nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2016‒01‒18
eight papers chosen by
Patrick Kampkötter
Universität zu Köln

  1. Do the Flexible Employment Arrangements Increase Job Satisfaction and the Loyalty of the Employees? An Evidence from Great Britain. By Giovanis, Eleftherios
  2. Employee Turnover in MFIs: Reasons & Remedies By Sk. Mahmudul Alam, Mahmud
  3. Managers and Productivity Differences By Nezih Guner; Andrii Parkhomenko; Gustavo Ventura
  5. Does self-employment really raise job satisfaction? Adaptation and anticipation effects on self-employment and general job changes By Dominik Hanglberger; Joachim Merz
  6. Flexible Employment Arrangements and Workplace Performance By Giovanis, Eleftherios
  7. Optimal Monetary Provisions and Risk Aversion in Plural Form Franchise Network. A Model of Incentives with Heterogeneous Agents By Muriel Fadairo; Cyntia Lanchimba; Miguel Yangari
  8. Challenges of Change: An Experiment Training Women to Manage in the Bangladeshi Garment Sector By Macchiavello, Rocco; Menzel, Andreas; Rabbani, Atonu; Woodruff, Christopher

  1. By: Giovanis, Eleftherios
    Abstract: This study explores the relationship between job satisfaction, employee loyalty and various types of flexible employment arrangements using the Workplace Employee Relations Survey (WERS) in 2004 and 2011. A propensity score matching and fixed effects regressions are applied. Finally, Bayesian Networks (BN) and Directed Acyclic Graphs (DAGs) are employed in order to confirm the causality between employment types explored and the outcomes of interest. Furthermore, an instrumental variables (IV) approach based on BN framework is proposed and applied in this study. The results support that there is a positive causal effect from these employment arrangements on job satisfaction and employee loyalty.
    Keywords: Bayesian Networks; Directed Acyclic Graphs; Employee Loyalty; Employment Arrangements; Job Satisfaction; Teleworking; Workplace Employment Relations Survey
    JEL: C11 J28 J53 J6 J63 J81
    Date: 2015–11
  2. By: Sk. Mahmudul Alam, Mahmud
    Abstract: At present day’s employee turnover is one of the challenging issues in microfinance sector of Bangladesh. Excessive turnover is not only pricey, but it can create a bad reputation in the MFI sector and among the job seekers. Excessive turnover may be harmful to an MFI's productivity if experienced and efficient employees are often departing and the employee encompasses a high percentage of beginners. The impact of turnover has received substantial attention by the senior management and human resources professionals of the sector. So it is time demand to know the reasons those influence employee turnover and also know the remedies how we can reduce the rate of employee turnover rate. So an attempt was taken by this study to know the reasons and remedies of employee turnover in microfinance sector of Bangladesh. The study found that the average turnover rate of permanent employees in nine reputed MFIs in 2012, 2013 and 2014 were respectively 13.79%, 12.74% and 10.96% and the average turnover rate of contractual employees in seven MFIs in 2012, 2013 and 2014 were respectively 25.43%, 21.92% and 15.93%. The major reasons for employee turnover are: salary and other financial benefit are comparatively less than other MFIs; terminated for corruption or fraudulent; terminated for violation of service rules; no overtime financial benefit; excessive working load; transfer to distant district from home district; for family reason; not having promotion after being deserve it etc. The key remedies for reducing employee turnover are: should fix up a competitive salary and other financial benefit harmonizing with the other competitor MFIs; promotion and salary increment policy should be transparent; should have provision of proper reward for good work and proper punishment for ill work in MFIs; should have financial benefit for overtime work; having automation and online network facilities in all branches; to provide necessary job related training to a new recruited employee; having facility of leave encashment; having provision of financial support or loan for employee at the time of his emergency, transfer to nearest district from home district etc.
    Keywords: Employee Turnover, MFIs, Bangladesh, Turnover Rate, Reasons, Remedies
    JEL: G21 J28 M52
    Date: 2015–10–31
  3. By: Nezih Guner; Andrii Parkhomenko; Gustavo Ventura
    Abstract: We document that for a group of high-income countries (i) mean earnings of managers tend to grow faster than for non managers over the life cycle; (ii) the earnings growth of managers relative to non managers over the life cycle is positively correlated with output per worker. We interpret this evidence through the lens of an equilibrium life-cycle, span-of-control model where managers invest in their skills. We parameterize this model with U.S. observations on managerial earnings, the size-distribution of plants and macroeconomic aggregates. We then quantify the relative importance of exogenous productivity differences, and the size-dependent distortions emphasized in the misallocation literature. Our findings indicate that such distortions are critical to generate the observed differences in the growth of relative managerial earnings across countries. Thus, observations on the relative earnings growth of managers become natural targets to discipline the level of distortions. Distortions that halve the growth of relative managerial earnings (a move from the U.S. to Italy in our data), lead to a reduction in managerial quality of 27% and to a reduction in output of about 7% – more than half of the observed gap between the U.S. and Italy. We find that cross-country variation in distortions accounts for about 42% of the cross-country variation in output per worker gap with the U.S.
    Keywords: managers, management practices, distortions, size, skill investments, productivity differences
    JEL: E23 E24 J24 M11 O43 O47
    Date: 2015–12
  4. By: Vidhu Mohan; Dharna Sharma
