Hospital competition under pay‐for‐performance: Quality,mortality, and readmissions

Health outcomes, such as mortality and readmission rates, are commonly used as indicators of hospital quality and as a basis to design pay‐for‐performance (P4P) incentive schemes. We propose a model of hospital behavior under P4P where patients differ in severity and can choose hospital based on quality. We assume that risk‐adjustment is not fully accounted for and that unobserved dimensions of severity remain. We show that the introduction of P4P which rewards lower mortality and/or readmission rates can weaken or strengthen hospitals' incentive to provide quality. Since patients with higher severity have a different probability of exercising patient choice when quality varies, this introduces a selection bias (patient composition effect) which in turn alters quality incentives. We also show that this composition effect increases with the degree of competition. Critically, readmission rates suffer from one additional source of selection bias through mortality rates since quality affects the distribution of survived patients. This implies that the scope for counterproductive effects of P4P is larger when financial rewards are linked to readmission rates rather than mortality rates.     

Entry limiting agreements: First‐mover advantage,authorized generics,and pay‐for‐delay deals

During patent litigation, pay‐for‐delay (P4D) deals involve a payment from a patent holder of a branded drug to a generic drug manufacturer to delay entry and withdraw the patent challenge. In return for staying out of the market, the generic firm receives a payment, and/or an authorized licensed entry at a later date, but before the patent expiration. We examine why such deals are stable when there are multiple potential entrants. We combine the first‐mover advantage for the first generic with the ability of the branded manufacturer to launch an authorized generic (AG) to show when P4D deals are an equilibrium outcome. We further show that limiting a branded firm's ability to launch an AG before entry by a successful challenger will deter such deals. However, removing exclusivity period for the first generic challenger will not.     

New approaches to funding not‐for‐profit organisations

This paper seeks to record and to explain the enormous growth in interest over the last few years in the provision of loans and other investment to not‐for‐profit organisations. It argues that this funding development fills a gap in the market. It describes the following new approaches: social investment, the provision of ‘patient capital’, and an ‘investment’ or ‘venture philanthropy’ approach to grant making. The factors driving the growth in use of these approaches are examined and their relevance to fundraising charities considered. Finally, the paper discusses how key stakeholders including the government and charitable trusts are adapting to this new environment. Copyright © 2004 Henry Stewart Publications     

Police pay—contested and contestable

This article provides an analysis of developments in the determination of police pay since 1919. It reveals the contested nature of public sector pay setting where the government of the day pursues short‐term economic goals rather than taking a long‐term approach to staffing issues in essential public services. In the case of the police, the Police Federation of England and Wales (PFEW) has traditionally used both industrial and political methods to put pressure on key government decision makers. Developments reveal increasingly fraught relations between the police and the government, with the 2008 pay dispute in particular marking a new low point. Once it became clear after the 2010 general election that the government would ignore industrial pressure, then the Police Federation of England and Wales felt driven to increase the activities of its political arm. This ultimately backfired with the Plebgate scandal leaving them naked in the negotiating chamber.     

Managed activism: two union organising campaigns in the not‐for‐profit sector

Two union recognition campaigns are contrasted: one focusing on developing workplace activism but with little sectoral focus (a ‘bottom‐up’ campaign), and the other with a sectoral strategy and less emphasis on workplace campaigning (a ‘top‐down’ campaign). The outcomes indicate the need for approaches, which allow both a strong workplace activism and a clear sectoral strategy as both the ‘top‐down’ and ‘bottom‐up’ strategies present difficulties. Although there are positive outcomes in both campaigns, the cases show that unions seeking to represent the interests of previously unorganised groups of workers need influence at both the sectoral and workplace levels if they are to demonstrate their effectiveness.     

