Read the November 2016 Issue of Journal of Management!

3340359442_b93f0f9aa9_o-1The November 2016 issue of Journal of Management is now available online, and can be accessed for the next 30 days! The November issue covers a variety of topics, including articles on organizational transparency, shared leadership-team performance relations, and the effects of autonomy on team performance.

Authors Anthony J. Nyberg, Jenna R. Pieper, and Charlie O. Trevor contributed the article “Pay-for-Performance’s Effect on Future Employee Performance: Integrating Psychological and Economic Principles Toward a Contingency Perspective,” which suggests that bonus pay may have a stronger effect on future performance than merit pay, among other findings about pay-for-performance. The abstract for the paper:

Although pay-for-performance’s potential effect on employee performance is a compelling issue, understanding this dynamic has been constrained by narrow approaches to pay-for-performance conceptualization, measurement, and surrounding conditions. In response, we take a more nuanced perspective by integrating fundamental principles of economics and psychology to identify and incorporate employee characteristics, job characteristics, pay system Current Issue Covercharacteristics, and pay system experience into a contingency model of the pay-for-performance–future performance relationship. We test the role that these four key contextual factors play in pay-for-performance effectiveness using 11,939 employees over a 5-year period. We find that merit and bonus pay, as well as their multiyear trends, are positively associated with future employee performance. Furthermore, our findings indicate that, contrary to what traditional economic perspectives would predict, bonus pay may have a stronger effect on future performance than merit pay. Our results also support a contingency approach to pay-for-performance’s impact on future employee performance, as we find that merit pay and bonus pay can substitute for each other and that the strength of pay-for-performance’s effect is a function of employee tenure, the pay-for-performance trend over time, and job type (presumably due to differences in the measurability of employee performance across jobs).

Another article from the issue, entitled “Social Media for Selection? Validity and Adverse Impact Potential of a Facebook-Based Assessment” from authors Chad H. Van Iddekinge, Stephen E. Lanivich, Philip L. Roth, and Elliott Junco delves into the hazards that arise when recruiters use social media platforms like Facebook to screen job applicants. The abstract for the paper:

Recent reports suggest that an increasing number of organizations are using information from social media platforms such as Facebook.com to screen job applicants. Unfortunately, empirical research concerning the potential implications of this practice is extremely limited. We address the use of social media for selection by examining how recruiter ratings of Facebook profiles fare with respect to two important criteria on which selection procedures are evaluated: criterion-related validity and subgroup differences (which can lead to adverse impact). We captured Facebook profiles of college students who were applying for full-time jobs, and recruiters from various organizations reviewed the profiles and provided evaluations. We then followed up with applicants in their new jobs. Recruiter ratings of applicants’ Facebook information were unrelated to supervisor ratings of job performance (rs = −.13 to –.04), turnover intentions (rs = −.05 to .00), and actual turnover (rs = −.01 to .01). In addition, Facebook ratings did not contribute to the prediction of these criteria beyond more traditional predictors, including cognitive ability, self-efficacy, and personality. Furthermore, there was evidence of subgroup difference in Facebook ratings that tended to favor female and White applicants. The overall results suggest that organizations should be very cautious about using social media information such as Facebook to assess job applicants.

You can read these articles and more from the November 2016 issue of Journal of Management, which is free for the next 30 days, by clicking here to view the issue’s table of contents! Want to stay current on all of the latest research published by Journal of Management? Click here to sign up for e-alerts to receive notifications for new issues and Online First articles!

*City image attributed to Mark Goebel (CC)

A Behind-the-Scenes Look at Hollywood’s Gender-Wage Gap

JMI_72ppiRGB_powerpointKaley Cuoco recently learned the hard way to be careful what you say in an interview after her comments on feminism in the February issue of Redbook magazine provoked some harsh criticism from the media and fans alike. When asked if she considered herself a feminist, the 29-year old actress was quoted as saying “Is it bad if I say no? … I was never that feminist girl demanding equality, but maybe that’s because I’ve never really faced inequality.”

If it is true that she hasn’t run up against gender bias in her acting career, Cuoco is a rare case. The New York Film Academy looked at how women are portrayed in the top 500 films between 2007 and 2012 and found that only 30.8% of speaking characters were women, a third of which were shown partially naked or in sexually revealing clothing. They even found that this latter trend increased 32.5% for teenage actresses in the years studied.

What’s more, while the immediate backlash from her comments may have caused Cuoco to go on what she jokingly calls her “apology tour,” the sad truth is if she hasn’t experienced inequality yet, it might just be a matter of time. A recent study published in Journal of Management Inquiry entitled “Age, Gender, and Compensation: A Study of Hollywood Movie Stars” found that a female actor’s age may play an additional role in Hollywood’s gender-wage gap:

The abstract:

Research on the gender-wage gap shows equivocal evidence regarding its magnitude, which likely stems from the different wage-related variables researchers include in their calculations. To examine whether pay differentials solely based on gender exist, we focused on the earnings of top performing professionals within a specific occupation to rule out productivity-related explanations for the gender-wage gap. Specifically, we investigated the interaction of gender and age on the earnings of Hollywood top movie stars. The results reveal that the average earnings per film of female movie stars increase until the age of 34 but decrease rapidly thereafter. Male movie stars’ average earnings per film reach the maximum at age 51 and remain stable after that.

You can read “Age, Gender, and Compensation: A Study of Hollywood Movie Stars” from Journal of Management Inquiry for free by clicking here. Want to know about all the latest research like this? Click here to sign up for e-alerts from Journal of Management Inquiry!

Providing CEOs With Opportunities to Cheat

What motivates CEOs to misreport financial results?

Hermann Achidi Ndofor of Texas A&M University, Curtis Wesley of Indiana University, and Richard L. Priem of Texas Christian University and LUISS Guido Carli University published “Providing CEOs With Opportunities to Cheat: The Effects of Complexity-Based Information Asymmetries on Financial Reporting Fraud” in the Journal of Management’s OnlineFirst section. The abstract:

UntitledOpportunities for financial reporting fraud arise because of information asymmetries—often labeled “lack of transparency”—between top managers and their diverse shareholders. We evaluate the relative contributions of information asymmetries arising from industry-level and firm-level complexities to the likelihood of JOM_v38_72ppiRGB_150pixWtop managers committing financial reporting fraud. Using a sample of 453 matched pairs of firms that have and have not been identified as having committed financial reporting fraud, we found that information asymmetries arising from industry- and firm-level complexities increase the likelihood of financial fraud. Moreover, more CEO stock options increase the likelihood of fraud when industry complexity is high, while aggressive monitoring by the audit committee reduces the likelihood of reporting fraud when firm-level complexity is high.

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