nep-hrm New Economics Papers
on Human Capital and Human Resource Management
Issue of 2024‒03‒25
five papers chosen by
Patrick Kampkötter, Eberhard Karls Universität Tübingen

  1. Perceived Legitimacy and Motivation Effects of Authority By Holger Herz; Christian Zihlmann
  2. What makes a job better? Survey evidence from job changers By Katherine Lim; Mike Zabek
  3. Managerial Contribution to Firm Success: Evidence from Professional Football Leagues By Kaori Narita; Benjamin Holmes; Ian McHale
  4. Generative AI at Work By Brynjolfsson, Erik; Li, Danielle; Raymond, Lindsey R.
  5. Do large firms generate positive productivity spillovers? By Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen

  1. By: Holger Herz; Christian Zihlmann
    Abstract: Organizational structures are an important determinant of individual incentives and thus individual motivation in organizations. We study whether their effects on individual motivation go beyond incentives and how they relate to the perceived legitimacy of organizational structure. To this end, we design a laboratory experiment in which we exogenously manipulate the organizational structure in a way that leaves the incentives of all individuals unaffected, but changes the perceived legitimacy of the organizational structure. Our data show that organizational structure indeed affects behavior beyond monetary incentive effects and that the observed changes are significantly associated with changes in perceived legitimacy.
    Keywords: legitimacy, organization, motivation
    JEL: D01 D23 D91 M50
    Date: 2024
  2. By: Katherine Lim; Mike Zabek
    Abstract: Changes in pay and benefits alone incorrectly predict self-assessed changes in overall job quality 30 percent of the time, according to survey evidence from job changers. Job changers also place more emphasis on their interest in their work than they do on pay and benefits in evaluating whether their new job is better. Parents particularly emphasize work-life balance, and we find some indications that mothers value it more than fathers. Improvements in pay are highly correlated with improvements in other amenities for workers with less education but not for workers with a bachelor's degree or more. The higher positive correlation implies that differences in pay and benefits understate differences in total job quality to a greater degree among workers with less education.
    Keywords: Job quality; Amenities; Surveys; Employment
    JEL: J62 J32 J16 M12 L23
    Date: 2024–02–02
  3. By: Kaori Narita; Benjamin Holmes; Ian McHale
    Abstract: Previous research in economics and management finds significant heterogeneity across senior managers in their contribution to organisational success. It remains, however, challenging to disentangle the impact of managers from that of other inputs, such as labour, due to limited data availability in many general organisations. In contrast, individual workers (players)’ performance and their characteristics are publicly available in professional football leagues. Therefore, this study employs data from the industry to estimate individual managers’ contributions to field performance, given the resources at hand. To measure a club’s output, we adopt expected goals, which are less influenced by randomness than conventional measures. Controlling for players’ quality based on their historical performance as well as a club’s financial strengths, we yet find significant impacts of managerial inputs. In addition, we compare our estimated manager coefficients with a more naive measure of managerial performance, such as winning percentage. This highlights the importance of taking into account the differences in resources that a manager has at his disposal as well as the randomness of the outcome when evaluating a manager’s performance.
    Keywords: firm performance, managers, football, performance evaluation, leadership
    JEL: M54 Z22 L25
    Date: 2022–11
  4. By: Brynjolfsson, Erik (Stanford U); Li, Danielle (MIT); Raymond, Lindsey R. (MIT)
    Abstract: New AI tools have the potential to change the way workers perform and learn, but little is known about their impacts on the job. In this paper, we study the staggered introduction of a generative AI-based conversational assistant using data from 5, 179 customer support agents. Access to the tool increases productivity, as measured by issues resolved per hour, by 14% on average, including a 34% improvement for novice and low-skilled workers but with minimal impact on experienced and highly skilled workers. We provide suggestive evidence that the AI model disseminates the best practices of more able workers and helps newer workers move down the experience curve. In addition, we find that AI assistance improves customer sentiment, increases employee retention, and may lead to worker learning. Our results suggest that access to generative AI can increase productivity, with large heterogeneity in effects across workers.
    JEL: D8 J24 M15 M51 O33
    Date: 2023–11
  5. By: Mary Amiti; Cedric Duprez; Jozef Konings; John Van Reenen
    Abstract: The potentially negative effects of market concentration on consumers and workers has received much attention, but Mary Amiti, Cédric Duprez, Jozef Konings and John Van Reenen find that big firms can also promote productivity in the wider economy. Analysing data from Belgium, they find that being global is not necessary for such benefits, with large domestic firms generating spillovers of the same magnitude as multinationals.
    Keywords: productivity, fdi, spillovers
    Date: 2024–02–20

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