Leveraging Human Capital: Are Your Employees Getting Enough Sleep?
Human capital refers to specific employee characteristics that can make a business successful. Traditionally, industrial-organizational psychologists have used the acronym “KSAO”, which stands for knowledge, skills, abilities, and other characteristics, to classify an employee’s work-related capabilities. When these KSAOs are useful for an organization’s overall economic outcomes, they are considered human capital.
Will Being an Average Performer Prevent Employee Victimization?
There has been a surge of interest in research on employee victimization in the last few years, both because the phenomenon is on the rise and because of the negative effects it has on both a personal and organizational level. Employee victimization has many causes and takes many forms, from aggressive incivility and bullying to general mistreatment.
Although previous studies investigated the situational and personal factors that precipitate victimization, little research has been focused on the behaviors that may lead to someone getting targeted.
Reaping the Benefits of Diversity Training
Researchers have long touted the benefits of diversity as a means to improve project productivity. But how can organizations achieve these beneficial outcomes using diversity training?
Creativity and Firm Performance
The impact of creativity on firm performance depends on the riskiness of a firm’s strategy, the firm’s size, and the ability of the firm’s employees to transform creative ideas into new products and services, according to a study by Yaping Gong, Jing Zhou, & Song Chang. When a company has a risky strategy, creativity leads to decreased firm performance. On the other hand, creativity leads to increased firm performance when the size of the company is small or when a company has a high capacity to transform creative ideas into novel products and services (a.k.a., absorptive capacity).
When Retailers Screw Up: How Can they Win Customers Back? (IO Psychology)
Retailers aren’t perfect. When they screw up, how do they try to get you to fall in love with them again?
Science to the rescue! In this study, researchers investigated customers’ spending after filing of a customer service complaint to a grocery retailer. Some customers received a coupon after complaining. Some didn’t. Some customers received a quick response from the retailer. Others received a slower response. Overall, they found that those who received the coupon actually spent less after filing their complaint, and those who received a quick response spent more in the time following.
Good Stats Make Us Uncomfortable (IO Psychology)
In striving for profitability, companies often rely on key indicators of organizational performance. Common indicators like sales growth, customer loyalty, and earnings per share often guide strategy decisions and resource allocation. But sometimes key indicators may not be that “key” after all. They may have little or no true connection to profitability.
Getting by Giving: Why Leaders Succeed by Serving (IO Psychology)
Topic: Leadership, Organizational Performance
Publication: Personnel Psychology
Article: CEO Servant Leadership: Exploring Executive Characteristics and Firm Performance
Authors: Peterson, S. J., Galvin, B. M., Lange, D.
Reviewer: Neil Morelli
Sometimes you have to give more to get more. The same is true when it comes to how CEOs lead their company and how well their company performs. According to Peterson and her colleagues, when the CEO (usually the most powerful and influential player in the organization) demonstrates servant leadership their firm becomes more successful.
Why Should Managers Care about Being Fair? (Human Resource Management)
Topic: Fairness, Organizational Justice, Organizational Performance
Publication: Journal of Applied Psychology
Article: Fairness at the collective level: A meta-analytic examination of the
consequences and boundary conditions of organizational justice climate.
Authors: Whitman, D. S., Caleo, S., Carpenter, N. C., Horner, M. T., and Bernerth, J.
Reviewer: Neil Morelli
Organizational justice, or how fairly an organization treats its workers, is a big deal to employees. To an individual employee, organizational justice helps determine his or her attitude about the job and as well as his or her productivity. But this perception doesn’t exist in a vacuum. Because this perception is often shared with co-workers and team members, called justice climate, Whitman and his co-authors conducted a meta-analysis to summarize and clarify how organizational justice climate exists at the team (unit) level and can influence team effectiveness.
Improve service climate to retain customers and increase profitability
Topic: Organizational Performance, Strategic HR
Publication: Human Resource Management (MAY/JUNE 2011)
Article: The service climate-firm performance chain: The role of customer retention
Authors: Towler, A., Lezotte, D. V., & Burke, M. J.
Reviewed by: Alexandra Rechlin
When an organization wants to improve customer retention and therefore its profitability, it will often turn to marketing. But could HR provide another option? In this study, Towler, Lezotte, and Burke (2011) tested a model of the way in which service climate (conceptualized and measured by concern for employees and concern for customers) affects profitability.
Increase generic human capital to increase unit-specific human capital
Topic: Organizational Performance, Talent Management, Strategic HR
Publication: Academy of Management Journal (APR 2011)
Article: Acquiring and developing human capital in service contexts: The interconnectedness of human capital resources
Authors: Ployhart, R. E., Van Iddekinge, C. H., & MacKenzie, W. I.
Reviewed by: Alexandra Rechlin
It is widely acknowledged that human capital is important, but does it matter whether the capital is generic (transferable to other organizations) or unit-specific (valuable to that particular work unit and not to others)? In this article, Ployhart, Van Iddekinge, and MacKenzie (2011) assessed both generic and unit-specific human capital in a large fast-food organization. They created and tested a model for how the two kinds of human capital relate to each other and to performance and effectiveness outcomes.