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Relationships between person-environment congruence and organizational effectiveness Author: Cheri Ostroff Date: Mar. 1993 From: Group & Organization Management(Vol. 18, Issue 1) Publisher: Sage Publications, Inc. Document Type: Article Length: 5,509 words

Abstract:

The effect of person-environment (P-E) congruence on organizational effectiveness is examined. P-E congruence is defined as the degree to which the members of an organization exhibit the same overall characteristics of their organization. The hypothesized relationship between P-E congruence and organizational performance is premised upon the tendency of people to be attracted to organizations that are similar to themselves. Data on organizational performance, personal orientation and organizational climate were collected from school principals, teachers and students in 29 schools. Climate factors and the corresponding personal orientations include participation, cooperation, warmth, growth, innovation, autonomy, achievement, hierarchy and structure. Correlation analysis indicates that there exists a positive relationship between P-E congruence and organizational performance.

Full Text:

A fundamental assumption in organizational psychology is that organizations and individuals are interdependent (Pfeffer & Salancik, 1978; Roberts, Hulin, & Rousseau, 1978). It is impossible to understand behavior in organizations without understanding the interaction between features of the organizational context and characteristics of the individuals operating within the organization (Endler & Magnusson, 1976; Pervin, 1978; Schneider, 1983a, 1983b).

The notion of person-environment (P-E) congruence has been used to guide the simultaneous consideration of persons and situational contexts in the study of organizational issues (Aronoff & Wilson, 1985; Chatman, 1989; Schneider, 1987b). Underlying the P-E congruence concept is the assumption that individuals and organizations will be more effective when the attributes of the person and situational environment match or are congruent.

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Most studies of P-E congruence have focused on the effects of congruence on individuals' behavior and attitudes (cf. Morse, 1975; O'Reilly, 1977; Ostroff, in press; Pervin, 1978) or on the relationship between P and E factors (e.g., Stern, 1970). However, little research has addressed the effects of P-E congruence or the kinds of people operating within organizations on organizational effectiveness (Schneider, 1983b). The purpose of this study was to explore the relationship between P-E congruence and organizational effectiveness.

P-E CONGRUENCE AND EFFECTIVENESS

Schneider (1983a, 1983b, 1987a, 1987b) proposed that person and environment become integrated through a cycle of attraction-selection-attrition (ASA). People are attracted to organizations that have characteristics similar to their own, organizations select people who have the particular attributes needed for organizational effectiveness, and people who do not fit the organization tend to leave. Through the cycle of ASA, organizations end up with people who share many common personal attributes. At the same time, the kinds of persons in organizations determine the kind of internal environment that defines the organization. The goals of the organization provide direction to the organization. Organizations must attract, select, and retain people who act and interact in ways that direct the organization's activities in accordance with these goals. Thus the kinds of people attracted to, selected by, and retained in organizations ultimately determine the structures, processes, and general climate of the organization. Organizations are viable when they attract, select, and retain the kinds of people who are able to comprehend what the organization's context and goals should be and behave accordingly to promote the effective operating of the organization. Thus it follows that organizations composed of people who fit the organizational environment will be more effective than those organizations in which persons and environment do not match. Similar views have been espoused in other organizational theories (cf. Emery & Trist, 1960; Etzioni, 1975; Likert, 1961).

PERSON AND ENVIRONMENT FACTORS

Three major concerns guided the choice of P and E factors in this study. First, the two factors should be conceptualized and measured in the same terms or with commensurate dimensions (Caplan, 1987; Sims, 1983). Second, the factors should be based on psychologically derived dimensions (Schneider 1987a, 1987b). Finally, it is important that the E characteristics be measured independently of the respondents providing P measures (Roberts et al., 1978).

