The effect of a budget-based incentive compensation scheme on job performance

2016 ◽  
Vol 12 (4) ◽  
pp. 590-613 ◽  
Author(s):  
Vincent K. Chong ◽  
Maggie B.C. Law
Keyword(s):  
Organizational Commitment ◽  
Job Performance ◽  
Interpersonal Trust ◽  
Incentive Compensation ◽  
Compensation Scheme ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Least Squares Approach

Purpose This study aims to examine the role of trust-in-supervisor and organizational commitment on the relationship between a budget-based incentive compensation scheme and job performance. Design/methodology/approach A survey was conducted involving 120 managers from Australian manufacturing firms listed in the Who’s Who in Business in Australia electronic database. A partial least squares approach was used to assess the psychometric properties of the theoretical model and proposed hypotheses. Data analysis was conducted using WarpPLS Version 5.0. Findings The results suggest that the reliance on a high budget-based incentive compensation scheme was found to lead to higher trust-in supervisor, which in turn resulted in higher organizational commitment and improved subordinate job performance. Research limitations/implications This study is subject to the limitations of survey-based research. Practical implications This study may assist top management to better understand the importance of designing an effective budget-based incentive compensation scheme to promote high interpersonal trust and organizational commitment among subordinates. Cultivating a climate of trust may help to enhance interpersonal trust between subordinates and their superior, which in turn may lead to higher levels of organizational commitment and improvement in subordinate job performance. Originality/value This paper elucidates and contributes to the existing literature by suggesting that a budget-based incentive compensation scheme can directly affect subordinates’ level of trust in their supervisor, and that trust-in-supervisor can serve as an antecedent to the development and cultivation of subordinates’ commitment to the organization, which in turn improves their job performance.

Strengthening the impact of career development on job performance: the important role of organizational and individual factors

2019 ◽  
Vol 27 (4) ◽  
pp. 37-39
Keyword(s):  
Career Development ◽  
Job Performance ◽  
Design Methodology ◽  
Organizational Factors ◽  
Content Type ◽  
Pertinent Information ◽  
The Impact ◽  
The Relationship ◽  
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 A positive relationship exists between employee career development and job performance. The impact can become more substantial when the process of career development becomes the joint responsibility of employee and firm. This makes it imperative to identify individual and organizational factors most able to enhance the relationship and achieve desired outcomes. 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.

Impact of perceived corporate social responsibility on attitudes and behaviors of pharmacists working in MNCs

Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 453-469 ◽  
Author(s):  
Muhammad Khaleel ◽  
Shankar Chelliah ◽  
Sana Rauf ◽  
Muhammad Jamil
Keyword(s):  
Corporate Social Responsibility ◽  
Organizational Commitment ◽  
Supervisory Support ◽  
Content Type ◽  
Attitudes And Behaviors ◽  
Perceived Supervisory Support ◽  
And Behaviors ◽  
Corporate Social ◽  
The Relationship

Purpose This study aims to find out how corporate social responsibility (CSR) initiatives are perceived by pharmacists and how it influences employees’ organizational commitment and organizational citizenship behavior (OCB) and role of perceived supervisor support in the study. Design/methodology/approach Pharmacists of different hierarchical levels from five multinational pharmaceutical industries in Pakistan were selected as study samples. Data were collected from 136 pharmacists working in Punjab Region. PLS-SEM was used to test the hypotheses. Findings The results from this study found that CSR was a predictor of affective organizational commitment (AOC) and OCB. AOC fully mediates the relationship between CSR and OCB. While perceived supervisory support did not moderate the relationship between AOC and OCB. Pharmaceutical firms can promote commitment toward organization and OCBs by initiating CSR activities. Research limitations/implications This research is one of the innovative studies that empirically examine the predicting role of CSR and moderating role of perceived supervisory support on employees’ attitude and behaviors in the pharmaceutical companies’ context. Moreover, this research will also help the management by adopting CSR activities as core element in shaping employees attitudes and behaviors. Originality/value It is a significant study shifting the focus of research into organizational behavior context and further influences employee’s attitudes and behavior because of perceived CSR in the pharmacy industry.

