Management Human Capital Resource Pipelines
by
Anthony Nyberg, Dhuha Abdulsalam, Ingo Weller
  • LAST REVIEWED: 25 March 2021
  • LAST MODIFIED: 29 May 2019
  • DOI: 10.1093/obo/9780199846740-0111

Introduction

The “Human Capital Resource (HCR) pipeline” is an organizational capacity that involves the internal, external, horizontal, and vertical flow of human capital resources in and out of an organization. The goal of an HCR pipeline is to ensure that the appropriate quality and quantity of HCRs are in place for the ongoing functioning of organizations. In turn, managing the HCR pipeline is the organizational capability to acquire, develop, and align individual or unit-level capacities to match unit-relevant purposes as they arise. It is necessary for organizations to think of managing the HCR pipeline as an ongoing process that involves the horizontal alignment, or congruence, of several human resources (HR) functions. This includes Staffing, through attraction, Selection, and Attrition. Once talent is in place, then it must be developed through Performance Appraisal, Succession Planning, and Training. It is also essential to align that talent with the organization’s objectives. This involves continuously matching talent with the appropriate role, including focusing on Internal Mobility, Fit, and Flexibility. Compensation also affects the HCR pipeline through Sorting (e.g., who is attracted to the pipeline) and its effects on how the HCR pipeline coordinates; however, heretofore, compensation has not been explicitly tied to the HCR pipeline. The HCR pipeline may also need to focus extra and different attention on Stars and executives or other employees who disproportionately contribute to organizational performance. The general idea of considering the HCR pipeline has been growing in importance, including the creation of a special interest group at the Strategic Management Society, and two journal special issues dedicated to the topic. Therefore, the concept of the HCR pipeline is an extension of this literature that highlights the dynamic nature of HCR that has thus far been looked at in a static lens.

Human Capital and the Human Capital Resource

The human capital resource (HCR) is defined as the “individual or unit-level capacities based on individual KSAOs [knowledge, skills, abilities, and other characteristics] that are accessible for unit-relevant purposes” (Ployhart, et al. 2014, p. 374). Such pipelines necessarily begin with individual-level human capital, which is an attribute of individuals (see Becker 1964), composed of a person’s KSAOs. Without referring to the HCR, Hitt, et al. 2001 examines the HCR influence on law firm effectiveness. Although the evidence that the HCR can lead to organizational performance differentiation has continued to accumulate (see Crook, et al. 2011; Nyberg, et al. 2013), the actual term “HCR” is relatively new (see Ployhart, et al. 2014) and flows from the recognition that the aggregation of talent (i.e., the emergence of KSAOs in a collective construct) is rarely a simple sum of individual human capital (Ployhart and Moliterno 2011). By attending to what is organizationally relevant, rather than exclusively focusing on the individual, this research draws attention to the role of humans as a competitive asset in a variety of factor and product markets, such as the labor market (a factor market) and the consumer goods market (a product market).

  • Becker, Gary S. Human Capital. New York: Columbia University Press, 1964.

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    Many iterations of this book have followed this seminal work on human capital. Becker lays out arguments for how individuals can invest (e.g., increased education) to make themselves more valuable.

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    • Crook, T. Russell, Samuel Y. Todd, James G. Combs, David J. Woehr, and David J. Ketchen Jr. “Does Human Capital Matter? A Meta-analysis of the Relationship between Human Capital and Firm Performance.” Journal of Applied Psychology 96.3 (2011): 443–456.

      DOI: 10.1037/a0022147Save Citation »Export Citation » Share Citation »

      Meta-analyses of sixty-six studies that estimated the relationship between human capital and firm performance. Estimates a correlation between human capital measures and firm performance of 0.17, and explains that the relationship is strongest when the human capital is firm specific and when operational (rather than financial) firm performance measures are used.

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      • Hitt, Michael A., Leonard Bierman, Katsuhiko Shimizu, and Rahul Kochhar. “Direct and Moderating Effects of Human Capital on Strategy and Performance in Professional Service Firms: A Resource-Based Perspective.” Academy of Management Journal 44.1 (2001): 13–28.

        DOI: 10.2307/3069334Save Citation »Export Citation » Share Citation »

        Uses law firms to show that aggregated human capital (i.e., HCR) can affect firm performance in terms of both outcomes and costs.

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        • Lazear, Edward P. “Firm-Specific Human Capital: A Skill-Weights Approach.” Journal of Political Economy 117.5 (2009): 914–940.

          DOI: 10.1086/648671Save Citation »Export Citation » Share Citation »

          Argues that all human capital is general, but that combinations (or bundles) of particular human capital components and their use in heterogeneous firms are firm specific. Generalizes the classical dichotomy of general and firm-specific human capital and aligns human capital theory with matching and Talent Management approaches.

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          • Nyberg, Anthony J., Thomas P. Moliterno, Donald Hale Jr., and David P. Lepak. “Resource-Based Perspectives on Unit-Level Human Capital: A Review and Integration.” Journal of Management 40.1 (2013): 316–346.

            DOI: 10.1177/0149206312458703Save Citation »Export Citation » Share Citation »

            Reviews 156 articles that attempt to use human capital as a mechanism for identifying unit-level performance advantages in a resource-based theoretical framework. It shows the similarities between strategy research, particularly regarding micro-foundations, and strategic human resources research, and provides suggestions for how these two fields can move the HCR field ahead.

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            • Ployhart, Robert E., and Thomas P. Moliterno. “Emergence of the Human Capital Resource: A Multilevel Model.” Academy of Management Review 36.1 (2011): 127–150.

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              Combines research and conceptual consideration from psychology and strategy to argue that the use of the term “human capital” at both individual and collective levels leads to ambiguity and confusion across research domains. It coins the term “human capital resources” and argues that this is the emergence of an individual’s knowledge, skills, abilities, and other characteristics.

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              • Ployhart, Robert E., Anthony J. Nyberg, Greg Reilly, and Mark A. Maltarich. “Human Capital Is Dead; Long Live Human Capital Resources!” Journal of Management 40.2 (2014): 371–398.

                DOI: 10.1177/0149206313512152Save Citation »Export Citation » Share Citation »

                A multidisciplinary framework that clarifies the HCR construct (structure, function, level, and combinations) in an attempt to create a common language among disciplines. The article also clarifies the difference among individual differences, KSAOs, human capital, human capital resources, and strategic human capital resources.

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                Talent Management

                Talent management is a critical component of a general employee management strategy, a strategy designed to use humans to compete (Cappelli 2000). Scholars continue to focus on studying the nature of talent management as well as focusing on contemporary issues, such as talent in teams, talent flows, and investigating talent in different contexts (Collings, et al. 2017). It is often extremely challenging, however, to forecast future HCR demands because such forecasts require understanding the organization’s response to unpredictable events (Bonet, et al. 2013; Cappelli and Keller 2014).

                • Bonet, Rocio, Peter Cappelli, and Monika Hamori. “Labor Market Intermediaries and the New Paradigm for Human Resources.” Academy of Management Annals 7.1 (2013): 341–392.

                  DOI: 10.1080/19416520.2013.774213Save Citation »Export Citation » Share Citation »

                  Highlights the roles of several labor market intermediaries and matchmakers. In this new paradigm for HRM, many talent management and HCR pipeline functions are outsourced in an “on-demand” manner.

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                  • Cappelli, Peter. “A Market-Driven Approach to Retaining Talent.” Harvard Business Review 78.1 (January–February 2000): 103–111.

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                    Extends the argument that the labor market has dramatically changed over time and that it’s important to recognize the difficulty of retaining human capital. The keys to talent retention involves a holistic model of retention, which must include Compensation, job customization, social ties, and other forms of job and organizational embeddedness.

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                    • Cappelli, Peter, and J. R. Keller. “Talent Management: Conceptual Approaches and Practical Challenges.” Annual Review of Organizational Psychology and Organizational Behavior 1 (2014): 305–331.

                      DOI: 10.1146/annurev-orgpsych-031413-091314Save Citation »Export Citation » Share Citation »

                      Reviews the talent management literature across research disciplines, then defines talent management and provides guidelines for how to think about talent management in the modern, dynamic labor environment.

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                      • Collings, David G., Kamel Mellahi, and Wayne F. Cascio, eds. The Oxford Handbook of Talent Management. Oxford: Oxford University Press, 2017.

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                        Leading scholars contribute to the handbook’s twenty-eight chapters, providing information and insights on the historical context of talent management and future prospects, nature of talent, talent in teams, and talent flows as well as the different contexts that affect talent management.

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                        Organizational Strategy and the Human Capital Resource Pipeline

                        Trying to anticipate the HCR pipeline requirements necessarily demands that those in charge of the process—specifically those trying to create strong HCR pipelines—understand the current strategy as well as the likely direction and future needs of the organization and its environment or context (Cappelli 2008). Understanding the organization’s strategy is only one step in the process. Leaders attempting to optimize HCR pipelines must also think strategically in terms of aligning talent and needs (Hausknecht and Wright 2012), recognizing complementarities that might exist between different pipelines in the system (Brymer, et al. 2018), and making investments that enhance firm-level capabilities (Chatterjee 2017). To date, however, this research has not adequately drawn on the myriad of research from personnel psychology that could inform the achievement of these strategic objectives (Ployhart 2012).

                        • Brymer, Rhett Andrew, Clint Chadwick, Aaron Hill, and Janice Molloy. “Pipelines and Their Portfolios: A More Holistic View of Human Capital Heterogeneity via Firm-Wide Employee Sourcing.” Academy of Management Perspectives (2018).

                          DOI: 10.5465/amp.2016.0071Save Citation »Export Citation » Share Citation »

                          Creates a theoretically driven typology of talent pipelines explaining their function, attributes, and implications as well as the complementarities between different pipelines.

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                          • Cappelli, Peter. Talent on Demand: Managing Talent in an Uncertain Age. Boston: Harvard Business School, 2008.

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                            A contemporary perspective on Talent Management emphasizing the importance of understanding and catering to the organization’s demands and matching supply to demand. Drawing from operations management research, Cappelli presents a “just-in-time” framework to serve organizations that cannot forecast constantly changing business environments and challenges traditional investments in talent.

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                            • Chatterjee, Joydeep. “Strategy, Human Capital Investments, Business‐Domain Capabilities, and Performance: A Study in the Global Software Services Industry.” Strategic Management Journal 38.3 (2017): 588–608.

                              DOI: 10.1002/smj.2505Save Citation »Export Citation » Share Citation »

                              Emphasizes the implications of capability-seeking general human capital investments as the empirical study of the IT industry finds that deliberate investments in improving general human capital can help firms develop superior capabilities (technological and business-domain capabilities) and maintain high profits.

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                              • Hausknecht, John P., and P. M. Wright. “Organizational Strategy and Staffing.” In The Oxford Handbook of Personnel Assessment and Selection. Edited by Neal Schmitt, 147–155. New York: Oxford University Press, 2012.

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                                Using a Fit and Flexibility framework, the authors review and discuss the need for organizational strategy to incorporate the role of strategically aligning human capital to achieve economic advantage. It also discusses the need to achieve Talent Matching while retaining talent flexibility.

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                                • Ployhart, Robert E. “Personnel Selection: Ensuring Sustainable Organizational Effectiveness through the Acquisition of Human Capital.” In The Oxford Handbook of Organizational Psychology. Edited by Steve W. J. Kozlowski, 221–246. Oxford: Oxford University Press, 2012.

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                                  Argues that while there is a rich history of research on personnel Selection practices and techniques, this research falls short of achieving organization-level objectives. Proposes that scholars need to take a broader and more contextualized orientation to show the organizational benefits of selection procedures.

