Virtual HR Departments: Getting Out of the Middle

In this chapter, we explore the notion of virtual HR departments: a network-based organization built on partnerships and mediated by information technologies in order to be simultaneously strategic, flexible, cost-efficient, and service-oriented. We draw on experiences and initiatives at Merck Pharmaceuticals in order to show how information technology in establishing an infrastructure for virtual HR. Then, we present a model for mapping the architecture of HR activities that includes both internal and external sourcing options. We conclude by offering some recommendations for management practice as well as future research

Local institutions and Natural Resource Management

As researchers and policy-makers confront the challenges of and opportunities for improving natural resource management, increasing attention is being given to the dynamics of coupled natural-human systems. Interdisciplinary study of these coupled systems has generated considerable research and management innovations. Among these are more intensive research of the emergence and behavior of local institutions and consideration of the potential for voluntary and/or collaborative approaches to supplement conventional natural resource policy and management approaches. Front and center in this line of research are studies of local institutional responses to common pool resource management issues. Over time, this productive line of research is encouraging greater integration of insights across social science fields and identification of systematic patterns in research findings. Responding to such encouragement, this research blends insights from collective action theory, institutional rational choice and the institutional analysis and development (IAD) framework to investigate the distribution and success of resource-based organizations. Moreover, our research makes a unique contribution to this literature by considering the spatial aspects of these institutions' formation, behavior and success. Lake associations are an interesting class of resource-based organizations. These local, lake-centered institutions strive to address management issues using informal and voluntary strategies. Lake associations are most common in lake-rich states, including Minnesota, Michigan, Wisconsin, New York, New Hampshire and Maine. The objectives of these groups vary from narrow (private road maintenance) to broad (watershed health). These organizations allow for lake-centered boundaries including multiple jurisdictions, provide a voice to seasonal property owners, and resolve some issues related to coordination, property rights, and transaction costs. The numerous and diverse lake associations of Maine are the focus of our empirical work. The primary research objective of this analysis is to develop an integrated empirical modeling framework of lake association presence and lake management success. To fulfill this objective, we examined the relative performance of empirical econometric models that ignore and address potential sample selection bias. Because we only observe measures of lake association management success on lakes that have a lake association, the sample is non-random. In our empirical work, entry into the lake association management success sample is further complicated by our reliance on survey data to describe management behavior and performance. A broad secondary research objective is to continue exploring the extent to which the Institutional Development Analysis (IAD) framework can be used to explain the distribution and behavior of Maine lake associations. We assembled an extensive spatial database describing natural and human features of 2,602 Maine lakes (Maine's great ponds; > 10 acres in size) to support this analysis. We integrated this extensive database with a smaller survey-based database describing lake association behavior and natural resource management success. Data describing the distribution and success of lake associations were drawn from non-government organization, federal and state agency databases and primary survey data collected to describe social and economic characteristics of Maine lakes. We captured additional lake and association attributes by manipulating various state and federal GIS databases and creating primary spatial databases. Results to date reveal support for the IAD theoretical framework in describing factors influencing the presence of lake associations. These results offer guidance on how to better integrate the informal approaches of local institutions with more formal, regional government-based management approaches. By understanding where local institutions are likely to form and what issues they are best suited to address, state and federal government agencies can better work with local organizations to address the complexities of natural resource management. Results explaining variation in natural resource management success and the potential gains from an integrated model of presence and success are less robust and are constrained by limited available data describing management behavior and success.local institutions, natural resource management, institutional economics, lake associations, Resource /Energy Economics and Policy,

Minu, Startu and All That: Pitfalls in Estimating the Sensitivity of a Worker's Wage to Aggregate Unemployment

In this paper we show that panel estimates of tenure specific sensitivity to the business cycle of wages is subject to serious pitfalls. Three canonical variates used in the literature â the minimum unemployment rate during a workerâs time at the firm (min u), the unemployment rate at the start of her tenure (Su) and the current unemployment rate interacted with a new hire dummy (δu) â can all be significant and "correctly" signed even when each worker in the firm receives the same wage, regardless of tenure (equal treatment). In matched data the problem can be resolved by the inclusion in the panel of firm-year interaction dummies. In unmatched data where this is not possible, we propose a solution for min u and Su based on Solon, Barsky and Parker's (1994) two step method. Our proposed solution method is however suboptimal because it removes a lot of potentially informative variation in average wages. Unfortunately δu cannot be identified in unmatched data because a differential wage response to unemployment of new hires and incumbents will appear under both equal treatment and unequal treatment.wage cyclicality, unemployment

