Profit Sharing and Training*

We analyze the impact of profit sharing on training intensity. Profit sharing may affect training because it is a credible commitment by firms to reward firm‐specific skills, may reduce turnover and leads to peer group pressure to participate in training courses. To eliminate possible selectivity effects, we combine matching with difference‐in‐differences. We identify the proportion of employees participating in profits and differentiate profit sharing according to the percentage of the workers covered. Using German establishment data we find that profit sharing only has a significant effect on training intensity if the majority of the workforce benefits from it.     

Pay knowledge,pay satisfaction and employee commitment: evidence from Finnish profit‐sharing schemes

Knowledge of the pay system has been identified as one of the key elements affecting the success of the reward system. In this paper, the aim is to study how communication, performance feedback and membership length are related to profit‐sharing knowledge, and how profit‐sharing knowledge is related to profit‐sharing satisfaction and organisational commitment. The data is collected from Finnish personnel funds, which are deferred profit‐sharing schemes. Survey data from over 753 employees in 30 companies in different sectors were used. In studying the antecedents of profit‐sharing knowledge, we found strong evidence that better profit‐sharing communication and higher membership length increase profit‐sharing knowledge. Furthermore, we find strong evidence that the relationship from profit‐sharing knowledge to commitment is mediated by profit‐sharing satisfaction. We discuss the implications for management.     

Peer‐to‐Peer File Sharing and the Market for Digital Information Goods

We study competitive interaction between two alternative models of digital content distribution over the Internet: peer‐to‐peer (p2p) file sharing and centralized client–server distribution. We present microfoundations for a stylized model of p2p file sharing where all peers are endowed with standard preferences and show that the endogenous structure of the network is conducive to sharing by a significant number of peers, even if sharing is costlier than freeriding. We build on this model of p2p to analyze the optimal strategy of a profit‐maximizing firm, such as Apple, that offers content available at positive prices. We characterize the size of the p2p network as a function of the firm's pricing strategy, and show that the firm may be better off setting high prices, allowing the network to survive, and that the p2p network may work more efficiently in the presence of the firm than in its absence.     

Peer pressure,incentives, and gender: An experimental analysis of motivation in the workplace

We present results from a real-effort experiment, simulating actual workplace conditions, comparing the productivity of workers under fixed wages and piece rates. Workers, who were paid to enter data, were exposed to different degrees of peer pressure under both payment systems. The peer pressure was generated in the form of private information about the productivity of their peers. We have two main results. First, we find no level of peer pressure for which the productivity of either male or female workers is significantly higher than the productivity without peer pressure. Second, we find that very low and very high levels of peer pressure can significantly decrease productivity (particularly for men paid fixed wages). These results are consistent with models of conformism and self-motivation.     

When unfairness matters most: supervisory violations of electronic monitoring practices

This study examined the effects of different sources of monitoring information, quality of treatment and quality of decision‐making manipulations on perceptions of fairness and satisfaction with monitoring. Drawing on Blader and Tyler's four‐component model of fairness, participants were asked to rate their perceptions of fairness, satisfaction and intentions to comply with electronic performance‐monitoring policies that originated from formal organisational policies or from their direct supervisors. Results indicated that procedural justice violations originating from the supervisor (vs. formal organisational policy) led to lower perceptions of fairness and satisfaction with monitoring. Furthermore, the effect of procedural justice violations on compliance with monitoring was mediated by perceptions of fairness and satisfaction with monitoring. The present research has theoretical and practical implications for the design, implementation and communication of organisational electronic monitoring practices.     

What if the supervisor has a different gender? The roles of value fit,identification, and beliefs in gender equality

In the past decades, the number of female employees and managers has strongly increased in most developed countries. This demographic development emphasizes the importance to investigate gender dissimilarity between employees and their supervisor and how it can be managed to elicit beneficial gender dissimilarity effects on employees’ attitudes and interpersonal interactions. Past gender dissimilarity research often assumes women and men to have different values. Due to these value differences, women and men should be less satisfied with a supervisor who has a different gender. However, past research reported inconsistent gender dissimilarity effects on employees’ satisfaction and other work-related satisfaction variables. To clarify gender dissimilarity effects on employees’ satisfaction with their supervisor, we analyze the moderating role of an employee’s beliefs in gender equality. We further draw on social identity theory and investigate value fit with the supervisor and identification with the supervisor as underlying mechanisms of gender dissimilarity effects. To test our research model, we conducted a three-wave survey study with 463 employees. Value fit and identification with the supervisor mediated the relationship between gender dissimilarity and employees’ satisfaction with supervisor. This indirect relationship was only significant for employees with low beliefs in gender equality. This means high beliefs in gender equality can offset dysfunctional gender dissimilarity effects.     

The effects of major U.S. domestic airline code sharing and profit sharing rule

This paper presents a structural model of code sharing among major U.S. domestic airlines and estimates a profit‐sharing rule. The profit‐sharing rule between partner firms in code sharing is estimated at 0.92, which suggests that the operating carrier acquires around 92% of profits from a round‐trip, and the marketing carrier retains 8% as a commission fee. Meanwhile, the economies of code sharing reduces marginal cost, and firms are able to price at higher markups. This implies that demand increases and consumers have larger surplus if code sharing creates new products.     

