nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2017‒03‒26
eleven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. The secret to job satisfaction is low expectations: How perceived working conditions differ from actual ones By Simona Cicognani; Martina Cioni; Marco Savioli
  2. Team Goal Incentives and Individual Lying Behavior By Julian Conrads; Mischa Ellenberger; Bernd Irlenbusch; Elia Nora Ohms; Rainer Michael Rilke; Gari Walkowitz
  3. The Influence of Management's Work-Life Balance on the Organizational Behavior of Employees in Small and Medium-sized Enterprises -Empirical Analysis Focusing on Spillover and Crossover Effects- By Mitsutoshi Hirano; Atsushi Yogo
  4. Training Contracts, Employee Turnover, and the Returns from Firm-sponsored General Training By Mitchell Hoffman; Stephen V. Burks
  5. Corporate Employee-Engagement and Merger Outcomes By Liang, H.; Renneboog, Luc
  6. CEO Behavior and Firm Performance By Oriana Bandiera; Stephen Hansen; Andrea Prat; Raffaella Sadun
  7. Does the Strength of Incentives Matter for Elected Officials? A Look at Tax Collectors By Sutirtha Bagchi
  8. Employee Participation and Turnover Intention: Exploring the Explanatory Roles of Organizational Justice and Learning Goal Satisfaction By Manish Kumar; Hemang Jauhari
  9. What makes you "super-rich"? New evidence from an analysis of football players' earnings By Carrieri, Vincenzo; Principe, Francesco; Raitano, Michele
  10. Designing performance-based incentives for innovation intermediaries: Evidence from regional innovation poles By Margherita Russo; Annalisa Caloffi; Federica Rossi; Riccardo Righi
  11. Corporate Culture: Evidence from the Field By John R. Graham; Campbell R. Harvey; Jillian Popadak; Shivaram Rajgopal

  1. By: Simona Cicognani; Martina Cioni; Marco Savioli
    Abstract: Working conditions exert a major influence on accidents and illnesses at work as well as on job satisfaction and health, yet very little research has examined the determinants of working conditions. By exploiting the Italian Labour Force Survey, this paper provides evidence on the underlying factors affecting working conditions. It provides a behavioural interpretation of the results, which stems from the discrepancy between actual and expected working conditions. Workers declare their perceived working conditions influenced by the difference between the actual and the expected working conditions. Variables concerning personal characteristics, such as gender, education and being employed in the first job, shift expectations about working conditions and accordingly perceived working conditions. On the contrary, variables related to work characteristics, such as working full time, with shifts and in a large place, affect actual and thus perceived working conditions (negatively).
    Keywords: Working conditions; Expectations; Perceptions; Actual conditions; Job satisfaction
    JEL: D84 J24 J28
    Date: 2017–03
  2. By: Julian Conrads; Mischa Ellenberger; Bernd Irlenbusch; Elia Nora Ohms; Rainer Michael Rilke; Gari Walkowitz
    Abstract: In this article we examine the influence of two goal compensation schemes on lying behavior. Based on the die rolling task of Fischbacher/Föllmi-Heusi (2013), we apply an individual goal incentive scheme and a team goal incentive scheme. In both settings individuals receive a fixed bonus when attaining the goal. We find that under team goal incentives subjects are less inclined to over-report production outputs beyond the amount which is on average necessary for goal attainment. Investigating subjects’ beliefs on their team mates’ behavior under team goal incentives reveals that subjects who either believe that lying is not profitable (i.e., the team goal cannot be reached with a lie) or not absolutely necessary (i.e., there is a good chance that the team goal can also be reached without lying) tend to be honest. We also find that subjects who believe that the team goal has already been reached by their team mates tend to over-report production outputs. Across treatments, women are found to be more honest than men. Subjects’ personality is not associated with reported production outputs. Our work contributes to previous research on how different compensation schemes affect unethical behavior in organizational settings.
