Contemporary Economics supports GIKA

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Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 11 Issue 1 (2017)

In Search of Key HR Practices for Improvement of Productivity of Employees in the KIBS Sector original article

pp. 5-16 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.225

Agnieszka Wojtczuk-Turek

Abstract

The objective of this article is to present research devoted to the relationships between HR practices and productivity (understood as behavior and results) of employees in the KIBS sector (knowledge-intensive business services sector). The operations of companies in this sector are based on the application of expert knowledge to create services satisfying the needs of personalized clients. Because companies from the KIBS sector are immensely important to the development of the economy (mainly in the context of their high potential for innovation), identification of the key factors that allow them to give fine performance is a significant theoretical and practical issue. A major role in this respect is played by the human resources management system – chiefly because KIBS companies gain competitive advantage though employees’ knowledge. As part of research with a quantitative approach (serving to test hypotheses) and a qualitative approach (allowing exploration), the human resources management system has been described as the key – from the point of view of desired behaviors and results – HR practice identified. Based on the study that has been conducted, which examined employees who had expert knowledge and created personalized services for clients, it has been concluded that the HR practices that most fully account for the productivity of employees are work design and job characteristics and empowerment, participation, and autonomy. Within the framework of qualitative research carried out in participation with HR managers of knowledge-intensive service firms, the character of individual high performance HR practices and the prominent role of managers and HR experts in supporting performance on individual and organizational levels has been indicated.

Keywords: KIBS sector, knowledge-based work, HR practices, behaviors, results.

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The relationship between employees’ competences and the consequences and manner of exercising emotional labour (EL) original article

pp. 17-30 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.226

Agnieszka Springer, Karolina Oleksa

Abstract

Many job posts require one to display emotions specified by organisational standards. Such work is referred to as emotional labour (EL) and consists in producing particular emotional reactions in contacts with a customer as well as suppressing the actual emotional reactions that could be seen negatively by the other party. An employee may cope with such work by choosing one of two strategies: surface acting or deep acting. Emotional labour has various consequences, and professional burnout is among the negative ones. The objective of the article is to review the literature concerned with the exercise and the consequences of EL and analyse the relationship between surface and deep acting and the level of professional burnout among selected professional groups (N=297). Furthermore, the authors examine the correlation between an employee’s competences and their preferred style of EL and assess the moderating role of competences in negative consequences of EL. Analyses confirm that the persons characterised by surface role-playing display a higher level of professional burnout; however, no correlation is found between deep role-playing and lower professional burnout. Analysis of the coefficients of correlation demonstrates no significant correlation between an employee’s competences and deep acting, whereas a statistically significant correlation is discovered between competences and the surface strategy. The higher the competences, the less likely the employee will exercise surface acting. Verification of the last hypothesis reveals that people with a higher level of competences who follow the surface strategy in terms of faking emotions are characterised by a lower level of professional burnout than employees with lower competences.

Keywords: emotional labour, surface role-playing, deep role-playing, professional burnout, professional competences

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Organizational Conditioning of Job Satisfaction. A Model of Job Satisfaction original article

pp. 31-44 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.227

Marcin Wnuk

Abstract

Job satisfaction is an important predictor of job switching. Knowledge of the predictors of job satisfaction offers business owners and management staff the ability to shape the work environment so that the most valuable, loyal, and experienced employees can be retained in the company. The objective of this project is to test a model of job satisfaction based on person-organization fit (P-O fit), perceived organizational support (POS), and perceived supervisor support (PSS). The study examines whether PSS directly relates to employee job satisfaction or whether P-O fit or POS mediate in this relationship. Additionally, it is examined whether POS is a moderating variable between P-O fit and job satisfaction. The study was conducted using a sample 484 employees of a company in the IT sector. It turns out that POS, and P-O fit to the organization are variables that act as partial mediator between PSS and job satisfaction. The relationship between PSS and POS is both direct and indirect. P-O fit is a partial mediator of this relationship, while POS is both a partial mediator and a moderator between P-O fit and job satisfaction. Among employees who POS to be high, consistency between an employee’s and the organization’s values is indirectly connected with job satisfaction, whereas among employees who POS to be low, this relationship is both direct and indirect. In their operations, employers should focus on shaping managers’ attitudes towards their subordinates in an appropriate direction, as managers significantly influence employees’ perceived organizational support and job satisfaction.

