CALIFORNIA STATE UNIVERSITY, NORTHRIDGE EFFECTS OF ORGANIZATIONAL STRUCTURE AND LEVEL ON GROUP PERFORMANCE AND SATISFACTION A thesis submitted in partial satisfaction of the requirements for the degree of Master of Arts in Psychology by Lillian Wendel January, 1979 The thesi~ William of Lilli~ndel is approved: B. Knowles JerVf rJshaw ~rbara Tabachnick, Chairperson California State University, Northridge ii Acknowledgements I would like to thank my parents and friends for keeping their faith in me throughout this entire ordeal. A special note of thanks goes to my dog, Roxie, whose love keeps me going. ~ost of all, I thank myself. Throughout innumerable obstacles and set-backs, I managed to reach my goal. Determination and patience do have their rewards. i.ii Table of Contents Page Abstract ix List of Figures vi List of Tables vii Introduction 1 Background 1 Problem 5 23 Hypotheses 26 !Yethod Subjects 26 Tasks 26 Independent variables 26 Dependent variables 29 Experimental design 38 Procedure 38 41 Restll ts Perceived status 41 Decision time 41 Performance quality 46 Satisfaction 46 Perceptions of the formation process 56 Discussion 62 References 71 iv Page Appendix A 76 Appendix B 79 c 81 Appendix D 85 Appendix E 89 Appendix F 95 Appendix v List of Figures Number Title Expected composite satisfaction (or composite perception of the formation process) as a function of organizational structure and level. 24 Organizational chart of (A) Flat organization and (B) Tall organization. 28 3 Composite satisfaction as a function of organizational level. 52 4 Security need satisfaction as a function of organizational level. 55 1 2 .vi List of Tables Number 1 Title summary of studies of job performance-organizational structure relationship Pa~ 9 Summary of studies of job satisfaction-organizational structure relationship 12 Summary of studies of job needsatisfaction-organizational structure relationship 15 summary of the reliabilities of the seven quality dimensions 32 5 Performance measures intercorrelations 33 6 Satisfaction and perception measures intercorrelations 36 summary of means and standard deviations for "Perceived Status" data 42 Summary of the analysis of variance for perceived status as a function of organizational structure and level 43 9 Summary of means and standard deviations for ".Decision Time" data 44 10 Summary of the analysis of variance for decision time as a function of organizational structure 45 summary of means and standard deviations for "Performance Quality" data 47 2 3 4 7 8 11 vii Number 12 13 14 15 Title -Summary of the analysis of variance for performance quality as a function of organizational structQre 48 summary of means and standard deviations for "Composite Need Satisfaction" data 50 Summary of the analysis of variance for composite need satisfaction as a function of organizational structure and level 51 Summary of means and standard deviations for "Security Need Satisfaction" data 53 16 summary of the analysis of variance for security need satisfaction as a function of organizational structure and level 17 summary of means and standard deviations for "Perceptions of the Formation Process - Influence" data 57 Summary of means and standard deviations for "Perceptions of the Formation Process - Fairness" data 58 Summary of the multivariate analysis of variance for perceptions of the formation process as a function of organizational structure and level 59 18 19 20 summary of the univariate analyses of variance and step-down analysis for perceptions of the formation process as a function of organizational structure and level 61 .viii ABSTRACT EFFECTS OF ORGANIZATIONAL STRUCTURE AND LEVEL ON GROUP PERFORMANCE AND SATISFACTION by Lillian Wendel fo!;aster of Arts in Psychology December, 1978 Seventy female subjects were randomly assigned to ten groups, five groups performing under each of two experimental structures: structure. a "tall" or "flat" organizational Subjects were placed in one of two organiza- tional levels within the flat structural condition, "leader" or "workers," or in one of three organizational levels within the tall structural condition, "leader," "supervisors," or "workers." "Supervisor" data were not employed in the analyses so that comparisons could be made between organizational structures and levels. Subjects were required to complete a series of five problem solving tasks. There were four dependent measures. 1) Decision Time was measured in terms of time needed to complete a task. 2) Performance Quality was measured in ix terms of a composite of seven quality characteristics of the written group solutions: action orientation, length, originality, optimism, quality of presentation, issue involvement, and operability. 3) Satisfaction was a compo- site of five need areas as defined by Maslow: self-esteem, growth, social, and security. autonomy, Separate pre- dictions were made for Security and a Composite of the four remaining components of satisfaction. 4) Perceptions of the Formation Process of the final solutions was measured in terms of a composite of each subject's perception of a) the amount of influence her answer had on each final solution as compared to the others in her group, and b) the fairness and impartiality with which each final solution was formed. All dependent variables were measured over trials. Statistical analyses indicated a number of statistically significant effects, as follows. Decision Time varied as a function of organizational structure. Tall structural groups required more time to reach a final solution to each problem than flat structural groups. Com- posite satisfaction was affected by organizational level; leaders reported greater composite satisfaction than did workers. It also varied as a function of an organizational structure by level interaction. Among workers, there was significantly more satisfaction in the flat structural condition. Differences in satisfaction between leaders and X workers was evident only in the tall structural condition, where leaders showed greater need satisfaction. was affected by a level by trials interaction. Security Reported security need satisfaction of leaders was greater than that of workers only in the final trial. The perception measure was affected by organizational level; leaders reported higher perceptions of influence in and fairness of the formation process of the final solutions than did workers. There were no main effects of trials on any of the dependent measures. Based on the results of this study and on previous research, it was concluded that organizational structure is not related to member behavior and attitudes in a systematic manner. Organizational level, however, is positively related to satisfaction. The general finding is that high- er level members report more perceived satisfaction than do lower level members, xi Introduction In one way or another organizations affect all our lives, either directly in our place of employment, or indirectly in terms of goods and services they provide. Or- ganizations are a pervasive force in our society. · The effectiveness with which organizations achieve their objectives determines in part our health, well-being, education, security, and standard of living. It is for these reasons that the study of organizations and their processes has received a great deal of attention from behavioral and social scientists. It is through the study of behavior of individuals and groups in organizations, as well as the organization in its entirety, that these scientists "hope to further their understanding of these complex phenomena so as to enhance organizational effectiveness and the satisfaction of organizational members" (Wexley & Yukl, 1977, p. 1). An organization can be defined as "the patterned relationships among people who are engaged in mutually dependent activities with a specific objective" (Wexley & Yukl, 1977, p. 12), or more simply, "an organization is a group of people who interact to achieve some purpose" (Carroll & Tosi, 1977, p. 3). 1 2 Organizational Configuration All organizations operate within an external environment, and as such can be conceived as "open systems," in that they actively interact with the environment. They receive "inputs'' (resources) from the environment, perform some sort of transformation process on these inputs to produce "outputs" (goods and/or services) to the environment. This cycle is continuous, and involves a complex of mental and physical tasks. The survival and growth of an organization depends on a favorable, efficient ratio of inputs to outputs. Energy expended must not exceed energy received, however, energy received may exceed energy expended (it may be stored for later use). The maintenance of this efficient ratio is thought to depend on an organization's configuration (Wexley & Yukl, 1977). Configuration can be defined as "the pattern of prescribed roles and role relationships, the allocation of activities to separate subunits, the distribution of authority among administrative positions, and the formal communication network'' (Wexley & Yukl, 1977, p. 1_5). An organization is structured with the goal of achieving an efficient division of labor and an effective coordination of member activities. Organizational "configu- ration" is a complex entity, comprised of many dimensions and attributes. In order to differentiate between organ- 3 izational types under investigation, some sort of configurational typology was necessary. Only with such a frame- work is it possible to systematically study the relationship between organizational configuration and organizational effectiveness. It has been suggested (Cummings & Berger, 1976) that the structural arrangement of an organization affects both employee attitudes and behavior, which in turn affects organizational effectiveness. By being able to define the· structural variables and therefore research their effects on employee attitudes and behavior, one could perhaps manipulate the structural dimensions in such a way as to create high performing, satisfying organizations. To accom- plish this, it is necessary to find the degree to which organizational configuration and member attitudes and behavior are related. Organizations are composed of a number of structural dimensions. A partial list of these dimensions are' size of sub-units, size of organization, structure (number of levels, depth of hierarchy, span of control, segmentation of tasks, horizontal and vertical differentiation of roles), distribution of decision making power across levels (concentration of authority; decentralized vs. centralized), standardization (of procedures, roles, and rules; they cover all circumstances and apply to all organizations), and line control of workflow. These dimensions may vary 4 between and within organizations. The effectiveness of an organization's configuration can be influenced by individual characteristics and various miscellaneous factors. fer to suc~factors Individual characteristics re- as individual personality, group com- position and interaction (cohesiveness) of immediate work groups, all of which affect member attitudes and behavior. Other miscellaneous factors may mediate the relationship between organizational configuration and organizational effectiveness. These may be: nature of the tech- nology (scale of the technical complexity), the environment's rate of technological change (stable vs. dynamic), flexibility (changes in structure over time; number, speed, acceleration, and willingness to accept change), dependencies on other organizations, operating site (geography), traditions (customs, history), leadership style, organizational climate, and nature of the task (creative vs. routine). As can be seen, organizations are highly complex entities containing a myriad of elements, and being affected by many diverse factors. Any or all of these elements can determine organizational form at any given point in time. 5 The Problem The present research was limited to the investigation of two organizational configuration dimensions on group beh2vior and attitudes. The relationship between organiza- tional structure (flat vs. tall) and organizational level (leader vs. worker) on employee performance and satisfaction was examined. ~uch of the research concerning organizational struc- ture was sparked by Worthy's (1950) article on the determinants of employee morale in the Sears and Roebuck