Efficiency with costly information: a reinterpretation of evidence from managed portfolios

We investigate the informational efficiency of mutual fund performancefor the period 1965-84. Results are shown to be sensitive tothe measurement of performance chosen. We find that returnson S&P stocks, returns on non-S&P stocks, and returnson bonds are significant factors in performance assessment.Once we correct for the impact of non-S&P assets on mutualfund returns, we find that mutual funds do not earn returnsthat justify their information acquisition costs. This is consistentwith results for prior periods.     

Employee References: Between the Legal Devil and the Ethical Deep Blue Sea

An employer asked to provide a reference for a former or departing employee is confronted with a number of complex legal and ethical concerns. The issue of references is always controversial, involving a balance of employers' fears of legal liability, interests in providing relevant information to prospective employers, and concerns for fairness to former employees. Recently this topic has been the focus of new attention as the result of a court decision holding a former employer legally liable for wrongs committed by a former employee in a new job. In that case, the former employer had provided a positive reference while neglecting to note certain negative aspects of the former employee'sperformance. This paper addresses legal and ethical aspects of the reference dilemma and incorporates responses of human resource professionals to the question of ethical reference policies and practices.     

Communicating With Employees: Building on an Ethical Foundation

The paradigm of work and the formal organizations within which people work are changing. Trends in organizations include less hierarchy, integrated structures, empowered employees, teams and teamwork, labor-management partnerships, and myriad other changes. Underlying all these changes is a new emphasis on values regarding how organizations function. Among the critical organizational functions to which the values framework applies is communication.Most models of internal organizational communication are adaptations of the existing model for communicating externally. These models fall short of what is needed to impact today's employees.The model presented in this paper is based on seventeen years of work in the transformation of large, complex organizations. Comparing classic models and theories of organizations with the characteristics and needs of high performance systems led to the development of a values-based, employee-driven communication model. The model includes a comparison of communication in both kinds of systems in terms of purposes, principles (The Seven Cs), content, and techniques.     

An analysis of substance abuse patterns, medical expenses and effectiveness of treatment in the workplace

This article examines the effectiveness of substance abuse treatment offered by the Members Assistance Program of a self-insured union welfare fund. The authors find that medical costs decreased dramatically for participants who were under treatment for at least one year.     

The Gordian Knot of Ethics: Understanding Leadership Effectiveness and Ethical Behavior

Recent ethical misconduct in American business has resulted in volumes of written commentary, various legislative responses, as well as litigation by those identified as victims. While legislators, judges, juries, and the Securities and Exchange Commission (SEC) pursue an increasing number of cases, there is little attention devoted to understanding what drives executives and other leaders to behave in ways that violate the ethical and legal standards of business in the United States. This understanding is a prerequisite to selecting leaders and designing interventions that prevent future misconduct. Understanding leadership’s nature and functioning is one key to understanding the ethical behavior of an organization as a system and of the people who lead the organization. Two models or frameworks provide the foundation for this paper. The first is a model of leadership competencies. This model identifies five key areas of competence related to overall, long-term leadership success. The second model targets leadership effectiveness. This model has three components – motivational patterns, decision criteria, and competencies. Using the Leadership Effectiveness Model to frame the discussion, the authors describe the nature and importance of the models, with particular focus on motivational patterns. Research suggests these patterns often account for 40–60% of overall leadership effectiveness. This article defines motivational patterns and describes key patterns that may impact ethical behavior of leaders. The article concludes with a discussion of how to use data on motivational patterns in leadership selection, development, and evaluation processes. Carl L. Harshman, Ph.D. is president of Harshman & Associates, Inc., an organizational and leadership development firm and founder of the Institute for Work Attitude and Motivation, an organization performance and research institute. He researches and writes in the areas of individual and organization performance, team development, and leadership and ethics. He can be contacted at carl@harshman.com. Ellen Harshman, Ph.D., J.D. is dean of the John Cook School of Business at Saint Louis University and associate professor in management. Her research interests include leadership, individual and organizational ethics, and issues in employment law. She can be reached at harshman@slu.edu.     

Charge profiles, RBRVS data and pre-estimates: a lesson in fee setting

The author describes a method of setting reimbursement levels that--especially when combined with a physician negotiation program--may be the most effective cost-control mechanism of any with its level of simplicity.     

Survivor bias and mutual fund performance

Mutual fund attrition can create problems for a researcher becausefunds that disappear tend to do so due to poor performance.In this article we estimate the size of the bias by trackingall funds that existed at the end of 1976. When a fund mergeswe calculate the return, taking into account the merger terms.This allows a precise estimate of survivorship bias. In addition,we examine characteristics of both mutual funds that mergerand their partner funds. Estimates of survivorship bias overdifferent horizons and using different models to evaluate performanceare provided.     

Keeping the Faith but Losing in Court: Legal Implications of Proselytizing in the Workplace

Proselytizing at work occurs when an employee tries to convince coworkers to change their religions. This presents an interesting set of legal issues, because some employees feel that proselytizing is a requirement of their religion. Therefore, they could perceive a prohibition on proselytizing at work as a discriminatory act against members of their religion. On the other hand, other employees may be offended by attempts to change their religious practices. These employees could perceive workplace proselytizing as religious harassment. Therefore, American employers have to adopt religious harassment policies that are much more complex than their sexual harassment policies. In this paper, we outline the components of a legally compliant religious harassment policy which balances the competing rights of proselytizers and their intended targets.