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The empirical support for agency theory explanations for the great variance in CEO pay has been equivocal. Drawing from the performance appraisal literature, we hypothesize that boards of directors incorporate human judgment into the evaluation and reward of CEO performance in order to balance managerial risk with agency costs. We test Baysinger and Hoskisson’s (1990) proposition that insider‐dominated corporate boards rely on subjective performance evaluation to reward the CEO, and we argue that R&D intensity influences this relationship. Using a sample of Fortune firms, findings support our contention that human judgment is important in evaluating and rewarding CEO performance.

The objective of this empirical study is to apply the methodology commonly used to performance appraisal and examine if outcomes achieved by ratees bias rater's judgment of ratee ethical behavior.

Two studies were conducted: in study 1 the participants were undergraduate business students and in study 2, the participants were MBA students but who were also full time employees. In both these studies, participants read the vignettes and rated the ratee performance using behavior observation scale.

Both the studies found support for the main hypothesis that outcomes achieved by the ratees influenced judgment of ethical behavior. The hypothesis that ethical beliefs of raters will moderate the biasing influence of outcomes on ethical judgment bias was not supported.

If outcomes achieved by employees influence judgment of ethical behavior, future research has to examine how the biasing influence of outcomes on ethical judgments can be mitigated or eliminated.

If managers are influence by outcomes achieved by their employees in judging the ethical behavior, it can lead to “success breeds acceptance” culture. If organizations place undue emphasis on outcomes at the cost of ethical standards, unethical behavior of individuals could be condoned or justified which would lead to worsening of ethical climate in these organizations.

This study demonstrated that outcomes achieved by employees biases judgment of their ethical behavior and this finding has important implications for designing effective appraisal systems for assessing ethical behavior of employees.

Technology has had a dramatic impact on organizational environments. The changes necessitate that Human Resource Management (HRM) take aggressive steps to adapt and to add value to organizations. This chapter focuses on implications for HRM, particularly in the areas of job analysis, selection, and performance management. Directions for both research and practice are discussed.

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

So much of organizational life is structured: even “flat” organizations have hierarchies; once created, the management of knowledge is codified; customer loyalty is dependent upon collated and archived data. Yet, when the future of most businesses is reliant on the acquisition, development and retention of talented people, this essential element of organizational success can so often be haphazard at best. The question that strategists from human resources and more broadly need to consider is “why is the management of talent so often left to chance?” When it comes to getting the best from the best people, a little structure can go a long way.

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

While the concepts of performance evaluation and total quality management (TQM) have been explored in the management literature of the last decades, there has been relatively little work on the particular characteristics that an organisation with a TQM approach to human resource (HR) performance evaluation should adopt. To this end, this paper provides a review of the literature in the area of TQM and HR performance evaluation, in order to establish the context for future empirical research. This study provides a brief overview of the implications of a quality orientation for the evaluation of employee performance. It reveals the main difficulties with the concept of performance evaluation from a quality perspective; and it also examines particular characteristics of performance evaluation that could maximise the effectiveness of HR performance evaluation in organisational environments with a quality orientation. Both the assumptions of TQM and the requirements for HR evaluation are used as a foundation from which to examine the ways in which HR performance evaluation might have changed to integrate TQM requirements. By examining the relevant literature, the main criteria of a TQM‐based HR performance evaluation system are refined and enhanced, thus moving towards a situation in which TQM can drive HR performance evaluation in practice. The results also serve as a guide for the evaluation of the effectiveness of such a system.

This paper aims to address the question whether or not quality‐driven organisations have, in practice, tended to adjust their performance appraisal systems to integrate total quality management (TQM) requirements.

To do so, the findings of an initial literature survey suggested the combined use of quantitative and qualitative methods for empirical research. The quantitative element consists of a postal questionnaire survey of 64 UK‐based, quality‐driven organisations on the topic of performance appraisal in the context of TQM. Key informants from ten of these organisations were subsequently interviewed in order to gather detailed information on the reasons behind their initial responses.

The results indicated that only a minority of the respondents were satisfied with their TQM programmes. But this comparative lack of success did not lead them to eliminate performance appraisal altogether, as advocated by Deming and others because of the role of systems‐level causes of performance variation.

One important question concerns the notion (expounded in much of the quality literature) that a vast proportion of the variance in individual performance is caused by systems‐level features. There is, however, little hard evidence for this view.

By acquiring the relevant knowledge and understanding of contextually‐appropriate performance appraisal and management, practitioners would be able to translate and mediate TQM requirements into performance appraisal criteria to maintain the integrity of organisational change initiatives aimed at long‐term business excellence.

The research provides a starting‐point for both TQM scholars and managers, and it can serve as a road‐map and a challenge to quality‐driven organisations.

Two studies were conducted to investigate the impact of socially‐induced positive affect on organizational conflict. In Study I, male and female subjects were provoked or not provoked, and then exposed to one of several treatments designed to induce positive affect among them. Results indicated that several of these procedures (e.g., mild flattery, a small gift, self‐deprecating remarks by an opponent) increased subjects' preference for resolving conflict through collaboration, but reduced their preference for resolving conflict through competition. In addition, self‐deprecating remarks by an opponent (actually an accomplice) increased subjects' willingness to make concessions to this person during negotiations. In Study 2, male and female subjects were exposed to two treatments designed to induce positive affect (humorous remarks, mild flattery). These were presented before, during, or after negotiations with another person (an accomplice). Both treatments reduced subjects' preferences for resolving conflict through avoidance and increased their preferences for resolving conflict through collaboration, but only when delivered during or immediately after negotiations. Together, the results of both studies suggest that simple interventions designed to induce positive affect among the parties to conflicts can yield several beneficial effects.

The National Labor Relations Act (NLRA) creates rights for covered employees, defines conduct that violates those rights, and deems that conduct an unfair labor practice. But while given broad remedial powers under the Act, the Board's options were curtailed by the Supreme Court's limit on the use of deterrence as an express remedial justification. The Board was left with a strongly make-whole, i.e., ex-post, focus to undo the consequences of a violation.

Put differently, the current NLRA remedies reflect a pay-or-play philosophy. The goal is restoration after the fact, using ex-post remedies to give parties the benefit or status quo that they expected. An actor willing to pay may use a cost–benefit analysis and strategically choose to violate the Act, accepting the make-whole remedies later. But the Act created ex-ante statutory rights, not agreed-upon contractual terms. By statutory enactment, employees are given something of value deemed worthy of protection. Assigning value to compliance with the law in the first instance not only prevents sometimes irreparable harm but also reaffirms the inherent value of the right itself.

The impact of the Board's limited remedies is therefore a broad value-driven one. Without ex-ante deterrence, the available ex-post make-whole remedial options make a normative statement about individuals' rights under the Act: those rights may not be inherently worth enough to incentivize legal compliance. The make-whole focus can imply that financial compensation for the portion of harm that can be calculated and “undoing” some nonfinancial effects is sufficient. There is little drive to deter infringement before the fact. By examining the remedial philosophy behind contrasting approaches in the common law of torts and contract, this Article asserts that the current remedial strictures and framework undermine both the Act and the worth of its rights in the eyes of the public and the employees who hold them.