A SUBGROUP ANALYSIS The results presented in Table 6 show that the management initiative had no average effect on employees’ POS. However, the results raise a number of issues for future studies. A central concern in the design of the initiative was that the support should be an offer, not a requirement, that is, it was voluntary for the child-care centers to accept the offer. All centers but three accepted the offer, and the vast majority asked for more support. However, there was also some variation in the number and length of the visits by the consultant (see Table 1). This leads to the question of who made the most use of it. Bivariate analyses reveal that local frontline managers who felt less supported, less committed, and more stressed prior to the intervention had more and longer visits than the rest of the treatment group. Furthermore, more and longer visits are associated with the perception of being more supported afterwards. This suggests that we should expect the new management initiative to have the largest positive effect in the child-care centers where the local manger felt less supported at the outset. We examine this by interacting local managers’ general POS (0 to 10, 10 = highest POS) prior to the intervention with the treatment variable. Consequently, only employees whose local manager responded to the survey in 2008 were included in this analysis, which lowers the number of observations compared to the previous analyses (see Table 6). Table 7 shows the results of this subgroup analysis when examining the treatment effects on task-specific POS. The results confirm the expectation. The constitutive term of the treatment variable now shows the effect for child-care centers where the local manager did not feel supported at all before the intervention, that is, cases that take the value 0 on the local manager’s POS in the pretest. For this group of employees, the treatment increases the employees’ POS significantly in both the difference-in-difference model (Model I) and the posttreatment model (Model II). Following Brambor, Clark, and Golder (2006), we illustrate the marginal effect of the treatment initiative across different values of managers’ ex ante POS. This is done in Figure 2. We see that the management initiative has a positive, significant effect on the change in POS in child-care centers where the manager scores between 0 and 2.15 on the pre-POS measure (about 19 percent of the employees), although there is no statistically significant effect on the rest of the child-care centers. Using Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 77 Table 7. Treatment effect on task-specific POS contingent on frontline manager’s POS. Dependent variable Experimental groups (ref. = control group) Organizational support treatment Hawthorne treatment Local frontline manager General POS of frontline manager (2008) Organizational support treatment × General POS of frontline manager (2008) Control Task-specific POS, 2008 Constant N Number of groups R2 Model I Model II task-specific POS, 2008 to 2010 Task-specific POS, 2010 1.39 (0.59)* −0.26 (0.33) 1.90 (0.72)** 0.19 (0.39) 0.16 (0.08) 0.31 (0.10)** −0.29 (0.12)* −0.39 (0.06)** 2.24 (0.42)** 146 58 0.27 −0.34 (0.15)* 4.73 (0.44)** 192 65 0.08 Note: p values test the two-sided hypothesis. GLS random effects regressions with child-care centers as grouping variable. Standard errors are presented in parentheses. *p < 0.05; **p < 0.01. the post-POS measure as a dependent variable, the marginal effect is significant up to 3.25 on the pre-POS measure (not shown) corresponding to about 32 percent of the employees. These effects are also found if we use the Hawthorne group as control instead of the regular control group. Hence, nothing indicates that the effect is a Hawthorne or novelty effect. Correlations between treatment and a certain subgroup should be interpreted cautiously when they are not part of the ex ante theoretical hypothesis. They may be coincidences rather than causal effects. Nevertheless, these results raise important considerations to both theory and praxis. These issues are discussed next. DISCUSSION The study has important implications for cross-sectional studies, psychological laboratory experiments, and public management research of social exchanges, as well as for practitioners in public organizations. First, research within areas such as POS (Eisenberger et al., 1986; Rhoades & Eisenberger, 2002), psychological contracts (Rousseau, 1989), and organizational citizenship behaviors (Konovsky & Pugh, 1994; Organ, Podsakoff, & MacKenzie, 2006) suggest that even without any economic incentives or contractual regulations, a positive self-reinforcing dynamic exists between workers’ motivation, behavior, and performance, on the one hand, and managers’ rewards and support to the workers on the other. We find the same cross-sectional correlation between employees’ POS and commitment in our study. However, the field experiment shows that increased organizational support does not automatically produce increased average perceived support or commitment. This finding shows that the reciprocal relation between Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 78 / Intensifying Social Exchange Relationships in Public Organizations Figure 2. Treatment Effect Contingent on Local Frontline Manager’s POS. Dependent variable: task-specific POS, 2008 to 2010. The observed range of local frontline manager’s POS in 2008 is 0 to 8.6. managerial support and employee motivation found in many cross-sectional studies should