Research in Business
* Academy of Managemenl journal 1994, Vol. 37, No. 1. IBO-192.
AN EXAMINATION OF THE COGNITIVE PROCESSES USED TO HANDLE EMPLOYEE JOB PROBLEMS
J. C. WOFFORD University of Texas at Arlington
This study examined the cognitive processes involved in handling job problems in two business organizations. Two situational characteris- tics, discrepancy between a goal and performance and the frequency of a problem's occurrence, and two individual characteristics—cognitive complexity and the accessibility of "script tracks" in memory (concep- tual structures)—were found to he associated with these cognitive pro- cesses. |ob complexity moderated the relationship of cognitive com- plexity with promotability.
The cognitive processes organization members use in dealing with their task environments have become an important area for theoretical and re- search analysis. The understanding of cognitive structures and processes has contributed to several management areas. For example, in the study of lead- ership, cognitive constructs studied include attribution (Mitchell & Wood, 1980), cognitive complexity (Hunt, 1991), leadership prototypes, and sche- mata (Lord & Maher, 1991), In decision making, cognitive constructs include heuristics [Kahneman & Tversky, 1987), judgment and choice (Child, 1972), and scanning (Daft, Sormunen, & Parks. 1988). The cognitive processes may provide a useful supplement to the situational approacb in areas such as leadership and job design in which inconsistent research results hamper managerial applications. Academics can inform managers that situations influence the effectiveness of various job characteristics and leadership styles, but we cannot confidently prescribe courses of action for their par- ticular situations. The joint effects of moderators appear to be obscuring the picture [cf. Johns, Xie, & Fang, 1992; Yukl, 1989). More consistent results may be obtained by examining the mediating effects of cognitive processes and the specific moderators for relationships involving these processes.
The present study examines some antecedents and consequences of the cognitive processes employees use in handling their job problems. Job prob- lems are the issues, decisions, and tasks that employees handle in tbeir work. Situational characteristics and individual characteristics of employees affect the cognitive processes used to handle problems. This study focused
Thanks to David Harrison and Vicki Goodwin for their helpful comments on an earlier draft of this article. I also thank Brian Cornforth and Paula Daly, for their help in conducting the research, and the two anonymous reviewers, for their helpful insights and suggestions.
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1994 Wofford 181
on three characteristics of individuals—length of job tenure, cognitive com- plexity, and the accessibility of "script tracks" in memory—and on two situational characteristics: goal-performance discrepancy and the frequency of a problem's occurrence. The study also explored the relationship of an individual's promotability u^ith the number of script tracks and with cogni- tive complexity (see Figure 1). The present study examines individual re- lationships presented in Figure 1 ratber than tbe overall model.
Schemata are knowledge structures in memory tbat people use to un- derstand environments, handle job problems, and acbieve goals. The types of schemata are scripts, plans, categories, implicit theories, prototypes, and heuristics (Lord & Maber, 1991). A script is a cognitive memory structure consisting of the objects, events, roles, conditions, sentiments, and outcomes that occur in a sequential pattern in familiar tasks and situations (Abelson, 1981; Gioia & Poole, 1984; Lord & Kernan, 1987). Scripts often incorporate multiple tracks to goal attainment (Abelson, 1981). For example, for an ex- perienced personal computer user, a track for printing a spreadsheet file probably follows a scripted process that includes the following steps: switching on tbe computer and printer, executing the spreadsheet program, loading tbe file, printing the file, and exiting tbe program. Another track for
FIGURE 1 A Cognitive Processes Model for Handling Job Problems
Individual Characteristics
Cognitive Complexity
Job Tenure
Acce.ssibilily of Script Tracks
Situational Characteristics
Frequency of Occurrence of Job Problems
Goal-Performance Discrepancy
Cognitive Processes
Strategy Processes
Script Track Processes
Promotability
182 Academy of Management /ournaJ Fehniary
accomplishing this goal might involve switching on the computer and printer, executing a word processing package, loading the spreadsheet file, printing the file, and exiting the package. Both sequences involved the same script but use different tracks of that script,
A person who is experienced in playing computer games, but unfamiliar with personal computers, may find that script actions used to play a game, such as pushing switches and using arrow keys, can also be used in oper- ating a computer. When individuals confront an unfamiliar task and draw upon salient action components from other scripts, they are engaged in strategy processing. By bringing together memory components into a hehav- ior chain, strategy processing may lead to the development of a script or a script track (Poole. Gray, & Gioia, 1990).
