The pay-for-performance dilemma

To recapitulate briefly, I believe that the basis for most of the problems we have with merit pay plans is the fact that the great majority of people think their own job performance is above average. Even a well-administered merit pay plan cannot give positive feedback to this majority. The consequence is likely to be that the individual's self-esteem is threatened. Too often one copes with such a threat by demeaning the importance of the job or by derogating the source—that is, disparaging the boss or management in general.In addition, merit pay emphasizes the direct relationship between job performance and dollar rewards, thereby detracting from intrinsic motivation in the work itself. A system that would switch the emphasis to rewards for self-development and opportunities for greater responsibility would seem to serve both individual and organizational goals in a more effective manner.     

On the desirable degree of flexibility of exchange rates

Zusammenfassung Zur Frage der optimalen Wechselkurs-Flexibilit?t. — Im Text und in der Tabelle wird erkl?rt, welche Kombinationen von Wechselkurspolitik, Nachfragesteuerung und Einkommenspolitik geeignet sind, Zahlungsbilanzungleichgewichte zu korrigieren, die sich aus binnenwirtschaftlichen Expansions- oder Kontraktionsprozessen ergeben (F?lle I–IV), und welche Kombinationen geeignet sind, binnenwirtschaftliche Ziele zu erreichen, ohne da\ Ungleichgewichte der Zahlungsbilanz geschaffen oder verst?rkt werden. Zu den binnenwirtschaftlichen Zielen, die in diesem Rahmen behandelt werden, geh?ren die Milderung oder Neutralisierung importierter Kontraktions- und Expansionsprozesse (F?lle V–VIII), hausgemachter Unterbesch?ftigung oder übernachfrage (F?lle IX und X) und binnenwirtschaftlich verursachter Konjunkturschwankungen (F?lle XI und XII). Au\erdem wird gezeigt, welche Kombinationen der Wechselkurspolitik mit der Geld- und Einkommenspolitik geeignet sind, eine importierte Inflation zu bek?mpfen und das reale Wirtschaftswachstum zu beschleunigen oder zu verlangsamen, ohne da\ unerwünschte Zahlungsbilanzungleichgewichte entstehen (F?lle XIII–XV).

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Résumé Le degré désirable de la flexibilité des cours des changes. — Le texte et le tableau expliquent quelles combinaisons de politique des cours des changes, politique monétaire-fiscale, et politique du revenu sont propres à empêcher ou corriger les déséquilibres de balance des paiements, déséquilibres qui résultent d’expansions ou de contractions à l’intérieur (les cas I à IV), et quelles combinaisons de ces politiques peuvent — sans créer ou aggraver des déséquilibres de balance des paiements — servir à atteindre des objectifs nationaux tels que l’atténuation ou la neutralisation des expansions ou contractions importées (cas V à VIII), le sousemploi ou la demande excessive à l’intérieur (cas IX et X), et les fluctuations de conjoncture causées à l’intérieur (cas XI et XII). Ensuite, il est démontré que d’autres combinaisons de ces trois politiques peuvent réduire une inflation importée et accélérer ou ralentir l’accroissement économique sans causer des déséquilibres indésirables de la balance des paiements (cas XIII à XV).

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Resumen El grado deseable de flexibilidad en los tipos de cambio. — En el texto y el cuadro se explica, con qué combinatión de política cambiaria, política de demanda y politica de ingreso pueden corregirse desequilibrios de la balanza de pagos, que resultan de procesos interiores de expansión y contractión (casos I–IV), y qué combinaciones se prestan a la consecución de objetivos económicos domésticos, sin que surjan o se acrecienten desequilibrios de la balanza de pagos. Entre los objetivos domésticos que se consideran aquí figura la reductión o neutralization de procesos importados de contracción y expansión (casos V–VIII), de subempleo o exceso de demanda de origen doméstico (casos IX y X) y de fluctuaciones coyunturales provocadas desde adentro (casos XI y XII). Además se ense?a qué combinaciones de política cambiaria y de políticas monetaria y fiscal pueden combatir una inflatión importada y acelerar o retardar el crecimiento económico sin que surjan desequilibrios indeseados de la balanza de pagos (casos XIII–XV).

