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Purpose – Since risk management is crucial for achieving strategic objectives in a complex and uncertain environment and its effectiveness relies deeply on efforts to create a risk-conscious culture, this study aims at understanding whether risk management can be promoted and reinforced by the use of performance-based monetary incentives given to Board members and top managers.

Methodology/approach – This study is explorative in nature and investigates four case studies based on document analysis and semi-structured interviews with risk managers.

Findings – Results show that some companies have already adopted risk measures in incentive schemes. At the same time all interviewees agree with the usefulness of linking traditional performance-based monetary incentives to risk management objectives in order to improve the effectiveness of the latter and to create a risk-aware culture. However, the difficulty in identifying proper measures has been underlined.

Practical implications – The study confirms the feasibility of linking risk dimensions to reward systems and suggests that firms should move in this direction. The study also outlines and proposes some possible measures to reward managers.

Limitations – This study views risk as measurable and managerially actionable and focuses only on incentives while acknowledging the use of other mechanisms that can contribute to the creation of an informed risk culture. Furthermore, the integration of risk management with other management control systems and accounting instruments has not been analyzed.

Value of the paper – This study addresses firms and their stakeholders’ need to make top managers more accountable for risk in their decision-making.

Organizational behavior scholars have long recognized the importance of a variety of emotion-related phenomena in everyday work life. Indeed, after three decades, the span of research on emotions in the workplace encompasses a wide variety of affective variables such as emotional climate, emotional labor, emotion regulation, positive and negative affect, empathy, and more recently, specific emotions. Emotions operate in complex ways across multiple levels of analysis (i.e., within-person, between-person, interpersonal, group, and organizational) to exert influence on work behavior and outcomes, but their linkages to human resource management (HRM) policies and practices have not always been explicit or well understood. This chapter offers a review and integration of the bourgeoning research on discrete positive and negative emotions, offering insights about why these emotions are relevant to HRM policies and practices. We review some of the dominant theories that have emerged out of functionalist perspectives on emotions, connecting these to a strategic HRM framework. We then define and describe four discrete positive and negative emotions (fear, pride, guilt, and interest) highlighting how they relate to five HRM practices: (1) selection, (2) training/learning, (3) performance management, (4) incentives/rewards, and (5) employee voice. Following this, we discuss the emotion perception and regulation implications of these and other discrete emotions for leaders and HRM managers. We conclude with some challenges associated with understanding discrete emotions in organizations as well as some opportunities and future directions for improving our appreciation and understanding of the role of discrete emotional experiences in HRM.

It is fundamental to good governance that corporate decision makers be well informed, have the knowledge-base necessary to use the information effectively, and share the same motivations as the owners. Further, managers must provide owners with accurate, timely, and complete disclosure of the company's positions. Regarding the first part of the problem, value-based incentive systems have been under development in order to aid in resolving conflicts of interest between owners who lack the specific information (or the background knowledge to utilize it) and the managers who act as their agents. Such systems often focus exclusively upon cash flows relative to resource investment; yet, share values are often substantially greater than the amount that could be explained by expected cash flows from existing operations. Indeed, in some firms the majority of share value may derive from growth opportunities or other real options that add flexibility or reduce risk. So, value-based incentive systems could be improved by explicitly rewarding actions that create or enhance the firm's real options. Further, satisfactory disclosure requires that accounting reports include adequate information about the firm's real options, with market-based mechanisms for defining the necessary information and calling it into the appropriate arena.

The topic of non-budget firms is currently of interest because of many factors including cost, morale, and functionality. Using survey findings, this study adds to that body of knowledge by exploring characteristics of firms that do not use budgets. The results from this study suggest that no-budget firms continue to plan and monitor the performance of the company through other means. Key success factors are often used to evaluate firm outcomes and to reward managers, where these factors are generally linked to the firm's strategy. The majority of the firms from this survey focus on cash flow and short-term finances as a means to plan. The primary key success factors for measuring firm performance are based on earnings and revenue. The same holds for creating links between performance and efforts as a vehicle for rewarding management. Further, whether a firm faces a stable or turbulent environment is irrelevant with respect to the choice of key success factors.

The purpose of this paper is to bridge the boundaries separating strategic and comparative institutional perspectives on human resource systems and employment relations. Each research tradition has investigated the role and outcomes of corporations as they operate in an increasingly global economy. Researchers in these traditions, however, ask different research questions and draw on distinct social science disciplines, theoretical assumptions, and research methodologies. While they have pursued parallel but separate tracks, we argue that they have important lessons for each other. In this paper, we review the core characteristics and critiques of each research tradition, provide a series of examples of efforts to bridge their differences, and offer suggestions for future integration.

Although a need for innovative approaches to the strategic management of human resources (HR) has been identified, many firms continue to rely solely on their HR information systems instead of adapting to the digital consumer with innovative tools and digital HR management (d-HRM). This research aims to evaluate critically the degree of digital innovation of HR practices in the Irish hotel industry.

For this qualitative study, a total of 10 semi-structured interviews were conducted with key personnel at both corporate and property level HR in the two largest Irish hotel groups.

Findings show an overall lack of technological innovation and most of the principal HR activities are digitalised to a very limited extent. In addition, the perception of the degree of digitalisation varies significantly between the managers in both organisations.

In order to attract digital natives and to increase their competitiveness within the sector, Irish hotel corporations will need to invest significantly in innovation within their HR departments to capitalise on the strategic and operational advantages of d-HRM. Thus, a more strategic approach towards HR innovation is needed.

This chapter operationalises the concept of HR innovation in the context of the hotel industry; it analyses the key HR activities in hotel operations with regard to the extent to which they are digitalised; and it develops a model of HR digitalisation that can be applied to the hotel and other industries. This research, therefore, contributes to the existing body of knowledge on HR innovation with a specific focus on the hotel industry.