corporation. The article presented no data, but was based on the author's 12 years of experience in the company. Worthy stated that closer contact between executives and rank and file employees results in a friendlier, easier relationship. The fewer the number of levels (i.e. the flatter the organizational structure) the more meaningful the work becomes, and the easier it is for the employee to see the relation and importance of his or her work to other functions and to the organization as a whole. Flat, decen- tralized structures create potentials for improved attitudes, greater responsibility and initiative among individual employees. This encourages the development of individ- ual self-expression and creativity, factors thought necessary to the personal satisfaction of employees. Worthy 6 stated further that the more supervisory (managerial) levels there are (i.e., the taller the organizational structure) the less able the worker is to see the total process. A worker cannot identify the end product as a result of his or her own skill, so the job loses meaning and bec0mes less significant. The organization is too complex, leading to social disorganization, necessitating more supervisory control. Sharp cleavages develop between different groups in the organization (subgroups are too specialized). This in turn leads to decreased productivity because work is no longer challenging and it is difficult to get the members to cooperate. The main proposition of Worthy's thesis was that a flatter structure is superior to a taller structure in terms of employee satisfaction (morale, attitudes) and performance (productivity). The thesis implies executives (leaders) are relatively immune to the proposed effects of organizational structure as compared to lower level employees (workers) who are more sensitive to these effects. Worthy did study all levels within the Sears and Roebuck corporation, but did not separate them in his analyses. Al- though Worthy did not address his article to effects of organizational level, it is reasonable to expect that level may affect employee satisfaction, regardless of organizational structure. When examing results of research performed within the 7 past 20 years on the relationship between satisfaction and erganizational level, it was generally found that the higher the level the more need fulfillment reported (Cummings & Berger, 1976; Porter & Lawler, 1965), Commu- nication theory relating the degree mf centrality of a position to satisfaction finds a relationship similar to this. The general finding is that the person in the centralized pGsition is better satisfied than those who occupy peripheral positions (Shaw, 1971; Cartwright & Zander, 1968). The centralized position affords more communication channels, facilities (Shaw, 1971), more participation experiences in the group (Cartwright & Zander, 1968), and the most independence of action, or autonomy (Leavitt, 1951). Even though the higher level is not necessarily the more centralized position (i.e., top executives may be relatively isolated from organizational processes), these two theories are in agreement when one assumes the higher the level the more informed, involved, responsible is the person in that level. In order to present findings relating organizational structure to performance and satisfactien in a clear and understandable manner, prior experiments were divided into two areas: field and laboratory. Field re- search tends to suffer from effects of intervening and/or confounding variables. Laboratory studies may also suffer from these effects, and in addition do not represent "real- 8 life" situations. For these reasons their findings are presented separately. Performance-Organizational Structure Studies A summary chart of studies conducted on the organizational structure-performance relationship is presented in Table 1. Few field studies have been conducted examing this relationship. An inverted-U relationship was found between steepness of the organizational structure and productivity of physiologists (Meltzer & Salter, 1960). A tom flat or too tall structure were beth deleterious to productivity. A flat structure was associated with a higher efficiency rating for trade salesmen than was a tall structure (Ivancevich & Donnelly, 1975). However, organizational con- figuration made no difference on two other measures of performance: absentee rate and route coverage index. The few laboratory study results are also inconsistent. Forecasting fluctuating sales orders was the task used in the Carzo (1963) study. The flat structural group ini- tially used less decision time and produced better quality decisions. However, over trials the two structural groups reached similar levels of performance in both decision time and decision quality. In a similar study conducted by Carzo and Yanouzas (1969) no significant differences existed between structural types on decision time. Both structural groups decreased their decision time over trials. Table 1 Summary of studies of Job Performance-Organizational Structure (No. of Levels) Eelationship Study J.V:eltzer & Salter, 1960 Experiment 'Type Field Ivancevich & Field Donnelly, 197 5 Sample Performance IV:easure Direction of Relationship Inverted-U Physiologists Number of research reports Trade salesmen Efficiency rating Negative Absentee rate Zero Route coverage index Zero F I Laboratory Business students Decision time Decision quality Zero zero Carzo & Laboratory Yanouzas, 1969 Business students Decision time Profit Rate of return of sales revenues Zero Positive Positive Jones, 1969 Business students Total accumulated profit Communication time Communication accuracy Negative Carzo, 1963 Laboratory J-shaped Inverted-J 10 The tall structural group was superior on two other performance measures: profit and rate of return of sales reve- nues, with both groups improving over trials. It was sug- gested that the tall structure allowed repeated evaluations of decisions and therefore aided its members in producing higher quality output. A series of unspecified complex business problems were the tasks used by Jones (1969). The flat structural group had a larger total accumulated profit than did the intermediate and tall structural groups. In terms of communi- cation time, the intermediate structural group used the least amount, and the tall structural group used the greatest amount. When examining communication accuracy, the tall structural group had the least amount of errors and the intermediate structural group had the most. In summary, it tentatively appears that structural type does not affect decision time. Decision time is simi- lar between organizational structures and decreases over trials. Organizational structure does, however, affect performance, but in a nonsystematic manner. A reduction in the number of levels in an organization was not shown to be associated with improved performance as Worthy's proposition implies. Mixed results among studies relating performance to organizational structure may have been due to the task type involved, for example, whether problem solving or decision 11 making tasks were used. Problem solving tasks (research oriented) were used by Meltzer and Salter (1960) in the _only field study in this area, whereas decision making tasks were used in all laboratory studies. Jones (1969) used complex business tasks, whereas Carzo (1963) and Carzo and Yanouzas (1969) used tasks involving forecasting fluctuating sales orders. These latter two studies used identical task types, subject type, and experimental setting, but results are still conflicting. Satisfaction-Organizational Structure Studies A summary chart of the studies conducted examining the relationship between organizational structure and satisfaction is presented in Table 2. A negative relation between number of levels in the organization and reported satisfaction regardless of organizational size was found among physiologists (Meltzer & Salter, 1960), teachers (Carpenter, 1963), and trade salesmen (Ivancevich & Donnelly, 1975). However, no sig- nificant differences in satisfaction among differing structures were found among managers (Porter & Lawler, 1964). When controlling for organizational size, dif- ferences did emerge. Organizations were arbitrarily divi- ded into those containing more or less than 5,000 employees. In companies containing less than 5,000 employees, the fewer the levels the more satisfaction perceived by managers. In companies containing over 5,000 employees, Table 2 Summary of Studies of the Job Satisfaction-Organizational Structure (No. of Levels) Relationship Experiment Type study Sample Direction of Rela,tionship I~ ~eltzer Field Physiologists Negative Carpenter, 1963 Field Teachers Negative Porter & Lawler, 1964 Field & Salter, 1960 Porter & Siegel, 1965 Field Managers Organizational Size: under 5,000 empl. over 5,000 " Foreign managers Organizational Size: under 5,000 empl. over 5,000 " Zero Negative Positive Negative Negative Zero Ivancevich & Donnelly, 1975 Field Trade salesmen Negative Carzo, 1963 Laboratory Business students Negative Jones, 1969 Laboratory Business students Negative 13 the more levels the greater the reported satisfaction of managers. This study was replicated using a different _sample of managers (Porter & Siegel, 1965) to test if the hypothesized advantages of flat structures apply universally. Managers from 13 foreign countries were tested. Regardless of organizational size, greater satisfaction was associated with fewer levels, the effect being most pronounced in organizations containing less than 5,000 employees. No differences in satisfaction occurred between structures in organizations containing over 5,000 employees. These latter two studies are in agreement when studying companies containing less than 5,000 employees. A flatter structure was associated with greater reported satisfaction of managers. Their findings are contradictory, however, when examining companies containing over 5,000 employees, and when examining the relationship between number of levels and employee satisfaction regardless of organizational size. It appears that flatter structures do provide more satisfaction than taller structures (Carpenter, 1963; Ivancevich & Donnelly, 1975; Meltzer & Salter, 1960; Porter & Siegel, 1965). Organizational size, however, influenced some of these results (Porter & Lawler, 1964; Porter & Siegel, 1965). Differential satisfaction of different sociopsycholo- 14 gical needs (based on Maslow's hierarchical classification of needs) was said to account for this interaction between -"organizational structure and size on satisfaction. A large organization might satisfy certain needs under one structure and not the other, with the opposite occuring in a small organization. In order to understand which socio- psychological needs are best satisfied under each structural type, organization size must be held constant when making comparisons. Need Satisfaction-Organizational Structure Studies A summary chart of studies conducted on the organizational structure-sociopsychological need satisfaction relationship is presented in Table J. In companies containing over 5,000 people, a tall structure best satisfied the security, self-esteem and social need areas of managers with non-significant differences in terms of satisfaction of the self-actualization and autonomy needs (Porter & Lawler, 1964). A flat struc- ture best satisfied the self-actualization and autonomy needs of trade salesmen with no significant differences between structures in terms of satisfaction of the social or security needs (Ivancevich & Donnelly, 1975). No dif- ferential need satisfaction was found between structures in the Porter and Siegel (1965) study. When restricting findings to organizations containing less than 5,000 employees, the following were found. For Table 3 Summary of Studies of the Job Need-Satisfaction-Organizational Structure (No. of Levels) Relationship Study Experiment Type Sample Organization Size Porter & Lawler, 1964 Field l\~anagers over 5,000 empl. Porter & Siegel, 1965 Field Foreign managers over 5,000 " Ivancevich & Donnelly, 197 5 Field Trade salesmen over 5,000 " Need(s) Best Structure Satisfied Tall Security, self-esteem, social No Difference Flat Self-actualization, autonomy -----------------------------------------------------------------------------------Porter & Lawler, 1964 Field I1Canagers under 5,000 empl. Flat Self-actu.alization, selfesteem Porter & Siegel, 1965 Field Foreign managers under 5,000 .. Flat Self-actu.alization, autonomy, social Carpenter, 1972 Field Teachers under 5,000 " Flat Self-actu.alization, au.tonomy, selfesteem I l: , .. 