A Multiple‐Group Analysis of Associations Between Emotional Exhaustion and Supervisor‐Rated Individual Performance: Temporary Versus Permanent Call‐Center Workers

This study investigates whether contract type (temporary versus permanent employment) moderates the relationship between emotional exhaustion and supervisor‐rated individual performance. Most temporary workers desire permanent employment, and this may drive them to uphold performance also when strained. This hypothesis was tested with multiple‐group analysis in a sample of 430 call‐center operators from five Portuguese organizations from different sectors. The results show that emotional exhaustion related negatively to supervisor‐rated individual performance among permanent workers, but not among temporary workers. Our conclusion is that the relationship between emotional exhaustion and supervisor‐rated individual performance is conditional upon contract type. © 2014 Wiley Periodicals, Inc.     

Otra Empanada en la Parilla: Examining the Role of Culture and Information Sharing in Chile and Australia

One of the biggest assets of a firm is its information base. Included in this information base is a knowledge of prior errors and failures. Extant research suggests that while the propensity to share “bad news” (i.e. a prior error) is dependent on the cost of sharing, the perceived value of that cost may be culturally dependent. One area of interest that has received substantial attention in the prior literature has been cross‐cultural differences in negative information sharing in general, as well as the particular context in which the individual's superior is either present or absent during the information‐sharing process. Our study examines the role of the two cultural values (individualism/collectivism and to a lesser extent power distance) in explaining national differences in information sharing. By focusing on a sample from Chile and Australia, we were able to remove the regional cultural dimension of face, which has been inherent in prior studies that used Greater China as the representative of a collectivist society. Results from our quasi experiment show that when a supervisor is present during information sharing, collectivist Chilean decision‐makers are more willing to share negative information with their colleagues than their counterpart and individualist Australian decision‐makers. Our results also show that when a supervisor is absent, both Australian and Chilean decision‐makers are willing to share more negative information but the increase in the Australian propensity is significantly greater than that of the Chileans.     

Finance Sector Wage Growth and the Role of Human Capital

We reveal the pervasiveness of the finance sector pay premium, across all OECD countries, as well as all sub‐sectors and occupations within the UK financial sector. Moreover, the UK premium has continued to rise despite the financial crisis. We show that earnings increase faster with value added in certain sub‐sectors of finance, compared to the general economy, providing evidence of profit‐sharing in these sub‐sectors. Other possible explanations, such as workers with higher qualifications or better cognitive skills, or technological change and differing job characteristics, can explain some of the finance sector pay premium, but are not sufficient on their own.     

Benefit Transfers in Italy: An Empirical Study of Mobility Lists in the Milan Area

This paper uses administrative data on mobility lists in the largest economic region of Italy, Lombardia, to test whether the more favourable treatment of older workers, who can draw benefits longer and transfer a larger sum to potential employers, affects in a positive way their hazard from unemployment into a permanent job. Our reduced form estimates show that older workers who draw benefits longer have a significantly lower hazard than their younger colleagues. The reduction in the hazard from unemployment is particularly pronounced for older women in the sample. Apparently, the negative effect of the treatment on the supply side, due to a higher reservation wage, prevails in our data over the positive effect, stimulated by the larger potential benefit transfers. We conclude that, if the aim of the policy is to increase the hazard from the list into a permanent job, the treatment should be modified either by reducing passive income support or by increasing the potential for benefit transfers, or, finally, by reducing the entitlement period.     

Peer pressure and social comparisons with heterogeneous ability

When workers' efforts are not contractible, we investigate whether the display of workers' efforts to coworkers influences wage and effort decisions. We find that employers mainly increase the wages offered to the more valuable workers when they are observed that increases the difference in wages in such setting. We find evidence of peer pressure and strategic complementarity in efforts. Additionally, low‐ability workers are more sensitive to peer pressure than their more productive coworkers, and these workers exert less effort with increases in the reciprocity of their coworkers. Finally, the display of workers' efforts to coworkers is detrimental to the employer's payoff but enhances efficiency.     

Using profit sharing to enhance employee attitudes: A longitudinal examination of the effects on trust and commitment

The ability of profit sharing to increase organizational performance via positive changes in employee attitudes has yielded mixed results. Drawing on principal agent, expectancy, and organizational justice theories, we assess how perceptions of profit sharing (capacity for individual contribution and organizational reciprocity) alter organizational commitment and trust in management using longitudinal data provided by 141 engineering employees. Favorable perceptions of profit sharing served to increase organizational commitment while only organizational reciprocity predicted trust in management. The relationship between organizational reciprocity and commitment was partially mediated by trust in management. Implications for the design of profit sharing initiatives are noted. © 2002 Wiley Periodicals, Inc.     

