Talent or Not? Employee Reactions to Talent Identification

In this article, we examine the effect of talent identification on employee attitudes. Building on social exchange theory, we analyze the association between employees' perceptions about whether or not they have been formally identified as “talent” and the following attitudinal outcomes: commitment to increasing performance demands, building skills, and supporting strategic priorities; identification with the unit and the multinational enterprise; and turnover intentions. Our analyses of 769 managers and professionals in nine Nordic multinational corporations reveal a number of differences between employees who perceive that they have been identified as “talent” and those who either perceive that they have not been identified or do not know whether they have been identified. We found only limited differences between the two latter categories.     

How to prove,how to interpret and what to do? Uncertainty experiences of street-level tax officials

This study examines the kind of uncertainties frontline tax officials working with a trust-based inspection approach experience in interacting with citizen-clients. The classical literature on bureaucracy and the street-level bureaucracy literature suggest frontline officials face two kinds of uncertainties: information and interpretation problems. Analysing stories of Dutch frontline tax officials collected through in-depth interviews, this article shows that these two kinds of uncertainty only explain a part of the uncertainties experienced. Respondents also face action problems requiring improvisational judgements. The study furthermore finds that different sources underlie these uncertainties, pointing to possible explanations.     

Fetal protection policies: A threat to employee rights?

Corporations utilizing toxic substances in the workplace are faced with the possibility that the use of those substances will cause reproductive damage in their employees. In the face of complex and confusing government regulation on the issue and scientific uncertainty about the effects of many substaces, several major corporations have sought to minimize legal liability for any potential reproductive damage by excluding the fertile female worker from the workplace, Yet, by adopting such fetal protection policies, corporations have opened themselves up to a host of new problems and threatened the rights of workers.     

Numerical Maximisation of Likelihood: A Neglected Alternative to EM?

There is by now a long tradition of using the EM algorithm to find maximum‐likelihood estimates (MLEs) when the data are incomplete in any of a wide range of ways, even when the observed‐data likelihood can easily be evaluated and numerical maximisation of that likelihood is available as a conceptually simple route to the MLEs. It is rare in the literature to see numerical maximisation employed if EM is possible. But with excellent general‐purpose numerical optimisers now available free, there is no longer any reason, as a matter of course, to avoid direct numerical maximisation of likelihood. In this tutorial, I present seven examples of models in which numerical maximisation of likelihood appears to have some advantages over the use of EM as a route to MLEs. The mathematical and coding effort is minimal, as there is no need to derive and code the E and M steps, only a likelihood evaluator. In all the examples, the unconstrained optimiser nlm available in R is used, and transformations are used to impose constraints on parameters. I suggest therefore that the following question be asked of proposed new applications of EM: Can the MLEs be found more simply and directly by using a general‐purpose numerical optimiser?     

Not paying dividends? A decomposition of the decline in dividend payers

Current payout policy literature contends that firms’ propensity to pay dividends declined between 1978 and 1998. Using the Oaxaca decomposition methodology, we measure changes in the propensity to pay dividends between 1978 and 1998. Results suggest that firms today have only a slightly lower propensity to pay dividends. Furthermore, when we also categorize firms that use stock repurchases as dividend payers, we find that 100% of the decline in the proportion of dividend payers can be explained by changes in firm characteristics only. The difference is that firms that firms are now repurchasing stock instead of paying dividends.     

Capital Structure and Regulation: Do Ownership and Regulatory Independence Matter?

We study the effect of ownership structure and regulatory independence on the interaction between capital structure and regulated prices using a comprehensive panel data of publicly traded European utilities. We find that firms in our sample tend to have a higher leverage if they are privately controlled and regulated by an independent regulatory agency. Moreover, the leverage of these firms has a positive and significant effect on their regulated prices, but not vice versa. Our results are consistent with the theory that privately controlled regulated firms use leverage strategically to obtain better regulatory outcomes.     

To Screen or Not to Screen? Using the Internet for Selection Decisions

Organizations are increasingly relying on Internet searches and social networking websites to uncover detailed and private information about job applicants. Such Internet screening techniques have the potential to provide additional information beyond that found using traditional screening approaches. However, questions regarding the legality and appropriateness of this practice, as well as issues regarding the standardization, reliability, and validity of the information obtained, need to be addressed. The current work describes these issues associated with Internet screening and provides recommendations to help ensure this practice is used appropriately in organizations. Suggestions for future research on Internet screening are also discussed.     

Are human resource practices linked to employee misconduct?: A rational choice perspective

This paper explains how well intended HR practices associated with performance appraisal and compensation can be linked to employee misconduct. Based on a rational choice perspective to ethical behavior, different types of HR configurations are likely to either increase the perceived costs or benefits of employee misconduct. This paper links specific HR configurations with both perceived costs and benefits of employee misconduct. Finally, this paper concludes with recommendations that are designed to promote both effective job performance and minimize problems of employee misconduct.     

Trump’s New Trade Tariffs: A Response to Voters’ Demands?

President Trump has dramatically changed U.S. trade policy through the adoption of steep tariffs. We argue in this article that even when there are significant geopolitical reasons, Trump’s actions on trade are a response to internal demands resonant with a long history of protectionism. We provide clear evidence of the impacts of social demographics on U.S. trade policy and show that individuals from capital-intense regions with high educational attainment tend to support protectionism.     

