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Article
Publication date: 16 April 2024

Hyelda Ibrahim Kefas, Muesser Cemal Nat and Kolawole Iyiola

While the potential of human resource practices (HRPs) for promoting performance is widely recognized, even though crucial, employees’ assessment of HRPs remains under-researched…

Abstract

Purpose

While the potential of human resource practices (HRPs) for promoting performance is widely recognized, even though crucial, employees’ assessment of HRPs remains under-researched, especially in emerging economies. Hence, the purpose of this research is to examine the influence of employee satisfaction with HRPs on job performance through the mediating role of job dedication (JD) and the moderating role of incentive gamification.

Design/methodology/approach

The current research adopts a quantitative method. Specifically, using a questionnaire survey, 418 valid responses collected (through purposive sampling) via cross-sectional method from the employees of Nigerian Information and Communication Technology (ICT) firms were used to test the research hypotheses empirically.

Findings

The results revealed that satisfaction with HRPs has a positive influence on job performance. Satisfaction with human resource practices has a positive influence on job dedication. Job dedication has a positive influence on job performance. The link between employees’ satisfaction with human resource practices and job performance is mediated by job dedication. The link between satisfaction with human resource practices and job dedication is moderated by incentive gamification, that is, the positive link is stronger when incentive gamification is high. The link between satisfaction with human resource practices and job performance is moderated by incentive gamification, that is, the positive link is stronger when incentive gamification is high.

Originality/value

The current study highlights the importance of employees’ assessments of human resource practices, which may be used to promote employee dedication, which in turn results in improved performance. The findings are helpful to open the black box of the impact of satisfaction with HRPs on job performance. The results also offer important new valuable guidance for practitioners and will aid the management of human resource practice design, audits, and communication.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 22 November 2019

Sinikka Moilanen and Seppo Ikäheimo

This paper aims to interpret and compare managerial intentions for and employee perceptions of group-based incentive systems.

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Abstract

Purpose

This paper aims to interpret and compare managerial intentions for and employee perceptions of group-based incentive systems.

Design/methodology/approach

The data comprise interviews with managers and employees in four Finnish firms with experience of company-wide incentive systems involving profit-sharing and team-based rewards. Benefitting from social exchange theory, managers’ intentions and employees’ perceptions are examined.

Findings

Managers’ and employees’ views resemble each other concerning profit-sharing as reflecting reciprocity rooted in perceived distributive fairness, whereas examination of the team-based rewards revealed impediments in reciprocity. While managerial intentions for team-based rewards refer to social exchange with economic intensity via selection of controllable performance measurements aimed at making individual-level effort count, the employees’ perceptions deem such metrics non-controllable, reflecting perceived distributive and procedural unfairness.

Practical implications

Profit-sharing seems to create fair social obligation and goal congruence between managers and employees, whereas team-based incentives easily suffer from unfairness, reducing their effectiveness.

Originality/value

Distinguishing between managerial intentions and employee perceptions pertaining to incentive systems facilitated in-depth exploration of the social exchange inherent in them, conceptualized in terms of economic intensity, fairness and controllability. With this lens, qualitative analysis revealed differences in interpretations of controllability and fairness between the managerial intentions and employee perceptions. The central contribution to scholarship takes the form of interpretations reflecting upon these key findings.

Details

Journal of Accounting & Organizational Change, vol. 15 no. 4
Type: Research Article
ISSN: 1832-5912

Keywords

Book part
Publication date: 15 December 2015

Andrea Kim, Kyongji Han, Joseph R. Blasi and Douglas L. Kruse

Building on economic and psychological ownership theories, this study investigates whether group incentives can reduce shirking because these practices enable employees to feel…

Abstract

Building on economic and psychological ownership theories, this study investigates whether group incentives can reduce shirking because these practices enable employees to feel psychological ownership that motivates them to prevent their own and coworkers shirking in a collective work setting. We analyzed a sample of 38,475 employees in eight companies that participated in the survey administered by the National Bureau of Economic Research (NBER) in 2005. Our findings reveal that (1) short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) are positively related to self-shirking regulation and coworker-shirking intervention; (2) STOGIs have stronger relationships with these anti-shirking outcomes than LTOGIs; and (3) the interaction between LTOGIs and formal training is positively related to these anti-shirking outcomes. Although some scholars are concerned about the free rider problem in the collective working and rewarding structure, our work demonstrates how and why employee shirking may be mitigated in such settings.