For the purpose here, personal orientations were chosen as the relevant P characteristics. Personal orientations refer to sets of preferences, values, and beliefs about oneself in relation to the environment (Cooke & Rousseau, 1983). Personality-type measures should be useful for identifying the characteristics or types of people who represent whole organizations (Schneider, 1987b). The concept of organizational climate was used to define the E characteristics. Organizational climate is conceptualized as a summary perception or summated, averaged meaning that people attach to particular features of the work setting (James, 1982; Schneider & Reichers, 1983) and that represents a shared perception of the work context. Climate is a useful approach for considering the match between attributes of the P and E because it has been treated analogously to personality (Halpin & Croft, 1963), in the sense that people tend to map personality characteristics onto organizations. In this study, organizational climates were measured from samples of individuals who were different from the samples that provided measures of personal orientations.

ORGANIZATIONAL EFFECTIVENESS

Although there is little consensus as to what constitutes a valid set of effectiveness criteria (Cameron, 1986; Katz & Kahn, 1978), there seems to be a general consensus that organizational effectiveness be studied from a multidimensional perspective (Cameron, 1986; Connolly, Conlon, & Deutsch, 1980; Goodman & Pennings, 1980). It has been argued that organizations must identify multiple domains of effectiveness and that a multitude of effectiveness criteria measures are needed for a more comprehensive evaluation of organizations (Cameron, 1981, 1986; Hitt, 1988; Kanter & Brinkeroff, 1981). Therefore, for the present research, a variety of organizational effectiveness measures was desired. In this study, the organizations were secondary schools. According to the school effectiveness literature (e.g., Brookover & Schneider, 1975; Cameron, 1978, 1981; Good & Brophy, 1986; Keefe, Kelley, & Miller, 1985), schools are purported to have many goals areas, among them: (a) academic

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achievement, (b) administrative performance, (c) student behavior, (d) constituency satisfaction and attitudes, and (e) teacher retention. These areas cut across different domains of school performance. Thus school effectiveness can be defined as the extent to which the school produces students who achieve high academic standards; students with few behavior problems; satisfied students, parents, and teachers; low teacher turnover; and a high-performing administrative team.

RESEARCH FOCUS

As an outcome of the ASA cycle, organizations should be composed of people with similar personal attributes. Further, people are attracted to an organization because of the organization's goals, an organization selects people who appear to be capable of helping the organization achieve its goals, and people remain in an organization when they can achieve their own goals within the organization. Because the people within the organization ultimately determine the structure and processes of the organization, the effectiveness of the organization may depend on the kind of people behaving in the organization and on the organizational context they create (Schneider, 1983b). People who fit or match the organization should be more likely to understand and work toward achieving the organization's goals and objectiveness, thereby enhancing organizational effectiveness.

Moreover, it is also likely that some dimensions of congruence between person and environment factors are more or less important for some effectiveness domains than others. In particular, many researchers have noted that participative, warm, trusting, and achievement-oriented people and environments are important for the effective functioning of the organization and for enhancing employee well-being in the workplace (Alderfer, 1972; Argyris, 1964; Likert, 1961; McGregor, 1960). Hence dimensions that focus on social aspects and achievement or growth areas may be the most important dimensions for examining P-E congruence effects. Also, satisfaction and positive attitudes are purported to result in productivity-related employee behaviors and responses at work that, in turn, enhance organizational effectiveness (Likert, 1961; Ostroff, 1992), and it has been shown that P-E fit is related to the satisfaction and positive attitudes of employees (Chatman, 1991; Ostroff, in press). Thus P-E congruence may be more strongly related to satisfaction or attitude effectiveness domains than to other domains of effectiveness.

Therefore, it was hypothesized that the congruence between person and environment factors would be related to organizational effectiveness. Organizations composed of people whose personal orientations match the climate of the organizations should be more effective. Further, some dimensions of congruence, particularly those relating to social and achievement areas were believed to be more important for effectiveness, and the strongest results between person-environment congruence and effectiveness were expected for satisfaction and attitude effectiveness domains.

METHOD

SAMPLE AND PROCEDURE

This study was part of a larger project undertaken for the National Association of Secondary School Principals (NASSP). A sample of 29 secondary schools from four states (Illinois, Massachusetts, Virginia, and Washington) participated in the study. Permission to administer surveys to the schools was solicited by the NASSP. Surveys were mailed to school principals by the NASSP. A letter explaining the project and how to collect the requested data accompanied each packet of materials.

