Nader Elsayed and Hany Elbardan
While there have been extensive empirical investigations of pay-performance sensitivity, the perspective of performance-pay has received less attention to date. While executive…
Abstract
Purpose
While there have been extensive empirical investigations of pay-performance sensitivity, the perspective of performance-pay has received less attention to date. While executive compensation is sensitive to firm performance, firm performance is also likely to be affected by executive compensation. Adopting multiple theoretical perspectives, the purpose of this paper is to examine whether executive compensation has a greater influence on firm performance or whether the latter has a greater influence on compensation.
Design/methodology/approach
Using data from a five-year period (2010-2014) for Financial Times and Stock Exchange 350 companies, the authors employ a set of simultaneous equation modelling to jointly investigate, after accounting for endogeneity problem, the mutual association of executive compensation and firm performance by employing four control variables (board size, non-executive directors, leverage and boardroom ownership).
Findings
The authors find strong evidence for the greater influence of executive compensation on firm performance than the pay-performance framework. This finding supports the tournament theory compared with the agency perspective.
Research limitations/implications
Inevitably, there are limitations in a wide-ranging study of this nature that could be addressed in future research. As any empirical study utilising company data, there may be concerns to the effect of survivorship bias and the manner in which companies have reorganised, if there is any, themselves during the period under examination. There are also issues as to missing data, some measures relating to both executive compensation and corporate governance are not provided by the BoardEx database.
Practical implications
The study results provide evidence that using the tournament perspective by remuneration committees as a guide for determining executive compensation helps in achieving better performance. This helps in developing appropriate mechanisms for setting executive remuneration.
Originality/value
This paper combines an empirical investigation of the frameworks of pay-performance and performance-pay and develops a system of six simultaneous equations to examine the associations between executive compensation and firm performance.
Details
Keywords
This chapter unpacks ‘design thinking’ as it relates to educational design, and highlights how developments in the field of Learning Design may be of assistance to educators…
Abstract
This chapter unpacks ‘design thinking’ as it relates to educational design, and highlights how developments in the field of Learning Design may be of assistance to educators. Design is defined as a creative, scientific, and complex process, underpinned by several design thinking qualities. Teaching, it is argued, should be positioned as a design science, based on its nature, practice, and intentions. Learning to design is characterized as a challenging pursuit that is supported through practice, refection, examples, and expert guidance. Based on the literature, the pursuit of designing for learning is explained as a process involving the creation of accessible and aligned designs that cater to students in order to achieve desired learning outcomes. Educational design models by Laurillard, Siemens, and Conole are contrasted and evaluated in order to critically reflect on the general utility of such models. The field of Learning Design is introduced as a discipline area that aims to help educators develop and share great teaching ideas. Six approaches that support the description and sharing of learning designs are briefly described (technical standards, pattern descriptions, visualizations, visualization tools, pedagogical planners, and the Learning Activity Management System) so as to illustrate how the Learning Design field has evolved and how educators can capitalize upon it. Directions forward are recommended, which center around reflection, collaboration, and a design orientation.
This study aims to explore different themes related to impostor phenomenon, as experienced by graduate students and postdocs in science, technology, engineering and mathematics…
Abstract
Purpose
This study aims to explore different themes related to impostor phenomenon, as experienced by graduate students and postdocs in science, technology, engineering and mathematics (STEM) fields.
Design/methodology/approach
Open-ended survey responses from 120 US-based participants from 40 states and Washington, D.C., describing an occasion when they felt like an impostor, were analyzed thematically.
Findings
Following content analysis, three themes emerged: occurrence, attribution and identity. While impostor-like feelings were experienced as early as high school or college, the majority experienced it during PhD application, on being admitted to a PhD program and throughout PhD training. The people experiencing impostor phenomenon attributed their achievements and success to others (other’s name, prestige, or connections, other’s mistake, other’s lies or misrepresentation, or other’s kindness) or self (self-inadequacy, pretense, luck or self-doubt) rather than their own hard work or ability. Gender-based and race/ethnicity-based identity also shaped the experiences of the impostor phenomenon.