16 managers, a flat structure best satisfied self-actualization and self-esteem needs, with no difference in satis£action of the security, autonomy or social needs (Porter & Lawler, 1964). A replication of this study found a flat structure best satisfied the self-actualization, autonomy, and social needs, with no differential satisfaction of the security or self-esteem needs (Porter & Siegel, 1965). For teachers (Carpenter, 1972) a flat structure satisfied the autonomy, self-actualization, and self-esteem needs more than did a tall structure, with non-significant differences in terms of satisfaction of the security need. To summarize, when reviewing research performed on companies containing over 5,000 employees, no clear pattern .emerges as to which sociopsychological needs are best satisfied under either structure. On the other hand, when reviewing research conducted on companies containing less than 5,000 employees, some consistent findings appear. It tentatively appears that a flat structure best satisfies the self-actualization need, whereas satisfaction of the security need is not affected by organizational structure. In laboratory studies, a flatter less structured organization was associated with greater satisfaction when studying business students (Carzo, 1963; Jones, 1969). laboratory study examined the effects of organizational structure on sociopsychological need satisfaction. Generally, it appears flatter structures do provide No 17 more overall satisfaction than taller structures. When ex- amining specific need satisfaction, results are mostly inconsistent and therefore inconclusive. Conflicting findings in the relation between structural type and satisfaction may have been due to the interaction among variables in the studies. Organizational size was shown to have an effect on satisfaction as a function of organizational structure (Porter & Lawler, 1964; Porter & Siegel, 1965). When only considering stu- dies using organizations containing less than 5,000 employees, all findings indicate the fewer levels, the more satisfaction (Carpenter, 1972; Jones, 1969; Meltzer & Salter, 1960; Porter & Lawler, 1964; Porter & Siegel, 1965). This supports Worthy's conjecture that employees in flat organizational structures tend to have a higher level of satisfaction than employees in taller structures. This relationship apparently held regardless of type of experiment (laboratory or field), worker type, or task type. Mixed results in the related area of sociopsychological need satisfaction may have been due to the occupational class of the subjects. The Carpenter study ysed teachers as subjects, American managers were tested in Porter and Lawler's study, foreign managers were tested in Porter and Siegel's study, whereas trade salesmen of educational material were the subjects in Ivancevich and Donnelly's 18 study. Perhaps these groups of people have different need strengths, witnessed by the nature of their chosen profession, and by their position within their job. Overall, it appears some of the conflicting findings, except for the Carzo (1963) and Carzo and Yanouzas (1969) studies, may have been due to the specific variables used in the studies, be they organizational size, subject type, task type, or experimental type. In order to obtain a clearer picture of the relationship between organizational structure and employee attitudes and behavior, a more systematic control of mediating variables is necessary. The present research was conducted as such an attempt. In an attempt to avoid using a too restricted subject type, such as all managers, all teachers, all business students, etc., a more heterogeneous subject pool was used. It was composed of students from introductory psychology courses. Undergraduate students may be oriented toward business, research, teaching, etc. As this was a laboratory study the organizational size was necessarily small, seven members per organization were chosen. Problem solving (research oriented) tasks were used as no laboratory study conducted in this area has thus far used this task type. Two measures of performance were recorded on each experimental group. Decision time was measured as the actual amount of time spent discussing, solving, and writing out ,, -~------ ------ --·- ~- 19 the solution to each problem. Output quality was mea- sured by a scale developed by Hackman (1968) which rated solutions on seven dimensions of written solution quality: originality, length, optimism, quality of presentation, issue involvement, action orientation, and operability. These dimensions were developed by Hackman, Jones, and McGrath (1967) and the last by the author. No other study, field or laboratory, has as yet used this performance measure in examining the relation between organizational structure and member performance. Satisfaction was measured by a questionnaire designed to assess satisfaction of five need areas as defined by Maslow: autonomy, growth, social, self-esteem, and se- curity. Perceptions of the formation process of the final solutions were measured by a similarly designed questionnaire. This measure assessed each subject's perception of a) the amount of influence her answer had on each final solution as compared to the others in her group, and b) the fairness and impartiality with which each final solution was formed. No laboratory study in this area has as yet measured specific need satisfaction and no studies in this area have measured perceptions of the formation process of the final solutions. All of the above measures were recorded over trials. In the last trial a measure was taken on each subject's perceived status, ranking in the group. 20 Performance measures have been taken over trials in all laboratory studies reviewed (Carzo, 1963; Carzo & Yanouzas, 1969; Jones, 1969). Satisfaction measures have been re- corded over trials in only one laboratory study (Jones, 1969). This study offered no data, making results diffi- cult to interpret. No clear effect of trials existed, and sociopsychological need satisfaction measures were not taken. The present research was conducted in a laboratory, simulated business setting with members being placed in a new, unfamiliar organizational setting. As such, differen- tial effects of organizational structure were not expected to exist at the onset of the study. Rather, the hypothe- sized effects were expected to appear over time, over trials, after the members had been able to experience the hypothesized influences of the structural arrangements. By this argument, it was hypothesized trials effects should appear in all dependent measures, even though no studies have as yet found a trials effect on the satisfaction measure. Groups under either structure were expected to improve over time on the performance measures, due to practice on the tasks and increased familiarity with the experimental setting. However, the practice effect was not expected to be as strong in the present study as was found in the Carzo and Carzo and Yanouzas studies. These studies used decision making tasks, in which performance on 21 one task partly determines performance on the next task. The present study ysed research oriented tasks (problem solving), in which performance on one task has no systematic relation to performance on the next task. To reiterate, if organizational structure does affect member behavior and attitudes, differences should exist between tall and flat structural groups on measures of performance and satisfaction. Worthy's proposition pre- dicted group performance would be superior under a flat structural condition. been inconsistent. Results in this area, however, have Carzo and Yanouzas (1969) suggested that a tall structure might allow repeated evaluations of a decision as it progresses up the hierarchical levels, thereby producing the higher quality output (performance). This proposition appears more tenable. Although Worthy's article did not address itself to decision time, all studies conducted in this area found no significant differences between structures on this measure (Carzo, 1963; Carzo & Yanouzas, 1969). In terms of satisfaction, the general finding has been that the higher the level, the more need fulfillment reported (Cummings & Berger, 1976; Porter & Lawler, 1965). According to Worthy's proposition, flat structural groups should be more satisfied than tall structural groups. This difference in satisfaction sould be caused mainly by ''worker" satisfaction scores and not by those of the execu- 22 tives. This difference was expected to appear in all areas of need satisfaction except the security need. -~esting Since the situation of the present study was contrived, the security need was expected to be equally satisfied under both structures and not to be affected by trials. 23 Hypotheses From the preceding findings and arguments the following hypotheses were formulated. 1. Decision Time was expected to decrease over trials. 2. The groups performing under the tall structural condition were expected to excel in Performance Quality over those in the flat structural condition. Performance Quality was expected to improve over trials. J. Satisfaction was divided into two areas: Composite need satisfaction (composed of the autonomy, social, selfesteem, and growth needs) and Security need satisfaction. In terms of Composite satisfaction, the flat structural groups were expected to report more satisfaction than the tall structural groups, and leaders were expected to report more satisfaction than workers. These effects were expect- ed to differ as a function of trials. An organizational structure by level by trials interaction was predicted to affect satisfaction (see Figure 1). Within the tall structural condition leaders were expected to report more satisfaction than workers; within the flat structural condition leaders and workers were expected to report similar satisfaction; among workers, those in the flat structural condition were expected to report more satisfaction than those in the tall structural condition; among leaders, reported satisfaction was expected to be similar. These ef- 24 o-- - --~ workers leaders Flat Tall less l more _ _ _I _ __ 1 3 trials 5 1 3 trials 5 Figure 1. Expected composite satisfaction (or composite perceptions of the formation process) as a function of organizational structure and level. 25 fects were expected to differ as a function o~ trials. No such relationships were predicted for Security need satisfaction, but this need was included for completeness. 