Do you care about human capital? You should!

Topic: Organizational Performance, Talent Management, Strategic HR
Publication: Journal of Applied Psychology (MAY 2011)
Article: Does human capital matter? A meta-analysis of the relationship between human capital and firm performance
Authors: Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen, D. J.
Reviewed by: Alexandra Rechlin

It is often assumed that human capital is related to organizational performance, but the research literature provides mixed support for that assumption. In this article, the authors conducted a meta-analysis of 66 studies to clarify the seemingly contradictory research on the relationship between human capital and firm performance.

The authors found that human capital was positively related to firm performance, but that the relationship was moderated by the type of measure used and the type of human capital. The relationship was stronger when performance was measured with operational performance measures (e.g., customer service satisfaction or innovation), as opposed to global performance measures (e.g., returns on assets or returns on sales). The relationship between human capital and performance was also stronger when the human capital was firm-specific as opposed to being general human capital.

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Effective leadership: I was born (and made) this way!

Topic: Leadership, Human Resource Management
Publication: Journal of Occupational and Organizational Psychology (JUN 2011)
Article: Great man or great myth? A quantitative review of the relationship between individual differences and leader effectiveness
Authors: Hoffman, B. J., Woehr, D. J., Maldagen-Youngjohn, R., Lyons, B. D.
Reviewed by: Alexandra Rechlin

How many times have you heard or considered the following question: Are leaders born or made? The general consensus is that leaders are both born and made, but which do you think is more influential? This article delves into that issue by comparing many individual differences that could potentially predict leadership effectiveness.

In this meta-analysis, the authors compared 25 individual difference variables by looking at their relationships with leadership effectiveness criteria. Fourteen of the 25 variables had not been reviewed in previous meta-analyses. The individual difference variables were categorized into two groups: trait-like individual differences and state-like individual differences. Trait-like individual differences are those that are more stable, such as personality and intelligence. State-like individual differences are more temporary and can be learned; knowledge and skills are good examples.

The authors found that overall, trait-like and state-like individual differences were fairly similar in their prediction of leadership effectiveness. In other words, according to this meta-analysis, leaders are both born and made to a fairly equal extent. Of the trait-like variables, the best predictors of leadership effectiveness were achievement motivation, energy, dominance, honesty/integrity, self-confidence, creativity, and charisma. Of the state-like variables, the best predictors were interpersonal skills, oral communication, written communication, management skills, problem-solving skills, and decision-making.

Based on this meta-analysis, it appears equally important to pick leaders with certain traits and to develop those leaders by increasing their knowledge and skills.

Hoffman, B. J., Woehr, D. J., Maldagen-Youngjohn, R., & Lyons, B. D. (2011). Great man or great myth? A quantitative review of the relationship between individual differences and leader effectiveness. Journal of Occupational and Organizational Psychology, 84, 347-381. doi: 10.1348/096317909X485207

human resource management,organizational industrial psychology, organizational management

Getting Emotional at Work

Topic: Stress, Change Management
Publication: Journal of Organizational Behavior (MAY 2011)
Article: Stability, change, and the stability of change in daily workplace affect
Authors: Beal, D. J., Ghandour, L.
Reviewed by: Larry Martinez

Have you ever noticed how some people are just more emotionally volatile than others?  A coworker that comes to work happy as a clam one day and down in the dumps the next?  Researchers call this affect spin, which refers to an individual characteristic that reflects the extent to which people experience more than one emotion over time.  For example, in the picture above, each point represents one’s levels of positive and negative affect of any particular day (so four days in total).  So, since the points fall all on different parts of the circumplex, the figure represents someone with high affect spin, or several varying emotions on different days.  Beal and Ghandour (2001) examined this concept with positive and negative emotions and task motivation in the midst of a major natural disaster: Hurricane Ike.

These researchers examined several different aspects of emotional reactions.  First, they found support for a weekly cyclical cycle such that emotions are most positive during the weekend and most negative around Wednesday.  Also, for people who were high in affect spin there was a relationship between task motivation and positive emotions and motivation on one day influenced positive emotions next day.  This was not the case for those low in affect spin.  Finally, those high (but not those low) in affect spin experienced more negative emotions after Hurricane Ike than before.

So, the results show that most employees experience a predictable pattern of emotions throughout the week.  In addition, some employees are more likely to have stable variability in the extent to which they oscillate between emotions over time, over and above the weekly cyclical pattern.  Finally, some employees will recover emotionally from catastrophes than others.  This information can inform workplace human resource management decisions.

 

Beal, D. J., & Ghandour, L. (2011). Stability, change, and the stability of change in daily workplace affect. Journal of Organizational Behavior. 32, 526-546.

human resource management,organizational industrial psychology, organizational management