Reverse Capitalism

A rather strange end of history, in Fukuyama's terms (Fukuyama, 1992), is presented in the paper. Backed by the following six paradoxes, the entrepreneur and tycoon are beginning to return to the cozy lap of socialist ideology, while leaving behind their faithful worker, an unwilling prisoner of a cruel and alienated capitalistic ideology. Entrepreneurs are living in a "No Risk Society", while faithful workers are prisoners of a "Full Risk Society" (Aharoni, 1981). The six paradoxes, presented hereafter, are as follows: “A negative correlation exists between the amount of time and energy devoted to an organization and the degree of ownership thereof”.“A negative correlation exists between the degree of identification with, involvement in, commitment to and loyalty to an organization and the degree of ownership thereof”.“Ownership of organizations is not acquired by one’s own means. Owners are not really owners in the traditional sense of making purchases using their own money”.“The loss of the workplace is devastating for a worker, whereas the direct damage to the owners as a result of going out of business can sometimes be relatively marginal”. “In times of affluence, valuations are made on the stock exchange itself, which puts a high value on the companies traded in it; in times of depression, valuations are commissioned from outsiders, and they too traditionally put a high figure on the value of the company ordering the valuation”.“The price of a product is particularly high when sold up the hierarchy, from the private to the public company (upward generosity); the price of the same product is particularly low when sold down the hierarchy, from the public to the private company (downward stinginess)”

Organizational Performance and Executive Pay in Israel's System of Higher Education

In the business sector, the relationship between performance and pay is mostly measured with reference to an organization's business results on the one hand and the pay awarded to its senior management on the other hand. The present research shifts the analytical focus to the third sector and to higher-education institutions, assessed in their case—where the notion of profitability loses its relevance—on their performance as perceived by their clients, namely the student body. Our research results point to a positive, strong and significant relationship between performance and executive pay (with a one-year lag) and to a positive, weak and significant relationship between executive pay and performance (again, with a one-year lag). Furthermore, it is the state-funded (hereinafter: budgeted) colleges, where executive pay was by far the lowest, that achieved the highest satisfaction score (averaging 2011 and 2013), despite a slight drop in satisfaction observed in this category from 2011 to 2013. Taken together, however, higher-education institutions saw their satisfaction scores increase in 2013 compared to 2011. The paper leaves aside research performance rankings of higher-education institutions, due to the fact that most institutions in Israel are teaching oriented. As a matter of fact, only few Israeli universities are ranked by international ranking organizations. Furthermore, unfortunately, Israel does not have a formal system of higher education institutions research rankings. In the paper, a large body of literature on performance-related pay in school teaching is not covered