Christian Grund, Dirk Sliwka and Krystina Titz
We analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of PA systems as intended by the firm and their actual…
Abstract
Purpose
We analyze the role of works councils for the use of performance appraisals (PA). We distinguish between the incidence of PA systems as intended by the firm and their actual implementation on the level of the individual employee.
Design/methodology/approach
We draw on two complementary data sets. These are the German Linked Personnel Panel (LPP), which combines firm-based information with information provided by several of those employees, and the German Socio-Economic Panel (SOEP), which is a representative longitudinal study of persons living in Germany.
Findings
We find that works councils tend to promote rather than restrict PA. Employees working in establishments with a works council are more likely to face a formal PA procedure. Works councils also act as a transmission institution for the actual use of an existing PA system – i.e. among the firms that claim to implement PA for all their employees, the likelihood of their employees actually having regular appraisals is substantially larger when works councils are in place. Moreover, the existence of works councils is positively related particularly to PA systems, which affects bonus payments.
Research limitations/implications
We contribute to the understanding of the work of works councils in firms. In more general, we shed light to the relation of industrial relations and human resource management in firms.
Practical implications
This result hints at a higher acceptance of PA systems in firms with works councils. It seems likely that the stronger formalization of such systems necessitated by codetermination laws increases the likelihood of supervisors consistently carrying out such appraisals.
Originality/value
We are the first who complement the analysis of the existence of HR practices (PA system) with its actual use for employees.
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Patrick Kampkötter, Jens Mohrenweiser, Dirk Sliwka, Susanne Steffes and Stefanie Wolter
The purpose of this paper is to introduce a new data source available for researchers with interest in human resources management (HRM) and personnel economics, the Linked…
Abstract
Purpose
The purpose of this paper is to introduce a new data source available for researchers with interest in human resources management (HRM) and personnel economics, the Linked Personnel Panel (LPP).
Design/methodology/approach
The LPP is a longitudinal and representative employer-employee data set covering establishments in Germany and a subset of their workforce and is designed for quantitative empirical human resource research.
Findings
The LPP employee survey applies a number of established scales to measure job characteristics and job perceptions, personal characteristics, employee attitudes towards the organization and employee behaviour. This paper gives an overview of both the employer and employee survey and outlines the definitions, origins, and statistical properties of the scales used in the individual questionnaire.
Practical implications
The paper describes how researchers can access the data.
Originality/value
First, the data set combines employer and employee surveys that can be matched to each other. Second, it can also be linked to a number of additional administrative data sets. Third, the LPP covers a wide range of firms and workers from different backgrounds. Finally, because of its longitudinal dimension, the LPP should facilitate the study of causal effects of HRM practices.
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Heba Abdelmotaal and Magdy Abdel-Kader
The purpose of this paper is to examine which firm characteristics affect the usage of sustainability incentives in executive remuneration contracts, and whether these…
Abstract
Purpose
The purpose of this paper is to examine which firm characteristics affect the usage of sustainability incentives in executive remuneration contracts, and whether these sustainability incentives have an impact on shareholders’ return.
Design/methodology/approach
The analysis is based on a sample of 212 firms from the FTSE 350 firms over the period of 2009-2011.
Findings
The results indicate that there is a significant relationship between the adoption of sustainability incentives in executive remuneration and firm size, compensation committee independence, the corporate social responsibility (CSR) sustainability committee, CSR sustainability index, and resource efficiency policy variables. Further, there is evidence to support a positive impact on the shareholders’ return.
Research limitations/implications
The results of this study should be interpreted within two limitations. First, the limited numbers of the sample years due to the limited number of firms used sustainability incentives. Second, the use of a dummy variable in the measurement of the adoption of sustainability incentives in the analysis.
Practical implications
The paper includes implications for the development of sustainability incentives within the performance measurement system and compensation contracts that could be a solution for the agency problem.
Originality/value
This study provides empirical evidence on an increased use of sustainability incentives in UK firms, and identifies firm’s characteristics that explain such increase in the sustainability incentives, finally its positive impact on the shareholders’ return.
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Godwin Oscar Offong and Joyce Costello
The purpose of this paper is to investigate how individual attitudes toward using enterprise social media (ESM) impact trust, explicit and tacit knowledge sharing as well as work…
Abstract
Purpose
The purpose of this paper is to investigate how individual attitudes toward using enterprise social media (ESM) impact trust, explicit and tacit knowledge sharing as well as work performance in emerging economies.
Design/methodology/approach
The authors use data from a survey of 293 employed individuals in Lagos, Nigeria, who work at organizations that have ESM systems.
Findings
The authors find that ESM usage is significantly associated with trust. However, ESM usage does not impact explicit or tacit knowledge transfer.
Practical implications
This paper provides empirical evidence that individuals who perceive high levels of performance expectancy will engage in ESM usage which in turn increases trust amongst colleagues. Human resource managers can argue that by adopting ESM, they can facilitate improved trust and collaboration through online engagement amongst employees. This is important for multi-national organizations wanting to expand into emerging economies where the organization and local workforce need to foster trust in knowledge sharing.
Originality/value
There has been little evidence regarding HRM use of ESM in emerging economies. By understanding individual attitudes toward ESM and how the use impacts knowledge sharing, the academic discussions concerning use of technology to enhance knowledge sharing can continue to evolve.
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Hong Li, Changhong Li and Zhan Wang
The effective transfer of knowledge within an organization is critical for its sustainable competitive advantage. Based on the norm of reciprocity, it can be concluded that…
Abstract
Purpose
The effective transfer of knowledge within an organization is critical for its sustainable competitive advantage. Based on the norm of reciprocity, it can be concluded that individuals’ primary motivation to transfer their treasured knowledge can be summarized as “trust,” that is, the individuals trust their selfless transfer behavior can be reciprocated by the recipients in the future.
Design/methodology/approach
In this study, a simulation model based on knowledge transfer behavior and reciprocal trust between individuals is built through agent-based modeling and simulation to investigate the factors that influence the efficiency of knowledge transfer within an organization.
Findings
Experiments are performed to test the impact of reciprocal trust and organizational structure on the efficiency of knowledge transfer.
Originality/value
The results indicate a significant role of key elements of reciprocal trust and organizational structure, which provides relevant practical guidance for both individuals and organization managers in the context of knowledge transfer.