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The balanced scorecard (BSC) allows firms to place importance on both financial and nonfinancial performance measures in four perspectives for developing and implementing corporate strategy and performance evaluation. The BSC literature however provides minimal insight on how to set targets, how to weigh measures when evaluating managers and the firm, and how to resolve conflicts that arise in the BSC process. Researchers have attempted to fill these gaps using two contending approaches. In particular, Datar et al. (2001) uses an agency model to select the optimal set of weights and more recently Herath et al. (2009) develop a mathematical programming–based collaborative decision model to find the optimal (or approximately optimal) set of target and weights considering inputs from two parties. In this article, we apply the Herath et al. (2009) model to a detailed BSC example. We demonstrate how the collaborative BSC model can be implemented in Microsoft Excel by practitioners to minimize BSC conflicts. Finally, we discuss how the model facilitates alignment and a culture of open reporting (information sharing) around the BSC that is necessary for its effective implementation.

Political institutions and contemporary workplaces operate according to different rules. The seeming contradiction between these two spheres, one democratic and the other something else, presents an opportunity for productive speculation about the possibilities for reconciliation. The purpose of this paper is to provide a guide for future research investigation of this perennial topic.

The discussion of whether the workplace can catch up with the democratic achievements of political life requires an understanding of the status quo, the prevailing frames or metaphors that govern our understanding of organizational life. Four metaphors are put forward to describe the prevailing spectrum of thought. In addition to metaphors, analogies are introduced as an interpretive tool to help guide the imaginative transition between political and workplace domains.

Democratic political cultures are supported by structures and institutions which encourage the expression of individual and collective voice. Workplaces, comprised of the same citizens who participate in the governance of communities, do not, with some important exceptions, offer the same opportunities for democratic participation. If a general analogy between political and workplace sphere is found persuasive, it should be possible to import and adapt democratic traditions from the former to the latter.

Discussions of workplace democracy often suffer from a certain naiveté, a bias against structure and toward informal consensus. Insofar as democratic workplaces are by definition smaller scale than political communities, this bias is defensible. This paper concludes however by asserting certain minimal “acid test” challenges to those who would promote the goal of workplace democracy.

This chapter is aimed at filling two important gaps in the large literature on high-involvement work system (HIWS). First, the existing literature tends to focus on North America and Western Europe, and detailed information on HIWS outside of the two regions (especially Asia) is still limited. Second, while there is a large body of quantitative evidence, the literature is relatively scant on detailed account of exactly how specific HIWS practices are implemented in the real workplace. This chapter draws on our extensive field research at firms in Japan, the United States, and Korea, and presents real-world examples of HIWS of firms in Japan, Korea, and the United States. Our detailed account of the implementation of HIWS in the three countries points to an intriguing process of transnational diffusion of HIWS. Japanese firms as early experimenters of HIWS posed a challenge to U.S. firms in the global marketplace, resulting in the trans-pacific diffusion of HIWS which is modified to the U.S. corporate culture. Due to its geographical proximity and historical connections to Japan, Korean firms were initially heavily influenced by Japanese HIWS. However, with the rising link to the United States and Europe, Japanese influence appears to have been waning, and interest in U.S. style HIWS and European-style state-mandated works council has risen, suggesting that a hybrid model may be emerging in Korea.

This study aims to investigate the nature of employee associations (EAs) and whether the EAs function as a collective voice similar to enterprise unions in Japanese small- and medium-sized enterprises by clarifying the differences in the determinants and effects between EAs and unions.

The authors analyze 2,440 Japanese small- and medium-sized firms for determinants of unions and EAs. Using the bivariate probit model, the authors examine whether EAs complement (a way station to unionization) or substitute for (dampening the desire for unionization) traditional unionization. Furthermore, the effects of EAs and unions on voluntary employee turnover rates are compared.

The authors' findings regarding EAs are as follows: (1) although owner-managers are averse to both unions and EAs, owner-managers are not as averse to EAs as to unions; (2) EAs reduce the turnover rate to the same extent as unions do and (3) EAs are voice institutions that are less affected by the influence of unions.

The limitations of this study are as follows: (1) the dataset is slightly outdated; (2) due to the absence of panel data, the authors could not capture unobserved time-invariant factors that are the primary sources of endogeneity and (3) to overcome this vulnerability, the authors were able to control for the characteristics of management but not for the characteristics of employees because of a lack of information.

This study clarifies that non-union employee representation (NER) has the unique feature of being neither complementary nor substitutive to unions in Japan's industrial relations. EAs are organized not for union avoidance by employers, but voluntarily by employees without the aim of unionization. The associations have the same function as unions in reducing the turnover rate by resolving employees' grievances as entities independent from management.

The purpose of this paper is to provide novel and rigorous evidence on the productivity effect of varying attributes of performance-related pay (PRP) and shows that the details of PRP indeed matter.

In doing so, the authors exploit the panel nature of the Finnish Linked Employer–Employee Data on the details of PRP.

The authors first establish that the omitted variable bias is serious, which makes the cross-sectional estimates on the productivity effect of the details of PRP biased upward substantially. Relying on the fixed effect estimates that account for such bias, the authors find: (first, group incentive PRP is more potent in boosting enterprise productivity than individual incentive PRP; second, group incentive PRP with profitability as a performance measure is especially powerful in raising firm productivity; third, when a narrow measure (such as cost reduction) is already used, adding another narrow measure (such as quality improvement) yields no additional productivity gain; and fourth, PRP with greater power of incentives (the share of PRP in total compensation) results in greater productivity gains, and returns to power of incentives diminishes very slowly.