Research limitations/implications
Open-ended survey responses varied in length and level of detail. Responses provided a one-time snapshot of a memory related to impostor-feelings that stood out, not indicating if the feeling persisted or evolved with time. The findings are not generalizable over a larger population.
Originality/value
This study identified multiple themes related to the impostor phenomenon not investigated before, enriching existing research while also providing methodological rigor for the development of follow-up studies.
Details
Keywords
Adopting a dual processing cognitive perspective, this study explores the decision-making processes past the start-up stage that small entrepreneurial businesses employ to grow…
Abstract
Adopting a dual processing cognitive perspective, this study explores the decision-making processes past the start-up stage that small entrepreneurial businesses employ to grow. The author examines how entrepreneurs evaluate and make decisions on growth opportunities in their business environment. The author uses cognitive style as a theoretical lens to capture differences in information processing, combining interviews and psychometric questionnaires to analyse cognitive styles. The longitudinal mixed methods approach illustrates the richness of the entrepreneur’s decision-making process, which the author tracks over a two-year period. The author determines how intuitive and analytical cognitive styles are used by entrepreneurs and the contribution these styles make to decision-making. The findings show that the two cognitive styles are versatile as entrepreneurs adjust and adapt their cognitive style over time, in keeping with the situational factors of their business environment. The author also finds marked differences between novice and mature entrepreneurs and that experienced entrepreneurs exhibited greater levels of cognitive versatility, which was directly linked to their prior experience. The study has significant implications for future research, which should consider the question how an entrepreneur’s cognitive style is dependent on the business context and their prior experience.
Details
Keywords
Liridon Kryeziu, Mehmet Nurullah Kurutkan, Besnik A. Krasniqi, Veland Ramadani, Vjose Hajrullahu and Artan Haziri
The dynamism of competition in international markets requires managers to react accordingly and ensure the firm's survival and competitiveness. This study examines the impact of…
Abstract
Purpose
The dynamism of competition in international markets requires managers to react accordingly and ensure the firm's survival and competitiveness. This study examines the impact of cognitive styles and dynamic managerial capabilities (DMC) on a firm's international performance and the mediating role of these capabilities in the relationship between cognitive styles and international performance.
Design/methodology/approach
This study adopts a quantitative cross-sectional research design, employing a sample of 306 firm owner-managers from exporting companies in Kosovo.
Findings
The findings suggest that managers' cognitive styles positively influence firm international performance, including their impact on DMC. Results also indicate that only managerial cognition mediates cognitive styles' effects on a firm's international performance, compared to managers' social capital.
Originality/value
In this study, the authors contribute to the literature by integrating cognitive styles with DMC in a transition country. Moreover, the authors demonstrate that DMC mediate the impact of cognitive styles on the firm international performance.
Details
Keywords
Penny Mavor, Eugene Sadler‐Smith and David E. Gray
The purpose of this paper is to examine conceptual and theoretical links between intuition and coaching; investigate accomplished coaches' practical experiences of intuition;…
Abstract
Purpose
The purpose of this paper is to examine conceptual and theoretical links between intuition and coaching; investigate accomplished coaches' practical experiences of intuition; identify skill set of an intuitive coach; discuss implications of findings for coaches', HRD professionals', and line managers' learning and development.
Design/methodology/approach
In‐depth, semi‐structured, individual interviews with 14 accomplished experienced executive coaches (eight males and six females) averaging 14.5 years as a coach.
Findings
Outline of core attributes of an intuitive coach.
Originality/value
Immersion in experience, a reflective approach to practice, effective feedback and supervision, and attending to personal well‐being are likely to enable coaches, HRD practitioners and line managers to take a more informed and intelligent approach to “going with their gut” in coaching and other situations where inter‐ and intra‐personal awareness are important.
Details
Keywords
J. Samuel Baixauli-Soler, Gabriel Lozano-Reina and Gregorio Sánchez-Marín
The purpose of this paper is to analyze the influence of managerial discretion on the effectiveness of say on pay (SOP) as a governance mechanism. This goal covers an important…
Abstract
Purpose
The purpose of this paper is to analyze the influence of managerial discretion on the effectiveness of say on pay (SOP) as a governance mechanism. This goal covers an important gap since the issue of how effective SOP is in promoting more aligned compensation has proved somewhat controversial.
