Michael Gibbs (University of Chicago), Kenneth A. Merchant (USC), Wim A. Van Der Stede (London School of Economics), and Mark E. Vargas (University of Texas) analyze effects of performance measure properties (controllable and uncontrollable risk, distortion, and manipulation) on incentive plan design, using data from auto dealership manager incentive systems
Research and Insights Archive
Research and Insights from the Center for Effective Organizations
Available Content
Why HR Practices are not Evidence-Based
Edward E. Lawler III (CEO) states that in short, most organizations do not practice evidence-based human resource management. As a result, they often under-perform with respect to their key stakeholders: employees, investors and the community.
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.
Volunteerism: Leaders’ Attitudes, Thoughts and Behaviors
Theresa M. Welbourne (CEO) describes that the focus of the current Leadership Pulse was volunteerism at work.
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.
Is Expatriation Good for My Career? The Impact of Expatriate Assignments on Perceived and Actual Career Outcomes
This study by George S. Benson (University of Texas) and Marshall Pattie (Towson University) examines the impact of expatriate assignments on career growth and the external marketability of U.S. employees of a large professional services firm.
Organizational Communication Networks
Peter Monge (USC) and Drew Margolin (USC) explain how communication and other social networks have been the subject of considerable scholarship since the eighteenth century (Mattelart, 2000), but the past two decades have produced unprecedented growth in network theorizing and research.
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.
CEO Compensation: What Board Members Think
Edward E. Lawler III (CEO) and David Finegold (Rutgers University)
Survey data were gathered from 660 board members of the largest publicly traded corporations. They think that CEO compensation is too high in many corporations.
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.
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).
Taking Stock: A Review of More Than Twenty Years of Research on Empowerment at Work
Gretchen Spreitzer (University of Michigan) argues that to be successful in today’s global business environment, companies need the knowledge, ideas, energy, and creativity of every employee, from front line workers to the top level managers in the executive suite.