The diversification of charities: from religion‐oriented to for‐profit‐oriented fundraising

• Charities are increasingly relying on more complex and diversified fundraising structures to raise funds and attract benefactors. In adopting a historic perspective, this research identified five emergent fundraising structures, namely religion‐oriented, business‐oriented, marketing‐oriented, consumer‐oriented, and for‐profit‐oriented. The analysis critically evaluates the role that institutions and resources have played in each funding structure and draws conclusions concerning the management of charitable fundraising in a world where charitable fundraising, consumerism, and social media networking are increasingly entwined with the for‐profit motive.

Copyright © 2012 John Wiley & Sons, Ltd.     

The influence of external reference price strategies in a nonprofit arts organization's “pay‐what‐you‐want” setting

Nonprofit arts organizations face conflicting objectives to balance—or more specifically, to create—artistic and educational value and to generate financial income from various sources. Pay‐what‐you‐want (PWYW), a participative pricing mechanism where services have no fixed price and customers actively decide what to pay, is a novel pricing mechanism and is of high interest for organizations and researchers alike. Based on the concepts of loss aversion and gain, this study presents a field experiment to test the effects of different PWYW pricing strategies on the amount of money paid by visitors of a German photo biennial. Explicitly, the provisions of minimum, maximum, and suggested external reference prices are compared to a setting with no external reference prices. We test the derived hypotheses, discuss the results, and provide implications for future research, as well as for the management of nonprofit arts organizations.     

From Taken‐for‐Granted to Explicit Commitment: The Rise of CSR in a Corporatist Country

This article contributes to a thriving line of research that examines issue interpretation and social accounts in order to study the adoption and diffusion of organizational concepts and management practices. It employs the empirical example of the rise of corporate social responsibility (CSR) in Austria between 1990 and 2005 to investigate the complex role institutional pressures and social positions of actors play in the local adoption of globally theorized ideas. More specifically, the study reveals distinct patterns in rhetorical CSR adoption that illustrate the initial hesitation and reluctance of an established elite in the Austrian business community towards the Anglo‐American notion of ‘explicit’ CSR, while non‐elite actors who were less favourably positioned in the social order readily embraced the concept. It is in such a sense that CSR is nevertheless instrumentalized to challenge, reinterpret, or explicitly evoke the autochthonous idea of institutionalized social solidarity. Conceptually, this research takes into account social structure, actors' positions in the social order, and resulting divergent adoption motivations – i.e. the individual, yet socially derived, relevance systems of actors – and relates these to mechanisms and processes of institutional change.     

Creating customer value in the not‐for‐profit sector: a case study of the British Library

• Public sector organisations are being increasingly subjected to both legislative and competitive pressures forcing them to reconsider their relationships with users and customers (Chapman and Cowdell, 1998 ) in order to develop a more overt marketing orientation (defined as focusing on customer needs as the primary drivers of organisational performance (Jobber, 2004 )). The creation of customer value underlies the development of a meaningful marketing orientation, and is a nettle that more public sector and not‐for‐profit organisations will have to grasp. This article considers how a more marketing‐oriented approach was adopted by the British Library in order to clarify and communicate its value proposition to its identified target markets, and in doing so, hopefully achieving a sustainable competitive advantage on an ongoing basis.

Copyright © 2005 John Wiley & Sons, Ltd.     

Why aren't all Truck Drivers Owner‐Operators? Asset Ownership and the Employment Relation in Interstate for‐hire Trucking

Transaction‐cost and agency theorists have frequently cited trucks as prototypical user‐owned assets, and have consequently predicted a predominance of self‐employed drivers who contract with motor carriers. In fact, owner‐operators accounted for less than one‐third of US trucking activity conducted by large interstate trucking firms in 1991, a proportion that has changed little since deregulation. Given the predictions of organizational economists, why is self‐employment in the interstate trucking industry not the dominant organization form? We propose that transaction costs and agency costs are indeed important in the trucking industry. In the absence of externalities across hauls, contracting between carriers and owner‐operators is preferred for traditional agency reasons. However, when the outcome of one haul imposes externalities on other hauls or on the carrier's reputation, an owner‐operator will not internalize all costs associated with poor outcomes. Given problems of noncontractibility of maintenance effort, carrier ownership of the vehicle is the preferred organizational form in such a case. We also propose that vehicle idiosyncrasy can create thin market conditions that encourage carrier ownership of vehicles. A study of the organization and operations of 354 trucking firms for 1991 provides evidence consistent with these predictions.     