Details

Advances in the Economic Analysis of Participatory & Labor-Managed Firms
Type: Book
ISBN: 978-1-78560-379-2

Keywords

Article
Publication date: 1 February 1990

Miriam Dornstein

It is widely agreed that employees’ attitudestowards pay incentives are an importantdeterminant of their effectiveness. The perceivedfairness of pay incentives and their…

Abstract

It is widely agreed that employees’ attitudes towards pay incentives are an important determinant of their effectiveness. The perceived fairness of pay incentives and their determinants are examined. Based on theories dealing with the fairness evaluation of rewards, a number of hypotheses are formulated proposing that employees’ judgements of the fairness of pay incentives will be partly determined by their attitudes towards work and certain situational and personal background factors. The findings generally support these hypotheses. They indicate that the fairness judgements of pay incentive schemes and the considerations underlying such judgements are determined, among other things, by work motivation and by personal background characteristics such as age, education, number of dependants, organisational tenure and country of origin.

Details

Personnel Review, vol. 19 no. 2
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 1 August 2016

Xiu-Hao Ding, Yuanqiong He, Jiang Wu and Chen Cheng

Employees play a central role in firms’ knowledge transferal, but knowledge-sharing brings significant costs for employees. Thus, this study aims to explore the components of…

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Abstract

Purpose

Employees play a central role in firms’ knowledge transferal, but knowledge-sharing brings significant costs for employees. Thus, this study aims to explore the components of firms’ incentive systems and how these influence employees’ knowledge-sharing, and also to test whether employees’ knowledge-sharing intentions transform into better knowledge transfer performance at the firm level.

Design/methodology/approach

This study collected data in China, and 219 usable questionnaires were collected. Then, this study used a structure equation model by LISREL for hypotheses testing.

Findings

This study finds that positive economic incentives, positive relational incentives and negative relational incentives all increase employees’ knowledge-sharing intentions, contributing to firms’ improved knowledge-transfer performance. Thus, both positive and negative incentives and both economic and relational incentives exert influences on employees’ knowledge-sharing activities.

Practical implications

Because employees have both material and emotional needs and always want to approach good things and avoid bad things, firms should take measures to make their incentive systems more comprehensive. Then, employees can be motivated to share their knowledge effectively.

Originality/value

Existing studies have mainly explored the effects of positive economic incentives on knowledge transferal. Because individuals have both a promotion self-regulatory focus associated with an approach motivation and a prevention self-regulatory focus associated with an avoidance motivation, and because they have both material and emotional needs, this study classifies incentives into three types and confirms their effectiveness for motivating employees to share knowledge.

Details

Chinese Management Studies, vol. 10 no. 3
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 9 August 2011

Hamza Bahaji

This paper aims to analyze the valuation of stock options from the perspective of an employee exhibiting preferences as described by cumulative prospect theory (CPT). In addition…

1584

Abstract

Purpose

This paper aims to analyze the valuation of stock options from the perspective of an employee exhibiting preferences as described by cumulative prospect theory (CPT). In addition, it elaborates on their incentives effect and some implications in terms of design aspects.

Design/methodology/approach

The paper draws on the CPT framework to derive a continuous time model of the stock option subjective value using the certainty equivalence principle. Numerical simulations are used in order to analyze the subjective value sensitivity with respect to preferences‐related parameters and to investigate the incentives effect.

Findings

Consistent with a growing body of empirical and experimental studies, the model predicts that the employee may overestimate the value of his options in‐excess of their risk‐neutral value. Moreover, for typical setting of preferences parameters around the experimental estimates, and assuming the company is allowed to adjust existing compensation when making new stock option grants, the model predicts that incentives are maximized for strike prices set around the stock price at inception. This finding is consistent with companies’ actual compensation practices. Finally, the model predicts that an executive who is subject to probability weighting may be more prompted than a risk‐neutral executive to act in order to increase the firm's assets volatility.

Originality/value

This research proposes an alternative theoretical framework for the analysis of pay‐to‐performance sensitivity of equity‐based compensation that takes into account a number of prominent patterns of employee behavior that expected utility theory cannot explain. It contributes to recent empirical and theoretical researches that have advanced CPT framework as a promising candidate for the analysis of equity‐based compensation contracts.

Details

Review of Accounting and Finance, vol. 10 no. 3
Type: Research Article
ISSN: 1475-7702

Keywords

Book part
Publication date: 23 August 2014

Lan Guo, Bernard Wong-On-Wing and Gladie Lui

We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors.

Abstract

Purpose

We examine how input- (vs. output-) based performance evaluation and incentive intensity impact employees’ autonomous motivation, thereby influence their proactive work behaviors.

Methodology

We collected survey responses from 309 employees of different firms. Multi-group Structural Equation Modeling analyses were used to analyze the data.

