The (potential) demise of HRM?

This article seeks to provoke that human resource management (HRM), both as an academic field of study and as a form of professional practice, is at risk of impoverishment. The main reasoning for this is because of ideological individualism and marketisation with an attendant neglect on wider organisational, employee, and societal concerns. Following a review of the context of financialised capitalism, three contemporary developments in HRM are used to illustrate the argument: reward strategies, talent management, and high performance work systems. Implications for the practice of HRM and the way the subject area is taught in mainstream business schools are considered.     

B2B relationship calculus: quantifying resource effects in service-dominant logic

Increasingly, knowledgeable business-to-business (B2B) customers and evolving customer needs are leading to seismic shifts in vendor–client interactions. Across industries, sellers are changing their business models from a simple goods orientation to a hybrid goods–services model, placing greater emphasis on delivering complete customer solutions. In such an environment, companies must find ways to prioritize investments in resource development. The service-dominant (S-D) logic framework offers significant insights into this challenge; however, these effects have not been tested quantitatively. This study addresses that gap, examining the influence of various seller resources on buyer satisfaction. An empirical analysis of buying organizations that purchased and implemented business intelligence systems finds that “augmented” operant resources that the buyers ascribe to the software’s sellers—resources that go above and beyond expectations—are the most significant predictors of both successful technology assimilation and overall customer relationship quality. In particular, an augmented operant resource reflecting a seller’s ability to see value creation opportunities from the buyer’s perspective (value mindset) has up to three times the effect on relationship satisfaction as “core” operant resources such as product-specific expertise or basic interpersonal service skills. These results can help sellers prioritize resource investments.     

Estimating the impact of showroom entertainment on the gaming volumes of Las Vegas hotel–casinos

Increases in showroom headcounts are found to increase casino gaming volumes in two Las Vegas Strip casinos. This study examines long-standing assumptions regarding the indirect contribution of investment-intensive showroom entertainment. Such contributions are difficult to measure and the literature contains no rigorously derived estimates of gaming contributions from in-house entertainment venues. Despite the paucity of research, gaming companies are willing to invest staggering sums in showroom entertainment, based in large part on the belief that traffic from these venues will increase gaming volumes. Using estimates produced by time series regression models, the two showrooms produced average gaming win contributions of $11.28 and $19.32, per paid showroom attendee. Based on these estimates alone, extravagant investment in showrooms would have to be justified by other means. Future studies aimed at understanding the showroom contributions to non-gaming profit centers and the role of showrooms in the high-roller's patronage decision are both recommended.     

Valuing the Longevity Insurance Acquired by Delayed Claiming of Social Security

Individuals can claim Social Security at any age from 62 to 70, although most claim at 62. We show that expected present value calculations substantially understate both the optimal claim age and the losses resulting from early claiming because they ignore the value of the additional longevity insurance acquired because of delay. Using numerical optimization techniques, we illustrate that the optimal claim age is between 67 and 70. We calculate that the amount by which benefits payable at suboptimal ages must be increased so that a household is indifferent between claiming at those ages and the optimal combination of ages can be as high as 19.0 percent.     

The performance of insolvency prediction and credit risk models in the UK: A comparative study

Theoretically-driven, market-based contingent claims models have recently been applied to the field of corporate insolvency prediction in an attempt to provide the art with a theoretical methodology that has been lacking in the past. Limited studies have been carried out in order directly to compare the performance of these models with that of their accounting number-based counterparts. We use receiver operating characteristic curves to assess the efficacy of thirteen selected models using, for the first time, post-IFRS UK data; and investigate the distributional properties of model efficacy. We find that the efficacy of the models is generally less than that reported in the prior literature; but that the contingent claims models outperform models which use accounting numbers. We also obtain the counter-intuitive finding that predictions based on a single variable can be as efficient as those which are based on models which are far more complicated – in terms of variable variety and mathematical construction. Finally, we develop and test a naïve version of the down-and-out-call barrier option model for insolvency prediction and find that, despite its simple formulation, it performs favourably compared alongside other contingent claims models.     

Veblen's critique of Marx's philosophical preconceptions of political economy

This paper explores some of the theoretical linkages between Thorstein Veblen and Karl Marx. Special reference is placed Veblen's criticisms of Marx and the Marxist tradition for adhering to the preconceptions of (a) the natural right of labour to the full product, and (b) the teleology of conscious agents directing action towards change. Veblen was incorrect to believe that Marx adhered to the natural right of labour thesis, but he was correct to assert that Marx utilized undesirable teleologies. Overall, however, Veblen was attempting to reformulate and modernise the materialistic conception of history through an evolutionary analysis of institutions. The two thinkers complement each other in important ways, although Veblen's analysis is more evolutionary, collectivist and holistic.