Emerald | International Journal of Manpower

Between universality and contingency: An international study of compensation performance

Denis Chênevert, Michel Tremblay — 2011-11-15 00:00:00.0

Abstract

Purpose – The purpose of this study is to examine whether the performance of the compensation system is better explained by the universalist approach or the contingent approach. The paper also attempts to determine the type of fit that yields the most promising gains in terms of perception of performance. Design/methodology/approach – Data were collected by questionnaire from 602 large organizations in three countries (Canada, France, and the UK), and from this, five hypotheses were formulated and tested using moderated regression analysis. Findings – The study shows that having an optimal relationship among compensation policies (intra-activity fit) leads to a more efficient compensation system than that obtained following an alignment with business strategies (vertical strategic fit) and with organizational development strategies (internal organizational fit). However, the results suggest that the universalist perspective cannot be rejected. Practical implications – Human resources managers should exercise prudence regarding the pairing of compensation policies with various organizational characteristics, particularly those related to compensation management policies, because it is the interaction between compensation policies and their management methods that most influences the perception of performance. Of all these management policies, transparency of salary information seems to be central to the contingency perspective. Originality/value – One of the most interesting contributions of this research is the identification of negative alignments that may result in negative performance. The joint application of two compensation policies, which, individually, have a positive influence on performance, can create a negative interaction. Contingency is therefore not always desirable, and prudence is recommended in the types of alignments introduced.

Are temporary jobs a port of entry into permanent employment?: Evidence from matched employer-employee

Fabio Berton, Francesco Devicienti, Lia Pacelli — 2011-11-15 00:00:00.0

Abstract

Purpose – This paper seeks to explore whether temporary jobs are a port of entry into permanent employment and to argue that the answer crucially depends on the type of temporary contracts being considered. Design/methodology/approach – The paper bases its empirical evidence on a longitudinal sample of labour market entrants in Italy and estimates dynamic multinomial logit models with fixed effects to allow for the non-random sorting of workers into the different types of contracts. Findings – The authors show that the transition to permanent employment is more likely for individuals who hold any type of temporary contract than for the unemployed, thus broadly confirming the existence of port-of-entry effects. Yet, not all temporary contracts are the same. An order among non-standard contracts with respect to the probability of taking an open-ended job emerges, with training contracts at the top, freelance work at the bottom, and fixed-term contracts outperforming apprenticeships. Strong SSC rebates, lack of training requirements, and low legal constraints concerning renewals result in poor port-of-entry performance, as in the case of freelance contracts. Instead, mandatory training and more binding legal constraints on the use, extension, and renewals of training contracts tend to enhance the probability of getting a standard job. Originality/value – Most of the existing empirical literature aggregates temporary contracts in a single category, thereby ignoring a relevant source of heterogeneity.

Occupational choice and returns to self-employment among immigrants

Lina Andersson — 2011-11-15 00:00:00.0

Abstract

Purpose – Self-employment has been stressed as a way for immigrants to enter and improve their situation in the labour market. However, research shows that some people who become self-employed revert to wage employment or unemployment. The purpose of the paper is to study the labour market consequences of temporary self-employment on paid employment among immigrants. Design/methodology/approach – The paper uses micro-econometric methods to estimate the effect of self-employment, relative to continued wage employment, on earnings and employment opportunities in 2006. The paper also identifies the type of wage earner that temporarily enters self-employment. Findings – The paper finds that, relative to continued wage employment, self-employment, with few exceptions, does not improve outcomes in the wage sector of immigrants and may in fact be associated with lower earnings and difficulties in returning to paid employment. Practical implications – The results indicate that encouraging immigrant wage earners to become self-employed should be done with care, since self-employment does not necessarily improve subsequent labour market outcomes. Originality/value – This study will be valuable to those who are interested in the economic consequences of immigrant self-employment.

Integrating human resource management into lean production and their impact on organizational performance

Tomas Bonavia, Juan A. Marin-Garcia — 2011-11-15 00:00:00.0

Abstract

Purpose – The first goal of this research is to analyse the effects of lean production (LP) on the policy of human resource management (HRM). The second is to determine whether or not implementation of HRM practices associated with LP explains the differences in organizational performance between manufacturing plants. Design/methodology/approach – The paper developed a questionnaire for data collection. Findings are presented from 76 establishments (79.17 per cent of the total sample) that specialise in single-firing ceramic tiles in Spain. Findings – Companies that make the most of LP practices are also those that take care to train workers in using these practices as well as improving their employment security. However, the same is not true for the pay for performance system. The combination of LP with HRM practices reduces inventory and boosts productivity but does not appear to affect the other performance variables analysed. Research limitations/implications – For certain variables very little variation was found between the plants in the samples. The data are cross-sectional, so causality cannot be definitively determined. Practical implications – This paper indicates the HRM practices associated with the LP and the results obtained. It can thus be used to help human resource and production departments in improving organizational performance. Originality/value – The paper extends the work of other researchers by focusing on a sector and a country that have been very little studied to date. The sample consists of a set of plants that are fairly homogeneous, which facilitates the analysis of the relationships between the selected variables, while keeping other variables controlled.