International Conference on Information Technology and Scientific Management (ICITSM 2010 E-BOOK)

Tianjin,China,12.20-12.21,2010

ISBN: 978-1-935068-40-2 Scientific Research Publishing, USA

E-Book 1078pp Pub. Date: December 2010

Category: Computer Science & Communications

Price: $220

Title: Research on Employee Selection in Enterprise Human Resources Management System
Source: International Conference on Information Technology and Scientific Management (ICITSM 2010 E-BOOK) (pp 273-275)
Author(s): Xiaomei Shi, School of Business, Tianjin Polytechnic University, Tianjin, P.R..China, 300387
Abstract: It is difficult to align incentives by contracting on output; aligning preferences via employee selection may provide a useful alternative. This study investigates this idea empirically using personnel and lending data from a financial services organization that implemented a highly decentralized business model. I exploit variation in this organization in whether or not employees are selected via channels that are likely to sort on the alignment of their preferences with organizational objectives. I find that employees selected through such channels are more likely to use decision-making authority in the granting and structuring of consumer loans than those who are not. Conditional on using decision-making authority, their decisions are also less risky ex post. These findings demonstrate employee selection as an important, but understudied, element of organizational control systems.
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