    Keywords: Compensation schemes, Lying, Teams, Goals, Individual differences, Experiment
    JEL: C91 C92 M52
    Date: 2017–03–16
  3. By: Mitsutoshi Hirano (Graduate School of Business Administration, Kobe University); Atsushi Yogo (Graduate School of Humanities and Social Sciences, Okayama University)
    Abstract: This study investigates the crossover effect of work-life balance (WLB) in the relationship between the management of small and medium-sized enterprises (SMEs) and their employees. SMEs are smaller in scale and have fewer employees than large enterprises, resulting in a close relationship between management and employees. In SMEs, it is easier for employees to observe the daily behavior of the management. Therefore, if management's WLB satisfaction is high, the positive attitude of the management will be transmitted to the employees, and it is thought that this will improve employee WLB satisfaction and motivation. In this study, business managers (90 people) in Osaka Prefecture and the matched data of employees (1,054 people) were used for analysis. The results showed that the management's WLB satisfaction level had an influence on the degree of work engagement of both male and female employees. However, a crossover effect between management and employees' WLB satisfaction while observed in men, was not observed in women. It is suggested that the fixed ideas and paternalism of male management toward female employees may work to suppress the crossover effect on women.
    Keywords: work-life balance (WLB); spillover effect; crossover effect; work engagement; small and medium-sized enterprises (SMEs)
    Date: 2017–03
  4. By: Mitchell Hoffman; Stephen V. Burks
    Abstract: Firms may be reluctant to provide general training if workers can quit and use their gained skills elsewhere. “Training contracts” that impose a penalty for premature quitting can help alleviate this inefficiency. Using plausibly exogenous contractual variation from a leading trucking firm, we show that two training contracts significantly reduced post-training quitting, particularly when workers are approaching the end of their contracts. Simulating a structural model, we show that observed worker quit behavior exhibits aspects of optimization (for one of the two contracts), and that the contracts increased firm profits from training and reduced worker welfare relative to no contract.
    JEL: J24 J41 M53
    Date: 2017–03
  5. By: Liang, H.; Renneboog, Luc (Tilburg University, Center For Economic Research)
    Abstract: Extending the theories of employee incentives and inalienability of human capital, we investigate the link between a firm’s engagement in employee issues and the returns to shareholders around mergers and acquisitions (M&As) and analyze an international sample of 4,565 M&A deals from 48 countries. We find that stronger employee-engagement—especially in terms of monetary benefits—by the acquiring firm is positively related to shareholder returns in domestic deals, but this positive effect is attenuated in cross-border deals, whereas workforce diversity, training and development, or health and safety do not affect shareholder value. The attenuating effect of cross-border deals is stronger when uncertainty about post-merger labor integration is higher and when economic nationalism in the target’s country is stronger, consistent with an explanation based on the inalienability of human capital and employment policies. Moreover, we find that most effects of employee-engagement on shareholder returns are driven by the acquirer rather than the target, and that they persist in the long run post-merger.
    Keywords: employee-engagement; labor protection; monetary incentives; mergers and acquisitions (&As)
    JEL: G34 M14 J24
    Date: 2017
  6. By: Oriana Bandiera; Stephen Hansen; Andrea Prat; Raffaella Sadun
    Abstract: We measure the behavior of 1,114 CEOs in Brazil, France, Germany, India, UK and US using a new methodology that combines (i) data on every activity the CEOs undertake during one workweek and (ii) a machine learning algorithm that projects these data onto scalar CEO behavior indices. Low values of the index are associated with plant visits, and one-on-one meetings with production or suppliers, while high values correlate with meetings with high-level C-suite executives, and several functions together, both from inside and outside the firm. We use these data to study the correlation between CEO behavior and firm performance within the framework of a firm-CEO assignment model. We show results consistent with significant firm-CEO assignment frictions, which appear to be more severe in lower-income regions. The productivity loss generated by inefficient assignment is equal to 13% of the productivity gap between high- and low-income countries in our sample.
    JEL: J22 J24 M12 O4
    Date: 2017–03
  7. By: Sutirtha Bagchi (Department of Economics, Villanova School of Business, Villanova University)
    Abstract: In Pennsylvania local property taxes are collected by elected officials, known as tax collectors, whose compensation varies widely in both structure and level across municipalities. This paper analyses the existence of a pay-performance relationship for these officials. Using data on the percentage of real estate taxes that are actually collected at the municipal level, the paper finds that as the compensation tax collectors receive goes up, they collect more in taxes. This relationship is however true only for collectors who are compensated on a commission basis and not for collectors compensated on the basis of a flat salary. The paper also finds no relationship between the share of votes received by the tax collector and the percentage of property taxes collected during the previous term. This observation may account for the lack of a positive relationship between pay and performance for collectors compensated on the basis of a salary.