Overconfidence of vocational education students when entering higher education

2015 ◽  
Vol 57 (4) ◽  
pp. 429-447 ◽  
Author(s):  
Mark P. Bowden ◽  
Subhash Abhayawansa ◽  
John Bahtsevanoglou
Keyword(s):  
Higher Education ◽  
Self Efficacy ◽  
Further Education ◽  
Small Sample ◽  
First Year ◽  
Education Students ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose – There is evidence that students who attend Technical and Further Education (TAFE) prior to entering higher education underperform in their first year of study. The purpose of this paper is to examine the role of self-efficacy in understanding the performance of students who completed TAFE in the previous year in a first year subject of microeconomics in a dual sector university in Melbourne, Australia. Design/methodology/approach – The study utilises data collected by surveys of 151 students. Findings – A student’s self-efficacy is positively associated with their marks in a first year subject of microeconomics. However, the relationship between final marks and self-efficacy is negative for those students who attended TAFE in the previous year suggesting that they suffer from the problem of overconfidence. When holding self-efficacy constant, using econometric techniques, TAFE attendance is found to be positively related to final marks. Research limitations/implications – The findings are exploratory (based on a small sample) and lead to a need to conduct cross institutional studies. Practical implications – The research points to the need for early interventions so that TAFE students perform well in their first year of higher education. It also points to potential issues in the development of Victorian Certificate of Applied Learning (VCAL) programs. Originality/value – To the best of the authors’ knowledge, this is the first paper to examine the inter-related impact of attendance at TAFE in the previous year and self-efficacy on the subsequent academic performance of TAFE students.

Perceived stress and psychological well-being of working mothers during COVID-19: a mediated moderated roles of teleworking and resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vartika Kapoor ◽  
Jaya Yadav ◽  
Lata Bajpai ◽  
Shalini Srivastava
Keyword(s):  
Perceived Stress ◽  
Working Mothers ◽  
Well Being ◽  
Inverse Association ◽  
Psychological Well Being ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

PurposeThe present study examines the mediating role of teleworking and the moderating role of resilience in explaining the relationship between perceived stress and psychological well-being of working mothers in India. Conservation of resource theory (COR) is taken to support the present study.Design/methodology/approachThe data of 326 respondents has been collected from working mothers in various sectors of Delhi NCR region of India. Confirmatory factor analysis was used for construct validity, and SPSS Macro Process (Hayes) was used for testing the hypotheses.FindingsThe results of the study found an inverse association between perceived stress and psychological well-being. Teleworking acted as a partial mediator and resilience proved to be a significant moderator for teleworking-well-being relationship.Research limitations/implicationsThe study is based at Delhi NCR of India, and future studies may be based on a diverse population within the country to generalize the findings in different cultural and industrial contexts. The present work is based only on the psychological well-being of the working mothers, it can be extended to study the organizational stress for both the genders and other demographic variables.Practical implicationsThe study extends the research on perceived stress and teleworking by empirically testing the association between perceived stress and psychological well-being in the presence of teleworking as a mediating variable. The findings suggest some practical implications for HR managers and OD Practitioners. The organizations must develop a plan to support working mothers by providing flexible working hours and arranging online stress management programs for them.Originality/valueAlthough teleworking is studied previously, there is a scarcity of research examining the impact of teleworking on psychological well-being of working mothers in Asian context. It would help in understanding the process that how teleworking has been stressful for working mothers and also deliberate the role of resilience in the relationship between teleworking and psychological well-being due to perceived stress, as it seems a ray of hope in new normal work situations.

Innovation in SMEs: the role of employee training in German SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irem Demirkan ◽  
Ravi Srinivasan ◽  
Alka Nand
Keyword(s):  
Research And Development ◽  
Boundary Conditions ◽  
Product Innovation ◽  
Employee Training ◽  
Lower Proportion ◽  
Economic Research ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

PurposeThis paper explores the role of effective resource and knowledge management capabilities on product innovation capabilities of the small and medium-sized enterprises (SMEs). Specifically, the authors research the role of the human resource investments in the form of employee training in developing firm's innovation capabilities and how SMEs manage these investments when we account for the boundary conditions such as the level of employee education, SME size and the frequency of investments in research and development (R&D).Design/methodology/approachThe authors use survey data conducted by The Centre for European Economic Research (Zentrum für Europäische Wirtschaftsforschung – ZEW). The final sample for analysis includes 983 SMEs from Germany that belong to 13 different industries. The authors use hierarchical OLS regression to test the hypotheses presented in this paper.FindingsThe authors find a positive association between increased investments in employee training and product innovation capabilities in the context of SMEs. More specifically, the authors’ findings support that (1) the relationship between employee training and innovation capabilities is weaker in industries with greater proportion of employees with university degrees, (2) the effectiveness of investments in employee training is lower among larger SMEs than smaller SMEs, and (3) continuous R&D weakens the relationship between training expenditure and innovation capabilities. While on the one hand the authors’ findings contribute to the debate of whether employee training is necessary for SMEs by affirming this notion, on the other hand the authors show that investments in employee training have differing implications for small and large SMEs within boundary conditions. Moreover, these findings have practical implications for the managers of all SMEs in terms of management of their knowledge resources.Research limitations/implicationsThe authors’ research makes important contributions to the study of innovation in SMEs. First, the authors contribute evidence to the debate whether employee training is necessary for SMEs by showing that employee training is particularly important for SMEs that are smaller in size, have lower proportion of employees with university degrees and when they invest in research and development in a targeted manner. The authors also demonstrate that investments in employee training is not a waste, rather such investments can increase the likelihood of survival for many of these firms through its positive impact on product innovation.Practical implicationsFor managers of SMEs, the authors’ findings suggest that while investments in employee training are important, the managers of particular SMEs with above-mentioned qualities should be persistent in such investments and must make deliberate efforts to reap the benefits in terms of innovative capabilities. Unlike large firms, who have the financial means to carry out investments in an abundant manner, SMEs appear to be more enterprising with their scarce resources when we also consider the role of investments in human resources.Originality/valueThe authors’ research makes important contributions to the study of innovation in SMEs. First, the authors contribute evidence to the debate whether employee training is necessary for SMEs by finding that employee training is particularly important for SMEs that are smaller in size, have lower proportion of employees with university degrees and when they do not invest in R&D continuously. The authors also demonstrate that investments in employee training is not a waste, but such investments can increase the likelihood of survival for many of these firms.

