Merit pay,performance appraisal,and individual motivation: An analysis and alternative

Theories of motivation and common expectation argue that people who contribute more to an undertaking should receive more from it. This expectation has significantly influenced the design of compensation systems. Merit pay reflects this influence. Nonetheless, in spite of intuitive appeal and apparent theoretical support, merit pay rarely achieves its objectives. This article reviews five common implementation issues. It also argues that merit plans underemphasize important attribution biases that affect performance judgments. These biases suggest that such plans would still have limited effectiveness, even if implementation problems were overcome. The article presents an alternative focused on group accomplishment. © 1998 John Wiley & Sons, Inc.     

The relationship between gender,personal experience,and perceptions of sexual harassment in the workplace

In this study 352 working men and women responded to a questionnaire about their perceptions of what constituted sexual harassment. It was hypothesized that females, compared to males, would view ambiguous sexually oriented work behavior as more harassing. It was also hypothesized that those who had been a target of sexual harassment, compared to those who had not been a target, would view ambiguous sexually oriented work behavior as more harassing. Both hypotheses were supported. Additionally, after taking into account the effect of having been a target of sexual harassment, the effect of gender on perceptions of sexual harassment was found to be spurious. Implications for management and future research are discussed. An earlier version of this paper was presented at the 1993 Southern Management Association meeting in New Orleans.     

Workforce motivation in Japan: an examination of gender differences and management perceptions

As Japan enters the new century, pending workforce shortages – a function of low birth rates and an aging population – increase the need to address gender issues in organizations. Throughout the past four decades, the number of female workers in Japan has been growing, although full-time female participation in the Japanese workforce remains below the levels of some other industrialized nations. Despite the growing importance that the Japanese female labor force is expected to play, relatively little is known about women's attitudes toward work motivation in Japan. Using a two-factor, Herzberg intrinsic/extrinsic approach to motivation, we examine the applicability of such a model in Japan, and compare the attitudes of female and male workers, as well as management and non-management. Our findings include: (1) support for the applicability of a Herzberg, two-factor model in Japan; (2) Japanese men in the workforce tending to value intrinsic motivators more than extrinsic factors; (3) female workers in Japan rating extrinsic factors higher than their male counterparts; and (4) managers' opinions of what motivates employees not constituting a refined match to those of female employees, especially with respect to extrinsic motivation. In multi-gender Japanese organizations, management will potentially benefit from a better understanding and functional integration of important gender nuances into their motivation strategies.     

The paradox of gender voting: An exploratory analysis

Voting studies have documented that white collar workers tend to vote for conservative parties and blue collar workers for parties that advance working class interests. In the United States during the era (1980–1992) of Republican Presidents Reagan and Bush, women who worked in white collar jobs tended to vote for the Democratic party and men for the more conservative Republican party. This shift created the paradox of gender voting, which this article explains. The effect of gender on vote is small but attains statistical significance due to the suppressor effect of occupation. Two interpretations of the gender effect are tested: thematerialist holds that women's occupation and class identification affect this gap; thepost-materialist suggests that affluence is pivotal. The materialist interpretation fits the data from the survey of the national election of 1984 — the middle-most election of the three won by the Republicans— but the post-materialist interpretation may explain the vote of the very affluent.To Morris Rosenberg and Roberta Simmons, fine sociologists who clarified the suppressor effect and causes of self-esteem.     

Leader support for gender equity: Understanding prosocial goal orientation,leadership motivation,and power sharing

We focus on how interpersonal characteristics should influence leader support for gender equity in organizations. Recognizing gender disparities in organizations and the “labyrinth” that women face when they advance in their careers (cf. Eagly & Carli, 2007), we develop a model for how interpersonal characteristics of leaders, both men and women, influence power construal and thus their use of empowerment, mentoring, and performance feedback, ultimately affecting career opportunities for women in organizations. The model proposes that leaders who are high on communal goal orientation, a prosocial characteristic, are more likely to construe power through a responsibility lens and behave in ways that ultimately support gender equity in organizations. In contrast, leaders with an exchange goal orientation are more likely to construe power through a freedom lens and behave in ways that are self-serving. Prestige motivation will increase the extent to which leaders, especially those who are communally oriented, share power. Dominance motivation will increase the extent to which leaders, especially those who are exchange oriented, act in self-interest and retain power, ultimately imposing barriers to women's career advancement. Organizations can potentially increase leader power sharing by encouraging and reinforcing leaders' prosocial characteristics of communal orientation and prestige motivation. Implications for research and practice are discussed.     

