nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2018‒03‒19
nine papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Social capital, human capital and fertility By Raffaella Coppier; Fabio Sabatini; Mauro Sodini
  2. Promotions and the Peter Principle By Alan Benson; Danielle Li; Kelly Shue
  3. When Salespeople Manage Customer Relationships: Multidimensional Incentives and Private Information By Minkyung Kim; K. Sudhir; Kosuke Uetake; Rodrigo Canales
  4. A Comparative Review of Turnover Models and Recent Trends in Turnover Literature By Abdul Samad
  5. When Supervisors Start to Meddle: An Experiment on the Determinants of Intervention By Silvia Lübbecke; Wendelin Schnedler
  6. Team Formation and Performance: Evidence from Healthcare Referral Networks By Leila Agha; Keith Marzilli Ericson; Kimberley H. Geissler; James B. Rebitzer
  7. Does Integration Change Gender Attitudes? The Effect of Randomly Assigning Women to Traditionally Male Teams By Gordon Dahl; Andreas Kotsadam; Dan-Olof Rooth
  8. It Takes Two to Empower: The Communicative Context of Empowerment Change in the Workplace By Weidenstedt, Linda
  9. Gender Differences in Sorting By Luca Paolo Merlino; Dario Pozzoli; Pierpaolo Parrotta

  1. By: Raffaella Coppier; Fabio Sabatini; Mauro Sodini
    Abstract: We develop an overlapping generations model to study how the interplay between social and human capital affects fertility. In a frame- work where families face a trade-off between the quantity and quality of children, we incorporate the assumption that social capital plays a key role in the accumulation of human capital. We show how the erosion of social capital can trigger a chain of reactions leading households to base their childbearing decisions on quantity, instead of quality, resulting in higher fertility.
    Keywords: Fertility, quantity-quality trade-off, human capital, education, social capital, trust.
    JEL: J13 Z1 Z13
    Date: 2018–03–04
  2. By: Alan Benson; Danielle Li; Kelly Shue
    Abstract: The best worker is not always the best candidate for manager. In these cases, do firms promote the best potential manager or the best worker in her current job? Using microdata on the performance of sales workers at 214 firms, we find evidence consistent with the “Peter Principle,” which predicts that firms prioritize current job performance in promotion decisions at the expense of other observable characteristics that better predict managerial performance. We estimate that the costs of promoting workers with lower managerial potential are high, suggesting either that firms are making inefficient promotion decisions or that the benefits of promotion-based incentives are great enough to justify the costs of managerial mismatch.
    JEL: J01 M5 M51
    Date: 2018–02
  3. By: Minkyung Kim (School of Management, Yale University); K. Sudhir (Cowles Foundation & School of Management, Yale University); Kosuke Uetake (School of Management, Yale University); Rodrigo Canales (School of Management, Yale University)
    Abstract: At many firms, incentivized salespeople with private information about customers are responsible for CRM. While incentives motivate sales performance, private information can induce moral hazard by salespeople to gain compensation at the expense of the firm. We investigate the sales performance–moral hazard tradeoff in response to multidimensional performance (acquisition and maintenance) incentives in the presence of private information. Using unique panel data on customer loan acquisition and repayments linked to salespeople from a microfinance bank, we detect evidence of salesperson private information. Acquisition incentives induce salesperson moral hazard leading to adverse customer selection, but maintenance incentives moderate it as salespeople recognize the negative effects of acquiring low-quality customers on future payoffs. Critically, without the moderating effect of maintenance incentives, adverse selection effect of acquisition incentives overwhelms the sales enhancing effects, clarifying the importance of multidimensional incentives for CRM. Reducing private information (through job transfers) hurts customer maintenance, but has greater impact on productivity by moderating adverse selection at acquisition. The paper also contributes to the recent literature on detecting and disentangling customer adverse selection and customer moral hazard (defaults) with a new identification strategy that exploits the time-varying effects of salesperson incentives.
    Keywords: When Salespeople Manage Customer Relationships: Multidimensional Incentives and Private Information
    Date: 2018–02
  4. By: Abdul Samad (Universiti Teknologi Malaysia Author-2-Name: Roselina Ahmad Saufi Author-2-Workplace-Name: Universiti Teknologi Malaysia)
    Abstract: Objective – Employee retention is a challenging agenda in human resource management. This paper attempts to undertake a comparative analysis of primitive turnover models with more recent trends in turnover literature, and highlight the importance of environmental factors in retaining employees. Methodology/Technique – Literature of turnover, turnover intention and turnover models were reviewed. Findings – Traditionally, scholars such as William H. Mobley (1977), Price and Mueller (1981), and Bluedorn (1982) emphasised job satisfaction, organisation commitment, performance, job searching and job opportunities as the main predictors of employee turnover. However, in the 21st century, scholars such as Hassan, Akram, and Naz (2012); Mishra (2013); Chon (2012); Yilmaz and Ovunc (2015); and Sun and Wang, (2016) have begun to extend the retention model by including work life balance, human resource management practices, organizational reputation and prestige. This paper examines the development of retention models in the 1980s and 2000s. The study examines the evolution of retention determinants – beginning from organisational focus to a combination of organisational, non-organisational, economical, and environmental factors. The implication is that there has been a shift in the momentum of turnover predictors from attitudinal and behavioural factors, to a combination of external factors. To improve employee retention, an organisation must consider individual, organisational, and environmental factors and develop a more comprehensive strategy by incorporating every aspect of work and non-work settings. Novelty – This study undertakes a comparative review of turnover models with recent literature of turnover which has not been done extensively in previous literature.
