Linking rewards to commitment:an empirical investigation of four UK call centres

Rewards being an important component of exchange theory, this research examines relationships among frontline employees' perceptions of rewards (extrinsic and intrinsic) and the three components of organizational commitment (i.e. affective, normative and continuance). The investigation is conducted by the help of a large survey in four call centres of a major retail bank in the UK. The results of the study support the contentions of exchange theory, and highlight the significance of both extrinsic and intrinsic rewards to develop affective, normative and continuance commitment in call centre employees. This research also helps to identify the antecedents that develop each component of commitment. The findings of this research have key messages for practitioners, and contribute to the fields of HRM, rewards, commitment and exchange theory.

A dual definition for the factor content of trade and its effect on factor rewards in US manufacturing sector

We introduce a dual definition of the Factor Content of Trade (FCT) using the concept of the Equivalent Autarky Equilibrium. Estimating a symmetric normalized quadratic revenue function for the U.S. manufacturing sector between 1965 and 1991, we find that the FCT for capital is positive, while the FCT for skilled and unskilled labor is negative, suggesting that the Leontief Paradox is not present. Then the growth rate of the factor rewards is decomposed to the FCT, endowments, and technological change effects. We find that technological change is the most important determinant in explaining wage inequality between skilled and unskilled labor.

Leader-member exchange in a Chinese context:antecedents, outcomes and mediating role of psychological empowerment

This study examines organizational antecedents of LMX and the mediating influence of empowerment on the relationships between LMX and the work outcomes of job satisfaction, task performance and psychological withdrawal behavior. Data were obtained from employees of a listed Chinese company in Guangdong Province, People's Republic of China. The results revealed that: (a) supervisor control of rewards and work unit climate were related to LMX and (b) empowerment fully mediated the relationship between LMX and the work outcomes as hypothesized.

The effect of business strategies and HRM policies on organizational performance:the Greek experience

This article investigates the relationship between simultaneity in decisions regarding business strategies and human resource management (HRM) policies and their impact on organizational performance. The research is based on a sample of 178 organizations operating in the Greek manufacturing sector. The results of this study support the hypothesis that when business strategies and HRM policies are developed simultaneously, they positively affect organizational performance. This is more valid for decisions taken simultaneously with respect to quality and employee development, innovation and employee rewards and relations, and cost and employee resourcing. © 2008 Wiley Periodicals, Inc.

Dopamine, empathy and the neurobiology of leadership

Objectives: Organisational Psychologists have long sought after methods by which to train individuals to become more effective leaders. Indeed considerable sums of money are spent on the design of such training programs. Yet it is not clear whether or not leadership skills can be taught or whether they are innate. Social leadership is a varied construct consisting of many diverse aspects, yet the ability to empathise with subordinates is a core skill that underpins effective transformational leadership. This type of leadership consists of four characteristics which are labelled ‘idealized influence’, ‘inspirational motivation’, ‘intellectual stimulation’ and ‘individualized consideration’. This is distinct from the transactional style of leadership, which is based on offering contingent rewards for completion of specific tasks. By identifying a specific gene that mediates distinct leadership traits, more effective training regimes can be designed. Design: There are two likely candidate genes that may mediate empathic leadership. The first is catechol-O-methyltransferase (COMT) which is involved with dopamine synthesis, and the second is the serotonin transporter promoter gene (5-HTTLPR). Both these genes mostly appear in the general population in their heterozygotic form. Thus by comparing phenotypes in leadership traits a measure of base line differences can be examined. Methods: 115 volunteers completed the Multifactor Leadership questionnaire (MLQ), which is a standard 12-item leadership psychometric scale and also underwent buccal swab for subsequent genotyping. Results: Of the 115 subjects 37 were heterozygotic for the COMT gene and 47 heterozygotic for 5-HTTLPR. Of the 12 MLQ subscales, the scores for two of the subscales only differed between the two participant groups. Individuals who were heterozygotic for the COMT gene scored higher on the ‘Inspirational motivation’ t(84)=1.99, p=0.05 and ‘Intellectual stimulation’ t(82)=1.94, p=0.05 scales compared to the carriers for the heterozygotic 5HTPP gene. Conclusions: Given that the behaviours described by these two MLQ subscales require leaders to empathise with subordinates, the current results suggest that dopamine may play a role in this important social task. The fact that both heterozygotic carriers for COMT and 5HTPP were compared allows a comparison to be made between the genotypes most prevalent in the general population.

Does internal marketing improve service quality in call centres?

Although internal marketing has been conceptually argued to improve service quality, empirical evidence in this respect has been limited. This research investigates the relationship between rewards, which are a key component of internal marketing paradigm, and service quality of frontline employees in banking call centres. In this context, the authors develop hypotheses with the help of literature review, and empirically examine the effects of various extrinsic and intrinsic rewards on service quality. The results indicate that intrinsic rewards have greater effect on service quality than extrinsic rewards, which offer managerial implications and directions for future research.