Justice in the workplace: the centrality of social versus judgmental predictors of performance varies by gender

Men and women are said to perceive justice differently, with women proposed to be more concerned with relational issues and men focused more on material issues. In this study, the potential for differential effects of justice on performance by gender was analyzed across the four contemporary types of justice. Respondents were 265 male and 113 female occupationally diverse employees in a single organization. The results show significant differences in how men and women respond to the four justice types with only one – informational justice – acting similarly by gender. The differential relationships between each of the justice types and the outcomes by gender highlight the utility of the four factor approach to measuring organizational justice. Women were more interested in maintaining social harmony than men. The results appear to strongly support the use of the justice judgment model over the group-value model as a means of explaining the gender differences. Implications for management include the importance of informational justice both generally and within the performance appraisal process.     

Normative commitment in the workplace: A theoretical analysis and re-conceptualization

Among the components of the Meyer and Allen's [Meyer, J. P., & Allen, N. J. (1991). A three-component conceptualization of organizational commitment. Human Resource Management Review, 1, 64?89] three-component model of organizational commitment, normative commitment (NC) has received the least attention. It is sometimes dismissed as a redundant construct that bears many similarities to affective commitment and does not explain work behaviors beyond other components. In this review, we seek to re-establish the theoretical and practical significance of NC. We argue that NC has a dual nature and that it manifests itself differently depending on the strength of other components in an employee's commitment profile. NC can be experienced either as a moral duty or a sense of indebtedness, each having different implications for work behavior. Drawing on theories of perceived organizational support, motivation, psychological contracts, leadership, and culture, the paper justifies the distinction between two “faces” of NC, delineates organizational factors that could promote a more positive interpretation of NC, and proposes an agenda for future research.     

Contract design in dynamic agency: An experimental analysis

This paper reports results from an experiment studying contract design in a dynamic 2‐period agency relationship with unobservable effort. A deferred compensation contract is theoretically optimal—it places all incentives on the outcomes in the second period. Observed contract choices offer a substantial part of the incentives for the high outcome in the first period suggesting a strong preference for timely rewards. Information about theoretically optimal bonuses and effort decisions shifts contract choices towards a deferred compensation contract. This contract structure is more profitable for principal participants.     

The effects of cultural types on perceptions of justice and gender inequity in the workplace

This study uses the horizontal and vertical distinction within individualism and collectivism as a theoretical framework to predict differences in employee perceptions of organizational justice and gender inequity. In this study we survey 514 solicitors working in law firms in Hong Kong. Results of regression analysis indicated that horizontal-collectivism (HC) had a significant positive effect on procedural justice and vertical-individualism (VI) had a significant and positive effect on distributive justice. Vertical- and horizontal-individualism (VI and HI) had positive and significant effects on both perceived gender bias and perceived gender discrimination. We discuss the theoretical and practical implications of our findings and suggest future research directions.     

An HRM perspective on workplace commitment: Reconnecting in concept,measurement and methodology

Workplace commitment is viewed as an important mechanism connecting HRM practices with organizational outcomes, including performance. For this reason, commitment has emerged as one of the most significant and voluminous areas in HRM studies. Yet some of the key advances in the wider field of commitment have not been incorporate in studies of commitment in the HRM field. This is problematic as the body of work on commitment may develop separately from HRM research, wherein which the construct is so central. We seek to rectify this disconnected development through a systematic literature review which is targeted on three key threads, i.e., (1) definition and conceptual meaning, (2) multiple targets of commitment, and (3) the dynamics of commitment. These three threads are then connected to measurement and methodology, together providing the basis for a ‘toolkit’ for future research on commitment in HRM studies. Our review advances the field of commitment research in HRM by providing much needed conceptual, theoretical and methodological clarification, and by providing ways of bridging the gap and stimulating further research in this area.     

Convex incentives in financial markets: an agent-based analysis

We investigate whether convex incentive contracts are a source of instability of financial markets as indicated by the results of a continuous double-auction asset market experiment performed by Holmen et al. (J Econ Dyn Control 40:179–194, 2014). We develop a model to replicate the setting of the experiment and perform an agent-based simulation where agents have linear or convex incentives. Extending the simulation by varying features of actual asset markets that were not studied in the experiment, our main results show that increasing the number of convex incentive contracts increases prices and volatility and decreases market liquidity, measured both as bid–ask spreads and volumes. We also observe that the influence of risk aversion on traders’ decisions decreases when there are convex contracts and that increasing the differences in initial wealth among the traders has similar effects as increasing number of convex incentive contracts.     

Drug testing in the workplace: An overview of legal and philosophical issues

This article examines a range of legal and philosophical issues related to the drug-testing debate. The discussion of legal issues includes potential litigation on constitutional grounds (for public employees), statutory and tort grounds, or on the basis of civil rights legislation. Arbitration standards are also examined for situations involving unionized employees. The article further highlights pragmatic issues including the accuracy and costs (economic and noneconomic) of drug tests as well as the distinction between a positive drug test and impaired performance. Finally, the article addresses the delicate balance between an employer's right to unimpaired performance and an employee's right to privacy.     

