An Empirical Analysis of Continuing Improvements Following the Implementation of a Performance-Based Compensation Plan

Performance improvements subsequent to the implementation of a pay-for-performance plan can result because more productive employees self-select into the firm (selection effect) and/or because employees allocate effort to become more effective (effort effect). We analyze individual performance data for 3,776 sales employees of a retail firm to evaluate these alternative sources of continuing performance improvement. The incentive plan helps the firm attract and retain more productive sales employees, and motivates these employees to further improve their productivity. In contrast, the less productive sales employees’ performance declines before they leave the firm.

A Field Study of the Impact of a Performance-Based Incentive Plan

Much management accounting research focuses on design of incentive compensation contracts. A basic assumption in these contracts is that performance-based incentives improve employee performance. This paper reports on a field test of the multi-period incentive effects of a performance-based compensation plan on the sales of a retail establishment. Analysis of panel data for 15 retail outlets over 66 months indicates a sales increase when the plan is implemented, an effect that persists and increases over time. Sales gains are significantly lower in the peak selling season when more temporary workers are employed.

Evaluating Form and Functionality of Pay-For-Performance Plans: The Relative Incentive and Sorting Effects of Merit Pay, Bonuses, and Long-Term Incentives

Using two-year longitudinal data from a large sample of US employees from a service-related organization, the present study investigates the relative effects of three forms of pay-for-performance plans on employees’ job performance (incentive effects) and voluntary turnover (sorting effects). The study differentiates between three forms of pay: merit pay, individual-based bonuses, and long-term incentives. By definition, these PFP plans have different structural elements that distinguish them from each other (i.e., pay plan form) and different characteristics (functionality), such as the degree to which pay and performance are linked and the size of the rewards, which can vary both within and across plan types. Our results provide evidence that merit raises have larger incentive and sorting effects than bonuses and long-term incentives in multi-PFP plan environments where the three PFP plans are operating simultaneously. Only merit pay has both incentive and sorting effects among the three PFP plans. The implications for the PFP-related theory, as well as for the design and implementation of PFP plans, are discussed.

O risco e os consumos de performance na população jovem: entre as conceções e as práticas

Objetivos - O foco deste artigo centra‐se na realidade emergente do consumo de medicamentos e/ou produtos terapêuticos naturais para finalidades de gestão do desempenho pessoal (aqui designados consumos de performance), e tem como objetivo analisar a relação entre as práticas de consumo e as perceções do risco e da eficácia atribuídas aos produtos farmacológicos e naturais para finalidades de melhoria e bem‐estar, por parte da população jovem portuguesa (18‐29 anos). Metodologia - A análise dos resultados empíricos de carácter extensivo resulta da aplicação de um inquérito por questionário a uma amostra de âmbito nacional (n=1.483). Do vasto conjunto de indicadores do questionário aplicado, aqueles que são aqui especificamente mobilizados são os que dizem respeito às perceções de risco associadas a estes consumos; aos escalonamentos de risco atribuídos aos diferentes recursos terapêuticos para finalidades de performance; bem como às experiências (e formas de gestão) do risco e da eficácia resultantes das práticas efetivas de consumo. Resultados - Constata‐se que, apesar de os posicionamentos relativamente ao risco dos consumos de performance fazerem salientar uma visão de valorização da segurança, há variações e diferenciações concretas que são indiciadoras não só de permeabilidades e predisposições ao consumo, mas também de conceções que se redefinem no quadro das experiências de uso, das circunstâncias do consumo e das finalidades da utilização dos diferentes produtos terapêuticos. Conclusões - As conceções sobre o risco associado a estes consumos traduzem uma certa plasticidade social, no sentido em que a ancoragem na experiência e a familiaridade com o próprio consumo constituem‐se como aspetos decisivos para a perceção de um maior controlo na gestão do risco. Torna‐se, por isso, importante aprofundar o conhecimento sobre as especificidades contextuais dos segmentos juvenis onde se constroem as modalidades de gestão prática do risco e da eficácia associadas a estes consumos.