The principal survey asked school principals to report about their school, the performance of the administrative team, school effectiveness indexes, and additional questions for another purpose.

School principals were asked to distribute the teacher surveys to teachers in the school. All teachers within a school were asked to participate. One half of the teachers within each school were asked to complete the climate survey, and the second half completed the personal orientation and outcome survey. Measures of personal orientations and outcomes were provided by 607 teachers, of which 597 provided usable data. Measures of

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climate were provided by 590 teachers, of which 581 contained usable responses. Most (92%) of the teachers were White, and 61% were female.

Principals also distributed surveys to students. The survey measured students' satisfaction as well as other variables for another purpose. Usable data were collected from 2,433 students. Most (86%) of the students were White, and 56% were female.

Surveys were also distributed to students' parents. These surveys measured parents' satisfaction with various aspects of the school as well as other variables for another purpose. Usable surveys were collected from 2,320 parents.

Once teachers, students, and parents completed the measures, they were collected by the school principal, who mailed all surveys to the researcher. All responses were anonymous and confidential.

MEASURES AND SCORING

Climate (E factors). The climate survey was designed for measurement at the individual level, with the frame of reference being the organization as a whole. Nine climate dimensions were assessed (participation, cooperation, warmth, growth, innovation, autonomy, achievement, hierarchy, and structure). Table 1 contains the dimension definitions. Many of the items were derived from the NASSP Climate Survey (Kelley et al., 1986). Additional items were culled from previously developed scales (e.g., Hage & Aiken, 1967; Litwin & Stringer, 1968; Schnake, 1983) or were designed for the study on the basis of a review of school climate literature. All items used a 5-point Likert-type scale ranging from most people would strongly disagree (0) to most people would strongly agree (4) with this statement. Alpha coefficients ranged from .67 to .85. Intercorrelations among the climate dimensions ranged from .27 to .76, with a median of .51.

Personal orientations (P factors). The personal orientation measure was developed to assess individuals' sets of preferences and beliefs in relation to the work environment. Nine dimensions were included that were commensurate with the climate dimensions. Job-relevant items were developed to capture individual characteristics as opposed to preferences for a particular environment. A 5-point Likert-type scale ranging from strongly agree (0) to strongly disagree (4) was used for all items.

Individuals' responses to items within a dimension were averaged to derive a personal orientation score for each dimension for each person. Internal consistency reliabilities ranged from .63 to .92, with a median of .73.

Climate-personal orientation congruence. A single aggregate measure for each of the personal orientation and climate dimensions for each school was needed to represent the P and E factors for the organization. Before aggregating individual-level data to represent an organization-level construct, agreement or shared meaning had to be demonstrated (James, 1982; Jones & James, 1979). Two indexes were used to estimate agreement. First, ICC(1) (James, 1982) was calculated. In general, ICC(1) values have ranged from .00 to .52, with a median of about .12 (James, 1982). The average ICC(1) for the climate dimensions was .27, and for the personal orientations it was .11. A second procedure for estimating agreement was based on the procedure of James, Demaree, and Wolfe (1984). Agreement indexes ranged from .00 to .99, with a median of .87 for the climate dimensions, and from .00 to .92, with a median of .64 for the personal orientations. The climate and personal orientation scores were averaged across individuals within each school for each of the dimensions.

Two types of omnibus or overall measures of congruence were calculated, based on profile similarity techniques. First, P-E congruence can be measured by comparing the organizational profile (E) to the personal profile (P) TABULAR DATA OMITTED and then calculating the correlation between them (Chatman, 1989). Thus, for each school, a correlation was computed between aggregated climate and personal orientation scores. This measure represents the degree to which the "shape" or rank ordering of the P and E factors is similar within organizations. Higher correlational congruence scores indicate a greater degree of congruence.