Script and strategy processes for understanding managerial issues have been examined in conceptual (e.g., Ashforth & Fried, 1988; Gioia & Poole, 1984; Lord & Kernan, 1987) and laboratory analyses (e.g., Foti & Lord, 1987; Wofford & Goodwin, 1990). These processes have rarely heen studied in field settings. However, although she did not interpret her data in cognitive processes terms, Gersick's (1988, 1989) field studies on hahitual routines in task-performing groups suggest that group members have script structures that cause different groups to exhibit similar patterns of behavior.
The type of cognitive process a person uses depends on the knowledge structure in memory and on situational demands. Individual characteristics affect the number and complexity of scripts in memory as well as their accessibility. As employees handle problems that occur frequently, they acquire more script tracks. If individuals are cognitively complex, they try out and store in memory more approaches for handling their problems than do noncomplex individuals.
Ashforth and Fried (1988) suggested that people develop scripts and their tracks through a series of more or less structured experiences. A job problem that occurs frequently is more likely to elicit script track process- ing, whereas one that occurs infrequently is more likely to elicit strategy processing. Experienced employees should have more script tracks and more accessible tracks than novices (Lurigio & Carroll. 1985; McKeithen, Reitman. Rueter, & Hirtle, 1981). Thus, we expected the length of an em- ployee's job tenure to he positively related to the numher of script tracks in memory. For the present study, an individual's number of script tracks included all the tracks in the employee's various scripts for handling a prohlem.
Hypothesis 1: The frequency of the occurrence of job problems is positively related to the number of script trocks held in memory/or handling the probJems.
Hypothesis 2; The frequency of the occurrence of job problems is related to the type of cognitive structures in- dividuals access to handle them: For frequently occurring job problems, scripf track structures are accessed more
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often than strategy structures, whereas for rarely occur- ring job problems, strategy structures are accessed more often than script track structures.
Hypothesis 3; Employees with Jonger job tenure hold more script tracks in memory than those with shorter tenure.
Using control theory (Carver & Scheier, 1982) as a basis. Lord and Ker- nan (1987) argued that script processes adapt to feedback. Wofford and Goodwin (1990) found that feedback concerning discrepancies between goals and performance results in more new script track and strategy pro- cesses than does feedback tbat does not concern discrepancies. Bartunek and Moch contended that a manager can only change a schema structure by creating "crises" strong enough to "unfreeze" the schema [1987: 495). Tbeir results suggest that a major goal-performance discrepancy [for instance, utter failure to achieve a goal) is necessary to engage strategy processes. A minor goal-performance discrepancy (imperfect performance) engages a previously used script track.
Hypothesis 4: Goal-perform a nee discrepancy is related to the type of cognitive structures used; Previously accessed script track structures are accessed more frequently with minor goal-performance discrepancies, ivhereas new script track structures and strategy structures are ac- cessed more frequently with ma/or goal-performance dis- crepancies.
Little research has dealt with the accessibility of script tracks (Graesser, Gordon, & Sawyer, 1979). Hypothesis 5 is consistent with the "availability heuristic," which states that the more accessible an instance is in memory, the more likely it is to occur (Kahneman & Tversky, 1987). Hypothesis 5 predicts that the more accessible a script track, the more likely it is to be chosen for use in handling a job problem. The hypothesis holds that people use a "satisficing" principle to select script tracks for implementation. They select the most accessible track rather than making a rational choice from the entire set of tracks in their memories.
Hypothesis 5: The accessibility of script tracks is related to the choice of tracks to handle joh problems: The script track that is most accessible in an employee's memory is Ihe one most likely to be selected for handling a job prob- lem.
Gognitive complexity represents the degree to which individuals apply multiple perspectives when perceiving and evaluating stimuli within a par- ticular domain (Goodwin, 1991). Gognitive complexity affects the develop- ment of script tracks for a specific job situation. An individual wbo is high on the cognitive complexity trait is likely to try more approaches and to
184 Academy of Manogement /ournai February
gather more information than those low on the trait (Streufert & Nogami, 1989). These activities should lead to the development of more tracks. Lundy and Berkowitz (1957) found that more cognitively complex individ- uals possessed more functional constructs in memory.
Hypothesis 6: Cognitive complexity is positively related (0 the number of script tracks available in memory.
