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Ratio Working Paper No. 337 Wage Setting as a Discovery Process

PublikationWorking paper
Charlotta Stern, collective agreements, HR professionals, intrapreneurship, local knowledge, performance pay, wage setting
Ratio Working Paper No. 337
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Sammanfattning

Local wage setting is when companies in their collective agreements with unions formulate local rules for determining wage increase criteria, in contrast to central wage setting where the industry agreement specify the rules for all companies covered. HR-managers should promote local wage practices more than they currently do. I identify reasons behind HR-managers (and unions) skepticism towards local wage practices and go on to argue that in the end a local wage practice will be better organizational-practice because it will develop organization specific knowledge and this will promote discovery and develop organizational integrity. Hence, HR-managers should embrace local wage practices because it is good for the organization, although it means more work and higher demands on the managers themselves. The social outcome of local wage practices is that firm-specific explorations in HR-management schemes is HR-intrapreneurship which in combination with competition is likely to foster inter-organizational learning and stronger firms.

Stern, C. (2020). Wage Setting as a Discovery Process – Why local is superior to central even if one is skeptical towards performance based pay. Ratio Working Paper No. 337. Stockholm: Ratio.


Liknande innehåll

Working Paper No. 334 Stockholm City’s Elderly Care and Covid19: Interview with Barbro Karlsson
Working paperPublikation
Stern, L. & Klein, D. B.
Publiceringsår

2020

Publicerat i

Ratio Working Paper

Sammanfattning

Upwards of 70 percent of the Covid19 death toll in Sweden has been people in elderly care services (as of mid-May 2020). We summarize the Covid19 tragedy in elderly care in Sweden, particularly in the City of Stockholm. We explain the institutional structure of elderly care administration and service provision. Those who died of Covid19 in Stockholm’s nursing homes had a life-remaining median somewhere in the range of 5 to 9 months. Having contextualized the Covid19 problem in City of Stockholm, we present an interview of Barbro Karlsson, who works at the administrative heart of the Stockholm elderly care system. Her institutional knowledge and sentiment offer great insight into the concrete problems and challenges. There are really two sides to the elderly care Covid19 challenge: The vulnerability and frailty of those in nursing homes and the problem of nosocomial infection—that is, infection caused by contact with others involved in the elderly care experience. The problem calls for targeted solutions by those close to the vulnerable individuals.

Working Paper No. 333: Balancing employment protection and what’s good for the company
Working paperPublikation
Stern, C. & Weidenstedt, L.
Publiceringsår

2020

Publicerat i

Ratio Working Paper

Sammanfattning

Like most developed countries, Sweden has institutionalized employment protection legislation, called LAS. LAS is interesting theoretically because parts of it are semi-coercive. The semi-coerciveness makes it possible for firms and unions under collective agreements to negotiate departures from the law, for instance regarding seniority rules and terminations due to employees’ fit and/or misconduct. In this sense, the law is more flexible than the legal text suggests. The present study explores how the semi-coercive institution of employment protection is perceived and implemented by managers of smaller manufacturing companies. The results suggest that managers support the idea of employment protection rules in principle but face a difficult balancing act in dealing with LAS. Thus, the institutional legitimacy of the law is low. LAS ends up producing local cultures of hypocrisy and pretense. The paper gives insights into how institutions aimed at producing good moral behavior sometimes end up producing the opposite.

Elite mobility among college graduated men in Sweden: Skills, personality and family ties
Artikel (med peer review)Publikation
Bihagen, E., Nermo, M., Stern; C., & Åberg, Y.
Publiceringsår

2017

Publicerat i
Sammanfattning

Using Swedish registry data, we study the chances of mobility into the Swedish labour market elite for men who graduated in the years 1985−2005. The elite is defined as top earners within mid- and large sized firms and within the public sector organisations (henceforth, we use organisation for both firms and public organisations). Using discrete time event history models, we study the incidence of elite entry in terms of external recruitment and internal promotion. The choice of field of study and of college or university are important, as are personality and, to a limited extent, cognitive ability. What is most striking is that having kin in elite positions increases the chance of elite entry in general, and having parents in top positions in the same organisation increases the likelihood of internal promotion. In sum, elite entry among college-educated males is associated with a diversity of factors, suggesting that complex explanations for labour market success should be considered, where skills, personality, and family ties all seem to matter.

Keywords: Elite transitions, mobility, personality, cognitive ability, kinship ties, field of study

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