Psychological contracts and independent sales contractors: an examination of the predictors of contractor-level outcomes

Over the past decade, the independent sales contractor (ISC) has emerged as both an important distribution channel and a management challenge. This study makes two contributions to this evolving field. First, it explores the interrelations of the psychological contract with sales performance, voluntary turnover and organisational advocacy of ISCs, which have hitherto been largely unexplored. Second, it examines differences between high- and low-performing sales contractors on these linkages, due to findings in the literature that a small number of sales contractors often achieve a majority of sales. Based on survey data as well as 7 years of contractor-level data related to sales performance and voluntary turnover (n = 189), results indicate that psychological contract fulfilment and perceived dependency are important determinants of subsequent sales performance, voluntary turnover and organisational advocacy, with significant differences reported between high- and low-performing ISCs. A notable finding pertinent for sales managers responsible for managing ISCs is that high-performing sales contractors are motivated by psychological contract fulfilment and a low perception of dependency, while low-performing sales contractors are more likely to act as advocates for the firm due to perceived dependency, but may concurrently engage in organisational advocacy as a means to leave the firm.

Compensation and Rewards for Environmental Services (CRES) and efficient design of contracts in developing countries. Behavioral insights from a natural field experiment

The use of economic incentives for biodiversity (mostly Compensation and Reward for Environmental Services including Payment for ES) has been widely supported in the past decades and became the main innovative policy tools for biodiversity conservation worldwide. These policy tools are often based on the insight that rational actors perfectly weigh the costs and benefits of adopting certain behaviors and well-crafted economic incentives and disincentives will lead to socially desirable development scenarios. This rationalist mode of thought has provided interesting insights and results, but it also misestimates the context by which ‘real individuals’ come to decisions, and the multitude of factors influencing development sequences. In this study, our goal is to examine how these policies can take advantage of some unintended behavioral reactions that might in return impact, either positively or negatively, general policy performances. We test the effect of income's origin (‘Low effort’ based money vs. ‘High effort’ based money) on spending decisions (Necessity vs. Superior goods) and subsequent pro social preferences (Future pro-environmental behavior) within Madagascar rural areas, using a natural field experiment. Our results show that money obtained under low effort leads to different consumption patterns than money obtained under high efforts: superior goods are more salient in the case of low effort money. In parallel, money obtained under low effort leads to subsequent higher pro social behavior. Compensation and rewards policies for ecosystem services may mobilize knowledge on behavioral biases to improve their design and foster positive spillovers on their development goals.

Endogenous managerial compensation contracts in experimental quantity-setting duopolies

Given the ongoing debate on managerial compensation schemes, our paper offers empirical insights on the strategic choice of firms' owners over the terms of a managerial compensation contract, as a commitment device aiming at gaining competitive advantage in the product market. In a quantity setting duopoly we experimentally test whether firms' owners compensate their managers through contracts combining own profits either with revenues or with relative performance, and the resulting managerial behaviour in the product market. Prominent among our results is that firms' owners choose relative performance over profit revenue contracts more frequently. Further, firms' owners successfully induce a more aggressive behaviour by their managers in the market, by setting incentives which deviate from strict profit maximization.

Risk taking of executives under different incentive contracts: experimental evidence

Classic financial agency theory recommends compensation through stock options rather than shares to counteract excessive risk aversion in agents. In a setting where any kind of risk taking is suboptimal for shareholders, we show that excessive risk taking may occur for one of two reasons: risk preferences or incentives. Even when compensated through restricted company stock, experimental CEOs take large amounts of excessive risk. This contradicts classical financial theory, but can be explained through risk preferences that are not uniform over the probability and outcome spaces, and in particular, risk seeking for small probability gains and large probability losses. Compensation through options further increases risk taking as expected. We show that this effect is driven mainly by the personal asset position of the experimental CEO, thus having deleterious effects on company performance.

Education and training futures in horticulture and horticultural science

Horticultural knowledge and skills training have been with humankind for some 10,000 to 20,000 years. With permanent settlement and rising wealth and trade, horticulture products and services became a source of fresh food for daily consumption, and a source of plant material in developing a quality environment and lifestyle. The knowledge of horticulture and the skills of its practitioners have been demonstrated through the advancing civilizations in both eastern and western countries. With the rise of the Agricultural Revolutions in Great Britain, and more widely across Continental Europe in the 17th and 18th centuries, as well as the move towards colonisation and early migration to the New Worlds, many westernised countries established the early institutions that would provide education and training in agriculture and horticulture. Today many of these colleges and universities provide undergraduate, postgraduate and vocational and technical training that specifically targets horticulture and/or horticultural science with some research and teaching institutions also providing extension and advisory services to industry. The objective of this chapter is to describe the wider pedagogic and educational context in which those concerned with horticulture operate, the institutional structures that target horticulture and horticultural science education and training internationally; examine changing educational formats, especially distance education; and consider strategies for attracting and retaining young people in the delivery of world-class horticultural education. In this chapter we set the context by investigating the horticultural education and training options available, the constraints that prevent young people entering horticulture, and suggest strategies that would attract and retain these students. We suggest that effective strategies and partnerships be put in place by the institution, the government and most importantly the industry to provide for undergraduate and postgraduate education in horticulture and horticultural science; that educational and vocational training institutions, government, and industry need to work more effectively together to improve communication about horticulture and horticultural science in order to attract enrolments of more and talented students; and that the horticulture curriculum be continuously evaluated and revised so that it remains relevant to future challenges facing the industries of horticulture in the production, environmental and social spheres. These strategies can be used as a means to develop successful programs and case studies that would provide better information to high school career counsellors, improve the image of horticulture and encourage greater involvement from alumni and the industries in recruitment, provide opportunities to improve career aspirations, ensure improved levels of remuneration, and promote the social features of the profession and greater awareness and recognition of the profession in the wider community. A successful career in horticulture demands intellectual capacities which are capable of drawing knowledge from a wide field of basic sciences, economics and the humanities and integrating this into academic scholarship and practical technologies.

Construction contracts: law and management. 5th edition

The fifth edition of this best-selling textbook has been thoroughly revised to provide the most up-to-date and comprehensive coverage of the legislation, administration and management of construction contracts. It now includes comparison of working with JCT, NEC3 and FIDIC contracts, throughout. In line with new thinking in construction management research, this authoritative guide is essential reading for every construction undergraduate and is an extremely useful source of reference for practitioners.