Incentive pay configurations: bundle options and country-level adoption

2016 ◽  
Vol 4 (1) ◽  
pp. 49-66 ◽  
Author(s):  
Nicholas R. Prince ◽  
J. Bruce Prince ◽  
Bradley R. Skousen ◽  
Rüediger Kabst
Keyword(s):  
Design Methodology ◽  
Profit Sharing ◽  
Institutional Factors ◽  
Incentive Pay ◽  
Employee Behavior ◽  
Content Type ◽  
Country Level ◽  
Random Intercept ◽  
Geographic Regions ◽  
Practical Implications

Purpose – Organizations worldwide are faced with the challenge of motivating and retaining employees. In addressing this challenge, organizations may use a variety of incentive pay practices to align employee behavior with organizational objectives. The purpose of this paper is to empirically identify the incentive pay practice configurations or bundles adopted by private sector firms across 14 different countries from several geographic regions. The patterns of incentive pay configuration adoption for each country are evaluated. Design/methodology/approach – Cluster analysis, ANOVA, and multilevel random-intercept logistic modeling are utilized on firms from the 2009 CRANET HRM survey. Findings – Phase I of this study empirically identifies four different configurations (contingent rewarder, incentive minimizer, incentive maximizer, and profit rewarder) derived from three incentive pay practices (individual bonus, team bonus, and profit sharing practices) that firms adopt. Phase II evaluates adoption rates by country and finds striking differences in incentive configurations that firms avoid or adopt. Some countries have clear adoption preferences (e.g. Denmark, Sweden, Japan, and France). In other countries firms employ a variety of incentive bundles (e.g. USA, UK, and Germany) and seem to be less constrained by country-based institutional factors. Research limitations/implications – Incentive practices are typically studied independent of the configuration of practices that firms select. This research helps us understand the typical bundles in use. Practical implications – Organizations worldwide are faced with the need to motivate employees. This research maps the incentive bundles preferred in each of 14 countries. Social implications – Employees in different countries come to work with expectations about pay and these shape their perceptions of incentive fairness. Originality/value – Research on incentives has tended to focus independently on specific practices and ignore the reality that organizations generally select multiple practices. This research identifies the combinations of incentive practices generally used and does so with firms from 14 countries from various world regions. These results also offer a map of the incentive bundles preferred in each country.

Designing incentive pay practices to motivate not alienate: why firms adopt different payment practice configurations in different countries

2016 ◽  
Vol 24 (5) ◽  
pp. 7-9 ◽  
Author(s):  
Pauline Drury
Keyword(s):  
Profit Sharing ◽  
Incentive Pay ◽  
Human Resource Professionals ◽  
Incentive Payment ◽  
Process Of Change ◽  
Content Type ◽  
The Difference ◽  
Practical Implications ◽  
Designing Incentive ◽  
Number Of Firms

Purpose Examines the reward structures used by private-sector firms in different locations. Design/methodology/approach Analyzes the prevailing incentive pay practice configurations in 14 countries over four continents. Investigates the extent to which local factors constrain firms’ use of personal and team bonuses or profit-sharing. Findings “When in Rome, do as the Romans do” – an old saying but still relevant for the growing number of firms operating in several countries. A well-thought-out incentive scheme encourages employees to think and act in ways that support company objectives. But people in different places can have different ideas about what is fair and appropriate. Human resource professionals have to decide whether to follow the local norms or to introduce the firm’s established practices – and an informed decision can make the difference between having a motivated workforce or making an expensive mistake. Practical implications Observes that organizations in some countries show a strong preference for a particular bundle of incentive options. Warns that introducing a different approach may prove counter-productive unless combined with a careful process of change management. Social implications Highlights the importance of institutional context and social norms in determining the incentive pay configurations adopted in different countries. Originality/value Provides an international guide to prevailing patterns of incentive payment adoption. Shows that external constraints specific to individual countries can have a significant impact on the flexibility of incentive system design.