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                                  Staffing

                                  In the attraction-selection-attrition (ASA) model, Schneider 1987 proposes that individuals are attracted to organizations whose members are similar to themselves in terms of personality traits, attitudes, and values. Holland 1997, a highly cited work on vocational choices, shows that people are attracted to careers as a function of their personalities, values, needs, and interests. “Staffing is broadly defined as the process of attracting, selecting, and retaining competent individuals to achieve organizational goals” (Ployhart 2006, p. 868). Ployhart, et al. 2017 synthesizes one hundred years of staffing and selection research in this recently published review. The use of HCR pipelines helps companies address a pressing staffing challenge in talent acquisition today, which includes labor shortages, applicant scarcity, workforce diversity, and job-hopping, as addressed in the review Ployhart 2006. Anticipating future needs and finding the best practices or the best mix of practices for filling dynamic organizational needs is in itself a competitive differentiator. As Ployhart 2012 states: “the vision of personnel Selection should be to ensure sustainable organizational effectiveness through the acquisition of human capital” (p. 21). The HCR pipeline is an organizational capability to fill key positions without having to restart the selection process. This saves both time and resources, and it is likely to affect organizational outcomes; thus, the HCR pipeline creates an opportunity to achieve competitive advantage.

                                  • Holland, John L. Making Vocational Choices: A Theory of Vocational Personalities and Work Environments. 3d ed. Odessa, FL: PAR, 1997.

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                                    Suggests that people choose jobs according to their personalities, values, needs, and interests. The RIASEC model is presented, which dictates that people can be categorized into six dimensions that map onto certain occupations: realistic (conforming), investigative (analytic), artistic (open), social (gregarious), enterprising (ambitious), and conventional (obedient).

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                                    • Ployhart, Robert E. “Staffing in the 21st Century: New Challenges and Strategic Opportunities.” Journal of Management 32.6 (2006): 868–897.

                                      DOI: 10.1177/0149206306293625Save Citation »Export Citation » Share Citation »

                                      A critical review of staffing literature and practices is presented. Research-practice gaps are identified, and multilevel perspectives are encouraged that tie staffing practices to organizational outcomes.

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                                      • Ployhart, Robert E. “Personnel Selection: Ensuring Sustainable Organizational Effectiveness through the Acquisition of Human Capital.” In The Oxford Handbook of Organizational Psychology. Edited by Steve W. J. Kozlowski, 221–246. Oxford: Oxford University Press, 2012.

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                                        Provides a concise yet critical review of both historical and contemporary Selection research and practices. Both models and methods are discussed and a future research agenda is presented that highlights several fruitful avenues in the personnel selection literature, including the integration of organization-level strategy, as well as studying the organization-level impact and sustainability of selection practices.

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                                        • Ployhart, Robert E., Neal Schmitt, and Nancy T. Tippins. “Solving the Supreme Problem: 100 Years of Selection and Recruitment at the Journal of Applied Psychology.” Journal of Applied Psychology 102.3 (2017): 291–304.

                                          DOI: 10.1037/apl0000081Save Citation »Export Citation » Share Citation »

                                          Reviews one hundred years of research on recruitment and selection published in the Journal of Applied Psychology.

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                                          • Schneider, Benjamin. “The People Make the Place.” Personnel Psychology 40.3 (1987): 437–453.

                                            DOI: 10.1111/j.1744-6570.1987.tb00609.xSave Citation »Export Citation » Share Citation »

                                            The attraction-selection-attrition framework proposes that organizations are functions of the kinds of people they contain. Individuals are attracted to organizations whose members are similar to themselves. Organizations, in turn, are more likely to select people who share common values and attributes. Over time, employees who do not fit in leave.

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                                            Attraction and Recruiting

                                            Two early-21st-century meta-analyses are relevant for attraction and recruiting. Uggerslev, et al. 2012 examines seven categories of recruiting predictors across multiple recruitment stages on the attraction that applicants have toward an organization. Swider, et al. 2015 examines individual differences relevant to applicant attraction to organizations. Recruiting is the effort to identify, attract, and influence the job choices of applicants, as discussed in Ployhart 2006. Developing an HCR pipeline requires a shift from reactive recruiting to proactive recruiting. Having a recruiting pipeline based on interorganizational relationships that connect to the main HCR pipeline can improve the candidate experience and employer brand, as explained in Brymer, et al. 2014. This enables firms to cope with talent acquisition challenges, including applicant scarcity and person-organization Fit. Ployhart 2004 and Ployhart 2006 review this topic. Phillips and Gully 2015 presents a multilevel recruitment model that advances our understanding of strategic recruitment through introducing horizontal and vertical strategic recruitment. These strategic recruitment types determine the flow direction of the individuals within the HCR pipeline.

                                            • Brymer, Rhett A., Janice C. Molloy, and Brett A. Gilbert. “Human Capital Pipelines: Competitive Implications of Repeated Interorganizational Hiring.” Journal of Management 40.2 (2014): 483–508.

                                              DOI: 10.1177/0149206313516797Save Citation »Export Citation » Share Citation »

                                              Suggests that firms can establish interorganizational relationships to provide access to a pipeline of talent. This enables firms to cope with talent acquisition challenges, including applicant scarcity and person-organization Fit.

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                                              • Phillips, Jean M., and Stanley M. Gully. “Multilevel and Strategic Recruiting: Where Have We Been, Where Can We Go from Here?” Journal of Management 41.5 (2015): 1416–1445.

                                                DOI: 10.1177/0149206315582248Save Citation »Export Citation » Share Citation »

                                                A review of the strategic recruitment literature leading to the presentation of a multilevel model that highlights a variety of opportunities for future recruitment research relevant to resource-based theory, strategic human resource management, human capital, and levels of analysis. Two new concepts, vertical and horizontal recruiting, are also introduced.

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                                                • Ployhart, Robert E. “Organizational Staffing: A Multilevel Review, Synthesis, and Model.” In Research in Personnel and Human Resources Management. Vol. 23. Edited by Joseph J. Martocchio, 121–176. Amsterdam: Elsevier, 2004.

                                                  DOI: 10.1016/S0742-7301(04)23003-1Save Citation »Export Citation » Share Citation »

                                                  Provides a review of dominant Staffing theories and integrates micro-, meso-, and macro- literatures to build a multilevel model of staffing, which, in turn, illustrates how staffing contributes to organizational outcomes and competitive advantage.

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                                                  • Ployhart, Robert E. “Staffing in the 21st Century: New Challenges and Strategic Opportunities.” Journal of Management 32.6 (2006): 868–897.

                                                    DOI: 10.1177/0149206306293625Save Citation »Export Citation » Share Citation »

                                                    Reviews staffing literature and identifies gaps in the staffing literature, advocating that staffing scholars move toward emphasizing the strategic value of staffing by adopting a multilevel lens through which to relate to and solve the problems of modern organizations.

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                                                    • Swider, Brian W., Ryan D. Zimmerman, Steven D. Charlier, and Abigail J. Pierotti. “Deep-Level and Surface-Level Individual Differences and Applicant Attraction to Organizations: A Meta-analysis.” Journal of Vocational Behavior 88 (2015): 73–83.

                                                      DOI: 10.1016/j.jvb.2015.01.005Save Citation »Export Citation » Share Citation »

                                                      Examines deep-level and surface-level characteristics with regard to applicant attraction. Results from analyzing eighty-five articles indicated that several applicant individual differences are related to an applicant’s attraction to the organization.

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                                                      • Uggerslev, K. L., N. E. Fassina, and David Kraichy. “Recruiting through the Stages: A Meta‐analytic Test of Predictors of Applicant Attraction at Different Stages of the Recruiting Process.” Personnel Psychology 65.3 (2012): 597–660.

                                                        DOI: 10.1111/j.1744-6570.2012.01254.xSave Citation »Export Citation » Share Citation »

                                                        Based on 232 studies, the authors use meta-analysis methods to analyze the relationship between seven categories of recruiting predictors across multiple recruitment stages and applicant attraction to an organization.

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                                                        Selection

                                                        Schmitt 2012 presents a comprehensive handbook on selection. Other personnel selection research has focused on predicting individual criteria such as job performance. Ployhart 2012 presents two overarching findings of the selection literature: (1) cognitive ability has been identified as the strongest predictor of job performance (with the potential of racial and ethnic subgroup differences), and (2) conscientiousness tends to stand out as the strongest personality predictor across most jobs. The issue of Fit has also been an important construct in the selection process and is emphasized in the seminal attraction-selection-attrition model in Schneider 1987 (cited under Staffing), which states that decision makers select candidates who fit the organization’s values or have knowledge, skills, and abilities similar to that of existing employees. Terpstra and Rozell 1993 is a highly cited study used to support the organizational-level impact of selection as opposed to the traditional individual-level effect, followed by Kim and Ployhart 2018, which empirically investigates how selection practices relate to firm performance under different competitive environments Ployhart 2004 incorporates a novel multilevel framework into its argument that personal selection can offer strategic value relevant to firm performance and create opportunities for an organization’s sustained competitive advantage, while Elfenbein and Sterling 2018 investigates the conditions under which this happens. DeOrtentiis, et al. 2018 in turn, empirically shows the multilevel effects of personnel selection in analyzing individual and unit-level outcomes of internal versus external managers. Ryan and Ployhart 2014 reviews developments, advances, gaps, and trends in selection systems. Wang and Zatzick 2019 highlights the dynamic nature of staffing and selection in studying the effect of hiring rate changes and hiring rate dispersion on organizational innovation.

                                                        • DeOrtentiis, Philip S., Robert E. Ployhart, Chad H. Van Iddekinge, and Tom D. Heetderks. “Build or Buy? The Individual and Unit-Level Performance of Internally versus Externally Selected Managers over Time.” Journal of Applied Psychology 103.8 (2018): 916–928.

                                                          DOI: 10.1037/apl0000312Save Citation »Export Citation » Share Citation »

                                                          Examines the differences between internally and externally hired managers in the retail industry on individual- and unit-level outcomes. Analysis of data shows internally hired managers have higher levels of individual job performance and lower starting salaries than externally hired managers. At the unit level, the advantage of external versus internal hires depended on the type of outcome studied.

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                                                          • Elfenbein, Daniel W., and Adina D. Sterling. “(When) Is Hiring Strategic? Human Capital Acquisition in the Age of Algorithms.” Strategy Science 3.4 (2018): 668–682.

                                                            DOI: 10.1287/stsc.2018.0072Save Citation »Export Citation » Share Citation »

                                                            Conceptually examines the mechanisms and conditions that make hiring strategic versus routine.

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                                                            • Kim, Youngsang, and Robert E. Ployhart. “The Strategic Value of Selection Practices: Antecedents and Consequences of Firm-Level Selection Practice Usage.” Academy of Management Journal 61.1 (2018): 46–66.

                                                              DOI: 10.5465/amj.2015.0811Save Citation »Export Citation » Share Citation »

                                                              Uses a sample of 413 firms within multiple industries to examine different external (industry characteristics) and internal (prior firm performance and collective turnover) factors that may influence the use of selection practices, and whether selection practices relate to firm performance under different competitive environments.

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                                                              • Ployhart, Robert E. “Organizational Staffing: A Multilevel Review, Synthesis, and Model.” In Research in Personnel and Human Resources Management. Vol. 23. Edited by Joseph J. Martocchio, 121–176. Amsterdam: Elsevier, 2004.

                                                                DOI: 10.1016/S0742-7301(04)23003-1Save Citation »Export Citation » Share Citation »

                                                                Reviews academic research and theories relevant to Staffing as well as practice. Proposes a multilevel staffing model that integrates micro-, macro-, and meso-literatures to answer staffing questions.