Employees with many script tracks can draw on a wide array of poten- tial responses for handling problems. Script tracks are a cognitive resource that is expected to increase promotability. Leong, Busch, and John (1989] studied the relationship between the effectiveness of insurance sales agents number of actions in their scripts. They found that agents with more actions were more effective than those with fewer actions per script. Evaluating promotability involves a rating of an employee's potential for performing a higher-level position. Promotability ratings concern not only current effec- tiveness, but also employees' adaptability and likely application of cognitive resources to the position.
Hypothesis 7: The number of script tracks an individual has for handling job problems is positively reJated to his or her promotability.
Goodman (1968) found that cognitive complexity is directly correlated with advancement and job level. However, Goodwin (1991) and Streufert and Nogami (1989) concluded that in complex task settings, the relationship of cognitive complexity with effectiveness and advancement to higher-level positions is stronger than it is in structured or simple task settings.
Hypothesis 8: Joh complexity moderates the relationship between an individual's cognitive compJexity and pro- motabiiity.
METHODS
Subjects and Setting
The directors of personnel at two companies requested the participation of employees across all departments and levels, from hourly workers to vice presidents. The overall participation rate was 81 percent, which provided a total of 74 subjects. One company was a manufacturer of specialized aircraft parts. Subjects in this company included 39 men and 8 women, 47 percent of whom were in the managerial ranks. Their mean age was 49 years, their mean tenure in their current positions was 9.6 years, and 47 percent had education beyond a high school level. The organization had a mechanistic structure with a high degrees of formalization, documentation, and govern- ment surveillance. The other organization was a wholesale and retail office supply company. Subjects in this company were 8 men and 19 women, 15 percent of whom were in the managerial ranks. Their mean age was 33.5,
1994 Wofford 185
their mean tenure was 4.1 years, and 37 percent had education heyond the high school level. This company was organic and had a fast rate of growth and change.
Procedures and Measures
Subjects completed a structured interview, a post-interview question- naire, a demographic survey, and the Role Construct Repertory Test (Brook, 1981), an instrument that measures cognitive complexity. Two researchers conducted the interviews and administered questionnaires.
Interviews with employees. Interviews were structured to elicit verbal protocols relating to job problems (1) that occurred frequently or very rarely (within subjects) and (2) that involved a minor goal-performance or a major goal-performance discrepancy (between subjects). The order in which the levels of job problem frequency were presented was determined randomly. Each respondent named as many approaches as he or she could think of for handling a problem that occurred frequently and one that occurred rarely (only once every two or three years). These protocols, which were tape recorded, allowed the assessment of the use of script tracks and strategy structures by the employees. The approach employees stated first was con- sidered to be their most accessible script track. Next, subjects identified the approach they were most likely to use. Half the subjects (randomly chosen) were asked what they would do if this approach were an "utter failure" (major goal-performance discrepancy), and half were asked what they would do if this approach "was not to perfection" (minor goal-performance dis- crepancy).
Coding verhal protocols. After instruction in the procedures for coding verbal protocols, two naive coders marked on the transcribed protocol sheets the numher of script track and strategy structures for each employee.^ When the coders obtained different values for a protocol, I selected the value to be used. I assessed interrater reliability by correlating the code values of the two coders. The low interrater reliability for cognitive processing for frequently occurring problems (.51, shown in Table 1) reduces confidence in the ro- bustness of results involving this construct. Several studies have shown the use of simultaneous verbal protocols for assessing cognitive processes to be valid (Ericsson & Simon, 1980; Russo. Johnson. & Stephens, 1989). Effect coding (Kirk. 1982: 186) was used to identify the structures that the employ- ees would access following the goal-performance discrepancy prompt: a previously accessed script track was coded - 1 , a new script track 0, and a strategy track, 1. A new script track was operationally defined as a track for handling a goal-performance discrepancy not included in an employee's original list.
Survey and test. Immediately following the interview, employees com- pleted a demographic survey and the Role Construct Repertory Test. The
The definitions and examples used for coding can be obtained from the author.
186 Academy of Management Journal February
demographic survey assessed each employee's age, job level, and tenure in the present job.
Supervisor questionnaires. At the end of the session, employees were informed of the purpose of the study and the questionnaires. The immediate supervisor completed and returned a questionnaire describing the complex- ity of the job one level ahove the employee's current job and evaluated her or his promotability to that job. An 85 percent return rate was obtained. A third-party coordinator assured confidentiality.