Fundamentals for the Development of a Performance Analysis Approach in Collaborative Networks

Part 15: Performance Management Frameworks

The Wiley-Blackwell Handbook of the Psychology of Training, Development, and Performance Improvement

This handbook is a unique contribution to the field, as it joins together training and appraisal as tools for promoting individual development within organizations. The handbook is divided into four sections: training, e-learning, personal and professional development in organizations, and performance management.

Respecting local, cultural contexts for assessment practice in an era of globalization

Dissatisfaction, internationally, with existing educational practices and outcomes since the early 1990s has led to increased educational reform. At the same time, there has also been a worldwide shift in control of education away from teachers toward the state for the purposes of restructuring economies. More bureaucratic forms of curriculum and assessment have resulted, with a return to the use of more techno-rational discourse in assessment and evaluation for purposes of efficiency, accountability, impact, and performance management. There has also been an increase in the use of economic and productivity models to study educational outcomes. These models fail to account for the range of outcomes achieved and fail to identify the factors responsible for such diversity in performance.

Benefits of e-learning benchmarks : Australian case studies

In 2004, the Australian Flexible Learning Framework developed a suite of quantitative and qualitative indicators on the uptake, use and impact of e-learning in the Vocational Education and Training (VET) sector. These indicators were used to design items for a survey to gather quantitative data for benchmarking. A series of four surveys gathered data from VET providers, teachers, students and their employers. The data formed baseline indicators that were used to establish organisational goals and benchmarks for e-learning. These indicators were the first know set for benchmarking e-learning in Australia. The case studies in this paper illustrate ways in which VET providers have approached e-learning benchmarking, the benefits achieved and the lessons that they learned. The cases exemplify how VET providers have adapted the baseline indicators, how the indicators informed organisational plans and e-learning outcomes. The benefits of benchmarking are categorised under three purposes: reporting, performance management, and service improvement. A set of practical strategies is derived from the cases for consideration by other organisations interested in benchmarking e-learning services.

The paradox of transparency : short-termism and the institutionalisation of Australian capital markets

As the ultimate corporate decision-makers, directors have an impact on the investment time horizons of the corporations they govern. How they make investment decisions has been profoundly influenced by the expansion of the investment chain and the increasing concentration of share ownership in institutional hands. By examining agency in light of legal theory, we highlight that the board is in fact sui generis and not an agent of shareholders. Consequently, transparency can lead to directors being 'captured' by institutional investor objectives and timeframes, potentially to the detriment of the corporation as a whole. The counter-intuitive conclusion is that transparency may, under certain conditions, undermine good corporate governance and lead to excessive short-termism.

Australian construction industry KPIs

The Australian Construction Industry Forum (which is a peak industry association) and the Australian Procurement and Construction Council (which is a peak government organisation) have jointly agreed on a set of KPIs for the Australian Construction Industry. The goal of such a process is to work collaboratively in order to lift industry performance overall, and thereby bring about economic and social benefits to the industry and broader community. This paper seeks to underpin the process of KPI measurement by providing: an overview of international approaches to KPI measurement, summary of difficulties identified in performance measurement together with possible responses to these problems, and finally a discussion on the various methods for reporting KPIs. A number of findings throughout the paper, based on the review, made in order to advance the goal of performance measurement in the construction industry in Australia. Such findings would be relevant to other countries considering a KPI measurement process as well.

The HRM practices of innovative knowledge-intensive firms

There is little research on HRM practices in knowledge-intensive firms (KIFs), especially in comparison to that conducted in traditional production environments. Whether such HRM practices are appropriate for KIFs, particularly ones that differentiate themselves on their ability to innovate, is the basis of this research. The study investigates the HRM practices being used by four innovative firms: two KIFs and two traditional production companies. The findings suggest that there are some similarities between the HRM practices of the case firms, but there are also important differences. Specifically, the KIFs emphasise use of selection criteria and processes that secure a workforce with a desire for challenging work and the ability to work collaboratively. The KIFs are also more likely to provide a breadth of training and development opportunities for teams and individuals, to make extensive use of performance management systems, and to utilise a range of strategies to encourage and reward innovation.