Real and Nominal Wage Rigidity in a Model of Equal-Treatment Contracting

Following insights by Bewley (1999a), this paper analyses a model with downward rigidities in which firms cannot pay discriminate based on a year of entry to a firm, and develops an equilibrium model of wages and unemployment. We solve for the dynamics of wages and unemployment under conditions of downward wage rigidity, where forward looking firms take into account these constraints. Using simulated productivity data based on the post-war US economy, we analyse the ability of the model to match certain stylised labour market facts.labour contracts, business cycle, unemployment, equal treatment, downward rigidity, cross-contract restrictions

CO mapping of the Orion molecular cloud: The influence of star formation on cloud structure

Regions of massive star formation have long been believed to have a profound influence on the structure of their surrounding molecular clouds. The ways in which massive star formation has altered the structure and kinematics of the Orion Molecular Cloud are discussed. The data to be discussed consists of a large scale map of the CO J=1-0 emission from approximately 3 square degrees of OMC-1. During 1985, the Five College Radio Astronomy Observatory 14M antenna was used to map a 2 deg x 1 deg region centered on alpha(1950) = 5(h)33(m)00(s) delta(1950) = -5 deg 30 min. The region mapped in 1985 covers the well known HII regions M42, M43, and NGC1977, and the CO map contains abundant evidence of the interaction between these regions and the molecular cloud. Indeed, the global structure of the cloud appears to have been strongly influenced by the continuous formation of massive stars within the cloud. Individual instances of some of these features are discussed. There appear to be two classes of features which are indicative of this interaction: CO bright rims and CO holes. During 1986, we have undertaken further mapping of OMC-1 to the south of the region covered by the 1985 map. This portion of the cloud contains significant regions of star formation, but O star formation has not occured and large HII regions have not developed to alter the appearance of the cloud. A detailed map of this region is thus an opportunity to view the structure of the molecular cloud before it has been altered by massive star formation. Preliminary analysis of data obtained in this region suggests that the structure and kinematics of the southern portion of the Orion cloud are indeed dramatically different from those of the region previously mapped. Comparison of the two regions thus supports models of the development of structure in molecular clouds through interaction with the HII regions formed within them

Microstructure Effects on Daily Return Volatility in Financial Markets

We simulate a series of daily returns from intraday price movements initiated by microstructure elements. Significant evidence is found that daily returns and daily return volatility exhibit first order autocorrelation, but trading volume and daily return volatility are not correlated, while intraday volatility is. We also consider GARCH effects in daily return series and show that estimates using daily returns are biased from the influence of the level of prices. Using daily price changes instead, we find evidence of a significant GARCH component. These results suggest that microstructure elements have a considerable influence on the return generating process.Comment: 15 pages, as presented at the Complexity Workshop in Aix-en-Provenc

Striations in the Taurus molecular cloud: Kelvin-Helmholtz instability or MHD waves?

The origin of striations aligned along the local magnetic field direction in the translucent envelope of the Taurus molecular cloud is examined with new observations of 12CO and 13CO J=2-1 emission obtained with the 10~m submillimeter telescope of the Arizona Radio Observatory. These data identify a periodic pattern of excess blue and redshifted emission that is responsible for the striations. For both 12CO and 13CO, spatial variations of the J=2-1 to J=1-0 line ratio are small and are not spatially correlated with the striation locations. A medium comprised of unresolved CO emitting substructures (cells) with a beam area filling factor less than unity at any velocity is required to explain the average line ratios and brightness temperatures. We propose that the striations result from the modulation of velocities and the beam filling factor of the cells as a result of either the Kelvin-Helmholtz instability or magnetosonic waves propagating through the envelope of the Taurus molecular cloud. Both processes are likely common features in molecular clouds that are sub-Alfvenic and may explain low column density, cirrus-like features similarly aligned with the magnetic field observed throughout the interstellar medium in far-infrared surveys of dust emission.Comment: 11 pages, 4 figures. Accepted for publication in MNRA