The growth of the Internet,digital television and mobile telephony and the implications for not‐for‐profit marketing

This paper looks at what is currently known about who uses the new technologies and how they use them. It also sets out the current information available about the use of these technologies by the not‐for‐profit sector as a whole. The final section sets out the implications of these new technologies for not‐for‐profit marketers and the potential benefits for organisations that embrace and develop the new technologies. While the data presented focuses on the UK, the implications for not‐for‐profit marketing are relevant wherever the penetration in these technologies is high. Copyright © 2001 Henry Stewart Publications     

Too Good to be True: Board Structural Independence as a Moderator of CEO Pay‐for‐Firm‐Performance

Whether voluntary or mandatory in nature, most recent corporate governance codes of best practice assume that board structural independence, and the application by boards of outcome‐based incentive plans, are important boundary conditions for the enforcement of Chief Executive Officer (CEO) pay‐for‐firm‐performance; that is, for optimal contracting between owners and executive agents. We test this logic on a large Australian sample using a system Generalized Method of Moments (GMM) approach to dynamic panel data estimation. We find that Australian boards exhibiting best practice structural arrangements – those chaired by non‐executives and dominated by non‐executive directors at the full board and compensation committee levels – are no more adept at enforcing CEO pay‐for‐firm‐performance than are executive‐dominated boards. These findings suggest that policy makers' faith in incentive plans and the moderating influence of structural independence per se may be misplaced. Our findings also hold significant implications for corporate governance theory. Specifically, the findings lend further support to a contingency‐based understanding of board composition, reward choice and monitoring; an approach integrating the insights afforded by behavioural approaches to Agency Theory and by social‐cognitive and institutional understandings of director outlook, decision‐making and behaviour.     

论实现企业绩效管理的有效性

文章从几个方面讨论了如何实现企业绩效管理的有效性,一是营造良好的企业文化;二是确立企业战略目标并逐层分解;三是制定绩效计划并实施;四是及时公正地进行考核;五是正确运用绩效考核结果;六是配套制度体系的建设。     

Board Effectiveness and CEO Pay: Board Information Processing Capacity,Monitoring Complexity,and CEO Pay‐for‐Performance Sensitivity

We have developed an information processing theory of board effectiveness to examine board‐chief executive officers (CEOs) pay relations. We theorize that CEO pay reflects the information processing context of boards. Boards have limited information processing capacity and therefore prefer to use outcome‐based CEO pay when they have difficulty in processing information for monitoring their CEOs. Using a longitudinal sample of Standard and Poor's (S&P's) large‐, medium‐, and small‐cap manufacturing firms in the United States from 1998 through 2005, we found support for our theory. Large boards and boards in less complex monitoring contexts tend to link CEO pay less tightly to firm performance by providing less stock‐based incentives, and the tendency of large boards to decrease outcome‐based CEO pay is even greater when boards are not busy or when boards are in less complex monitoring contexts. © 2015 Wiley Periodicals, Inc.     

High‐performance work systems and workplace performance in small,medium‐sized and large firms

This article draws on the Organisational Growth and Development (OGD) life cycle model to explore the relationship between high‐performance work systems (HPWS) and performance in firms of different size, thereby extending understanding of congruence or ‘best fit’ theory within strategic HRM debates. With reference to management control theory, economies of scale and the availability of specialist managerial skills, the article hypothesises that while an HPWS–performance relationship might exist in small, medium‐sized and large firms, the relationship will be stronger in large firms than in both small and medium‐sized firms, and stronger in medium‐sized firms than in small firms. Analysis of data from the British Workplace Employment Relations Survey demonstrates, however, that there is no association between HPWS and workplace performance in medium‐sized firms, in contrast to the positive relationship between HPWS and performance found in large firms and between HPWS and labour productivity in small firms.     