    Abstract: The purpose of the present study was to examine the relationship of organizational climate with work motivation and organizational commitment of employees. The sample consisted of 313 middle and high rank managers from different private sector organizations (manufacturing and IT service) located in Punjab, Delhi, Gurgaon and Noida. Organizational climate measure (Patterson et al., 2005), Work motivation questionnaire (Dr. K.G.Aggarwal, 1988) and Organizational commitment questionnaire (Meyer and Allen, 1993) were used to measure organizational climate, work motivation and organizational commitment respectively. It was hypothesized that organizational climate (human relation model and open system model) would be positively associated with work motivation and organizational commitment. Both Pearson product moment correlation coefficient and multiple regression analysis were used to analyze the data. The results of correlation revealed that there is a positive relationship between organizational climate (human relation model and open system model) and work motivation & organizational commitment. Multiple regression also proved that organizational climate (human relation model and open system model) plays an important role in work motivation and organizational commitment. Implications of the findings have been discussed. Key words: Organizational climate, work motivation, organizational commitment, employees
    Date: 2015–12
  5. By: Dominik Hanglberger (Leuphana University L\"{u}neburg, Department of Economics, Research Institute on Professions); Joachim Merz (Leuphana University L\"{u}neburg, Department of Economics, Research Institute on Professions)
    Abstract: Empirical analyses using cross-sectional and panel data found significantly higher levels of job satisfaction for the self-employed than for employees. We argue that by neglecting anticipation and adaptation effects estimates in previous studies might be misleading. To test this, we specify models accounting for anticipation and adaptation to self-employment and general job changes. In contrast to recent literature we find no specific long-term effect of self-employment on job satisfaction. Accounting for anticipation and adaptation to job changes in general, which includes changes between employee jobs, reduces the effect of self-employment on job satisfaction by two-thirds. When controlling for anticipation and adaptation to job changes, we find a positive anticipation effect of self-employment and a positive effect of self-employment on job satisfaction in the first years of self-employment. After three years, adaptation eliminates the higher satisfaction of being self-employed. According to our results, previous studies overestimate the positive long-term effects of self-employment on job satisfaction.
    Keywords: job satisfaction, self-employment, hedonic treadmill model, adaptation, anticipation, fixed effects panel estimation, German Socio-Economic Panel (SOEP).
    JEL: J23 J28 J81
    Date: 2015–12
  6. By: Giovanis, Eleftherios
    Abstract: There is an increasing concern on the quality of jobs and productivity that is witnessed in the flexible employment arrangements. However, the effects of the employment flexible types on workplace performance has not been explored in Britain. In this study the relationship between two employment arrangements and the workplace performance is examined. More specifically, teleworking and compress hours are two main employment types examined using the Workplace Employee Relations Survey (WERS) in years 2004 and 2011. The workplace performance is measured by the financial performance and labour productivity. A positive relationship between these two types of flexible employment arrangements and workplace performance is presented. This can have various profound policy implications for employees, employers and the society overall. However, the positive association holds for employees who have high influence on their job, while it becomes negative in the case of teleworkers who have low influence.
    Keywords: Financial Performance, Labour Productivity, Propensity Score, Teleworking, Workplace Employment Relations Survey
    JEL: D24 J20 J28 J6 M54
    Date: 2015–11
  7. By: Muriel Fadairo (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Cyntia Lanchimba (National Polytechnic School, Quito, Ecuador; Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Miguel Yangari (National Polytechnic School, Quito, Ecuador)
    Abstract: Existing literature on franchising has extensively studied the presence of plural form distribution networks, where two types of vertical relationships - integration versus franchising - co-exist. However, despite the importance of monetary provisions in franchise contracts, their definition in the case of plural form networks had not been addressed. In this paper, we focus more precisely on the “share parameters” in integrated (company-owned retail outlet) and decentralized (franchised outlet) vertical contracts, respectively the commission rate and the royalty rate. We develop an agency model of payment mechanism in a two-sided moral hazard context, with one principal and two heterogenous agents distinguished by different levels of risk aversion. We define the optimal monetary provisions, and demonstrate that even in the case of segmented markets, with no correlation between demand shocks, the two rates (commission rate, royalty rate) are negatively interrelated.
    Keywords: Franchising, dual distribution, royalty rate, commission rate, moral hazard
    JEL: L14 D82
    Date: 2016
  8. By: Macchiavello, Rocco (University of Warwick); Menzel, Andreas (University of Warwick); Rabbani, Atonu (University of Dhaka); Woodruff, Christopher (University of Warwick)
    Abstract: Large private firms are still relatively rare in low-income countries, and we know little about how entry-level managers in these firms are selected. We examine a context in which nearly 80 percent of production line workers are female, but 95 percent of supervisors are male. We evaluate the effectiveness of female supervisors by implementing a training program for selected production line workers. Prior to the training, we find that workers at all level of the factory believe males are more effective supervisors than females. Careful skills diagnostics indicate that those perceptions do not always match reality. When the trainees are deployed in supervisory roles, production line workers initially judge females to be significantly less effective, and there is some evidence that the lines on which they work underperform. But after around four months of exposure, both perceptions and performance of female supervisors catch up to those of males. We document evidence that the exposure to female supervisors changes the expectations of male production workers with regard to promotion and expected tenure in the factory.
    Date: 2015

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