Confidence Management: On Interpersonal Comparisons in Teams

Organizations differ in the degree to which they differentiate employees by ability. We analyze how the effect of differentiation on employee morale may explain this variation. We characterize sufficient conditions for the manager to refrain from differentiation. She refrains from differentiation when employees are of similar ability, especially if absolute levels are high. Avoiding differentiation boosts the self‐image of employees. To limit the negative effects of differentiation, the manager's strategy often relies on the coarsest message set possible. The likelihood that the manager differentiates depends on the presence of synergies between employees and on the convexity of the cost of effort function. Finally, we show that in the absence of commitment no differentiation is chosen too often.     

UML modelling concepts of HAZOP to enhance the ability to identify emerging risks

Unified Modelling Language (UML) has a graphical notation for 13 different types of diagrams and can be used as a general modelling tool. Well-known examples of diagram types are class diagrams for modelling classes that can be instanced into objects, state machine diagrams for modelling states in systems and activity diagrams for modelling process flows. A literature survey shows that UML has been used to model concepts and methodologies of risk assessment and risk management. One example is the Coras Framework. The international standard CEI IEC 61882 Hazard and operability (HAZOP) studies describes concepts for investigating and detecting possible hazards in systems. In CEI IEC 6882, guide words like ‘More’ and ‘Less’ are applied to system parameters to invoke deviations in the system and assess possible hazards due to the deviation from the design intent. In this paper, we have used UML to model concepts of CEI IEC 61882 Hazards and operability studies. Diagrams of UML were used to show dependencies and relations between parts of the target system and concepts of CEI IEC 61882. Extensions of UML are suggested to better capture and display the concepts of CEI IEC 61882, the results of a HAZOP study and emerging risk. These extensions are referred to as UML for emerging risks (UML-ER).     

Japanese Professional Business Services: A Proposed Analytical Typology

This paper explores certain characteristics of Japanese professional business services (PBS). The aim is to develop an analytical typology consisting of the three dimensions – organizational linkage, service market, and competitive situation – for analysing the obtained empirical data. This typology has been developed in order to increase the understanding of how Japanese companies operate within this sector and also to examine the reasons behind the fact that Japanese business services seem to be marginalized in an international context. This typology could serve as a theoretical frame for comparing Japanese companies with western companies in future research. This research is based on empirical material collected in Japan in the spring of 2001, covering research institutes, general trading houses and insurance companies. Using the constructed analytical typology, the findings reveal that strong organizational linkages have generated a business service market where diversification of service supply within companies is common. However, there are strong indications of a changing business environment with increased competition and further specialization among business service firms. Furthermore, the findings indicate that Japanese companies have difficulties competing with highly-specialized and reputable western business service firms.     

Neither State nor Market: The Influence of Farmers' Organizations on Agricultural Policies in Costa Rica

In recent decades, policies in many countries have been shaped by the implementation of economic liberalization, characterized by state withdrawal from marketing operations and control of trade. In this era of liberalization, policies regulating commodity marketing and trade were expected to disappear, but, in fact, this has hardly occurred. A comparative study is carried out of three farm sectors in Costa Rica, based on a dynamic analysis of behaviour in the context of the institutional change brought about by liberalization. The capacity of farmers' organizations to adapt and contribute to institutional change through their control over economic activity and their participation in policymaking processes is highlighted. In so doing, it is shown that, even in a liberalized era, policies regulating marketing and trade still exist and affect the functioning of agricultural markets. These policies differ according to the farm sector and can be linked directly to the influence of farmers' organizations within these sectors. It is shown that organizations play a key role in the regulation of farm sectors, and that their success depends on the institutional and organizational “thickness” to which they have contributed in each sector. Differences in historical trajectories can explain differences in the capacity of organizations to influence policymaking and to gain market share.     

Emerging issues in white space regulation

The secondary use of vacant television channels (TV white spaces) and the reallocation of the digital dividend to provide wireless broadband services are in the final stages of implementation in some countries. Originally seen as a once in a generation opportunity to better allocate UHF spectrum, further digital dividends are now underway as regulators and industry strive to meet exponential increases in demand for mobile data services. Concurrent developments suggest that TV white spaces may be rapidly exploited by global networks with billions of supported devices. The potential for sub-optimal outcomes is identified if the prospect of further digital dividends is not taken into account as technical and regulatory arrangements are put in place to allow productive use of TV white spaces. The importance of considering the potential interaction between further digital dividends and the use of TV white spaces is discussed and technical and regulatory approaches to support optimal outcomes are identified.     

Politics in wage setting: does government colour matter?

This paper studies the relationship between wage formation and the political colour of the government in an economy with a centralized wage bargaining system. Ideological, organizational and personal ties between the central trade union and the social democratic political party suggest that the trade union may behave significantly different in wage negotiations under a social democratic than under a conservative government. Using time series data for Norway, we estimate that changing from a conservative to a social democratic central government significantly reduces manufacturing wages and makes wages more responsive to unemployment. This result is consistent with a wage bargaining model augmented by political preferences of the union leaders and suggests that the effect of bargaining coordination depends on the political colour of the government. The estimated effects are both robust with respect to model specification and stable over time. We are grateful to Fredrik Wulfsberg, participants at seminars in Trondheim and Oslo, and an anonymous referee for valuable comments.