4. In terms of Perceptions of the Formation Process of the final solutions, the flat structural groups were expected to report more perceived fairness of and influence in the formation process than the tall structural groups. Also, leaders were expected to report greater perceptions of fairness and influence than the workers. These effects were expected to vary as a function of trials. An organi- zational structure by level by trials interaction was predicted to affect these perceptions (see Figure 1). Within the tall structural condition leaders were expected to report higher perceptions than workers; within the flat structural condition leaders and workers were expected to report similar perceptions; among workers, those in the flat structural condition were expected to report higher perceptions than those in the tall structural condition; among leaders, reported perceptions were expected to be similar. These effects were expected to differ as a func- tion of trials. ». ~----·-------- f/ethod Subjects Seventy female undergraduates from introductory psychology courses at California State University, Northridge were randomly assigned to either of the two experimental structures. The subjects were randomly placed into ten groups of seven people, five groups performing under each structural condition. Tasks Hackman and Vidmar (1970) developed 10 problem solving tasks, ranging in level of difficulty. The five easiest of these problem solving tasks were pilot tested for use in the present study. Pilot testing results revealed that only three of these problems could be solved within the time limitations of this study. The author then developed, pilot tested, and incorporated into the study two additional problems. These tasks are presented in Appendix A. Tasks B,C, and E were developed by Hackman and Vidmar, tasks A and D were developed by the author. These tasks were presented to the groups under each structural condition in a Latin square design, one problem per trial. Independent Variables The independent variables were organizational struc- 26 - --- ---- ----- - - -- ---- >'• - 27 ture, organizational level, and trials. Organizational Structure - Structure of the organization was either "flat" or "tall" (see Figure 2) as defined by the formula developed by Sadler and Barry (1967). The steepness of the organization is reflected by the sum of the number of relationships between individuals at the same level and reporting to the same superior. This steepness is expressed as a percentage (or ratio), C, of the total possible number of peer relationships, where: rn c= r = the (N-1) (N-2) sum of the number of relationships (r) be- tween individuals (n) who are at the same level in the hierarchy and report to the same superior. N = the total number of individuals in the structure. (N-1)(N-2) =the total possible number of relationships in the structure. This ratio, C, indicates the structural steepness regardless of company size. steeper the structure. The smaller the ratio, the In this study, for the tall struc- ture C = 0.20, while for the flat structure C = 1.00. For computations see Appendix B. Organizational Level - Levels within the organizations were "leader" and "worker" in the flat structure, and "leader," "supervisor," and "worker" in the :t;q.ll structure. "Supervisor" data were not used so that comparisons ----------------- - - ~--------------------- 28 Leader (A) worker l worker \ worker worker Leader supervisor! (B) Isupervisor j Figure 2. Organizational chart of (A) Flat Structure and (B) Tall Structure. 29 could be made between structures and levels. ·Subjects were randomly placed into these levels. Group means were the unit of measurement for "workers." Trials - Each group performed five problems, each problem corresponding to a trial. Dependent Variables The dependent variables were decision time, quality of the written group solutions, satisfaction as measured by a need satisfaction questionnaire, and perceptions of the formation process of the final solutions. Decision Time - This was the amount of time actually spent working on the solution to each problem. It in- cluded group discussion time and time given to each leader to write out the final solution to each task. It did not include time spent traveling to and from different meeting locations or time spent on answering questionnaires. De- cision time was measured for each trial separately. Performance Qualit~- The quality of the written solu- tions was measured along six descriptive dimensions developed by Hackman, Jones, and rf:cGrath (196?), dimensions a through f, and one developed by the author, dimension g, for a total of seven dimensions. Each dimension is com- posed of three defining scales. A complete list of des- criptive characteristics of the twenty-one defining scales is given in Appendix C. The dimensions used were: JC (a) Action orientation - the degree to which .a solution states or implies that a specific or general course of action should be, might be, or will be followed. (b) Length - the number of words used. (c) Originality - the degree to which a solution is fresh and unusual (not necessarily good or creative) as opposed to obvious and mundane. (d) Optimism - the degree to which the general point of view or tone of a solution can be characterized as positive or optimistic as opposed to negative or pessimistic. (e) Quality of presentation - evaluation of the grammatical, rhetorical, and literary quality of a solution. (f) Issue involvement - the degree to which a solution takes or implies a particular point of view regarding some goal, event, issue, or procedure. (g) Operability - the degree to which a solution lends itself to implementation and goal attainment •. The procedure for performing a rating on a scale was as follows and was repeated for each of the three scales within a dimension: Judges assigned each solution one numeric score per defining scale, scores being based on how well the solution met the defining scale's criteria. Scores could range from "7" (very true), to "1" (very false). Thus, for the scale titled "unusual," if the judge deemed the solution to be .31 quite out of the ordinary, he would have assigned a score of "7" to that defining scale, whereas if the solution was thought to be not at all unusual then it would have been categorized as "very false" and given a score of ~1". Two judges were used, both having M.A. degrees in Psychology. The judges were extensively trained using pilot testing results. A score for the dimension was computed by averaging ratings for the three defining scales across the two judges. Median inter-rater reliability was com- puted to be .68, and median intra-rater reliabilities were .87 and .79 (see Table 4). Performance quality was measured for each solution (trial) separately. A correlational analysis performed on these performance quality measures indicated they are highly intercorrelated (see Table 5). For this reason the seven mea- sures were collasped into one and a univariate, rather than a multivariate, analysis was performed on the data. A multivariate analysis is presented in Appendix F for comparison purposes. This table also indicates that the two performance measures (decision time and performance quality) are not significantly intercorrelated. Therefore these two areas were tested separately. Satisfaction - Each individual satisfaction score was based on the difference between each subject's perception of how much of a certain characteristic was present on the Table 4 Summary of the reliabilities of the seven quality dimensions. Dimension Judge 1 Judge 2 Interrater Action orientation .83 .85 .48 Length .93 .91 .80 Originality .87 .?9 .?0 Optimism .84 .?8 .62 Quality of presentation .?9 .?5 .68 Issue involvement .98 .8? .8? Operability .88 .60 .56 Table 5 Performance measures intercorrelations (N = 50) Performance Qual~t~es Dec~s~on T~me Action Quality Issue Origiof pres- involve- Operaorientat ion Length nality Optimism entation ment bility Time -- I ~ I Action orientation Length 0.76** Originality 0.76** 0.76** Optimism 0.40** 0.46** 0.)4* Quality of presentation 0.18 0.35* 0.)6** 0.35* Issue Involvement 0.67** 0.80** 0.69** 0.40** 0.48** Operability 0.66* 0.70** 0.68** 0.32* 0.37** Time 0.24 0.04 0.24 ' -0.21 -0.11 0.8)** 0.03 0.13 *P < .05 **p < .01 Note; Probability levels d0 not reflect adjustment for inflated probability of Type I error with multiple testing. ~ 34 job and how much she would have liked to have ,of this characteristic. Each characteristic related to aspects of the self-esteem, growth, social, autonomy, or security need. The "is now" perception is determined mostly be actual job conditions, while the "would like" percpetion is determined by subject characteristics (needs, values, personality traits). Measures were ratings on a ?-point Likert scale ranging from "none at all" (score of 1) to "very much" (score of ?). A score for each need satisfaction question was the "would like" rating minus the ''is now" rating. Therefore, the smaller this number, the higher the perceived satisfaction of that quality, or the less the perceived dissatisfaction of that quality. A score for each need was computed by averaging the discrepancy scores for the questions relating to that need. A group satisfaction score by organizational level on each of these measures was computed by averaging across subjects in that particular level. In the present study, a "would like" (ideal, desired outcome), not "should be" (equitable outcome) scale was used. This was because a person might not feel a job is the right one for them, it does not satisfy all their needs, but still belie~e the job provides fair (equitable) out- comes for the inputs required (Wanous & Lawler, 1972). These researchers reported that of the two measures, 3.5 ''would like" correlated most highly with a direct measure of satisfaction. A copy of the satisfaction questionnaire is presented in Appendix D. Need satisfaction measures were taken after the first, third and fifth trials. The needs measured in the questionnaire were as follows: (a) Self-esteem- the feeling of recognition and respect, feeling of doing a job well, feeling of self-fulfillment, and feeling of achievement. (b) Growth - the opportunity for feedback on performance, the chance to do a whole piece of work, variety on the job, the feeling of accomplishment. (c) Autonomy - lack of close supervision, opportunity for independent and unrestricted thought and action, freedom, opportunity for participation and involvement, respect and fair treatment, authority. (d) Social - the opportunity to develop social relationships, to feel a sense of belongingness. (e) Security- the feeling of stability. A correlational analysis performed on these need satis- faction measures indicated significant intercorrelations (see Table 6). Therefore, measures were collapsed into one over all satisfaction needs except security as separate predictions were made on this need. A multivariate analy- sis is presented in Appendix F for comparison purposes. Table 6 satisfaction and perception measures intercorrelations (N Perceptions of the formation process Five need areas of satisfaction Self-esteem Security Growth Autonomy = 60) Social Influence Fairness Security Self-esteem 0 • .50** Growth 0.49** 0.75** Autonomy 0.23 0.33* 0.21 Social 0.45** 0.47** 0.34** i 0.26* Influence -0.26* -0.21 -0.12 -0.24 -0.18 Fairness -0.21 -0.32* -0.23 -0. 34** -0.17 0.32* *P < .0.5 **p<.Ol Note: Probability levels do not reflect adjustment for inflated probability of Type I error with multiple testing. ~ 3'7 Perceptions of the Formation Process - Perceptions of this area were measured by asking each individual to indicate on a ?-point Likert scale the amount of influence she felt her answer had on the final solution as compared to the others in the group, ranging from "more" (score of 7) to "less" (score of 1), and the amount she "disagrees'' or "agrees" that the final solution was formed out of a fair and impartial consideration of everyone's answers, scores ranging from 1 to 7 respectively. Therefore, the larger the score the higher the perceived fairness of the formation process and influence on the final solution. These perception measures are questions #27 and #28 on the satisfaction questionnaire presented in Appendix D. A score for group perception of the formation process was formed by averaging scores across individuals within a particular level in the organization. This measure was taken after the first, third and fifth trials, As the two perception measures were found to be significantly but not highly intercorrelated (see Table 6), a multivariate analysis of variance was performed on the data. This table also indicates that need satisfaction and perception measures are not significantly intercorrelated. Therefore these two areas were tested separately. Manipulation Check A measure assessing each subject's perceived status in the group was taken after the last trial. This measure 38 consisted of a ?