- 01 Nov 2022
- Research & Ideas
A Penny for Your Thoughts? For Big-Picture Ideas, the Right Pay Structure Matters
Employment contracts that try to squeeze more productivity out of workers can thwart innovative thinking, says research from Susanna Gallani. She offers advice to help companies align incentives with expectations.
- 22 May 2020
- In Practice
Post-COVID Health Care: More Screens, Less Red Tape?
The coronavirus pandemic might lead to major changes in patient care, physician compensation, and regulation. Experts from Harvard Business School's Health Care Initiative share their predictions. Open for comment; 0 Comments.
- 03 Mar 2020
- Working Paper Summaries
Nominal and Opportunity Effects of Managerial Discretion
This study of field data from a Chinese manufacturing company explores the consequences of subjective performance evaluations leading to bonuses and penalties. Results may help practitioners improve the effectiveness of incentive systems.
- 25 Nov 2019
- Working Paper Summaries
The Effect of Systems of Management Controls on Misreporting
This study provides insights for designing effective management control systems. Managers must select their individual management control practices with care, craft mission statements to convey clear messages that drive organizational alignment with the firm’s overall goals, and consider the effects of interaction between components of their system of controls.
- 05 Nov 2019
- Cold Call Podcast
Can the Robin Hood Army Grow with Zero Financial Resources?
Over just a few years, volunteer-based Robin Hood Army had served meals to more than 9 million people around the world. Susanna Gallani discusses with founder Neel Ghose the challenges of growing while being a zero-funds organization. Open for comment; 0 Comments.
- 26 Mar 2018
- Research & Ideas
To Motivate Employees, Give an Unexpected Bonus (or Penalty)
Susanna Gallani finds that employees can be more motivated by the anticipation of a reward or punishment than the actual payoff. Open for comment; 0 Comments.
- 13 Feb 2018
- Working Paper Summaries
In Search of Organizational Alignment Using a 360° Assessment System: Evidence from a Retail Chain
This study assesses a values-based 360° performance measurement system implemented at an Indian retail chain that led to improvements on financial performance, but not on desired non-financial dimensions.
- 06 Feb 2018
- Working Paper Summaries
Subjectivity in Tournaments: Implicit Rewards and Penalties and Subsequent Performance
Analyzing data from a Chinese manufacturing company, this study explores side effects of subjective performance evaluations in a setting where workers are rewarded based on performance rankings and subject to both rewards and penalties. Among other contributions the paper highlights factors that could impact the overall effectiveness of incentive systems.
- 22 Aug 2017
- First Look
First Look at New Research and Ideas, August 23
You want to publish my salary where? ... How to punch up your sales training ... Young leadership confronts a toxic culture.
- 23 Mar 2017
- Cold Call Podcast
Cost-cutting Leads to Turbulence in the Airline Industry
When a business known for delivering an exemplary customer experience faces cutbacks, what services get chopped? Assistant Professor Susanna Gallani discusses a recent case study about an airline that looks not just to survive a downturn but emerge stronger. Open for comment; 0 Comments.
- 22 Feb 2017
- Working Paper Summaries
Incentives, Peer Pressure, and Behavior Persistence
Organizations often create initiatives to encourage adoption of new behaviors, or to stimulate performance improvements from existing practices. This research explores whether and how incentivized behaviors at a California hospital persist beyond the duration of the initiative.
- 02 Aug 2016
- First Look
August 2, 2016
Can rituals decrease performance anxiety? ... How to attract attention on the internet ... The risk of eliminating what you are known for.
- 18 Nov 2015
- Research & Ideas
Who Really Determines CEO Salary Packages?
Every CEO is different, as is every company. So why does one executive compensation package tend to look just like another? The answer lies in the prevalence of interlocking directorates and the use of compensation consultants, according to research by Susanna Gallani. Open for comment; 0 Comments.
- 26 Oct 2015
- Working Paper Summaries
Applications of Fractional Response Model to the Study of Bounded Dependent Variables in Accounting Research
This paper discusses key features of the fractional response mode developed by economists Leslie E. Papke and Jeffrey M. Wooldridge.
- 02 Oct 2015
- Working Paper Summaries
Is Mandatory Nonfinancial Performance Measurement Beneficial?
Susanna Gallani, Takehisa Kajiwara, and Ranjani Krishnan examine the effect of regulation requiring mandatory measurement and peer disclosure of nonfinancial performance information such as customer satisfaction in the hospital industry.
- 08 Sep 2015
- Working Paper Summaries
Through the Grapevine: Network Effects on the Design of Executive Compensation Contracts
Designing the compensation package for a CEO is a complex task with many variables and uncertainties. While in principle the structure of executive compensation should be directed to aligning the goals of the executive with the strategic goals of the firm, the adoption of common models of compensation may tilt the compensation structure away from this alignment. It is thus important to identify the drivers of compensation similarity across firms. In this paper the author identifies such drivers – above and beyond known economic and governance characteristics of the firm – by providing evidence that firms connected through board networks or hiring common compensation consultants exhibit greater similarity in the structure of CEO compensation. At the same time, however, different networks influence different aspects of the compensation design.
8 Trends to Watch in 2023
Quiet quitting. Inflation. The economy. This year could bring challenges for executives and entrepreneurs, but there might also be opportunities for focused leaders to gain advantage, say Harvard Business School faculty members.