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Although there is substantial evidence that, on average, employee profit sharing improves company performance, little is known about the conditions under which it does so or the mechanisms through which it operates. This study identifies possible consequences and moderators of profit sharing, and then utilizes a data set from 108 Canadian profit-sharing firms to empirically examine them. Virtually all of the predicted consequences emerged, although to varying degrees. Three main factors moderated their emergence. Results were significantly more favorable in firms that had a high involvement managerial philosophy, that communicated extensively about profit sharing, and that allocated the profit-sharing bonus according to measures of individual employee performance.
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Reviews the book 'Human Resource Development and Information Technology: Making Global Connections,' edited by Catherine M. Sleezer, Tim L. Wentling and Roger L. Cude.
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The Oxford Handbook of Human Resource Management, edited by Peter Boxall, John Purcell, and Patrick Wright, is reviewed.
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This paper examines the impact of unions on employment growth in a longitudinal sample of Canadian workplaces collected during the period 2001-2006. To facilitate comparability with earlier Canadian results, we segment our analysis by industrial sector and establishment size, and find that unions suppress employment growth only in larger manufacturing establishments, and actually seem to promote employment growth among smaller service sector establishments. These results differ substantially from results found twenty-one years previously. We extend previous analysis by examining whether a declining union wage premium may have played a role in these results, and find suggestive evidence for such a contention.
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Using panel data from a large sample of Canadian establishments, the authors examine whether there is any link between adoption of an employee profit-sharing plan and subsequent employee earnings. Overall, growth in employee earnings during the five-year period subsequent to adoption of profit sharing was significantly higher in establishments that had adopted profit sharing, as compared with those establishments that had not done so. Employees in establishments that paid high wages before profit sharing adoption appeared to benefit more than employees in other establishments, although employees in other establishments did eventually benefit from profit sharing.
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Drawing on two waves of survey data collected from 250 Canadian firms in 2000 and 2004, this study examines union influence on the mix of compensation methods used by employers. As expected, firms with more unionization devoted a larger proportion of total compensation to indirect pay (also known as "employee benefits") than did firms with less unionization, a finding that held in both time periods. However, while more unionized firms devoted a smaller share of compensation to individual performance pay in 2000, this was not true in 2004. Also surprising, more unionized firms did not differ significantly from less unionized firms in their proportions of base pay, group performance pay, or organizational performance pay in either time period. The paper concludes that although unions may still have the power to influence some aspects of the wage bargain (i.e. the compensation mix), this power may be declining.