Paul E. Levy, Steven T. Tseng, Christopher C. Rosen and Sarah B. Lueke
In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this…
Abstract
In recent years, practitioners have identified a number of problems with traditional performance management (PM) systems, arguing that PM is broken and needs to be fixed. In this chapter, we review criticisms of traditional PM practices that have been mentioned by journalists and practitioners and we consider the solutions that they have presented for addressing these concerns. We then consider these problems and solutions within the context of extant scholarly research and identify (a) what organizations should do going forward to improve PM practices (i.e., focus on feedback processes, ensure accountability throughout the PM system, and align the PM system with organizational strategy) and (b) what scholars should focus research attention on (i.e., technology, strategic alignment, and peer-to-peer accountability) in order to reduce the science-practice gap in this domain.
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Dana L. Haggard and K. Stephen Haggard
Prior studies of the role of risk in executive compensation focus on market risk and firm risk, neglecting the role of industry risk in explaining executive compensation. We…
Abstract
Prior studies of the role of risk in executive compensation focus on market risk and firm risk, neglecting the role of industry risk in explaining executive compensation. We include industry risk and find that the portion of CEO compensation for bearing industry risk is greater than the portion of CEO compensation for bearing market risk. Consistent with the human capital of a CEO being non-diversifiable, CEOs also receive compensation for bearing firm-specific risk, in contrast to investors, who can diversify their risk over many assets. CEOs are compensated for bearing firm-specific risks through all the compensation tools we examine; salary, bonus, option grants and option exercises. CEOs are compensated for bearing market and industry risk primarily through stock option grants.
Alexander R. Marbut and Peter D. Harms
A key feature of performance in many professions is that of vigilance, carefully monitoring one’s environment for potential threats. However, some of the characteristics that may…
Abstract
A key feature of performance in many professions is that of vigilance, carefully monitoring one’s environment for potential threats. However, some of the characteristics that may make someone successful in such work may also be more likely to make them fail in the long-term as a result of burnout, fatigue, and other symptoms commonly associated with chronic stress. Among these characteristics, neuroticism is particularly relevant. To exert the effort that vigilance work requires, sensitivity to threats, a core aspect of neuroticism, may be necessary. This is evidenced by higher rates of neuroticism in vigilance-related professions such as information technology (IT). However, other aspects of neuroticism could attenuate performance by making individuals more distractible and prone to burnout, withdrawal, and emotional outbursts. Four perspectives provide insight to this neuroticism–vigilance paradox: facet-level analysis, trait activation, necessary conditions, and job characteristics. Across these perspectives, it is expected that too little neuroticism will render employees unable to perform vigilance tasks effectively due to lack of care while too much neuroticism will cause employees to become overwhelmed by work pressures. Contextual and personological moderators of the neuroticism–vigilance relationship are discussed, as well as two behavioral styles expected to manifest from neuroticism that could explain how neuroticism may be associated with either good or bad performance-relevant outcomes.
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Wayne F. Cascio and David G. Collings
Despite considerable development in our understanding of potential over the past two decades, we argue that the failure to adequately conceptualize and manage “potential” in the…
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Despite considerable development in our understanding of potential over the past two decades, we argue that the failure to adequately conceptualize and manage “potential” in the context of talent management has significantly limited the ability of organizations to meet their talent needs. In this chapter, we begin by defining the concept of potential, calling attention to the need to separate it from performance. We also address the need to specify the target for judgments of potential (e.g., management level, specific roles), along with the identification of constructs to measure. The chapter highlights two contextual variables – gender and culture, including translations of language that describe relevant constructs – that may impact judgments of potential. This chapter concludes by summarizing what we know and by identifying a variety of future directions for research on the important construct of potential.
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As the most racially diverse postsecondary sector, community college student populations are heavily Black and Brown. It is well settled that for every student credit hour earned…
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As the most racially diverse postsecondary sector, community college student populations are heavily Black and Brown. It is well settled that for every student credit hour earned, a financial reward is generated; however, it is not until individuals attain a baccalaureate degree that they tend to have the socioeconomic power to pull themselves and their families out from poverty. Looking specifically at mathematics achievement and self-efficacy, I examine differences among pathways by institutional level—two-year, four-year, other, or no postsecondary education—and find that there is a division in the mathematics achievement and self-efficacy of Black rural Americans (US) who attend four-year institutions as compared to all others. Thus, while policies advancing free community college may enhance the visibility and perceived affordability of community colleges for Black rural Americans (US), to reduce poverty there needs to be greater attention to the mathematics achievement and self-efficacy in K-12 education.
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Russell Wordsworth, Colin Michael Hall, Girish Prayag and Sanna Malinen
Natural disasters and other crises present methodological challenges to organizational researchers. While these challenges are well canvassed in the literature, less attention has…
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Natural disasters and other crises present methodological challenges to organizational researchers. While these challenges are well canvassed in the literature, less attention has been paid to understanding how distinct crisis events may present, not only unique challenges, but also important opportunities for research. In this chapter, we draw on our collective experience of conducting post-earthquake research and compare this with the COVID-19 pandemic context in order to identify and discuss the inherent vulnerabilities associated with disaster studies and the subsequent methodological challenges and opportunities that researchers might encounter. Adopting a critical perspective, the chapter grapples with some of the more contentious issues associated with research in a disaster and crisis context including aspects of stakeholder engagement, ethics, reciprocity, inequality, and vulnerability.
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J.H. de Wet and J.H. Hall
It is generally believed that in order to maximise value for shareholders, companies should strive towards maximising MVA (and not necessarily their total market value). The best…
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It is generally believed that in order to maximise value for shareholders, companies should strive towards maximising MVA (and not necessarily their total market value). The best way to do so is to maximise the EVA, which reflects an organisation’s ability to earn returns above the cost of capital. The leverage available to companies that incur fixed costs and use borrowed capital with a fixed interest charge has been known and quantified by financial managers for some time. The popularisation of EVA and MVA has opened up new possibilities for investigating the leverage effect of fixed costs (operational leverage) and interest (financial leverage) in conjunction with EVA and MVA, and for determining what effect changes in sales would have through leverage, not only on profits, but also on EVA and MVA. Combining a variable costing approach with leverage analysis and value analysis opens up new opportunities to investigate the effect of certain decisions on the MVA and the share price of a company. A spreadsheet model is used to illustrate how financial managers can use the leverage effects of fixed costs and the (fixed) cost of capital to maximise profits and also to determine what impact changes in any variable like sales or costs will have on the wealth of shareholders.