Issue Information

• Published date: 01 May 2017
• Date: 01 May 2017
• DOI: http://doi.org/10.1002/hrm.21818

MAY/JUNE 2017 VOLUME 56, NUMBER 3

ARTICLES

BOARD EFFECTIVENESS AND CEO PAY: BOARD INFORMATION PROCESSING

CAPACITY, MONITORING COMPLEXITY, ANDCEO PAY-FOR-PERFORMANCE

SENSITIVITY

JEONGIL SEO 373

We have developed an information processing theory of board effectiveness to examine board-

chief executive officers (CEOs) pay relations. We theorize that CEO pay reflects the information

processing context of boards. Boards have limited information processing capacity and therefore

prefer to use outcome-based CEO pay when they have difficulty in processing information

for monitoring their CEOs. Using a longitudinal sample of Standard and Poor’s (S&P’s) large-,

medium-, and small-cap manufacturing firms in the United States from 1998 through 2005, we

found support for our theory. Large boards and boards in less complex monitoring contexts tend

to link CEO pay less tightly to firm performance by providing less stock-based incentives, and the

tendency of large boards to decrease outcome-based CEO pay is even greater when boards are

not busy or when boards are in less complex monitoring contexts.

IS COMPETITION ENGAGING? EXAMINING THE INTERACTIVE EFFECTS

OF GOAL ORIENTATION AND COMPETITIVE WORK ENVIRONMENT ON

ENGAGEMENT

J. LOGAN JONES, WALTER D. DAVIS, ANDCHRISTOPHER H. THOMAS 389

Contemporary work environments are growing increasingly competitive. However, some

employees may “fit” with such environments better than others. This study examined how

the relationship between employees’ goal orientations (learning, proving, and avoidance) and

engagement is influenced by the competitive environment of their workplace. By investigating the

interactive effect of goal orientation and competitive work environment, this research expands

our understanding of factors leading to engagement. We tested our model using a sample of

345 working adults from a variety of organizations across several different industries. Results

indicate that learning goal orientation was positively related to engagement while avoidance

goal orientation was negatively related to engagement. Competitive work environment (CWE)

interacted with learning orientation and proving orientation to predict engagement. We conclude

with a discussion of the implications of our results for human resource management.

INDIVIDUALIZATION AND MARKETIZATION OF RESPONSIBILITY FOR

GENDER EQUALITY: THE CASE OF FEMALE MANAGERS IN CHINA

AHU TATLI, MUSTAFA BILGEHAN OZTURK, AND HONG SENG WOO 407

HUMAN RESOURCE MANAGEMENT

(continued)

Volume 56, Number 3 was mailed the week of May 22, 2017