Much of the empirical literature on PRP focuses on a question of whether the firm can increase firm performance in general and enterprise productivity in particular by introducing PRP and if so, how much. However, not all PRP programs are created equal and PRP programs vary significantly in a variety of attributes. This paper provides novel and rigorous evidence on the productivity effect of varying attributes of PRP and shows that the details of PRP indeed matter.

This paper aims to examine the effect employee performance has on subsequent corporate cash holdings.

The authors utilize panel data estimation, including an instrumental variable approach, to identify the relation between employee performance and subsequent corporate cash holdings. These panel data consist of 11,087 firm-year observations over the period 1992 to 2015.

The authors document a positive and statistically significant relation between firm employee performance and subsequent cash balances. A one standard deviation increase in employee performance is associated with an increase in cash holdings ranging from 1 to 2 percent. The findings support the view that firms seek to accommodate the preferences of better performing employees, thereby requiring greater levels of cash. This positive relation is most evident among firms with low bond ratings and firms with low managerial ability – characteristics that are indicative of a firm's ability to access capital markets.

Better corporate governance of the firm is commonly associated with lower levels of cash. The findings of this paper, however, suggest that holding greater levels of cash may be a consequence of corporate efforts to accommodate the needs of their employees. The predictive content of employee performance is orthogonal to existing determinants of corporate cash holdings shown in the literature. Furthermore, this paper shows the potential for firm cash balances to be an alternative and transparent measure that signals better employee performance and more socially responsible firm behavior.

The purpose of this study is to investigate the moral licensing effect of other in-group members' organizational citizenship behavior (OCB) on focal employees' organizational deviance through moral self-concept. This paper also examines the moderating role of in-group identification in the mediated relationship.

The multilevel path analysis and bootstrapping technique are employed to analyze the findings of a sample of 340 employees in 56 workgroups in Vietnam.

The results demonstrate that moral self-concept mediates the positive relationship between other in-group members' OCB and focal employees' organizational deviance. Furthermore, the findings indicate that in-group identification strengthens the indirect effect of other in-group members' OCB on focal employees' organizational deviance via moral self-concept.

The findings suggest that managers should be aware of the potential negative consequences of OCB and the drawbacks of in-group identification in group contexts. In addition, practitioners should proactively prevent other in-group members' OCB from resulting in employees' organizational deviance.

This is the first study to examine the moral licensing effect of OCB on organizational deviance through the moral self-concept mechanism and the moderating role of in-group identification in this mediated relationship.

Using data from the 2013 European Company Survey, this chapter operationalizes the representation gap as the desire for greater employee involvement in decision-making expressed by the representative of the leading employee representative body at the workplace. According to this measure, there is evidence of a substantial shortfall in employee involvement in the European Union, not dissimilar to that reported for the United States. The chapter proceeds to investigate how the size of this representation gap varies by type of representative structure, information provided by management, the resource base available to the representatives, and the status of trust between the parties. Perceived deficits are found to be smaller where workplace representation is via works councils rather than union bodies. Furthermore, the desire for greater involvement is reduced where information provided the employee representative on a range of establishment issues is judged satisfactory. A higher frequency of meetings with management also appears to mitigate the expressed desire for greater involvement. Each of these results is robust to estimation over different country clusters. However, unlike the other arguments, the conclusion that shortfalls in employee involvement representation are smaller under works councils than union bodies is nullified where trust in management is lacking.

Using data from a retail chain of 193 bakery shops that underwent downsizing, we study the effects of two types of downsizing announcements – closure or sale to another operator – on sales in the affected shops, and how these effects are moderated by job security perceptions. On average, sales in the affected shops go down by 26% after a closure announcement and by 7% after a sale announcement. Sales decline more sharply in shops where employees had higher job security perceptions before the announcement. Our findings are consistent with psychological contract theory: a breach of an implicit contract promising job security in exchange for work effort results in a reciprocal effort withdrawal. We rule out several alternative explanations to our findings.

The purpose of this paper is to take a serious look at the relationship between joint consultation systems at the workplace and employee satisfaction, while at the same time accounting for the (possible) interactions with similar union and management-led high commitment strategies.

Using new, rich data on a representative sample of British workers, the authors identify workplace institutions that are positively associated with employee perceptions of work and relations with management, what in combination the authors call a measure of the “good workplace.” In particular, the authors focus on non-union employee representation at the workplace, in the form of joint consultative committees (JCCs), and the potential moderating effects of union representation and high-involvement human resource (HIHR) practices.

The authors’ findings suggest a re-evaluation of the role that JCCs play in the subjective well-being of workers even after controlling for unions and progressive HR policies. There is no evidence in the authors’ estimates of negative interaction effects (i.e. that unions or HIHR negatively influence the functioning of JCCs with respect to employee satisfaction) or substitution (i.e. that unions or HIHR are substitutes for JCCs when it comes to improving self-reported worker well-being). If anything, there is a significant and positive three-way moderating effect when JCCs are interacted with union representation and high-involvement management.

This is the first time – to the authors’ knowledge – that comprehensive measures of subjective employee well-being are being estimated with respect to the presence of a JCC at the workplace, while controlling for workplace institutions (e.g. union representation and human resource policies) that are themselves designed to involve and communicate with workers.