be interpreted with care. Especially, one cannot infer from these associations that increased organizational support will immediately result in increased commitment and effort. Second, laboratory experiments have convincingly demonstrated the psychological mechanism in social exchange relationships, in particular how actors can initiate exchanges individually by performing a beneficial act for another because norms of reciprocity make the other cooperate (Bottom et al., 2006; Miller & Whitford, 2002; Molm, Peterson, & Takahashi, 2003; Molm, Takahashi, & Peterson, 2000). Our field experiment shows that these results cannot be directly applied to real organizations outside the laboratory without taking into account the social exchanges already at play. In the subgroup analysis, we found that frontline managers’ prior levels of POS affected how they received the offer of more support and whether it had any effect on subsequent levels of perceived support. Theoretically, this subgroup analysis suggests that a more complex model of social exchange theory is needed to understand the dynamic moderating impact of previous experiences within the organization. In Figure 3, we suggest a modification of the theoretical model (cf. Figure 1) in which earlier levels of POS (at time t0 ) affects the way new initiatives are received and perceived (at time t1 ). New laboratory experiments are needed to test the psychological validity of this modification of the model. It should be possible to examine not just if repeated games increase the level of social exchanges, as expected by the simpler model in Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations / 79 Figure 3. Moderation of the Employee–Organization Exchange Relation. Figure 1, but also whether previous levels of perceived support interact with the way new beneficial acts are received and perceived, as suggested in Figure 3. Third, in our field experiment, the frontline managers seemed to play the role of gatekeepers, because their previous perceived support affected how the new support initiative was received. This finding suggests that along with research on the psychological mechanisms in social exchanges, more research in public management is needed if the theoretical notions are to be implemented in practice. Especially, the interplay between upper-level and lower-level managers seems important because the way lower-level managers feel supported seems to be important to the implementation of new upper-level managerial initiatives. Fourth, to practitioners the study shows that if new organizational support initiatives are offered on a voluntary basis, managers risk that only a minor group of employees make use of the offer to an extent that affects their POS. On the other hand, presenting a new organizational support initiative as mandatory may not result in the intended effects. According to the social exchange theory, the intricate interplay among organizational support, perception of organizational support, and employee commitment is based on intrinsic norms of reciprocity. This exchange relationship may not easily be altered by new management initiatives. It may even be undermined if employees feel that new mandatory initiatives are driven by upperlevel managers’ ulterior motives. Alternatively, managers may target their voluntary offer of support to groups that feel less supported at the outset. That may be a more efficient use of scarce resources. On the other hand, targeted support may have negative effects on those who are not offered support, for example, because of jealousy—or it may have negative effects on those selected because they might feel stigmatized. More theoretical and empirical work is needed to resolve these issues. CONCLUSION Based on social exchange theory, we have tested the effect of a new management initiative aimed at increasing public employees’ perceived support and commitment. The study demonstrates the importance of handling endogeneity when reciprocal relationships between managers and employees are studied empirically. The correlation between POS and commitment found in many cross-sectional studies was replicated in our study. However, the experiment shows that even if this pattern of support and commitment is found in many organizations, we cannot infer that an Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management 80 / Intensifying Social Exchange Relationships in Public Organizations increase in one factor automatically increases the next factor in the model. Reality seems to be more complex than that. Laboratory experiments may help test and develop modifications to the theory, including the psychological and sociological mechanisms at play. But if such theoretical insights are to be turned into managerial practice, field experiments are needed to test the effect in real organizations. Employees and managers already engage in exchanges, and they may therefore respond differently to treatments compared to participants in the laboratory. Particularly, the results of the field trial suggest that perceptions of previous organizational support affect the way new initiatives are received and perceived. These findings raise important considerations to both researchers and practitioners using social exchange theory. The results suggest that the relationship between managerial support and employee motivation found in cross-sectional studies within the psychology and management literatures should be interpreted with care. We cannot infer from these associations that increased organizational