Drivers for voluntary intellectual capital reporting based on agency theory

2019 ◽  
Vol 20 (2) ◽  
pp. 264-281 ◽  
Author(s):  
Viktoria Goebel
Keyword(s):  
Propensity Score ◽  
Agency Theory ◽  
Propensity Score Matching ◽  
Intellectual Capital ◽  
Integrated Reporting ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications ◽  
Management Report

PurposeThe purpose of this paper is to investigate the drivers for voluntary intellectual capital (IC) reporting based on agency theory. This study responds to calls for critical investigations of IC reporting utilising Goebel’s (2015a) IC measuring approach to investigate the role of IC value and mispricing for IC reporting.Design/methodology/approachA mandatory management report offers a unique research setting in Germany. The content analysis results of 428 German management reports are used in a regression analysis with leverage, ownership diffusion, IC value and mispricing. Additionally, a propensity score matching approach examines the relationship between IC reporting and IC value.FindingsThe regression results show that companies use voluntary IC reporting to encounter mispricing. IC reporting is negatively associated with leverage, whereas ownership diffusion and IC value show no significant results. The propensity score matching approach is also not significant.Research limitations/implicationsThis study contributes to strengthening and testing agency theory for IC reporting. As mispricing is identified to play an important role for IC reporting, IC research should account for mispricing.Practical implicationsThe findings suggest to reopen a discussion on the declared aims of the German management report and the international integrated reporting model to provide information on value creation, as IC value shows no link to IC reporting.Originality/valueThis study innovatively links IC reporting to IC value and mispricing to investigate drivers for voluntary IC reporting.

Impact of organizational citizenship behavior on job performance in Indian healthcare industries

2017 ◽  
Vol 66 (6) ◽  
pp. 780-796 ◽  
Author(s):  
Eeman Basu ◽  
Rabindra Kumar Pradhan ◽  
Hare Ram Tewari
Keyword(s):  
Social Capital ◽  
Job Performance ◽  
Organizational Citizenship ◽  
Organizational Citizenship Behavior ◽  
Superior Performance ◽  
Citizenship Behavior ◽  
Healthcare Organizations ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to explore the relationship between organizational citizenship behavior (OCB) and job performance. It also examines the mediating role of social capital in influencing the relationship between OCB and job performance. Design/methodology/approach The study explores the dynamic relationship among the variables of OCB and job performance and social capital. Data were collected from 501 respondents working in 15 healthcare organizations in Kolkata, India, through questionnaire survey. Likert-type rating scales of OCB, job performance and social capital with sound reliability and validity were used to carry out the survey. The data were analyzed using structural equation modeling. Findings The results of the present study show that OCB significantly predicts job performance in healthcare organizations. Social capital found to be a significant mediator between OCB and job performance. Research limitations/implications The findings of the study have a number of implications for organizations in acknowledging and leveraging social capital and encouraging OCB to facilitate superior performance of employees. The generalization of the findings of the study should be restricted to the healthcare organizations in Kolkata due to its own style of functioning, workforce and work environment. The role of demographic variables in influencing the outcome measures has not been considered for the present study. Further research on these aspects may reveal more interesting results with regard to the dynamics among organizational citizenship behavior, social capital and job performance. Practical implications Employee-friendly management practices should be adopted in organizations to facilitate the formation of network building and development of social capital which serves as an asset to organizations and creates competitive advantage. Originality/value The research findings enrich our understanding of voluntary social participation and citizenship behavior of employees for influencing performance at work. The study also provides useful and unique insight on the benefits of networking in healthcare organizations particularly helping employees to cope with emergency situations. The findings as well as methodology used in this study are original and unique.

