This chapter introduces the background, problem statement, research purpose, research questions, definition of terms and significance of the study. The background describes the imperative of research on the current circumstance of the securities industry and securities specialists in Taiwan. The problem lying in the political skill used by securities specialists and limitations of the study were both illuminated. Furthermore, the research purpose and questions were presented. Lastly, the significance of this study was discussed.
Background of the Study
With the advent of intense competition in the securities market in Taiwan, the securities industry has faced a transition toward diverse business scopes. To date, the scopes of business for securities firms are comprised of stocks, financial derivatives, futures and various securities.
Even if the scopes of securities firms are expended, much data has demonstrated a shrinking market in the securities industry in Taiwan.
The number of securities firms in Taiwan had decreased from 384 in 1990 to 122 in August 2012 by merger and acquisition (Chen & Wang, 2012). Furthermore, based on the report of the Taiwan Stock Exchange Corporation (TSEC) in 2014, the total number of transactions had declined from 244,784,746 in 2010 to 184,235,272 in 2013. On the other hand, the number of securities specialists in Taiwan has continually been reduced as well. According to the TSEC, the number of securities specialists was declined from 39,672 in March 2011 to 36,663 in March 2014. The decline in the total value of annual securities transactions and the number of securities specialists indicated a competitive environment in the securities industry in Taiwan.
In order to survive in the competitive environment, securities specialists are forced to keep high performance. One of the major measuring standards for securities specialists is
transactions value in the securities market. In general, securities specialists are evaluated by their market share, so securities specialists need to have high market share to demonstrate competitiveness. The Taiwan Ministry of Labor (TMOL) in 2013 noted that the securities specialist in Taiwan is in an extremely challengeable and competitive position, since they have performance requirements and need to proactively develop their clients. In response to these arduous circumstances, securities specialists in Taiwan have competed intensely in order to avoid being released.
Securities specialists in Taiwan might experience anxiety that is an aversive emotional and motivational state resulting from experiencing threatening circumstances (Eysenck, Derakshan, Santos, & Calvo, 2007). For instance, most of the annual salary of securities specialists is from a performance bonus, which means their income can easily fluctuate. In Taiwan, the prevalence of probable common mental disorders, such as anxiety disorders, has doubled from 11.5% in 1990 to 23.8% in 2010, and one of the reasons was that the employment market has continued to decline since the early 1990s (Fu, Lee, Gunnell, Lee, & Cheng, 2013).
In addition, economic instability and income inequality might make individuals easier to get anxiety disorders (Patel & Kleinman, 2003).
From a perspective of personality traits on anxiety, individual differences to feel anxious are referred to trait anxiety that is individual differences in anxiety-proneness to perceive stimulus situations or circumstances as threatening (Spielberger, 1966, 1972, 1985).
Individuals high in trait anxiety tend to have insufficient confidence in themselves, and undervalue their job performance relative to individuals low in trait anxiety (Mughal, Walsh, &
Wilding, 1996). However, in order to achieve goals, individuals high in trait anxiety tend to develop strategies to improve their performance (Eysenck & Calvo, 1992). Securities specialists need to utilize strategies to astutely observe others and to inspire trust in others, since securities specialists always interact with clients who are from different background and social status. Indeed, according to the TMOL (2013), individual who is good at interacting with
others at work is more suitable for the position of securities specialist.
Statement of the Problem
A socioanalytic perspective on job performance suggested that most of the jobs in an organization are associated with social interactions (Hogan & Shelton, 1998). During social interactions, everyone is motivated to get ahead and to get along, but levels of effort to get ahead and to get along are evaluated by others. In order to translate motivation into achievement, individuals need to utilize a social competency that can activate personality traits.
Political skill, one of the social competencies, specifically focuses on behaviors in the workplace (Perrewé, Ferris, Frink, & Anthony, 2000). Since politic inherently exists in and around organizations (Mintzberg, 1983), political skill is an important social competency for job success (Perrewé et al., 2000). Politically skilled individuals who combine social awareness with the ability to adjust behavior to changing demands at work effectively influence manifestation of others, inspire trust in others, and make others have confidence in them (Ferris et al., 2005, 2007).
