Emerald | Personnel Review

IS THERE FIRE? EXECUTIVE COMPENSATION AND EMPLOYEE ATTITUDES

2012-04-06 00:00:00.0

Abstract

Purpose - Examine the relationship between senior executive compensation and employee attitudes.Design/methodology/approach - Based upon equity/organizational justice theories (e.g., Adams 1963; 1965) and the CEO compensation literature (e.g., Frydman & Jenter, 2010), hypotheses were developed which suggest that executive compensation and employee attitudes will be related. These hypotheses were tested by linking a large-scale survey of employee attitudes to CEO compensation data for public companies based in the United States.Findings - Employee attitudes appear to be related to some measures of CEO compensation, although sometimes the relationship that was found was negative and sometimes it was positive and in all cases the effect size was quite small. Specifically, change in CEO salary was negatively related to evaluation of senior management and general satisfaction. However, total CEO compensation was positively related to evaluation of senior management and general satisfaction, while change in CEO bonus was positively related to general satisfaction. Research limitations/implications - Limitations of this study include the inability to show a causal relationship, limited external validity, equations that explain only a small amount of variance and attitudinal measures that are single source. Future research which helps understand what employees know and why differences across organizations exist would be helpful.Practical implications - From an employee attitude perspective, changing performance-based components of CEO compensation (e.g., bonus) is better than changing CEO salary. However, if salary is going to be increased, a communication plan for employees should be developed.Originality/value - Whether executive compensation has an impact on employees’ attitudes has not been explored previously.

GENDER DIVERSITY IN EDITORIAL BOARDS: AN UPDATE

Isabel Metz, Anne-Wil Harzing — 2012-04-06 00:00:00.0

Abstract

Purpose - This study updates our knowledge of women’s representation on the boards of scholarly management journals with a longitudinal analysis of the same over two decades.Design/methodology/approach - This study extends the work of Metz and Harzing (2009) on women’s representation in the editorial boards of 57 management journals from 1989 to 2004 by focusing on the development of gender diversity in editorial board membership over time. We first add another time period (2005-2009) to their data. We then add empirical richness by conducting a more fine grained analysis of women’s representation at the various editorial board levels over time. In addition, this study analyses the development of female editorial board memberships over time for five management fields, journals of four different ranks, and two geographic regions. As a result, this study examines women’s representation in the editorial boards of 57 management journals over a period of 20 years (from 1989 to 2009).Findings - Results showed an overall increase in women’s representation in the editorial boards of these 57 management journals (at board member, associate editor and editor in chief levels) in the last five years (2004-2009) to 22.4%. Despite several positive trends identified in this follow-up study, women’s representation as editorial board members continues to be inconsistent across five management fields, across four journal rankings and across two geographic regions.Practical implications - This study’s findings clearly indicate that there is still much that can be done to narrow the gender imbalance in most editorial boards of management journals. Monitoring women’s representation in editorial boards of management journals is only one of the steps needed for successful change to occur.Originality/value - It is important to regularly monitor women’s (under)representation on the boards of scholarly management journals to raise awareness that might lead to or sustain positive change. This follow-up study serves that purpose in the field of management, a largely neglected field until recently.

Disentangling organizational support construct: The role of different sources of support to newcomers’ training transfer and organizational commitment

Maria Simosi — 2012-01-31 00:00:00.0

Abstract

Purpose - To explore the differential role that organizational support (POS), supervisory support (PSS) and co-worker support (PCS) - as perceived by newcomers - play to the transfer of the latter’s training as well as the development of affective and normative commitment towards their work organization.Design/methodology/approach - Using a sample of two hundred and fifty-one new hires, a series of regression analyses was conducted to test direct and moderating effects.Findings - Findings showed that all three forms of organizational support examined had independent and direct effects on the dependent variables. Only perceived peer support did not add incrementally to the prediction of normative commitment when the other two support sources entered the equation. Further, the results supported the role of POS as a moderator in supervisor support – training transfer relationship as well as its role as a moderator in colleague support – affective commitment relationship. In specific, high POS was found to strengthen the PSS-training transfer and PCS-affective commitment relationships, while low POS weakened these relationships.Research limitations/implications - Since data are based on self-reports, common method bias may have inflated the relationships among the variables.Practical implications - The paper contributes to both research and practice by providing support for the distinction between the three forms of organizational support.Originality/value - This investigation extends previous research by demonstrating the existence of the moderating effect of POS on the relationship between a) PSS and newcomers’ training transfer and b) PCS and newcomers’ development of affective commitment towards their work organization.

