Measuring competing explanations of human resource management practices through the Cranet survey: cultural versus institutional explanations

This paper assesses the relative and joint impact of cultural and institutional factors on firms' use of “calculative” human resource management practices to determine their separate analytic power. To what extent do institutions and culture structure managerial choice? Previous research has been constrained by not having measures for both cultural and institutional distance. Employing data from 14 European countries taken from the Cranet survey, our findings indicate that institutional, and more specifically, labour relations factors, have more explanatory power than cultural factors

Selecting futures: The role of conviction, narratives, ambivalence, and constructive doubt

Institutional decisions about the future, that matter, are usually made in a context of considerable uncertainty. Although the intention is success the possibility of failure must inevitably be present, whether recognized or not. The principal purposes of this study are twofold. First, we argue that uncertainty contexts require that decisions to create the future are supported by a particular type of future oriented or foresight narrative which we call a conviction narrative. Its essential function is to combine available knowledge about how to achieve desired outcomes with the feeling that the selected action will achieve the aim. Second, we introduce two states, in which conviction may be achieved, divided, and integrated, to argue that research into how conviction is achieved by individuals or institutions making decisions, can be an extremely promising and practical avenue for foresight studies, throwing light on several issues, particularly the oft-noted reluctance to change course and attachment to single stories of the future. The focus on the reality of uncertainty and the two states in which it can be met, can also enhance the research and practice of narrative foresight, through more systematic theorization of the role of emotion and ambivalence in narrative thought and in the processes through which future-focused narratives generate action under uncertainty

A multilevel analysis of the use of individual pay-for-performance systems

Compensation systems such as individualized pay for performance (I-PFP) schemes for employees represent an important approach to aligning employer-employee interests. However, the adoption of I-PFP is much less common in many countries than in the USA. Employing a multi-level analysis of over 4,000 firms in 26 countries, we explore determinants of its adoption. At the country level we distinguish between cultural and institutional (labor regulation institutions) influences. At the firm level, we distinguish firms that view HR as strategically important and firms that are foreign-owned. On the one hand, our findings indicate that both cultural and institutional effects at country level significantly influence the adoption of I-PFP. On the other hand, senior managers’ agency counts. We find the effect of labor regulation on I-PFP to be mediated by its effects on labor union influence and we find the effects of culture on I-PFP to be entirely mediated by labor regulation and (country level) union influence

Autonomous agile teams: Challenges and future directions for research

According to the principles articulated in the agile manifesto, motivated and empowered software developers relying on technical excellence and simple designs, create business value by delivering working software to users at regular short intervals. These principles have spawned many practices. At the core of these practices is the idea of autonomous, self-managing, or self-organizing teams whose members work at a pace that sustains their creativity and productivity. This article summarizes the main challenges faced when implementing autonomous teams and the topics and research questions that future research should address

Stock market investors' use of stop losses and the disposition effect

The disposition effect is an investment bias where investors hold stocks at a loss longer than stocks at a gain. This bias is associated with poorer investment performance and exhibited to a greater extent by investors with less experience and less sophistication. A method of managing susceptibility to the bias is through use of stop losses. Using the trading records of UK stock market individual investors from 2006 to 2009, this paper shows that stop losses used as part of investment decisions are an effective tool for inoculating against the disposition effect. We also show that investors who use stop losses have less experience and that, when not using stop losses, these investors are more reluctant to realise losses than other investors

Under pressure: Response urgency modulates striatal and insula activity during decision-making under risk

When deciding whether to bet in situations that involve potential monetary loss or gain (mixed gambles), a subjective sense of pressure can influence the evaluation of the expected utility associated with each choice option. Here, we explored how gambling decisions, their psychophysiological and neural counterparts are modulated by an induced sense of urgency to respond. Urgency influenced decision times and evoked heart rate responses, interacting with the expected value of each gamble. Using functional MRI, we observed that this interaction was associated with changes in the activity of the striatum, a critical region for both reward and choice selection, and within the insula, a region implicated as the substrate of affective feelings arising from interoceptive signals which influence motivational behavior. Our findings bridge current psychophysiological and neurobiological models of value representation and action-programming, identifying the striatum and insular cortex as the key substrates of decision-making under risk and urgency

Human resource management in US subsidiaries in Europe and Australia: centralisation or autonomy?

We explore determinants of subsidiary autonomy in setting human resource management (HRM) practices within US-parented multinational enterprises (MNEs), in Europe and Australia. We examine both the effect of strategic context and the effect of the institutional location of the subsidiary. We find that US MNEs show greater centralisation of control over HRM where the subsidiary faces global markets, in coordinated market economies vs liberal market economies, and where union density is low

Opening Up the Blackbox: A UK Case Study of Top Managers’ Attitudes to their Performance-Related Pay

This paper examines the attitudes of the top managers within one large financial services organization in the UK to fixed and variable components of their compensation package. The rationale for performance-related pay for senior managers is to align their interests with those of the shareholders, but little is known about the views of top managers on the effectiveness of such incentives. The results suggest that the design of effective bonus systems is not just a technical issue: perceptions of market fairness with respect to the compensation package and the clear communication of goals are important in getting senior managers to focus on shareholder interests

Striking off the shackles A survey of managers' attitudes to employee involvement

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