An analysis of changes to a team-based incentive plan and its effects on productivity,product quality,and absenteeism

Using data from three production units of a large manufacturing plant that employs production teams in its assembly operations, this paper examines how changes made to an existing team-based incentive plan affects labor productivity, product quality, and worker absenteeism. The firm switched from a piece-rates contract and an attendance bonus and instituted a two tier incentive plan comprising two different but complementary performance-based bonus schemes: one tier based on individual team performance and the other tier on plant-wide performance. The incentives were introduced concurrently with management control initiatives intended to facilitate cooperation and monitoring among the teams. I find significant productivity gains and improvements in quality and absenteeism associated with the new incentive plan. These findings underscore two important points that have not been emphasized in existing empirical studies of incentive pay: incentive contracts for teams generate superior performance using combination of incentives, and the need to introduce organizational changes to facilitate cooperation and peer monitoring in tandem with incentive pay to capture greater incentive effects in team production.     

Valuation of projects with minimum revenue guarantees: A Gaussian copula–based simulation approach

This technical note presents a numerical simulation technique to perform valuations of infrastructure projects with minimum revenue guarantees (MRG). It is assumed that the project cash flows—in the absence of the MRG—can be described in a probabilistic fashion by means of a very general multivariate distribution function. Then, the Gaussian copula (a numerical algorithm to generate vectors according to a prespecified probabilistic characterization) is used in combination with the MRG condition to generate a set of plausible cash flow vectors. These vectors form the basis of a Monte Carlo simulation that offers two important advantages: it is easy to implement and it makes no restrictive assumptions regarding the evolution of the cash flows over time. Thus, one can estimate the distribution of a broad set of metrics (net present value, internal rate of return, payback periods, etc.). Additionally, the method does not have any of the typical limitations of real options–based approaches, namely, cash flows that follow a Brownian motion or some specific diffusion process or whose volatility needs to be constant. The usefulness of the proposed approach is demonstrated with a simple example.     

Deconstructing the Tower of Babel: a design method to improve empathy and teamwork competences of informatics students

The competence-based education recently launched in Spanish universities presents a set of abilities and skills that are difficult to teach to students in higher and more technologically-oriented grades. In this paper, a teaching intervention that is based on design methodologies is proposed, to upgrade the competitive capacities of computer engineering students. In particular, this intervention targets those aspects relating to working in multidisciplinary teams and to defining requirements based on the user’s empathy and knowledge. The main idea inspiring this technique is that the underlying challenge is a communication problem. As Brooks (1995) states in his book The Mythical Man-Month: Essays on Software Engineering, even a project having all of the prerequisites for success (a clear mission, manpower, materials, time and adequate technology) could fail as a Tower of Babel. The proposed technique through mixed methods has been evaluated with students enrolled in different courses, confirming the repeatability and validity of this method from quantitative measurement, from observation of the results, and from ascertaining the value perceived by students and their attitudes.     

Innovation dynamics and labor force restructuring with asymmetrically developed national innovation systems

The concept of National Innovation System (NIS) has gained a great deal of intellectual and practical attention over the past three decades. We present an endogenous growth model where the NIS of a country determines its accumulation of technological knowledge and the arrival rate of innovations depends on the distance from the technological frontier to the current technological development level (TDL) of the country. We show how, even within an ideal common market environment and despite the compensatory mechanism provided by migration and the advantage of backwardness enjoyed by the laggard countries, differences in TDLs among countries foster the economic stagnation of technological laggards. That is, the structural consequences derived from technological underdevelopment are persistent and not simply due to the depreciation of human capital, but to the absence of innovation incentives that follows. Numerical simulations and an empirical analysis are performed to illustrate the main results and relate them to the current European common market setting and the innovation policies of its members.     