Intellectual Capital and Organizational Commitment: Evidence from Cultural Creative Industries in Taiwan

Mavis Yi-Ching Chen, Yung Shui Wang — 2012-04-06 00:00:00.0

Abstract

Purpose - The purpose of this study is to determine whether personal assets or organizational investments from an intellectual capital perspective have an influence on employee commitment in the Taiwanese Cultural Creative Industries. Design/methodology/approach - This study used a cross-level design to conduct a questionnaire survey. Our research variables covered two levels: individual level (personal human capital and organizational commitment) and organizational level (organizational intellectual capital). We contacted 39 small and medium-sized enterprises (SMEs) in Taiwan’s Cultural Creative Industries, requesting their participation in the study, and 27 managers and 86 employees in 27 cultural creative firms provided research information. The response rate was 69 percent for managers and 44 percent for employees, respectively.Findings - Research results indicate that both personal human capital and organizational intellectual capital were antecedents of organizational commitment. For personal human capital, employees with higher levels of education are less committed to organizations. Tenured employees were found to be more committed to organizations. However, we did not find a significantly positive effect of personal age on commitment. In regard to organizational intellectual capital, the stocks of human capital and social capital increased organizational commitment. Interestingly, organizational capital reduced organizational commitment for employees in cultural creative industries.Research limitations/implications - Several limitations characterize this study: the small sample size of cultural creative small and medium-sized enterprises (SMEs) may have limited the explanations and generalizations of the findings, the study’s limited treatment of individual factors may have weakened the comprehensiveness of personal human capital, and the cross-sectional design may not demonstrate the causality of the investigated relationship. Future research should be improved on the basis of the above limitations.Practical implications - It appears that organizations in cultural creative industries should concentrate on developing organizational intellectual capital and then regard personal human capital as guidelines for maintaining their organizational commitment.Originality/value - To our knowledge, this is the first study to examine the cross-level antecedents of organizational commitment from an intellectual capital perspective. In addition, we provide some empirical evidence focusing on one emerging industry in Taiwan: cultural creative industries.

The role of learning agility and career variety in the identification and development of high potential employees

Nicky Dries, Tim Vantilborgh, Roland Pepermans — 2012-04-06 00:00:00.0

Abstract

Purpose - A survey study was conducted in seven best practice organizations in the field of talent management. By cross-checking their existing high potential lists, we examined to which extent assessments of learning agility were able to predict being identified as a high potential or not above and beyond a baseline prediction by job performance. Furthermore, we investigated whether learning agility increased with career variety.Design/methodology/approach - The study had a case-control design, comparing supervisor ratings of employees recently identified as high potentials (n = 32) with supervisor ratings of a carefully matched control group of non-high potentials (n = 31). Findings - Learning agility (mediated by job content on-the-job learning) was found to be a better predictor of being identified as a high potential than job performance. Career variety was found to be positively associated to learning agility. Research limitations/implications - Our design did not allow for the demonstration of causal effects. Longitudinal studies are needed to further clarify the causality of our findings and their implications for organizational performance. Practical implications - Organizations should do well to incorporate measures of learning agility into their high potential identification and development processes. Furthermore, they need to reflect on how HRM practices might enhance their high potentials’ career variety and commitment. Originality/value - The current study responds to urgent calls in the literature for more empirical research on the identification and development of high potentials, as well as on career variety.

UNDERSTANDING THE LINK BETWEEN WORK LIFE BALANCE PRACTICES AND ORGANIZATIONAL OUTCOMES IN SMEs: THE MEDIATING EFFECT OF A SUPPORTIVE CULTURE

DAVID CEGARRA-LEIVA, M EUGENIA SANCHEZ-VIDAL, JUAN GABRIEL CEGARRA-NAVARRO — 2012-04-06 00:00:00.0

Abstract

Purpose - This study explores the impact of the availability of work life balance (WLB) practices on organizational outcomes in small and medium enterprises (SMEs) mediated by the existence of a culture that supports WLB.Design/methodology/approach - An empirical study was performed with a sample of 229 SMEs representing the metal industry sector of South East Spain.Findings - The findings show that a WLB supportive culture mediates the effect of the availability of WLB practices on organizational performance.Research limitations/implications - Among the limitations of this study we highlight the transverse nature of the research and the data collection based on self-reports. Practical implications - Companies interested in increasing organizational outcomes should introduce WLB practices. Moreover, efforts should be focused on encouraging and supporting positive attitudes towards WLB initiatives. Originality/value - This research focuses on SMEs and the results have implications for practitioners and academics.

Comparison between the Spanish and Italian early work retirement models: a cluster analysis approach

Carlos-María Alcover, Antonio Crego, Dina Guglielmi, Rita Chiesa — 2012-04-06 00:00:00.0

Abstract

Purpose - The aim of this study is to compare the Spanish and Italian early work retirement (EWR) models in a sample comprising individuals from both countries based on the level of voluntariness involved in labour market exit, psychosocial outcomes, perceived consequences, socio-demographic variables and motivation. Design/methodology/approach - We used a cluster analysis approach to carry out a cross-sectional study based on a total sample of 1,131 early retirees (605 Spaniards and 526 Italians) drawn from different industries.Findings - In the Spanish but not in the Italian case, EWR was predominantly perceived as forced. K-means cluster analysis identified four groups of early retirees in both countries based on perceived outcomes of EWR. Two of these clusters represent extreme positive and negative assessments of early retirement consequences, while the remaining two reflect intermediate positions. Research limitations/implications - Our results show that the involuntary Spanish EWR model is associated with a significant negative outcomes cluster, whereas voluntary early retirees in Italy are significantly grouped in the positive outcomes cluster. Variables referring to early exit motives, attitudes towards work and post-working life and psychosocial adjustment are employed to define the clusters.Originality/value - This study reveals the existence of significant differences in the level of voluntariness between EWR in Spain and its Italian counterpart, in line with the findings obtained by other researchers. The findings support the conclusions of studies that suggest the existence of differences in post-employment life depending on the level of voluntariness concerned in retirement from the labour market.