nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2017‒06‒04
seven papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Do Performance Appraisals Decrease Employees’ Perception of Their Psychosocial Risks? By Rahma Daly; Marc-Arthur Diaye
  2. Wage delegation and intrinsic motivation: an experimental study By Marco Faillo; Costanza Piovanelli
  3. The Interrelationship betweeen Motivation, Organizational Culture and Engagement.The Next Challenge for 21st Century Leaders By Eli Laniado
  4. What Influences Managerial Use of Business Analytic Systems? A Theory of Performance-Driven Search By Abhijith Anand; Rajeev Sharma; Rajiv Kohli
  5. Police Human Resource Policy in the Lodz region as a determinant of knowledge and organization’s effective operation By Joanna Luczak
  6. Homophily in Entrepreneurial Team Formation By Paul A. Gompers; Kevin Huang; Sophie Q. Wang
  7. How Do Peers Impact Learning? An Experimental Investigation of Peer-to-Peer Teaching and Ability Tracking By Erik O. Kimbrough; Andrew D. McGee; Hitoshi Shigeoka

  1. By: Rahma Daly (University of Evry Val d’Essonne (EPEE)); Marc-Arthur Diaye (University Paris 1 Pantheon-Sorbonne, Sorbonne Center for Economics)
    Abstract: This paper uses cross-sectional linked employer-employee data col- lected from the French Working Conditions Survey, to assess the po- tential positive or negative effect of performance appraisal interviews administered by firms on employees’ reported levels of psychosocial risk. A subjective measure of the psychosocial risks is used and in- dicates a perceived level of risk. In order to obtain a more objective evaluation, we compare the employees’ perceived level of psychosocial risk and the level of risk reported by firms. The results show that the reported levels of psychosocial risk decrease when employees receive performance evaluation reviews on a regular basis; reviews whose ef- fects vary depending on the type of psychosocial risk.
    Keywords: psychosocial risks, performance appraisal, aggregation methods, propensity score matching, endogenous switching regression
    JEL: C43 J28 M54
    Date: 2017
  2. By: Marco Faillo; Costanza Piovanelli
    Abstract: The aim of this study is to investigate experimentally whether and to what extent subjects’ intrinsic motivation and performance change when they are allowed to self-set their own wage for performing a task; moreover, it investigates how differently motivated people react to the possibility of deter- mining their own wage. We propose a novel experimental design, in which the subjects are asked to perform a complex real-effort task under two different conditions: wages can be either chosen by the subjects themselves, or randomly determined. With this setting, we are able to disentangle intrinsic motivation from the reciprocity concerns that are likely to characterize the standard principal-agent interaction. Our main result is that subjects increase their performance more when they are delegated the wage choice than when they receive a random payment; moreover, subjects who are both highly motivated and delegated their wage choice are those who perform better. Finally, subjects with higher motivation ask for lower wages.
    Keywords: Compensation, Incentives, Delegation, Motivation, Experiment
    JEL: C91 J33 M52 M54
    Date: 2017
  3. By: Eli Laniado (Poznan University of Economics and Business al.Niepodleglosci 10, 61-875 Poznan, Poland)
    Abstract: Research background: The huge research interest in the interrelationship between motivation, organizational culture, and engagement can be explained psychologically and economically. Psychological reasons include work individualization, increasing interest in positive psychology, and the role of human resources, perceived as a key resource in enhancing business competitive advantage. The economic reason is “engagement deficit” resulting from low employee engagement rates in organizations. Business organizations around the world pay a heavy price for unengaged and uncommitted employees. Leaders today are exerting tremendous pressure on their workforces to achieve optimal results. It is, therefore, becoming increasingly important for organizations to attract, engage, develop and build loyalty among their employees, based on their organizational culture, to gain a competitive edge in today's global marketplace. Purpose of the article: The article’s main purpose is exploring the interrelationship between three variables: motivation and organizational culture, which are independent variables, and engagement which is the dependent variable. This is important in the light of 21st century leaders' challenges to establish a solid organizational culture to engage their employees. Methodology: Methodology is based on a multidisciplinary literature review in the fields of organizational psychology and management theory, including nearly 100 articles, reports and books. Findings: Building an engagement organizational culture means leaders must understand the interrelationship between organizational culture and engagement and its contribution to achieving business goals. Managing organizational culture requires leaders to focus on human aspects like motivation and employee values. The engagement organizational culture lies, profoundly, at the center of the ethical value-based organizational culture.
