We use human resources (HR) system strength theory to argue that transformational leadership leads to employee consensus on a unit’s high-performance work system (HPWS), that consensus helps align ...employee attitudes, and that a compression in attitudes facilitates strategy execution and unit-level outcomes. Empirical tests based on a 4-year linked employee–customer panel data set, involving 255 do-it-yourself stores, support our predictions. Transformational leadership is positively related to HPWS consensus. Consensus is negatively associated with unit-level job satisfaction dispersion, which in turn relates positively to unit-level customer satisfaction. Our study makes important contributions to the strategic HR and HR system strength literatures, highlighting the roles of leadership and employee consensus in strategy execution.
The amount and type of pay information made available by organizations to employees and between employees can have important effects on employee attitudes and behaviors as well as organizational ...performance. Although a large body of research on pay information exists, on topics ranging from pay transparency to pay secrecy, researchers have used inconsistent definitions (pay secrecy, openness, transparency, pay communications) and operationalizations that hinder knowledge development. In this paper, consistent with the theory of information asymmetry and based on research reviewed here, we promote a new integrative definition (“pay information disclosure”) that anchors both current and future research. We define the concept of pay information disclosure (PID) as the communication of relevant pay information between and among actors. By viewing pay information disclosure research in an information asymmetry context, with its focus on the causes and consequences of unequal access to information, we can synthesize research that examines motives for and outcomes of PID for individuals, organizations, and society. Based on our review, we outline a research agenda that identifies research questions and methods to stimulate studies to better understand the role of pay information in the workplace and in society.
This study investigates the effects of rewards in a research and development (R&D) setting in which employees’ inventive efforts lead to patented inventions. Pay for performance (PFP) for inventions ...is associated with two challenges: Low-quality inventions may be rewarded (false positives), and high-quality inventions may be overlooked (false negatives). Building on previous findings regarding the motivational and informational effects of rewards, we use social identity theory to predict that different types of inventors react differently to such false positive and false negative information. Specifically, we hypothesize that PFP that produces false positives has detrimental effects on corporate inventors with a taste for science, who are motivated by scientific prestige, reputation, and intellectual curiosity. The empirical results from survey data related to 3,995 inventor–patent pairs show that, for this particular group of inventors, false positives are associated with reduced effort in research activities and fewer interactions with peers in the R&D department. In addition, these effects are stronger when firms have many patents and thus provide less noisy information to corporate inventors.
A great deal of research has been devoted to understanding the organizational returns of employee referral programs, particularly with respect to outcomes involving those hired through the referral ...process. Yet, no work has addressed whether the presence of a referral hire (i.e., the referred candidate who is hired and working in the firm) is related to behavioral outcomes for the referrer. Drawing on the social enrichment perspective, we theorize how referral hire presence (RHP), which is the time during which the referrer’s and the referral hire’s employment spells overlap, impacts referrer behavior. Using data from 265 referrers in a U.S. call center, we found that RHP was negatively related to referrer voluntary turnover and positively related to referrer job performance. Further, results from a supplemental experimental study supported our social enrichment rationale for the field study relationships, as the construct was associated with both RHP and additional attitudes known to be proximal predictors of turnover and performance. We also explore boundary conditions for the RHP effect in the call center data, revealing a nuanced mix of moderators of RHP effects. Overall, our findings provide the first evidence for the role of social enrichment, possible modifications to the well-established social enrichment perspective in the workplace, and evidence that understanding the impact of referral hiring necessitates careful consideration of the behavioral consequences for the referrer.
Why do employees experience work from home (WFH) differently? We draw on boundary theory to explain how WFH influences employees' work-home interface. WFH intensity increases negative spillovers ...(i.e., work-to-home conflict and home-to-work conflict) and positive spillovers (i.e., work-to-home enrichment and home-to-work enrichment) between the work and home domains. Negative spillovers can be mitigated through high-quality work equipment and beneficial spatial conditions at home. Domain centrality predicts who can benefit from increased WFH intensity. We test our theory with a sample of 545 employees, obtained through a two-step random sampling procedure in the city of Munich/Germany during the COVID-19 pandemic. We find that WFH intensity increases work-to-home conflict and home-to-work enrichment, affecting employees' relationship satisfaction and job satisfaction. High-quality work equipment mitigates the detrimental effects of WFH. Employees with a high family centrality can reap benefits of more WFH because they experience more home-to-work enrichment. The simultaneous desirable and detrimental effects of WFH intensity can partly explain why studies have found heterogenous WFH experiences among employees.
Pay information disclosure (PID), or communicating pay information between and among actors, affects employees, organizations, and societies. Disruptions resulting from artificial intelligence (AI) ...will also change how pay is communicated. Based on AI, AI and human resources (HR), and PID, as well as anecdotal data involving organizations that are integrating AI in their pay practices, we introduce areas of AI relevant to PID and describe opportunities and challenges. HR should play a critical role in developing employee trust in AI systems by protecting employee privacy, training AI on high-quality data, and ensuring AI algorithms are ethical. AI can transform PID by supporting advanced pay methodologies, reducing barriers to sharing information, and educating employees. However, research needs to be conducted on all of these areas and practitioners should strive to keep an open, but cautious mind about both the benefits and challenges of integrating AI into HR practices.
The dynamic systems view of voluntary turnover rates advocated in context-emergent turnover theory is used to explore how and why human capital flows impact unit performance over time. We examine ...hiring rates and employee transfer rates as distinct system components that work alongside voluntary turnover rates to affect job demands, and ultimately patient satisfaction. Our work explores this dynamic system of interrelated constructs, and explains and compares their mutual causality over time. The sample examined consists of 12 nursing units in a large hospital over 72 monthly observations, with patient satisfaction as the measure of unit performance.
Executive compensation contracts have become increasingly complex in recent years, raising concerns about their effectiveness and impact on business performance. This article summarizes research on ...executive compensation complexity and its effects on business performance. The study found that the complexity of executive compensation contracts has been steadily increasing, with a 66% increase from 2006 to 2017. This complexity has negative effects on various business performance metrics, including return on assets, stock market returns, and environmental, social, and governance (ESG) metrics. The study also found that complexity imposes cognitive costs on decision-makers and can lead to a loss of focus. Additionally, the research highlights the negative effects of compensation complexity on turnover and team integration within top management teams. The findings suggest that more equal compensation contract designs and simpler total rewards systems may be advantageous for organizations. Overall, the study emphasizes the importance of considering compensation plan design and complexity when developing executive compensation packages.
Cowen et al discuss the application of Coleman's boat in management research. Building on their collective experiences, they highlight three primary theoretical challenges that prevent researchers ...from fully realizing the value of integrating macro and micro approaches, along with some potential solutions that they hope will prove useful to scholars in addressing these issues in their own work. In doing so, their intention is not to focus on limitations of macro or micro research. Rather, they aim to facilitate the success and impact of authors conducting cross-level work by highlighting a set of common theoretical challenges that such papers often encounter.
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