Embodied myopia

One field study and five experiments show that seemingly irrelevant bodily actions influence consumer behavior. These studies demonstrate that arm flexion (in which the motor action is directed toward the self) versus arm extension (in which the motor action is directed away from the self) influences purchase behavior, product preferences, and economic decisions. More specifically, arm flexion increases the likelihood of purchasing vice products (Study 1a), leads to a preference for vices over virtues (Studies 1b and 2a), and leads to preference for smaller, sooner over larger, later monetary rewards (Studies 2b, 3, and 4). The authors argue that arm flexion induces present-biased preferences through activation of approach motivation. The effect of bodily actions on present-biased preferences is regulated by the behavioral approach system (Studies 3 and 4) and relies on the learned association between arm flexion and activation of this approach system (Study 4). The authors discuss implications for Intertemporal decision making, embodied cognition, and marketing practice. © 2011, American Marketing Association.

HRM systems, internal marketing and performance in Indian call centres:full research report ESRC end of award report, RES-000-22-1876

Considering the rapid growth of call centres (CCs) in India, its implications for businesses in the UK and a scarcity of research on human resource management (HRM) related issues in Indian CCs, this research has two main aims. First, to highlight the nature of HRM systems relevant to Indian call centres. Second, to understand the significance of internal marketing (IM) in influencing the frontline employees’ job-related attitudes and performance. Rewards being an important component of IM, the relationships between different types of rewards as part of an IM strategy, attitudes and performance of employees in Indian CCs will also be examined. Further, the research will investigate which type of commitment mediates the link between rewards and performance and why. The data collection will be via two phases. The first phase would involve a series of in-depth interviews with both the managers and employees to understand the functioning of CCs, and development of suitable HRM systems for the Indian context. The second phase would involve data collection through questionnaires distributed to the frontline employees and supervisors to examine the relationships among IM, employee attitudes and performance. Such an investigation is expected to contribute to development of better theory and practice.

Rewarding customer service? Using reward and recognition to deliver your customer service strategy

This report examines the role of reward and recognition in helping organisations deliver excellent customer service. It identifies the impact that reward and recognition practice has upon customer service and highlights which practices are more effective; shows the extent to which employees are satisfied with the rewards and recognition they receive; indicates those approaches to reward and recognition most associated with staff commitment; and looks at how other factors affect employee satisfaction with reward and recognition.

HRM systems, internal marketing and performance in Indian call centres:non-technical summary (Research summary) ESRC end of award report, RES-000-22-1876. Swindon: ESRC

Considering the rapid growth of call centres (CCs) in India, its implications for businesses in the UK and a scarcity of research on human resource management (HRM) related issues in Indian CCs, this research has two main aims. First, to highlight the nature of HRM systems relevant to Indian call centres. Second, to understand the significance of internal marketing (IM) in influencing the frontline employees’ job-related attitudes and performance. Rewards being an important component of IM, the relationships between different types of rewards as part of an IM strategy, attitudes and performance of employees in Indian CCs will also be examined. Further, the research will investigate which type of commitment mediates the link between rewards and performance and why. The data collection will be via two phases. The first phase would involve a series of in-depth interviews with both the managers and employees to understand the functioning of CCs, and development of suitable HRM systems for the Indian context. The second phase would involve data collection through questionnaires distributed to the frontline employees and supervisors to examine the relationships among IM, employee attitudes and performance. Such an investigation is expected to contribute to development of better theory and practice.

Performance management systems:a global perspective

Performance management is the process by which organizations set goals, determine standards, assign and evaluate work, and distribute rewards. But when you operate across different countries and continents, performance management strategies cannot be one dimensional. HR managers need systems that can be applied to a range of cultural values. This important and timely text offers a truly global perspective on performance management practices. Split into two parts, it illustrates the key themes of rater motivation, rater-ratee relationships and merit pay, and outlines a model for a global appraisal process. This model is then screened through a range of countries, including Germany, Japan, USA, Turkey, China, India and Mexico. Using case studies and discussion questions, and written by local experts, this text outlines the tools needed to understand and ‘measure’ performance in a range of socio-economic and cultural contexts. It is essential reading for students and practitioners alike working in human resources, international business and international management.

