nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2020‒01‒06
six papers chosen by
Patrick Kampkötter
Eberhard Karls Universität Tübingen

  1. Who Benefits from Corporate Social Responsibility? By Briscese, Guglielmo; Slonim, Robert L.; Feltovich, Nicholas
  2. Firms' Wage Structures, Workers' Fairness Perceptions, Job Satisfaction and Turnover Intentions: Evidence from Linked Employer-Employee Data By Mohrenweiser, Jens; Pfeifer, Christian
  3. Reasons for not working from home in an ideal worker culture: Why women perceive more cultural barriers By Lott, Yvonne; Abendroth, Anja
  4. Promotions and Training: Do Competitive Firms Set the Bar too High? By Luca Picariello
  5. The Influence Of Developing Human Capital Management Toward Company Performance Study At Developer Company In Makassar Indonesia By Hidayat, Muhammad
  6. Delivering performance: the capital market framing of financial numbers from a preparer perspective By Ahblom, Per; Sjögren, Ebba

  1. By: Briscese, Guglielmo; Slonim, Robert L.; Feltovich, Nicholas
    Abstract: Firms often donate a share of profits to charity as a form of Corporate Social Responsibility (CSR) to attract and retain talent. Previous studies suggest that such initiatives can motivate workers to work harder in lieu of higher wages, generating benefits for both sides of the labor market. We design a novel version of a commonly used experiment to control for self-selection and find that wages remain the most effective incentives to attract and motivate workers, with corporate donations playing a smaller role than previously suggested. We also show that when firms donate a share of profits to charity, they reduce wages to keep their profits constant, negatively affecting workers’ earnings. Our results reveal that CSR initiatives can be at best marginally beneficial for firms, but considerably costly for workers.
    Keywords: Corporate philanthropy, Corporate social responsibility, Gift exchange, Human resources management
    Date: 2019–12
  2. By: Mohrenweiser, Jens (Bournemouth University); Pfeifer, Christian (Leuphana University Lüneburg)
    Abstract: The paper uses novel data for Germany linking worker and establishment surveys with administrative social security data for all workers in the surveyed establishments. From these data, four variables are generated that describe a firm's wage structure and the positions of workers within it: (a) workers' own absolute wages, (b) workers' conditional internal reference wages within firms, (c) the conditional wage dispersion in firms, and (d) workers' conditional external reference wages across firms. Three empirical contributions are made: (1) the impact of firms' wage structures on workers' perceived wage fairness as an important organizational justice variable, (2) the impact of firms' wage structures on workers' job satisfaction and turnover intentions, and (3) the contribution of the fairness considerations on the overall effects of the wage structure variables on workers' job satisfaction and turnover intentions. The findings suggest that equity and social status considerations as well as altruistic preferences towards co-workers and inequality aversion are important, whereas the evidence for signal considerations is limited.
    Keywords: income comparison, inequality, fairness, job satisfaction, turnover
    JEL: D63 I31 J28 J31 J63 M52
    Date: 2019–12
  3. By: Lott, Yvonne; Abendroth, Anja
    Abstract: The present study analyzes workers' reasons for not working from home in German workplaces. We ask to what degree cultural barriers, besides technical barriers, are reasons for not working from home. The analyses are based on the second wave (2014-15) of the German Linked Personnel Panel (LPP). Factor analyses confirm the importance of technical and cultural barriers to working from home. Linear regression analyses show that because men work more often than women in areas where working from home is technically unfeasible, they are more likely to perceive job unsuitability of working from home. Women - independent of their status positions - are more likely not to work from home due to perceived cultural barriers. In workplaces with a pronounced ideal worker culture, employees are more likely to perceive cultural barriers to working from home. Finally, company-level work-life balance support diminishes perceived cultural barriers.
    Date: 2019
  4. By: Luca Picariello (Università di Napoli Federico II and CSEF.)
    Abstract: Firms use promotions to match workers with jobs that fit their ability, but also to provide incentives to exert on-the-job training effort. As promotions make workers more attractive in the labor market, firms will balance productivity and retention costs. I show that if workers exert firm-specific training effort, profit-maximizing firms that cannot commit to promotion rules promote fewer workers than efficient. Differently, if firms can commit to promotion bars, for instance by means of structured managerial practices, they set the bar efficiently. If workers acquire portable training, this directly increases retention costs. Firms that cannot commit to promotion bars will set them inefficiently high. In this case, workers are discouraged from training when competition for talent is fierce. If firms can commit to promotion bars, they set them lower than without commitment providing strong incentives for workers to acquire portable training. However, in this scenario the promotion bar may be set too low compared with the efficient talent allocation.
    Keywords: Promotions, on-the-job training, poaching, career concerns.
    JEL: D86 M51 M52 M53
    Date: 2019–12–16
  5. By: Hidayat, Muhammad (STIE Nobel Indonesia)
    Abstract: Human capital is the key factor to drive a company in achieving its vision and mission. Therefore, developing the human capital management aims to achieve the company's human capital quality, it is one of the most important company’s strategies today. This study is intended to determine the influence of human capital management development toward the company performance, to answer this question the five important factors in human capital management, namely individual capabilities, individual motivation, leadership, organizational climate and work group effectivenes, they are analyzed to determine their effects on employee performance and company performance on four developer companies in South Sulawesi Indonesia. This study proved that organizational climate has a direct effect on employee and company performance. Work group effectiveness directly affects employee and company performance. Individual capability, individual motivation and leadership have a direct effect on employee performance. than the employee performance directly affects the company performance.
    Date: 2018–12–03
  6. By: Ahblom, Per; Sjögren, Ebba
    Abstract: This paper investigates the work involved in making sense of specific financial numbers within a preparer organization and conveying this understanding at the corporate-capital market interface. An observation-based study was undertaken of the investor relations team’s interactions during the silent period up to the release of the quarterly report for a large Northern European bank. This rare empirical material was used to trace the successive framing (Goffman, 1974) of the Core Tier 1 ratio, a regulated measure of capital adequacy that the case organisation “delivered” on in its quarterly report. We argue, in contrast to prior literature, that preparers of corporate financial reporting are limited in their choices of the economic reality they present by the very process of constructing a meaning of financial numbers. The process of framing involved anchoring specific numerical representations to perceived intraorganizational realities, market audience expectations, as well as past representations of financial performance. We observed how specific interpretations of financial numbers, as expressed in words and phrases that became imbued with meaning, were moved between spatio-temporally separated sites through the circulation of cues. These cues provide a scaffolding for the enactment of interpretational frames within specific situations – and across sites. The development and circulation of cues in interactions between investor relations professionals and numerous other parties at the corporate-capital market interface contribute to making financial numbers meaningfully anchored, widely distributed and influential representations of organizational reality.
    Keywords: financial reporting; framing; impression management; investor relations; Goffman; capital market
    JEL: M40
    Date: 2019

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