Findings

Input-based evaluation had a positive effect on autonomous motivation and proactive work behaviors when task uncertainty was high, but a negative effect when it was low. Autonomous motivation had a positive effect on proactive work behaviors.

Research implications

Our results on the moderating effect of task uncertainty provide insights into inconsistencies in earlier studies. Moreover, applying self-determination theory of motivation to incentive research can provide some insights into why sometimes, incentives can negatively affect performance.

Practical implications

The study of proactive work behaviors is important because despite their necessity in the fast-changing business environment, they are relatively unexplored in the incentive literature. Proactivity is especially important for tasks that are high in uncertainty because the exact tasks to achieve those goals are hard to specify.

Originality/value of paper

We investigate the effect of performance management system on proactive work behaviors, mediated by autonomous motivation and moderated by task uncertainty.

Article
Publication date: 7 September 2015

Baofeng Huo, Zhaojun Han, Haozhe Chen and Xiande Zhao

Taking an interdisciplinary approach, the purpose of this paper is to combine concepts from human resource management (HRM) and supply chain management (SCM) fields and explore…

4228

Abstract

Purpose

Taking an interdisciplinary approach, the purpose of this paper is to combine concepts from human resource management (HRM) and supply chain management (SCM) fields and explore the effects of high-involvement HRM practices on supply chain integration (SCI).

Design/methodology/approach

Using empirical survey data collected from ten countries, the authors examine the specific effects of three dimensions of high-involvement HRM practices – employee skills, incentives and participation – on three types of SCI – internal integration, supplier and customer integration. The authors use structural equation modeling and the maximum-likelihood estimation method to test the proposed relationships.

Findings

The results confirm the overall relevancy of HRM to SCI. However, several proposed links are not supported by the data collected.

Originality/value

This study makes both theoretical and managerial contributions by empirically examining the interface between HRM and SCI. More specifically, it examines the effects of different high-involvement HRM practices on different types of SCI. The findings will not only help researchers to better understand the interface, but will also guide managers in adjusting HRM practices to achieve desired operational goals.

Details

International Journal of Physical Distribution & Logistics Management, vol. 45 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 February 1992

Jim Abbott and Brian H. Kleiner

Demonstrates that one of the most important elements required toensure the success of any organization is to retain and motivate itsemployees, from the CEO down to the…

1205

Abstract

Demonstrates that one of the most important elements required to ensure the success of any organization is to retain and motivate its employees, from the CEO down to the productionline worker. Argues that profit incentives can be a way to squeeze quality and productivity improvements from its remaining workers, while giving them greater control over their financial fates. Suggests ways to make incentive play plans work, and lists a number of types of incentive pay plans.

Details

Work Study, vol. 41 no. 2
Type: Research Article
ISSN: 0043-8022

Keywords

Article
Publication date: 11 July 2008

Fred Luthans, Shanggeun Rhee, Brett C. Luthans and James B. Avey

The purpose of this study is to examine whether the use of money, social recognition, and feedback have a similar impact on employee performance in the context of a modern Korean…

2705

Abstract

Purpose

The purpose of this study is to examine whether the use of money, social recognition, and feedback have a similar impact on employee performance in the context of a modern Korean broadband internet service firm.

Design/methodology/approach

The study design was a quasi‐field experiment (with control group). First, the leaders of this Korean firm were trained in behavioral performance management. Following the steps of organisational behaviour modification (O.B. Mod.) they identified, measured, and analyzed critical performance behaviors and then intervened with the following reward incentives: money (n=38), social recognition and caring attention (n=41), and objective feedback only (n=31). The main dependent variable was overall performance, and this was also broken down into quantity and quality dimensions.

Findings

As hypothesized, money and social recognition had a significant impact on performance outcomes, but feedback did not result in as strong a result. When compared to the control group (n=23), all three reward incentives showed significantly more improvement of overall performance. These findings also indicated, as hypothesized, that the impact of this behavioral management approach on Korean employees did not appear as robust as previous meta‐analytic research based on samples of US employees. Finally, although in the predicted direction, the hypothesis that social recognition would have a relatively stronger impact than money and feedback in this context was not statistically supported.

Research limitations/implications

The major limitation concerns generalizability of the findings. However, the experimental design provides support for internal validity.

Practical implications

The study results have practical implications for the value of behavioral performance management, but also that cultural contingencies should also be considered for successful application.

Originality/value

This study contributes preliminary evidence for O.B. Mod to have applicability across cultures.

Details

Leadership & Organization Development Journal, vol. 29 no. 5
Type: Research Article
ISSN: 0143-7739

Keywords

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