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                                                                • Ployhart, Robert E. “Personnel Selection and the Competitive Advantage of Firms.” International Review of Industrial and Organizational Psychology 27 (2012): 153–196.

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                                                                  Proposes that Selection scholars should change and expand their lens to consider how selection can offer strategic value to firms. Reviewing the personnel selection literature, the author extends the scope of inquiry by identifying how personnel selection can create the conditions that allow firms to create competitive advantage.

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                                                                  • Ryan, Ann M., and Robert E. Ployhart. “A Century of Selection.” Annual Review of Psychology 65 (2014): 693–717.

                                                                    DOI: 10.1146/annurev-psych-010213-115134Save Citation »Export Citation » Share Citation »

                                                                    Reviews and discusses the current state of the selection research and provides guidance for future research. A future research agenda is also presented.

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                                                                    • Schmitt, Neal. The Oxford Handbook of Personnel Assessment and Selection. New York: Oxford University Press, 2012.

                                                                      DOI: 10.1093/oxfordhb/9780199732579.001.0001Save Citation »Export Citation » Share Citation »

                                                                      A comprehensive handbook on the topic of personnel assessment and selection.

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                                                                      • Terpstra, David E., and Elizabeth J. Rozell. “The Relationship of Staffing Practices to Organizational Level Measures of Performance.” Personnel Psychology 46.1 (1993): 27–48.

                                                                        DOI: 10.1111/j.1744-6570.1993.tb00866.xSave Citation »Export Citation » Share Citation »

                                                                        Highly cited seminal empirical research on the contribution of effective staffing practices to organizational performance, as opposed to looking at traditional, individual-level outcomes.

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                                                                        • Wang, Taiyuan, and Christopher D. Zatzick. “Human Capital Acquisition and Organizational Innovation: A Temporal Perspective.” Academy of Management Journal 62.1 (2019): 99–116.

                                                                          DOI: 10.5465/amj.2017.0114Save Citation »Export Citation » Share Citation »

                                                                          Theorizes that newcomers’ innovation contribution to the organization is influenced by hiring rate, hiring rate change, and hiring rate dispersion, and finds that time-dispersed hiring of managers and professionals is positively related to organizational innovation.

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                                                                          Attrition

                                                                          Horn, et al. 2017 is a published review reflecting one hundred years of research on employee turnover. Cappelli 2000 treats employee retention, including a discussion about adapting to attrition. Research over the early 21st century has advanced theoretical knowledge regarding why employees choose to stay with an organization. For instance, the concept of job embeddedness (e.g., Mitchell, et al. 2001) argues that an employee’s total attachment to a job, organization, community, etc. affects the likelihood of staying or leaving, and, thus, influences the HCR pipeline. Griffeth, et al. 2000 meta-analyzes factors that lead employees to quit, while Hausknecht, et al. 2009 provides research on factors that make employees stay, differentiating between high-level and low-level performers as well as hourly and non-hourly workers. See also Individual Turnover and Collective Turnover.

                                                                          • Cappelli, Peter. “A Market-Driven Approach to Retaining Talent.” Harvard Business Review 78.1 (2000): 103–111.

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                                                                            A new, market-driven perspective on retention is presented to reflect contemporary talent shortages. Uses examples from companies such as Prudential to highlight practices that emphasize HR management’s goal of influencing who leaves and when. Compensation, job design, job customization, social ties, and location are among the topics discussed.

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                                                                            • Griffeth, Roger W., Peter W. Horn, and Stefan Gaertner. “A Meta-analysis of Antecedents and Correlates of Employee Turnover: Update, Moderator Tests, and Research Implications for the Next Millennium.” Journal of Management 26.3 (2000): 463–488.

                                                                              DOI: 10.1177/014920630002600305Save Citation »Export Citation » Share Citation »

                                                                              The meta-analysis identifies antecedents that lead to individual employee turnover.

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                                                                              • Hausknecht, John P., Julianne Rodda, and Michael J. Howard. “Targeted Employee Retention: Performance‐Based and Job‐Related Differences in Reported Reasons for Staying.” Human Resource Management 48.2 (2009): 269–288.

                                                                                DOI: 10.1002/hrm.20279Save Citation »Export Citation » Share Citation »

                                                                                With 24,829 open-ended responses from employees in the leisure and hospitality industry, the authors identify factors that influence the retention of employees, differentiating between high-level and low-level performers as well as hourly and non-hourly workers.

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                                                                                • Horn, Peter W., Thomas Lee, Jason D. Shaw, and John P. Hausknecht. “One Hundred Years of Employee Turnover Theory and Research.” Journal of Applied Psychology 102.3 (2017): 530–545.

                                                                                  DOI: 10.1037/apl0000103Save Citation »Export Citation » Share Citation »

                                                                                  Reviews one hundred years of research on employee turnover.

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                                                                                  • Mitchell, Terence, Brooks Holtom, Thomas Lee, Chris Sablynski, and Miriam Erez. “Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover.” Academy of Management Journal 44 (2001): 1102–1121.

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                                                                                    Introduces job embeddedness by focusing on issues that lead employees to choose to stay in their current jobs. The authors find that issues such as links to other people, teams, and groups—as well as perceptions of their Fit with job, organization, and community—predict both intent to leave and voluntary turnover.

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                                                                                    Individual Turnover

                                                                                    The role of turnover is also essential to understanding the HCR pipeline. Losing employees, particularly those who leave voluntarily (or those that an organization would prefer to keep), is often unpredictable, thus placing more stress on the pipeline. There have been thousands of studies on individual turnover and these findings are summarized in a number of reviews (e.g., Holtom, et al. 2008). Most turnover research started with March and Simon 1958, which posited that individual turnover generally results from employees being either pushed from the organization or pulled toward more desirable opportunities. Later theoretical advances have more assertively placed turnover in a HCR context (again without using the HCR framework). For instance, the unfolding model of turnover, as seen in Lee and Mitchell 1994, provides a connection to the HCR pipeline by showing that turnover can often result from shocks that occur to the employment equilibrium that causes the employee to rethink the desire to stay with the organization (as discussed in Lee, et al. 1996). Consistent with unexpected shocks, early-21st-century research has drawn attention to the role that unexpected offers have on turnover (as seen in Lee, et al. 2008), showing the need for organizations to remain vigilant in thinking about the overarching HCR pipeline and competitive forces (like poaching).

                                                                                    • Holtom, Brooks C., Terence R. Mitchell, Thomas W. Lee, and Marion B. Eberly. “Turnover and Retention Research: A Glance at the Past, a Closer Review of the Present, and a Venture into the Future.” The Academy of Management Annals 2.1 (2008): 231–274.

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                                                                                      Reviews individual-level turnover research, including what we know about turnover antecedents. It also provides direction for future research.

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                                                                                      • Lee, Tae H., Barry Gerhart, Ingo Weller, and Charlie O. Trevor. “Understanding Voluntary Turnover: Path-Specific Job Satisfaction Effects and the Importance of Unsolicited Job Offers.” Academy of Management Journal 51.4 (2008): 651–671.

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                                                                                        Uses the unfolding model to assert that a disproportionate amount of attention has focused on the “push” factors in turnover at the expense of “pull” factors. The paper notes that unsolicited job offers account for a substantial amount of turnover, suggesting that external shocks play an even larger role in turnover than had previously been discussed.

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                                                                                        • Lee, Thomas W., and Terence R. Mitchell. “An Alternative Approach: The Unfolding Model of Voluntary Employee Turnover.” The Academy of Management Review 19.1 (1994): 51–89.

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                                                                                          Introduces the unfolding model of voluntary turnover to propose four distinct voluntary turnover decision paths, each motivated by different factors. The authors also provide suggestions for future research.

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                                                                                          • Lee, Thomas W., Terence R. Mitchell, Lowell Wise, and Steven Fireman. “An Unfolding Model of Voluntary Employee Turnover.” Academy of Management Journal 39.1 (1996): 5–36.

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                                                                                            Conducts the first test of the unfolding model of turnover in Lee and Mitchell 1994. Data based on nurses who had recently voluntarily left their jobs generally supported the model’s predictions that unexpected shocks can lead people to rethink their employment relationship, ultimately leading to voluntary turnover.

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                                                                                            • March, James G., and Herbert A. Simon. Organizations. New York: John Wiley, 1958.

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                                                                                              This foundational book on many topics is relevant to HCR pipelines because of its chapters on turnover. In these chapters the authors introduce the concepts of “push” and “pull,” or desirability of movement and ease of movement.

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                                                                                              Collective Turnover

                                                                                              Despite the tremendous attention and the strong advances made in Individual Turnover research, little work has focused on the more relevant area of turnover research for the HCR pipeline—collective turnover, as discussed in several reviews (Hausknecht 2017, Hausknecht and Trevor 2011), which is defined as the quantity and quality of KSAO depletion from the unit, explained in Nyberg and Ployhart 2013. Existing research has primarily examined the relationship between collective turnover (also referred to as turnover rates) and unit performance—as seen in Hancock, et al. 2013 and Park and Shaw 2013—and early examinations regarding the causes of collective turnover can be illustrated in Heavey, et al. 2013 and its meta-analysis. Work since then has also begun to examine the role of collective turnover in holistic systems, including the role of turnover duration and how this affects the HC pipeline and ultimately the unit, as seen in Reilly, et al. 2014, the role of replacements in supporting the HC pipeline, according to Call, et al. 2015, and the influence of the intangible factors such as the firm’s reputation and third-party certifications, as shown by Makarius and Stevens 2019 and Dineen and Allen 2016, respectively. Hausknecht and Holwerda 2013 and Nyberg and Ployhart 2013 both provide theoretical frameworks that attempt to explain when, how, and why collective turnover matters.

                                                                                              • Call, Matthew, Anthony J. Nyberg, Robert E. Ployhart, and Jeff Weekley. “The Dynamic Nature of Turnover and Unit Performance: The Impact of Time, Quality, and Replacements.” Academy of Management Journal 58.4 (2015): 1208–1232.

                                                                                                DOI: 10.5465/amj.2013.0669Save Citation »Export Citation » Share Citation »

                                                                                                Draws on context-emergent turnover theory (CET) to examine unit performance effects of the quality and quantity of leavers, the quantity and quality of replacements, and the role of time in terms of turnover dispersion.

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                                                                                                • Dineen, Brian R., and David G. Allen. “Third Party Employment Branding: Human Capital Inflows and Outflows Following ‘Best Places to Work’ Certifications.” Academy of Management Journal 59.1 (2016): 90–112.

                                                                                                  DOI: 10.5465/amj.2013.1091Save Citation »Export Citation » Share Citation »

                                                                                                  Empirical study using archival and survey data shows that third-party certifications, such as “Best Places to Work” certification, have an impact on attracting job candidates, particularly in smaller companies, and lowering turnover rates.

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                                                                                                  • Hancock, Julie I., David G. Allen, Frank A. Bosco, Karen R. McDaniel, and Charles A. Pierce. “Meta-analytic Review of Employee Turnover as a Predictor of Firm Performance.” Journal of Management 39.3 (2013): 573–603.

                                                                                                    DOI: 10.1177/0149206311424943Save Citation »Export Citation » Share Citation »

                                                                                                    Meta-analyzes forty-eight studies (157 correlations) to find a generally negative effect between collective turnover and unit performance that is moderated by industry, job, and unit size, among other factors.

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                                                                                                    • Hausknecht, John P. “Collective Turnover.” Annual Review of Organizational Psychology and Organizational Behavior 4 (2017): 527–544.

                                                                                                      DOI: 10.1146/annurev-orgpsych-032516-113139Save Citation »Export Citation » Share Citation »

                                                                                                      Summarizes theoretical progress and empirical contributions made since the last major collective turnover review (Hausknecht and Trevor 2011).