Correlational measures do not allow for examination of similarity in absolute level. Thus a second index of congruence, a measure of distance D (see Nunnally, 1978) was calculated. For each school, D was computed by

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taking the square root of the sum of the squared difference between corresponding personal orientations and climate dimensions. That is, for each school, the corresponding climate and personal orientation scores were subtracted and then squared; the squared differences were summed across dimensions, and the square root of the sum was taken. D is a measure of similarity between two profiles of mean scores and considers absolute level of similarity. Higher distance scores indicate a lesser degree of congruence.

One potential problem with omnibus measures of congruence is that they may obscure important relationships between variables; hence separate analyses for each component of the omnibus measure should be undertaken (Johns, 1981). Therefore, to evaluate congruence for each of the dimensions, for each school, the absolute value of the difference between the aggregate personal orientation score and the corresponding climate score was calculated for each dimension. Higher scores indicate a lesser degree of congruence.(1) The means, standard deviations, and intercorrelations of the congruence scores are contained in Table 2. The magnitude of the intercorrelations ranged from .00 to .83, with a median of .43, indicating some degree of redundancy among the congruence measures. In general, the highest intercorrelations were observed between the two overall measures and the difference scores. Relatively lower intercorrelations were observed among the difference score indexes.

Organizational effectiveness. Based on reviews of school effectiveness literature, five areas of organizational effectiveness were assessed, and representative measures were collected. The first was academic achievement, measured with (a) the percentage of students enrolled in all courses who passed them, (b) the percentage of students enrolled in college preparatory courses who passed, and (c) standardized achievement test scores (average normalized curve equivalents) in the areas of reading, mathematics, and social science, scores across grade levels were averaged when appropriate.

The second effectiveness category was administrative performance. Principals rated various aspects of the school's administrative team, including curriculum and instructional leadership, coordination of student activities, TABULAR DATA OMITTED directing the behavior of students, staff evaluation and development, community relations, interpersonal communication, and fiscal or monetary management. The scale ranged from exemplary (0) to unsatisfactory (5). Responses to the items were averaged for each school. Internal consistency reliability was .89.

The third effectiveness area assessed was student behavior, measured with four variables. The measures included (a) the average daily attendance at the school for the academic year as a percentage of students (with a possible range of 0 to 100), (b) the percentage of students who received disciplinary referrals during the academic year, (c) the percentage of students who received suspension from school during the academic year, and (d) the percentage of students involved in counseling referrals for disciplinary reasons. The latter three were assessed with a 9-point scale ranging from less than 1% (0) to 15% or more (8).

The fourth effectiveness category was constituency satisfaction and attitudes, assessed for students, parents, and teachers. Eight items measured student satisfaction with various aspects of the school, teacher satisfaction was assessed with nine items, and nine items assessed parent satisfaction -- including communication, teachers, physical facilities, rules, and student activities. A 5-point Likert-type scale ranging from very unhappy (0) to very happy with this aspect of my school (4) was used for all measures. Alpha coefficients were .84 for student, .82 for parent, and .80 for teacher satisfaction.

In addition, teacher commitment to the school was measured with 13 items that were adapted from previous scales (Franklin, 1975; Hrebaniak & Alluto, 1972; Porter & Smith, 1970). A 5-point Likert-type scale ranging from strongly agree (0) to strongly disagree (4) was used. The alpha coefficient for the scale was .81.

The final category was teacher intention to turnover. Because of practical difficulties in obtaining actual turnover rates, intentions were assessed. Intentions have been shown to be strongly correlated with actual turnover (Steel & Ovalle, 1984). Turnover intentions were assessed with three items based on the scale by Cammann, Fichman, Jenkins, and Klesh (1979). A 5-point scale ranging from strongly agree (0) to strongly disagree (4) was used. The alpha coefficient was .85. Responses to the satisfaction and commitment measures were aggregated to the school level.

