EC 8

Question 1

Employee selection – Campbell (2012)

Answer 1

Employees that better fit with the organizational design are more likely to execute the firm strategy effectively

Question 2

Employee selection – Dierynck & van Pelt (2021)

Answer 2

Including discretionary adjustment in a performance-based contract generates a sorting effect on employee identification because it will increase (decrease) the preference for a performance-based contract of those with strong (weak) identification.

Question 3

Employee selection – Kachelmeier & Williamson (2010)

Answer 3

• Employment contracts that explicitly value creativity are more likely to attract more creative employees
• The sorting effect on creativity outcomes is however linked to early creativity.
• Over time, employees that self-select into a creativity-weighted contract do as good as employees that self-select into a quantity-oriented contract