Keywords: job satisfaction, person-organization fit, perceived organizational support, perceived supervisor support

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The Impact of Multinational Companies from Romania on Increasing the Level of Corporate Social Responsibility Awareness original article

pp. 45-66 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.228

Codruţa Dura, Imola Drigă

Abstract

The Romanian business scene has recently borrowed the concept of corporate social responsibility (CSR), and this evolution was due to the presence of multinational companies (MNCs) that implemented new practices and activities in this area. Our paper aims to provide a presentation of social responsibility in Romania, based on public reports of multinational companies, studies and reports of several institutions involved, foreign and Romanian literature or websites and other media sources. After a short review of the literature on the CSR issue, we have described the main coordinates of CSR implementation within the Romanian business environment: authorities and institutions involved in the process, types of initiatives/actions undertaken by MNCs from Romania, and high priority domains of society that benefit from the support of MNCs. A general image of the stage of CSR development in Romania was captured by a strengths, weaknesses, opportunities and threats (SWOT) analysis on the subject. In the final section of our paper, we analysed the case of Petrom OMV Company, the top CSR player in Romania in recent years, in an attempt to prove that we can find remarkable examples of suitable practices and that these experiences must be disseminated within the overall Eastern European business environment.

Keywords: Corporate Social Responsibility (CSR), Multinational Companies (MNCs), business environment, transparency, strategic planning

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Revisiting the Phillips Curve: Visualization from a Multidimensional Graphical Perspective original article

pp. 67-90 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.229

Mario Arturo Ruiz Estrada, Su-Fei Yap, Noor Azina Binti Ismail

Abstract

This article explores the possibility of visualizing the Phillips curve from a multidimensional perspective. We use a new multidimensional coordinate space, the mega-dynamic disks multivariable random coordinate space in vertical position, which visualizes the graphical behavior of the Phillips curve from a multidimensional point of view. We take A. W. Phillips’s original paper published in Economica in 1958, “The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957,” as our main bibliographical reference. The same paper also serves as our main database for transforming the original Phillips curve into a multidimensional graphical form. In essence, our paper extends the significance of the Phillips curve beyond mere theory to serve as a practical instrument for solving economic problems.

Keywords: Inflation, Unemployment, Phillips curve, Multidimensional coordinate spaces, Econographicology

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Improving Value-at-Risk Estimation from the Normal EGARCH Model original article

pp. 91-106 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.230

Mahsa Gorji, Rasoul Sajjad

Abstract

Returns in financial assets display consistent excess kurtosis and skewness, implying the presence of large fluctuations not forecasted by Gaussian models. This paper applies a resampling method based on the bootstrap and a bias-correction step to improve Value-at-Risk (VaR) forecasting ability of the n-EGARCH (normal EGARCH) model and correct the VaR for both long and short positions. Our aim is to utilize the advantages of this model, but still use the bootstrap resampling method to accurate for the tendency of the model tomiscalculate the VaR. Empirical results indicate that the bias-correction method can improve the n-GARCH and n-EGARCH VaR forecasts so much that the acquired VaR predictions are different from the proposed probability. Additionally, allowing asymmetry in the conditional variance using the EGARCH model with normal distribution instead of GARCH improves the performance of the bias-correction method in forecasting the VaR for almost all considered indices. Moreover, the bias-corrected n-EGARCH model performs better than the simple t-EGARCH model. Thus, it seems that this model can take account of both the asymmetry in the conditional variance and leptokurtosis in returns distribution. However, we find that the superiority of the bias-corrected n-EGARCH model over the t-EGARCH model is not completely confirmed for short positions based on the censored likelihood scoring rule.

Keywords: Bootstrap; EGARCH; GARCH; Value-at-Risk

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Combining Equity Country Selection Strategies original article

pp. 107-126 | First published in 31 March 2017 | DOI:10.5709/ce.1897-9254.231

Adam Zaremba

Abstract

The recent increase in passive investment products has provided investors with easy access to international markets. The basic motivation of this paper is to offer new tools to investors who want to allocate assets across countries. This study investigates the performance of equity country selection strategies based on a combination of theoretically and empirically motivated variables. Thus, we create portfolios and assess their performance using asset pricing models. The empirical examination is based on data from 78 countries from 1999 to 2015. The strategies that are based on the earnings-to-price (EP) ratio, the turnover ratio, and skewness prove to be useful tools for international investors. Furthermore, portfolios from sorts on the blended rankings of skewness combined with the EP ratio or the turnover ratio are also characterized by an attractive risk-return ratio. However, joint strategies do not outperform strategies that are based on single metrics. Consequently, we argue that investors would be better off building a diversified portfolio rather than combining their options into one strategy because of the low correlation among returns on single-variable strategies.

Keywords: country selection strategies, asset pricing, cross section of stock returns, value investing, momentum, skewness preference, liquidity premium, turnover ratio, international investments.

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