Staffing and equipment decisions for services: An experimental analysis

Many service-oriented firms face demand/work load variations that occur both within and between days, and seasonally during the year. These service firms tend to develop staffing plans based on peak periods, resulting in substantial idle time during low demand periods. To counter this, some firms hire part-time employees to work peak periods to improve productivity. In this way, the cost per customer/transaction (unit) can be reduced.However, the staffing decision is more complex than just determining the number and timing of the work force. The development of good staffing plans must consider the impact of available work stations like telephone consoles and data entry terminals. To use effectively more personnel during peak periods, the firm must have sufficient work stations to assign this work force. Effective staff scheduling must consider simultaneously the work load variations, employ capabilities, and equipment requirements. This article presents a model that incorporates these factors into the decision-making process and examines their interaction.The model analysis illustrates how uncertainty in work load forecasts and staffing flexibility influence expected cost performance and equipment requirements. A set of computer simulation experiments are conducted using operating data from the proof and encoding departments for Ohio National Bank and Chemical Bank. The results suggest that increased staffing flexibility reduces the needed equipment investment, since part time staff can be scheduled more conveniently to meet varying work loads. Also, basing capital equipment decisions on peak work load levels can substantially increase total operating costs. With these costs explicitly estimated, managers can weigh them against desired service level goals to determine the appropriate balance.     

Leadership styles and gender: An extension

Leadership remains an elusive concept despite decades of research. In this paper, we attempt to deconstruct the concept by exploring the possibility of developing new measures of leadership, focusing on the attributes of “good” and “bad” leaders. Using a sample of 312 managers, we conducted factor analyses to reduce 13 “good” leadership attributes to two factors, the “visionary” and the “good,” and 13 “bad” attributes to two factors, the “inept” and the “evil.” Second, we assessed how male and female followers perceive the leadership styles of their best and worst bosses. We found that women viewed their best bosses differently from their male counterparts on several dimensions; however, there is little contrast in how bad bosses are perceived by men and women.     

Employee involvement and group incentives in manufacturing companies: a multi-level analysis

The effects of employee involvement and group incentives on organisational commitment and turnover intention were examined using data from a survey of over 4,000 employees in 29 manufacturing companies. Using the mediated moderation model, we investigated the moderating role of capital intensity on the relationships between employee involvement and group incentives and these outcomes, and the mediating role of organisational commitment on the effects of employee involvement and group incentives on turnover intention. The findings revealed that employee involvement is more effective in capital-intensive companies than in labour-intensive companies, but group incentives are more effective in labour-intensive companies. The moderated effects on turnover intention were mediated through organisational commitment. Implications for company policies and future research are discussed.     

Local employment, poverty, and property value effects of geographically-targeted tax incentives: An instrumental variables approach

The federal Empowerment Zone (EZ) program is a set of tax incentives targeted to areas of select cities. I estimate the effect of the EZ program on employment, poverty, and property values by comparing areas that received an EZ to areas that applied (and qualified), but were rejected. Because of endogeneity concerns, I use political representation to instrument for EZ designation. OLS results show a positive and statistically significant effect of the program on employment and poverty. IV estimates suggest the program had no effect on employment and poverty, and instead had a large statistically significant effect on property values.     

Skill gaps in the workplace: measurement,determinants and impacts

Optimal training decisions require employers to have accurate information about their workers’ training needs. However, little is known with regard to the key factors determining the accurate transmission of worker training requirements. Using one of the few linked employer–employee surveys in the world, the 2006 Irish National Employment Survey, this article identifies the key factors determining the correct identification of skill gaps within firms. The impact of skill gaps on average training expenditures and labour costs is also measured. The research finds that both HRM and collective bargaining arrangements are important factors in facilitating the accurate identification of skill gaps within firms. The analysis confirms that skill gaps are a key determinant of training expenditures and tend to raise average labour costs. Finally, the evidence suggests that employee perceptions of skill gaps may be prone to higher levels of subjective bias relative to those based on the employers’ views.     

Public service motivation and customer service behaviour: testing the mediating role of emotional labour and the moderating role of gender

ABSTRACT

Prior research indicates that public service motivation (PSM) provides a motivational base for effective emotion regulation. This study extends this body of research by investigating how service workers in different gender groups regulate their emotions during service transactions. Analysis of survey data from public service workers in Thailand showed that ‘deep acting’ is the primary emotional labour strategy-linking PSM and customer service behaviour (CSB), whereas ‘surface acting’ does not play a mediating role. The results further revealed that PSM has a stronger association with male workers’ CSB only via deep acting. Theoretical and practical contributions are discussed.