-point Likert scale upon which the subject was asked to rate her perceived amount of status in the group as compared to the others in the group. The scale ranged from "less" (score of 1) to "more" (score of 7), and is shown in Appendix D as the last question on the satisfaction questionnaire. Experimental Design The experimental design for the performance data was a two-factor mixed design (organizational structure by trials). For the satisfaction and perception data it was a three-factor mixed design (organizational structure by organizational level by trials). Group means were the unit of measurement for "workers." Procedures Subjects participated in either one of the two experimental structures: tall or flat organizational structure. In each structure, when all subjects were present and seated, detailed instructions were handed out and read aloud to the group by the experimenter. The two sets of in- structions are contained in Appendix E. All subjects were randomly placed in the organizational levels within that organization's structure (see Figure 2). Titled badges were placed face down on a table. were instructed to choose one of the badges. Subjects The title on the badge determined their positional level within the organization. All subjects wore the badge depicting their 39 respective title. To instill awareness of positional dis- tance and authority relations, a graphic representation of the organizational structure in which the subjects were working under (an organizational chart) was prominently displayed in the room. Everyone was then handed paper and a task description (the problem) and the experiment began. In the flat structure, everyone was able to communicate with everyone else. In the tall structure, however, com- munications went through a set chain of command. To im- plement this communication restriction, when discussions occurred, those involved were physically separated and placed into the proper meeting group. This separation simulated the hierarchical nature of a tall organizational structure. In both instances the final decision came from the group's designated leader. Communications could have been either oral or written, but the final solution had to be written. The experimenter was not present during any discussions, thus allowing freedom of response while the groups performed. Time warnings were given half-way through each part of each trial. The final written solu- tion to each trial was collected at the end of that trial. Both structures had a total of twenty minutes per trial (probl~m). The' first five minutes were used to write in- dividual solutions. The next ten minutes were used dif- ferently depending on the structure involved. 40 For the flat structure these ten minutes were given for everyone to come to a single final solution to the problem. For the tall structure five minutes were given for the workers and respective supervisor to meet and form a single solution. The next five minutes were for the supervisors to meet with the leader and form a single solution. For both structures, the final five minutes were used by the leader to write out the final form of the solution before presenting it verbally to the group. subjects were told they could use less than the alloted time, but could not use more than that time in any part of the experiment. Under both structural conditions, upon completion of each problem, the next task description and new paper were handed to the groups and they were instructed to begin work. In trials one, three and five, however, upon com- pletion of the problem the group was given a satisfaction questionnaire to complete before proceeding on to the next task. The participants were given four minutes to complete this questionnaire. No communications were allowed to ensure privacy of responses. The satisfaction question- naire was administered in every other trial so as to cut down on adverse psychological affects associated with work interruption and to cut down on carry-over effects due to remembrance of previous responses. At the end of the fifth trial the subjects were debriefed and dismissed. Results Perceived Status Group means and standard deviations for perceived status for each level within each organizational structure are presented in Table 7. A 2-way analysis of variance was performe'd on these data, summarized in Table 8. effect of level. Results indicate only a main Leaders (mean status on a scale of 1 to 7 = 6.3) perceived themselves as being of a higher level ranking than did workers (mean status = 3.7). This indi- cates that levels were effectively manipulated. Decision Time A separate measure of decision time was computed for each group. No scores were recorded on individual members of the groups. Group means and standard deviations for each trial within each organizational structure are presented in Table 9. A 2-factor mixed design analysis of variance was performed on these data, summarized in Table 10. indicates a main effect of structure. This analysis Those groups per- forming under the flat structure used significantly less time (mean = 12~02 minutes) to arrive at a final solution than did those working under the tall structure (mean 14.01 minutes). Neithe~ = a trials effect nor a trials by 41 Table 7 summary of means and standard deviations for "Perceived Status" data Structure Workers Flat Tall Level Mean S.D. Mean S.D. 3.58 0.55 3.86 0.51 ', Leaders 6.20 0.84 6.40 0.55 ~ 43 Table 8 Summary of the analysis of variance for perceived status as a function of organizational structure and level. Source df ss MS Structure 1 .29 .29 Level 1 33.28 :n. 28 Structure X Level 1 .01 .01 16 6.24 .39 Error F 0.74 85 .34* 0.02 ---------------------------------------------------Total *P <I 05 19 Table 9 ' summary of means and standard deviations for "Decision Time" data Structure 1 2 3 Flat Tall Trial . Mean S.D. .Mean S.D. 13.32 2.38 15.60 3.89 13.36 3.48 7.88 2.22 13.16 3.66 13.04 2.51 -· 4 15.36 2.86 12.06 2.41 5 14.86 3.69 11.50 4.42 ' Table 10 Summary of the analysis of variance for decision time as a function of organizational structure. Source df Total 49 ss MS Between Groups 9 Structure 1 49.80 49.80 Errorb 8 62.96 7o87 Within Groups 6.33* 40 Trials 4 83.42 20.85 1.88 Trials X Structure 4 93-76 23.44 2.11 32 355.66 11.11 Errorw *P < E .05 46 structure interaction were found. Neither structural group showed a learning trend over trials. Performance Quality Measures of performance quality were based on each group as a whole. No individual scores were recorded. Group means and standard deviations for each trial within each organizational structure on the composite quality dimension are presented in Table 11. A 2-factor mixed design analysis of variance performed on these data, summarized in Table 12, indicates no statistically significant differences on this criterion. Per- formance quality was similar over trials and between structures. Satisfaction Group means, not individual responses, were used as the ''workers" satisfaction score per group. The number of wor- ker scores comprising each mean was different for the two structural conditions, in that the tall structure contained four workers whereas the flat structure contained six. For "leaders" satisfaction score per group, each individual leader's response served as the score per group since there was only one leader in each group. As discrepancy scores were used, the smaller the score the more satisfaction perceived. Composite satisfaction -Means and standard deviations for workers and leaders over trials within each organiza- Table 11 summary of means and standard deviations for "Performance Quality" data Trial ! 3 4 5 4.24 4.24 3.90 lJ-.40 0.37 1.03 0.27 0.67 1 2 ~~'ean 4.03 S.D. 0.87 Structure Tall - ··-"--. -~-· _._ Mean 4.53 4.60 4.62 4.59 4 ·53 S.D. 0.50 0.93 0.64 0. 53 1.05 Flat 48 Table 12 Summary of the analysis of variance for performance quality as a function of organizational structure. Source df ss Total 49 24,36 Between Groups 9 12.11 Structure 1 2.09 2.09 Errorb 8 10.02 1.25 40 12.25 Trials 4 0.40 0.10 0.28 Trials X Structure 4 0.42 0.10 0.31 32 11.43 0.36 0.29 Within Groups Errorw MS F 1.67 49 tional structure are presented in Table 13. A 3-factor mixed design analysis of variance was performed on these data. The analysis, as summarized in Table 14, indicates two statistically significant effects: a main effect of level and an organizational structure by level interaction. Leaders (mean discrepancy satisfaction score= 0.93) reported greater satisfaction than did workers (mean 1.57). = A significant organizational structure by level interaction is also present as illustrated in Figure 3. Tukey's (a) test for unconfounded means was performed on the interaction data. Results indicate that workers, but not leaders, were affected by structure. Among workers, there was significantly more satisfaction in the flat structure. Further, differences in satisfaction between leaders and workers was evident only in the tall structure, where leaders showed greater need satisfaction. were no effects of trials. There satisfaction remained similar over time. Security need - r.~eans and standard deviations for wor- kers and leaders over trials within each organizational structure are presented in Table 15. A 3-factor mixed de- sign analysis of variance performed on these data, summarized in Table 16, indicate only one statistically significant effect, a level by trials interaction shown in Figure 4. Tukey's (a) test for unconfounded means was per- formed on the interaction data. Results indicate that lea- Table 13 summary of means and standard deviations for "Composite Need Satisfaction" data Structure Tall Flat 1 Trials 3 5 1 Trials 3 5 Mean 1.76 2.23 2.10 1.18 0.99 1.14 S.D. 0.71 0.51 0.87 0.35 0.38 0.40 Mean 0.86 0.69 0.62 1.13 1.29 1.00 S.D. 0.58 0.44 0.51 0.63 0.99 0.75 Level Workers Leaders I \.J'\ 0 51 Table 14 Summary of the analysis of variance for composite need satisfaction as a function of organizational structure and level. ss source df Total 59 33.79 Between Groups 19 28.20 Structure 1 Level Structure X Level IV:S F 0.97 0.97 1.07 1 6.04 6.04 6.69* 1 6.75 6.75 7.48* 16 14.44 0.90 40 5·59 Trials 2 0.08 0.04 0.29 Trials X Structure 2 0.07 0.04 0.25 Trials X Level 2 0.28 0.14 1.01 Trials X Structure X Level 2 0.61 0.31 2.17 32 4.55 0.14 Errorb Within Groups Errorw *p <. 05 52 workers 2.0 Q) ~ 0 0 1.5 rn >, 0 c CIS 0.. 1.0 ,/ ,/ Q) / ~ .,. 0 rn / II"' •rl "d o. .s leaders 0 tall flat structure Figure J. Composite need satisfaction as a function of organizational level. Table 15 Summary of means and standard deviations for "Security Need Satisfaction" data Structure Level 1 Tall Trial 3 5 1 Flat Trial 3 5 Mean Workers 1.86 2.76 2.02 0.60 1.48 0.76 S.D. 1.49 0.72 1.54 0.95 0.62 0.78 Mean 1.40 0.40 o.6o 1.40 0.60 -0.40 1.67 0.89 0.89 1.52 0.89 0.89 Leaders S.D. Table 16 Summary of the analysis of variance for security need satisfaction as a function of organizational structure and level. Source df ss Total 59 95.19 19 62.10 Structure 1 10.84 10.84 4.38 Level 1 6.6 6.6 2.67 Structure X Level 1 5.1 5.1 2.06 16 39.56 2.47 40 33.09 Trials 2 3·37 1.68 2.5 Trials X Structure 2 .65 .32 0.48 Trials X Level 2 5.65 2.82 4 .19* Trials X Structure X Level 2 1.87 .93 1.38 32 21.55 .67 Between Groups Errorb Within Groups Error *P <. 05 w fl~S F 55 1.5 workers ,. \ Q) \ 1.0 \ $of 0 0 \ [f) \ \ 0.5 0 1 3 trials 5 Figure 4. Security need satisfaction as a function of organizational level. ders reported greater satisfaction of the sectlrity need than workers, but only in the final trial. No other com- parisons were significant. Perceptions of the Formation Process Means and standard deviations on workers and leaders over trials within each organizational structure on the influence component are presented in Table 17, while those of the fairness component are presented in Table 18. As was discussed in the satisfaction section, group means were used as the "workers" perception score per group while individual leader's responses served as the "leaders" perception score per group. The larger the score, the great- er the perceived satisfaction with the formation process. A multivariate analysis of variance was performed on the perception composite data. Results, as summarized in Table 19, indicate that a statistically significant difference existed between levels. Perceptions of influence on and fairness of the final solutions of the leaders were significantly greater than those of the workers. means vector: 5.39. 5.20, 6.6?; workers' means vector: Leaders' 4.00, The larger the number the higher the perceptions. There was no main effect of trials. this area remained constant over time. main effect of structure. Perceptions in Nor was there a Further, none of the interac- tions produced a statistically significant effect on perceptions of the formation process. Table 17 summary of means and standard deviations for "Perceptions of the Formation Process - Influence" data Structure Level 1 Tall Trials 3 .5 1 Flat Trials 3 .5 Mean Workers 3.80 3.96 4.18 3.64 4.06 4.38 S.D. 0.35 0.46 0.95 0.52 0.67 1.08 Mean s.oo 5.40 5.80 5.20 4.60 5.20 0.84 1. 79 1.34 1.30 .. Leaders S.D. 1.00 1.14 Table 18 Summary of means and standard deviations for "Perceptions of the Formation Process - Fairness" data Structure Level 1 Tall Trials 3 5 1 Flat Trials 3 . 