Supervisors completed a nine-item, seven-point scale that assessed job complexity (e.g., "To what degree is a person required to combine a lot of different information in order to perform this higher level job?") and a two- item, seven-point scale evaluating promotability ["What is the likelihood that the employee will be promoted to this higher level job in the next ten years?" and "What is the likelihood that the employee will be promoted to this higher level job sometime during his/her career?"). The promotability instrument also included a set of six 7-point scale items for rating employ- ees' work skills, including decision making, creativity, and planning and organizing. These items were intended to direct the supervisor's attention to these skills as they rated promotability.
RESULTS
Table 1 presents means, standard deviations, reliabilities, and correla- tions for the research variables for the combined data of both companies. A repeated-measures multivariate analysis of variance (MANOVA) with square root transformations was used to analyze the relationships of the number of script tracks witb (1) the frequency of the occurrence of job problems (within subject) and (2) the order of presentation of ieveis of frequency. The fre- quency of the occurrence of job problems has a significant main effect on the number of script tracks in the direction predicted by Hypothesis 1 (F^ sg = 76.8, p < .01). The effects of order of presentation are not statistically significant [F^r^^ = .16, p > .05). Table 2 shows the results of this analysis.
A Wilcoxon sign-rank test was used to examine the relationship of the frequency of the occurrence of job problems with the engagement of script tracks and strategy structures for the combined data. Based on the data coded from the verbal protocols, the results indicate that the frequency of a job problem's occurrence is not related to the types of cognitive structures re- trieved, whether previously accessed script tracks, new script tracks, or strategy structures [Z = 0.0, N = 44, p > .05). Thus, results do not support Hypothesis 2. Low interrater reliability for the cognitive processes measures, particularly for frequently occurring job problems, reduces confidence in these results.
The relationship of job tenure with the number of script tracks is not significant for frequently occurring job problems (rtjg ^ .01, p > .05) or for rarely occurring job problems (rga = - .07, p > .05]. Thus Hypothesis 3 was not supported.
1994 Wofford 187
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188 Academy of Monagement /ournal February
TABLE 2 Results of MANOVA
Variables
Frequency of occurrence Order of presentation
df 1 1
Means
Frequent
1.3
Rare
1.0
F
76.8** 0.2
**p < .01
The del technique (Drazin & Kazanjian, 1993) was used to examine Hypothesis 4 for the two levels of goal-performance discrepancy, minor and major, and the three levels of cognitive structures. The del technique permits an analysis of the fit of research data with an a priori prediction of the distribution of frequencies of a cross-classification matrix. Matrix cells for which a researcher expects frequencies to he 0, or error cells, are assigned a weight of 1. Cells for which the frequencies are expected to be greater than 0—predicted cells—are assigned weights of 0. Weights between 0 and 1 are used for indicating a researcher's degree of confidence that the frequency of a cell is greater than 0. Hypothesis 4 predicted that the minor goal- performance discrepancy row of the two-hy-three matrix would have an empty cell for strategies (W :̂, = 1), and the frequency for new script tracks would be slightly greater than 0 [W^z = -5)- The cell for the previously accessed script tracks of this row and each of the three cells for the major goal-performatice discrepaticies row were expected to have frequencies greater than 0 (W^. W^j, W22, and W^^ = 0). Using these weights, the del technique results support Hypothesis 4 for hoth frequently occurring job prohlems [V = .62. Z - 2.22, n = 72. p < .05; x̂ ^ 6.35, df = 2. p < .05) and rarely occurring prohlems [V = .65, Z = 3.28, n = 71, p < .01; x^ = 6.35, df = 2, p < .05). x̂ values are provided for comparison with V values.
Chi-square tests were used to examine the prediction of Hypothesis 5 that the most accessible script track, the one each subject identified first, is the most likely to he identified as the track that the employee would actually use to handle the joh problem. The chi-square analysis provided strong support for this hypothesis for both the frequently occurring job problems (X̂ = 23.03, df = 1, p < .001) and the rarely occurring job problems (x^ = 23.84, d/ = 1, p < .001). Even though employees mentioned up to seven tracks, 76 percent of the tracks that were the most accessible in their mem- ories were also the ones most likely to he used.
Cognitive complexity is litiearly correlated with the number of script tracks for both the frequently occurring job prohlems [r̂ ^ = .19. p < .05) and the rarely occurring job prohlems [r-^^ = .23, p < .05), supporting Hypo- thesis 6. Promotability is also correlated with the number of script tracks for rarely occurring joh prohlems (rĝ = .43, p < .01), but not for frequently occurring joh problems [rga = .01. p > .05); thus. Hypothesis 7 is partially
1994 Wofford 189
supported. Using a moderated regression analysis with mean transforma- tions, 1 found job complexity to moderate the relationship of cognitive com- plexity and promotability ratings, supporting Hypothesis 8. Table 3 shows the results of this analysis.
