Research and Insights Archive

Research and Insights from the Center for Effective Organizations

National Differences in Performance-Dependent Compensation Practices: The United States vs. The Netherlands

This paper by E. Pieter Jansen (University of Groningen), Kenneth A. Merchant (USC), and Wim A. Van Der Stede (London School of Economics) describes the findings of a study aimed at providing an international replication of a U.S.-based study by Gibbs et al. (2004, 2006) focused on the performance-dependent compensation practices of firms in the automobile retailing industry.

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The People Paradox: A Study of Future Growth Opportunities

Theresa W. Welbourne (CEO) shares that growth and success increase energy, and even if the growth is small or even if the efforts to grow your organization are less than you would like to see, at least some movement will energize your leaders and employees.

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Employment Horizon and the Choice of Performance Measures: Empirical Evidence from Annual Bonus Plans of Loss-Making Entities

Michal Matejka (University of Michigan), Kenneth A. Merchant (USC), and Wim A. Van Der Stede (London School of Economics) examine the extent to which the presence of employment horizon issues affects the relative emphasis on financial versus nonfinancial performance measures in annual bonus plans.

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Are All Nonfinancial Performance Measures Created Equal?

Clara Ziaoling Chen (University of Illinois), Melissa Martin, and Kenneth A. Merchant (USC) test the business model of a company in the homebuilding industry using its monthly customer satisfaction, employee satisfaction, and financial data for over 200 projects for the period 2001-2004.

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Performance Measure Properties and Incentives

Michael Gibbs (University of Chicago), Kenneth A. Merchant (USC), Wim A. Van Der Stede (London School of Economics), and Mark E. Vargus (University of Texas) provide a comprehensive empirical analysis of incentive design, focusing on effects of performance measure properties (controllable and uncontrollable risk, distortion, and ma-nipulation).

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The Importance of Worker Value Added: Detroit’s Real Lesson for American Industry

James O’Toole and Edward E/ Lawler III (CEO) explain that manufacturing productivity is greatly determined by the design of jobs and how workers are rewarded.

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Update on Energy Pulse Trends and Human Capital: What Executives Think and What Drives Performance

Building on a set of studies that Theresa M. Welbourne (eePulse) has done over the years predicting initial public offering (IPO) firm performance, this Leadership Pulse study examines the degree to which human capital vs. other types of capital are perceived as important by the executives who run major organizations.

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The Strength of Occupation Indicators as Proxy for Skill

In this paper, Alec R. Levenson (CEO) and Cindy Zoghi (US Bureau of Labor Statistics) consider whether inter-occupational wage differentials that are unexplained by measured human capital are indeed due to differences in often-unmeasured skill.

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Why are Jobs Designed the Way they Are?

In this paper, Michael Gibbs (University of Chicago), Alec R. Levenson (CEO), and Cindy Zoghi (BLS) study job design. Do organizations plan precisely how the job is to be done ex ante, or ask workers to determine the process as they go?

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The Challenge of Designing Knowledge Work

This white paper by Susan A. Mohrman (CEO) describes the critical importance of work design in the knowledge economy.

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Reward Systems, Motivation and Organizational Change

Edward E. Lawler III (CEO) and Christopher G. Worley (CEO) argue that organizational excellence is about change. We would not have said this in the 1970s, 1980s, or perhaps even in the 1990s. Today it almost goes without saying.

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Do Competencies Drive Organizational Performance? Can they? Evidence and Implications for Professional and HR Competencies

This article by Alec R. Levenson (CEO) examines the link between competencies and organizational performance.

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