Perceived competence mobilization: an explorative study of predictors and impact on turnover intentions

The present study explores predictors of perceived competence mobilization, as well as their direct and indirect impact on turnover intentions. Findings from a survey of 840 employees of a public civil service organization support the predictions that perceived competence mobilization is positively related to intrinsic motivation, peer support and supervisor support, career system satisfaction, and pay system satisfaction. Moreover, findings indicate that there is a curvilinear relationship between self-efficiacy and perceived competence mobilization, and that medium levels of self-efficiacy are associated with higher levels of perceived competence mobilization compared to very low or very high levels of self-efficiacy. Furthermore, findings indicate that turnover intention is best predicted by intrinsic motivation followed by career system satisfaction, followed intrinsic motivation, and that perceived competence mobilization partly mediate the effects of some predictors.     

Intercultural competence and expatriates

This study examines the simultaneous effects of employees' fit with their organization, job and supervisor on their job satisfaction, organizational commitment and turnover intention in Turkish banks by paying special attention to the moderating role of perceived organizational support (POS) in these relationships. Survey data collected from 213 employees who work in five different banks operating in Istanbul, Turkey, show that employees' value fit with their organization increases their job satisfaction and organizational commitment significantly while having no direct effect on their turnover intention. The results also suggest a positive association between employees' fit with their job (needs–supplies fit) and their job satisfaction along with the negative, direct impact of job fit on turnover intention. The hypothesized relationships between employees' value fit with their supervisor and selected employee outcomes are not supported. With respect to the moderating role of POS, the overall findings indicate that a high level of organizational support suppresses the effects of employees' value fit with their organization on their job satisfaction and organizational commitment as well as reducing the relationship between their job fit and job satisfaction and turnover intention.     

Motivation to train from the workers' perspective: example of French companies

The success of a training programme is largely contingent on the beneficiary's training motivation. With a focus on instrumentality and self-efficacy, we have sought to explain motivation and to measure its effects on variation of knowledge acquisition and satisfaction with training. An empirical study of 335 workers sheds light on the importance of age, the role of the hierarchical supervisor and the manner in which training is portrayed. Voluntary participation, expressed by participation in decision making or consideration of requests, plays only a minor role in explaining the success of a programme.     

A simpler quality of e-life indicator: does the Internet have a positive impact on the quality of life in Taiwan

This research aims to restructure a Simpler Quality of e-Life Indicators (SEQOL) and use this simpler structure to understand whether the usage of computer and Internet will make impacts on quality of life in Taiwan. By using telephone interviews, 3,563 valid respondents, aged 15 and above with Taiwan nationality, were interviewed. After performing exploratory factor analysis, confirmatory factor analysis, reliability and validity assessment, a simpler factor structure of the SEQOL was formed. The new structure contains 24 items categorized into seven domains: Socioeconomic status, Selfesteem, Social competence, Life freedom, Community support, Psychological pressure and physical health. This research also found that gender divide on most domains did not exist. Those who are aged between 35 and 54 exhibit the highest satisfaction. Residents with university degree have the highest satisfaction on their quality of life and the residents of northern Taiwan have the lowest satisfaction. People who having computer at home show higher satisfaction on quality of life in dimensions of overall, Socioeconomic Status, Social Competence, Psychological Pressure, and Physical Health. On overall quality of life, there is no significant difference between Internet user and non user. But, People who having access to Internet show higher satisfaction on quality of life in dimensions of Socioeconomic Status, Social Competence, Psychological Pressure, and Physical Health, oppositely, have lower satisfaction on quality of life in dimensions of Life Freedom and Community Support.     

Resistance as emotional work: the Australian and Canadian non‐profit social services

Drawing on data collected as part of a larger qualitative study of the experience of restructuring in the non‐profit social services in Canada and Australia, this article argues that resistance, including social unionism, is often a complex form of emotional labour and a source of deep satisfaction for care workers in the non‐profit social services.     

Profit sharing with a contest among agents

We consider how an internal competition in the form of a contest among agents can be combined with profit sharing in team production. The principal can choose to share between the principal and the agents as well as the sharing rule with a competitive contest among the agents. We show that under some conditions, a pure strategy equilibrium of profit sharing exists. In equilibrium, internal sharing involves a contest that is more competitive than proportional sharing, and the principal can get higher profit compared to proportional sharing.     

A new approach to estimating a profit frontier using the censored stochastic frontier model

The translog profit functional form is widely used to study technical efficiency for banks. Although this functional form is known as being flexible, it is not applicable to those banks incurring economic losses. The recently developed approach, i.e., the censored stochastic frontier model (CSFM), by Tsay et al. (2013) appears to be superior to existing approaches, since CSFM does not need to transform negative profit into positive profit before taking the natural logarithm. The transformation with respect to the profit variable tends to bias the parameter estimates of the profit frontier and the subsequent profit efficiency measure. We show that the parameter estimates of CSFM have the desirable statistical properties. Moreover, empirical results reveal that the mean profit efficiency of CSFM is more robust than those models using transformed profits across the sub-periods 1991–1998 and 1999–2009.