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The means, standard deviations, and intercorrelations among the school effectiveness measures are contained in Table 3. All items were scored for data analyses such that a higher score indicates a more "positive" response. The intercorrelations among the measures ranged from .00 to .90, with a median of .24. The correlations among the achievement test scores were TABULAR DATA OMITTED somewhat high, as were the correlations among teacher satisfaction, commitment, and turnover. However, intercorrelations among the other effectiveness measures tended to be low, indicating that these measures appear to be tapping relatively independent aspects of organizational effectiveness.

RESULTS

Correlations between the climate-personal orientation congruence terms and effectiveness measures are presented in Table 4. The two measures of overall congruence, defined through the correlational congruence term and the distance score term, indicated that a greater degree of climate-personal orientation match was related to three major categories of effectiveness (academic achievement, administrative performance, and constituency satisfaction). There was little relationship between overall congruence and student behavior and turnover. These results lend support to the general hypothesis that P-E congruence and organizational effectiveness are related.

To examine these findings at a more refined level of detail and to assess whether some areas of congruence are more important than others, congruence for each dimension was examined, using the difference score congruence terms. In general, congruence between climate and personal orientations were positively related to effectiveness; however, the correlations for hierarchy and structure were in the opposite direction of expectations. That is, larger differences were related to effectiveness for these two dimensions. Further, dimensions were differentially related to different areas of domains of effectiveness. For academic achievement, congruence in terms of participation, cooperation, and achievement was important, and incongruence in structure was important. For administrative performance, congruence in the dimensions of cooperation, growth, innovation, and achievement was important; and, for student behavior, congruence in participation, warmth, and achievement was most important. When considering constituency satisfaction or attitudes, all dimensions except cooperation were important; however, for hierarchy and structure, incongruence was related to effectiveness. Finally, for teacher turnover intentions, congruence in the dimensions of participation, warmth, and autonomy were important, and incongruence in structure was important. Overall, in support of the propositions, the strongest and most consistent findings were seen for the dimensions of participation, warmth, and achievement and for the effectiveness domain of satisfaction and attitudes.

TABULAR DATA OMITTED

These results demonstrate that (a) congruence is generally related to organizational effectiveness; (b) depending on the domain of organizational effectiveness under consideration, different areas of congruence may be more or less important; and (c) it is possible that, in a limited number of areas, incongruence is more important than congruence.

DISCUSSION

Theories of organizations have long been concerned with the role of people in the organization and the notion that P-E congruence influences organizational effectiveness (e.g., Emery & Trist, 1960; Etzioni, 1975; Gross & Etzioni, 1985; Likert, 1961; Schneider, 1983a, 1983b); yet little empirical work has followed. This is one of the first studies that investigated the relationship between P-E congruence and organizational effectiveness and considered simultaneously the personality of employees and the climates of the organization as they relate to organizational performance. Results of the study generally supported the notion that organizations are more effective to the extent that the characteristics of the employees match the characteristics of the organization.

At a general level, the results from this study may lead researchers to conclude that P-E congruence is a desirable state for organizations. Yet, in some areas, incongruence may also be important. This can be explained by the ASA cycle and by taking a longer-term perspective of effectiveness. The ASA cycle results in a homogeneous set of people within the organization. When the external environment changes, organizations may

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have trouble adapting to this change because they do not contain people with the appropriate inclinations for the changing environment. Hence over time, because the organization has not selected and retained people with the appropriate characteristics and subsequently developed internal processes to deal with the new external environment, the organization may fail. The implication of this is that organizations must actively seek some individuals who do not completely "fit" the current organizational context. Such new "right types" should share some attributes of the current employees but differ in other attributes (Schneider, 1987a). This notion may explain the finding in this study that congruence for most dimensions was related to organizational effectiveness, but "noncongruence" for the dimensions of hierarchy and structure were related to effectiveness. It may be that individuals who do not fit the organization with respect to these two dimensions are necessary for the long-term effectiveness and survival of the organization.