    Keywords: motivation; engagement; organization culture; empowerment; leadership
    JEL: J24 M54
    Date: 2017–05
  4. By: Abhijith Anand (University of Waikato); Rajeev Sharma (University of Waikato); Rajiv Kohli (The College of William & Mary)
    Abstract: Managers use business analytic systems to search for solutions to improve future performance. However, how past performance motivates managers to undertake search for solutions is not well understood. The Behavioral Theory of the Firm (BTF) proposed that managers gather information and engage in search for a solution when they encounter performance problems. We propose a Theory of Performance-driven Search (TPS) and argue that managerial search effort is a function of combined variations in unit-level performance and variations in organizational performance. We tested our theory with managerial use of business analytic systems and monthly performance data collected from seven hospitals over a period of four years. Our findings indicate that after a decline in unit-level performance, managers’ search effort is shaped by patterns of organizational performance. We also find that managers’ search response to sustained decline is quicker when decline in organizational performance is steep and sustained. Consistent with hypotheses proposed by the TPS, our findings extend our understanding of managerial search behavior and have important implications for organizations’ efforts to create business value from the use of analytic technologies.
    Keywords: managerial search; business analytics; aspirations; performance feedback; problemistic search
    Date: 2017–05–29
  5. By: Joanna Luczak (University of Social Sciences in Lodz)
    Abstract: Human capital is the driving force of an organization that has a significant impact on its development and effective operation. The success of the organization depends to a great extent on its social potential. Successful recruitment ensures that the best employees ensure high quality work, which respectively translates into organizational development and competitiveness (Oleksyn 2010, pp. 34-36). The development of the organization is based on knowledge acquisition, skills and raising qualifications by its members. The aim of the paper is to analyze the conditionings related to the management of the police organizational units, which influence the appropriate recruitment of police officers for particular positions. The publication also attempts to investigate the importance of appropriate recruitment for the effectiveness of actions taken by police officers. The article presents issues exemplifying the analysis of human resource management in the field of human resource policy playing an important role in Police. The empirical part of the article was based on an analysis of the subject literature and police internal materials, but also on the basis of participant observation and expert interview. The paper presents an analysis of the recruitment process of police officers for vacant posts in Police units of the Lodz Region, introduced by the Human Resource Policy Concept. Although the Police was established to protect citizens’ security and public order, its development and effective functioning are needed to further serve society. In order to do this, it is indispensable to recruit and employ proper and competent workers. Therefore, the recruitment and selection process is so significant.
    Keywords: public management; human resource management; police, recruitment; selection
    JEL: D73 D78
    Date: 2017–05
  6. By: Paul A. Gompers; Kevin Huang; Sophie Q. Wang
    Abstract: We study the role of homophily in group formation. Using a unique dataset of MBA students, we observe homophily in ethnicity and gender increases the probability of forming teams by 25%. Homophily in education and past working experience increases the probability of forming teams by 17% and 11 % respectively. Homophily in education and working experience is stronger among males than females. Further, we examine the causal impact of homophily on team performance. Homophily in ethnicity increases team performance by lifting teams in bottom quantiles to median performance quantiles, but it does not increase the chance of being top performers. Our findings have implications for understanding the lack of diversity in entrepreneurship and venture capital industry.
    JEL: J15 J16
    Date: 2017–05
  7. By: Erik O. Kimbrough; Andrew D. McGee; Hitoshi Shigeoka
    Abstract: Classroom peers are believed to influence learning by teaching each other, and the efficacy of this teaching likely depends on classroom composition in terms of peers’ ability. Unfortunately, little is known about peer-to-peer teaching because it is never observed in field studies. Furthermore, identifying how peer-to-peer teaching is affected by ability tracking—grouping students of similar ability—is complicated by the fact that tracking is typically accompanied by changes in curriculum and the instructional behavior of teachers. To fill this gap, we conduct a laboratory experiment in which subjects learn to solve logic problems and examine both the importance of peer-to-peer teaching and the interaction between peer-to-peer teaching and ability tracking. While peer-to-peer teaching improves learning among low-ability subjects, the positive effects are substantially offset by tracking. Tracking reduces the frequency of peer-to-peer teaching, suggesting that low-ability subjects suffer from the absence of high-ability peers to teach them.
    JEL: C91 I24 I28
    Date: 2017–05

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