First motorcycle-exclusive lane (Motovia) in Colombia: perceptions of users in Cali, 2012–2013

This study's goal was to evaluate the pilot exclusive lane for motorcycles (Motovía) in Cali, Colombia, from the perception of its users in 2012–2013. A cross-sectional study using roadside surveys plus a qualitative component of individual semi-structured interviews was carried out. Road users' perceptions were investigated before and after implementation of lane dividers (LD) and were compared with other roads in the city. Perceptions were compared using chi-square tests. In the study, 293 motorcyclists, 111 cyclists, and 115 automobile drivers were interviewed. Following the installation of the LD, the majority of motorcyclists and cyclists reported that LD made easier the driving maneuvers and decreased travel time, in contrast to perceptions of automobile drivers (p < 0.001). For most motorcyclists, the Motovia was considered as safe and effective, approving its continuity and replication. Half of automobile drivers and cyclists did not approve the installation of the Motovia due to travel time (drivers) and security issues (cyclists). Motovia is an option to enhance motorcyclists' safety on the road. It must, however, offer clear circulation alternatives for automobile drivers. According to users' perception, it is not safe for bicycles and other human-powered vehicles to share lanes with motorcycles. Further research about vulnerable road users' infrastructure is required.     

On competitive balance in the group stage of the UEFA Champions League*

This article examines competitive balance in the group stage of the UEFA Champions League over the last two decades (1999/2000–2017/2018). Competitive balance is considered both before and after a competition. Have the groups been designed in such a way as to ensure similar levels of competitive balance ex ante? Have the demonstrated strengths (ex post competitive balance) of the different groups been similar over each season? What is the relationship between the competitive balance in the designed groups and that achieved in the same groups after the competition? Are the performance achieved in terms of ex post competitive balance similar to ex ante competitive balance levels? We found that, despite expectations, the groups' ex ante competitive balance was not homogeneous. Although ex ante competitive balance serves as a good predictor, on average, of ex post competitive balance, we observed significant differences at the levels of group and seasons. Therefore, it is possible to improve the design mechanism of the groups that make up the group stage of the champions so that they are composed homogeneously in terms of ex ante competitive balance.     

Can tax regulations moderate revenue diversification and reduce financial distress in nonprofit organizations?

As a result of policies to reduce public deficit, nonprofit organizations have been forced to turn to charitable donations in order to diversify their revenue structure and thus reduce their levels of financial distress. Public administrations have supported this process through tax mechanisms designed to provide a legal framework that will encourage private philanthropy. Our aim is to analyse the role of nonprofit tax regulations in moderating the influence of revenue diversification on insolvency risk. To this end, we drew a sample of 406 nonprofit organizations located in Aragon and Navarre, two European regions with different tax regulations, for the period 2008–2018. Our results reveal that some tax regime requirements, such as the organizational purpose, minimum initial endowment, engagement in commercial activity, and accountability and monitoring standards, have a positive impact on revenue diversification and the reduction of financial distress and vulnerability. However, we also detect differences between regions which suggest that tax harmonization for nonprofit organizations remains a challenge.     

Exploring the intellectual structure of research in codes of ethics: A bibliometric analysis

In this study, we map the intellectual structure of the code of ethics research field by means of a co-citation bibliometric analysis. To date, this type of analysis is absent from the literature on codes of ethics. Previous literature reviews have clarified definitions, studied contents, and analyzed the effectiveness of codes of ethics. However, the qualitative nature of these reviews does not resolve fundamental issues for understanding the evolution and status of this research field. This study contributes to the field by providing a bibliometric review in which the main research areas, sources of knowledge, trends, interrelationships, and dissemination paths of the domain are shown. Our findings reveal four main lines of research in the field of codes of ethics: corporate agent behavior with respect to codes of ethics, content analysis, effectiveness of codes of ethics, and employees’ attitudes toward codes of ethics. We also show that the study of the contents of codes of ethics is the main connecting bridge in this area of knowledge. Finally, we identify upcoming research topics in the field such as cultural change, the defensive nature of codes of ethics, and the application of organizational theories to code analysis.     

Graduate employment: Does the type of higher education institution matter?

The paper analyses whether the type of institution from which students graduate has an impact on their unemployment propensity. It uses official data on the Portuguese higher education system, for 2018, at the program/institution level, which provides information on graduate unemployment, as well as demographic and socioeconomic background information. A fractional probit model on graduates’ propensity for unemployment is estimated. Results suggest that polytechnic graduates face higher unemployment propensity than university graduates, maintaining inequalities present in students’ previous trajectories. Policies targeting socioeconomic segregation need to address not only access to higher education but also the transition to the labor market.     

Envy-Free Solutions to the Problem of Room Assignment and Rent Division

Group Decision and Negotiation - We have 3 students who wish to share the rent of an apartment together. There is a problem. The bedrooms have different characteristics. How does one assign the...