Modeling employees' deviant behavior and employers' reactions: an interdisciplinary approach using principal-agent and prospect theories
In this paper we introduce mathematical models to address deviant behavior theory and practice. We examine only employee behaviors and employer reactions, but this framework is innovative and parsimonious, in that it models employer responses to employee’s behavioral deviance based on the dual application of principal-agent theory and prospect theory. After explaining the model, we examine boundary conditions and limitations and propose a series of applications to illustrate the potential usefulness of the model.
Berry, C.M., Ones, D.S. and Sackett, P.R. (2007) Interpersonal deviance, organizational deviance, and their common correlates: a review and meta-analysis, Journal of Applied Psychology, 92, 410-424.
Bodankin, M. and Tziner, A. (2009) Constructive deviance, destructive deviance and personality: how do they interrelate?, Amfiteatru Economic Journal, 11, 549-564.
Coffin, B. (2003) Breaking the silence on white collar crime, Risk Management, 50, 8.
Cohen-Charagh, Y. and Mueller, D. (2007) Does perceived unfairness exacerbate or mitigate interpersonal counterproductive work behaviors?, Journal of Psychology, 92, 666-680.
Currall,S.C., Towler, A.J., Judge,T.A. and Kohn,L. (2005) Pay satisfaction and organizational outcomes, Pesonnel Psychology, 58, 613-640.
Devers, C.E., Wiseman, R.M. and Holmes, R.M.J. (2007) The effects of endowment and loss aversion in managerial stock option valuation, Academy of Management Journal, 50, 191-208.
Dilchert, S., Ones, D.R.D. and Rostow, J.D. (2007) Cognitive ability predicts objectively measured counterproductive work behaviors, Journal of Applied Psychology, 92, 616-627.
Fama, E.F. (1980) Agency problems and the theory of the firm, Journal of Political Economy, 88(2), 288-307.
Fine, S. (2012) Estimating the economic impact of personnel selection tools on counterproductive work behaviors, Economics and Business Letters, 1(4), 1-9.
Griffin, R.W., O'Leary, A.M. and Collins, J. (1998) Dysfunctional work behaviors in organizations, in Cooper, C.L. and Rousseau, D.M. (eds.) Trends in Organizational Behavior, 65-82, New York, NY: John Wiley & Sons.
Jensen, M.C. and Meckling W.H. (1976) Theory of the firm: managerial behavior, agency costs and ownership structure, Journal of Financial Economics, 3, 305-360.
Kahneman, D. and Tversky, A. (1979) Prospect theory: an analysis of decision under risk, Econometrica, 47, 263-291.
O'Leary-Kelly, A.M., Griffin, R.W. and Glew, D.J. (1996) Organization-motivated aggression: a research framework, Academy of Management Review, 21, 225-253.
Robinson, S.L. and Bennett, R.B. (1995) A typology of deviant workplace behaviors: a multi-dimensional scaling study, Academy of Management Journal, 38, 555-572.
Tversky, A. and Kahneman, D. (1992) Advances in prospect theory: cumulative representation of uncertainty, Journal of Risk Uncertainty, 5, 297-323.
Vardi, Y. and Weitz. E. (2002) Using reasoned action theory to predict organizational misbehavior, Psychological Reports, 91, 1027-1040.
Vardi, Y. and Weitz. E. (2004) Misbehavior in organizations: theory, research and management, Mahwah, NJ: LEA, Publishers.
Vardi, Y. and Wiener, Y. (1996) Misbehavior in organizations: a motivational framework, Organization Science, 7, 151-165.
How to Cite
The works published in this journal are subject to the following terms:
1. Oviedo University Press (the publisher) retains the property rights (copyright) of published works, and encourages and enables the reuse of the same under the license specified in paragraph 2.
© Ediuno. Ediciones de la Universidad de Oviedo / Oviedo University Press
2. The works are published in the online edition of the journal under a Creative Commons Attribution-Non Commercial-Non Derives 3.0 Spain (legal text). You can copy, use, distribute, transmit and publicly display, provided that: i) you cite the author and the original source of publication (journal, publisher and URL of the work), ii) they are not used for commercial purposes, iii) mentions the existence and specifications of this license.
3. Conditions of self-archiving. The author can archive the post-print version of the article (publisher’s version) on the author’s personal website and/or on the web of the institution where he belong, including a link to the page of the journal and putting the way of citation of the work. Economics and Business Letters and its URL https://reunido.uniovi.es/index.php/EBL/index are the only authorized source for correctly giving the reference of the publisher’s version in every mention of the article.