The influence of organizational justice on salesperson responses to merit pay decisions: an empirical investigation

Merit pay is the most important component of extrinsic rewards received by sales employees. Its importance derives from the fact that satisfaction with merit pay has been linked to a number of important attitudinal and behavioral outcomes such as job satisfaction, organizational commitment, instrumentality and expectancy beliefs, and job performance. It is not surprising, therefore, that researchers have attempted to delineate the antecedent factors to merit pay satisfaction. A large number of antecedents have been identified in the literature thus far. These include individual differences, job characteristics, leadership characteristics, organizations structure, and other organizational climate factors. Only recently, however, have researchers begun to examine issues relating to fairness of merit pay decisions. These researchers have identified several facets of fairness, namely, procedural, distributive, and interactional, and have suggested that all these fairness aspects will influence how employees may evaluate the merit raises they get. No single study in the marketing literature has thus far attempted to evaluate the relevance of fairness factors for pay outcome evaluations of sales employees. The purpose of this study will be to fill this void. The study not only investigates the relationships between fairness dimensions and evaluation of pay outcome, it also examines whether fairness also determines global attitudes of employees toward their supervisors and the organization. Both normative and instrumental views of organizational justice are considered

Cost of on-farm microbial testing for Salmonella: An application by farm size and prevalence level

As the pork production industry moves closer to adopting and using Hazard Analysis and Critical Control Point (HACCP) management systems, effective pathogen identification becomes necessary. Additionally, relationships between management strategies and prevention and/or reduction of pathogens on the farm is needed. An important component of these systems is the associated economic costs and benefits. Studies have assessed the economic costs and benefits of HACCP management systems that target specific pathogen reduction, such as Salmonella spp. in food animals (Morales, 1995; Perrin, 1993). Morales’ and Perrin’s research lacked an analysis of HACCP’s proactive approach to prevention of foodborne disease in the food chain. Existing research on economic analysis of HACCP has been limited. An application specific to the seafood and poultry industry was conducted by Martin (1993) and Curtin (1991)by Martin (1991)and for the food processing industry. Jensen and Unnevehr (1995) pointed out that “data on the incidence of pathogens in farm animals, the adoption of farm management practices, and the cost of these practices can be used to analyze the costs of reducing pathogens at the farm.” It has been noted that HACCP plans are often made with limited knowledge of onfarm pathogen prevalence. With the recent Pathogen Reduction Act of 1996 being put into law, the meat industry faces tighter scrutiny based on bacterial counts on meat products. USDA/FSIS efforts will be targeted at determining bacterial levels, including Salmonella, on meat products. Included in this law are specific goals or targets for the reduction of Salmonella. Tighter scrutiny and an increase in microbiological testing, first at the larger slaughter/processing facilities (500+ employees), will likely lead to industry adjustments. Additionally, consumers, domestic and international, have become more health conscious and more informed about outbreaks of foodborne disease. The meat industry has a goal of increasing and maintaining consumer confidence and maintaining product integrity. These regulatory, social, and consumer changes shaping the meat and animal production industry likely will be felt throughout the industry, including at farm level. This study evaluates the cost of on-farm Salmonella testing for selected prevalence levels and group sizes. Testing cost is size dependent; per pig cost declines as group size increases. Cost per pig in a group ranged from $5.37 for a 500-head group to$.49 per head for a 10,000 head group. Costs were projected with a 5% prevalence level and a 95% confidence interval

Economic Analysis of Salmonella Impacts on Swine Herds

The economic analysis performed in this study is based on consolidated data from 48 groups of commercial finisher swine classified by three levels of Salmonella and on industry data. Each swine grouping had from 900 to 9,000 swine. The groupings were comprised of the same management and genetics, and were provided the same feed rations and diets throughout the study. The study group and comparison group were comprised of swine herds raised in the midwestern United States. Information was gathered over a 12-month period and contained more than 80,000 data points based on Salmonella spp. detection. Epidemiological data, with serology and mix-ELISA, compared three category levels of Salmonella: low risk (level 1), moderate risk (level 2), and high risk (level 3). Economic cost benefit analysis was based on operational and performance outcome data and was used to determine incremental performance efficiencies measured by additional pounds of pork produced per square foot of production space, performance weight gains, and time to market. Modeling was based on selected market hog prices matched with variable costs and overhead costs for producing groupings of finisher swine with identified levels of Salmonella. This approach helped to identify economic impacts for swine producers. Data indicate that swine from groupings with a level 1 Salmonella seroprevalence had better production efficiency than those groups having a level 2 or level 3 Salmonella status. Those in level 1 produced 5.2 more pounds of pork annually per square foot of finisher space. Groupings of swine with level 1 Salmonella seroprevalence annually produced 2.9 more pounds of pork per square foot of finisher space than level 2 groupings. For market hog pricing and production cost scenarios in this study, there were economic benefits for moving swine herds from level 3 to level 2 or level 1 seroprevalence for Salmonella. Data indicate that Salmonella may increase the producer’s break-even cost due to production inefficiencies attributed mostly to increases in time to market and in excess feed consumption. Moreover, Salmonella levels may have an impact on variability in pig marketing weight and needs further study. Management strategies also may report variability in pig marketing weight. For swine production facilities with all in-all out production strategies, variability in pig gain and marketing weight can create problems at close-out time. An increased weight variability also can account for additional economic loss, because lighter weight hogs and excessively heavy hogs are docked. For example, swine marketed under 220 pounds at close-out are often docked $10 per head; swine marketed under 200 pounds at closeout are docked as much as$20 per head. Excessively heavy hogs also are docked