support necessarily increases commitment and effort. Furthermore, new organizational support initiatives must take into account mechanisms that moderate the effect on perceived support and commitment. Our results suggest a modification of the theoretical model that takes into account the social exchanges already at play. Specifically, the results contend that existing levels of perceived support among the receivers of new organizational support initiatives is important. MORTEN JAKOBSEN is Assistant Professor at the Department of Political Science and Government, Bartholins Allé 7, 8000 Aarhus C, Denmark. SIMON CALMAR ANDERSEN is Associate Professor at the Department of Political Science and Government, Bartholins Allé 7, 8000 Aarhus C, Denmark. ACKNOWLEDGMENTS This paper is a part of a major research project that conducted field experiments in cooperation with the Municipality of Aarhus. 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Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations APPENDIX: INTENSIFYING SOCIAL EXCHANGE RELATIONSHIPS IN PUBLIC ORGANIZATIONS This appendix contains additional information regarding the manuscript “Intensifying Social Exchange Relationships in Public Organizations: Evidence from a Randomized Field Experiment.” The appendix includes an expanded description of the organizational support intervention and setting, and additional results referred to in the paper. ORGANIZATIONAL SUPPORT TREATMENT Setting The experiment was carried out in cooperation with the Municipality of Aarhus in Denmark, which has a population of about 300,000. Due to a large increase in immigration during the 1990s, the city has experienced an increase in bilingual children who learn Danish as their second language. Consequently, public child-care centers (enrolling 3- to 5-year-old children) have been required to provide bilingual children with targeted language support. In Denmark it is quite normal for parents to enroll their children in child care during the daytime. In fact, 87 percent of all 3to 5-year-old children are enrolled in child care (Statistics Denmark, 2008, pp. 156– 157). Seventy-eight percent of all 3- to 5-year-old descendants of immigrants (the primary users of language support) are enrolled in child care. The cost of child care is shared between the users, who pay a monthly fee for enrollment in a child-care center, and the municipality. The study was conducted on public child-care centers (73 percent of all child-care centers in the setting). The mean share of bilingual children in the child-care centers included in the experiment is .34 (the distributions of the child-care centers’ number of children and proportion of children who learn Danish as their second language are shown for each of the three experimental groups in Figure A1). Hence, providing targeted language support for bilingual children is an important task for the child-care centers and the child care employees. However, it is also a difficult task. Because the task is relatively new, second language learning was not a part of the basic education for most of the child care employees. In practice, the child-care centers have a dual approach to the targeted language support. First, several times a week the child-care center’s bilingual children are gathered in small groups in which language activities adjusted to the children’s needs are undertaken (e.g., reading aloud, dialogic reading, singing, language games). Second, the child care employees try to incorporate the bilingual children’s language needs into care routines (e.g., eating, brushing teeth, and playing). The Special Language Consultant The experiment was conducted in cooperation with the Municipality of Aarhus, which was planning initiatives aimed at supporting the front level with regard to the task of providing bilingual children with targeted language support. The organizational support treatment in our experiment consists in providing the child-care centers with a special language consultant from the central administration, whose function it was to visit the child-care centers individually and offer a decentralized, professional, and appreciatory support to the employees. The special consultant is an expert in second language learning and the sole concern of the special consultant was to offer support to child care employees, based on their needs of assistance in performing the task of targeted language support of the bilingual children. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Figure A1. Distribution of Child-Care Centers: Number and Proportion of Bilingual children. The job instruction of the special consultant emphasized that she should provide appreciatory support expressing respect and valuation of the jobs carried out by child care employees—in accordance with the social exchange theory and POS framework. In addition to expertise within second language learning, the selection of the special consultant paid close attention to ensuring that the special consultant possessed human relations qualifications and the personality necessary to support the employees in an appreciatory way. Furthermore, the consultant was assigned a coach to help in this endeavor. The following translated version of the special consultant’s job description of how the treatment of organizational support was meant to be implemented was part of a longer document that also introduced the theory behind the treatment and the project in general. The description was delivered to the special consultant prior to the intervention as part of the special consultant’s preparations. A number of meetings between the special consultant and the researchers were held prior to the intervention to ensure that the special consultant was familiar with the purpose and goal of the initiative. The job description reads as follows: JOB DESCRIPTION Acknowledgement of effort and importance, autonomy and the opportunity to organize one’s work, ownership of one’s work, concern for the well-being of employees, and job training are important aspects of work life that affect an employee’s POS. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Eisenberger et al.’s (1986, 2001) measurements of POS show that it is a unidimensional, universal perception of the organization—that is, there is a large degree of correlation between the perception of the various elements in it. Strictly speaking, this must mean that a reinforcement of the OS (organizational support) in one area will result in a general increase in POS, all things being equal. According to the theory, OS to a great extent consists in intangible resources in the form of acknowledgement and concern for the well-being of employees. However, this may be expressed in more tangible forms (payment, promotion, etc.). To test politicians’ and administrators’ capacity to influence the public employees’ efforts without financial rewards, the treatment group of child-care centers must, first, receive the intangible resources in the form of acknowledgement of efforts (when relevant—it should not be a lavish praise that takes place regardless if the effort is worth acknowledging) and concern for the well-being of employees in all contexts in which contact takes place between the administration and the employees. Second, it should take place in the framework of a more tangible and organized support to help the employees perform their jobs better. The operationalization will therefore focus on the conditions that should have a positive effect according to the social exchange theory and existing nonexperimental studies, that is, acknowledgement from the organization of the employees’ contribution and importance, autonomy (see also Wilson, 1989), the absence of stressful additional tasks, support for handling new and difficult tasks, job training, and supervisor support. This will take place through a number of meetings between a project member (PM) [denoted “special consultant” in the article] employed in a part-time position (30 hours per week for one to two years) from the administration and the individual child-care centers (child-care centers). Three-quarters of PM’s time is allocated for reinforced organizational support. Start-Up of the Organizational Support on Staff Meeting at the Beginning of 2009 The organizational support from the administration is initiated through participation of PM at the next staff meeting, which is held (in January and February 2009) in the individual child-care centers belonging to the group that receives the organizational support. More specifically, PM contacts the individual child-care centers and arranges to participate on the next staff group meeting. The managers of the child-care centers have been informed about PM’s participation on a managers’ meeting on 5 January. Contact to the Child-Care Center in Connection with the Visit When contact is made with the child-care center to arrange the start-up meeting, PM’s function is explained very briefly. Already at this point, the child-care center will probably have an idea of PM’s function, which is why it is made clear that PM is to function as support from the administration in “Børn & Unge” [the children and youth administration] in relation to the language stimulation efforts already being made in the child-care center. It is therefore made clear that PM will not place new tasks on the pedagogues. PM draws up a plan for the contact to the child-care center departments containing the above elements, that is, PM’s function, and makes it clear that PM is to function as an additional support from the administration for an important task and that PM will not Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations introduce new tasks or mandatory procedures—PM will support the pedagogues in the tasks they are already carrying out. The Actual Staff Meeting At the staff meeting, PM makes a short presentation in which PM touches upon the importance of language stimulation, the pedagogues’ role, and PM’s future function. Subsequently, PM asks about the pedagogues’ experiences and challenges. The purpose of the meeting is for PM to r r r r r r account for the importance of an early effort with children with Danish as their second language (this point will in some/many cases probably be of greatest importance to the pedagogues who are not language pedagogues because the language pedagogues are in many cases the ones who best see the importance of an early effort), account for the importance of the pedagogues’ efforts in this regard, ask about the pedagogues’ experiences with language stimulation, account for the importance of a day-to-day language effort among all the pedagogues in the child-care center, account for the political and organizational focus on the problem. In this connection, PM can mention that the subject receives significant attention from the administration because an early effort appears to be of great importance, mention the limitations in resources that are inevitable—but that everything will be done within these limitations to assist the pedagogues in their work. The extra effort is