The Set Point Theory of Well-Being Has Serious Flaws: On the Eve of a Scientific Revolution?

Set-point theory is the main research paradigm in the field of subjective well-being (SWB). It has been extended and refined for 30 years to take in new results. The central plank of the theory is that adult set-points do not change, except temporarily in the face of major life events. There was always some ‘discordant data’, including evidence that some events are so tragic (e.g. the death of one’s child) that people never regain their set-point. It was possible to dismiss these events as ‘exceptions’ and maintain the theory. However, several new findings are emerging, which cannot be dismissed as ‘exceptions’ and which appear to require substantial revisions or replacement of set-point theory. Many of these findings are based on the German Socio-Economic Panel Survey (SOEP 1984-), which provides the longest available time series on life satisfaction. Despite its centrality, the concept of the set-point is often not precisely defined. In this paper three alternative working definitions are offered. Depending on which definition is used, it is found that over 20 years 14–30% of German panel members recorded large and apparently permanent changes in their set-points. Changes of this magnitude are not compatible with set-point theory as currently understood. The challenge for SWB researchers now is to develop a theory which can account for change as well as stability.     

Personnel selection criteria in IT ventures: A policy-capturing analysis

Growing ventures need to hire new employees and thus enhance their human capital stock. Selecting the right employees is crucial for the firms’ success. This paper looks at the criteria used in the selection process, especially at applicant fit, competencies, and social capital. Using a policy-capturing approach on a sample of managers in the German informationtechnology industry, the paper provides empirical evidence of the relationship between firm age and person-organization fit in the selection process. Furthermore, it demonstrates the interaction between two sets of selection criteria: applicant competencies and applicant fit with the formal job-requirements.     

Denn sie wissen was sie tun!

Information and communication technologies (IT) permeate both the business and the private world. They cause profound changes for companies in terms of structure, leadership, culture, education and the position of individuals within the context of the company. Established structures, decision making habits and methods of communication are being called into question. This means that communication is neither explicitly controllable nor in some cases even specified, but it also should not be viewed as arbitrary. Structures which are treated as contingent require meta-management, reflection and determination. Leaders are forced to act within a constellation of tensions between the reduction and the expansion of complexity as basic functions of structuring. Ideally this type of steering takes place consciously and with a view toward the future, taking into account the increasing complexity and dynamics of the environment and the corporate culture. Empirical studies of our four intervention research projects show that the situation for many companies is sobering. Companies cannot always entirely interpret the rapid development of communication technologies and the consequences it brings with it, nor can they completely make use of its potential advantages. Companies and individuals are forced to think actively within the networked economy. The demand for further education shifts between the company (expertise, employee loyalty) on the one hand and the responsibility of the individual for his or her own development on the other. Agreements are the key to bringing harmony and new solutions to the conflicts among the differing interests of individuals, subsystems and the company as a whole. Considering the complex requirements for companies and management caused by IT, this article shows that reflective observation of intervention research, guided by theory and with a focus on targeted change of management practice, is a process which provides new opportunities for action in both theory and practice. In this process, focusing (systemization) and reflection (enhancement of perspectives) are fundamental keys for dealing with complexity.     

Coaching für Habilitand/innen am Beispiel der LMU München

This practice report describes coachings for junior faculty members at LMU Munich. First, we describe the challenges junior faculty members are faced with at German universities and the HR development undertaken at LMU to help junior faculty cope with these challenges. In particular, we elaborate on coachings, i. e. we describe the process and topics most frequently mentioned therein. These include the sandwich position junior faculty members find themselves in, the oftentimes informal nature of their leadership position, and the requirement to react to conflicts. Finally, we present the various ways of responding to these challenges developed within the coaching process.     

Die Auswirkungen von Neid auf individuelle Leistungen: Ergebnisse einer Panelanalyse

Relative income differences are likely to lead to envy within a reference group. Envy in turn influences social behavior and individual performance. While positional concerns are apparent in daily life, empirical evidence is rare in the economic literature. This paper investigates the impact of the relative income position on individuals’ performance or productivity. As ?performance“ is difficult to measure we turn to soccer players whose performance has been well documented. The broad sample covers eight seasons of the German premier soccer league (Bundesliga) between 1995 and 2004, and includes 1040 players, a salary proxy and several performance variables. The results show that player performance is strongly affected by relative income position. A disadvantage in the relative income position reduces productivity. The larger the income differences within a team, the stronger are the effects of positional concern. Team composition also significantly affects behaviour.     

F?rdern aktienkursbasierte Vergütungsinstrumente langfristig orientierte Unternehmensentscheidungen? Lehren aus der Kreditkrise

The question whether stock-based management incentives encourage long-term oriented management decisions is the topic of a controversial public debate. Also, the existing academic literature provides no clear picture, mainly due to endogeneity problems. In this paper, we reexamine the issue in the context of the recent credit crises, which allows us to solve the endogeneity problem. In the empirical analysis we find that firms, which have awarded stock-based incentives to their executives prior or during the financial crises, face substantially lower cuts in investment spending. These firms also show higher levels of R&D investments during the financial crises. Overall, our results suggest that stock based long-term incentives promote long-term oriented management decisions.     

The reality of net capital gains and annual profit on NZ primary producing businesses: data from a recent survey of all farm types

ABSTRACT

Annual net cash returns and net capital gains provide farmers with their actual and potential monetary rewards, respectively. This article reports on a national farm survey showing both actual and potential returns, on average, are not as high as might be imagined. This is supported by the findings of earlier studies and has implications for rural societies and their associated economies. Data on income, expenses and profit is presented as is data on farm value changes over the life of each farm. The information is adjusted for inflation to provide ‘real’ data. The profit and net capital gain figures are divided into groupings based on a range of criteria such as total farm capital, and labour compliment as a reflection of farm size. Statistically significant differences occur for some groupings such as farm type and farm size.