On IT governance structures and their effectiveness in collaborative organizational structures

Organizations today engage in various forms of alliances to manage their existing business processes or to diversify into new processes to sustain their competitive positions. Many of today’s alliances use the IT resources as their backbone. The results of these alliances are collaborative organizational structures with little or no ownership stakes between the parties. The emergence of Web 2.0 tools is having a profound effect on the nature and form of these alliance structures. These alliances heavily depend on and make radical use of the IT resources in a collaborative environment. This situation requires a deeper understanding of the governance of these IT resources to ensure the sustainability of the collaborative organizational structures. This study first suggests the types of IT governance structures required for collaborative organizational structures. Semi-structured interviews with senior executives who operate in such alliances reveal that co-created IT governance structures are necessary. Such structures include co-created IT-steering committees, co-created operational committees, and inter-organizational performance management and communication systems. The findings paved the way for the development of a model for understanding approaches to governing IT and evaluating the effectiveness for such governance mechanisms in today’s IT dependent alliances. This study presents a sustainable IT-related capabilities approach to assessing the effectiveness of suggested IT governance structures for collaborative alliances. The findings indicate a favourable association between organizations IT governance efforts and their ability to sustain their capabilities to leverage their IT resources. These IT-related capabilities also relate to measures business value at the process and firm level. This makes it possible to infer that collaborative organizations’ IT governance efforts contribute to business value.

Vulnerabilities in the courtroom

Book summary: In a constantly evolving context of performance management, accountability and risk assessment, police organisations and frontline police officers are required to pay careful attention to what has come to be known as ‘at risk people’, ‘vulnerable populations’ or ‘vulnerable people’. Vulnerable people have become a key focus of policy. Concurrently, there have been stronger demands on police, and a steep increase in police powers in relation to their interaction with vulnerable people. The premise of this protectionist and interventionist agenda is threefold: to protect the rights of vulnerable individuals proactively cater for their vulnerability within the justice system; and to secure police operations and protocols within strict guidelines. This collection unpacks ‘vulnerable people policing’ in theory and practice and guides the reader through the policing process as it is experienced by police officers, victims, offenders, witnesses and justice stakeholders. Each chapter features a single step of the policing process: from police recruit education through to custody, and the final transfer of vulnerable people to courts and sentencing. This edited collection provides analytical, theoretical and empirical insights on vulnerable people policing, and reflects on critical issues in a domain that is increasingly subject to speedy conversion from policy to practice, and heightened media and political scrutiny. It breaks down policing practices, operations and procedures that have vulnerable populations as a focus, bringing together original and innovative academic research and literature, practitioner experience and discussion of policy implications (from local and international perspectives). The particular nature of this collection highlights the multi-disciplinary nature of police work, sheds light on how specific, mandatory policies guide police officers steps in their interaction with vulnerable populations, and discusses the practicalities of police decision making at key points in this process.

IT governance in collaborative organizational structures

Organizations today engage in various forms of alliances to manage their existing business processes or to diversify into new processes to sustain their competitive positions. Many of today’s alliances use the IT resources as their backbone. The results of these alliances are collaborative organizational structures with little or no ownership stakes between the parties. The emergence of Web 2.0 tools is having a profound effect on the nature and form of these alliance structures. These alliances heavily depend on and make radical use of the IT resources in a collaborative environment. This situation requires a deeper understanding of the governance of these IT resources to ensure the sustainability of the collaborative organizational structures. This study reports on the first stage of this initiative. It suggest the types of IT governance structures required for collaborative organizational structures. Semi-structured interviews with senior executives who operate in such alliances reveal that co-created IT governance structures are necessary. Such structures include co-created IT-steering committees, cocreated operational committees, and inter-organizational performance management and communication systems. The findings pave the way for the development of a model for understanding approaches to governing IT and evaluating the effectiveness for such governance mechanisms in today’s IT dependent alliances.