Exploring talent management in India: The neglected role of intrinsic rewards

The challenge of global talent management is critical to firm success. Even with the global economic slowdown of 2008 and 2009, there are continuing challenges in attracting, managing, and retaining talent, especially in the developing regions of the world where economic activity has outpaced the availability of skilled employees. To examine this situation, we develop and test a model of talent management across 28 Indian firms involving 4811 professional-level employees. The intrinsic rewards experienced are a critical element in employee retention, satisfaction with the organization, and career success. We explored four antecedents of intrinsic rewards: the social responsibility of the employer, pride in the organization, manager support, and performance management (PM). We found support for the importance of intrinsic rewards as a mediating variable, as well as for the moderating role of certain hygiene factors. Our research suggests multinational, international, and national employers may have non-pecuniary mechanisms to promote retention and employee satisfaction, even in challenging labor market environments. We conclude by proposing implications for research and global HRM practices.     

自助式整体薪酬及其在我国的适用性研究

在激烈的市场竞争中 ,健全的薪酬体制是吸引、激励、发展与留住人才最有力的工具。而传统的薪酬设计理念已经不能满足现代高素质员工个性化的需求 ,本文就如何强化薪酬的激励功能 ,如何吸引人才探讨了一种全新的薪酬管理模式———自助式整体薪酬 ,它把薪酬的各项要素有机地整合到一起 ,更突出以人为本的经营理念 ,在企业竞争中显现出了独特的魅力。     

Personal characteristics of salespeople and the attractiveness of alternative rewards

How do personal characteristics of salespeople affect their desire for the various rewards available to them? Do younger salespeople desire different types and levels of rewards than older salespeople? Are there differences due to job tenure, marital status, family size, and so forth? In this article, the authors attempt to answer these questions. Based on an extensive investigation of the industrial sales forces from two large companies, the authors examine the relationship between personal characteristics and the sales force's valence for various rewards. Although some of the findings are consistent with current sales management practices, some are not, suggesting that present day thinking with respect to the design and administration of rewards may need more careful scrutiny.     

The risks and rewards of design investment

Cutbacks in design investment are often made in a time of recession because managers, when faced with competing demands, are unaware of the commercial value of such investment The research reported in this paper investigated the risks and rewards of investing in professional design expertise at a project or product level and found that such investment involves relatively low risks and can yield substantial rewards by opening up new markets and enhancing profitability However, management skills are needed to fully exploit design expertise Proper briefing of designers, regular communication between marketing, design and production, and effective project management can make the difference between success and failure     

Managing loyalty program communications in the digital era: Does culture matter?

This research addresses an important, yet under-researched, issue concerning the real-time management of loyalty programs (LPs) in the digital era: how to leverage culture-specific communications to motivate LP members to pursue and redeem program rewards. Two experimental studies in different LP contexts provide corroborating evidence that to-date (to-go) progress feedback is more effective in motivating consumers from individualist (collectivist) cultures to pursue LP rewards. Moreover, process evidence suggests that these culture-specific progress framing effects are driven by individual differences in regulatory focus and realized through perceived reward attainability. Overall, this paper contributes to the LP and goal pursuit literatures by verifying that communication framing is an effective means to strengthen reward pursuit motivation.     

How special rewards in loyalty programs enrich consumer–brand relationships: The role of self-expansion

Although brands offer different kinds of rewards through their loyalty programs, little is known about how they can impact consumer–brand relationships and brand attitude. How do loyalty program rewards influence the consumer–brand relationship? And which kinds of rewards establish or maintain closer relationships between consumers and brands than others? To answer these questions, the present research makes use of self-expansion theory (Aron & Aron, 1986) and two experiments that manipulate the extraordinary character of rewards offered to consumers. Our findings show that special rewards produce higher self-expansion than mundane rewards. Moreover, the positive effect of the rewards’ extraordinary character on brand evaluation, recommendation, and identification is sequentially and fully mediated by self-brand inclusion and self-expansion. Finally, we show that consumer satisfaction moderates the impact of special and mundane rewards on self-brand inclusion.     

When giving money does not work: The differential effects of monetary versus in-kind rewards in referral reward programs

Customer referral reward programs have recently gained popularity as beneficial customer acquisition tools. This research aims to explore the impact of reward type, specifically with regard to the differential effects of monetary versus in-kind rewards, on referral success. We find that although consumers prefer monetary rewards to in-kind rewards because of the greater economic value of monetary rewards, the higher social costs associated with money offset this benefit and even render money an inferior incentive when the recommendation is not well justified. Through four experiments, we demonstrate that monetary rewards (vs. in-kind rewards) lead to less referral generation and acceptance, especially when the recommended brands are weak (Studies 1 and 4), and that perceived social costs mediate the interactive effect of reward type and brand strength (Studies 1 and 3). Moreover, by increasing the economic benefit or decreasing the social costs associated with monetary rewards, we restore the effectiveness of monetary rewards as incentives. Compared with in-kind rewards, monetary rewards perform equally well when the reward is sufficiently large (Study 2), and they perform even better when both the recommender and the receiver are rewarded (Study 3). This research extends the literature on the psychological consequences of money and provides novel insights into the customer referral process.     

