The determinants of changes in the organization of production: Evidence from Spanish plant-level data

In this paper we empirically examine the determinants of changes in the organization of production using detailed information on a data set from a new plant-level survey of 1003 plants covering the full range of manufacturing industries in Spain. In particular, and among many other things, survey respondents were asked how service outsourcing practices had changed in the last three years. The answer to this question is indicative of the changes in the importance of backward integration for each of the plants studied. Using other information provided in the survey, we relate the reported changes in outsourcing to changes in other relevant dimensions as possible determinants of the boundaries of the firm. These dimensions are: plant size, downstream market power, cost of inputs, price and quality of the final good and technological progress. Our findings show that outsourcing increases are strongly positively correlated with increases in market share and in market competition. We also find that outsourcing increases when plants face simultaneous increases in product quality and product prices and that it decreases when plants face simultaneous increases in market share and market competition. Finally, we find that multi-plant and one-plant firms adjust their outsourcing practices differently to outside changes. Since neither TCE nor PRT theories of vertical integration fully explain the patterns found in our data, we close this paper by following Adam Smith's claim that the extent of the market seems to be the only factor consistently limiting the degree of specialization in our setting.outsourcing; vertical integration; competition; manufacturing plants;

Is Seniority-Based Pay Used as a Motivation Device? Evidence from Plant Level Data

In this paper we use data from industrial plants to investigate if seniority-based pay is used asa motivational device for production workers. Alternatively, seniority-based pay could simplybe a wage setting rule not necessarily related to the provision of incentives. Unlike previouspapers, we use a direct measure of seniority-based pay as well as measures of monitoringdevices and piece-rates. We find that firms that offer seniority-based pay are less likely tooffer explicit incentives. They are also less likely to invest in monitoring devices. We alsofind that firms that offer seniority-based pay are more likely to engage in other humanresource management policies that result in long employment relationships. Overall theseresults suggest that seniority-based pay is indeed used as a motivation device.Human resource management practices, incentives, monitoring

Time-dependent toxicity of neonicotinoids and other toxicants: Implications for a new approach to risk assessment

A fundamental goal of toxicology is to determine safe levels of exposure to potentially poisonous substances for humans and the environment. Traditionally, safe levels of a chemical have been derived from the non-observable effect level (NOEL) estimated in laboratory toxicity bioassays with organisms which are representative of certain taxa. There are fundamental problems with the validity of this approach, both conceptual and statistical in nature. Firstly, the outdated NOEL concept is being replaced by the no-effect concentration (NEC) level, which assumes that toxic chemicals do not have any effect on a population of organisms at very low concentrations. Recent developments in ecotoxicology, however, suggest that some toxicants can produce effects at any concentration level provided their exposure time is sufficiently long. Consequently, risk assessment of these chemicals, which includes neonicotinoid insecticides, some carcinogenic substances and certain metallic compounds, may require entirely new approaches. Secondly, the traditional approach to toxicity testing is to consider dose or concentration-effect relationships at arbitrarily fixed exposure durations which are supposed to reflect âacuteâ or âchronicâ time scales. This approach measures the proportion of all exposed individuals responding by the end of those fixed exposure times. However, the endpoint values obtained this way cannot be linked to make predictions for the wide range of exposures encountered by humans or in the environment, thus leading to serious underestimates of actual risk. In order to overcome this handicap, an increasing number of researchers are using a variant of the traditional toxicity testing protocol which includes time to event (TTE) methods. This TTE approach measures the times to respond for all individuals, and provides information on the acquired doses as well as the exposure times needed for a toxic compound to produce any level of effect on the organisms tested. Consequently, extrapolations and predictions of toxic effects for any combination of concentration and time are now made possible. Examples are shown to demonstrate that this approach is superior to current toxicological testing procedures, and has important implications for risk assessment of chemicals, particularly when the chemical has delayed toxic effects in a time-dependent manner

