Research shows scale of financial compensation, company culture and senior management performance have big influence on decisions to leave companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Binary Classification ◽  
Senior Management ◽  
Management Performance ◽  
Job Transition ◽  
Financial Compensation ◽  
Content Type ◽  
Employee Attrition ◽  
Decisions To Leave ◽  
Company Culture ◽  
The Impact

Purpose The purpose of this study is to develop tree-based binary classification models to predict the likelihood of employee attrition based on firm cultural and management attributes. Design/methodology/approach After preliminary analysis, the authors tested three hypotheses. One was: “Conditioned on an increase in salary, the magnitude of increase enhances the likelihood that an employee will leave their current firm despite differences between the old and new firm culture.” Two was: “Employees whose original firm has an overall rating greater than the 75th percentile that was also founded before 1900 are more likely to stay…” Finally, three was that: “Employees that maintain a low overall original firm rating are more likely to leave their firm upon a job transition, whereas those with higher overall ratings have a greater chance of remaining.” Findings After analyzing thousands of online resumes submitted to Glassdoor’s portal, the authors found that the scale of financial compensation, the company culture and senior management performance all played a major role in influencing decisions to move on. Originality/value They offered three concrete recommendations based on the study. First, they said it was vital for companies to maintain strong Glassdoor.com ratings. The results revealed that firms in the top 10% of ratings were over 30% more likely to retain employees during a job transition than companies in the lowest 10%. Second, providing competitive salaries was necessary. Finally, the data showed a large discrepancy between senior management and CEO Glassdoor ratings. The researchers advised HR departments to closely monitor the impact of senior management behaviour.

Predicting employee attrition using tree-based models

2020 ◽  
Vol 28 (6) ◽  
pp. 1273-1291
Author(s):  
Nesreen El-Rayes ◽  
Ming Fang ◽  
Michael Smith ◽  
Stephen M. Taylor
Keyword(s):  
Random Forest ◽  
Decision Tree ◽  
Prediction Models ◽  
Binary Classification ◽  
Primary Role ◽  
Classification Models ◽  
Job Transition ◽  
Data Set ◽  
Content Type ◽  
Employee Attrition

Purpose The purpose of this study is to develop tree-based binary classification models to predict the likelihood of employee attrition based on firm cultural and management attributes. Design/methodology/approach A data set of resumes anonymously submitted through Glassdoor’s online portal is used in tandem with public company review information to fit decision tree, random forest and gradient boosted tree models to predict the probability of an employee leaving a firm during a job transition. Findings Random forest and decision tree methods are found to be the strongest attrition prediction models. In addition, compensation, company culture and senior management performance play a primary role in an employee’s decision to leave a firm. Practical implications This study may be used by human resources staff to better understand factors which influence employee attrition. In addition, techniques developed in this study may be applied to company-specific data sets to construct customized attrition models. Originality/value This study contains several novel contributions which include exploratory studies such as industry job transition percentages, distributional comparisons between factors strongly contributing to employee attrition between those who left or stayed with the firm and the first comprehensive search over binary classification models to identify which provides the strongest predictive performance of employee attrition.

Analyzing the influence of learning orientation and innovativeness on performance of public organizations

2016 ◽  
Vol 35 (2) ◽  
pp. 134-153 ◽  
Author(s):  
Kayhan Tajeddini
Keyword(s):  
Public Organizations ◽  
Business Environment ◽  
Learning Orientation ◽  
Content Type ◽  
Sustainable Performance ◽  
Developing Cities ◽  
Company Culture ◽  
Research Findings ◽  
Managerial Positions ◽  
The Impact

Purpose – There is growing concern about the performance of public organizations (POs) in developing countries. Despite the fact that the advantages of innovation and learning orientation to organizations have been evidently documented in Western economies and private owned enterprises, there has been little research into these practices and their impact on enhancing competitive advantages in POs in transitional economies such as Iran. The purpose of this paper is to examine the effect of innovation and learning orientation on performance of POs in Iran. Design/methodology/approach – This paper draws on theory from innovation and learning orientation in conjunction with a strategic-centered model to carry out a survey-based study of 127 senior level managers (e.g. CEOs, planning, finance, HR and marketing managers) of POs and/or their cluster companies in six major developed and developing cities of Iran. Findings – The research findings show that learning orientation and innovativeness leads to better PO performance and should be encouraged. More specifically, the results suggest that higher levels of learning orientation and innovativeness led these organizations to higher levels of delivery speed, cost improvement, and quality confidence in firm future PO performance. Research limitations/implications – Data were gathered via a questionnaire administered to senior level managers of some POs and/or their clusters in some cities in Iran. Further research is required to understand the contextual factors that influence internal company culture. For example, there are relatively few women in managerial positions in Iranian companies; and the impact of a restricted business environment appears to vary from service to retail and manufacturing industries. Practical implications – This study is important for managers of public sectors. From empirical evidence, the authors found that PO managers must consider innovativeness and learning as two crucial strategic capabilities for a superior and sustainable performance. Originality/value – The study provides insights into the types of activities that PO management should undertake in order to enhance economic performance.