    Keywords: Employee Turnover; Organisational Reputation; Organisational Prestige; Work life Balance
    JEL: J63 J64
    Date: 2017–12–01
  5. By: Silvia Lübbecke (University of Paderborn); Wendelin Schnedler (University of Paderborn)
    Abstract: In large companies, supervisors are hired to control their subordinates’ performance and intervene with risky decisions in order to increase productivity. However, their decision to intervene may not always be profit-orientated. This paper studies whether the decision to intervene in a worker’s decision is influenced by psychological factors that are unrelated to the profitability of intervention. In particular, we examine the role of incidental moods and the anticipation of regret triggered by ex-post evaluation of the decision. Intervention behavior is analyzed in a factorial design controlling for two mood conditions (positive, negative) and the presence or absence of feedback on either the efficiency of intervention or on its social (dis)approval by the supervised worker. We observe that supervisors in the negative mood condition intervene less often (approx. 13%) than those in the positive mood condition. Further, when supervisors are later evaluated, they intervene less (approx. 16%). Our observations are consistent with the idea that supervisors’ decision are not only driven by payoff but also by incidental moods and regret anticipation. The effects, however, are not statistically significant.
    Keywords: intervention, incidental affects, anticipation of regret, decision under uncertainty, group decision-making
    JEL: C91 D81 D82 D83 D91
    Date: 2018–02
  6. By: Leila Agha; Keith Marzilli Ericson; Kimberley H. Geissler; James B. Rebitzer
    Abstract: How does team structure affect productivity? We address this question with an application to healthcare by examining the teams that primary care physicians (PCPs) assemble when they refer patients to specialists. Our theoretical model analyzes how PCPs trade off costly coordination against beneficial specialization, predicting that coordination improves when PCPs concentrate their referrals within a smaller set of specialists. Empirically we find that patients of PCPs with concentrated referrals have lower healthcare costs. This effect exists for commercially insured and Medicare populations; is statistically and economically significant; and holds under identification strategies that account for unobserved patient and physician characteristics.
    JEL: D85 I10 I11 L2 M5
    Date: 2018–02
  7. By: Gordon Dahl; Andreas Kotsadam; Dan-Olof Rooth
    Abstract: We examine whether exposure of men to women in a traditionally male-dominated environment can change attitudes about mixed-gender productivity, gender roles and gender identity. Our context is the military in Norway, where we randomly assigned female recruits to some squads but not others during boot camp. We find that living and working with women for 8 weeks causes men to adopt more egalitarian attitudes. There is a 14 percentage point increase in the fraction of men who think mixed-gender teams perform as well or better than same-gender teams, an 8 percentage point increase in men who think household work should be shared equally and a 14 percentage point increase in men who do not completely disavow feminine traits. Contrary to the predictions of many policymakers, we find no evidence that integrating women into squads hurt male recruits' satisfaction with boot camp or their plans to continue in the military. These findings provide evidence that even in a highly gender-skewed environment, gender stereotypes are malleable and can be altered by integrating members of the opposite sex.
    JEL: J16 J24
    Date: 2018–02
  8. By: Weidenstedt, Linda (The Ratio Institute and Stockholm University)
    Abstract: Empowerment efforts at the workplace are typically divided into two analytical categories: social-structural and psychological empowerment. These have been extensively researched in terms of their application and handling as well as their outcome and general usefulness in human resource management. However, less research has dealt with communicative aspects of empowerment and the communicative interactions between change agents (managers) and recipients (employees) that frame empowerment efforts. To contribute to a more nuanced empowerment discourse, this paper uses a micro-/individual-oriented perspective on empowerment communication and theorizes why empowerment change efforts sometimes end up being counterproductive – leading to disempowerment rather than empowerment. As starting point for theorizing empowerment communication, a “basic communicative structure” is identified and analyzed as comprising a contractual and a communicative context, referring to conditions as outlined in written employment contracts on the one hand, and implicitly shared and understood definitions of the social employment situation on the other. Building on sociological and social-psychological theories of communicative interaction, it is argued that focusing on change agents’ and recipients’ mutual ascriptions of meanings to each other’s communicative messages might improve empowerment outcomes: A communicative analysis of common empowerment efforts suggests that recipients’ sensemaking of their roles and situations as defined by written employment and/or psychological contracts is not necessarily in line with the communicative meanings they ascribe to the change agents’ actions, and vice versa.
    Keywords: empowerment; disempowerment; communicative interaction; employee engagement
    JEL: J30 L00 L20 M10 Y40
    Date: 2017–12–18
  9. By: Luca Paolo Merlino (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Universiteit Antwerpen [Antwerpen]); Dario Pozzoli (CBS - Copenhagen Business School [Copenhagen]); Pierpaolo Parrotta (BETA - Bureau d'Economie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this paper, we investigate gender differences in workers' career development within and outside the firm to explain the existence of gender wage gaps. Using Danish employer-employee matched data, we find that good female workers are more likely to move to better firms than men but are less likely to be promoted. Furthermore, these differences in career advancement widen after the first child is born. Our findings suggest that career impediments in certain firms cause the most productive female workers to seek better jobs in firms where there is less gender bias.
    Keywords: Sorting,Assortative Matching,Gender Gap
    Date: 2018

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