Design/methodology/approach
This empirical research opted for a panel methodology for the period 2003–2017, using a sample of large UK listed-companies (specifically, 3,445 firm-year observations). Data were obtained from several sources (Manifest Ltd, BoardEx, Worldscope, Factset Ownership and DataStream).
Findings
Results show that managerial discretion plays an important role in the effectiveness of SOP as a mechanism for increasing aligned CEO compensation. While individual discretion (latitude of objectives) exerts a negative effect, contextual discretion (latitude of action) increases SOP effectiveness. The global effect of managerial discretion is positive when there is high level of both individual and contextual discretion.
Originality/value
This empirical study provides evidence concerning an emerging topic in the literature regarding the impact of SOP as a shareholder activism mechanism of corporate governance on executive compensation. By taking managerial discretion into consideration as a relevant moderating factor, it also offers a better explanation of SOP effectiveness as a governance mechanism.
Details
Keywords
Jörn Obermann and Patrick Velte
This systematic literature review analyses the determinants and consequences of executive compensation-related shareholder activism and say-on-pay (SOP) votes. The review covers…
Abstract
This systematic literature review analyses the determinants and consequences of executive compensation-related shareholder activism and say-on-pay (SOP) votes. The review covers 71 empirical articles published between January 1995 and September 2017. The studies are reviewed within an empirical research framework that separates the reasons for shareholder activism and SOP voting dissent as input factor on the one hand and the consequences of shareholder pressure as output factor on the other. This procedure identifies the five most important groups of factors in the literature: the level and structure of executive compensation, firm characteristics, corporate governance mechanisms, shareholder structure and stakeholders. Of these, executive compensation and firm characteristics are the most frequently examined. Further examination reveals that the key assumptions of neoclassical principal agent theory for both managers and shareholders are not always consistent with recent empirical evidence. First, behavioral aspects (such as the perception of fairness) influence compensation activism and SOP votes. Second, non-financial interests significantly moderate shareholder activism. Insofar, we recommend integrating behavioral and non-financial aspects into the existing research. The implications are analyzed, and new directions for further research are discussed by proposing 19 different research questions.
Details
Keywords
Jared Friedman, Anthony Ian Jack, Kylie Rochford and Richard Boyatzis
Recent neuroscience research shows that two large-scale cortical networks are involved in organizational behavior. These two networks are naturally antagonistic – when one is…
Abstract
Recent neuroscience research shows that two large-scale cortical networks are involved in organizational behavior. These two networks are naturally antagonistic – when one is active the other tends to be suppressed. The focus of the chapter is to apply the opposing-domains hypothesis to problems associated with: (1) trying to balance creative thinking and global processing with analytic reasoning and focused attention; (2) avoiding ethical dangers associated with an imbalance in task positive network (TPN) and default mode network (DMN) thinking; and (3) properly motivating and incentivizing employees so as not to lead to an imbalance between the TPN and DMN. We contend that the opposing-domains hypothesis can inform organizational and leadership theory in areas where single-dimensional dual-process models are inadequate.
Details
Keywords
Anne Sigismund Huff, Frances J. Milliken, Gerard P. Hodgkinson, Robert J. Galavan and Kristian J. Sund
This book on uncertainty comprises the initial volume in a series titled “New Horizons in Managerial and Organizational Cognition”. We asked Frances Milliken and Gerard P…
Abstract
This book on uncertainty comprises the initial volume in a series titled “New Horizons in Managerial and Organizational Cognition”. We asked Frances Milliken and Gerard P. Hodgkinson, two well-known scholars who have made important contributions to our understanding of uncertainty to join us in this opening chapter to introduce this project. The brief bios found at the end of this volume cannot do justice to the broad range of their contributions, but our conversation gives a flavor of the kind of insights they have brought to managerial and organizational cognition (MOC). The editors thank them for helping launch the series with a decisive exploration of what defining uncertainty involves, how that might be done, why it is important, and how the task is changing. We were interested to discover that all five of us are currently involved in research that considers the nature and impact of uncertainty, and we hope that readers similarly find that paying attention to uncertainty contributes to their current projects. Working together, we can advance understanding of organizational settings and effective action, both for researchers and practitioners.