Impacts of Pesticides on Honey Bees

This chapter focuses on the detrimental effects that pesticides have on managed honey bee colonies and their productivity. We examine first the routes of exposure of bees to agrochemicals used for crop protection and their application to crops, fate and contamination of water and plants around the fields. Most of the time, the exposure of bees to pesticides is through ingestion of residues found in the pollen and nectar of plants and in water. Honey bees are also exposed to pesticides used for the treatment of Varroa and other parasites. The basic concepts about the toxicity of the different kinds of pesticides are explained next. Various degrees of toxicity are found among agrochemicals, and emphasis is given to the classic tenet of toxicology, “the dose makes the poison,” and its modern version “the dose and the time of exposure makes the poison.” These two factors, dose and time, help us understand the severity of the impacts that pesticides may have on bees and their risk, which are analysed in the third section. Sublethal effects are also considered. The final section is devoted to some practical advice for avoiding adverse impacts of pesticides in beekeeping

Competitive Strategy, Performance Appraisal and Firm Results

In this study, we address the relationship between performance appraisal and competitive strategy, as well as the impact of this relationship on firm performance. The results indicate that the adoption of developmental performance appraisal and the use of administrative performance appraisal are higher among firms that pursue differentiation strategies compared to those competing on costs. Regarding firm performance, the interaction between a developmental appraisal system and a quality strategy displays higher return on equity and sales per employee. Those firms that combine a focus on innovation with administrative performance appraisal also enjoy higher performance. Finally, when the firm competes on the basis of cost reduction, the use of administrative appraisal increases the sales per employee

What are the factors behind pay settlements? Evidence from Spanish and British data

This article presents a study of the determinants of pay settlements in a sample of Spanish and British establishments. We find that variables such as establishment size and age, foreign ownership, labour costs, the existence of internal labour markets, a strategic approach to human resource management and pay setting institutions are related to the factors that shape pay adjustments. Moreover, our findings show that there are significant differences in the determinants of pay settlements between Spain and Great Britain. We suggest that the labour market institutions developed in each country influence pay setting decisions

The diffusion of pay for performance across occupations

In this paper the differences in the incidence of pay for performance plans between occupations in a sample of Spanish manufacturing establishments are analyzed. Our results show that there are significant differences between occupations in the incidence of individual, group and firm or plant pay for performance plans. The roles of establishment size, multinational ownership and the human resources management department in the incidence of pay for performance plans and their variability of use across occupations within the same firm are also studied. These factors are found to correlate to a greater use of pay for performance and, in most cases, this effect is homogenous across occupations

Performance Measurement and Incentive Intensity

This study addresses the factors that determine the intensity of pay for performance schemes. The results indicate that the use of individual and group incentives boost intensity, whereas plant or firm pay for performance do not seem to affect the variable of interest. In addition, the adoption of measures of results, such as productivity or quality, has a significant positive effect on intensity. On the contrary, measures of human resource management outcomes, subjective measures and financial measures are not significant or have a negative effect on the intensity of pay for performance

Crucial aspects of the initial mass function (I): The statistical correlation between the total mass of an ensemble of stars and its most massive star

Our understanding of stellar systems depends on the adopted interpretation of the IMF, phi(m). Unfortunately, there is not a common interpretation of the IMF, which leads to different methodologies and diverging analysis of observational data.We study the correlation between the most massive star that a cluster would host, mmax, and its total mass into stars, M, as an example where different views of the IMF lead to different results. We assume that the IMF is a probability distribution function and analyze the mmax-M correlation within this context. We also examine the meaning of the equation used to derive a theoretical M-char_mmax relationship, N x int[Char_mmax-mup] phi(m) dm = 1 with N the total number of stars in the system, according to different interpretations of the IMF. We find that only a probabilistic interpretation of the IMF, where stellar masses are identically independent distributed random variables, provides a self-consistent result. Neither M nor N, can be used as IMF scaling factors. In addition, Char_mmax is a characteristic maximum stellar mass in the cluster, but not the actual maximum stellar mass. A -Char_mmax correlation is a natural result of a probabilistic interpretation of the IMF; however, the distribution of observational data in the N (or M)-cmmax plane includes a dependence on the distribution of the total number of stars, N (and M), in the system, Phi(N), which is not usually taken into consideration. We conclude that a random sampling IMF is not in contradiction to a possible mmax-M physical law. However, such a law cannot be obtained from IMF algebraic manipulation or included analytically in the IMF functional form. The possible physical information that would be obtained from the N (or M)-mmax correlation is closely linked with the Phi(M) and Phi(N) distributions; hence it depends on the star formation process and the assumed.Comment: Accepted by A&A; 16 pages, 10 figure