Do reward programs build loyalty for services?: The moderating effect of satisfaction on type and timing of rewards

While reward programs have been widely used as a means to engender customer loyalty, it is not clear if the ends are justified. Some researchers argue that we do not fully understand the mechanism underlying reward programs and how it affects consumer acceptability of such programs. In this study, we examine two variables; timing (immediate vs. delayed) and type (direct vs. indirect) of rewards in two service conditions (satisfied vs. dissatisfied). We conduct the experiment in two service settings and the results indicate that when consumers are satisfied, they prefer delayed, direct rewards (of higher values) to immediate, direct rewards. However, when consumers are dissatisfied, they prefer immediate, direct rewards to delayed, direct rewards (of higher values). Interestingly, the preference for direct over indirect rewards is apparent only if the rewards are delayed (for the satisfactory service experience) or immediate (for the dissatisfactory service experience).     

Harnessing the creative potential of consumers: money,participation, and creativity in idea crowdsourcing

Given the growing importance of innovation and consumer engagement, many firms are strongly interested in finding ways to encourage their consumers to generate creative new product ideas for them in their crowdsourcing initiatives. To that end, managers often use monetary rewards—one of the most commonly used managerial tools to stimulate desired behaviors. A critical question in this respect is whether the use of monetary rewards is effective in stimulating creativity and, if so, how large those rewards should be. This study aims to answer these questions. The results of an experiment suggest that introducing monetary rewards does not contribute to the number of new product ideas generated by a single consumer or the novelty of his/her ideas, and when the reward is relatively small, it can even be harmful. Monetary rewards, however, are effective in encouraging widespread participation in crowdsourcing initiatives and improving the appropriateness of the new product ideas. As a whole, these findings take us a step further toward better understanding the motivational mechanisms of consumer creativity in new product ideation.     

A Note on the Use of Survey Research Firms to Enable Empirical Data Collection

This forward thinking article examines the risks and rewards of using survey research firms to enable empirical data collection, and issues a cautionary note about its application. An exposition and discussion of this form of data collection in supply chain management is relevant today, due to the “survey‐fatigue” among the population of business professionals from whom we seek a response. While this approach has some history in other disciplines, it is still relatively new among supply chain management researchers. To help supply chain management scholars assess the appropriateness of this type of data collection method, this forward thinking article provides invaluable guidance as derived from the authors' recent experiences with the approach. As such, we share our observations and lessons learned. The conclusion is that the use of survey research firms for empirical data collection can be a viable, alternative approach to self‐administered surveys. However, care should be taken in its application.     

Processes underlying the development and evolution of salespersonsõ job satisfaction/dissatisfaction: a conceptual framework

A conceptual framework of salesperson satisfaction/dissatisfaction is presented and is used to develop several research propositions. Drawing from organizational behaviour and sales management research, the model incorporates various theories of motivation and emphasizes the role of intervening variables thought to be especially important in the context of sales occupations. Finally, the model draws attention to the dynamic nature of the relationships between salespersons' efforts, performance, intrinsic and extrinsic rewards, and job satisfaction/dissatisfaction. Copyright © 2011 ASAC. Published by John Wiley & Sons, Ltd.     

Factors influencing employee perceptions of customer service climate

This study examines the relationships between certain organizational variables and employees' perceptions of the customer service climate in their organization. In addition, the role of organizational commitment in this process is examined. Results indicate that rewarding employees for service excellence, allowing their voice to be heard by upper management, providing employees with the information and technology needed to do their jobs, providing adequate training to customer contact employees, allowing employees enough time to get their tasks done, and providing a work environment conducive to getting work done are all positively associated with employee perceptions of customer service climate. Based on mediated regression and a LISREL analysis, these relationships are all found to be partially mediated by organizational commitment. These results are consistent with previous customer service research, which has found organizational support and rewards to be positively related to customer service. We extend this literature by showing that organizational commitment may be a key variable linking organizational support and rewards to customer service. Implications of these findings are discussed and suggestions for further research are offered.Lincoln National Corporation     

Drivers of radical and incremental creativity—A moderated mediation framework

Researchers establish that rewards play an important role in shaping employees' creative behaviors. However, little is known about the underlying mechanisms that transmit the effects of rewards for creativity on different types of creative behaviors. Drawing on the sense making perspective, this study identifies unique mediators and moderators of reward—creativity relationship. The results of this survey-based study, comprising of 220 independent employee - supervisor dyads, suggested that enjoyment in the activity mediated the relationship between intrinsic rewards and radical creative behaviors. Moreover, the interactional effects of extrinsic rewards and their perceived importance on creative behaviors were mediated through perceptions of climate for innovation. These results provide important insights and guide managers in promoting distinct types of creative behaviors.     

