Performance Impact of the Elimination of Direct Labor Variance Reporting: A Field Study

Using a field study approach, we examine two competing perspectives on direct labor variance reporting: some argue that direct labor variance reporting is costly and cumbersome, and should be eliminated; whereas others contend that without direct labor variance information, managers will not be able to monitor workers effectively, causing workers to shirk and worker productivity to decline. Specifically, we investigate the productivity and quality impacts of eliminating direct labor variance reporting with panel data containing 36 months of data from seven experimental plants that eliminated direct labor variance reporting and 11 control plants that did not. The experimental plants experienced a significant decline in labor productivity compared to the control plants. Also, the experimental plants showed an improvement in product quality, indicating that workers reallocate their efforts to other tasks as a result of the change in the information set available to evaluate them.     

2007年全球1000家大银行排名

2007年全球1000家大银行的总体盈利能力继续大幅增长,资本回报率达到创记录的23.4%,较2006年上升0.7个百分点。1000家大银行税前利润总额达到惊人的7863亿美元,较前一年增长了21.7%。2007年全球1000家大银行的一级资本和资产分别增长18.4%和16.3%,达到33651亿美元和742322亿美元。新兴市场国家的银行信贷增长速度很高:中国四大国有商业银行的总资产在新的一年内增长了27.4%,其中两家中国银行2007年进入世界银行前10强,而且它们都具有冲击1000强排行榜中处于统治地位的前六家银行巨人的实力。前25家银行(按一级资本排序)的总资产和总利润分别占世界1000家银行总资产和总利润的42.8%和40.8%。     

An empirical analysis of continuing improvements following the implementation of a performance-based compensation plan

Performance improvements subsequent to the implementation of a pay-for-performance plan can result because more productive employees self-select into the firm (selection effect) and because employees allocate effort to become more effective (effort effect). We analyze individual performance data for 3,776 sales employees of a retail firm to evaluate these alternative sources of continuing performance improvement. The incentive plan helps the firm attract and retain more productive sales employees, and motivates these employees to further improve their productivity. In contrast, the less productive sales employees’ performance declines before they leave the firm.