5 5.58 5.08 4.98 5.98 5.76 4.96 S.D. 1.12 1.17 1.01 0.88 0.51 1.35 Mean 7.00 6.00 6.60 6.80 6.80 6.80 1.01 1.73 0.89 0.45 0.45 0.45 Mean ~Norkers Leaders S.D. ' 59 Table 19 Summary of the multivariate analysis of variance for perceptions of the formation process as a function of organizational structure and level. u-statistic Source df F df Between Groups structure 0.921 2, 1, 16 0.6.5 2 Level 0.4.53 2, 1, 16 9.0?* 2 Structure X Level 0.982 2, 1, 16 0.14 2 1.5 Errorb Within Groups Trials 0.?34 2, 2, .32 2 . .59 4 Trials X Structure 0.908 2, 2, 32 0.?? 4 Trials X Level 0.881 2, 2, 32 1.01 4 Trials X Structure X Level 0.898 2, 2, 32 0.86 4 Error *P <. 0.5 w 62 60 Due to the significant intercorrelation between these two measures (see Table 6), a step-down analysis was chosen over two individual univariate analysis of variance tests to discover which of these two measures caused this difference (Bock & Haggard, 1968). Univariate analysis of variance results are presented along with step-down analysis results in Table 20 for comparison purposes. In step- down analysis the experimenter decides the order the variables enter the analysis. As perceived influence on the final solutions was thought to be the most important component it entered the analysis first. As can be seen in Table 20, a significant difference existed between levels only on the "influence" measure. Leaders perceived their answers had significantly more influence on the final answers (mean = 5.20 on a scale of 1 to 7) than did workers (mean = 4.00). Once the effect of "influence" had been partialled out, no significant additional effect of "fairness" was found. Table 20 Summary of the univariate analyses of variance and step-down analysis for perceptions of the formation process as a function of organizational · structure and level. Dependent Variable Factor Univ. F df Priority Influence s 0.19 1,16 1 1 8.90 S1 Fairness df Crit. F 0.19 1,16 6.12 .025 1,16 8.90* 1,16 0.31 1,16 0.31 s 0.86 1,16 6.20 .025 1 14.58 0.02 S1 *P <. 05 step-down F 2 0.41 1,15 1,16 2.27 1,15 1,16 0.25 1,15 o<. Discussion The goal of the present experiment was to investigate some of the areas in which structure might exert influence on organizations. Hypotheses were based mainly on Worthy's proposition that a flatter, less structured organization leads to higher morale. Results of the present study in- dicate organizational structure apparently exerted no influence on group performance quality, but did affect decision time, and an interaction with organizational level affected a composite measure of need satisfaction. Organizational level, however, exerted a great influence on the satisfaction and perception measures. Organi- zational level affected the composite measure of need satisfaction singularly and in interaction with organizational structure, when in interaction with trials affected satisfaction of a need for security, and affected the composite measure of perceptions of the formation process. Failure to support the majority of the hypotheses formulated in this experiment may have been caused by methodological flaws. be tenable. As such, Worthy's conjecture might still A re-examination of the hypotheses presented and possible causes for lack of experimental support follows. 62 63 Decision Time - Groups under either struct'ure were expected improve (lessen their decision time) over trials. This prediction was not supported. The absence of a trials effect might be attributable to the task type involved. As stated earlier, in research oriented tasks per- formance on one task is not systematically related to performance on the next task. Therefore, it may have been unrealistic to expect practice effects. Another finding was that tall structural groups required more decision time than did flat structural groups. This might have been attributable to the fact that in the tall condition there were two meetings per trial, as compared to one such meeting in the flat condition. In each such meeting each member had to re-state her solution to the other members in the meeting, thus causing tall structural groups to use more time per trial, Perhaps multiple presentationn of ideas is an inherent process of tall hierarchical organizations, as such the finding of the present study may be generalizable. Decision time may be a function not only of organizational structure, but of the task type involved. reason others might not have found this result. For this A possi- ble explanation for the absence of a structure effect on decision time when using decision making tasks was offered by Carzo and Yanouzas (1969). Whereas a tall structure re- quires more time to process decisions through the levels, 64 a flat structure requires more time to resolv~ conflicts and coordinate efforts, therefore causing no difference in decision time. Perhaps the problem solving tasks used in the present study involved a different form of analysis (thinking), and/or were much simpler, so that very little debate was necessary. This lessened the decision time of flat structural groups, while tall structural groups still had to process decisions through the levels, thus causing the significant difference in decision time between the two structures. Performance Quality - None of the predicted hypotheses were supported. Performance quality was similar between organizational structures and over time. No statistical effects existed anywhere on this measure. It was assumed that repeated presentations of a solution (as occurs in the tall structural condition) leads to increased performance quality, therefore performance of tall structural groups should have excelled over that of the flat structural groups. The trend of the sample data reflected this train of thought, but results did not approach statistical significance. A significant difference might have occurred if the performance measures themselves were more reliable, and if the tall structural groups were given more time, to work on their solutions. Occasionally, in the tall structural condition, meetings were forced to end before the subjects had completed their discussion. 65 The time limit could have caused these subjects to work under a "forced" work pace which caused their performance to suffer. It should also be noted that the relationship between performance quality and organizational structure appears to depend on one's choice of performance measure. Jones (1969) found each structure to be superior to the others depending on what measure of performance was examined. An intermediate structure was associated with fewer number of errors, a tall structure with less communication time, and a flat structure with the largest accumulated profit. Carzo (1963) found no difference between structures on performance measures, whereas Carzo and Yanouzas (1969) found a tall structure to be superior to a flat structure in terms of profit and rate of return of sales revenues. As stated in the discussion of decision time, above, the task type involved (research oriented) may have been responsible for the absence of a trials effect. satisfaction - In terms of the composite measure of need satisfaction, predictions were partially supported. There were no trials effects, even though it was hypothesized that organizational structure would have no effects until subjects had spent time performing under it. It appears that subjects immediately assumed a role they thought consonant with the situation. This "role playing" may have been responsible for reported satisfaction re- 66 maining relatively constant over trials. Leaders were expected to report more satisfaction than workers regardless of organizational structure, with the effect increasing as a function of trials. was partially supported. This hypothesis There was no trials effect, but there was a·main effect of level in the predicted direction. This result is consonant with the general finding that satisfaction increases with job level (Cummings & Berger, 1976; Porter & Lawler, 1965). Organizational structure did not affect satisfaction, contrary to what was hypothesized. This might have been due to a too weak manipulation of the tall structural condition. In the tall condition, all members sat together during the initial five minutes of each problem solving task, and again when the leader read each final solution to the group. In "real life" hierarchical organizations there may not be, and probably is not, this much contact between the positional levels. This relatively large a- mount of contact may have canceled out the deleterious effects attributed to hierarchical structures, thus accounting for the lack of significant differences in reported satisfaction between structures. An organizational structure by level by trials inter- action was also hypothesized. It was predicted that over trials a) within the tall structural condition, leaders were expected to report more satisfaction than workers, 67 b) within the flat structural condition, leaders and workers were expected to report similar satisfaction, c) among workers, those in the flat structural condition were expected to report more satisfaction than those in the tall structural condition, and d) among leaders, reported satisfaction was expected to be similar. A statistically significant organizational structure by level interaction was found. Ignoring the predicted trials effect, all interaction hypotheses were supported. This finding lends some support to Worthy's proposition that the closer the contact between executives and rank and file employees, as in the flatter structure, the higher the morale, or satisfaction. This difference in satisfaction was attributable to workers' satisfaction scores, as leaders' satisfaction scores did not differ significantly. Even though a flat structure was not associated with greater satisfaction than a tall structure as Worthy predicted, workers in the tall structural condition were significantly less satisfied than workers in the flat structural condition. This finding lends support to another part of Worthy's theory. No differences were expected on the security need measure. However, a significant organizational level by trials interaction was found. In the final trial, reported security need satisfaction differed significantly between workers and leaders. This effect may be attributable to / 68 subject "role playing." Perhaps, as the experiment pro- gressed, group members increasingly experienced the differential aspects (privileges, responsibilities, etc.) of the group levels. As the manipulation check (taken at the end of the final trial) indicated, leaders did perceive themselves as having a significantly higher status ranking than the workers. This "status" may have been construed by the leaders as equaling power over the other group members. From this argument it follows that the leaders would perceive their position as being the more secure one since their position held control over the others. Perceptions of the Formation Process - Even though trials effects were predicted, none were evident. Again, subject "role playing" may have been responsible for perceptions remaining stable over trials. Organizational structure was not found to affect these perceptions. A too weak manipulation of the tall structural condition, as was discussed in the composite satisfaction section, .may have been responsible. Another prediction was that over trials, leaders! composite perception of the formation process of the final solutions would be greater than that of the workers. This hypothesis was partially supported. Results were in the predicted direction but without a trials effect. Since leaders have the final say in forming the fi- nal solutions, it is natural that they would report higher perceptions of fairness of and influence in the formation process. An organizational structure by level by trials interaction was not found even though one was predicted, It appears these perceptions are affected solely by organizational level. Workers reported less satisfaction with the formation process than did leaders. Neither or- ganizational structure nor trials nor any interactions had a significant effect on this relationship. Perhaps it does not matter how far away from the solution's final stage one is, but rather it only matters that one is or is not involved in this stage. A stronger organizational struc- ture manipulation is needed to test this theory. In summary, results indicate that organizational structure affected only one aspect of performance: sion time. deci- Composite satisfaction was affected by level and by an organizational structure by level interaction. Satisfaction of the security need was affected by an organizational level by trials interaction. Composite per- ception of the formation process was affected by positional level only. Based on the results of the present study, the following situation might occur. There are two research firms, Co. T has a tall hierarchical structure; Co. F has a flat structure. Co. T would require more time to finish a project than would Co. F. two compani~s The finished products of the would be similar in quality. In both com- panies executives would increasingly feel more secure in \ 70 their job position than would rank and file employees. Executives would be more satisfied than lower level employees in Co. T only, as exec~tives ployees in Co, F would be eq~ally and lower level em- satisfied. Co. F wor- kers would be more satisfied than workers in Co. T, while executives in either company would be equally satisfied. Executives in both companies would be more satisfied with the formation process of company decisions than would lower level employees. The·main thrust of the present experiment was to investigate the effects of organizational structure on both employee behavior and attitudes. As such, few hypotheses were supported, with results being generally contrary to previous findings. As was previously discussed, organizational effectiveness is influenced by a myriad of factors, far too many to be adequately researched in any one study. It is impossi- ble to systematically control and research all factors relating to organizational effectiveness. Therefore any or- ganizational experiment conducted is generally highly situation specific, and as such is only partial. It is for this reason few, if any, clear cut relations have been, or probably will be, found to exist between organizational configuration and member behavior and attitudes. References Anderson, B. F. The Psychology Experiment. Wadsworth Publishing Co., Inc., 1971. f,elmont, Ca. : Blau, P.A. A formal theory of differentiation in organizations. American Sociological Review, 1970, J.i, 201-219. Bock, R.D., & Haggard, E.A. The use of multivariate analysis of variance in behavioral research. In Handbook of ~easurement & Assessment in Behavioral Science. Whitla, D.K. (Ed.). Reading, ~ass.: AddisonWesley, 1968. Bruning, J.L., & Kintz, B.L. Computational Handbook of Statistics. Glenview, Ill.: scott, Foreman and Co., 1968. Carpenter, H.H. Formal organization structure factors and perceived job satisfaction of classroom teachers. Administrative Science Quarterly, 1972, 16, 460-465. Carroll, S.J., & Tosi, H.L. Organizational Behavior. Chicago, Ill.: St. Clair Press, 1977• Cartwright, D., & Zander, A. (Eds,). Group pynamics Research and Theory (3rd ed. ). New York: Harper & Row, 1968. Carzo, R., Jr. Some effects of organizational structure on group effectiveness. Administrative Science Quarterly, 1963, L• 393-424. Carzo, R., Jr., & Yanouzas, J.N. Effects of flat and tall ' organization structure. Administrative Science Quarterly, 1969, 14, 178-191. 71 72 Cummings, L.L., & Berger, C.J. Organization structure: How does it influence attitudes and performance? Organization Dynamics, 1976(Aut), 34-79· Cummings, L.L., & Scott, W.E., Jr. (Eds. ). Readings in Behavior and Human Performance. Illinois: R.D. Irwin, Inc. & The Dorsey Press, 1969. Du Brin, A.J. Fundamentals of Organization Behavior - An AEplied PersQective. New York: Pergamon Press, Inc., 19?4. Emery, F.E., & Trist, E.L. Socio-technical systems. Management Science~ Wo~els and Techniques. C.W. Churchman & ~. Verhulst (Eds.). New York: Pergamon Press, Inc., 1960, 83-97. In Guetzkow, H., & Simon, H.A. The impact of certain communication nets upon organization and perforformance i.n task oriented groups. r.~anagement Science, 1955, !_, 233-250. Hackman, J.R. Effects of task characteristics on group products. Journal of Experimental social Psychology, 1968, ~. 162-187. Hackman, J.R., Jones, L.E., & McGrath, J.E. A set of dimensions for describing the general properties of group generated written passages. Psychological Bulletin, 1967, £1, 379-390. Hackman, J.R., & Vidmar, N. Effects of size and task type on group performance and member reactions. Sociometry, 1970, 11. 37-54. Hall, R.H. Organizations: Structure and Process. Englewood Cliffs, N.J.: Prentice-Hall Inc., 1972. / Ivancevich, J.M., & Donnelly, J.H., Jr. Relation of organizational structure to job satisfaction, anxietystress, and performance. Administrative Science guarterly, 1975 (June), 20(2), 272-280. James, L.R., & Jones, A.P. Organization structure: A review of structural dimensions and their conceptual relationships with individual attitudes and behavior. O~anization Behavior & Human Performance, 1976, 16, 74-113. Jones, H.R., Jr. A study of organizational performance for experimental structures of 2, 3, & 4 levels. Academy of Management Journal, 1969, 12, 351-366. Katz, D., & Kahn, L. Common characteristics of open systems. In Social Psychology of Organizations. New York: John Wiley & Sons, Inc., 1966, 14-29. -Leavitt, H.J. Some effects of certain communication patterns on group performance. Journal of Abnormal and Social Psycho~, 1951, 46, 38-50. Linton, if'., & Gallo, P.s., Jr. The Practical Statistician: Simplified Handbook of Statistics. Monterey, Ca.: Brooks/Cole Publishing Co • , 197 5. / Lorsch, J.W. Introduction to the structural design of organizations. In Organizational Structure and Design. G.W. Dalton, P.R. Lawrence, and J.W. Lorsch (Eds.). Homewood, Ill.: R.D. Irwin, Inc., 1970, 1-16. Maier, N.R.F. Assets and liabilities in group problem solving: The need for an integrative function. Psychological Review, 1967, ~. 239-249. 74 Meltzer, L., & Salter, J. Organizational structure and the performance and job satisfaction of physiologists. American Sociological Review, 1960, 27, 351-362. Meyer, M.W. Theory of Organizational Structure. Bobbs-Merrill Educational Publishing, 1977. Indiana: Porter, L.W., & Lawler, E.E., III. The effects of "tall" versus "flat" organization structures on managerial satisfaction. Personnel Psychology, 1964, li, 135-148. Porter, L.W., & Lawler, E.E., III. Properties of organization structures in relation to job attitudes and job behavior. Psychological Bulletin, 1965, 64(1), 23-51. Porter, L.W., & Siegel, J. Relationships of tall vs. flat organization structure to the satisfaction of foreign managers. Personnel Psychology, 1965, 18, 379-392. Sadler, P.J., & Barry, B.A. Organizational characteristics of growing companies. Journal of Management Studies, 1967, 4, 204-219. Shaw, M.W. Some effects of problem complexity upon problem solution efficiency in different communication nets. Journal of Experimental Psycholog~, 1954, 48, 211-217. Shaw, M.E. Group Dynamics: The Psychology of Small Group Behavior. New York: McGraw-Hill Book Co., 1971. Wanous, J.P., & Lawler, E.E., III. Measurement and meaning of job satisfaction. Journal of Applied Psychology, 1972, 2£, 95-105. Wexley, K.N., & Yukl, G.A. Personnel Psychology. Inc., 1977~ Organizational Behavior and Homewood, Ill.: R.D. Irwin, 75 Worthy, J.C. Organizational structure and employee morale. kmerican Sociological Review, 1950, 12, 169-179. Appendix A Problem Solving Tasks 76 7'7 A John has just spent most of his money on a new car. He is now left with the problem of selling his old car. He must sell it as soon as possible because his savings are now slightly in the red. Because he is now so low on money, he can only allow $5 toward advertising costs. What are some of the low cost or no cost ways he can advertise that his car is for sale? Remember, he also wants quick results. B What would you do if you got a flat tire while driving on the freeway during a rainstorm? c Tom and Harry are roomates in a college dormitory. They share responsibility for keeping their room reasonably neat. The present problem is how to divide these "neat-keeping" chores. not mind sweepi~g. Tom loathes making beds, but does Harry also loathes making beds, but doesn't mind "straightening up" and dusting. Tom's classes start at 7 a.m. and end at 3 p.m. each day, while Harry's 78 I classes run from 10 a.m. until 6 p.m. Decide (and write down) who shall do what cleaning job wh~, in such a way that the solution will be satisfactory to both and all jobs get done. D Sue is a freshman in college. There is a boy in one of her classes that she would like to meet. What might sue do to meet him without appearing aggressive? E Psychologists have found that "sp~ced" as opposed to "massed" practice results in more rapid learning of everything from machine operation to spelling. The implications of these findings for study habits are obvious massing corresponds to cramming, and studying each course daily corresponds to spacing. Joe is a freshman in college. He works 20 hours a week, Nonday through Saturday, and goes to school from 8 to 4, five days a week. Write out verbally a general plan which Joe could use as a guide in alloting his time between work, studies, rest, and recreation. what. In other words, when should he do ' Appendix B Structural Computations 79 80 For the flat structure - there are six people at the same level and reporting to the same superior, so n = 5. Each can talk to five others, so r = 6. There are a total of seven people, N = 7. 1st level c= 2nd level 6 X 5 (7-1)(7-2) ·~Jo = = 1.00 JO For the tall structure - at the second level n = 2, = 2. At the third level n = 2, r = 1 for each 2 of the two parts to this level, nr = 2 + 2 = 4. The tor = 1, nr 3 tal number of people is seven, N = 7. 1st level 2nd level 3rd level c= 6 (7-1)(7-2) = 6 30 = 0.20 Appendix C Descriptions of the 21 Scales Defining the 7 Dimensions of Written GroQp SolQtions 81 82 Dimension I: Action Orientation Suggests action: The degree to which a passage states or implies that a specific or general course of action should be, might be, or will be followed. Constructive: The degree to which a passage is concerned with "doing something," whether it makes actual suggestions, implies them, "does something" by itself, or merely has a "tone" of constructiveness. Passive (reversed scoring): The degree to which a passage is inactive, complacent, quiet, or restful. Dimension II: Length Short (reversed scoring): Estimation of the brevity of a passage. Number of words: This is an "operational" scale. The number of words in the passage are counted. Lacks detail, elaboration (reversed scoring): The degree to which a passage is devoid of detail, examples, and elaboration. Dimension III: Eizarre: Originality The degree to which a passage is unique, odd, or "far out" in a morbid, ribald, or highly unusual sense. Not unusual (reversed scoring): The degree to which a pas- 8) sage is ordinary, everyday, or usual in content. Original: The degree to which the ideas contained in a passage are unique, fresh, unusual, surprising, or refreshing. Dimension IV! Optimis~ Positive outlook: The degree to which the general outlook, attitude, tone, or orientation of a passage is "positive" as opposed to "negative." Supportive: The degree to which a passage lends or implies support for some idea, object, or event. Disapproves (reversed scoring): The degree to which a passage states or implies disapproval of some idea, object, or event. Dimension V: Qualitv of Presentation Choppy (reversed scoring): The degree to which the writing of a passage is fragmented, broken, discontinuous, or inappropriately staccato, as opposed to flowing or harmonious. Stylistically well-integrated: The degree to which the writing of a passage blends together in an appropriate manner. Consistency and synchronization of the style of the passage are of primary importance in making judgements on this scale. 