nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2016‒06‒09
seven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Management as a Technology? By Nicholas Bloom; Raffaella Sadun; John Van Reenen
  2. Relative peer quality and firm performance By Francis, Bill; Hasan, Iftekhar; Mani, Sureshbabu; Ye, Pengfei
  3. Motivating Effort In Contributing to Public Goods Inside Organizations: Field Experimental Evidence By Andrea Blasco; Olivia S. Jung; Karim R. Lakhani; Michael Menietti
  4. The Effect of Self Efficacy On Organizational Alienation: A Study on Apart Hotel Employees By Engin Üngüren; Serdar Arslan; YaÅŸar Yiğit Kaçmaz
  5. Job Performance: Structural Modelling the Relationship of Emotional Intelligence and Transformational Leadership By Nurul Hudani Md. Nawi; Redzuan Ma'rof; Balan Rathakrshnan; Rajiv Gandhi
  6. LATE for the Meeting: Gender, Peer Advising, and College Success By Ellis, Jimmy R.; Gershenson, Seth
  7. Designing contests between heterogeneous contestants: An experimental study of tie-breaks and bid-caps in all-pay auctions By Llorente-Saguer, Aniol; Sheremeta, Roman M.; Szech, Nora

  1. By: Nicholas Bloom; Raffaella Sadun; John Van Reenen
    Abstract: Are some management practices akin to a technology that can explain company and national productivity, or do they simply reflect contingent management styles? We collect data on core management practices from over 11,000 firms in 34 countries. We find large cross-country differences in the adoption of basic management practices, with the US having the highest size-weighted average management score. We present a formal model of \Management as a Technology", and structurally estimate it using panel data to recover parameters including the depreciation rate and adjustment costs of managerial capital (both found to be larger than for tangible non-managerial capital). Our model also predicts (i) a positive effect of management on firm performance; (ii) a positive relationship between product market competition and average management quality (part of which stems from the larger covariance between management with firm size as competition strengthens); and (iii) a rise (fall) in the level (dispersion) of management with firm age. We find strong empirical support for all of these predictions in our data. Finally, building on our model, we find that differences in management practices account for about 30% of cross-country total factor productivity differences.
    Keywords: management practices, productivity, competition
    JEL: L2 M2 O32 O33
    Date: 2016–06
  2. By: Francis, Bill; Hasan, Iftekhar; Mani, Sureshbabu; Ye, Pengfei
    Abstract: ​This study examines the performance impact of the relative quality of a CEO’s compensation peers (peers selected to determine a CEO’s overall compensation) and bonus peers (peers selected to determine a CEO’s relative-performance-based bonus). We use the fraction of peers with greater managerial ability scores (Demerjian, Lev, and McVay, 2012) than the reporting firm to measure this CEO’s relative peer quality (RPQ). We find that firms with higher RPQ tend to earn superior risk-adjusted stock returns and experience higher profitability growth compared with firms that have lower RPQ. These results cannot be fully explained by a CEO’s power, compensation level, intrinsic talent, nor by the board’s possible motivation to use peers to signal a firm’s prospect. Learning among peers and the increased incentive to work harder induced by the peer-based tournament, however, might contribute to RPQ’s positive performance effect. Preliminary evidence also shows that high RPQ is not associated with increased earnings management or increased risk-taking behaviors.
    Keywords: relative peer quality, firm performance, tournament, optimal contract
    JEL: G30
    Date: 2016–04–12
  3. By: Andrea Blasco; Olivia S. Jung; Karim R. Lakhani; Michael Menietti
    Abstract: We investigate the factors driving workers’ decisions to generate public goods inside an organization through a randomized solicitation of workplace improvement proposals in a medical center with 1200 employees. We find that pecuniary incentives, such as winning a prize, generate a threefold increase in participation compared to non-pecuniary incentives alone, such as prestige or recognition. Participation is also increased by a solicitation appealing to improving the workplace. However, emphasizing the patient mission of the organization led to countervailing effects on participation. Overall, these results are consistent with workers having multiple underlying motivations to contribute to public goods inside the organization consisting of a combination of pecuniary and altruistic incentives associated with the mission of the organization.