exactly an attempt to prioritize the language effort. PM can also explain that no journal or control will be made for the administration. If so wished, a time for the next follow-up meeting can be arranged at the staff group meeting. Underlining that this is not a new task from the administration, but support for the task they are already carrying out is crucial—PM can therefore function as a resource for the pedagogues to draw on. In this connection, PM could mention that the child-care center can of course make use of the existing language consultants from the municipality’s administration to the same extent as before. The support and process should be arranged to accommodate the employees in the individual child-care centers the best way possible. Ideas for how PM’s function can be best explained can be found in Appendix A. Moreover, the meeting and the following effort should include the employees’ experiences with what works well and what causes problems—obviously combined with PM’s experience. Generally, everyone should have PM’s telephone number and e-mail and be informed that they can call and write about anything and everything, and that he or she will be happy to come out and assist in looking at a certain child or group of children if there is a need for it. PM can suggest a work plan, e.g., a template like the project model used in the children and youth department (see below), or a template that the pedagogues are used to working with, where sub-goals can be made within the general goal of improved language development—for instance, a certain work method or goals for the individual children. In that case, it should be emphasized that using the project model is optional and entirely up the staff. In other words, the model can be used if the pedagogues find it useful—it should not be seen Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations as a demand for registration or unnecessary filling in of forms. Furthermore, it should be mentioned that if the staff are reluctant to use the templates that they usually work with, using these would be unsuitable. Project title: Strategic goals Project goal Description Indicators Risk assessment Established in advance by the strategic management Established in advance for the entire project Established in advance for the entire project In what way could local project processes hinder the results of the local project from adding value to the entire project? In what way could local project processes hinder planned activities in leading to the required results? Results Total list of results for the entire project Activities List of activities in the individual local project Total resource requirements for all local projects Conditions that must be present for the individual local project to be carried out. These are conditions over which the local project has no control. To be checked before the project is launched. Resources Conditions Outlined for results in the individual local project Follow-Up Visit Spring to Early Summer 2009 During the follow-up visit at the individual child-care centers, PM follows up on the progress with the work and the individual children. PM contacts the child-care center and arranges the visit—alternatively, the meeting is arranged already at the staff meeting or via regular contact between PM and the child-care center department. In connection with the visit, it is discussed r r r r r r if the pedagogues experience progress in the individual children’s language development how they experience their own effort—what works and what does not work? how they will proceed with their work—should any of the pedagogical methods be adjusted? if PM can refer to other child-care centers that achieve good results with certain approaches what linguistic challenges the pedagogues experience and how these challenges can be approached if there are issues in the newsletter from the administration regarding language stimulation that needs follow-up Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Moreover, during the visit, PM attempts to communicate the same points to the pedagogues as in the staff meeting. PM also has the opportunity to talk with the pedagogues and participate in the child-care center’s daily activities. Other Initiatives On sight, it would be an advantage if the cooperation between PM and the staff in the child-care centers could take place on the staff’s initiative when there is a need for meetings or parents’ evenings. PM should give high priority to such requests, large and small. Moreover, joint meetings can be considered for all child-care centers in the project, in the process, or as a completion, during which the pedagogues have the opportunity to share information about their work with the children and the results from it. Appendix A Ideas for how the project worker may present herself and her function: “Why am I (the project worker) here?” r r r r r r r “It appears that ages 0 to 6 are very important for children’s language skills—and the pedagogues in particular play an important role—they have the possibility to influence the bilingual children’s language—make a difference.” “The language stimulation in the child-care center is important, and you pedagogues play a very important part in improving the language of children with Danish as their second language—the administration will offer the best possible support to the pedagogues.” It is important to note that we are, as always, subject to certain resource limitations—that is how it is—this is not something that the children and