    Keywords: Tax Collectors; Politician Salary; Productivity; Pay for Performance
    JEL: H70 J45 J33 D72 M52
    Date: 2017–03
  8. By: Manish Kumar (Indian Institute of Management Kozhikode); Hemang Jauhari (Indian Institute of Management Lucknow)
    Abstract: Purpose - This research examines the explanatory roles of organizational justice (OJ) and learning goal/needs satisfaction (LGS/LNS) in the relationship between participation in decision making (PDM) and turnover intention (TI) of employees. OJ was expected to mediate the relationship of PDM with LNS and TI. Further, LNS was expected to mediate the relationship of PDM and OJwithTI. Design/methodology/approach – This study used a rigorous design with 192 responses collected with temporal separation using snowball sampling technique. Responses on PDM, OJ and LNS were taken at one point of time while responses on TI were taken at another point of time. Analysis was done using structural equation modelling approach in IBM SPSS AMOS 20. Findings –OJpartially mediatesPDM and LNS relationship but fully mediates PDM and TI relationship. Further,LNSpartially mediates OJ and TI relationship but fully mediates PDM and TI relationship. PDM does not have direct effect on TI. Research limitations/implication–Ensuring participation of employees on programmes and policies including those on human resources by itself may not be able to reduce TI of employees. It is when employees are able to experience fairness for themselves and/or they are able to add value for themselves by enhancing relevant knowledge base that PDM has an impact on TI. Therefore organizations must ensure all three aspects of concern to employees; ensuring participation, fairness and individual growth of the employees to address TI. Originality/value – Although there are studies relating TI separately with PDM, fairness and satisfaction, our study is able to contribute by specifying two stage explanatory mechanism between PDM and TI. In addition, we believe our study has brought in so far unexplored nuance of relevance of individual quest for learning in explaining TI. Further, through the use of robust design the study contributes in corroborating research findings on TI.
    Keywords: Participation in decision making, Organizational justice, Learning goal satisfaction, Turnover intention
    Date: 2016–07
  9. By: Carrieri, Vincenzo; Principe, Francesco; Raitano, Michele
    Abstract: This article investigates the influence of performance, popularity and power on "superearnings" using a unique panel dataset of Italian football players built on various sources of data. Using OLS, Panel and Unconditional Quantile regression techniques, we find that detailed measures of these factors are all significantly associated with higher wages. Popularity dominates all the other factors at the right tail of earnings distribution and the agent's power contributes mostly to allocate players in richer teams. These new findings challenge the interpretations of super-earnings based only on very talented workers who "win and take all".
    Keywords: superstars,top incomes,football players' earnings,panel data,unconditional quantile regressions
    JEL: J31 L83 J24 C23 D31
    Date: 2017
  10. By: Margherita Russo (University of Modena and Reggio Emilia); Annalisa Caloffi (University of Padua); Federica Rossi (Birkbeck College, University of London); Riccardo Righi (University of Modena and Reggio Emilia)
    Date: 2016–11
  11. By: John R. Graham; Campbell R. Harvey; Jillian Popadak; Shivaram Rajgopal
    Abstract: Does corporate culture matter? Can differences in corporate culture explain why similar firms diverge with one succeeding and the other failing? To answer these questions, we use a novel survey and interview-based analysis of 1,348 North American firms. Over half of senior executives believe that corporate culture is a top-three driver of firm value and 92% believe that improving their culture would increase their firm's value. Surprisingly, only 16% believe their culture is where it should be. Executives link culture to ethical choices (compliance, short-termism), innovation (creativity, taking appropriate risk), and value creation (productivity, acquisition premia). We assess these links within a framework that implies cultural effectiveness depends on interactions between cultural values, norms, and formal institutions. Our evidence suggests that cultural norms are as important as stated values in achieving success.
    JEL: D23 G3 G30 K22 M14 O16 Z1
    Date: 2017–03

This nep-hrm issue is ©2017 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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