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                                                                                                      • Hausknecht, John P., and Jacob A. Holwerda. “When Does Employee Turnover Matter? Dynamic Member Configurations, Productive Capacity, and Collective Performance.” Organization Science 24.1 (2013): 210–225.

                                                                                                        DOI: 10.1287/orsc.1110.0720Save Citation »Export Citation » Share Citation »

                                                                                                        Theoretically examines the concept of collective turnover and suggests focusing on more nuanced theoretical and methodological factors of collective turnover.

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                                                                                                        • Hausknecht, John P., and Charlie O. Trevor. “Collective Turnover at the Group, Unit, and Organizational Levels: Evidence, Issues, and Implications.” Journal of Management 37.1 (2011): 352–388.

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                                                                                                          Coins the term “collective turnover” and provides a review and theoretical guidance for future research on issues, including antecedents, consequences, interactions, measurement, and methodology.

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                                                                                                          • Heavey, Angela L., Jacob A. Holwerda, and John P. Hausknecht. “Causes and Consequences of Collective Turnover: A Meta-analytic Review.” Journal of Applied Psychology 98.3 (2013): 412–453.

                                                                                                            DOI: 10.1037/a0032380Save Citation »Export Citation » Share Citation »

                                                                                                            Meta-analyzes eighty-two studies on the topic of the causes and effects of collective turnover, finding that human resource practices and job embeddedness were antecedents predicting collective turnover and the consequences of turnover were generally negative; stronger for more proximal than distal outcomes; and moderated by unit size and industry, among other factors.

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                                                                                                            • Makarius, Erin E., and Charles E. Stevens. “Drivers of Collective Human Capital Flow: The Impact of Reputation and Labor Market Conditions.” Journal of Management 45.3 (2019): 1145–1172.

                                                                                                              DOI: 10.1177/0149206317690585Save Citation »Export Citation » Share Citation »

                                                                                                              Uses context-emergent turnover theory to empirically examine the role of a firm’s reputation as an antecedent to human capital inflows and outflows and the influence of labor market conditions on the main relationships.

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                                                                                                              • Nyberg, Anthony J., and Robert E. Ployhart. “Context-Emergent Turnover (CET) Theory: A Theory of Collective Turnover.” Academy of Management Review 38.1 (2013): 109–131.

                                                                                                                DOI: 10.5465/amr.2011.0201Save Citation »Export Citation » Share Citation »

                                                                                                                Defines collective turnover within the human capital resource literature. Introduces context-emergent turnover (CET) theory to explain the importance of both quality and quantity in understanding collective turnover effects and discusses the reciprocal effects of collective turnover and the HCR emergence process, as well as the effects of climate and time.

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                                                                                                                • Park, Tae-Youn, and Jason D. Shaw. “Turnover Rates and Organizational Performance: A Meta-Analysis.” Journal of Applied Psychology 98.2 (2013): 268–309.

                                                                                                                  DOI: 10.1037/a0030723Save Citation »Export Citation » Share Citation »

                                                                                                                  Meta-analyzes three hundred correlations to find a negative (and possibly attenuated) effect of collective turnover on unit performance that is moderated by the type of turnover (i.e., voluntary and layoffs have stronger negative performance effects than involuntary turnover).

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                                                                                                                  • Reilly, Greg, Anthony J. Nyberg, Mark Maltarich, and Ingo Weller. “Human Capital Flows: Using Context-Emergent Turnover (CET) Theory to Explore the Process by Which Turnover, Hiring, and Job Demands Affects Patient Satisfaction.” Academy of Management Journal 57.3 (2014): 766–790.

                                                                                                                    DOI: 10.5465/amj.2012.0132Save Citation »Export Citation » Share Citation »

                                                                                                                    Draws on context-emergent turnover (CET) theory to examine the flow of HCR and the duration effects of turnover on unit performance. It also examines the dynamic role of replacements, including new hires and transfers, in mitigating collective turnover effects.

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                                                                                                                    Development

                                                                                                                    The sustainable effectiveness of the HCR pipeline depends, in part, on the organization’s development system. This consists of subsystems that must be aligned with each other, including Performance Appraisal, Training, and Succession Planning. This caters to dynamic business and environmental demands, which ensure an up-to-date HCR pipeline while avoiding shortages and bottlenecks.

                                                                                                                    Performance Appraisal

                                                                                                                    Also referred to as performance evaluation, employee assessment, and performance management, the performance appraisal is a systematic process used to evaluate employee performance. The performance appraisal process is an important tool in the HCR pipeline system because it is used by decision makers to identify where, when, and how individuals or groups of individuals move in, out, and through the pipeline; thus, it guides decisions pertaining to promotion, tenure, termination, Compensation, and employee development, as discussed in Murphy and Cleveland 1995. Substantial research has been undertaken on performance appraisals as shown in DeNisi and Murphy 2017, a synthesis of one hundred years of research in the field, mainly focusing on psychometric concerns, such as reliability and validity, as explained in Fletcher 2001 and Levy and Williams 2004. Current relevant research focuses on the nature of the appraisal system and the social context, as seen in Levy and Williams 2004. In current practice, large organizations, such as Deloitte, Adobe, Microsoft, Accenture, GE, and Kelly Services, are “reengineering” their traditional annual performance rating system, eliminating forced rankings, and replacing the system with more frequent informal conversations, according to Bersin 2013 and Wilkie 2015, which provides a fruitful area for academic research (Rynes, et al. 2005). Assessment tools used to operationalize constructs include interviews, situational judgment tests, assessment centers, and work samples. Two emerging trends in this area include (1) the use of more than one predictor method to assess KSAOs (multi-construct methods), as discussed in Ryan and Ployhart 2014; and (2) the use of social media as an assessment tool, as documented in Roth, et al. 2016.

                                                                                                                    • Bersin, Josh. “Time to Scrap Performance Appraisals?.” Forbes, 6 May 2013.

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                                                                                                                      Describes why companies are radically changing their annual performance appraisal process, using examples from practice.

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                                                                                                                      • DeNisi, Angelo S., and Kevin R. Murphy. “Performance Appraisal and Performance Management: 100 Years of Progress?” Journal of Applied Psychology 102.3 (2017): 421–433.

                                                                                                                        DOI: 10.1037/apl0000085Save Citation »Export Citation » Share Citation »

                                                                                                                        Reviews one hundred years of research on performance appraisal and performance management and highlights trends in eight areas: (1) scale formats, (2) rating evaluations, (3) training, (4) appraisal reactions, (5) rating purpose, (6) rating sources, (7) demographic differences, and (8) cognitive processing.

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                                                                                                                        • Fletcher, Clive. “Performance Appraisal And Management: The Developing Research Agenda.” Journal of Occupational and Organizational Psychology 74.4 (2001): 473–487.

                                                                                                                          DOI: 10.1348/096317901167488Save Citation »Export Citation » Share Citation »

                                                                                                                          Multilevel emerging areas of research in the performance appraisal literature are reviewed, including the content (contextual performance, goal orientation, and self-awareness); process (appraiser–appraise interaction and multisource feedback); and the contextual influences (culture and technology) of the appraisal process.

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                                                                                                                          • Levy, Paul E., and Jane R. Williams. “The Social Context of Performance Appraisal: A Review and Framework for the Future.” Journal of Management 30.6 (2004): 881–905.

                                                                                                                            DOI: 10.1016/j.jm.2004.06.005Save Citation »Export Citation » Share Citation »

                                                                                                                            Reviews over three hundred articles and suggests that the field has become much more cognizant of the importance of the social context within which the performance appraisal process operates.

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                                                                                                                            • Murphy, Kevin R., and Jeanette Cleveland. Understanding Performance Appraisal: Social, Organizational, and Goal-Based Perspectives. Thousand Oaks, CA: SAGE, 1995.

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                                                                                                                              This seminal book emphasizes the context in which performance appraisal occurs. It emphasizes the goals pursued by raters, ratees, and other users of performance appraisal.

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                                                                                                                              • Roth, Philip L., Philip Bobko, Chad H. Van Iddekinge, and Jason B. Thatcher. “Social Media in Employee-Selection-Related Decisions: A Research Agenda for Uncharted Territory.” Journal of Management 42.1 (2016): 269–298.

                                                                                                                                DOI: 10.1177/0149206313503018Save Citation »Export Citation » Share Citation »

                                                                                                                                Social media has developed into an important recruitment and informational source for organizations in practice, as it influences the Selection process and may predict job performance and withdrawal, A research agenda to address the lag in academic research is also provided.

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                                                                                                                                • Ryan, Ann M., and Robert E. Ployhart. “A Century of Selection.” Annual Review of Psychology 65 (2014): 693–717.

                                                                                                                                  DOI: 10.1146/annurev-psych-010213-115134Save Citation »Export Citation » Share Citation »

                                                                                                                                  A selective review on current questions and topics of interest to selection researchers as well as future directions for such research. The chapter presents a multilevel model of relationships investigated in selection research.

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                                                                                                                                  • Rynes, Sara L., Barry Gerhart, and Laura Parks. “Personnel Psychology: Performance Evaluation and Pay for Performance.” Annual Review of Psychology 56 (2005): 571–600.

                                                                                                                                    DOI: 10.1146/annurev.psych.56.091103.070254Save Citation »Export Citation » Share Citation »

                                                                                                                                    Reviews work on the connection between pay and performance evaluations. Concludes that the two constructs are closely connected in practice, but are inappropriately treated completely separately in academic research.

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                                                                                                                                    • Wilkie, Dana. “Is the Annual Performance Review Dead?.” Society of Human Resource Management, 19 August 2015.

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                                                                                                                                      GE is one of many high-profile companies that are getting rid of annual performance reviews. The article discusses this new trend and how it has sparked national dialogue about the practicality of performance appraisals.

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                                                                                                                                      Training

                                                                                                                                      “Training is the systematic approach to affecting individuals’ knowledge, skills, and attitudes in order to improve individual, team, and organizational effectiveness” (Aguinis and Kraiger 2009, p. 452). Over the years, training research has prospered, generated empirical advancements, and made significant contributions to practice. Several relevant meta-analyses exist, including reviews regarding manager training and team training (e.g., Arthur, et al. 2003). The authors of Aguinis and Kraiger 2009 use multidisciplinary, multilevel, and global lenses to review the topic of training and development. Similarly, Noe 2012 reviews the employee training literature as a guide to articulate the strategic role of training and to illustrate best practices. Cappelli 2012 argues that the “skill-shortage” problem (where employers claim they cannot find employees with skills needed to fill the job requirements) occurs because companies are unwilling to provide training, and not because people are unwilling or unmotivated to do certain jobs. Even though Riley, et al. 2017 shows that investment in training is linked to firm performance, to some degree, institutional factors explain why some companies train and others do not (Beck, et al. 2009). Similarly, economic reasons account for the willingness of firms to provide training (see also Human Capital and the Human Capital Resource). The lack of training investment is compounded by the instability of the workforce and the early-21st-century job-hopping generation. This is a problem given that the goal of many organizational training programs is to update employee KSAOs that are relevant to the specific firm performing the training (or firm-specific human capital). A failure to do so means that organizations are constantly filling vacant positions with external employees, which is both expensive and disruptive, instead of encouraging internal employee flow (Bidwell 2011).

                                                                                                                                      • Aguinis, Herman, and Kurt Kraiger. “Benefits of Training and Development for Individuals and Teams, Organizations, and Society.” Annual Review of Psychology 60 (2009): 451–474.