youth administration decides—but within these limitations, they have chosen to focus on offering reinforced support to you in connection with the language stimulation of children with Danish as their second language.” “I am not here to tell you what to do—hopefully, I can be a resource for you to draw on in relation to the challenges in the language stimulation. Hopefully, I can be of assistance in relation to the language stimulation task.” “The children and youth administration would like to support you in your work with language stimulation of children with Danish as their second language.” “But this is a task that can seem difficult, and this is why the children and youth administration has decided to include me as a further support in the language work.” “As the children and youth administration has made clear to me, my function is not to come out to tell you what to do.” “What is my (the project worker’s) function and how will you be able to draw on my knowledge?” Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations r r r Joint planning of how language stimulation in the child-care center could take place: “I will visit you in the child-care center. As a starting point, you will tell me about your ideas for the best approach to language stimulation.” Follow-up on the themes in the newsletters: “In each newsletter, a particular language subject will be dealt with, as you know. However, several pedagogues have requested that the administration should, to a greater extent, follow-up on the newsletter and the techniques for language stimulation mentioned in the newsletter. This is an important part of my function. Hopefully, I will be able to help and provide ideas in relation to some of the specific situations.” “During the process, you have the possibility to contact me with the challenges you may have with the language stimulation.” References Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86, 42–51. Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. (1986). Perceived organizational support. Journal of Applied Psychology, 71, 500–507. Wilson, J. Q. (1989). Bureaucracy: What government agencies do and why they do it. New York: Basic Books. INTERVENTION PROGRESS The treatment was initiated in the spring of 2009. The special consultant contacted the child-care centers, gave a brief introduction to the purpose of the initiative, and arranged to visit the centers. The special consultant made it clear that the initiative was optional for the centers. Interviews with both the special consultant and childcare employees indicated that the special consultant and the initiative were generally well received by the employees. The special consultant’s version of the reception is illustrated in the following quote: They [the child care employees] always start out with a healthy skepticism. . . . Out there they have experienced that projects lead to a lot of extra work that does not correspond to the outcome. So they look tired and sit with their arms crossed. . . . But when they have heard what it is about, that it is a custom support that will fit their workday, and that they are not required to fill in forms, etc., they think it is a gift. I have heard that many times, “well, this is a gift,” they say. Interviews with the special consultant and child care employees from the treatment group indicated that the child-care centers used the special consultant in different ways. Some asked for general advice and training, while others asked for assistance and advice in concrete cases. The employees could contact the special consultant to arrange visits or receive advice on the phone. Most often, the special consultant took part in daily work situations when providing the assistance. Thus, much of the visits consisted in providing on-the-floor advice on language development techniques in relation to specific children. For example, one employee Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Table A1. The special language consultant’s visits to treatment centers. No. of visits Hours of visits (effective time in center) Total Mean Std. dev. Min. Max. (N) 105 210.25 2.44 4.89 1.45 3.91 0 0 6 17.75 (43) (43) described the cases in which she used the special consultant (from posttreatment interview) as follows: [W]hen they [the children] cannot express themselves verbally, it gets physical; hitting, slapping, and pulling stuff out of other children’s hands. How can we help this child in the best way to make him or herself understood? . . . What should we focus on? Which sentences does the child need? Also, just getting her [the special consultant] out here to see if there is anything we are missing. She [the special consultant] has been visiting many children in the same situation. . . . That is the way I have used her—very concrete: what can we do for this child, who could he or she be paired with . . . and what material would be relevant to use? Very concrete. In another example, one of the local mangers described how the centers’ employees have used the special consultant for general advice on second language learning: She has been here, and she was actually just available to us, and I know that several [people] have used her for inspiration. Among other things, she has participated in our field trips. The special consultant mostly provided the organizational support by visiting the child-care centers. When she was not visiting child-care centers, she was located at the central administration so that there would be no doubt that the support was provided by the municipal