Work-life balance benefits:employee attitudes and behaviors through the lens of social exchange theory

The question of what to provide employees in order that they reciprocate with desirable behaviors in the work place has resulted in a great amount of work in the area of social exchange. Although offering fair compensation, including salary or wages and employee benefits, has been extensively studied, the effects of offering specific types of benefits, such as work-life balance benefits, and the intangible rewards that such an offering inadvertently offers, has only been minimally explored. Utilizing past literature, this current research examined the offering of work-life balance benefits, the value employees place on those benefits, the communication of the benefits by the organization to employees, and their effect on employee attitudes and behaviors. The goal was to identify the effect on desirable outcomes when work-life balance benefits are offered to determine the usefulness to the organization of offering such benefits. To test these effects, a study of an organization known to offer a strong work-life balance benefits package was undertaken. This was accomplished through the distribution of questionnaires to identify the possible relationships involving 408 employee respondents and their 79 supervisors. This was followed with interviews of 12 individuals to ascertain the true reasons for links observed through analysis. Analysis of the data was accomplished through correlation analysis, multilevel analysis and regression analysis generated by SPSS. The results of the quantitative analysis showed support for a relationship between the offering of work-life balance benefits and perceived organizational support, perceived distributive justice, job satisfaction and OCBO. The analysis also showed a lack of support for a relationship between the offering of work-life balance benefits and organizational commitment, OCBI and IRB. The interviews offered possible reasons for the lack of support regarding the relationship between the offering of work-life balance benefits and organizational commitment as well as organizational citizenship behaviors (OCBI and IRB). The implications of these findings on future research, theory and practice in the offering of work-life balance benefits are discussed.

Psychosoziale Merkmale der Arbeit, Überforderungserleben und Depressivität

Die vorliegende Studie untersuchte die im Job-Demand-Control-Support-Modell und Effort-Reward-Imbalance-Modell beschriebenen Tätigkeitsmerkmale in Bezug auf Depressivität in einer Stichprobe von 265 Erwerbstätigen. Anhand konfirmatorischer Faktorenanalysen wurden Gemeinsamkeiten und Unterschiede beider Modelle geprüft. Anschließend wurde die Bedeutung der nachweisbaren Tätigkeitsmerkmale für die Vorhersage von Depressivität getestet und untersucht, inwieweit die Effekte durch Überforderungserleben mediiert werden. Die Analysen zeigten, dass die Modelle sowohl gemeinsame (Arbeitsintensität bzw. berufliche Anforderungen) als auch distinkte Arbeitsmerkmale (Tätigkeitsspielraum, Arbeitsplatzsicherheit, beruflicher Status, soziale Anerkennung) erfassen. Hohe Arbeitsintensität, geringe Arbeitsplatzsicherheit und fehlende soziale Anerkennung standen in signifikantem Zusammenhang mit Depressivität. Anders als erwartet war der berufliche Status positiv mit Depressivität assoziiert, während für den Tätigkeitsspielraum keine signifikanten Effekte nachweisbar waren. Das Pfadmodell bestätigte sowohl direkte als auch durch Überforderungserleben vermittelte Zusammenhänge zwischen den Tätigkeitsmerkmalen und Depressivität (39 % Varianzaufklärung). Die Ergebnisse bieten eine Grundlage für die Identifizierung potenzieller Risikofaktoren für das Auftreten depressiver Symptome am Arbeitsplatz. This study examined the job characteristics in the Job-Demand-Control-Support Model and in the Effort-Reward Imbalance Model with regard to depression in a sample of 265 employees. First, we tested by means of confirmatory factor analysis similarities and differences of the two models. Secondly, job characteristics were introduced as predictors in a path model to test their relation with depression. Furthermore, we examined whether the associations were mediated by the experience of excessive demands. Our analyses showed the demand/effort component to be one common factor, while decision latitude and reward (subdivided into the three facets of job security, social recognition, and status-related reward) remained distinctive components. Employees with high job demands/effort, low job security, low social recognition, but high status-related rewards reported higher depression scores. Unexpectedly, status-related rewards were positively associated with depression, while we found no significant effects for decision latitude. The path models confirmed direct as well as mediation effects (through experienced excessive demands) between job characteristics and depression (39 % explained variance in depression). Our results could be useful to identify possible job-related risk factors for depression.

Hierarchical control and performance regimes in local government

Purpose – The purpose of this paper is to consider hierarchical control as a mode of governance, and analyses the extent of control exhibited by central government over local government through the best value (BV) and comprehensive performance assessment (CPA) performance regimes. Design/methodology/approach – This paper utilises Ouchi's framework and, specifically, his articulation of bureaucratic or hierarchical control in the move towards achievement of organisational objectives. Hierarchical control may be inferred from the extent of “command and control” by Central Government, use of rewards and sanctions, and alignment to government priorities and discrimination of performance. Findings – CPA represents a more sophisticated performance regime than BV in the governance of local authorities by central government. In comparison to BV, CPA involved less scope for dialogue with local government prior to introduction, closer inspection of and direction of support toward poorer performing authorities, and more alignment to government priorities in the weightings attached to service blocks. Originality/value - The paper focuses upon the hierarchic/bureaucratic mode of governance as articulated by Ouchi and expands on this mode in order to analyse shifts in performance regimes in the public sector.