                                                                                                                                        DOI: 10.1146/annurev.psych.60.110707.163505Save Citation »Export Citation » Share Citation »

                                                                                                                                        Reviews the training and development literature since 2000, focusing on the benefits of training and development for individuals, teams, organizations, and society as fundamentally multidisciplinary, multilevel, and global.

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                                                                                                                                        • Arthur, Winfred, Jr., Winston Bennett Jr., Pamela S. Edens, and Suzanne T. Bell. “Effectiveness of Training in Organizations: A Meta-analysis of Design and Evaluation Features.” Journal of Applied Psychology 88.2 (2003): 234–245.

                                                                                                                                          DOI: 10.1037/0021-9010.88.2.234Save Citation »Export Citation » Share Citation »

                                                                                                                                          A meta-analysis that illustrates the effectiveness of training, using 162 studies, concentrating on design and evaluation features of training.

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                                                                                                                                          • Beck, Nikolaus, Rüdiger Kabst, and Peter Walgenbach. “The Cultural Dependence of Vocational Training.” Journal of International Business Studies 40.8 (2009): 1374–1395.

                                                                                                                                            DOI: 10.1057/jibs.2008.112Save Citation »Export Citation » Share Citation »

                                                                                                                                            Shows that there are “country-of-origin” effects in the provision of training: Multinational corporations (MNCs) from different labor market and institutional backgrounds not only export some of their home-based practices, but also adopt some of the host-country practices and processes.

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                                                                                                                                            • Becker, Gary S. Human Capital. New York: Columbia University Press, 1964.

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                                                                                                                                              A seminal book on human capital that lays out the arguments for how firms can invest in their employees and how people can invest in themselves to become more valuable in the marketplace. This leads to the idea that organizations can achieve competitive performance through differentiating human talent.

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                                                                                                                                              • Bidwell, Matthew. “Paying More to Get Less: The Effects of External Hiring versus Internal Mobility.” Administrative Science Quarterly 56.3 (2011): 369–407.

                                                                                                                                                DOI: 10.1177/0001839211433562Save Citation »Export Citation » Share Citation »

                                                                                                                                                Those promoted internally perform better in the short term. However, those hired from outside tend to have higher human capital (as it is commonly measured), and earn higher pay.

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                                                                                                                                                • Cappelli, Peter. Why Good People Can’t Get Jobs: The Skills Gap and What Companies Can Do about It. Philadelphia: Wharton Digital, 2012.

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                                                                                                                                                  Questions the claim that a “skills gap” exists in which firms argue that applicants are not qualified for the job, and if they are, won’t accept jobs at the wages offered. The book incorporates data, stories, and interviews to expose realistic reasons why good people can’t get hired and suggests possible solutions.

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                                                                                                                                                  • Noe, Raymond A. Employee Training and Development. New York: McGraw-Hill, 2012.

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                                                                                                                                                    Reviews the employee training literature as a guide to articulating the strategic role of training and to illustrating challenges and best practices in training design and method.

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                                                                                                                                                    • Riley, Shawn M., Steven C. Michael, and Joseph T. Mahoney. “Human Capital Matters: Market Valuation of Firm Investments in Training and the Role of Complementary Assets.” Strategic Management Journal 38.9 (2017): 1895–1914.

                                                                                                                                                      DOI: 10.1002/smj.2631Save Citation »Export Citation » Share Citation »

                                                                                                                                                      This study empirically examines whether firms financially benefit from their investments in human capital and training, as well as from the influence of other complementary investments.

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                                                                                                                                                      Succession Planning

                                                                                                                                                      Succession planning is “any effort designed to ensure the continued effective performance of an organization, division, department, or work group by making provision for the development, replacement, and strategic application of key people over time” (Rothwell 2010, p. 10). Best-practice tools such as the nine-box grid can help facilitate the succession planning process. The grid has two dimensions: performance (i.e., low, medium, and high) and potential. Managers plot employees in a quadrant to subsequently determine a variety of outcomes, including succession placement, promotion, and turnover risk (Stomski and Attkisson 2013). Traditional succession planning assumes an employee development process over years. Cappelli 2008 states that the problem with this assumption is that during this multiyear period, organizational needs change due to changes in management composition, economic environment, and consumer preferences. This leaves the groomed candidate unable to fit the new vacant position, which stirs feelings of betrayal among candidates as well as wasted investment, time, and energy. When business forecasting and/or strategic workforce planning fails to predict future needs, HCR pipelines churn under outdated assumptions. Cappelli 2008 advances a contemporary talent-on-demand concept that adopts a supply chain perspective to address the risks in estimating talent demand and uncertainty of talent supply. Ready and Conger 2007 emphasizes how companies are building “talent factories” to adapt to the dynamic business needs. Rothwell 2010 addresses succession planning challenges and recommends potential strategies similar to those advocated in the author’s book. Most succession research focuses on the C-Suit level and primarily uses archival data to explain CEO succession antecedents and consequences, leaving a need for research regarding multilevel succession planning. However, Griffith, et al. 2018 presents a framework that bridges the succession of entry-level employees to executive-level employees.

                                                                                                                                                      • Cappelli, Peter. Talent On Demand: Managing Talent in an Uncertain Age. Boston: Harvard Business School, 2008.

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                                                                                                                                                        Provides a rationale for the value of matching human capital with organizational demands. Lays out a foundation for rethinking how to ensure that talent (human capital) is in the right place at the right time and suggests treating the pipeline as a “just-in-time” function in a manner analogous to operations management.

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                                                                                                                                                        • Griffith, Jennifer A., John E. Baur, and M. Ronald Buckley. “Creating Comprehensive Leadership Pipelines: Applying the Real Options Approach to Organizational Leadership development.” Human Resource Management Review online (2018).

                                                                                                                                                          DOI: 10.1016/j.hrmr.2018.07.001Save Citation »Export Citation » Share Citation »

                                                                                                                                                          Creates a “comprehensive leadership pipelines” framework that spans entry-level employees to executives using a real options reasoning approach to leadership.

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                                                                                                                                                          • Ready, Douglas A., and Jay A. Conger. “Make Your Company a Talent Factory.” Harvard Business Review 85.6 (June 2007): 68–77, 141.

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                                                                                                                                                            With dynamic environments that entail demographic shifts and labor shortages, the article investigates how Procter & Gamble and HSBC Group are building HCR pipelines, or “talent factories.”

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                                                                                                                                                            • Rothwell, William J. Effective Succession Planning: Ensuring Leadership Continuity and Building Talent from Within. New York: American Management Association, 2010.

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                                                                                                                                                              Strategies for creating a complete, systematic succession-planning program are presented in addition to highlighting the latest trends and best practices in succession management.

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                                                                                                                                                              • Stomski, Lorraine, and Jill Attkisson. “Building the Right High-Potential Pool.” AON Hewitt Consulting Report, 2013.

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                                                                                                                                                                A guide on how organizations define, assess, and measure the performance of their high-potential employees.

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                                                                                                                                                                Compensation

                                                                                                                                                                Traditionally, the study of compensation has primarily focused on examining how individuals respond to pay, and, overall, it finds a general positive relationship between pay for performance (PFP) and individual performance (Gerhart, et al. 2009). Early-21st-century work has focused more on how context, including both economic and psychological factors, influences the effectiveness of PFP (Maltarich, et al. 2017; Nyberg, et al. 2013), and how these effects can be magnified for higher-performing employees (Nyberg 2010). The influence of individual compensation on the HCR pipeline is primarily a sorting effect, or the role that pay has on influencing which employees choose to join and remain with an organization, and a motivational effect (Gerhart and Rynes 2003, cited under Sorting). Compensation also affects the HCR pipeline because organizations that use pay-for-performance (PFP) practices for their managers and groups of employees see less employment volatility (Gerhart and Trevor 1996). Despite substantial research showing that PFP is positively related to individual performance, very little work has specifically focused on pay at the HCR level as Nyberg, et al. 2018 concluded in this conceptual review and meta-analysis of collective PFP practices (practices that tie pay to higher-level outcomes) and collective outcomes. An early test, Gerhart and Milkovich 1990 shows that PFP systems are associated with organizational performance; however early-21st-century work regarding teams indicates that the simultaneous combination of different PFP rewards (e.g., individual- and team-level PFP) may hinder team performance (Barnes, et al. 2011) and decrease helping behavior (Bamberger and Levi 2009). Pay Dispersion can also accentuate these effects (Shaw 2015).

                                                                                                                                                                • Bamberger, Peter A., and Racheli Levi. “Team-Based Reward Allocation Structures and the Helping Behaviors of Outcome-Interdependent Team Members.” Journal of Managerial Psychology 24.4 (2009): 300–327.

                                                                                                                                                                  DOI: 10.1108/02683940910952705Save Citation »Export Citation » Share Citation »

                                                                                                                                                                  Examined the effects of interdependent team member reward allocation and intensity. Using 180 undergraduate students they found that equality-oriented pay was associated with more helping behaviors than equity-based pay, and that incentive intensity strengthened the effects.

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                                                                                                                                                                  • Barnes, Christopher M., John R. Hollenbeck, Duston K. Jundt, D. Scott DeRue, and Stephen J. Harmon. “Mixing Individual Incentives and Group Incentives: Best of Both Worlds or Social Dilemma?” Journal of Management 37.6 (2011): 1611–1635.

                                                                                                                                                                    DOI: 10.1177/0149206309360845Save Citation »Export Citation » Share Citation »

                                                                                                                                                                    Finds that when some team members are paid based on group outcomes while others are paid based on individual outcomes that the latter teams perform less accurately and show fewer helping behaviors than groups in which all members are paid based on group outcomes.

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                                                                                                                                                                    • Gerhart, Barry, and George Milkovich. “Organizational Differences in Managerial Compensation and Financial Performance.” Academy of Management Journal 33.4 (1990): 663–691.

                                                                                                                                                                      DOI: 10.2307/256286Save Citation »Export Citation » Share Citation »

                                                                                                                                                                      Using longitudinal, multilevel data, the authors show that pay type differences, but not pay levels, matter in terms of organizational performance. Shows that firms facing similar conditions that use contingent pay have higher performance than those that did not, and that contingent pay, rather than base pay, is associated with this performance.

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                                                                                                                                                                      • Gerhart, Barry, Sara L. Rynes, and Ingrid Smithey Fulmer. “Pay and Performance: Individuals, Groups, and Executives.” Academy of Management Annals 3 (2009): 251–315.

                                                                                                                                                                        DOI: 10.1080/19416520903047269Save Citation »Export Citation » Share Citation »

                                                                                                                                                                        Reviews pay-for-performance research by addressing the conceptual mechanisms that influence individual performance, how organizations implement PFP, and the potential problems associated with PFP. The authors conclude that PFP effectiveness depends on the circumstances and the organization.

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                                                                                                                                                                        • Gerhart, Barry, and Charlie O. Trevor. “Employment Variability under Different Managerial Compensation Systems.” Academy of Management Journal 39.6 (1996): 1692–1712.

                                                                                                                                                                          DOI: 10.2307/257075Save Citation »Export Citation » Share Citation »

                                                                                                                                                                          The first article that empirically connects variable compensation with employment variability. Using data from 152 organizations, the authors found that organizations using long-term compensation for managers exhibited less employment variability, and that groups of employees who were covered by variable pay plans had lower employment variability.

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                                                                                                                                                                          • Maltarich, Mark A., Anthony J. Nyberg, Greg Reilly, Dhuha “Dee” Abdulsalam, and Melissa Martin. “Pay-for-Performance, Sometimes: An Interdisciplinary Approach to Integrating Economic Rationality with Psychological Emotion to Predict Individual Performance.” Academy of Management Journal 60.6 (2017): 2155–2174.