Peer Pressure in Voluntary Environmental Programs: a Case of the Bag Rewards Program

This paper studies stores that voluntarily reward consumers for changing their convenience-oriented, waste-increasing consumption behaviors. We focus on shopping bag rewards programs which encourage consumers to substitute reusable bags for plastic bags. Instead of assuming that consumers have environmental consciousness, we consider the peer pressure of participating in rewards programs among consumers as the driving force increasing the number of consumers behaving in environmentally friendly ways. The results show that rewards programs can be effective in reducing plastic bag users in the long term and can increase profits for the stores implementing them. Unlike former studies suggesting a plastic bag ban or levy to reduce plastic bag use, these findings suggest that the policymakers should support these long-term-effective bag rewards programs by educating consumers about the value of using reusable bags and offering subsidies for stores that implement bag rewards programs.     

The interaction of reward contingencies and causality orientation on the introduction of cooperative tactics in buyer–seller negotiations

This article reports results of an experiment designed to see if reward contingencies and individual differences in causality orientation can interact to affect the frequency with which buyers and sellers introduce cooperative tactics into a sales negotiation. A face‐to‐face simulation is employed to consider these effects. A 2 × 2 ANOVA (task‐contingent/task‐noncontingent rewards × control/autonomy orientation) tests this interaction. These two factors interact to affect cooperation. A buyer or seller with an autonomous causality, in a situation with task‐noncontingent rewards, is most likely to introduce cooperative negotiation tactics. Task‐noncontingent rewards are more effective than task‐contingent rewards for autonomous causality buyers and sellers, but not for control causality buyers and sellers. © 2001 John Wiley & Sons, Inc.     

Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs

Loyalty programs (LP) and rewards are ubiquitous in retailing, designed to increase customer expenditures and retention, gather abundant customer-level data, and design individually targeted coupons. Although studies have analyzed the individual impacts of LP rewards and targeted coupons on shopping trip incidence and expenditures, they have not compared the two instruments. By investigating the LP of a leading German grocery retailer that uses both LP rewards (points to redeem for free products) and individually targeted coupons, the current study establishes a comparison of their profitability and relative contributions to increasing shopping trips and expenditures. The investigated LP also relies on in-store kiosks to interact with customers, so they can decide when to redeem LP points and request coupons. By jointly modeling the effects of LP point redemptions and coupons on shopping trip incidence and expenditures, using their decision to access the kiosk as a dependent variable and rich data that span thousands of customers over 60 weeks, this study reveals that both instruments increase shopping trip incidence, kiosk access, and expenditures. The LP point redemptions have a stronger effect on shopping trip incidence; coupons have a stronger effect on kiosk access. Although a single redemption of LP points leads to a greater increase in expenditures than a single coupon redemption (€1.46 vs. €0.48), coupons yield three times greater expenditures after controlling for usage frequency; lower discounts also contribute to coupons’ higher profitability. Therefore, LP point redemptions and individually targeted coupons are complementary tools for retailers. This empirical study provides practical insights and pertinent managerial implications regarding the management and design of modern LPs.     

Convergence and interdisciplinarity in innovation management: a review,critique, and future directions

Knowledge integration in the interstices between different disciplinary fields is becoming a critical challenge to innovation management. As disciplines converge into new hybrid fields, such as information and communication technology or nano-biotechnology, it ultimately creates winners and losers, be they new firms that displace incumbents or individual scientists better positioned to reap rewards from new targeted grants. While received literature recognizes the importance of interdisciplinarity, little is known about its theoretical and conceptual antecedents. To meet this challenge, we first review and critique the literature on interdisciplinarity from a knowledge-based perspective, and, second, identify challenges for innovation management and formulate implications for further research. In particular, we outline how individual and team-level heterogeneity should be addressed. By adopting such a micro-level perspective, innovation management can embrace heterogeneity and effectively unlock the true value of interdisciplinary knowledge.     

Effects of organisational culture on brand portfolio performance

Many consumer goods firms have a wide brand portfolio. If these are not carefully managed, it can lead to brand proliferation, and result in complex organisational structure, lack of focus and resource constraints. Drawing on previous work on the role of leaders in effective brand management, this study explores the effects of organisational culture on brand portfolio performance. Based on a mail survey of consumer goods companies, the findings show that leadership, company vision, staff rewards, motivation and ownership are crucial to brand portfolio performance. Likewise, a brand orientation helps brand focus, coordination, and emphasises shared vision and the long-term orientation. This study contributes to the organisation-wide approach to brand portfolio management.