Women’s presence in top management and the performance of microfinance institutions in West Africa

2019 ◽  
Vol 47 (2) ◽  
pp. 207-222 ◽  
Author(s):  
Hamadou Boubacar
Keyword(s):  
Peer Review ◽  
Social Performance ◽  
West African ◽  
Senior Management ◽  
Social Orientation ◽  
Top Management ◽  
Microfinance Institutions ◽  
Content Type ◽  
The Social ◽  
The Impact

Purpose The purpose of this paper is to investigate the relationship between the presence of women in senior management and the performance of microfinance organizations in the West African Economic and Monetary Union (WAEMU). Design/methodology/approach Using a data set of 266 microfinance institutions (MFIs) for the period 2013–2017, the study assesses the impact of women’s representation in senior management and on the boards of West African MFIs on these institutions’ financial and social performance. Findings The results indicate that board size and diversity positively and significantly affect the social performance of MFIs, particularly in relation to women’s participation in decision-making regarding expanding services to poor people. In essence, greater gender diversity at the board and management levels promotes the social orientation of MFIs. Research limitations/implications The low representation of women on boards and as managers makes it difficult to more accurately determine the true impact of women in senior positions on MFIs performance. Practical implications The author recommends minimum quotas for women in the top management of MFIs. This would help these institutions incorporate key skills and actively involve all members. Also, regulation places constraints on the ability of West African MFIs to mobilize deposits and this negatively impacts their financial performance. Originality/value This investigation highlights the importance of including women in the top management of MFIs to improve these institutions’ performance. It also underscores an interesting problem and answers questions raised in the existing literature by either rejecting or confirming the findings. As players in the microfinance sector recognize that board diversity is important for the success of any microfinance institution, this paper helps shed light on the situation of these organizations in the WAEMU. Peer review The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-06-2019-0365

Innovation in public organizations: do government reforms matter?

2020 ◽  
Vol 33 (6/7) ◽  
pp. 731-749
Author(s):  
Imane Hijal-Moghrabi ◽  
Meghna Sabharwal ◽  
Kannan Ramanathan
Keyword(s):  
Public Sector ◽  
Environmental Factors ◽  
New Public Management ◽  
Organizational Innovation ◽  
Organizational Factors ◽  
Senior Management ◽  
Management Support ◽  
Content Type ◽  
Public Sector Organizations ◽  
The Impact

PurposeThe purpose of this study is to examine the impact of New Public Management (NPM) reforms/practices on innovation in public sector organizations. Although much is written on NPM, the assumption that NPM reforms stimulate organizational innovation has not been empirically tested. The present study is an attempt to bridge this research gap.Design/methodology/approachBuilding on open-systems approach, institutional theory, and innovation research, this study argues that organizational innovation occurs in response to stimuli in the external (environmental factors) and internal environment (organizational factors), considering NPM reforms/practices as a proxy for external or environmental factors. Organizational factors include formal structural complexity, senior management support and job security. The study tests this model using data from a national survey conducted in five states in the US.FindingsThe study provides empirical insights into our understanding of the factors that drive innovation in public sector organizations. The study finds that although environmental factors are as significant as organizational factors in driving innovation in the public sector, senior management support remains the most important predictor of innovation.Originality/valueThis paper fulfils an identified need to study the effect of NPM reforms and practices on innovation in public organizational settings.