                                                                                                                                                                            DOI: 10.5465/amj.2015.0737Save Citation »Export Citation » Share Citation »

                                                                                                                                                                            Empirically examines how employees who do not meet performance expectations respond to the pay-for-performance (PFP) system by integrating economic and psychology-based explanations.

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                                                                                                                                                                            • Nyberg, Anthony J. “Retaining Your High Performers: Moderators of the Performance–Job Satisfaction–Voluntary Turnover Relationship.” Journal of Applied Psychology 95.3 (2010): 440–453.

                                                                                                                                                                              DOI: 10.1037/a0018869Save Citation »Export Citation » Share Citation »

                                                                                                                                                                              A longitudinal evaluation of voluntary turnover decisions found that pay growth and promotions affect the likelihood of voluntary turnover among high performers more than other performers. Furthermore, these influences functioned independently of job satisfaction.

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                                                                                                                                                                              • Nyberg, Anthony J., Mark A. Malterich, Dhuha “Dee” Abdulsalam, Spenser M. Essman, and Ormonde Cragun. “Collective Pay for Performance: A Cross-Disciplinary Review and Meta-analysis.” Journal of Management 44.6 (2018): 2433–2472.

                                                                                                                                                                                DOI: 10.1177/0149206318770732Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                Reviews and meta-analyzes research on the relationship between six different collective pay-for-performance (PFP) types (top management team PFP, stock options, employee stock ownership plans, profit sharing, gainsharing, and team PFP) and three different collective outcomes (behavioral, financial, and operational), compiled from different disciplines.

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                                                                                                                                                                                • Nyberg, Anthony J., Jenna R. Pieper, and Charlie O. Trevor. “Pay-for-Performance Effect on Future Employee Performance: Integrating Psychological and Economic Principles toward a Contingency Perspective.” Journal of Management 42.7 (2013): 1753–1783.

                                                                                                                                                                                  DOI: 10.1177/0149206313515520Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                  Using longitudinal data, the authors examine PFP contingency by integrating economic and psychological principles to identify and incorporate employee characteristics, job characteristics, pay system characteristics, and pay system experience into a contingency model of the PFP–future performance relationship.

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                                                                                                                                                                                  • Shaw, Jason D. “Pay Dispersion, Sorting, and Organizational Performance.” Academy of Management Discoveries 1.2 (2015): 165–179.

                                                                                                                                                                                    DOI: 10.5465/amd.2014.0045Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                    Using a longitudinal perspective, the author explores the relationships between Pay Dispersion, good- and poor-performer turnover rates, and organizational performance in independent grocery stores.

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                                                                                                                                                                                    Sorting

                                                                                                                                                                                    The role of sorting, or employee self-selection based on pay strategy (Gerhart and Rynes 2003), has received increased theoretical and empirical attention over the early 21st century. Researchers have found performance increases in both the lab (Cadsby, et al. 2007; Dohmen and Falk 2011) and the field (Lazear 2000 and Shaw 2015, cited under Compensation). Additionally, researchers have found that pay practices influence a college student’s organizational preference (Cable and Judge 1994), and that variable pay practices are more likely to attract overconfident individuals, even when those individuals receive feedback that they will not achieve higher pay (Larkin and Leider 2012). Although, this work implicitly ties pay to the HCR pipeline because it shows that pay type affects who is attracted to a specific organization, to date no work has explicitly linked sorting with the HCR pipeline.

                                                                                                                                                                                    • Cable, Daniel M., and Timothy A. Judge. “Pay Preferences and Job Search Decisions: A Person-Organization Fit Perspective.” Personnel Psychology 47.2 (1994): 317–348.

                                                                                                                                                                                      DOI: 10.1111/j.1744-6570.1994.tb01727.xSave Citation »Export Citation » Share Citation »

                                                                                                                                                                                      Using college students who were shown different job scenarios, the authors were able to determine that an organization’s Compensation practices can affect who applies for a specific position, and that pay is important for determining who is attracted to an organization.

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                                                                                                                                                                                      • Cadsby, C. B., Song Fei, and Francis Tapon. “Sorting and Incentive Effects of Pay for Performance: An Experimental Investigation.” Academy of Management Journal 50.2 (2007): 387–405.

                                                                                                                                                                                        DOI: 10.5465/AMJ.2007.24634448Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                        Experimentally compared pay for performance (PFP) with fixed pay over time. Determined that people compensated through PFP achieved higher productivity through both sorting and incentive effects. Those who were more productive chose PFP and everyone was more productive in PFP than in fixed pay situations.

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                                                                                                                                                                                        • Dohmen, Thomas, and Armin Falk. “Performance Pay and Multidimensional Sorting: Productivity, Preferences, and Gender.” The American Economic Review 101.2 (2011): 556–590.

                                                                                                                                                                                          DOI: 10.1257/aer.101.2.556Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                          Experimentally compares three variable pay practices (piece rate, tournament, and revenue sharing) with a fixed pay practice. The authors found that productivity was higher in each of the variable pay practices than the fixed pay practice. The different pay practices also had strong attraction effects on different personality types.

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                                                                                                                                                                                          • Gerhart, Barry, and Sara L. Rynes. Compensation: Theory, Evidence, and Strategic Implications. Thousand Oaks, CA: SAGE, 2003.

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                                                                                                                                                                                            Provides a comprehensive review and offers a multidisciplinary perspective on the compensation literature. The text is organized using three themes: pay level, pay structure, and pay delivery.

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                                                                                                                                                                                            • Larkin, Ian, and Stephen Leider. “Incentive Schemes, Sorting, and Behavioral Biases of Employees: Experimental Evidence.” American Economic Journal: Microeconomics (2012): 184–214.

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                                                                                                                                                                                              Experimentally demonstrates that overconfident employees choose nonlinear incentive plans, despite clear feedback that they will receive less money. In contrast, linear pay plans tend to attract underconfident workers who perform below their ability.

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                                                                                                                                                                                              • Lazear, Edward P. “Performance Pay and Productivity.” The American Economic Review 90.5 (2000): 1346–1361.

                                                                                                                                                                                                DOI: 10.1257/aer.90.5.1346Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                Reports on data collected from Safelite Glass Corporation regarding the change in individual productivity and organization profits when the company switched from fixed pay to piece rate pay. Upon switching from fixed rate to piece rate, worker output increased between 20 percent to 36 percent per worker and organizational profits also increased.

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                                                                                                                                                                                                Pay Dispersion

                                                                                                                                                                                                To understand how Compensation affects the HCR, it is essential to explore the multilevel mechanisms and effects of pay (see Conroy, et al. 2014). One of the critical mechanisms is the role of pay dispersion because it can affect the motivation to perform individually and as part of a collective in the HCR, as seen in Shaw 2014. Early-21st-century research has demonstrated that pay dispersion can also positively affect Sorting and thus lead to an overall positive performance influence, as discussed in Trevor, et al. 2012. Carnahan, et al. 2012 integrates the turnover of high performers with pay dispersion.

                                                                                                                                                                                                • Bloom, Matt. “The Performance Effects of Pay Dispersion on Individuals and Organizations.” Academy of Management Journal 42.1 (1999): 25–40.

                                                                                                                                                                                                  DOI: 10.2307/256872Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                  Tests the relationship between pay dispersion and performance and suggests that more compressed pay dispersions are positively related to individual and organizational performance.

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                                                                                                                                                                                                  • Carnahan, Seth, Rajhshree Agarwal, and Benjamin A. Campbell. “Heterogeneity in Turnover: The Effect of Relative Compensation Dispersion of Firms on the Mobility and Entrepreneurship of Extreme Performers.” Strategic Management Journal 33.12 (2012): 1411–1430.

                                                                                                                                                                                                    DOI: 10.1002/smj.1991Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                    Find that employees with extremely high performance are less likely to leave firms with high Compensation dispersion; however, if they do leave they are more likely to create new firms.

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                                                                                                                                                                                                    • Conroy, Samantha A., Nina Gupta, Jason D. Shaw, and Tae-Youn Park. “A Multilevel Approach to the Effects of Pay Variation.” Research in Personnel and Human Resources Management 32 (2014): 1–64.

                                                                                                                                                                                                      DOI: 10.1108/S0742-730120140000032001Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                      Reviews pay dispersion, pay compression, and pay range literature. The authors identify limitations of prior research and propose future research.

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                                                                                                                                                                                                      • Shaw, Jason D. “Pay Dispersion.” Annual Review of Organizational Psychology and Organizational Behavior 1 (2014): 521–544.

                                                                                                                                                                                                        DOI: 10.1146/annurev-orgpsych-031413-091253Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                        Reviews pay dispersion research, including potential contingencies of effects such as the role of work interdependence and group size. Also provides specific conclusions and a future research agenda.

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                                                                                                                                                                                                        • Trevor, Charlie O., Greg Reilly, and Barry Gerhart. “Reconsidering Pay Dispersion’s Effect on the Performance of Interdependent Work: Reconciling Sorting and Pay Inequality.” Academy of Management Journal 55.3 (2012): 585–610.

                                                                                                                                                                                                          DOI: 10.5465/amj.2006.0127Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                          The authors find that prior work regarding pay dispersion in interdependent work settings confounds inequality with inequity, thereby overestimating inequity concerns. In contrast to prior research, the authors find that by incorporating Sorting effects into those of pay dispersion, overall pay dispersion can positively influence interdependent team performance.

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                                                                                                                                                                                                          Pay Secrecy

                                                                                                                                                                                                          The role of pay secrecy on HCR performance has gained attention in the early 21st century. Original research in the area showed that pay secrecy was associated with lower levels of employee performance, as explained in Lawler 1965, and later work has confirmed that pay secrecy can harm performance, as seen in Bamberger and Belogolovsky 2010 and Belogolovsky and Bamberger 2014. Again, while not directly tied to the functioning of the HCR pipeline, it is clear that pay secrecy affects both Sorting and motivation along the pipeline.

                                                                                                                                                                                                          • Bamberger, Peter, and Elena Belogolovsky. “The Impact of Pay Secrecy on Individual Task Performance.” Personnel Psychology 63.4 (2010): 965–996.

                                                                                                                                                                                                            DOI: 10.1111/j.1744-6570.2010.01194.xSave Citation »Export Citation » Share Citation »

                                                                                                                                                                                                            Tests a pay secrecy model and finds that perceived instrumentality mediates the adverse effect of pay secrecy on individual task performance but only for those low in inequity tolerance. For those with high inequity tolerance, pay secrecy was associated with a higher individual performance than pay openness.

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                                                                                                                                                                                                            • Belogolovsky, Elena, and Peter Bamberger. “Signaling in Secret: Pay for Performance and the Incentive and Sorting Effects of Pay Secrecy.” Academy of Management Journal 57.6 (2014): 1706–1733.

                                                                                                                                                                                                              DOI: 10.5465/amj.2012.0937Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                              Tests incentive and Sorting effects of pay secrecy and finds that pay secrecy adversely affects individual performance, mediated by PFP perceptions, and that its effects are amplified when performance criteria are relative (compared to absolute) and attenuated when performance criteria is objective (compared to subjective).

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                                                                                                                                                                                                              • Lawler, Edward E., III. “Managers’ Perceptions of Their Subordinates’ Pay and of Their Superiors’ Pay.” Personnel Psychology 18.4 (1965): 413–422.

                                                                                                                                                                                                                DOI: 10.1111/j.1744-6570.1965.tb00296.xSave Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                Early examination of manager perceptions about pay of those around them. Finds that managers overestimate average pay of those at their own and lower levels in the organization, but they underestimate pay of those at higher levels in the organization.

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                                                                                                                                                                                                                Internal Talent Alignment

                                                                                                                                                                                                                As with the other areas of this review, alignment rarely focuses explicitly on the HCR pipeline. However, a number of alignment research elements are relevant to the HCR pipeline. These include Talent Matching, Internal Mobility, Fit, and Flexibility.