Knowledge management, workplace climate, creativity and performance

2018 ◽  
Vol 30 (8) ◽  
pp. 592-612 ◽  
Author(s):  
Amro Alzghoul ◽  
Hamzah Elrehail ◽  
Okechukwu Lawrence Emeagwali ◽  
Mohammad K. AlShboul
Keyword(s):  
Job Performance ◽  
Knowledge Sharing ◽  
Authentic Leadership ◽  
Equation Modeling ◽  
Workplace Climate ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose This study aims at providing empirical evidence pertaining to the interaction among authentic leadership, workplace harmony, worker's creativity and performance in the context of telecommunication sector. These research streams remain important issues and of interest as the world continues to migrate toward a knowledge-based economy. Design/methodology/approach Applying structural equation modeling, this study diagnosed the impact of Authentic leadership (AL) on employees (n = 345) in two Jordanian telecommunication firms, specifically, how it shapes workplace climate, creativity and job performance. The study also tests the moderating role of knowledge sharing in the model, as well as the mediating role of workplace climate on the relationship between AL and positive organizational outcomes. Findings The empirical result suggests that AL positively influences workplace climate, creativity and job performance; workplace climate positively influences creativity and job performance; workplace climate mediates the relationship between AL and creativity, and job performance; and knowledge sharing behavior moderates the relationship between AL and workplace climate. Originality/value This study highlights the magnificent power of AL and knowledge sharing, not only in shaping the workplace atmosphere but also in delineating how these variables stimulate creativity and performance among employees. The implications for research and practice are discussed.

scholarly journals Does brand-relationships matter? The role of brand attachment in salesperson performance in retailing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Flavia Braga Chinelato ◽  
Cid Gonçalves Filho ◽  
Clodoaldo Lopes Nizza Júnior
Keyword(s):  
Organizational Commitment ◽  
Sales Performance ◽  
Equation Modeling ◽  
Brand Relationships ◽  
Salesperson Performance ◽  
Brand Attachment ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose Salesperson performance is accepted as a relevant factor of retailing success. However, scarce studies reveal the relationship between sales performance and brand relationship. The purpose of this study is both, from one side, to empirically demonstrate the impact of salesperson brand attachment (SBA) on sales performance and, on the other side, to identify the mediators of this relationship in small retailing. Design/methodology/approach A survey was conducted with a sample of 206 small retailers from different sectors of an emerging country. The proposed model was tested using partial least squares–structural equation modeling (PLS-SEM) in SmartPLS3. Findings The results demonstrated that SBA is relevant to driving sales performance through two relevant paths – one following SBA–satisfaction–performance and one path following the SBA–commitment–performance. The model was able to explain 63% of the outcome performance. Practical implications Regarding small retailers, where the owners, employees and managers have higher levels of interaction than the large national retail chains, the marketing executives must invest in improving the attachment to the brand and create emotional bonds and cognition between marketers and the brand. They must develop strategies to promote job satisfaction and organizational commitment because they determine performance. Originality/value Despite the relevance of small businesses for economies worldwide and the importance of salesperson brand relationships, no study has been developed to demonstrate the impacts of such relationships on salesperson performance in retailing. Furthermore, in addition to the central role of organizational commitment in the sales research, to the best of the authors’ knowledge, this is the first study to explore how to mediate the relationship between brand attachment and sales performance.

Understanding level 5 leaders: the ethical perspectives of leadership humility

2017 ◽  
Vol 36 (5) ◽  
pp. 724-732 ◽  
Author(s):  
Cam Caldwell ◽  
Riki Ichiho ◽  
Verl Anderson
Keyword(s):  
Research Information ◽  
Content Type ◽  
Building Trust ◽  
Good To Great ◽  
Conceptual Paper ◽  
The Relationship ◽  
Follower Trust ◽  
Practical Implications ◽  
Ethical Perspectives

Purpose The purpose of this paper is to explore the ethical perspectives of leadership humility. Jim Collins, in his seminal work, Good to Great, noted that all great organizations are led by “Level 5 leaders (L5Ls).” These leaders exhibit fierce resolve, but incredible humility. This paper examines the nature of humility and its assumptions associated with 12 frequently cited ethical perspectives. Humility builds high follower trust and commitment so often lacking in the modern organization. The paper identifies four practical contributions for scholars and leaders who seek to understand the role of humility in leadership effectiveness. Design/methodology/approach This paper is a conceptual paper which relies heavily on research from the current literature about leadership, trust, and humility. Findings This paper compares humility with 12 well-regarded ethical perspectives and presents humility as an ethically-relevant leadership construct that helps leaders to build trust, commitment, and followership. Research limitations/implications Because this paper is not an empirical study, it does not present research information, propositions, or hypotheses. Practical implications This paper suggests that leaders can be more effective if they come to understand the implicit ethical nature of leadership and the importance of humility in building trust. Originality/value Although Collins’ research about great organizations identified the importance of Level 5 leadership 15 years ago, very little has been written about the nature of humility as a leadership virtue. More importantly, this paper is among the first to identify the relationship between ethics and humility for L5Ls.

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