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Riassunto Il grado desiderabile della flessibilità dei cambi. — Nel testo e nella tabella vengono spiegate quali combinazioni di politica dei cambi, regolazione della domande, e politica dei redditi sono adatte a correggere squilibri della bilancia dei pagamenti che risultano da processi economici interni de espansione o di contrazione (casi I–IV) e quali combinazioni sono adatte a raggiungere obiettivi economici interni senza che siano creati o rafforzati squilibri della bilancia dei pagamenti. Degli obiettivi economici interni, che sono trattati in questo ambito, fanno parte l’attenuazione o neutralizzazione di importati processi di contrazione e espansione (casi V–VIII), sottoccupazione o eccesso di domanda fatti in casa (casi IX e X) e variazioni congiunturali causate all’interno (casi XI e XII). Inoltre vengono mostrate quali combinazioni della politica dei cambi con la politica monetaria e dei redditi sono adatte a combattere un’inflazione importata e ad accelerare o ritardare l’espansione economica reale senza che sorgano indesiderati squilibri della bilancia dei pagamenti (casi XIII–XV).

     

Biofuels technology development in Southern Africa

ABSTRACT

The benefits of biofuels depend on the feedstock, conversion pathway and local context. This paper assesses biofuels technology readiness and developments to provide foresight to biofuels development in Southern Africa. Efficient conversion pathways, coupled with biomass from waste or high-yielding energy crops, will reduce both the costs of biofuels production, and the environmental impacts. Compared to petroleum fuels, the current commercial biofuels (ethanol, biogas and biodiesel) typically offer carbon emission reductions of 30–50% but are marginally more expensive. The extent of biofuels market penetration will therefore be influenced by mandates (blending targets) and subsidies (green premium). Advanced biofuels promise greater efficiencies and carbon emission reductions at reduced cost but will require further research and development to reach commercialisation. If developed appropriately, biofuels can reduce carbon emissions and improve energy security, while enabling sustainable agriculture and improved natural resources management.     

Karl Pearson—The Scientific Life in a Statistical Age by Theodore M. Porter: A Review

Porter presents an excellent account of the young Karl Pearson and his extraordinarily varied activities. These ranged from the Cambridge Mathematical Tripos Exams to German history and folklore, and included free thought, socialism, the woman's question, and the law. Returning to science, Pearson produced the famous Grammar of Science . He decided on a career in statistics only at age 35. Porter emphasizes Pearson's often acrimonious but largely successful battles to show the wide applicability and importance of statistics in many areas of science and public affairs. Eugenics became a passion for Pearson. Avoiding all formulas Porter fails to give any concrete ideas of even Pearson's most important contributions to statistical theory. We try to sketch these here.     

Ad scepticism and retouch-free disclaimers: Are they worth it?

Abstract

The present study analyses the impact of ad scepticism on the way consumers perceive advertising and process its effects, and considers the influence of ad disclaimers. We conduct an experiment that explores three different contexts, namely (1) the total absence of ad disclaimers, (2) the presence of a retouch-free disclaimer and (3) the presence of a retouched disclaimer. By showing how ad scepticism fits in the advertising attitudinal approach, and how new digital developments affect consumers’ processing of advertisements, the results of this experiment can contribute to the marketing literature and clarify relevant topics for practitioners. This paper shows the significant influence played by ad believability and attitude towards the ad on behavioural intentions. This underlines, particularly for marketing practitioners, the importance of an ad’s believability and the credibility of its claims in the sales outcome. Most importantly, the framework offered by this paper shifts the attention towards the believability of advertising disclaimers aimed at clarifying the use of digitally enhanced images.     

On economic applications of the genetic algorithm: a model of the cobweb type

This paper explores the idea of using artificial adaptive agents in economic theory. In particular, we use Genetic Algorithms (GAs) to model the learning behavior of a population of adaptive and boundedly rational agents interacting in an economic system. We analyze the behavior of a GA in two versions of a model of the cobweb-type, one in which firms make only quantity choices, and the other one in which firms first decide to exit or to stay in the market, and subsequently decide how much to produce. We present simulations with different coding schemes and interpret the rather surprising differences between the results for different setups by employing the mathematical theory for GAs with state-dependent fitness functions. In particular, we explain the relationship between coding and convergence properties of GAs.     

Creating a global mindset

Why are some companies highly successful in spotting and exploiting global opportunities, while others mismanage them or miss them entirely? The answer could lie in the company's mindset, a topical subject currently doing the rounds at numerous executive education seminars. The term corporate mindset refers to how the company sees the world and how this affects its actions. For companies operating on a global scale, developing a global corporate mindset presents a formidable managerial challenge. The corporate mindset determines to what extent management encourages and values cultural diversity, while simultaneously maintaining a certain degree of strategic cohesion. Developing a global corporate mindset and a group of global managers as its main flag bearers has become a key prerequisite for successfully competing and growing in worldwide markets. © 2000 John Wiley & Sons, Inc.