Profit-sharing investment accounts in islamic banks or mutualization, accounting perspective

2016 ◽  
Vol 14 (1) ◽  
pp. 30-48 ◽  
Author(s):  
Wasim K. AlShattarat ◽  
Muhannad A. Atmeh
Keyword(s):  
Financial Reporting ◽  
Mutual Fund ◽  
Design Methodology ◽  
Profit Sharing ◽  
Islamic Banks ◽  
Content Type ◽  
Implementation Challenges ◽  
Total Profit ◽  
Practical Implications

Purpose Islamic banks use Mudarabah contract to replace the interest-bearing deposits with profit-sharing investment accounts. The purpose of this paper is to explore the challenges and problems associated with the employment of Mudarabah contract by Islamic banks. Design/methodology/approach The study critically analyzes the Mudarabah contract used by Islamic banks. It reviews the evolution of the contract from its traditional type to more complicated types such as compound, unrestricted, commingled and continuous Mudarabah. The paper investigates the problems that have emerged from implementing such types in current business settings. Findings The paper proves that implementing the Mudarabah contract by banks imposes several problems among which are the following: difficulty in the determination of total profit resulting from Mudarabah and in allocating this profit to the multiple parties involved in Mudarabah; usage of reserves to cater against future losses may undermine the concept of Mudarabah profit-loss sharing and lead to earnings management; corporate governance is also a major problem in Mudarabah contract, as the depositors are exposed to risks but have no governance rights; and Mudarabah may also lessen the fair presentation of financial reporting. Research limitations/implications The paper examines the evolving Mudarabah contract and its implementation challenges, based on available literature (no empirical analysis was conducted). Practical implications The implications are significant for the future development of Islamic contracts and Islamic accounting treatments. Originality/value Many studies explored the Mudarabah contract from a Shariah or law perspective. However, this paper investigates the Mudarabah contract with a focus on the implication on accounting and financial reporting because of the lack of studies in this area. Furthermore, it demonstrates the persistent flaws in the Mudarabah contract, and it proposes a new model for mobilizing funds, i.e. mutual fund.

Fairness and the fast food employee

2018 ◽  
Vol 26 (5) ◽  
pp. 8-10
Keyword(s):  
Case Studies ◽  
Customer Service ◽  
Fast Food ◽  
Design Methodology ◽  
Reading Time ◽  
Customer Behavior ◽  
Employee Behavior ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

PurposeThis paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.Design/methodology/approachThis paper is prepared by an independent writer who adds their own impartial comments and places the articles in context.FindingsIs the customer always right? This somewhat hackneyed phrase is still trotted out by many managers when seeking to underline the importance of customer service. Of course, all employees should aim to give the best service they are able to within the parameters of their role, but sometimes, the customer may not be all they seem to be, and employee behavior has to be understood more widely. After all, we all have seen customer behavior that lacks any kind of respect for retail employees. We may even have been guilty of this ourselves.Practical implicationsThis paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.Originality/valueThe paper saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent, information and presenting it in a condensed and easy-to-digest format.

Implementing corporate sustainability

2014 ◽  
Vol 5 (4) ◽  
pp. 378-404 ◽  
Author(s):  
Sarah Elena Windolph ◽  
Stefan Schaltegger ◽  
Christian Herzig
Keyword(s):  
Design Methodology ◽  
Corporate Sustainability ◽  
Positive Influence ◽  
Institutional Factors ◽  
Management Tools ◽  
Sustainability Management ◽  
Content Type ◽  
Practical Implications ◽  
Corporate Practice

Purpose – The purpose of this paper is to conduct an empirical analysis among large German companies to enhance the understanding of whether and which institutional factors influence the application of sustainability management tools. Stepping from corporate sustainability visions to implementation requires the application of management tools. A multitude of sustainability management tools have been proposed in literature. Research on their application in corporate practice is, however, scarce. Design/methodology/approach – Based on a survey of large German companies and publicly available data, this paper tests the influence of corporate sustainability networks, indices, standards and the awareness of sustainability management tools on their application in corporate practice. Findings – A particularly strong positive relation exists between awareness and application of sustainability management tools. Standards are also found to have a positive influence, while the influence of networks and indices is less strong. Our findings suggest that the application of sustainability management tools can be fostered through the promotion and increasing awareness of tools. Research limitations/implications – The analysis is based on a survey of large German companies. Factors of institutional isomorphism are tested. Further research is needed for small- and medium-sized enterprises (SMEs) and the influence of further aspects such as competitive and psychological factors. Practical implications – The findings of this paper suggest that the application of sustainability management tools can be fostered particularly well through increasing awareness and the active promotion of tools. Networks, indices and standard help increase awareness. Originality/value – The analysis unveils the role of institutional factors influencing the application sustainability management tools in corporate practice.