                                                                                                                                                                                                                Talent Matching

                                                                                                                                                                                                                Alignment’s role in developing and sustaining a strong HCR pipeline is often overlooked, but it is an integral part—it is the attempt to identify job and/or organizational needs, then efficiently allocate people to satisfy these needs, as explained in Cappelli 2008 and shown in the skill-weights model of Lazear 2009. This model challenges the common notion that human capital is specific to the firm or generic and argues that it is the match between the human capital and the firm that can lead to competitive differentiation (Morris, et al. 2017). Thus matching is an essential mechanism for transforming the HCR into economic value, yet knowledge about this critical process is scarce and little integrated. Weller, et al. 2019 integrates psychological and economic research to build on this model and emphasizes a matching perspective about how to place employees in the right situations at the right time, thus also building a theoretical mechanism regarding how strategic human resource management contributes to organizational performance. Wolfson and Mathieu 2018 presents and tests the HCR Complementarity theory that explains the influence of the alignment of, and the individual’s competencies with, the team’s collective competencies and, in turn, the effect on the individual’s dynamic performance.

                                                                                                                                                                                                                • Cappelli, Peter. “Talent Management for the Twenty-First Century.” Harvard Business Review 86.3 (June 2008): 74–81, 133.

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                                                                                                                                                                                                                  Defines and lays a foundation for the importance of matching people with the organization’s needs.

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                                                                                                                                                                                                                  • Lazear, Edward P. “Firm-Specific Human Capital: A Skill-Weights Approach.” Journal of Political Economy 117.5 (2009): 914–940.

                                                                                                                                                                                                                    DOI: 10.1086/648671Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                    The skill-weights approach of HC deviates from traditional HC theory by assuming that all HC is general but that the manner in which each firm uses this human capital is specific. It also provides an important foundation for understanding the value of internal competition and labor markets.

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                                                                                                                                                                                                                    • Morris, Shad S., Sharon A. Alvarez, Jay B. Barney, and Janice C. Molloy. “Firm‐Specific Human Capital Investments as a Signal of General Value: Revisiting Assumptions about Human Capital and How It Is Managed.” Strategic Management Journal 38.4 (2017): 912–919.

                                                                                                                                                                                                                      DOI: 10.1002/smj.2521Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                      Develops theory on the link between firm-specific human capital and general human capital by arguing that the willingness and ability to make firm-specific investments are signals representing a type of general human capital.

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                                                                                                                                                                                                                      • Ployhart, Robert E., Jeff A. Weekley, and Kathryn Baughman. “The Structure and Function of Human Capital Emergence: A Multilevel Examination of the Attraction-Selection-Attrition Model.” Academy of Management Journal 49.4 (2006): 661–677.

                                                                                                                                                                                                                        DOI: 10.5465/AMJ.2006.22083023Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                        Examines the role of human capital across organizational levels by looking at composition and compilation mechanisms of aggregation. The authors find that homogeneity is related to job satisfaction at the individual, job, and organization level, but that variances were often negatively related to performance and job satisfaction at the organization level.

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                                                                                                                                                                                                                        • Weller, Ingo, Christina B. Hymer, Anthony J. Nyberg, and Julia Ebert. “How Matching Creates Value: Cogs and Wheels for Human Capital Resources Research.” Academy of Management Annals 13.1 (2019): 188–214.

                                                                                                                                                                                                                          DOI: 10.5465/annals.2016.0117Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                          The authors create a dynamic matching model that details how and why matching human capital to situations is a mechanism that enables HCR optimization and the creation of economic value. The paper also explains how matching is necessarily a dynamic and multilevel phenomenon and thus requires constant vigilance. It also changes the focus from the individual as a change agent to the organization.

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                                                                                                                                                                                                                          • Wolfson, Mikhail A., and John E. Mathieu. “Sprinting to the Finish: Toward a Theory of Human Capital Resource Complementarity.” Journal of Applied Psychology 103.11 (2018): 1165–1180.

                                                                                                                                                                                                                            DOI: 10.1037/apl0000323Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                            Develops a human capital resource complementarity (HCRC) theory that explains the alignment of human capital resources with dynamic situational features and illustrates the influence of team collective competencies on the performance of individual members. The theory is tested using 169 cyclists in twenty-two teams.

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                                                                                                                                                                                                                            Internal Mobility

                                                                                                                                                                                                                            The importance of internal mobility continues to gain appreciation. Although Bidwell 2011 and Bidwell and Keller 2014 do not explicitly link internal mobility to the HCR pipeline, it follows that if internal mobility can lead to better matching, then it will be possible to further enhance the HCR pipeline, which will ultimately lead to stronger organizational outcomes. It is also important to recognize that different processes can lead to internal mobility and to study the consequences of each (Keller 2018). Further, as discussed in Marx and Timmermans 2017, the role of mobility can be strongly influenced by social connections in the labor market, which according to Mawdsley and Somaya 2016, can exacerbate the organizational effects.

                                                                                                                                                                                                                            • Bidwell, Matthew. “Paying More to Get Less: The Effects of External Hiring versus Internal Mobility.” Administrative Science Quarterly 56.3 (2011): 369–407.

                                                                                                                                                                                                                              DOI: 10.1177/0001839211433562Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                              Those promoted internally perform better in the short term. However, external hires tend to have higher human capital (as it is commonly measured) and also earn higher pay.

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                                                                                                                                                                                                                              • Bidwell, Matthew, and J. R. Keller. “Within or Without? How Firms Combine Internal and External Labor Markets to Fill Jobs.” Academy of Management Journal 57.4 (2014): 1035–1055.

                                                                                                                                                                                                                                DOI: 10.5465/amj.2012.0119Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                Examines which jobs are more likely to be filled internally or externally and finds that job performance variability is a strong indicator of internal hiring, but that this depends, in part, on the grade ratio. Firm-specific skills do not appear to matter in this decision.

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                                                                                                                                                                                                                                • Keller, J. R. “Posting and Slotting: How Hiring Processes Shape the Quality of Hire and Compensation in Internal Labor Markets.” Administrative Science Quarterly 63.4 (2018): 848–878.

                                                                                                                                                                                                                                  DOI: 10.1177/0001839217736045Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                  Conceptually and empirically examines the consequences of the two most commonly used internal hiring processes in large organizations, posting and slotting.

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                                                                                                                                                                                                                                  • Marx, Matt, and Bram Timmermans. “Hiring Molecules, Not Atoms: Comobility and Wages.” Organization Science 28.6 (2017): 1115–1133.

                                                                                                                                                                                                                                    DOI: 10.1287/orsc.2017.1155Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                    Examines the influence of social connections on the labor market by focusing on understanding the value of comobility while providing empirical evidence from nongovernmental workers in Denmark.

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                                                                                                                                                                                                                                    • Mawdsley, John K., and Deepak Somaya. “Employee Mobility and Organizational Outcomes: An Integrative Conceptual Framework and Research Agenda.” Journal of Management 42.1 (2016): 85–113.

                                                                                                                                                                                                                                      DOI: 10.1177/0149206315616459Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                      Reviews research on employee mobility and its organizational impacts, investigating when and why employee mobility may affect key organizational outcomes.

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                                                                                                                                                                                                                                      Fit

                                                                                                                                                                                                                                      Research regarding “fit” is primarily driven from an individual, psychology-based perspective. Many aspects of fit have been examined, including fit with the job, organization, environment, etc., and Kristof-Brown, et al. 2005 provides a meta-analysis of this literature. Little of this research is directly relevant to explaining the quality of the HCR pipeline; however, later work in this area has started to explore and acknowledge that fit ought to be considered from a multilevel perspective—as discussed in Kristof-Brown, et al. 2014—and multidimensionally as well, as seen in Jansen and Kristof-Brown 2006.

                                                                                                                                                                                                                                      • Jansen, Karen J., and Amy L. Kristof-Brown. “Toward a Multidimensional Theory of Person-Environment Fit.” Journal of Managerial Issues 18.2 (2006): 193–212.

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                                                                                                                                                                                                                                        Theorizes about the likelihood that people simultaneously interact with and must fit with more than the type of situation; for example, people should feel high levels of fit with their job and their organization.

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                                                                                                                                                                                                                                        • Kristof-Brown, Amy L., Jee Y. Seong, David S. Degeest, Woo-Woo Park, and Doo-Seung Hong. “Collective Fit Perceptions: A Multilevel Investigation of Person–Group Fit with Individual-Level and Team-Level Outcomes.” Journal of Organizational Behavior 35.7 (2014): 969–989.

                                                                                                                                                                                                                                          DOI: 10.1002/job.1942Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                          Using 1,023 individuals across ninety-two teams, the authors examine person–group fit and show that collective levels of fit differ strongly in terms of antecedents and consequences from a simple aggregation of individual-level examples of fit.

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                                                                                                                                                                                                                                          • Kristof-Brown, Amy L., Ryan D. Zimmerman, and Erin C. Johnson. “Consequences of Individuals’ Fit at Work: A Meta-analysis of Person–Job, Person–Organization, Person–Group, and Person–Supervisor Fit.” Personnel Psychology 58.2 (2005): 281–342.

                                                                                                                                                                                                                                            DOI: 10.1111/j.1744-6570.2005.00672.xSave Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                            The authors meta-analyze research regarding person–job, person–organization, person–group, and person–supervisor fit. In each case, fit is associated with positive individual outcomes (e.g., higher job satisfaction and reduced intention of turnover).

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                                                                                                                                                                                                                                            Flexibility

                                                                                                                                                                                                                                            While matching affects the development and performance of the HCR pipeline, it is also critical for the organization to remain flexible in its deployment of talent, and flexibility in the internal labor market is a key tool for optimizing Talent Matching (Wright and Snell 1998). Based on Wright and Snell’s article, the authors of Way, et al. 2015 develop a scale to measure HR flexibility.

                                                                                                                                                                                                                                            • Way, Sean A., J. Bruce Tracey, Charles H. Fay, et al. “Validation of a Multidimensional HR Flexibility Measure.” Journal of Management 41.4 (2015): 1098–1131.

                                                                                                                                                                                                                                              DOI: 10.1177/0149206312463940Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                              Follows Wright and Snell 1998 by developing and validating a psychometrically sound scale for HR flexibility. This empirical manuscript provides evidence of content validity, reliability, and convergent and discriminant validity, and provides support for using this flexibility measure.

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                                                                                                                                                                                                                                              • Wright, Patrick M., and Scott A. Snell. “Toward a Unifying Framework for Exploring Fit and Flexibility in Strategic Human Resource Management.” Academy of Management Review 23.4 (1998): 756–772.

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                                                                                                                                                                                                                                                This theoretical manuscript advocates developing systems that create both Fit and flexibility. Rather than viewing fit and flexibility as a continuum, they are conceptualized as complementary dimensions, where strategic planning builds on the capabilities and potential availability of an organization’s HCR.

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                                                                                                                                                                                                                                                Special Topics

                                                                                                                                                                                                                                                Human Capital pipelines may incorporate many different types of inputs and some employee categories require their own consideration. Stars, Executive Succession, and Boomerang Employees are important flows to consider when studying HCR pipelines that might involve a different architecture of pipelines compared to other types of employee pipelines, as explained in Ployhart, et al. 2014.

                                                                                                                                                                                                                                                • Ployhart, Robert E., Anthony J. Nyberg, Greg Reilly, and Mark A. Maltarich. “Human Capital Is Dead; Long Live Human Capital Resources!” Journal of Management 40.2 (2014): 371–398.