administration. When appropriate, the special consultant expressed appreciation of, and the importance of, the childcare employees’ contribution to the children’s language development during her visits. Table A1 shows descriptive statistics of the special consultant’s visits to the childcare centers in the treatment period. The special consultant made 105 visits and spent 210.25 hours in the 42 treatment centers. Only two centers opted out in the sense that they had no visits. Most centers (76 percent) were visited more than once. Most importantly, however, all centers received the visits they asked for. This means that all centers received the treatment in the sense that they were offered the assistance without being required to accept a minimum or maximum number of visits. The number of visits was decided by the child-care centers. ADDITIONAL RESULTS This section presents additional results referred to in the article, but not shown in tables or figures. Tables A2, A3, and A4 replicate Models I and II in the article’s Table 6. Table A2 includes the share of bilingual children as moderator of the treatment effect. Table A3 includes an additional cluster variable (organizational clusters of child-care centers). Table A4 includes covariates when estimating the treatment effect. Table A5 shows the relationship between local managers’ pretreatment POS, commitment, and stress and the number of visits of their child-care centers. Table A6 shows the relationships between number of visits and POS. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Table A2. Treatment effect on POS contingent on share of bilingual children. Dependent variable Model I Model II task-specific POS, 2008–2010 general POS, 2008–2010 Experimental groups Control (ref.) 0 Organizational support .17 (.38) treatment Hawthorne treatment −.21 (.31) Share of bilingual children in the child care centers Share of bilingual children −.32 (.47) Organizational support −.46 (.75) treatment × Share of bilingual children Control Task-specific POS, 2008 −.34 (.05)** General POS, 2008 Constant 2.72 (.36)** N 195 Number of groups 82 .21 R2 0 −.19 (.36) −.22 (.30) −.35 (.44) −.06 (.73) −.25 (.05)** 1.79 (.27)** 182 84 .13 *p < .05; **p < .01. P-values test the two-sided hypothesis. GLS random effects regressions with child-care centers as grouping variable. Standard errors are presented in parentheses. Table A3. Treatment effect on POS, multilevel model with employees nested within centers within clusters of centers. Dependent variable Experimental groups Control (ref.) Organizational support treatment Hawthorne treatment Control Task-specific POS, 2008 General POS, 2008 Constant N Number of groups Model I Model II task-specific POS, 2008–2010 general POS, 2008–2010 0 −.02 (.27) −.24 (.30) 0 −.22 (.27) −.26 (.30) −.36 (.05)** ** 2.64 (.33) 195 82 −.26 (.05)** 1.71 (.25)** 182 84 *p < .05; **p < .01. P-values test the two-sided hypothesis. Random effects regressions with childcare centers and cluster of child-care centers as grouping variables. Standard errors are presented in parentheses. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Table A4. Treatment effect on POS, including covariates. Dependent variable Experimental groups Control (ref.) Organizational support treatment Hawthorne treatment Control Task-specific POS, 2008 General POS, 2008 Stress (0–10, 10 = highly stressed) Unit language worker (yes = 1, no = 0) Language counselor (yes = 1, no = 0) Gender (female = 1, male = 0) Tenure Manager (yes = 1 , no = 0) Number of sick days during 2007 and 2008 Wage (DKK 1000) adjusted for number of working hours Share of bilingual children in center Budget for language support in center (1,000 DKK) No. of children in center Constant N Number of groups Model I Model II task-specific POS, 2008–2010 general POS, 2008–2010 0 .05 (.30) −.13 (.33) −.35 (.06)** −.08 (.06) .19 (.28) .57 (.34) .67 (.43) .01 (.02) .46 (.37) .001 (.004) −.07 (.06) 0 −.31 (.29) −.34 (.34) −.25 (.06)** .02 (.06) .21 (.29) .65 (.33) −.22 (.44) .02 (.02) .20 (.38) .004 (.004) −.04 (.05) −2.16 (.92)* .006 (.003)* .57 (.95) −.004 (.003) .0001 (.01) 4.17 (1.77)* 183 78 −.007 (.01) 2.77 (1.69)** 167 80 *p < .05, **p < .01. P-values test the two-sided hypothesis. GLS random effects regressions with child-care centers as grouping variable. Standard errors are presented in parentheses. Table A5. Relationship between local managers’ pretreatment condition and number of visits. Model I Local managers’ pretreatment condition General POS, 2008 −.15 (.12) General commitment, 2008 Stress, 2008 Constant 3.10 (.63)** N 23 .06 R2 Model II −.26 (.11)* 3.72 (.63)** 35 .06 Model II .40 (.17)* −.11 (1.08) 35 .17 *p < .05; **p < .01. P-values test the two-sided hypothesis. Bivariate regression coefficients. Standard errors are presented in parentheses. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management Intensifying Social Exchange Relationships in Public Organizations Table A6. Relation between number of visits and task-specific POS. Dependent variable Number of visits Constant N Number of groups R2 Model I Model II task-specific POS, 2008–2010 .06 (.14) .57 (.43) 79 32 .00 Task-specific POS, 2010 .24 (.15)+ 5.78 (.44)** 104 34 .04 *p < .05; **p < .01. P-values test the two-sided hypothesis. Bivariate regression coefficients. Standard errors are presented in parentheses. +p < .10. Journal of Policy Analysis and Management DOI: 10.1002/pam Published on behalf of the Association for Public Policy Analysis and Management
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