The Effects of Human Resource Management Decisions on Shareholder Value

We examine the effects of selected human resource management decisions on the abnormal change in total shareholder return. Announcements of human resource decisions are classified into five types--general HR system announcements, compensation and benefits, staffing, shutdowns and relocations, and miscellaneous. Using an event study methodology we investigate whether any of these HR decisions had a discernible effect on either the level or variation of abnormal total shareholder return. We find no consistent pattern of increased or decreased valuation in response to the different types of HR announcements, even after controlling for the likely effect of such announcements on total compensation costs. We do find substantially increased variation in abnormal total shareholder return around the announcement date, which indicates that HR decisions do provide information to the stock market. The events associated with increased variation in total shareholder value are permanent staff reductions and shutdown/relocations. The absence of consistent valuation effects combined with the evidence of increased variation in shareholder value may be attributed to uncontrolled firm-specific factors, the categorization of the HR events or, simply, to the unique interpretations the market placed upon these events

Human Resource Reputation: Looking Good May Feel Good But Does It Add Value?

[Excerpt] Examples of human resource signals, such as these, abound. The critical questions are,do signals like these help create an organization asset, a good HR reputation, and does a good reputation add value? In other words, is a company\u27s HR reputation a valuable resource and source of competitive advantage (Barney, 1991)? Is it difficult to copy by its competitors? Does it favorably influence security analysts, stockholders’, applicants’, employees’, and customers’ views of the company? Or, is information about human resource activities discounted or dismissed altogether as nothing more than mere reflections of a facade having little impact on organizational success

Buy the Book But Not the Stock: The Relationship Between Human Resource Reputation and Corporate Performance

Building upon the tenets of Signaling Theory, Spence (1974), this paper introduces the concept of human resource management reputation signals and examines the effects of these signals on the financial perfomance of over 500 organizations. Numerous human resource, and overall corporate, reputation signals which have appeared in the popular business press are examined to ascertain their effects on two performance measures, the abnormal shareholder returns which occur either side of the announcement of these signals and the annual returns to shareholders in the year in which they are made public. In the end, it appears that is more imponant to utilize ones human resources effectively than it is to be included on the best or most admired lists of the various business observers who create and disseminate these reputation signals. Indeed, the vast majority of the corporate and human resource reputation signals studied had no effect on either shon or long term performance. However, a human resource management effectiveness indicator (net income per employee) was observed to be positively related to the annual shareholder return performance measure suggesting that it is better to be good than to just look good

The Effects of Human Resource Management Decisions on Shareholder Value

We examine the effects of selected human resource management decisions on the abnormal change in total shareholder return. Announcements of human resource decisions are classified into five types--general HR system announcements, compensation and benefits, staffing, shutdowns and relocations, and miscellaneous. Using an event study methodology we investigate whether any of these HR decisions had a discernible effect on either the level or variation of abnormal total shareholder return. We find no consistent pattern of increased or decreased valuation in response to the different types of HR announcements, even after controlling for the likely effect of such announcements on total compensation costs. We do find substantially increased variation in abnormal total shareholder return around the announcement date, which indicates that HR decisions do provide information to the stock market. The events associated with increased variation in total shareholder value are permanent staff reductions and shutdown/relocations. The absence of consistent valuation effects combined with the evidence of increased variation in shareholder value may be attributed to uncontrolled firm-specific factors, the categorization of the HR events or, simply, to the unique interpretations the market placed upon these events.

The Effects of Research and Development Intensity on Managerial Compensation in Large Organizations

Agency theory, leading edge, and administrative life cycle perspectives all predict that organizations having high levels of Research and Development (R&D) intensity will follow different compensation strategies than organizations that are less R&D intensive. Using data from 110 organizations over a 5 year period, and controlling for organization differences in employee and job characteristics, we found support for this general prediction. Specifically, high R&D intensity organizations tended to have higher relative base pay, higher relative bonus pay, and greater relative eligibility for long-term incentive payments. We discuss the importance of further research into compensation decisions in R&D intensive firms, particularly the effects of such decisions on firms\u27 competitiveness

The Feasibility of Using Expert Systems in the Management of Human Resources

The purpose of this paper is to introduce a decision aid that is being used increasingly in the business world, the expert system, and to begin to examine its potential for human resource management. First, the expert system technology is reviewed, with a special emphasis on the players, those involved in developing and using the system, and the parts, the three main components of a system. This is followed by an analysis of the costs and benefits and the advantages and disadvantages that have been ascribed to expert systems. We conclude this initial research endeavor by presenting some preliminary findings which suggest that employees are willing to cooperate with expert systems, even those that require personal information, and that they see some benefits to using expert systems as decision aids

The Effects of a Flexible Benefits Expert System on Employee Decisions and Satisfaction

Anecdotal reports and recent reviews assert that expert systems are potentially useful decision aids in human resource management. This study examines the effects of an expert system designed to aid employees when they make their choices in a flexible bellcfit program. A four group quasi-field experimental design is used to examine the relative effects of the expert system compared to a conventional spreadsheet decision aid. Eighty employees at an NCR-AT&T facility were randomly selected and assigned to the groups. Employees using the expert system expressed greater benefits satisfaction compared to those using the spreadsheet aid. The spreadsheet did not have any effect on employees\u27 decisions. When the benefit choices recommended by the expert system differed from the employees\u27 current choices, employees are more likely to change their choices. Consequently, the expert system is likely to affect employees\u27 decisions. Implications are discussed and future research needs are suggested

Development of N/P AlGaAs free-standing top solar cells for tandem applications

The combination of a free standing AlGaAs top solar cell and an existing bottom solar cell is the highest performance, lowest risk approach to implementing the tandem cell concept. The solar cell consists of an AlGaAs substrate layer, an AlGaAs base layer, an AlGaAs emitter, and an ultra-thin AlGaAs window layer. The window layer is compositionally graded which minimizes reflection at the window layer/emitter interface and creates a built-in electric field to improve quantum response in the blue region of the spectrum. Liquid phase epitaxy (LPE) is the only viable method to produce this free standing top solar cell. Small (0.125 sq cm), transparent p/n AlGaAs top solar cells were demonstrated with optimum bandgap for combination with a silicon bottom solar cell. The efficiency of an AlGaAs/Si stack using the free standing AlGaAs device upon an existing silicon bottom solar cell is 24 pct. (1X, Air Mass Zero (AM0). The n/p AlGaAs top solar cell is being developed in order to facilitate the wiring configuration. The two terminal tandem stack will retain fit, form, and function of existing silicon solar cells. Progress in the development of large area (8 and 16 sq cm), free standing AlGaAs top solar cells is discussed

Work and Career Experiences of Men from Families without College Experience

A dearth of research exists exploring the career and work development of adult men and the influence of family-of-origin on that development. In this qualitative study, the researchers used a phenomenological approach to examine the career and work experiences of men whose parents have no education beyond high school and the influences of family on these experiences. We describe five constituents: (a) what work is like; (b) preparation/education; (c) who or what influenced them; (d) how to act at work; and (e) challenges/opportunities/choices; and one essence: mottos from father, which articulate the meaning of the experience of work and career and the family influence on the experience. In conclusion, we provide implications for counselors working with adult men whose parents lack post-secondary education