    JEL: D03 D23 H41
    Date: 2016–04
  4. By: Engin Üngüren (Alanya Alaaddin Keykubat University); Serdar Arslan (Alanya Alaaddin Keykubat University); YaÅŸar Yiğit Kaçmaz (Alanya Municipality)
    Abstract: Undoubtedly, one of the most important factors of an organization’s success is it’s employees. Since the study of Hawtorne, it is a known fact that employee behavior and performance are related to many organizational variables. One of the variables that effect an organization’s employee performance, productivity and profitability is organizational alienation. When the literature is reviewed, it is seen that organizational alienation has many negative effects on job satisfaction, organizational silence, burn-out, work life quality, organizational commitment, employee turnover and productivity. There are organizational and individual reasons which affecting organizational alienation. The purpose of this study is to reveal the effect of hospitality employees’ self efficacy perception on organizational alienation. The research was carried out with employees working in apart hotels in Alanya, one of the most popular tourism destinations in Turkey. The data is collected from a random sample via questionnaire. Structural equation modeling (SEM) was conducted to test the validity of hypotheses. After the analysis it was concluded that self-efficacy has a statistically meaningful yet partial effect on organizational alienation.
    Keywords: Self efficacy, organizational alienation, hospitality management
    JEL: M19
  5. By: Nurul Hudani Md. Nawi (University Malaysia Sabah); Redzuan Ma'rof (Universiti Putra Malaysia); Balan Rathakrshnan (Universiti Malaysia Sabah); Rajiv Gandhi (National Institute of Youth Development)
    Abstract: This study aims to investigate the effects of emotional intelligence and the impact of transformational leadership behaviour towards job performance. Sample of the study was comprised of 306 (Male =132; Female =174) public school personnel as leaders in their respective environments, such as principal, senior administrative assistant, senior assistant student affairs (HEM), senior assistant curriculum, the heads of the four departments set by the Ministry of Education i.e. Heads of Humanities and Religion, Science and Math, English, and Engineering & vocational as well as members of general committee from High Performance Schools (SBT) in Malaysia. Emotional Competence Inventory (ECI), Transformational Leadership Behaviour (Multi-factor leadership questionnaire) (MLQ) and job performance were used to measure EI, transformational leadership and job performance accordingly. The structural equation modelling (SEM, a multivariate technique, via Analysis of Moment Structure (AMOS) computer software version 20.0 was utilised to empirically test and estimate the hypothesised relationship between constructs. Results revealed that emotional intelligence is positively related to transformational leadership behaviour, and transformational leadership behaviour has a significant and positive relationship with job performance. Among the two predictors, transformational leadership was found to have a greater direct impact on job performance and exist direct impact of emotional intelligence was found in this empirical analysis on job performance. On a practical note, the assessment of psychological constructs in school setting e.g.; EQ and leadership behaviour could possibly assist in enhancing the work performances in delivering huge benefits to the society especially in the educational contexts. Finding of the present research can help to improve overall organizational behaviour and productivity resulting in optimum service delivery to the stakeholders within educational system in Malaysia.
    Keywords: Emotional intelligence, personality traits, leadership behaviour, job performance, educator leader.
  6. By: Ellis, Jimmy R. (American University); Gershenson, Seth (American University)
    Abstract: Many male and first-generation college goers struggle in their first year of postsecondary education. Mentoring programs have been touted as a potential solution to help such students acclimate to college life, yet causal evidence on the impact of such programs, and the factors that influence participation in them, is scant. This study leverages a natural experiment in which peer advisors (PA) were quasi-randomly assigned to first-year university students to show that: (i) male students were significantly more likely to voluntarily meet their assigned PA when the PA was also male and (ii) these compliers were significantly more likely to persist into the second year of postsecondary schooling. We find no effect of being assigned to a same-sex PA on female students' use of the PA program, nor do we find any evidence that the PA program affected subsequent academic performance (GPAs).
    Keywords: higher education, peer advising, mentoring, gender gap, retention, demographic mismatch
    JEL: I21 I23 I28
    Date: 2016–05
  7. By: Llorente-Saguer, Aniol; Sheremeta, Roman M.; Szech, Nora
    Abstract: A well-known theoretical result in the contest literature is that greater heterogeneity decreases performance of contestants because of the "discouragement effect." Leveling the playing field by favoring weaker contestants through bid-caps and favorable tie-breaking rules can reduce the discouragement effect and increase the designer's revenue. We test these predictions in an experiment. Our data show that indeed, strengthening weaker contestants through tie-breaks and bid-caps significantly diminishes the discouragement effect. Bid-caps can also improve revenue. Most deviations from Nash equilibrium can be explained by the level-k model of reasoning.
    Keywords: all-pay auction,rent-seeking,bid-caps,tie-breaks,contest design
    JEL: C72 C91 D72
    Date: 2016

This nep-hrm issue is ©2016 by Patrick Kampkötter. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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