Evaluating Form and Functionality of Pay‐for‐Performance Plans: The Relative Incentive and Sorting Effects of Merit Pay,Bonuses, and Long‐Term Incentives

Using two‐year longitudinal data from a large sample of US employees from a service‐related organization, the present study investigates the relative effects of three forms of pay‐for‐performance (PFP) plans on employees’ job performance (incentive effects) and voluntary turnover (sorting effects). The study differentiates between three forms of pay: merit pay, individual‐based bonuses, and long‐term incentives. By definition, these PFP plans have different structural elements that distinguish them from each other (i.e., pay plan form) and different characteristics (functionality), such as the degree to which pay and performance are linked and the size of the rewards, which can vary both within and across plan types. Our results provide evidence that merit raises have larger incentive and sorting effects than bonuses and long‐term incentives in multi‐PFP plan environments where the three PFP plans are operating simultaneously. Only merit pay has both incentive and sorting effects among the three PFP plans. The implications for the PFP‐related theory, as well as for the design and implementation of PFP plans, are discussed. © 2015 Wiley Periodicals, Inc.     

Unspeakable September 11th: Taken for‐granted assumptions,selective reality construction and populist politics

The interplay of private and public reactions to the crisis of September 11th in New York is analyzed as an example of well‐functioning populist politics. Using material from observations, interviews and a content analysis of The New York Times obituaries, the sequence of reactions to the catastrophe of September 11th 2001 in New York City is described. The wish for nearness and reassurance was followed by a wish ‘to do something’. The latter, by necessity frustrated for most, was turned into identification with the new heroes who could ‘do something’: fire‐fighters, steel‐workers, and the politicians who presented themselves as organizers of their efforts. Analysis then concentrates on how these ‘private wishes’ were used for ‘public politics’ of a populist kind. Cultural norms and assumptions about family, community and masculinity were utilized for the mobilization of political attitudes of patriarchal protection, patriotism and retaliation. Social differences of victimization were denied (where in fact it can be shown that the financial upper class paid the highest toll) with the effect of creating the perfect ‘populist moment’ out of the situation on the basis of actual needs and sentiments. La combinaison des réactions individuelles et publiques à la crise new‐yorkaise du 11 septembre est analysée comme exemple de politique populiste réussie. A partir d'informations provenant d'observations, d'entretiens et d'une analyse de contenu des nécrologies parues dans The New York Times, la succession de réactions à la catastrophe du 11 septembre 2001 est décrite dans la ville de New York. Le souci de rapprocher et rassurer a été suivi d'une volonté de ‘faire quelque chose’. Cette dernière, frustrée par nécessité pour la majorité, s'est changée en identification aux nouveaux héros qui pouvaient ‘faire quelque chose’: pompiers ou métallurgistes, et politiciens qui se présentaient comme organisateurs de leurs efforts. L'analyse se consacre ensuite à la façon dont ses ‘aspirations privées’ ont été utilisées en faveur d'une ‘politique publique’ de type populiste. Normes culturelles et postulats sur la famille, la communauté et la masculinité ont été exploités pour mobiliser des attitudes politiques de protection patriarcale, de patriotisme et de revanche. Les différences sociales des victimes ont été effacées (alors qu'en fait, on peut montrer que la classe financière supérieure a payé le plus lourd tribut), créant ainsi, à partir des circonstances, le parfait ‘moment populiste’ fondé sur des besoins et sentiments réels.     

The impact of employee‐share‐ownership schemes on performance in unionised and non‐unionised workplaces

Conventional wisdom suggests that higher performance is observed when employee‐share‐ownership (ESO) schemes coexist with employee participation arrangements. However, the evidence is inconclusive and it has been suggested that performance benefits occur in ESO workplaces only when employees are actually involved in the decision‐making process. Drawing on the cross‐section data from the 1998 Workplace Employee Relations Survey, the article shows that higher productivity is observed in those workplaces where unions coexist with ESO schemes. This result highlights the relevance of unions to High Performance Work Systems.