Internal auditor characteristics, internal audit effectiveness, and moderating effect of senior management

2016 ◽  
Vol 32 (2) ◽  
pp. 160-176 ◽  
Author(s):  
Khaled Ali Endaya ◽  
Mustafa Mohd Hanefah
Keyword(s):  
Multiple Regression ◽  
Internal Audit ◽  
Moderating Effect ◽  
Senior Management ◽  
Management Support ◽  
Internal Auditing ◽  
Internal Auditor ◽  
Content Type ◽  
The Impact ◽  
Audit Effectiveness

Purpose The purpose of this paper is to investigate the direct relationship between internal auditor’s characteristics[1] and internal audit effectiveness[2], and the moderating effect of senior management[3] support. Design/methodology/approach Standard multiple regression and moderated multiple regression are applied, and the data were collected from 114 members of Libyan Association of Accountants and Auditors[4] by using personally administered questionnaire. Findings The findings reveal that internal auditor’s characteristics have a significant impact on internal audit effectiveness, and senior management support has a moderating effect. Practical implications The findings would encourage Libyan organizations to concentrate on the issue of internal audit effectiveness, and will strengthen the capacity of internal auditing in public organizations. Originality/value This paper contributes to the literature of both internal audit and management studies and represents the first effort to examine the impact of internal auditor’s characteristics on internal audit effectiveness with senior management support as a moderating variable.

SFC’s new guidance note redefines cooperation in disciplinary, civil court and market misconduct tribunal proceedings

2018 ◽  
Vol 19 (3) ◽  
pp. 45-47
Author(s):  
Cynthia Tang ◽  
Bryan Ng ◽  
Gloria Ng
Keyword(s):  
Financial Services ◽  
Positive Impact ◽  
Early Stage ◽  
Active Role ◽  
Current Approach ◽  
Senior Management ◽  
Content Type ◽  
Civil Court ◽  
Guidance Note ◽  
The Impact

Purpose The purpose of this paper is to discuss the new “Guidance Note on Cooperation with the SFC” released by the Hong Kong Securities and Futures Commission (“SFC”) on 12 December 2017, which updates the SFC’s previous guidance note issued in 2006. Design/methodology/approach This paper explains key features to the guidance note, the SFC’s current approach in investigations and enforcement and the impact on regulated parties and senior management. In particular, the authors discuss what cooperation means in disciplinary, civil court and market misconduct tribunal proceedings. Findings The new guidance note confirms that the SFC will play an increasingly active role in investigations and that taking proactive steps at an early stage, including involving senior management, will have a positive impact on the outcome of the investigation. Originality/value Commentary and practical guidance from experienced securities enforcement and financial services regulatory enforcement lawyers.

The impact of industry, firm age and education level on financial management performance in small and medium-sized enterprises (SMEs)

2017 ◽  
Vol 9 (3) ◽  
pp. 300-314 ◽  
Author(s):  
Hande Karadag
Keyword(s):  
Small Business ◽  
Financial Management ◽  
Education Level ◽  
Equation Modeling ◽  
Firm Age ◽  
Management Performance ◽  
Content Type ◽  
Significant Difference ◽  
The Impact ◽  
Practical Implications

Purpose Small- and medium-sized enterprises (SMEs) are crucial for socio-economic growth due to their significant role in creating new workforce, gross domestic product increase, innovation and entrepreneurship. This paper aims to examine financial management performance in SMEs with regard to industry, firm age and education level of owner/managers differences. Design/methodology/approach The data used in the study are collected from 188 SMEs through structured questionnaires, and three hypotheses regarding the associations are tested by using structural equation modeling. Findings Findings of one-way ANOVA tests indicate that performance in financial management practices has a strong and positive correlation with education level of small business owner/managers, whereas no significant difference is found regarding SMEs operating in different industries. For the impact of company age, independent samples t-test is conducted, and a meaningful difference between small- and medium-sized companies which are five years or older and younger is found. Research limitations/implications This study shows that a significant difference for age of an SME is present between over and under five-year-old SMEs, with respect to financial management performance, which is an important finding for both small business and financial management literatures. The tests regarding the particular hypotheses about education level of SME owner/managers indicate that education level of SME owner/managers significantly impacts financial management performance. Practical implications The present study provides important practical implications. First, the importance of education level of owner/managers on SME financial performance is highlighted. Second, strong empirical support is found for the impact of company age on SME performance, which might be discussed as the importance of accumulation of knowledge of the owner/managers and the changes required with the growth patterns of the company, with increasing company age. Third, the study shows that industry differences do not exhibit a significant performance variation factor in financial management of SMEs, with respect to other demographic factors. Overall, these contributions help us better understand the financial management performance indicators in small and medium sized businesses. Originality/value This study focuses on company age, education level and industry differences with respect to financial management performance in SMEs in emerging economies, therefore provides additional empirical evidence to a research area where very few empirical studies exist.