A Discussion of an Epidemiologic and Economic Consideration in AHCCP Evaluation: An Application of Salmonella

This research focuses on conceptualizing the potential impact of good management practices and the associated economic costs and benefits of those practices aimed at reducing Salmonella. The aim is for feedback on ideas about systems identification, possible critical control points (CCPs), potential pathogen tests (serological vs. culture) and levels, identified test points, and potential benefits, etc. Analysis will focus on two levels, animal production (pre-harvest) and slaughter/processing (post-harvest). A primary objective will be identification of effective intervention strategies for reducing Salmonella

Why do banks promise to pay par on demand?

We survey the theories of why banks promise to pay par on demand and examine evidence about the conditions under which banks have promised to pay the par value of deposits and banknotes on demand when holding only fractional reserves. The theoretical literature can be broadly divided into four strands: liquidity provision, asymmetric information, legal restrictions, and a medium of exchange. We assume that it is not zero cost to make a promise to redeem a liability at par value on demand. If so, then the conditions in the theories that result in par redemption are possible explanations of why banks promise to pay par on demand. If the explanation based on customers’ demand for liquidity is correct, payment of deposits at par will be promised when banks hold assets that are illiquid in the short run. If the asymmetric-information explanation based on the difficulty of valuing assets is correct, the marketability of banks’ assets determines whether banks promise to pay par. If the legal restrictions explanation of par redemption is correct, banks will not promise to pay par if they are not required to do so. If the transaction explanation is correct, banks will promise to pay par value only if the deposits are used in transactions. After the survey of the theoretical literature, we examine the history of banking in several countries in different eras: fourth-century Athens, medieval Italy, Japan, and free banking and money market mutual funds in the United States. We find that all of the theories can explain some of the observed banking arrangements, and none explain all of them

A Detrimental Feedback Loop: Deleveraging and Adverse Selection

Market distress can be the catalyst of a deleveraging wave, as in the 2007/08 financial crisis. This paper demonstrates how market distress and deleveraging can fuel each other in the presence of adverse selection problems in asset markets. At the core of the detrimental feedback loop is agents' desire to reduce their reliance on distressed asset markets by decreasing their leverage which in turn amplifies the adverse selection problem in asset markets. In the extreme case, this leads to a market breakdown. I find that adverse selection creates both an "ex-ante" inefficiency because it distorts agents' long-term leverage choices and an "interim" inefficiency because it distorts agents' short-term liquidity management. I derive important implications for central bank policy

Heterogeneity and Stability: Bolster the Strong, Not the Weak

This paper provides a model of systemic panic among financial institutions with heterogeneous fragilities. Concerns about potential spillovers from each other generate strategic interaction among institutions, triggering a preemption game in which one tries to exit the market before the others to avoid spillovers. Although financial contagion originates in weaker institutions, systemic risk depends critically on the financial health of stronger institutions in the contagion chain. This analysis suggests that when concerns about spillovers prevail, then 1) increasing heterogeneity of institutions promotes systemic stability and 2) bolstering the strong institutions in the contagion chain, rather than the weak, more effectively enhances systemic stability

An Outbreak of Cryptosporidium parvum across England & Scotland Associated with Consumption of Fresh Pre-Cut Salad Leaves, May 2012

Background We report a widespread foodborne outbreak of Cryptosporidium parvum in England and Scotland in May 2012. Cases were more common in female adults, and had no history of foreign travel. Over 300 excess cases were identified during the period of the outbreak. Speciation and microbiological typing revealed the outbreak strain to be C. parvum gp60 subtype IIaA15G2R1. Methods Hypothesis generation questionnaires were administered and an unmatched case control study was undertaken to test the hypotheses raised. Cases and controls were interviewed by telephone. Controls were selected using sequential digit dialling. Information was gathered on demographics, foods consumed and retailers where foods were purchased. Results Seventy-four laboratory confirmed cases and 74 controls were included in analyses. Infection was found to be strongly associated with the consumption of pre-cut mixed salad leaves sold by a single retailer. This is the largest documented outbreak of cryptosporidiosis attributed to a food vehicle