84 Understandably presented: The degree to which a passage can be read and understood without excessive difficulty; the clarity of the presentation. Dimension VI: Issue Involvement IJow issue involvement (reversed scoring): The degree to which a passage fails to adopt a position or point of view with respect to some matter, or fails to deal with the subject matter in the appropriate depth. Propagandistic: The degree to which a passage attempts to sell or push a particular point of view. States a belief or opinion: The degree to which a passage states or very strongly implies a particular belief or opinion about some idea, object, or event. Dimension VII: Operability Effectiveness: The degree to which a solution is instru- mental in attaining the desired goal. Feasibility: The degree to which a solution could in fact be put into action, as opposed to being farfetched and non-realistic. Cost-effectiveness: The degree to which a solution at- tempts to achieve maximum goal attainment at a minimum cost. Appendix D Satisfaction Questionnaire 85 86 QUESTIONNAIRE Below you will find twenty-six statements concerning your job position. For each question you will find a scale on your answer sheet that ranges from "none.at all" to "very much." Please read each question and make a v or X in a box on this scale according to the way you perceive or see your job position. There are no right or wrong responses. Please DO NOT sign your name. ----------------------------------------------------------How much is there now of the following1 1. The feeling of security in my job position. 2. The feeling of self-esteem or respect in my job position. 3. The amount of close supervision in my job position. 4. The opportunity for independent thought and action in my job position. 5. The opportunity for feedback on performance in my job position. 6. The opportunity to help others in my job position. ?. The feeling that I know when I do a job well in my job position. 8. The amount of variety on the job in my 9. The opportunity to develop social relationships in my job position. posit~on. 10. The feeling of accomplishment in my job position. 11. The opportunity to get to know others in my job position. 12. The feeling of self-fulfillment in my job position. 13. The amount O,f authority in my job position. 87 How much would you like there to be of the following? i4. The feeling of security in my job position. 15. The feeling of self-esteem or respect in my job position. ------- 16. 'I·he amount of close supervision in my job position. 17. The opportunity for independent thought and action in my job position. 18. The opportunity for feedback on performance in my job position. 19. The opportunity to help 9thers in my job position. 20. The feeling that I know when I do a job well in my job position. 21. The amount of variety on the job in my job position. 22. The opportunity to develop social relationships in my job position. 23. The feeling of accomplishment in my job position. 24. The opportunity to get to know others in my job posi. tion. 25. The feeling of self-fulfillment in my job position. 26. The amount of authority in my job position. ----------------------------------------------------------Please place a -./ or X in a box on the scale according to your perceptions of the situation. 27. As compared to the others in the group my answer had the following amount of influence on the final decision. 28. The final solution was formed out of a fair and impartial consideration of everyone's answers. 29. As compared to the others in my group I feel my job position had the following amount of status. 88 The following questions relate to the following need areas. Self-esteem- 2,7,12,15,20,25 Growth- 5,8,10,18,21,23 Autonomy- 3,4,13,16,17,26 Security - 1,14 Social- 6,9,11,19,22,24 Appendix E Instructions 89 90 This study is being conducted to determine the effects different organizational structures have on group performance. I want you to think of yourself as being part of a group of researchers whose job is to make recommendations of way certain problems could be solved. You will be pre- sented with a series of five problems which I'd like you to answer within the specified time limit. There is no one "best" answer to any of these problems so just do the best you can. Your group will be working under a tall structure which resembles this graphic display. Your group will be randomly broken down into subgroups, which will then be placed at three different levels within this structure, One of you will be placed at the top level, the leader position, two at the second level, the supervisor positions, and the remaining four at the third, lowest level, the worker positions. will then be handed a problem. which to reach a solution. ask you to stop working. Everyone You will have 5 minutes in At the end of this time I will The worker subgroups will then meet with their respective supervisor for 5 minutes and form a single solution. Then the supervisors will meet with the leader for 5 minutes and form a single solution. The leader will then be left alone for 5 minutes to write out the final solution. 91 As in most companies that are organized as a hierarchy, workers• suggestions do not go directly to the President, but go through intermediate stage~ in which these sugges- tions are reviewed, revised, and then passed on up the levels until they reach the President. The structure you are in simulates such an organization. When the final solution has been made, it will be read aloud to your group by your group's leader. Your group's performance will be based on this final solution. Quality of performance is based not only on the solution itself, but also on its presentation, i.e., writing style and grammer, so I'd like the leader to please use complete sentences when writing the final solution to each problem. You will go through this process five times. You can take less than the alloted time to solve each problem, but you cannot take more than that time. At the end of some trials you will be given a questionnaire to complete, I want your responses to·reflect your own ideas, not those with which you think someone in your job position would respond. You will have 4 minutes to fill out the questionnaire. Each time you answer the questionnaire I want your response to reflect how you feel at that moment, in that your attitudes may change over the course of this experiment. To ensure privacy of responses, no talking will be al- 92 lowed except during subgroup meetings. Are there any questions? 93 This study is being conducted to determine' the effects different organizational structures have on group performance. I want you to think of yourself as being part of a group of researchers whose job is to make recommendations of ways certain problems could be solved. You will be pre- sented with a series of five problems which I'd like you to answer within the specified time limit. There is no one "best" answer to any of these problems so just do the best you can. Your group will be working under a flat structure which resembles this graphic display. One of you will be randomly designated the leader. Everyone will then be handed a problem. minutes in which to reach a solution. time I will ask you to stop working. You will have 5 At the end of this You will then be given 10 minutes in which I want your group to form a single solution to the problem. The leader will then have 5 minutes alone in which to write out the final solution. The final solution to each problem will be read aloud to your group by your group's leader. Your group's perfor- mance will be based on this final solution. Quality of performance is based not only on the solution itself, but also on its presentation, i.e., writing style and grammar, so I'd like the leader to please use complete sentences when writing out the final answer to each problem. 94 You will go through this process five time·s. You can take less than the alloted time to solve each problem, but you cannot take more than that time. At the end of some trials you will be given a questionnaire to complete. I want your re spons?§_ j;o _:t'?f_l~9t your own ideas, not those with which you think someone in your job position would respond. To ensure that your responses to this questionnaire do reflect your own opinions, no talking will be allowed during this part of the experiment. You will have 4 minutes to fill out the ques- tionnaire. Each time you answer the questionnaire I want your response to reflect how you feel at that moment, in that your attitudes may change over the course of this experiment. Are there any questions? .Appendix F Multivariate Analyses 95 Performance As the component parts of written solution quality were found to be significantly intercorrelated (see Table 5), another acceptable analysis is the multivariate analysis of variance. This analysis was performed on the seven quality dimensions: action orientation, length, originality, optimism, quality of _presentation, issue involvement, and operability. As summarized in Table 21, no statistically significant effects were found to exist on the performance quality criterion. Performance quality was similar over trials and between structures. Even though the scoring of some dimensions was more reliable than others (see Table 4), no areas of performance quality were affected by organizational structure or by trials. Satisfaction As the five component parts of need satisfaction were found to be significantly intercorrelated (see Table 6), multivariate analysis of variance provided an alternative evaluation of the data. This analysis was performed on the five need satisfaction measures: growth, autonomy, and social. security, self-esteem, The results, summarized in Table 22, indicate a significant difference between organizational levels on the satisfaction composite. Leaders reported significantly more satisfaction (means vector: 0.66, 1.15, 1.35, 0.08, 1.11) than did workers (means vee- 97 'I'able 21 summary of the multivariate analysis of variance for performance quality as a function of organizational structure. Source u-statistic df F df Between Groups Structure 0.548 7. 1 J 8 0.24 7 2 Errorb Within Groups Trials 0.452 Trials X Structure 0.467 Errorw 7. 4, 32 7. 4, 32 0.84 28 0.80 28 95 98 Table 22 Summary of the multivariate analysis of variance for need satisfaction as a function of organizational structure and level. Source u-statistic df F df Between Groups 2.04 5 0.392 5, 1 ' 16 5, 1 ' 16 3.72* 5 0.574 5, 1 ' 16 1.78 5 Structure 0.541 Level Structure X Level 12 Errorb Within Groups 0.660 5. 2, 32 1.29 10 Trials X Structure 0.726 5, 2, 32 0.97 10 0.648 5, 2, 32 1.35 10 Trials X Structure 0.772 X Level 5. 2, 32 0.77 10 Trials Trials X Level Error *p < .05 w 56 99 tor: 1.34·, 1.92. 1.90, 1·.01, 1.39). The smaller the num- ber, the more satisfaction perceived. There was no trials effect, satisfaction remained constant over time. Nor was there a main effect of structure, satisfaction was similar between organizational structures. Further, none of the interactions produced a statistically significant effect on satisfaction. This significant effect of organizational level, however, did not by itself indicate specifically in which need area or_areas this differential satisfaction occurred. A multivariate analysis of covariance (step-down analysis) was chosen as the most appropriate method of analysis (Bock & Haggard, 1968). Univariate analysis of variance results are presented alongside the step-down analysis results (see Table 23) for comparison purposes. In step- down analysis the experimenter decides the order the variables will enter the analysis. As the autonomy need was thought to be the most important component of this differential satisfaction, it was entered into the analysis first. The self-esteem, growth, social, and security needs were subsequently entered in that order. As can be seen in Table 23 a significant difference was found between levels only on satisfaction of the autonomy need. Leaders (mean discrepancy satisfaction score = 1.15 on a scale of +6 to -6) reported significantly more satisfaction of this need than did workers (mean= 1.92). Table 23 summary of the univariate analyses of variance and step-down analysis for need satisfaction as a function of organizational structure and level. Dependent Variable Autonomy Self-esteem Growth Social un~v. Factor E. df Crit. F 4.90 14.88 5.8o 1,16 1,16 1,16 1 4.90 14.88* 5.80 1,16 1,16 1,16 8.53 .01 s 0.46 4.31 2.94 1,16 1,16 1,16 2 0.86 3.30 3.43 1,15 1,15 1,15 8.68 .01 s 0.52 1.89 2.50 1,16 1,16 1,16 3 0.14 0.02 0.12 1,14 1,14 1,14 8.86 .01 s 0.02 0.65 5.32 1,16 1,16 1,16 4 0.73 0.50 0.51 1,13 1,13 1,13 9.07 .01 4.38 2.67 2.06 1,16 1,16 1,16 5 3.12 0.55 0.04 1,12 1,12 1,12 9.33 .01 L SL L SL s L SL *P < •05 df Step-down s L SL L SL Security F Priority The remaining variables showed no additional unique effects on level after the effect of autonomy was partialled out.
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