Flexible pay, firm performance and the role of unions. New evidence from Italy

Origo, Federica

doi:10.1016/j.labeco.2008.05.001

Cited by 31 publications

(25 citation statements)

References 38 publications

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“…We determine that corporations implementing CSR programs are likely to adopt pay-for-performance because it motivates employees through material, i.e., monetary, incentives. This is why that the financial performance of firms with pay-for-performance is superior to that of firms without it and previous empirical studies support this claim (Abowd 1990;Delery and Doty 1996;Lee et al 2011;Origo 2009). For example, Origo (2009), using data from Italian metalworking firms, found that performance-related pay contributed to increases in productivity in the range of 7-11 %.…”

Section: Hypothesesmentioning

confidence: 91%

Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Jung

Kim

2015

J Bus Ethics

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Using two firm-level datasets in Korea, we analyzed the effects of corporate social responsibility (CSR) on employment relations. We propose that participation in corporate social activity may not necessarily reflect an ethical commitment to do ''the right thing,'' but instead can be associated with mobilizing internal resources to offset the costs imposed by external CSR involvement undertaken because of social pressure. Analysis of the two datasets showed similar results. The results demonstrate that socially responsible actions facilitate employer tendency to use performance-based pay and efficiency-based work practices. We also find that CSR has a negative association with employment growth and increased labor flexibility through contingent employment. These findings shed light on the internal impact of CSR involvement on a firm's employment policies with respect to resource allocation.

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Section: Hypothesesmentioning

confidence: 91%

Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Jung

Kim

2015

J Bus Ethics

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“…These differentials in territorial localisation and sectors of the Italian firms, as well as in various characteristics of workforce composition, show the importance of our data for analysing the use of PRP, whereas other (few) studies using firm level data are very often limited to smaller samples, restricted by sector, geographical localisation and size (Origo, 2009;Lucifora and Origo, 2012)..…”

Section: Descriptive Statisticsmentioning

confidence: 87%

“…However, the number of contribution that estimate productivity effects by using representative firm surveys are still smaller. Particularly valuable is to highlight the incentive experience in Italy, because prior works for this country have been restricted to large companies, selected sectors or particular areas in the north of the country (Origo, 2009;Lucifora and Origo, 2012).…”

Section: Related Literaturementioning

confidence: 99%

Wages and Labour Productivity: The Role of Performance-Related Pay in Italian Firms

2013

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“…Even on the main dimension of analysis, that of their motivational effects, comparisons between the results of similar such programs implemented in different countries have revealed great variations in the efficiency with which they are able to foster employees' performances. For instance, studies on the productivity increases brought by such plans indicate that these increases vary from 2% in the French organizations (Cahuc and Dormont, 1997) to 7 -11% in Italy (Origo, 2009) and over 40% in the United States (Lazear, 2000), although other papers (Fischer and Smith, 2003) suggest that national differences are smaller. Thus, paying for performance might not be a universal solution, and the in-depth analysis of the effects of these programs in each national culture in which they have been adapted appears to be warranted.…”

Section: Negative Effectsmentioning

confidence: 99%

Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

Urieși¹

2017

Scientific Annals of Economics and Business

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The present research examined the influences of pay for performance programs on employee performance in the Romanian context, by comparing a sample of employees in companies in which such programs are implemented to a sample of employees in organizations in which performance is not used as a criterion in deciding financial rewards. Results show that the work performances of the former, as evaluated by the direct supervisors of each employee, are significantly higher than those of the latter, and that this effect of performance pay is partly mediated by its positive effects on employee perceptions of distributive and procedural justice. Furthermore, results indicate that the individuallevel financial incentive systems are more efficient in fostering work performance than the teamlevel performance pay programs in the Romanian employee sample, and that they also have stronger effects on the two dimensions of organizational justice.

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Flexible pay, firm performance and the role of unions. New evidence from Italy

Cited by 31 publications

References 38 publications

Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Good Neighbors but Bad Employers: Two Faces of Corporate Social Responsibility Programs

Wages and Labour Productivity: The Role of Performance-Related Pay in Italian Firms

Efficiency of Pay for Performance Programs in Romanian Companies and the Mediating Role of Organizational Justice

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