The use of maturity models in improving project management performance

2014 ◽  
Vol 7 (2) ◽  
pp. 231-246 ◽  
Author(s):  
Naomi Brookes ◽  
Michael Butler ◽  
Prasanta Dey ◽  
Robin Clark
Keyword(s):  
Project Management ◽  
Empirical Investigation ◽  
Maturity Model ◽  
Wisdom Of Crowds ◽  
Management Performance ◽  
Maturity Models ◽  
Content Type ◽  
Case Research ◽  
Cross Case Analysis ◽  
The Impact

Purpose – The purpose of the paper was to conduct an empirical investigation to explore the impact of project management maturity models (PMMMs) on improving project performance. Design/methodology/approach – The investigation used a cross-case analysis involving over 90 individuals in seven organisations. Findings – The findings of the empirical investigation indicate that PMMMs demonstrate very high levels of variability in individual's assessment of project management maturity. Furthermore, at higher levels of maturity, the type of performance improvement adopted following their application is related to the type of PMMM used in the assessment. The paradox of the unreliability of PMMMs and their widespread acceptance is resolved by calling upon the “wisdom of crowds” phenomenon which has implications for the use of maturity model assessments in other arena. Research limitations/implications – The investigation does have the usual issues associated with case research, but the steps that have been taken in the cross-case construction and analysis have improved the overall robustness and extendibility of the findings. Practical implications – The tendency for PMMMs to shape improvements based on their own inherent structure needs further understanding. Originality/value – The use of empirical methods to investigate the link between project maturity models and extant changes in project management performance is highly novel and the findings that result from this have added resonance.

The More Control, the Better?

2014 ◽  
Vol 26 (2) ◽  
pp. 81-91 ◽  
Author(s):  
Jeeyun Oh ◽  
Mun-Young Chung ◽  
Sangyong Han
Keyword(s):  
Mixed Design ◽  
Negative Effects ◽  
Story Structure ◽  
Content Type ◽  
High User ◽  
User Control ◽  
Rigorous Research ◽  
Control Versus ◽  
The Media ◽  
The Impact

Despite of the popularity of interactive movie trailers, rigorous research on one of the most apparent features of these interfaces – the level of user control – has been scarce. This study explored the effects of user control on users’ immersion and enjoyment of the movie trailers, moderated by the content type. We conducted a 2 (high user control versus low user control) × 2 (drama film trailer versus documentary film trailer) mixed-design factorial experiment. The results showed that the level of user control over movie trailer interfaces decreased users’ immersion when the trailer had an element of traditional story structure, such as a drama film trailer. Participants in the high user control condition answered that they were less fascinated with, absorbed in, focused on, mentally involved with, and emotionally affected by the movie trailer than participants in the low user control condition only with the drama movie trailer. The negative effects of user control on the level of immersion for the drama trailer translated into users’ enjoyment. The impact of user control over interfaces on immersion and enjoyment varies depending on the nature of the media content, which suggests a possible trade-off between the level of user control and entertainment outcomes.

Bookkeeper-Controller-CFO: The Rise of the Chief Financial and Chief Accounting Officer

2019 ◽  
Vol 46 (2) ◽  
pp. 1-8 ◽  
Author(s):  
Michael Doron ◽  
C. Richard Baker ◽  
Kiren Dosanjh Zucker
Keyword(s):  
Corporate Governance ◽  
Corporate Finance ◽  
20Th Century ◽  
Financial Reporting ◽  
Legal Liability ◽  
Senior Management ◽  
Chief Financial Officers ◽  
Management Positions ◽  
The Impact

ABSTRACT This paper traces the evolution of the chief accounting and chief financial officers from minor figures in corporate governance for most of the 20th century to senior management positions by the late 1970s. The paper begins with the testimony before Congress of Arthur Tucker during the debates over the legislation that would become the 1933 Securities Act. Tucker's testimony resulted in the controller or chief accounting officer being included among those persons specifically listed as potentially liable for fraudulent statements or omissions under Section 11 of the Act. The impact of Tucker's efforts, the evolution of the legal liability of financial and accounting officers over the next several decades, the increasing complexity of corporate finance and financial reporting that led to the establishment of the CFO as a position second only to the CEO, and the place of the accounting officer among senior management, are analyzed in the subsequent sections.

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