Statistical analyses that could be meaningfully conducted for the indi- vidual company data, testing Hypotheses 2, 3, 5, 6, 7. and 8, yielded results that are consistent with those for the combined data.
DISCUSSION
The results of the present researcb provide meaningful insights into the nature of job-related cognitive processes in two field settings. Given tbat the two companies studied were greatly different in terms of employee and organizational demographics, the consistency of tbe results obtained across company samples suggests that the results are robust.
Situational cbaracteristics and individual characteristics, witb the ex- ception of job tenure, are related to the use of cognitive processes in handling job problems. The number of years on a job does not account for the number of script tracks or the type of cognitive structure accessed. Future research should examine employee's early training and experience on specific job problems ratber than job tenure.
The frequency of job problems' occurrence was found to be related to tbe number of script tracks accessed (Hypothesis 1). but not to the type of cog- nitive structure (Hypothesis 2). The lack of support for Hypothesis 2 may be due to tbe lack of interrater reliability for the verbal protocol assessments. The verbal protocol measurement of cognitive processes may be more reli- able and valid for laboratory researcb than for field researcb. Additional field research using different procedures to measure cognitive structures is needed to examine Hypothesis 2.
Tbe data indicate that more cognitively complex employees access more script tracks. The results also confirm the relationship of the accessibility of script tracks witb their use. Consistent with the availability heuristic and with the satisficing principle, the results indicate that tbe script track tbat is most available in an employee's memory is tbe one most likely to be selected for handling a job problem. Because tbis is not a causal analysis, I cannot
TABLE 3 Results of Moderated Regression Analysis
Variables
Cognitive complexity Job complexity Cognitive complexity by job complexity
.14 -.25
.48
.03
.03
.17 .00 .14
1.51 0.79 3.28
p < .05
190 Academy of Management Journal February
discount the possibility tbat the results occur because the frequent use of a script makes it more accessible.
The results provide insights into how employees handle crises in their jobs. For minor goal-performance discrepancies, employees appear to use the more accessible script tracks. However, when they confront a major discrepancy, they adapt by using strategy structures or less readily accessi- ble script tracks. The research confirms Bartunek and Moch's (1987) asser- tion that managers may use crises to unfreeze an accepted script track.
Managers may enhance the process of change by making employees aware of a goal-performance discrepancy and encouraging them to develop and test new strategies. Task force groups or problem-solving meetings might be used to develop and to encourage the implementation of changes. An understanding of the cognitive processes that are basic to the functioning of individuals in their jobs may be helpful in designing more effective train- ing programs that will improve the development and accessibility of script tracks for the performance of jobs. First, a manager should identify action sequences tbat are effective for handling job problems and the tracks that are effective for specific conditions; then, the most effective training method for encoding scripts and script tracks into memory should be designed. The number of vicarious rehearsals or enactments of the scripted behaviors re- quired for learning would vary with the complexity and difficulty of the behaviors. Gioia and Manz (1985) noted that traditional training based on vicarious learning and modeling have emphasized the performance of de- sired bebaviors. They suggested that employees should be trained to think about a model's behaviors in terms of scripted sequences. Training will be more effective when employees are taught to engage in interpretation, sense- making, and understanding processes. The understanding of employee cog- nitive processes may also aid managers in other areas such as task and job design, motivation, job satisfaction, leadership, and communication. The results also suggest that managers should attempt to hire or promote cogni- tively complex employees for complex jobs and for jobs that require the use of a large number of script tracks.
This researcb is an initial attempt to examine job-related script tracks and strategy processes in an organizational setting. As such, it presents new methodological approaches and suggests new avenues for future research. Additional research is required to address some of the issues emerging from the present study. Is there a causal link between the accessibility of scripts and script tracks and the frequency of their use? Is the number of script tracks held in memory for a job problem related only to the frequency with which the specific problem has been experienced and the complexity of the job problem, or is it also related to such other factors as the pattern of reinforcement that is received in using script tracks and the importance of the problem? What are the other organizational feedback and informational input variables that affect the use of strategy processes? Additional research on the antecedents and consequences of cognitive processes in organizations is needed to deal with these issues.
1994 Wofford 191
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J.C. Wofford (Ph.D., Baylor University) is a professor of management at the University of Texas at Arlington. His current research interests include cognitive processes, lead- ership, and goal setting.