Is independence really an opportunity? The experience of entrepreneur-mothers

2018 ◽  
Vol 25 (2) ◽  
pp. 313-329 ◽  
Author(s):  
Meraiah Foley ◽  
Marian Baird ◽  
Rae Cooper ◽  
Sue Williamson
Keyword(s):  
Conceptual Understanding ◽  
Design Methodology ◽  
Institutional Factors ◽  
Family Obligations ◽  
Content Type ◽  
Factors Affecting ◽  
Self Employment ◽  
The Social ◽  
Practical Implications

Purpose The purpose of this paper is to explore how entrepreneur-mothers experience independence in the transition to entrepreneurship, and whether they perceive independence as an agentic, opportunity-maximisation motive or a constrained, necessity-driven response. Design/methodology/approach Adopting a qualitative and interpretive approach, the authors analysed interviews with 60 entrepreneur-mothers to refine conceptual understanding of independence. Findings The authors find that entrepreneur-mothers experience independence not as an opportunity, but as a functional necessity in managing the temporal and perceived moral demands of motherhood. The authors assert that there is a fundamental difference between wanting independence to pursue a more autonomous lifestyle, and needing independence to attend to family obligations, a difference that is not adequately captured in the existing conceptualisation of independence. Consequently, the authors propose the classification of “family-driven entrepreneurship” to capture the social and institutional factors that may disproportionately push women with caregiving responsibilities towards self-employment. Practical implications This paper proposes that a new category of entrepreneurial motivation be recognised to better account for the social and institutional factors affecting women’s entrepreneurship, enabling policymakers to more accurately position and support entrepreneur-mothers. Social implications The authors challenge the existing framing of independence as an agentic opportunity-seeking motive, and seek to incorporate family dynamics into existing entrepreneurial models. Originality/value This paper delivers much-needed conceptual refinement of independence as a motivator to entrepreneurship by examining the experiences of entrepreneur-mothers, and proposes a new motivational classification, that of family-driven entrepreneurship to capture the elements of agency and constraint embedded in this transition.

Incentive pay configurations: the influence of national culture

2018 ◽  
Vol 6 (2) ◽  
pp. 187-202 ◽  
Author(s):  
Nicholas R. Prince ◽  
J. Bruce Prince ◽  
Rüediger Kabst
Keyword(s):  
National Culture ◽  
Profit Sharing ◽  
Incentive Pay ◽  
Separate Analysis ◽  
Content Type ◽  
Performance Orientation ◽  
Random Intercept ◽  
Country Culture ◽  
The Individual ◽  
Practice Bundles

Purpose The purpose of this paper is to investigate the influence of national culture on the adoption of four different incentive pay bundles (incentive maximizer, contingent rewarder, profit rewarder, and incentive minimizer) using GLOBE national culture dimensions in 14 countries. It uses incentive pay bundles derived by Prince et al. (2016). Design/methodology/approach The study adopted multilevel random-intercept logistic modeling using firm incentive practice usage from the CRANET database and country culture scores from the GLOBE study. Findings Evidence suggests that in-group collectivism is associated with increased use of the incentive maximizer approach, in which firms use a combination of high levels of individual, team, and profit sharing incentives, and decreased use of the incentive minimizer approach (where firms minimally employ incentives) and the individual and team bonus focused contingent rewarder configuration. Higher uncertainty avoidance is linked to increased use of the profit rewarder approach (where only profit sharing is emphasized) and decreased use of the contingent rewarder approach. Performance-orientation cultures appear to support using the incentive maximizer and avoiding the incentive minimizer bundles. Originality/value This study investigates incentive practice bundles that firms use verses separate analysis of practices and use the GLOBE culture metrics. It utilizes multilevel modeling, which has been lacking in past studies of culture and incentives.

The art of improvement

2017 ◽  
Vol 33 (5) ◽  
pp. 14-16
Keyword(s):  
Organizational Performance ◽  
Business Strategy ◽  
Design Methodology ◽  
Business Strategies ◽  
Employee Behavior ◽  
Improve Performance ◽  
Content Type ◽  
Pertinent Information ◽  
The Right ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings While it may seem obvious that business strategies are able to help improve organizational performance, not all research in this field has been conclusive or even positive. Different models have yielded different results. Overall, however, it can be seen that an appropriately constructed business strategy that fits the specific needs of an organization, when adopted in the right way, can improve performance. The key, however, is the integration of aspects of employee behavior. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Consumer value creation through WhatsApp use