Global growth to 2024: reversion to which mean?

• We expect global GDP growth to average 3.5% per year (at PPP exchange rates) over the next ten years. This is lower than the 3.8% recorded in 2000–14 though not dramatically so. There will be a modest recovery in advanced economy growth ‐ but not to pre‐crisis rates. Emerging market (EM) growth will slow but remain faster than growth in the advanced economies. And with EM's share in world GDP much increased from 10–15 years ago, EMs will continue to provide a large proportion of world growth.
• EM growth is expected to run at around 4.5% per year in 2015–24, well down on the 6% seen in 2000–14. This includes a slowdown from around 10% to 5–6% in China ‐ but China's share in world GDP has risen so much that China's contribution to world growth will remain very substantial.
• Advanced economies are forecast to grow by 1.9% per year in 2015–24, a big improvement from the 1% pace of 2007–14 (which was affected by the global financial crisis) but below the 1990–2014 average. Indeed, the gap between forecast G7 GDP and GDP extrapolated using pre‐crisis trends in potential output will remain large at 10–15% in 2015–24.
• Global growth will remain relatively strong compared to much longer‐term averages: growth from 1870–1950 was only around 2% per year. But a return to such low growth rates looks unlikely; China and India were a major drag on world growth until the 1980s but are now fast growing regions.
• Our forecast is relatively cautious about key growth factors; the contribution of productivity growth is expected to improve slightly, while those from capital accumulation and labour supply fall back. Demographics will be a more severe drag on growth from 2025–40. Overall, risks to our long‐term forecasts look to be skewed to the downside.

     

Expatriate selection: back to basics?

Expatriate assignments are becoming increasingly unattractive to potential candidates making the unwieldy myriad of proposed selection criteria of decreasing practical value to internationally assigning firms. When the issue is more to find anyone willing to do the job rather than selecting the best candidate from a large pool of applicants, maybe basic personal characteristics can better guide corporations in their search for suitable expatriate candidates. To examine this proposition, a large sample of Western business expatriates in Hong Kong responded to a mail survey about their sociocultural and psychological adjustment. The results of the hierarchical regression analysis indicated that age had a positive association with general, interaction and work adjustment of the expatriates as well as with psychological adjustment. Gender was not associated with any kind of adjustment whereas being married had a positive relation with work adjustment. The implications for international firms of these results are discussed in detail.     

A resolution to the NPV–IRR debate?

Two criteria for choosing between capital investment projects are net present value (NPV) and internal rate of return (IRR). Sometimes they provide inconsistent rankings. This inconsistency sparked a debate about which criterion is better. The debate has lasted more than 100 years.This paper describes a new approach to the debate. The time value of money equation is a polynomial, and a polynomial of order n does not have a single root. It has n roots. The result of taking into account the n solutions for IRR is a new equation for NPV that suggests a resolution to the debate.     

State competition in higher education: A race to the top,or a race to the bottom?

How does competition affect higher education? This paper explores this question for public and private universities. Theory indicates that competition can push higher education policy in one of two different directions. On the one hand, competition may increase spending. For states, this would occur if states treat higher education as developmental; for private universities this would occur if they view spending as a means to attract students and prestige. On the other hand, competition may decrease spending if states treat higher education spending as redistributive, and competition may decrease spending by private schools if lower spending enhances their ability to attract students with low tuition. To determine which of these perspectives is most valid, we examine higher education policy choices in the 1980s and 1990s. We find that states appear to act as if higher education funding is redistributive while private schools appear to compete more on the basis of tuition than spending. These results demonstrate the important effects competition and governance structure have on higher education.Received: August 2001, Accepted: May 2002, JEL Classification: I2, I22, H72, I3     

Organizational culture and work–life integration: A barrier to employees’ respite?

Abstract

The management of work–life boundaries is portrayed in the literature as being a matter of individual choice. Accordingly, organizational influence has been underestimated. The first objective of this article is therefore to determine whether an organizational culture of integration (e.g. expectations about taking work home) can influence individuals’ ability to act on their personal preference for segmentation. The second objective is to determine whether a mismatch between culture and personal preferences can influence the emotional state of employees and, if so, in what way. A study of 243 employees showed that the perception of an organizational culture of integration reduced the effect of preference for segmentation on employees’ ability to detach themselves from work during rest periods. Further, a path analysis highlighted a moderated mediation, indicating that preference for segmentation was associated with reduced emotional exhaustion in employees by promoting a high level of psychological detachment, and this reduction was even stronger among those who perceived a weak culture of integration in their organization. This study proposes that jointly with individual preference for segmentation or integration, the norms and expectations of an organization have considerable influence on employees’ ability to detach and recover during non-work time.     

Measuring regional inequality: to weight or not to weight?

Measuring regional inequality: to weight or not to weight? Spatial Economic Analysis. When estimating regional inequality, many economists use inequality indices weighted by regions’ proportion of the national population. Although this approach is widespread, its adequacy has not received attention in the regional science literature. This paper proves that such an approach is conceptually inconsistent, yielding an estimate of interpersonal inequality among the whole population of the country rather than an estimate of regional inequality. Nevertheless, as a measure of interpersonal inequality, such an estimate is very rough (even misleading) and does not always have an intuitive interpretation. Moreover, population-weighted inequality indices do not meet the requirements for an adequate measure of inequality.