On the basis of the findings from the study, several conclusions can be offered. First, at a general level, the results from this study indicate that congruence is desirable and is related to the effectiveness of the organization. Second, the relationship between congruence and effectiveness may not be as simple and straightforward as originally believed. Congruence in some areas may be more important for certain organizational effectiveness domains than others. This implies that a more detailed analysis of the relationship between congruence and different organizational performance is necessary before trying to promote congruence. Third, incongruence may also be important in a limited number of areas. Hence it is important to identify where and for what aspects of organizational effectiveness incongruence is important.

Several implications for considering P-E congruence and effectiveness can also be derived. Because both people and organizations are multifaceted, it is important to examine a variety of areas of congruence and organizational performance. For example, researchers or managers might assess a variety of person and organization factors and their congruence (such as congruence between personality and climate dimensions, peoples' desire for complexity and job complexity, peoples' preference for structure and organizational structure) as well as identify a variety of organizational effectiveness domains (such as output, efficiency, constituency satisfaction, resource utilization, and so forth). The relationship between congruence in different areas and different organizational performance domains should then be evaluated to delineate which areas of congruence are most important for which organizational outcomes. Ideally, a taxonomy of congruence and effectiveness would be derived.

Given this information, strategies can be developed for enhancing congruence in certain areas relevant to organizational performance. Recruiting strategies can be developed to increase the pool of applicants with the particular characteristics that match the organizational context. Similarly, selection procedures should follow that allow for measurement of these characteristics. Traditionally, the focus in selection has been on matching peoples' skills and abilities with the skill and ability requirements of the job; but, more recently, the important role of personal characteristics as predictors in selection has been documented (e.g., Barrick& Mount, 1991; Hough, Eaton, Dunnette, Kamp, & McCloy, 1990; Ostroff, in press). Including a broader range of personal characteristics in selection should help achieve a better match between person and organization characteristics. Once people are members of the organization, socialization or training can aim to achieve fit by altering the characteristics of people in the organization. Some research has indicated that, when new employees' values match those of the firm when they are selected, they adapt more quickly and that a positive change in fit can occur through the socialization process (Chatman, 1991). Participation in decision making may be another useful tool for achieving fit. Participation may allow people who are most likely to have information about the needs of employees and the nature of the environment to make decisions about how to enhance P-E fit (Caplan, 1987).

It is clear that a number of techniques are available to promote P-E fit in organizations. However, researchers, managers, and practitioners should be careful not to apply these techniques blindly, as incongruence in some areas may be needed to promote longer-term effectiveness. Here, practitioners should focus on determining the areas in which incongruence is desirable. The future goals of the organization should be considered, and the characteristics of people that will be needed to achieve these goals should be defined. Then, the focus should be on increasing the range of types of people or characteristics, so that incongruence is achieved for these key areas. Thus organizations should seek congruence among P-E in many areas to remain stable and effective, but, in some areas, incongruence may be more desirable to help cope with changes and enhance longer-term viability.

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One limitation of this study pertains to the nature of the sample, given that all organizations were secondary schools. Future research is needed to examine P-E congruence and organizational effectiveness relationships for other types of industries to determine if this relationship holds for other industries and occupations.

NOTE

1. The correlation congruence term and difference score congruence terms were also computed for each individual and then aggregated across individuals to the school level. The resulting terms were virtually identical to those described, and the correlations between the two methods of calculating the congruence terms averaged .92.

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Cheri Ostroff is Assistant Professor in the Industrial Relations Center at the University of Minnesota. She received her Ph.D. in industrial-organizational psychology from Michigan State University. Her research interests include levels of analysis issues, training evaluation, performance appraisal, person-environment congruence, staffing, socialization, and climate.

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Ostroff, Cheri. "Relationships between person-environment congruence and organizational effectiveness." Group & Organization Management, vol. 18, no. 1, Mar. 1993, p. 103+. Gale OneFile: Business, https://link-gale- com.libraryresources.columbiasouthern.edu/apps/doc/A14080014/ITBC?u=oran95108&sid=ITBC&xid=dad6d2f0. Accessed 3 Sept. 2020.

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