                                                                                                                                                                                                                                                  DOI: 10.1177/0149206313512152Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                  Redefines the human capital resource (HCR) construct in an attempt create a framework that facilitates multidisciplinary communication among scholars that will advance the field. The process of emergence and the concept of complementarities are also linked to the human capital resource construct.

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                                                                                                                                                                                                                                                  Stars

                                                                                                                                                                                                                                                  Star employees or those “employees with disproportionately high and prolonged (1) performance, (2) visibility, and (3) relevant social capital” are thought to have a disproportionate effect on organizational performance (Call, et al. 2015, p. 623) In the management literature, the effects of stars on firm performance have been questioned, with some finding that stars can negatively influence their colleagues and organizations (Groysberg, et al. 2008), while others find that they can have a positive effect on organizational performance (Tzabbar and Kehoe 2014). From an HCR pipeline perspective, the influence of stars and what their departure may mean to the organization’s performance can be essential to maintaining performance and to affecting the competitive landscape, according to Kehoe and Tzabbar 2015.

                                                                                                                                                                                                                                                  • Call, Matthew L., Anthony J. Nyberg, and Sherry M. B. Thatcher. “Stargazing: An Integrative Conceptual Review, Theoretical Reconciliation, and Extension for Star Employee Research.” Journal of Applied Psychology 100.3 (2015): 623–640.

                                                                                                                                                                                                                                                    DOI: 10.1037/a0039100Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                    Integrates the relevant literature about stars across economic, sociological, and management literatures to define the construct as employees with disproportionately high and prolonged (a) performance, (b) visibility, and (c) relevant social capital. Additional psychological theories are applied to explain star behaviors and effects of their actions on their own and colleagues’ motivation, performance, and retention.

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                                                                                                                                                                                                                                                    • Groysberg, Boris, Linda-Eling Lee, and Ashish Nanda. “Can They Take It with Them? The Portability of Star Knowledge Workers’ Performance.” Management Science 54.7 (2008): 1213–1230.

                                                                                                                                                                                                                                                      DOI: 10.1287/mnsc.1070.0809Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                      Uses the movement of security analysts to test the effects of stars, finding that star performance decreased upon switching organizations if stars switched to firms with equal or less resources.

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                                                                                                                                                                                                                                                      • Kehoe, Rebecca R., and Daniel Tzabbar. “Lighting the Way or Stealing the Shine? An Examination of the Duality in Star Scientists’ Effects on Firm Innovative Performance.” Strategic Management Journal 36.5 (2015): 709–727.

                                                                                                                                                                                                                                                        DOI: 10.1002/smj.2240Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                        Using longitudinal data from 456 biotechnology firms, the authors show that stars positively affect organizational productivity but, through their presence, they can limit the development of other leaders.

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                                                                                                                                                                                                                                                        • Tzabbar, Daniel, and Rebecca R. Kehoe. “Can Opportunity Emerge from Disarray? An Examination of Exploration and Exploitation Following Star Scientist Turnover.” Journal of Management 40.2 (2014): 449–482.

                                                                                                                                                                                                                                                          DOI: 10.1177/0149206313513613Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                          Using longitudinal data from biotechnology firms, the authors show that star turnover disrupts innovation but increases opportunities for new exploration. Their work indicates that the HCR detriment of losing a star is contingent on the star’s social capital.

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                                                                                                                                                                                                                                                          Executive Succession

                                                                                                                                                                                                                                                          The role of executive succession is critical for the performance of the HCR pipeline because executives drive the strategic direction of the firm, as seen in Bermiss and Murmann 2015, and they are closely associated with the firm’s long-term performance, as documented in Finkelstein, et al. 2009. The authors of Schepker, et al. 2017 conducted a meta-analysis on CEO succession and firm outcomes, while Cragun, et al., 2016 presents a review and future agenda for CEO succession research. Although it is a ubiquitous process, many areas in the field are understudied due to the lack of data availability. The authors of Schepker, et al. 2018 utilize a unique longitudinal data set involving qualitative and quantitative data to shed light on the role that the board of directors plays in the process of succession planning.

                                                                                                                                                                                                                                                          • Bermiss, Y. Sekou, and Johann P. Murmann. “Who Matters More? The Impact of Functional Background and Top Executive Mobility on Firm Survival.” Strategic Management Journal 36.11 (2015): 1697–1716.

                                                                                                                                                                                                                                                            DOI: 10.1002/smj.2320Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                            Using data on New York City advertising firms from 1924 to 1996, the authors find that losing top executives who focus on internal firm processes is more detrimental than losing top executives whose focus is external.

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                                                                                                                                                                                                                                                            • Cragun, Ormonde R., Anthony J. Nyberg, and Pat M. Wright. “CEO Succession: What We Know and Where to Go?” Journal of Organizational Effectiveness: People and Performance 3.3 (2016): 222–264.

                                                                                                                                                                                                                                                              DOI: 10.1108/JOEPP-02-2016-0015Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                              Reviews and synthesizes 227 articles published after 1994 on the chief executive officer (CEO) succession literature.

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                                                                                                                                                                                                                                                              • Finkelstein, Sydney, Donald Hambrick, and Albert Cannella. Strategic Leadership: Theory and Research on Executives, Top Management Teams, and Boards. New York: Oxford University Press, 2009.

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                                                                                                                                                                                                                                                                Reviews research on top executives and their influence on organizational outcomes. Two chapters, “Changes at the Top: The Antecedents of Executive Turnover and Succession” and “Changes at the Top: The Consequences of Executive Turnover and Succession,” are directly related to the HCR pipeline due to the information they provide about how to plan for and handle executive transitions.

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                                                                                                                                                                                                                                                                • Schepker, Donald J., Youngsang Kim, Pankaj C. Patel, Sherry M. B. Thatcher, and Michael C. Campion. “CEO Succession, Strategic Change, and Post-succession Performance: A Meta-analysis.” The Leadership Quarterly 28.6 (2017): 701–720.

                                                                                                                                                                                                                                                                  DOI: 10.1016/j.leaqua.2017.03.001Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                  The authors meta-analyze the relationship between CEO succession and firm outcomes using fifty-seven studies and finds a negative relationship in the short term and a moderated relationship in the long term.

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                                                                                                                                                                                                                                                                  • Schepker, Donald J., Anthony J. Nyberg, Michael D. Ulrich, and Patrick M. Wright. “Planning for Future Leadership: Procedural Rationality, Formalized Succession Processes, and CEO Influence in CEO Succession Planning.” Academy of Management Journal 61.2 (2018): 523–552.

                                                                                                                                                                                                                                                                    DOI: 10.5465/amj.2016.0071Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                    Details how and why boards conduct succession planning processes and tests hypotheses using unique, longitudinal qualitative and quantitative data.

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                                                                                                                                                                                                                                                                    Boomerang Employees

                                                                                                                                                                                                                                                                    The role of boomerang employees—employees who quit, but are later rehired, as explained in Shipp, et al. 2014—is increasingly important for the development of the HCR pipeline. Such employees can be valuable for the HCR because upon leaving they can create new opportunities, as seen in Campbell, et al. 2012, and, upon returning, they bring new skills, as seen in Shipp, et al. 2014. However, they might be influenced by certain factors and events, as Swider, et al. 2017 shows.

                                                                                                                                                                                                                                                                    • Campbell, Benjamin A., Martin Ganco, April M. Franco, and Rajshree Agarwal. “Who Leaves, Where to, and Why Worry? Employee Mobility, Entrepreneurship and Effects on Source Firm Performance.” Strategic Management Journal 33.1 (2012): 65–87.

                                                                                                                                                                                                                                                                      DOI: 10.1002/smj.943Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                      Finds that employees who earn more are less likely to leave a firm than others. Those that are higher paid are more likely to start their own firm, if they do leave, and there is a greater adverse impact on the prior firm when someone starts a new firm than when they leave for an established firm.

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                                                                                                                                                                                                                                                                      • Shipp, Abbie J., Stacie Furst-Holloway, T. Brad Harris, and Benson Rosen. “Gone Today but Here Tomorrow: Extending the Unfolding Model of Turnover to Consider Boomerang Employees.” Personnel Psychology 67.2 (2014): 421–462.

                                                                                                                                                                                                                                                                        DOI: 10.1111/peps.12039Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                        Examines the likelihood that employees will return to organizations where they previously worked.

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                                                                                                                                                                                                                                                                        • Swider, Brian W., Thomas B. Harris, Joseph T. Liu, and Richard G. Gardner. “Employees on the Rebound: Extending the Careers Literature to Include Boomerang Employment.” Journal of Applied Psychology 102.6 (2017): 890.

                                                                                                                                                                                                                                                                          DOI: 10.1037/apl0000200Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                          Examines the set of factors that influences boomerang employee return performance and finds, among a sample of boomerang professional basketball players and their employers, that intra- and extraorganizational knowledge construction and disruptions, as well as transition events, are significant influencers.

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                                                                                                                                                                                                                                                                          Future Directions for Human Capital Resource Pipeline Research

                                                                                                                                                                                                                                                                          The HCR construct has steadily grown in importance through the integration of strategic human resources and other strategies (particularly the areas of strategy focusing on micro-foundations). For a consideration of “full” HCR (or as it is often called, strategic human capital), see Brymer, et al. 2015. Another perspective on where the field of HCR is in the early 21st century and, hence, a glimpse into how to increase the value of and strengthen the HCR pipeline can be found in two special journal issues on the topic and their respective introductions, Nyberg and Wright 2015 and Wright, et al. 2014. Nyberg, et al. 2018 paves the way in advancing the field by providing an update on overstudied topics and opportunity areas in the field.

                                                                                                                                                                                                                                                                          • Brymer, Rhett, Janice Molloy, and Clint Chadwick. “Strategic Human Capital.” In Oxford Bibliographies in Management. New York: Oxford University Press, 2015.

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                                                                                                                                                                                                                                                                            Reviews the literature on the emergence of strategic human capital (“full” HCR), including seminal pieces from human resource management (HRM) organizational behavior (OB), and strategic management scholarship. Available online by subscription.

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                                                                                                                                                                                                                                                                            • Nyberg, Anthony, Greg Reilly, Spenser Essman, and Jenna Rodrigues. “Human Capital Resources: A Call to Retire Settled Debates and to Start a Few New Debates.” International Journal of Human Resource Management 29.1 (2018): 68–86.

                                                                                                                                                                                                                                                                              DOI: 10.1080/09585192.2017.1381138Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                              A commentary on the current state of the human capital resource field, pointing scholars toward overstudied and understudied areas.

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                                                                                                                                                                                                                                                                              • Nyberg, Anthony J., and Patrick M. Wright. “50 Years of Human Capital Research: Assessing What We Know, Exploring Where We Go.” In Special Issue: Symposium. Academy of Management Perspectives 29.3 (2015): 287–295.

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                                                                                                                                                                                                                                                                                An introductory commentary on the challenges of engaging in discussions across research disciplines, a necessary requirement for advancing research in the HCR space. It also provides suggestions for how to integrate the diverse perspectives relevant to the HCR that span areas of psychology, labor economics, organizational behavior, strategic human resources, strategy, sociology, and economics, among other factors.

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                                                                                                                                                                                                                                                                                • Wright, Patrick M., Russell Coff, and Thomas P. Moliterno. “Strategic Human Capital: Crossing the Great Divide.” In Special Issue: Strategic Human Capital. Edited by Patrick M. Wright, Russell Coff, and Thomas P. Moliterno. Journal of Management 40.2 (2014): 353–370.

                                                                                                                                                                                                                                                                                  DOI: 10.1177/0149206313518437Save Citation »Export Citation » Share Citation »

                                                                                                                                                                                                                                                                                  Reviews the articles included in the special issue and explains the challenges experienced due to the different disciplinary backgrounds that are being drawn together through the topic of strategic human capital.

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