Previous studies found that political skill activated personality traits that reflect the getting ahead motive (i.e., extraversion) and the getting along motive (i.e., agreeableness) in the prediction of job performance in the socioanalytic perspective (Blickle et al., 2008； Blickle, Wendel, & Ferris., 2010； Meurs, Perrewé, & Ferris, 2011). Blickle et al., (2008) found that political skill moderated the relationship between agreeableness and job performance ratings.
Blickle et al., (2010) reported that political skill moderated the relationship between extraversion and job performance measured by actual sales. Finally, Meurs et al., (2011) found that political skill moderated the relationship between trait sincerity and supervisor-rated performance. In short, three empirical studies all reported that political skill facilitated the relationship between personality traits and job performance.
flawed personality traits (Hogan & Shelton, 1998). Anxiety can be referred to as trait anxiety, which is a personality trait. Individuals high in trait anxiety tend to lack self-confidence and self-esteem, and to easily perceive situation as threatening (Spielberger, 1966, 1972, 1985).
Some empirical studies investigated the relationship between trait anxiety and cognitive performance (Eysenck, 1985； Eysenck & Calvo, 1992； Eysenck, Derakshan, Santos, &
Calvo, 2007； Owens, Stevenson, Hadwin, & Norgate, 2012). Instead, little research examined the relationship between trait anxiety and job performance. A study found that individuals high in trait anxiety had higher job performance in terms of actual sales (Mughal et al., 1996). In order to have high performance in sales jobs, individuals need to get along well with customers, to make a good impression to customers, to inspire trust in customers, and to influence customers in effective ways (Nerdinger, as cited in Blickle et al., 2012).
Although anxious individuals may be not good at interacting with others (Hogan &
Shelton, 1998), individuals high in trait anxiety, who perceive situations as involving more failure, tend to pursue higher earnings as an insurance against the expected trouble in the future (Mughal et al., 1996). Apart from the motivation of anxious individuals, an intervention that directs individuals high in trait anxiety to adapt to the environment might lead them to work more effectively (Mughal et al., 1996). However, previous research did not clearly indicate what kind of intervention that makes individuals to adapt to the environment can have influence on the relationship between trait anxiety and performance in sales jobs.
Research Question
In accordance with the problem statement, the research question was:
What is the role of political skill on the relationship between trait anxiety and job performance?
Research Purpose
Individuals possessing political skill astutely interpret situations of social interactions, have a powerful interpersonal influence, inspire trust and confidence in others, and easily build
social networks among people (Ferris et al., 2005, 2007). In the socioanalytic perspective on job performance proposed by Hogan and Shelton (1998), social skill plays a moderating role on the relationship between personality and job performance, since it can transfer individual motivation into achievement. Furthermore, previous research found that political skill can also play a moderating role between personality traits and job performance in the socioanalytic perspective (Blickle et al., 2008； Blickle, et al. 2010；Meurs, et al., 2011). Thus, the purpose of this study is to investigate the moderating role of political skill on the relationship between trait anxiety and job performance based on the socioanalytic perspective.
Definition of Terms Trait Anxiety
Researchers have been identified anxiety as two distinct factors, which were trait anxiety and state anxiety (Spielberger, 1966).Trait anxiety reflected "relatively stable individual differences in anxiety-proneness, that is, to differences between people in the tendency to perceive stressful situations as dangerous or threatening and respond to such situations with elevations in the intensity of their state anxiety (S-Anxiety) reaction" (Spielberger, Gorsuch, Lushene, Vagg & Jacobs, 1983, p.4).
Political Skill
Political skill was defined as "the ability to effectively understand others at work, and to use such knowledge to influence others to act in ways that enhance one's personal and/or organizational objectives" (Ferris et al., 2005, p. 127).
Job Performance
Job performance of this study refers to individual market share in the second one-half of 2014. Individual market share reflected the percentage of total stock transaction value in the securities.