2019 ◽  
Vol 32 (4) ◽  
pp. 455-471
Author(s):  
Jorge Cruz-Cárdenas ◽  
Jorge Guadalupe-Lanas ◽  
Ekaterina Zabelina ◽  
Andrés Palacio-Fierro ◽  
Margarita Velín-Fárez ◽  
...  
Keyword(s):  
Latin American ◽  
Value Creation ◽  
Emotional Support ◽  
Design Methodology ◽  
Instant Messaging ◽  
Role Performance ◽  
Content Type ◽  
Consumer Value ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to understand in-depth how consumers create value in their lives using WhatsApp, the leading mobile instant messaging (MIM) application. Design/methodology/approach The study adopts the perspective of customer-dominant logic (CDL) and uses a qualitative multimethod design involving 3 focus groups and 25 subsequent in-depth interviews. The research setting was Ecuador, a Latin American country. Findings Analysis and interpretation of the participants’ stories made it possible to identify and understand the creation of four types of value: maintaining and strengthening relationships; improving role performance; emotional support; and entertainment and fun. In addition, the present study proposes a conceptual model of consumer value creation as it applies to MIM. Practical implications Understanding the way consumers create value in their lives using MIM is important not only for organizations that offer MIM applications, but also for those companies that develop other applications for mobile phones or for those who wish to use MIM as an electronic word-of-mouth vehicle. Originality/value The current study is one of the first to address the topic of consumer behavior in the use of technologies from the perspective of CDL; this perspective enables an integrated qualitative vision of value creation in which the consumer is the protagonist.

scholarly journals Advantages and potential challenges of data management in e-maintenance

2019 ◽  
Vol 25 (3) ◽  
pp. 378-396 ◽  
Author(s):  
Arian Razmi-Farooji ◽  
Hanna Kropsu-Vehkaperä ◽  
Janne Härkönen ◽  
Harri Haapasalo
Keyword(s):  
Data Management ◽  
Design Methodology ◽  
Management Practices ◽  
Future Research ◽  
Conceptual Approach ◽  
Content Type ◽  
Different Types ◽  
Maintenance Systems ◽  
Industry Leader ◽  
Practical Implications

Purpose The purpose of this paper is twofold: first, to understand data management challenges in e-maintenance systems from a holistically viewpoint through summarizing the earlier scattered research in the field, and second, to present a conceptual approach for addressing these challenges in practice. Design/methodology/approach The study is realized as a combination of a literature review and by the means of analyzing the practices on an industry leader in manufacturing and maintenance services. Findings This research provides a general understanding over data management challenges in e-maintenance and summarizes their associated proposed solutions. In addition, this paper lists and exemplifies different types and sources of data which can be collected in e-maintenance, across different organizational levels. Analyzing the data management practices of an e-maintenance industry leader provides a conceptual approach to address identified challenges in practice. Research limitations/implications Since this paper is based on studying the practices of a single company, it might be limited to generalize the results. Future research topics can focus on each of mentioned data management challenges and also validate the applicability of presented model in other companies and industries. Practical implications Understanding the e-maintenance-related challenges helps maintenance managers and other involved stakeholders in e-maintenance systems to better solve the challenges. Originality/value The so-far literature on e-maintenance has been studied with narrow focus to data and data management in e-maintenance appears as one of the less studied topics in the literature. This research paper contributes to e-maintenance by highlighting the deficiencies of the discussion surrounding the perspectives of data management in e-maintenance by studying all common data management challenges and listing different types of data which need to be acquired in e-maintenance systems.

An exploratory empirical study of whistleblowing and whistleblowers

2020 ◽  
Vol 27 (3) ◽  
pp. 755-770
Author(s):  
Maria Krambia-Kapardis
Keyword(s):  
Statistical Analysis ◽  
Design Methodology ◽  
Research Topic ◽  
Due Date ◽  
Content Type ◽  
Unethical Behaviour ◽  
Eu Member States ◽  
European Directive ◽  
Original Survey ◽  
Practical Implications

Purpose The purpose of this study is to develop a profile of whistleblowers and to determine whether whistleblowing legislation would encourage those individuals to bring to light some illegal or unethical behaviour that otherwise would remain in the shadows. Design/methodology/approach Having identified whistleblowing correlation, a survey was carried out in Cyprus of actual whistleblowers and could-have-been whistleblowers. Findings Males between 46 and55 years of age, regardless of whether they have dependents or hold senior positions in organizations are significantly more likely to blow the whistle. However, could-have-been whistleblowers did not go ahead because they felt that the authorities would not act on their information. Research limitations/implications Because of the sensitive nature of the research topic and the fact that only whistleblowers or intended whistleblowers could participate in the study, the sample size is limited as a result. This, in turn, limits both the number of respondents in each category (actual and intended) as well as constrains the statistical analysis that could be carried out on the data. Practical implications It remains to be seen whether EU Member States shall implement the European Directive 2019/1937 on the protection of persons who report breaches of Union Law, in its entirety by the due date, namely December 2021. Originality/value This study provides a literature review of whistleblowing and reports an original survey against the backdrop of the European Directive.

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